Market Newsdesk

November 13, 2020 5:04 am

Tarena International, Inc. Announces Third Quarter 2020 Results

PR Newswire

BEIJING, Nov. 13, 2020 /PRNewswire/ — Tarena International, Inc. (NASDAQ: TEDU) (“Tarena” or the “Company”), a leading provider of professional education and K-12 education services in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020
Highlights

Net revenues decreased by 5.8% year-over-year to RMB620.8 million (US$88.8 million), from RMB659.2 million in the same period of 2019.
Net revenue from adult education business, which represented 53.4% of the total net revenues, decreased by 38.8% year-over-year to RMB331.2 million (US$47.4 million), from RMB541.5 million in the same period of 2019.
Net revenue from K-12 education business, which represented 46.6% of the total net revenues, increased by 146.0% year-over-year to RMB289.6 million (US$41.4 million), from RMB117.7 million in the same period of 2019.
Gross profit decreased by 6.4% year-over-year to RMB350.0 million (US$50.1 million), from RMB374.1 million in the same period of 2019.
Gross profit margin decreased by 0.4% year-over-year to 56.4%, from 56.8% in the same period of 2019.
Operating loss decreased by 52.6% to a loss of RMB56.6 million (US$8.1 million), from a loss of RMB119.4 million in the same period of 2019.
Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB49.2 million (US$7.0 million), compared to non-GAAP operating loss of RMB95.1 million in the same period of 2019.
Net loss was RMB63.9 million (US$9.1 million), compared to net loss of RMB110.0 million in the same period of 2019.
Non-GAAP net loss, which excluded share-based compensation expenses, was RMB56.5 million (US$8.1 million), compared to non-GAAP net loss of RMB85.7 million in the same period of 2019.
Basic and diluted loss per American Depositary Share (“ADS”) was RMB1.16(US$0.17).
Cash, cash equivalents and time deposits, including current and non-current, and restricted cash totaled RMB374.7 million (US$55.0 million) as of September 30, 2020, compared to RMB621.2 million as of December 31, 2019.
Net cash outflow from operating activities in the third quarter of 2020 was RMB11.7 million (US$1.7 million). Capital expenditures in the third quarter of 2020 were RMB13.0 million (US$1.9 million).
Deferred revenue totaled RMB1,963.4 million (US$288.3 million) as of September 30, 2020, compared to RMB1,586.0 million as of December 31, 2019, representing an increase of 23.8%.
Total student enrollments in adult education business, defined as the total number of courses enrolled in by students during that period, including multiple courses enrolled in by the same student, in the third quarter of 2020 decreased by 29.4% year-over-year to 38,400.
Total number of learning centers in adult education decreased to 106 as of September 30, 2020, from 134 as of September 30, 2019.
Total student enrollments in K-12 education business, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the third quarter of 2020 reached 122,800, increasing by 62.0%, compared to the student enrollments of 75,800 in the same period of 2019.
Total number of learning centers in K-12 education increased to 236 as of September 30, 2020, from 209 as of September 30, 2019.

Nine Months Ended September 30, 2020
Highlights

Net revenues decreased by 19.1% year-over-year to RMB1,247.6 million (US$178.5 million), from RMB1,541.8 million in the same period of 2019.
Net revenue from adult education business, which represented 62.8% of the total net revenues, decreased by 34.6% year-over-year to RMB783.7 million (US$112.1 million), from RMB1,198.6 million in the same period of 2019
Net revenue from K-12 education business, which represented 37.2% of the total net revenues increased by 35.2% year-over-year to RMB463.9 million (US$66.4 million), from RMB343.2 million in the same period of 2019.
Gross profit decreased by 30.3% year-over-year to RMB472.3 million (US$67.6 million), from RMB678.1 million in the same period of 2019.
Gross profit margin decreased by 6.1% year-over-year to 37.9%, from 44.0% in the same period of 2019.
Operating loss decreased by 5.9% to a loss of RMB721.3 million (US$103.2 million), from a loss of RMB766.3 million in the same period of 2019.
Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB692.6 million (US$99.1 million), compared to non-GAAP operating loss of RMB717.2 million in the same period of 2019.
Net loss was RMB676.5 million (US$96.8 million), compared to net loss of RMB735.1 million in the same period of 2019.
Non-GAAP net loss, which excluded share-based compensation expenses, was RMB647.8 million (US$92.7 million), compared to non-GAAP net loss of RMB686.1 million in the same period of 2019.
Basic and diluted loss per American Depositary Share (“ADS”) was RMB12.42 (US$1.78).
Total student enrollments in adult education business, defined as the total number of courses enrolled in by students during that period, including multiple courses enrolled in by the same student, in the first nine months of 2020 decreased by 35.9% year-over-year to 60,800.
Total student enrollments in K-12 education programs, defined as the total number of students who attended at least one paid lesson during that period or have deposit balances in their accounts at the end of that period, in the first nine months of 2020 reached 123,200, increasing by 50.4%, compared to the student enrollments of 81,900 in the same period of 2019.

Key Financial Results

For the Three Months Ended

September 30

Variance

% of
change

For the Nine Months Ended

September 30

Variance

% of
change

2019

2020

2019

2020

RMB

(in thousands, except for percentages)

Net revenues

659,185

620,802

(38,383)

-5.8

1,541,798

1,247,628

(294,170)

-19.1

Cost of revenues

^(a)(b)

(285,060)

(270,842)

14,218

-5.0

(863,686)

(775,369)

88,317

-10.2

Gross profit

374,125

349,960

(24,165)

-6.5

678,112

472,259

(205,853)

-30.4

Gross margin

56.8%

56.4%

-0.4%

44.0%

37.9%

-6.1%

Selling and marketing
expenses^(a)(b)

(272,291)

(239,211)

33,080

-12.1

(814,555)

(682,995)

131,560

-16.2

General and administrative
expenses^(a)(b)

(195,588)

(143,072)

52,516

-26.9

(525,256)

(435,296)

89,960

-17.1

Research and development
expenses^(a)(b)

(25,638)

(24,256)

1,382

-5.4

(104,590)

(75,219)

29,371

-28.1

Total operating expenses

(493,517)

(406,539)

86,978

-17.6

(1,444,401)

(1,193,510)

250,891

-17.4

Operating loss

(119,392)

(56,579)

62,813

-52.6

(766,289)

(721,251)

45,038

-5.9

Notes:

(a) Includes share-based compensation expenses.

(b) There were reclassification adjustments of the financials during the nine months ended September 30, 2019 between the accounts of cost of revenues, selling and marketing expenses, general and administrative expenses and research and development expenses to conform with the current period presentation. Due to the reclassification, the cost of revenues increased by RMB8.8 million, general and administrative expenses increased by RMB35.0 million, while selling and marketing expenses decreased by RMB33.8 million and research and development expenses decreased by RMB10.0 million. The above reclassification adjustments did not have any impact on the net loss for the nine months ended September 30, 2019.

“As the COVID-19 pandemic has been properly controlled and contained in China, our adult and K-12 learning centers have been re-opened gradually and resumed in-class lessons since June 2020. Despite our net revenues dropping by 5.8% to RMB620.8 million in the third quarter of this year, from RMB659.2 million in the same period of last year, our overall operating loss decreased from a loss of RMB119.4 million in the third quarter of 2019 to a loss of RMB56.6 million in the same period of 2020. These were attributable to the stringent costs and expenses control measures which we have been implementing since the beginning of this year. The net loss in the third quarter of 2020 was RMB63.9 million, as compared to the net loss of RMB110.0 million in the same period of 2019. In the third quarter of this year, we were grateful and excited to see an encouraging growth in our K-12 education business. Compared to the figures in the third quarter of last year, our K-12 education business achieved 146.0% increase in net revenues and 62.0% increase in student enrollments in the third quarter of 2020. The gross margin of K-12 education was 39.3% in the third quarter of this year, compared to the gross margin of -4.1% in the same period of last year,” remarked Mr. Yongji Sun, the CEO of Tarena.

“Looking ahead, our strategies are two-folded. Firstly, we will continue to uplift efficiency of our operation to improve our margins. Secondly, in order to strengthen our market leading position and expand our market share, we will focus on further streamlining our product lines, optimizing online and offline programs and curriculums, and further improving our tutoring qualities and user experience,” concluded Mr. Sun.

“Our cash and cash equivalents and time deposits, including current and non-current, and restricted cash, decreased by 39.7%, from RMB621.2 million as of December 31, 2019 to RMB374.7 million (US$55.0 million) as of September 30, 2020. The decrease in cash and cash equivalents and time deposits, including current and non-current, and restricted cash was mainly due to net cash used in operating activities which mainly are composed of net loss of RMB676.5 million incurred in the first nine months of 2020, and was partially offset by the increase in total deferred revenue of RMB377.4 million. Net cash outflow from operating activities in the third quarter of 2020 was RMB11.7 million (US$1.7 million), whilst net cash outflow from operating activities in the first half of 2020 was RMB183.6 million,” said Wing Kee Lau, the CFO of Tarena.

Third Quarter 2020 Results

Net Revenues

Total net revenues decreased by 5.8% to RMB620.8 million (US$88.8 million) in the third quarter of 2020, from RMB659.2 million in the same period of 2019.

Net revenue from adult education business decreased by 38.8% to RMB331.2 million (US$47.4 million) in the third quarter of 2020, from RMB541.5 million in same period of 2019. The decrease was primarily due to decline in student enrollments of adult education by 29.4%, from 54,400 in the third quarter of 2019 to 38,400 in the same period of 2020.

Net revenue from K-12 education business increased by 146.0% to RMB289.6 million (US$41.4 million) in the third quarter of 2020, from RMB117.7 million in same period of 2019. The increase was primarily due to increase in student enrollments of K-12 education by 62.0%, from 75,800 in the third quarter of 2019 to 122,800 in the same period of 2020.

Cost of Revenues

Cost of revenues decreased by 5.0% to RMB270.8 million (US$38.7 million) in the third quarter of 2020, from RMB285.1 million in the same period of 2019. The decrease was primarily due to decrease in number of adult education learning centers which resulted in reduction of personnel-related costs and rental expenses, and partially offset by the increased cost from addition of K-12 education new learning centers.

Gross Profit and Gross Margin

Gross profit decreased by 6.4% to RMB350.0 million (US$50.1 million) in the third quarter of 2020, from RMB374.1 million in the same period of 2019. Gross margin, which is equal to gross profit divided by net revenues, was 56.4% in the third quarter of 2020, compared to 56.8% in the same period of 2019. The decline in gross margin was primarily due to the decreased portion of total revenues contributed by our adult education business, which has a higher gross margin than our K-12 education business.

Operating Expenses

Total operating expenses decreased by 17.6% to RMB406.5 million (US$58.2 million) in the third quarter of 2020, from RMB493.5 million in the same period of 2019. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 15.0% to RMB399.3 million (US$57.1 million) in the third quarter of 2020, from RMB469.5 million in the same period of 2019. Total share-based compensation expenses allocated to the related operating expenses decreased by 69.6% to RMB7.3 million (US$1.0 million) in the third quarter of 2020, from RMB24.0 million in the same period of 2019.

Selling and marketing expenses decreased by 12.2% to RMB239.2 million (US$34.2 million) in the third quarter of 2020, from RMB272.3 million in the same period of 2019. The decline was mainly due to decrease in marketing activities and promotional spending, and decrease in personnel-related expenses resulting from lower headcounts in the third quarter of this year.

General and administrative expenses decreased by 26.8% to RMB143.1 million (US$20.5 million) in the third quarter of 2020, from RMB195.6 million in the same period of 2019. The decline was primarily due to decrease in personnel-related expenses resulting from lower headcounts in the third quarter of this year, and there were one-time investigation related professional expenses incurred in the third quarter of last year.

Research and development expenses decreased by 5.1% to RMB24.3 million (US$3.5 million) in the third quarter of 2020, from RMB25.6 million in the same period of 2019. The decline was mainly due to decrease in personnel-related expenses resulting from lower headcounts.

Operating Loss

Operating loss was RMB56.6 million (US$8.1 million) in the third quarter of 2020, compared to operating loss of RMB119.4 million in the same period of 2019. Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB49.2 million (US$7.0 million) in the third quarter of 2020, compared to non-GAAP operating loss of RMB95.1 million in the same period of 2019.

Interest Income

Interest income was RMB3.3 million (US$0.5 million) in the third quarter of 2020, compared to interest income of RMB5.7 million in the same period of 2019. Interest income in both periods consisted of interest earned on our cash, cash equivalents and time deposits in commercial banks and interest income recognized in relation to our installment payment plan for students. The decrease in interest income in the third quarter of 2020 was primarily due to the decrease in the interest income on time deposits and increase in the interest expense due to increase in short-term bank loans.

Other Income

Other income was RMB2.9 million (US$0.4 million) in the third quarter of 2020, compared to RMB0.5 million in other income in the same period of 2019. The income was mostly from government grant offered to learning centers.

Foreign Exchange Gain / (loss)

Foreign exchange loss was RMB3.4 million (US$0.5 million) in the third quarter of 2020, compared to RMB2.0 million foreign exchange gain in the same period of 2019.

Income Tax Benefit / (expense)

The Company recorded an income tax expense of RMB10.1 million (US$1.4 million) in the third quarter of 2020, compared to RMB1.1 million income tax benefit in the same period of 2019.

Net Loss

As a result of the foregoing, net loss was RMB63.9 million (US$9.1 million) in the third quarter of 2020, compared to net loss of RMB110.0 million in the same period of 2019. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB56.5 million (US$8.1 million) in the third quarter of 2020, compared to non-GAAP net loss of RMB85.7 million in the same period of 2019.

Basic and Diluted Loss per ADS

Loss per ADS was RMB1.16(US$0.17) in the third quarter of 2020. Non-GAAP loss per ADS, which excluded share-based compensation expenses, was RMB1.02(US$0.15) in the third quarter of 2020.

Cash Flow

Net cash outflow from operating activities in the third quarter of 2020 was RMB11.7 million (US$1.7 million). Capital expenditures in the third quarter of 2020 were RMB13.0 million (US$1.9 million).

Nine Months Ended September 30, 2020 Results

Net Revenues

Net revenues decreased by 19.1% to RMB1,247.6 million (US$178.5 million) in the first nine months of 2020, from RMB1,541.8 million in the same period of 2019. The decrease was primarily due to the reduction of class consumption for both adult and K-12 education businesses during the COVID-19 pandemic in the first half of 2020.

Cost of Revenues

Cost of revenues decreased by 10.2% to RMB775.4 million (US$110.9 million) in the first nine months of 2020, from RMB863.7 million in the same period of 2019. The decrease was mainly due to the reduction of cooperation with tutoring service providers as most students transferred to online studying during the COVID-19 pandemic. Furthermore, during the COVID-19 pandemic, the utility and office fees declined as our employees worked from home, and the social security fees were exempted due to the preferential policies enacted by the government. The decrease was also partly attributable to the decrease in number of adult education learning centers, which resulted in decrease in personnel-related costs and rental expenses.

Gross Profit and Gross Margin

Gross profit decreased by 30.3% to RMB472.3 million (US$67.6 million) in the first nine months of 2020, from RMB678.1 million in the same period of 2019. Gross margin, which is equal to gross profit divided by net revenues, was 37.9% in the first nine months of 2020, compared with 44.0% in the same period of 2019. The decline in gross margin was primarily due to the decreased portion of net revenues contributed by adult education business, which has higher gross margin than K-12 education business.

Operating Expenses

Total operating expenses decreased by 17.4% to RMB1,193.5 million (US$170.7 million) in the first nine months of 2020, from RMB1,444.4 million in the same period of 2019. Total non-GAAP operating expenses, which excluded share-based compensation expenses, decreased by 16.5% to RMB1,165.2 million (US$166.7 million) in the first nine months of 2020, from RMB1,396.1 million in the same period of 2019. Total share-based compensation expenses allocated to the related operating expenses decreased by 41.4% to RMB28.3 million (US$4.1 million) in the first nine months of 2020, from RMB48.3 million in the same period of 2019.

Selling and marketing expenses decreased by 16.2% to RMB683.0 million (US$97.7 million) in the first nine months of 2020, from RMB814.6 million in the same period of 2019. The decline was mainly due to decrease in marketing activities and promotional spending in the first nine months of this year. In addition, personnel-related expenses decreased resulting from lower headcounts, and social security fees were exempted due to the preferential policies enacted by the government during COVID-19 pandemic period in the first nine months of this year.

General and administrative expenses decreased by 17.1% to RMB435.3 million (US$62.3 million) in the first nine months of 2020, from RMB525.3 million in the same period of 2019. The decline was mainly due to decrease in personnel-related expenses resulting from lower headcounts, and social security fees were exempted according to the preferential policies enacted by the government during COVID-19 pandemic period in the first nine months of this year. Furthermore, there were one-time investigation related professional expenses incurred in the same period of last year.

Research and development expenses decreased by 28.1% to RMB75.2 million (US$10.8 million) in the first nine months of 2020, from RMB104.6 million in the same period of 2019. The decline was mainly due to decrease in personnel- related expenses resulting from lower headcounts.

Operating Loss

Operating loss was RMB721.3 million (US$103.2 million) in the first nine months of 2020, compared to operating loss of RMB766.3 million in the same period of 2019. Non-GAAP operating loss, which excluded share-based compensation expenses, was RMB692.6 million (US$99.1 million) in the first nine months of 2020, compared to non-GAAP operating loss of RMB717.2 million in the same period of 2019.

Interest Income

Interest income was RMB1.3 million (US$0.2 million) in the first nine months of 2020, compared to interest income of RMB15.2 million in the same period in 2019. Interest income in both periods consisted of interest earned on our cash, cash equivalents and time deposits in commercial banks and interest income recognized in relation to our installment payment plan for students. The decrease in interest income in the first nine months of 2020 was primarily due to the decrease in the interest income on time deposits and tuition revenues from the installment payment plan for students. Furthermore, interest expense increased due to the increase in short-term bank loans.

Other Income / (expense)

Other income was RMB3.2 million (US$0.5 million) in the first nine months of 2020, compared to RMB2,000 in other expense in the same period of 2019. The income was mostly from government grants offered to learning centers.

Foreign Exchange Gain / (loss)

Foreign exchange loss was RMB1.7 million (US$0.2 million) in the first nine months of 2020, compared to RMB3.1 million foreign exchange gain in the same period of 2019.

Income Tax Benefit

The Company recorded an income tax benefit of RMB42.1 million (US$6.0 million) in the first nine months of 2020, compared to RMB12.9 million in income tax benefit in the same period of 2019.

Net Loss

As a result of the foregoing, net loss was RMB676.5 million (US$96.8 million) in the first nine months of 2020, compared to net loss of RMB735.1 million in the same period of 2019. Non-GAAP net loss, which excluded share-based compensation expenses, was RMB647.8 million (US$92.7 million) in the first nine months of 2020, compared to non-GAAP net loss of RMB686.1 million in the same period of 2019.

Basic and Diluted Loss per ADS

Loss per ADS was RMB12.42(US$1.78) in the first nine months of 2020. Non-GAAP loss per ADS, which excluded share-based compensation expenses, was RMB11.89(US$1.70) in the first nine months of 2020.

Cash Flow

Net cash outflow from operating activities in the first nine months of 2020 was RMB195.3 million (US$27.9 million). Capital expenditures in the first nine months of 2020 were RMB56.9 million (US$8.1 million).

Business Outlook

Based on the Company’s current estimates, total net revenues for the fourth quarter of 2020 are expected to be in the range of RMB540 million and RMB570 million, after taking into consideration the seasonal fluctuation factor and likely continued impact of the COVID-19.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions, which are subject to change, particularly as to the potential impact of COVID-19 on the economy in China and elsewhere in the world.

Conference Call

Company management will hold an earnings conference call and live webcast to discuss the Company’s results at 7:00 AM on November 13, 2020, U.S. Eastern Time (8:00 PM on November 13, 2020, Beijing Time).

Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, passcode and unique registrant ID.

Conference call registration link: http://apac.directeventreg.com/registration/event/5295689. It will automatically direct you to the registration page of “Third Quarter 2020 Tarena International Inc Earnings Conference Call” where you may fill in your details for RSVP. If it requires you to enter a participant conference ID, please enter “5295689”.

In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s), direct event passcode and registrant ID) provided in the confirmation email received at the point of registering.

A replay of the conference call may be accessed by phone at the following number until November 21, 2020, 07:59 ET:

United States: +1 855 452 5696
INTERNATIONAL: +61 2 8199 0299
Conference ID: 5295689

Additionally, a live and archived webcast of this call will be available on the Investor Relations section of Tarena’s website at http://ir.tedu.cn.

About Tarena International, Inc.

Tarena is a leading provider of adult professional education and K-12 education services in China. Through its innovative education platform combining live distance instruction, classroom-based tutoring and online learning modules, Tarena offers adult professional education courses in IT and non-IT subjects. Its adult professional education courses provide students with practical skills to prepare them for jobs in industries with significant growth potential and strong hiring demand. Tarena also offers K-12 education programs, including computer coding and robotics programming courses, etc., targeting students aged between three and eighteen.

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 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,” “confident” and similar statements. Tarena may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to fourth parties. Any statements that are not historical facts, including any business outlook and statements about Tarena’s beliefs and expectations, are forward-looking statements. Many factors, risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include, but not limited to the following: Tarena’s goals and strategies; its future business development, financial condition and results of operations; its ability to continue to attract students to enroll in its courses; its ability to continue to recruit, train and retain qualified instructors and teaching assistants; its ability to continually tailor its curriculum to market demand and enhance its courses to adequately and promptly respond to developments in the professional job market; its ability to maintain or enhance its brand recognition, its ability to maintain high job placement rate for its students, and its ability to maintain cooperative relationships with financing service providers for student loans. Further information regarding these and other risks, uncertainties or factors is included in Tarena’s filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release, and Tarena does not undertake any obligation to update such information, except as required under applicable law.

About Non-GAAP Financial Measures

Beginning in the second quarter of 2016, the Company revised its non-GAAP financial measures to exclude gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact, in addition to its historical practice of excluding share-based compensation expenses for non-GAAP results.

To supplement Tarena’s consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), Tarena’s management uses non-GAAP measures of cost of revenues, operating expenses, operating income, net income, and basic and diluted net income per ADS, which are adjusted from results based on GAAP to exclude the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact. These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. In addition, calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Tarena’s management believes that excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact provides meaningful supplemental information regarding our performance and liquidity by excluding certain items identified as non-recurring and infrequent in nature, and non-cash charges. The amount of share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact are not built into the Company’s annual budgets and quarterly forecasts, which generally will be the basis for information Tarena provides to analysts and investors as guidance for future operating performance.

The non-GAAP financial measures are provided to enhance investors’ overall understanding of Tarena’s current financial performance and prospects for the future. A limitation of using non-GAAP cost of revenues, operating expenses, operating income (loss) and net income (loss), excluding the share-based compensation expenses, gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact is that the share-based compensation charge has been and will continue to be a recurring expense in the Company’s business for the foreseeable future, and gain or loss on derivative instruments, goodwill impairment, impairment of intangibles via acquisitions of businesses and the related tax impact may recur in the future. In order to mitigate these limitations the Company has provided specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables include details on the reconciliation between GAAP financial measures that are most directly comparable to the non-GAAP financial measures the Company has presented.

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data and per share data)

	As of
	December 31,	September 30,	September 30,
	2019	2020	2020
	Audited	Unaudited	Unaudited
	RMB	RMB	USD
ASSETS
Current assets:
Cash and cash equivalents	537,701	352,426	51,750
Time deposits	83,081	6,000	881
Restricted cash	–	16,034	2,354
Accounts receivable, net of allowance for doubtful accounts	31,442	14,412	2,116
Amounts due from related parties	16,492	253	37
Prepaid expenses and other current assets	132,539	146,979	21,583
Total current assets	801,255	536,104	78,721
Time deposits-non current	406	217	32
Accounts receivable, net of allowance for doubtful accounts-non current	724	502	74
Property and equipment, net	576,633	487,219	71,544
Intangible assets, net	17,669	14,426	2,118
Goodwill	52,782	52,781	7,750
Right-of-use assets	773,472	642,775	94,386
Long-term investments, net	67,773	67,219	9,870
Deferred income tax assets	99,789	145,561	21,374
Other non-current assets	121,517	113,350	16,644
Total assets	2,512,020	2,060,154	302,513

LIABILITIES AND EQUITY
Current liabilities:
Short-term bank loans	89,162	99,872	14,665
Accounts payable	16,563	8,223	1,207
Amounts due to related parties	239	103	15
Operating lease liabilities-current	241,710	197,291	28,970
Income taxes payable	69,671	73,077	10,731
Deferred revenue-current	1,554,431	1,938,384	284,634
Accrued expenses and other current liabilities	397,558	298,102	43,774
Total current liabilities	2,369,334	2,615,052	383,996
Deferred revenue-non current	31,539	25,043	3,677
Operating lease liabilities-non current	508,810	467,851	68,700
Other non-current liabilities	5,401	5,163	758
Total liabilities	2,915,084	3,113,109	457,131
Commitments and contingencies	–	–	–
Shareholders’ equity:
Class A ordinary shares	337	342	50
Class B ordinary shares	74	75	11
Treasury stock	(457,169)	(459,815)	(67,520)
Additional paid-in capital	1,284,573	1,315,170	193,121
Accumulated other comprehensive income	51,386	49,729	7,302
Accumulated deficit	(1,279,248)	(1,951,660)	(286,584)
Total deficit attributable to the shareholders of Tarena International, Inc.	(400,047)	(1,046,159)	(153,620)
Non-controlling interest	(3,017)	(6,796)	(998)
Total liabilities and equity	2,512,020	2,060,154	302,513

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(in thousands, except share data and per share data)

	For the Three Months Ended September 30			For the Nine Months Ended September 30
	2019	2020	2020	2019	2020	2020
	RMB	RMB	USD	RMB	RMB	USD

Net revenues	659,185	620,802	88,799	1,541,798	1,247,628	178,459
Cost of revenues^(a)(b)	(285,060)	(270,842)	(38,741)	(863,686)	(775,369)	(110,908)
Gross profit	374,125	349,960	50,058	678,112	472,259	67,551
Selling and marketing expenses^{(a) (b)}	(272,291)	(239,211)	(34,217)	(814,555)	(682,995)	(97,695)
General and administrative expenses^{(a) (b)}	(195,588)	(143,072)	(20,465)	(525,256)	(435,296)	(62,264)
Research and development expenses^{(a) (b)}	(25,638)	(24,256)	(3,470)	(104,590)	(75,219)	(10,759)
Operating loss	(119,392)	(56,579)	(8,094)	(766,289)	(721,251)	(103,167)
Interest income	5,749	3,337	477	15,176	1,273	182
Other income (expense)	481	2,864	410	(2)	3,171	454
Foreign exchange gains (loss)	2,020	(3,393)	(485)	3,126	(1,744)	(249)
Loss before income taxes	(111,142)	(53,771)	(7,692)	(747,989)	(718,551)	(102,780)
Income tax benefit (expense)	1,135	(10,113)	(1,447)	12,872	42,061	6,016
Net loss	(110,007)	(63,884)	(9,139)	(735,117)	(676,490)	(96,764)
Less: Net loss attributable to non-controlling interests	(1,077)	(931)	(133)	(2,133)	(4,079)	(583)
Net loss attributable to Class A and Class B ordinary shareholders	(108,930)	(62,953)	(9,006)	(732,984)	(672,411)	(96,181)

Net loss per Class A and Class B ordinary share:
Basic and diluted	(2.04)	(1.16)	(0.17)	(13.76)	(12.42)	(1.78)
Weighted average number of Class A and Class B ordinary shares outstanding:
Basic and diluted	53,392,184	54,443,291	54,443,291	53,266,054	54,151,656	54,151,656

Net loss	(110,007)	(63,884)	(9,139)	(735,117)	(676,490)	(96,764)
Other comprehensive income
Foreign currency translation adjustment, net of nil income taxes	(6,783)	(1,856)	(265)	1,490	(1,657)	(237)
Comprehensive loss	(116,790)	(65,740)	(9,404)	(733,627)	(678,147)	(97,001)

Notes:
(a) Includes share-based compensation expenses as follows:

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2019	2020	2020	2019	2020	2020
	RMB	RMB	USD	RMB	RMB	USD

Cost of revenues	288	80	11	741	322	46
Selling and marketing expenses	3,566	343	49	5,546	1,381	198
General and administrative expenses	12,874	6,143	879	29,490	19,861	2,841
Research and development expenses	7,583	794	114	13,274	7,092	1,014

(b) There were reclassification adjustments for the financials without impact on net loss in the first half of 2019.

TARENA INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(in thousands, except share data and per share data)

	For the Three Months Ended September 30,			For the Nine Months Ended September 30,
	2019 (Unaudited)	2020 (Unaudited)	2020 (Unaudited)	2019 (Unaudited)	2020 (Unaudited)	2020 (Unaudited)
	RMB	RMB	USD	RMB	RMB	USD

GAAP Cost of revenues	285,060	270,842	38,741	863,686	775,369	110,908
Share-based compensation expense in cost of revenues	288	80	11	741	322	46
Non-GAAP Cost of revenues	284,772	270,762	38,730	862,945	775,047	110,862

GAAP Selling and marketing expenses	272,291	239,211	34,217	814,555	682,995	97,695
Share-based compensation expense in selling and marketing expenses	3,566	343	49	5,546	1,381	198
Non-GAAP Selling and marketing expenses	268,725	238,868	34,168	809,009	681,614	97,497

GAAP General and administrative expenses	195,588	143,072	20,465	525,256	435,296	62,264
Share-based compensation expense in general and administrative expenses	12,874	6,143	879	29,490	19,861	2,841
Non-GAAP General and administrative expenses	182,714	136,929	19,586	495,766	415,435	59,423

GAAP Research and development expenses	25,638	24,256	3,470	104,590	75,219	10,759
Share-based compensation expense in research and development expenses	7,583	794	114	13,274	7,092	1,014
Non-GAAP Research and development expenses	18,055	23,462	3,356	91,316	68,127	9,745

Operating loss	(119,392)	(56,579)	(8,094)	(766,289)	(721,251)	(103,167)
Share-based compensation expenses	24,311	7,360	1,053	49,051	28,656	4,099
Non-GAAP Operating loss	(95,081)	(49,219)	(7,041)	(717,238)	(692,595)	(99,068)

Net loss	(110,007)	(63,884)	(9,139)	(735,117)	(676,490)	(96,764)
Share-based compensation expenses	24,311	7,360	1,053	49,051	28,656	4,099
Non-GAAP Net loss	(85,696)	(56,524)	(8,086)	(686,066)	(647,834)	(92,665)
Less: Net loss attributable to non- controlling interests	(1,077)	(931)	(133)	(2,133)	(4,079)	(583)
Non-GAAP net loss attributable to Class A and Class B ordinary shareholders	(84,619)	(55,593)	(7,953)	(683,933)	(643,755)	(92,082)
Non-GAAP net loss per Class A and Class B ordinary share ^(a)
Basic and diluted	(1.58)	(1.02)	(0.15)	(12.84)	(11.89)	(1.70)
Weighted average number of ordinary shares outstanding used in calculating Non-GAAP net loss per Class A and Class B ordinary share ^(a)
Basic and diluted	53,392,184	54,443,291	54,443,291	53,266,054	54,151,656	54,151,656

Notes:
(a) The Non-GAAP net loss per share is computed using Non-GAAP net loss attributable to ordinary shareholders and the same number of ordinary shares used in GAAP basic and diluted net loss per share calculation.
(b) There was no tax impact of share-based compensation expenses for the third quarter and first nine months of 2020 and 2019, respectively.

View original content:http://www.prnewswire.com/news-releases/tarena-international-inc-announces-third-quarter-2020-results-301172665.html

SOURCE Tarena International, Inc.

November 13, 2020 5:03 am

NeuroRx and Relief Therapeutics announce enrollment of 150 patients in phase 2b/3 trial of RLF-100™ for Critical COVID-19 with Respiratory Failure

– Observations of rapid recovery noted on chest x-ray and no drug-related Serious Adverse Events reported

PR Newswire

RADNOR, Pa. and GENEVA, Nov. 13, 2020 /PRNewswire/ — NeuroRx, Inc. and Relief Therapeutics Holdings AG (SIX:RLF, OTCBB:RLFTF) (“Relief”) announced that as of today, 150 patients (out of a targeted enrollment of 165) have been enrolled in the ongoing phase 2b/3 trial of RLF-100™ (aviptadil) for treating respiratory failure in patients with Critical COVID-19. Respiratory failure is defined, according to FDA guidance, as the need for intensive care with mechanical ventilation, non-invasive ventilation, or high-flow nasal oxygen in order to sustain adequate levels of blood oxygen. So far, no drug-related Serious Adverse Events have been reported.

There is currently no FDA-approved drug that has shown efficacy in patients who are already in the Intensive Care Unit (ICU) with Respiratory Failure. Although NeuroRx and Relief are optimistic that RLF-100™ will also be effective in treating early COVID-19, the companies have focused first on those patients who have no available therapy and are at the highest risk of mortality. An open-label prospective study in patients with Critical COVID-19 has already shown a nine-fold hazard ratio advantage in both survival and recovery from respiratory failure (http://dx.doi.org/10.2139/ssrn.3665228) with both statistically significant (P < .001). More than 110 patients with similar severity have additionally been treated nationwide under an FDA-sanctioned Expanded Access Protocol (NCT04453839).

Although the phase 2b/3 study remains blinded, illustrative blinded recoveries from signs of Critical COVID-19 on Chest x-ray within 10 days have been reported by study sites and shared with the study’s Data Monitoring Committee and FDA (see figure). Until the study is unblinded, it cannot be known whether this rapid recovery was more frequent among patients treated with RLF-100™ compared to those treated with placebo. However, in the open-label prospective study, more rapid recovery was seen among 21 patients treated with RLF-100^TM than those treated with standard of care with an average of nine fewer ICU days in the RLF-100^TM treated patients compared to those treated with Standard of Care.

Completion of enrollment is anticipated in the coming weeks. Enrollment was uniquely challenged by the devastating effects of the pandemic. It strained the capacity of hospitals and caused the temporary incapacity of investigators and study coordinators at several study sites, who themselves contracted COVID-19 in the course of their duties.

“Should RLF-100™ prove to be safe and effective for treating COVID-19 Respiratory Failure, the nation will owe an eternal debt of gratitude to the front-line healthcare workers, technicians, study coordinators, nurses, and doctors who worked seven days a week to help develop this treatment while risking their own health to do so. They are the true heroes,” said Prof. Jonathan Javitt, CEO and founder of NeuroRx, Inc.

About VIP in Lung Injury

Vasoactive Intestinal Polypeptide (VIP) was first discovered by the late Dr. Sami Said in 1970. Although first identified in the intestinal tract, VIP is now known to be produced throughout the body and to be primarily concentrated in the lungs. VIP has been shown in more than 100 peer-reviewed studies to have potent anti-inflammatory/anti-cytokine activity in animal models of respiratory distress, acute lung injury, and inflammation. Most importantly, 70% of the VIP in the body is bound to a rare cell in the lung, the alveolar type 2 cell, that is critical to transmission of oxygen to the body. VIP has a 20-year history of safe use in humans in multiple human trials for sarcoidosis, pulmonary fibrosis, asthma/allergy, and pulmonary hypertension.

COVID-19-related death is primarily caused by respiratory failure. Before this acute phase, however, there is evidence of early viral infection of the alveolar type 2 cells. These cells are known to have angiotensin converting enzyme 2 (ACE2) receptors at high levels, which serve as the route of entry for the SARS-CoV-2 into the cells. Coronaviruses are shown to replicate in alveolar type 2 cells but not in the more numerous type 1 cells. These same type 2 alveolar cells have high concentrations of VIP receptors on their cell surfaces giving rise to the hypothesis that VIP could specifically protect these cells from injury.

Injury to the type 2 alveolar cells is an increasingly plausible mechanism of COVID-19 disease progression (Mason 2020). These specialized cells replenish the more common type 1 cells that line the lungs. More importantly, type 2 cells manufacture surfactant that coats the lung and are essential for oxygen exchange. Other than RLF-100™, no currently proposed treatments for COVID-19 specifically target these vulnerable type 2 cells.

About RLF-100™

RLF-100™ (Aviptadil) is a formulation of Vasoactive Intestinal Polypeptide (VIP) that was developed based on Prof. Sami Said’s original work at Stony Brook University, for which Stony Brook was awarded an FDA Orphan Drug Designation in 2001. VIP is known to be highly concentrated in the lungs, where it inhibits coronavirus replication, blocks the formation of inflammatory cytokines, prevents cell death, and upregulates the production of surfactant. FDA has now granted IND authorization for intravenous and inhaled delivery of RLF-100™ for the treatment of COVID-19 and awarded Fast Track designation. RLF-100™ is being investigated in two placebo-controlled US Phase 2b/3 clinical trials in respiratory deficiency due to COVID-19. Since July 2020, more than 210 patients with Critical COVID-19 and Respiratory Failure have been treated with RLF-100™ under FDA-approved protocols. Information on the RLF-100™ Expanded Access program is at . https://www.neurorxpharma.com/our-services/rlf-100.

About RELIEF THERAPEUTICS Holding AG

Relief focuses primarily on clinical-stage programs based on molecules of natural origin (peptides and proteins) with a history of clinical testing and use in human patients or a strong scientific rationale. Currently, Relief is concentrating its efforts on developing new treatments for respiratory disease indications. Relief holds orphan drug designations from the U.S. FDA and the European Union for the use of VIP to treat ARDS, pulmonary hypertension, and sarcoidosis. Relief also holds a patent issued in the U.S. and multiple other countries covering potential formulations of RLF-100™.

RELIEF THERAPEUTICS Holding AG is listed on the SIX Swiss Exchange under the symbol RLF and quoted in the U.S. on the OTCQB under the symbol RLFTF.

About NeuroRx, Inc.

NeuroRx draws upon more than 100 years of collective drug development experience and is led by former senior executives of Johnson & Johnson, Eli Lilly, Pfizer, and AstraZeneca, PPD. In addition to its work on RLF-100™, NeuroRx has been awarded Breakthrough Therapy Designation and a Special Protocol Agreement to develop NRX-101 in suicidal bipolar depression and is currently in Phase 3 trials. Its executive team is led by Prof. Jonathan C. Javitt, MD, MPH, who has served as a health advisor to four Presidential administrations and worked on paradigm-changing drug development projects for Merck, Allergan, Pharmacia, Pfizer, Novartis, and Mannkind, together with Robert Besthof, MIM, who served as the Global Vice President (Commercial) for Pfizer’s Neuroscience and Pain Division. Its Board of Directors and Advisors includes Hon. Sherry Glied, former Assistant Secretary, U.S. Dept. of Health and Human Services; Mr. Chaim Hurvitz, former President of the Teva International Group, Lt. Gen. HR McMaster, the 23rd National Security Advisor, Wayne Pines, former Associate Commissioner of the U.S. Food and Drug Administration, Judge Abraham Sofaer, and Daniel Troy, former Chief Counsel, U.S. Food and Drug Administration.

Disclaimer: This communication expressly or implicitly contains certain forward-looking statements concerning RELIEF THERAPEUTICS Holding AG, NeuroRx, Inc. and their businesses. The results reported herein may or may not be indicative of the results of future and larger clinical trials for RLF-100™ for the treatment of COVID-19. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of RELIEF THERAPEUTICS Holding AG and/or NeuroRx, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. RELIEF THERAPEUTICS Holding AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

CORPORATE CONTACTS

NeuroRx, Inc.	Relief Therapeutics Holdings SA
Jonathan C. Javitt, M.D., MPH	Raghuram (Ram) Selvaraju, Ph.D., MBA
Chairman and Chief Executive Officer	Chairman of the Board
[email protected]	[email protected]


MEDIA CONTACT

NeuroRx (United States):	Relief (Europe):
David Schull	Anne Hennecke / Brittney Sojeva
Russo Partners, LLC	MC Services AG
[email protected]	[email protected]
858-717-2310	+49 (0) 211-529-252-14

INVESTOR RELATIONS

NeuroRx (United States)	Relief (Europe):
Brian Korb Solebury Trout [email protected] 917-653-5122	Anne Hennecke / Brittney Sojeva MC Services AG [email protected] +49 (0) 211-529-252-14

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SOURCE NeuroRx

November 13, 2020 5:03 am

Aurora Mobile Partners with Data Center of China Life to Empower User Analytics

SHENZHEN, China, Nov. 13, 2020 (GLOBE NEWSWIRE) — Aurora Mobile Limited (NASDAQ: JG) (“Aurora Mobile” or the “Company”), a leading mobile developer service provider in China, today announced that it has entered into a partnership with Data Center of China Life Insurance Company Ltd. (“China Life”), a leading life insurance company in China, to deploy intelligent solutions for user analytics and enhance overall operational and service efficiency.

This partnership allows Aurora Mobile to provide Data Center of China Life with comprehensive and intelligent operating data statistics and analytics by leveraging its stable, secure, efficient, and intelligent big data analytics platform built on private cloud infrastructure. Aurora Mobile will help China Life more accurately understand its user needs, increase user conversion, improve user experience and retention. This cooperation demonstrates the industry-wide acclaim and trust that Aurora Mobile commands for the robust technical capabilities and services it offers to leading insurance APPs in China.

As a leading mobile developer service provider in China for almost a decade, Aurora Mobile continues to leverage its “APP developer-centric” strategy to help mobile APP developers optimize user experience and conduct more in-depth operations through agile product development. Iterative technology improvements are deployed with a clear focus on increasing demand for mobile operations, business growth and monetization. The Company has successively launched push notifications, one-key authentication, instant messaging, statistics and analytics, and APP traffic monetization (JG Alliance) and other services. Aurora Mobile also leverages its AI-driven data processing platform to provide customers with one-stop diversified big data service solutions, helping customers across various industries to improve operational efficiency and conduct data-led decision making.

Aurora Mobile remains committed to helping mobile APP developers satisfy the growing demands for operational efficiency, generate business growth and drive monetization efforts. Going forward, Aurora Mobile will continue to explore other strategic partnerships to help them incorporate digital operations, optimize decision-making and improve operational efficiency.

About Aurora Mobile Limited

Founded in 2011, Aurora Mobile is a leading mobile developer service provider in China. Aurora Mobile is committed to providing efficient and stable push notification, one-click verification, and APP traffic monetization services to help developers improve operational efficiency, grow and monetize. Meanwhile, Aurora Mobile’s vertical applications have expanded to market intelligence, financial risk management, and location-based intelligence, empowering various industries to improve productivity and optimize decision-making.

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,” “confident” and similar statements. Among other things, the Business Outlook and quotations from management in this announcement, as well as Aurora Mobile’s strategic and operational plans, contain forward-looking statements. Aurora Mobile may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Aurora Mobile’s beliefs and expectations, are forward-looking statements. 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 statement, including but not limited to the following: Aurora Mobile’s strategies; Aurora Mobile’s future business development, financial condition and results of operations; Aurora Mobile’s ability to attract and retain customers; its ability to develop and effectively market data solutions, and penetrate the existing market for developer services; its ability to transition to the new advertising-driven SaaS-model; its ability maintain or enhance its brand; the competition with current or future competitors; its ability to continue to gain access to mobile data in the future; the laws and regulations relating to data privacy and protection; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company’s filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and Aurora Mobile undertakes no duty to update such information, except as required under applicable law.

For general inquiry, please contact:

Aurora Mobile Limited

E-mail: [email protected]

Christensen

In China

Mr. Eric Yuan
Phone: +86-10-5900-1548
E-mail: [email protected]

In US

Ms. Linda Bergkamp
Phone: +1-480-614-3004
Email: [email protected]

November 13, 2020 4:58 am

Amcor’s Matrix paper-based recyclable packaging for soft cheese wins innovation award

PR Newswire

Amcor’s premium Matrix paper-based and paraffin-free packaging for soft cheese receives a Silver award at the 2020 Packaging Innovation Awards sponsored by Dow.

ZURICH, Nov. 13, 2020 /PRNewswire/ — Amcor (NYSE: AMCR) (ASX: AMC), a global leader in packaging, has been awarded with a Silver prize at the 2020 Packaging Innovation Awards, sponsored by Dow. The company has been recognised for its Matrix range, the industry’s first paper-based, paraffin-free and recyclable packaging for soft cheese. This innovation of providing the right breathable barrier for soft cheese while removing paraffin has transformed a non-recyclable packaging material into a cheese wrap that can be recycled in the paper stream.

Michael Zacka, President Amcor Flexibles EMEA, said, “Matrix’s breakthrough paraffin-free technology brings soft cheese packaging into the circular economy and we are pleased it has been recognised with a prestigious Dow award. Matrix is another move in the right direction for sustainability combined with performance – offering cheese manufacturers improved flavour control and recyclability.”

“The quality of innovations we saw in the 2020 Packaging Innovation Awards is remarkable,” said Diego Donoso, business president for Dow Packaging & Specialty Plastics. “I’m inspired that the packaging industry continues to move sustainability and innovation forward even during complicated times. All winners should be proud of their accomplishment.”

The Packaging Innovation Awards sponsored by Dow honour the industry’s top achievements in packaging design, materials, technology, and processes. In 2019, the competition awarded Amcor for its paper-based packaging for processed meat and cheese, PET bottle for Nestlé’s Coffeemate®, a Cooler Bag for Molson Coors beer, and a pet treat pouch for Full Moon Pet.

Learn more about Amcor’s Matrix packaging at https://www.amcor.com/product-listing/matrix

About Amcor

Amcor is a global leader in developing and producing responsible packaging for food, beverage, pharmaceutical, medical, home- and personal-care, and other products. Amcor works with leading companies around the world to protect their products and the people who rely on them, differentiate brands, and improve supply chains through a range of flexible and rigid packaging, specialty cartons, closures, and services. The company is focused on making packaging that is increasingly light-weighted, recyclable and reusable, and made using an increasing amount of recycled content. Around 47,000 Amcor people generate US$12.5 billion in sales from operations that span about 230 locations in 40-plus countries.

www.amcor.com I LinkedIn I Facebook I Twitter I YouTube

View original content:http://www.prnewswire.com/news-releases/amcors-matrix-paper-based-recyclable-packaging-for-soft-cheese-wins-innovation-award-301172662.html

SOURCE Amcor

November 13, 2020 4:47 am

DNP Develops Film That Corrects Blue Tint of Organic EL Panels When Viewed From an Angle

DNP Develops Film That Corrects Blue Tint of Organic EL Panels When Viewed From an Angle

TOKYO–(BUSINESS WIRE)–
Dai Nippon Printing Co., Ltd. (DNP) (TOKYO: 7912) has developed a new film that corrects the blue tint seen in organic electroluminescent (EL) panels when viewing devices from an angle.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201113005279/en/

OLED Blue Shift Control Film (Graphic: Business Wire)

Organic EL panels are being increasingly employed in smartphones, tablets, computers and televisions. While exhibiting high contrast and fast response speed, Organic EL panels tend to develop a color shift, appearing blue, when viewed from an angle.

Going forward, solution needs will become more acute in line with the increased size of TV screens and the widespread use of foldable smartphones and in-vehicle displays.

DNP’s unique solution leverages proprietary fine patterning technology to create a film capable of correcting for this blue tint and reproducing vivid colors even when viewed from an angle.

The new film will be marketed as “Blue Shift Control Film.”

https://www.youtube.com/watch?v=mDpi6emSMG4

DNP will provide this film to panel makers, aiming for annual sales of JPY 2.4 bln. (approximately USD 23 mln.) in the fiscal year ending March 31, 2023.

DNP is one of the world’s largest comprehensive printing companies, providing a diverse portfolio of products and services to about 20,000 corporate clients worldwide. Since we were founded in 1876, we have consistently innovated new products and processes, and have successfully integrated proprietary printing and information technologies to branch out into various fields, including packaging, decorative materials, display components, and electronic devices. DNP continues to take on the challenge of new business fields, including those related to the environment, energy, and life sciences. Our aim is to become a principal provider of solutions to a variety of problems by developing and combining new technologies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201113005279/en/

Media contact:

Mr. Tamio Shinkai, IR and Public Relations Division

TEL: 813 6735-0101

E-mail: [email protected]

KEYWORDS: Japan Asia Pacific

INDUSTRY KEYWORDS: Chemicals/Plastics Automotive Manufacturing Technology Manufacturing Other Technology Mobile/Wireless Other Manufacturing

MEDIA:

Logo

Photo

OLED Blue Shift Control Film (Graphic: Business Wire)

November 13, 2020 4:34 am

UAE’s Telecommunications Regulatory Authority accredits Lleida.net as a certification service provider

PR Newswire

MADRID and DUBAI, U.A.E, Nov. 13, 2020 /PRNewswire/ — Listed technology services company Lleida.net (BME:LLN) (EPA:ALLLN) (OTCQX:LLEIF) has been accredited by the United Arab Emirates Telecommunications Regulatory Authority (TRA) to operate as a certification services provider in the country.

This accreditation is the previous step for automatic legal recognition of the electronic contracting and notification services of the company, whose titles are traded in New York, Paris and Madrid.

This recognition has been achieved through Lleida Information Technology Network Services LLC, the company’s subsidiary in the region.

“Our internationalisation policy in the Middle East is not only focused on boosting the commercialisation of our services, but also on strengthening our position as a benchmark player in the region,” explained Sisco Sapena, CEO and founder.

“TRA’s recognition of the validity of our services in the UAE is critical to further progress in this direction,” he added.

Lleida.net is, at present, the main European company in the eSignature industry.

Its electronic notification and contracting services are recognised as valid before courts and public administrations in more than 75 countries.

In 2018, Lleida.net became the first Spanish company to obtain the Eidas certification, which allows it to operate without barriers at a European level and makes its electronic certificates to be admitted by default before any European court or administration.

Likewise, the company has 187 patents in the digital signature industry, which have been granted by more than 50 countries in the five continents, including the United States, the European Union, the Gulf Cooperation Council, China, Russia, India, Mexico, Japan, Colombia, Argentina, Peru, South Africa, Nigeria, Australia or New Zealand.

Lleida.net started trading in the OTCQX Best Markets index in New York last week. On September 14th, 99.86% of the votes present at the General Shareholders Meeting expressed their approval to this IPO.

During 2020, Lleida.net became the company with the highest stock market growth in Euronext and one of the major stock market successes in the world throughout the health emergency caused by the Covid-19 pandemic.

Its shares have increased up to 940 per cent during the year.

Lleida.net is a European pioneer in an industry that is expected to grow exponentially in the next five years. On 2020, the sector experienced enormous growth, as the lockdown taking place in many nations forced millions of companies to change their contracting and notification formats to digital models overnight.

Contact:

The Paloma Project
Media, [email protected]
+356-7946-7486

View original content:http://www.prnewswire.com/news-releases/uaes-telecommunications-regulatory-authority-accredits-lleidanet-as-a-certification-service-provider-301172649.html

SOURCE Lleida.net

November 13, 2020 4:33 am

FinVolution Group to Report Third Quarter 2020 Financial Results on Tuesday, November 17, 2020

-Earnings Call Scheduled for 7:00 a.m. ET on November 17, 2020-

PR Newswire

SHANGHAI, Nov. 13, 2020 /PRNewswire/ — FinVolution Group (“FinVolution”, or the “Company”) (NYSE: FINV), a leading fintech platform in China, today announced that it will report its third quarter 2020 unaudited financial results, on Tuesday, November 17, 2020, before the open of U.S. markets.

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 17, 2020 (8:00 PM Beijing/Hong Kong time on November 17, 2020).

Dial-in details for the earnings conference call are as follows:

United States (toll free):	1-888-346-8982
International:	1-412-902-4272
Hong Kong, China (toll free):	800-905-945
Hong Kong, China:	852-3018-4992
Mainland China:	400-120-1203

Participants should dial-in at least 5 minutes before the scheduled start time and ask to be connected to the call for “FinVolution Group.”

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.finvgroup.com.

A replay of the conference call will be accessible approximately one hour after the conclusion of the live call until November 24, 2020, by dialing the following telephone numbers:

United States (toll free):	1-877-344-7529
International:	1-412-317-0088
Replay Access Code:	10149966

About FinVolution Group

FinVolution Group is a leading fintech platform in China connecting underserved individual borrowers with financial institutions. Established in 2007, the Company is a pioneer in China’s online consumer finance industry and has developed innovative technologies and has accumulated in-depth experience in the core areas of credit risk assessment, fraud detection, big data and artificial intelligence. The Company’s platform, empowered by proprietary cutting-edge technologies, features a highly automated loan transaction process, which enables a superior user experience. As of June 30, 2020, the Company had over 110.4 million cumulative registered users.

For more information, please visit https://ir.finvgroup.com.

For investor and media inquiries, please contact:

In China:
FinVolution Group
Head of Investor Relations
Jimmy Tan
Tel: +86 (21) 8030 3200-8601
E-mail: [email protected]

The Piacente Group, Inc. Jenny Cai
Tel: +86 (10) 6508-0677
E-mail: [email protected]

In the United States:
The Piacente Group, Inc. Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

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SOURCE FinVolution Group

November 13, 2020 4:33 am

Ever-Glory Reports Third Quarter 2020 Financial Results

PR Newswire

NEW YORK, Nov. 13, 2020 /PRNewswire/ — Ever-Glory International Group, Inc. (the “Company” or “Ever-Glory”) (NASDAQ: EVK), a retailer of branded fashion apparel and a leading global apparel supply chain solution provider, reported its financial results today for the third quarter ended September 30, 2020.

Mr. Yihua Kang, Chairman, President and Chief Executive Officer of Ever-Glory, said, “During the third quarter, we maintained our focus on developing the retail business through our multi-brand strategy and store network optimization initiative, while improving our wholesale business by upgrading customer portfolio and enhancing our account receivables.”

“During the third quarter of 2020, our retail brands continue to attract new customers and retain existing customers by focusing on design, quality and value,” Mr. Kang continued. “Following the remodeling or relocation of 38 stores during 2020, we operated a nationwide network of 923 stores as of September 30, 2020.”

“Looking at our wholesale business, we maintained focus on upgrading customer portfolio to reduce credit risk and improve margin in light of weak micro-environment and enhancing our account receivables. Going forward, we’ll implement a stricter client evaluation system and remain diligent in our account receivables collection. We believe the enduring strength of our wholesale business will support its long-term profitability.” concluded Mr. Kang.

Mr. Jason Jiansong Wang, Chief Financial Officer of Ever-Glory, added, “The third quarter results, are coupled with our ability to increase operating leverage. Going forward, we remain confident in the long-term prospects of our business and we will continue implementing our margin enhancement and cost control measures to further strengthen the profitability of our business.”

Third
Quarter 20
20
Financial Results

Total sales for the third quarter of 2020 were $79.9 million, a decrease of 29.5% from $113.3 million in the third quarter of 2019. This decrease was primarily driven by a 44.9% decrease in our wholesale business, partially offset by a 10.3% increase in retail business.

Sales for the Company’s branded fashion apparel retail division increased by 10.3% to $34.8 million for the third quarter of 2020, compared with $31.6 million for the third quarter of 2019. This increase was primarily due to an increase in the e-commerce sales. The Company had 923 retail stores as of September 30, 2020, compared with 1,157 retail stores as of September 30, 2019.

Sales for the Company’s wholesale division decreased by 44.9% to $45.1 million for the third quarter of 2020, compared with $81.7 million for the third quarter of 2019. This decrease was primarily attributable to a decrease in sales in Mainland China, Hong Kong, Germany, Europe-Other, Japan, United States and United Kingdom.

Total gross profit for the third quarter of 2020 decreased by 2.8% to $23.7 million, compared with $24.4 million for the third quarter of 2019. Total gross margin increased to 29.6% from 21.5% for the third quarter of 2019.

Gross profit for the retail business increased by 2.7% to $14.5 million for the third quarter of 2020, compared with $14.1 million for the third quarter of 2019. Gross margin was 41.6%, compared to 44.7% for the third quarter of 2019.

Gross profit for the wholesale business decreased by 10.4% to $9.2 million for the third quarter of 2020, compared with $10.3 million for the third quarter of 2019. Gross margin increased to 20.4% from 12.6% for the third quarter of 2019.

Selling expenses for the third quarter of 2020 decreased by 27.6% to $13.0 million, or 16.3% of total sales, compared with $17.9 million, or 15.8% of total sales for the third quarter of 2019. The decrease was attributable to the lower travelling expenses.

General and administrative expenses for the third quarter of 2020 increased by 3.1% to $7.8 million, or 9.8% of total sales, compared with $7.6 million, or 6.7% of total sales for the third quarter of 2019. The increase was attributable to the foreign currency transaction gain.

Income
(Loss)
from operations for the third quarter of 2020 increased by 344.5% to $2.8 million compared with ($1.2 million) for the third quarter of 2019.

Net income
(loss)
attributable to the Company for the third quarter of 2020 was $2.2 million compared with ($1.1 million) for the third quarter of 2019. Basic and diluted earnings (loss) per share were $0.15 for the third quarter of 2020 compared with ($0.07) for the third quarter of 2019.

Balance Sheet

As of September 30, 2020, Ever-Glory had approximately $70.0 million of cash and cash equivalents, compared with approximately $48.6 million as of December 31, 2019. Ever-Glory had working capital of approximately $53.3 million as of September 30, 2020, and outstanding bank loans of approximately $48.4 million as of September 30, 2020.

Conference Call

The Company will hold a conference call at 7:00 a.m. Eastern Time on November 13, 2020 (8:00 p.m. Beijing Time on November 13, 2020). Listeners can access the conference call by dialing +1-866-548-4713 or + 1-323-794-2093 and using the access code 9522138. The conference call will also be webcast live over the Internet and can be accessed at the Company’s website at http://www.everglorygroup.com.

A replay of the call will be available from 10:00 a.m. Eastern Time on November 13 through 11:59 p.m. Eastern Time on November 20 by calling +1-844-512-2921 or +1-412-317-6671 with pin number 9522138.

About Ever-Glory International Group, Inc.

Based in Nanjing, China, Ever-Glory International Group, Inc. is a retailer of branded fashion apparel and a leading global apparel supply chain solution provider. Ever-Glory is the first Chinese apparel Company listed on the American Stock Exchange (now named as NYSE MKT) in July 2008 and then transferred to The NASDAQ Global Market on December 31, 2015. Ever-Glory offers apparel to woman in China under its own brands “La go go”, “Velwin”, “Sea To Sky” and “idole”. Ever-Glory is also a leading global apparel supply chain solution provider with a focus on middle-to-high end casual wear, outerwear, and sportswear brands. Ever-Glory services a number of well-known brands and retail stores by providing a complete set of supply chain management services, including: fabric development and design, sampling, sourcing, quality control, manufacturing, logistics, customs clearance and distribution.

Forward-Looking Statements

Certain statements in this release and other written or oral statements made by or on behalf of Ever-Glory International Group, Inc. (the “Company”) are “forward looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and the Company’s future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including, without limitation, market acceptance of the Company’s products and offerings, development and expansion of the Company’s wholesale and retail operations, the Company’s continued access to capital, currency exchange rate fluctuation and other risks and uncertainties. The actual results the Company achieves (including, without limitation, the results stemming from the future implementation of the Company’s strategies and the revenue, net income and new retail store projections set forth herein) may differ materially from those contemplated by any forward-looking statements due to such risks and uncertainties (many of which are beyond the Company’s control). These statements are based on management’s current expectations and speak only as of the date of such statements. Readers should carefully review the risks and uncertainties described in the Company’s latest Annual Report on Form 10-K and other documents that the Company files from time to time with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
AS OF SEPTEMBER 30, 2020 AND DECEMBER 31, 2019 (UNAUDITED)

	2020		2019
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	69,950	$	48,551
Restricted cash		20,552		2,204
Trading securities		817		–
Accounts receivable, net		62,866		78,053
Inventories		46,443		67,355
Advances on inventory purchases		7,393		9,681
Value added tax receivable		2,106		2,495
Other receivables and prepaid expenses		5,229		5,293
Amounts due from related parties		1,086		123
Total Current Assets		216,442		213,755

NONCURRENT ASSETS
Equity security investment		2,936		–
Intangible assets, net		4,628		4,729
Property and equipment, net		28,203		28,812
Operating lease right-of-use assets		37,705		53,379
Deferred tax assets		1,099		996
Total Non-Current Assets		74,571		87,916
TOTAL ASSETS	$	291,013	$	301,671

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES
Bank loans	$	48,444	$	29,931
Accounts payable		65,155		72,418
Accounts payable and other payables – related parties		3,878		4,811
Other payables and accrued liabilities		14,159		19,137
Value added and other taxes payable		1,134		1,657
Income tax payable		1,104		1,142
Current operating lease liabilities		29,296		44,888
Total Current Liabilities		163,170		173,984

NONCURRENT LIABILITIES
Non-current operating lease liabilities		8,491		8,537
TOTAL LIABILITIES		171,661		182,521

COMMITMENTS AND CONTINGENCIES (Note 9)

STOCKHOLDERS’ EQUITY
Stockholders’ equity:
Preferred stock ($0.001 par value, authorized 5,000,000 shares, no shares issued and outstanding)		–		–
Common stock ($0.001 par value, authorized 50,000,000 shares, 14,809,160 and 14,801,770 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively)		15		15
Additional paid-in capital		3,650		3,640
Retained earnings		102,049		106,328
Statutory reserve		19,939		19,939
Accumulated other comprehensive (loss)		(1,308)		(4,330)
Amounts due from related party		(3,430)		(4,932)
Total equity attributable to stockholders of the Company		120,915		120,660
Noncontrolling interest		(1,563)		(1,510)
Total Equity		119,352		119,150
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	291,013	$	301,671

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

	Three months ended				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
NET SALES	$	79,908	$	113,326	$	188,350	$	278,598
COST OF SALES		56,235		88,967		134,193		195,895

GROSS PROFIT		23,673		24,359		54,157		82,703

OPERATING EXPENSES
Selling expenses		12,996		17,944		39,101		58,651
General and administrative expenses		7,818		7,584		19,574		22,450
Total Operating Expenses		20,814		25,528		58,675		81,101

INCOME (LOSS) FROM OPERATIONS		2,859		(1,169)		(4,518)		1,602

OTHER INCOME (EXPENSES)
Interest income		313		215		930		699
Interest expense		(700)		(265)		(1,607)		(1,036)
Other income, net		574		502		2,236		1,616
Total Other Income, Net		187		452		1,559		1,279

INCOME (LOSS) BEFORE INCOME TAX EXPENSE		3,046		(717)		(2,959)		2,881
Income tax expense		(822)		(387)		(1,315)		(2,667)

NET INCOME (LOSS)		2,224		(1,104)		(4,274)		214

Net (loss) income attributable to the non-controlling interest		(8)		28		(4)		46
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY		2,216		(1,076)		(4,278)		260

NET INCOME (LOSS)	$	2,224	$	(1,104)	$	(4,274)	$	214

Foreign currency translation gain (loss)		4,664		(3,729)		2,964		(2,244)
COMPREHENSIVE INCOME (LOSS)		6,888		(4,833)		(1,310)		(2,030)

Comprehensive (loss) income attributable to the non- controlling interest		(56)		15		(54)		67
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY	$	6,832	$	(4,818)	$	(1,364)	$	(1,963)

EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY’S STOCKHOLDERS
Basic and diluted	$	0.15	$	(0.07)	$	(0.29)	$	0.02
Weighted average number of shares outstanding Basic and diluted		14,808,737		14,801,770		14,805,987		14,801,770

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)
					Additional		Retained Earnings				Accumulated other		Amounts due from		Total equity attributable to stockholders		Non-
	Common Stock				paid-in				Statutory		Comprehensive		related		of the		controlling		Total
	Shares		Amount		capital		Unrestricted		reserve		loss		party		Company		Interest		equity
Balance at January 1, 2020		14,801,770	$	15	$	3,640	$	106,328	$	19,939	$	(4,330)	$	(4,932)	$	120,660		(1,510)	$	119,150
Stock issued for compensation		3,062		–		5		–		–		–		–		5				5
Net loss		–		–		–		(2,701)		–		–		–		(2,701)		3		(2,698)
Net cash received from related party under counter guarantee agreement		–		–		–		–		–		–		785		785		–		785
Foreign currency translation gain (loss)												(1,440)		–		(1,440)		3		(1,437)
Balance at March 31, 2020		14,804,832		15		3,645		103,627		19,939		(5,770)		(4,147)		117,309		(1,504)		115,805
Net loss								(3,794)								(3,794)		(6)		(3,800)
Net cash received from related party under counter guarantee agreement														151		151				151
Foreign currency translation loss												(261)				(261)		(2)		(263)
Balance at June 30, 2020		14,804,832	$	15	$	3,645	$	99,833	$	19,939	$	(6,031)	$	(3,996)	$	113,405		(1,512)	$	111,893
Stock issued for compensation		4,328		–		5		–		–		–		–		5				5
Net income								2,216								2,216		8		2,224
Net cash received from related party under counter guarantee agreement														566		566		–		566
Foreign currency translation gain												4,723				4,723		(59)		4,664
Balance at September 30, 2020		14,809,160	$	15	$	3,650	$	102,049	$	19,939	$	(1,308)	$	(3,430)	$	120,915		(1,563)	$	119,352

					Additional		Retained Earnings				Accumulated other		Amounts due from		Total equity attributable to stockholders		Non-
	Common Stock				paid-in				Statutory		Comprehensive		related		of the		controlling		Total
	Shares		Amount		capital		Unrestricted		reserve		income		party		Company		Interest		equity
Balance at January 1, 2019		14,798,198	$	15	$	3,627	$	105,914	$	19,083	$	(3,578)	$	(10,354)	$	114,707		(1,551)	$	113,156
Stock issued for compensation		1,942		0.004		8		–		–		–		–		8				8
Net income (loss)		–		–		–		(521)		–		–		–		(521)		66		(455)
Net cash received from related party under counter guarantee agreement		–		–		–		–		–		–		1,101		1,101		–		1,101
Foreign currency translation gain												3,972		–		3,972		34		4,006
Balance at March 31, 2019		14,800,140		15		3,635		105,393		19,083		394		(9,253)		119,267		(1,451)		117,816
Net income (loss)								1,856								1,856		(83)		1,773
Net cash received from related party under counter guarantee agreement														1,390		1,390				1,390
Foreign currency translation loss												(2,487)				(2,487)		34		(2,453)
Balance at June 30, 2019		14,800,140	$	15	$	3,635	$	107,249	$	19,083	$	(2,093)	$	(7,863)	$	120,026		(1,500)	$	118,526
Stock issued for compensation		1,630		0.002		5										5				5

Net income (loss)								(1,076)								(1,076)		(28)		(1,104)
Net cash advanced to related party under counter guarantee agreement														1,215		1,215				1,215
Foreign currency translation loss												(3,729)				(3,729)		43		(3,686)
Balance at September 30, 2019		14,801,770	$	15	$	3,640	$	106,173	$	19,083	$	(5,822)	$	(6,648)	$	116,441		(1,485)	$	114,956

EVER-GLORY INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of U.S. Dollars, except share and per share data or otherwise stated)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (UNAUDITED)

	2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(4,274)	$	214
Adjustments to reconcile net (loss) income to cash provided by operating activities:
Depreciation and amortization		4,114		6,824
Loss from sale of property and equipment		283		16
Provision of bad debt allowance		683		820
Provision for obsolete inventories		5,786		3,846
Investment loss from the trading securities		13		–
Deferred income tax		(165)		(2,388)
Stock-based compensation		10		12
Changes in operating assets and liabilities
Accounts receivable		15,571		312
Inventories		16,135		(4,979)
Value added tax receivable		(577)		(281)
Other receivables and prepaid expenses		50		3,738
Advances on inventory purchases		2,461		(3,214)
Amounts due from related parties		(848)		16
Accounts payable		(7,842)		6,253
Accounts payable and other payables- related parties		(1,112)		(692)
Other payables and accrued liabilities		(6,093)		(10,594)
Value added and other taxes payable		467		(4,120)
Income tax payable		(64)		746
Net cash provided by (used in) operating activities		24,598		(3,471)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(2,769)		(6,555)
Purchases of trading securities		(825)		–
Investment in a partnership		(2,936)		–
Net cash used in investing activities		(6,530)		(6,555)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank loans		66,599		42,570
Repayment of bank loans		(49,278)		(35,620)
Net collection (advance) of amounts due from related party (equity)		1,618		3,937
Net cash provided by financing activities		18,939		10,887

EFFECT OF EXCHANGE RATE CHANGES ON CASH		2,740		(650)

NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		39,747		211

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD		50,755		47,012

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	$	90,502	$	47,223

Reconciliation of cash, cash equivalents and restricted cash reported within their consolidated balance sheets:

Cash and Cash Equivalents		69,950		45,837
Restricted cash		20,552		1,386
	$	90,502	$	47,223

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the period for:
Interest	$	1,607	$	1,036
Income taxes	$	1,455	$	4,196

View original content:http://www.prnewswire.com/news-releases/ever-glory-reports-third-quarter-2020-financial-results-301172609.html

SOURCE Ever-Glory International Group, Inc.

November 13, 2020 4:33 am

Li Auto Inc. Announces Unaudited Third Quarter 2020 Financial Results

Quarterly total revenues reached RMB2.51 billion (US$369.8 million)¹
Quarterly deliveries were 8,660 vehicles
Quarterly gross margin reached 19.8%

BEIJING, China, Nov. 13, 2020 (GLOBE NEWSWIRE) — Li Auto Inc. (“Li Auto” or the “Company”) (Nasdaq: LI), an innovator in China’s new energy vehicle market, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Operating Highlights for the Third Quarter of 2020

Deliveries of Li ONEs were 8,660 in the third quarter of 2020, representing a 31.1% quarter-over-quarter increase and setting a new quarterly record.

	2020 Q1	2020 Q2	2020 Q3
Deliveries	2,896	6,604	8,660

As of September 30, 2020, the Company had 35 retail stores covering 30 cities.

Financial Highlights

for the Third Quarter of 2020

Vehicle sales were RMB2.46 billion (US$363.0 million) in the third quarter of 2020, representing an increase of 28.4% from RMB1.92 billion in the second quarter of 2020.
Vehicle margin
² was 19.8% in the third quarter of 2020, compared with 13.7% in the second quarter of 2020.
Total
revenues were RMB2.51 billion (US$369.8 million) in the third quarter of 2020, representing an increase of 28.9% from RMB1.95 billion in the second quarter of 2020.
G
ross
profit was RMB496.8 million (US$73.2 million) in the third quarter of 2020, representing an increase of 91.3% from RMB259.7 million in the second quarter of 2020.
Gross margin was 19.8% in the third quarter of 2020, compared with 13.3% in the second quarter of 2020.
Loss from operations was RMB180.0 million (US$26.5 million) in the third quarter of 2020, representing an increase of 2.1% from RMB176.3 million in the second quarter of 2020. Non-GAAPloss from operations³ was RMB45.0 million (US$6.6 million) in the third quarter of 2020, representing a decrease of 74.5% from RMB176.3 million in the second quarter of 2020.

Net loss was RMB106.9 million (US$15.7 million) in the third quarter of 2020, representing an increase of 42.2% from RMB75.2 million in the second quarter of 2020. Non-GAAP net income³ was RMB16.0 million (US$2.4 million) in the third quarter of 2020, compared with RMB159.2 million Non-GAAP net loss³ in the second quarter of 2020.
Operating cash flow was RMB929.8 million (US$136.9 million) in the third quarter of 2020, representing an increase of 105.8% from RMB451.7 million in the second quarter of 2020.
Free cash flow
⁴ was RMB749.9 million (US$110.4 million) in the third quarter of 2020, representing an increase of 149.3% from RMB300.8 million in the second quarter of 2020.

Key Financial Results

(in RMB millions, except for percentages)

	For the Three Months Ended
	September 30,	June 30,	Q o Q
	2020	2020	% Change ⁵

Vehicle sales	2,464.7	1,919.2	28.4%
Vehicle margin	19.8%	13.7%	6.1%

Total revenues	2,510.8	1,947.2	28.9%
Gross profit	496.8	259.7	91.3%
Gross margin	19.8%	13.3%	6.5%

Loss from operations	(180.0)	(176.3)	2.1%
Non-GAAP loss from operations³	(45.0)	(176.3)	(74.5%)

Net loss	(106.9)	(75.2)	42.2%
Non-GAAP net income/(loss)³	16.0	(159.2)	N/A

Operating cash flow	929.8	451.7	105.8%
Free cash flow	749.9	300.8	149.3%

Recent Developments

Deliveries Update

In October 2020, the Company delivered 3,692 Li ONEs, representing a steady increase compared to September 2020. As of October 31, 2020, the Company had 41 retail stores covering 36 cities.

Executive and Board Appointments

The Company appointed Mr. Kai Wang as chief technology officer, effective September 15, 2020. In this role, Mr. Wang leads the Company’s advanced technology research and development (“R&D”) in smart vehicles, including electronic and electrical architecture, intelligent cockpit, autonomous driving, platform development and Li OS, the real-time operating system of Li Auto. The Company plans to continue recruiting outstanding professionals worldwide to further expand and strengthen its team.
The Company appointed Mr. Zheng Fan as a new independent director to the Company’s board of directors, effective October 22, 2020. Following the appointment, Mr. Fan serves as a member of the audit committee, compensation committee, and nominating and corporate governance committee of the board of directors.

Strategic Cooperation

In September 2020, the Company entered a three-way strategic cooperation with NVIDIA Corporation (“NVIDIA”), the world’s leading artificial intelligence computing company, and NVIDIA’s Chinese partner, Huizhou Desay SV Automotive (“Desay SV”). Through this strategic cooperation, Li Auto will be the first OEM equipping its vehicles, the full-size extended-range premium smart SUV to be launched in 2022, with the powerful NVIDIA Orin system-on-a-chip (“SoC”) chipset. Through this cooperation, the Company plans to further increase its R&D investment and accelerate the development of autonomous driving.

CEO and CFO comments

Mr. Xiang Li, founder, chairman and chief executive officer of Li Auto, commented, “This is our first quarterly earnings release as a public company, and we are pleased to announce robust third quarter results reflecting not only our strong growth momentum driven by the outstanding value proposition of our products, but also our relentless pursuit of operating efficiencies. We delivered 8,660 Li ONEs in the third quarter, representing a 31.1% quarter-over-quarter increase and setting a new quarterly record. Cumulative deliveries in 2020 at the end of October reached 21,852 vehicles. This is a strong testament to the competitiveness of the Li ONE. For the fourth quarter of 2020, we expect our growth momentum to continue with deliveries reaching 11,000 to 12,000 vehicles.”

“In terms of R&D, we will further increase our investment in this regard and continue to leverage technology to create value for users and optimize our user experience. Through product and technology innovations, we are committed to providing our users with safer, easier and more cost-effective travel solutions, ensuring we live up to their support and trust.” concluded Mr. Li.

Mr. Tie Li, chief financial officer of Li Auto, added, “We are pleased to report our third quarter financial and operating results with 28.9% quarter-over-quarter growth in total revenues driven by our record quarterly vehicle deliveries, as well as gross margin expansion, which increased to 19.8% compared with 13.3% of the second quarter. In the third quarter, we generated operating cash flow of RMB929.8 million, 105.8% higher than the prior quarter, which demonstrated our operational efficiency and successful cash flow management strategy. Looking forward, we will continue investing in both R&D and direct sales and servicing network expansion, as product iteration and sales channel integrity are the key components of our success.”

Financial Results for the Third Quarter of 2020

Revenues

Total revenues were RMB2.51 billion (US$369.8 million) in the third quarter of 2020, representing an increase of 28.9% from RMB1.95 billion in the second quarter of 2020.

Vehicle sales were RMB2.46 billion (US$363.0 million) in the third quarter of 2020, representing an increase of 28.4% from RMB1.92 billion in the second quarter of 2020. The increase in vehicle sales was mainly attributable to a 31.1% increase in vehicle deliveries to 8,660 vehicles in the third quarter of 2020 from 6,604 vehicles in the second quarter of 2020.
Other sales
and services were RMB46.1 million (US$6.8 million) in the third quarter of 2020, representing an increase of 64.1% from RMB28.1 million in the second quarter of 2020. The increase in other sales and services was in line with the increased vehicle sales and the increased number of vehicles using the Company’s services.

Cost of Sales and Gross Margin

Cost of sales was RMB2.01 billion (US$296.6 million) in the third quarter of 2020, representing an increase of 19.3% from RMB1.69 billion in the second quarter of 2020.
Gross
profit was RMB496.8 million (US$73.2 million) in the third quarter of 2020, representing an increase of 91.3% from RMB259.7 million in the second quarter of 2020. The increase of gross profit was primarily attributable to increased vehicle sales.
Vehicle margin² was 19.8% in the third quarter of 2020, compared with 13.7% in the second quarter of 2020. The increase in vehicle margin was primarily attributable to the decrease in purchase price of certain materials including a one-time rebate received from a supplier and lower unit manufacturing overhead cost due to the increased production volume.
Gross margin was 19.8% in the third quarter of 2020, compared with 13.3% in the second quarter of 2020, which was mainly driven by the increase of vehicle margin.

Operating Expenses

Total operating expenses were RMB676.7 million (US$99.7 million) in the third quarter of 2020, representing an increase of 55.2% from RMB436.0 million in the second quarter of 2020.
Research and development expenses were RMB334.5 million (US$49.3 million) in the third quarter of 2020, representing an increase of 66.1% from RMB201.4 million in the second quarter of 2020. Non-GAAP research and development expenses³ were RMB278.8 million (US$41.1 million) in the third quarter of 2020, representing an increase of 38.4% from RMB201.4 million in the second quarter of 2020. The increase in research and development expenses was primarily attributable to share-based compensation expenses recognized related to the stock options granted to employees with service conditions and a performance condition related to the IPO and initiating research and development for the Company’s next vehicle model, as well as increased headcount.
Selling, general and administrative expenses were RMB342.2 million (US$50.4 million) in the third quarter of 2020, representing an increase of 45.9% from RMB234.5 million in the second quarter of 2020. Non-GAAP selling, general and administrative expenses³ were RMB264.2 million (US$38.9 million) in the third quarter of 2020, representing an increase of 12.7% from RMB234.5 million in the second quarter of 2020. The increase in selling, general and administrative expenses was primarily driven by share-based compensation expenses recognized related to the stock options granted to employees with service conditions and a performance condition related to the IPO and increased headcount, as well as increased marketing and promotional expenses.

Loss from Operations

Loss from operations was RMB180.0 million (US$26.5 million) in the third quarter of 2020, representing an increase of 2.1% from RMB176.3 million in the second quarter of 2020. Non-GAAP loss from operations³ was RMB45.0 million (US$6.6 million) in the third quarter of 2020, representing a decrease of 74.5% from RMB176.3 million in the second quarter of 2020.

Net Loss and Earnings Per Share

Net loss was RMB106.9 million (US$15.7 million) in the third quarter of 2020, representing an increase of 42.2% from RMB75.2 million in the second quarter of 2020. Non-GAAP net income³ was RMB16.0 million (US$2.4 million) in the third quarter of 2020, compared with RMB159.2 million Non-GAAP net loss³ in the second quarter of 2020.
Basic and diluted net loss per ADS attributable to ordinary shareholders were both RMB0.52 (US$0.08) in the third quarter of 2020. Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders³ were RMB0.03 and RMB0.02, respectively, in the third quarter of 2020.

Balance Sheets, Operating Cash Flow and Free Cash Flow

Balance of cash and cash equivalents, restricted cash, time deposits and short-term investments was RMB18.92 billion (US$2.79 billion) as of September 30, 2020, compared with RMB3.71 billion as of December 31, 2019. This increase was primarily attributable to the issuance of Series D private financing, the completion of IPO and concurrent private placements.
Operating cash flow was RMB929.8 million (US$136.9 million) in the third quarter of 2020, representing an increase of 105.8% from RMB451.7 million in the second quarter of 2020.
Free cash flow
⁴ was RMB749.9 million (US$110.4 million) in the third quarter of 2020, representing an increase of 149.3% from RMB300.8 million in the second quarter of 2020.

Business Outlook

For the fourth quarter of 2020, the Company expects:

Deliveries of vehicles to be between 11,000 and 12,000 units, representing an increase of approximately 27.0% to 38.6% from the third quarter of 2020.
Total revenues to be between RMB3.11 billion (US$457.8 million) and RMB3.39 billion (US$499.4 million), representing an increase of approximately 23.9% to 35.1% from the third quarter of 2020.

This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.

Conference Call

Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on Friday, November 13, 2020 (9:00 p.m. Beijing Time on November 13, 2020) to discuss financial results and answer questions from investors and analysts.

For participants who wish to join the call, please complete online registration using the link provided below at least 20 minutes prior to the scheduled call start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, Direct Event passcode, a unique registrant ID and an e-mail with detailed instructions to join the conference call.

Participant Online Registration: https://apac.directeventreg.com/registration/event/5259875

A replay of the conference call will be accessible through November 21, 2020, by dialing the following numbers:

United States:	+1-855-452-5696
Mainland China:	+86-400-602-2065
Hong Kong, China:	+852-3051-2780
International:	+61-2-8199-0299
Conference ID:	5259875

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.lixiang.com.

Non-GAAP Financial Measure

The Company uses Non-GAAP measures, such as Non-GAAP research and development expenses, Non-GAAP selling, general and administrative expenses, Non-GAAP loss from operations, Non-GAAP net loss, Non-GAAP basic and diluted net income per ADS attributable to ordinary shareholders and free cash flow, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, changes in fair value of warrants and derivative liabilities, accretion on convertible redeemable preferred shares to redemption value and the effect of exchange rate changes on convertible redeemable preferred shares, the Company believes that the Non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the Non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The Non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from Non-GAAP methods of accounting and reporting used by other companies. The Non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

The Company mitigates these limitations by reconciling the Non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the Non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

About Li Auto Inc.

Li Auto Inc. is an innovator in China’s new energy vehicle market. The Company designs, develops, manufactures, and sells premium smart electric SUVs. Through innovative products, technology, and business model, the Company provides customers with safe, convenient, and cost-effective mobility solutions. Li Auto is the first to successfully commercialize extended-range electric vehicles in China. The Company started volume production of its first model, Li ONE, in November 2019. With Li ONE, the Company leverages its in-house technology to create value for our customers, focusing on range extension, smart technology, and autonomous driving solutions. Beyond Li ONE, the Company aims to expand its product line by developing new vehicles to target a broader consumer base.

For more information, please visit: http://ir.lixiang.com.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to 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,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Li Auto may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials, and in oral statements made by its officers, directors, or employees to third parties. Statements that are not historical facts, including statements about Li Auto’s beliefs, plans, and expectations, are forward-looking statements. 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 statement, including but not limited to the following: Li Auto’s strategies, future business development, and financial condition and results of operations; Li Auto’s limited operating history; risks associated with extended-range electric vehicles, Li Auto’s ability to develop, manufacture, and deliver vehicles of high quality and appeal to customers; Li Auto’s ability to generate positive cash flow and profits; product defects or any other failure of vehicles to perform as expected; Li Auto’s ability to compete successfully; Li Auto’s ability to build its brand and withstand negative publicity; cancellation of orders for Li Auto’s vehicles; Li Auto’s ability to develop new vehicles; and changes in consumer demand and government incentives, subsidies, or other favorable government policies. Further information regarding these and other risks is included in Li Auto’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Li Auto does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

Li Auto Inc.
Investor Relations
Email: [email protected]

The Piacente Group, Inc.
Yang Song
Tel: +86-10-6508-0677
Email: [email protected]

Brandi Piacente
Tel: +1-212-481-2050
Email: [email protected]

Li Auto Inc.
Unaudited Condensed Consolidated Statements of Loss

Amounts expressed in RMB, unless otherwise stated
(in thousands, except for share and per share data)

	Three Months Ended						Six Months Ended
	June 30, 2020		September 30, 2020		September 30, 2020		June 30, 2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
					(US$)
Revenues:
Vehicle sales	1,919,184		2,464,724		363,015		2,760,242
Other sales and services	28,054		46,075		6,786		38,671
Total revenues	1,947,238		2,510,799		369,801		2,798,913
Cost of sales:
Vehicle sales	(1,655,443	)	(1,976,078	)	(291,045	)	(2,425,439	)
Other sales and services	(32,092	)	(37,970	)	(5,592	)	(45,483	)
Total cost of sales	(1,687,535	)	(2,014,048	)	(296,637	)	(2,470,922	)
Gross profit	259,703		496,751		73,164		327,991
Operating expenses:
Research and development	(201,440	)	(334,527	)	(49,271	)	(391,130	)
Selling, general and administrative	(234,543	)	(342,180	)	(50,398	)	(347,304	)
Total operating expenses	(435,983	)	(676,707	)	(99,669	)	(738,434	)
Loss from operations	(176,280	)	(179,956	)	(26,505	)	(410,443	)
Other income/(expense)
Interest expense	(21,296	)	(12,862	)	(1,894	)	(40,931	)
Interest income and investment income, net	31,538		70,269		10,350		15,363
Changes in fair value of warrants and derivative liabilities	84,036		12,008		1,769		260,319
Others, net	6,840		3,612		532		9,044
Loss before income tax expense	(75,162	)	(106,929	)	(15,748	)	(166,648	)
Income tax expense	–		–		–		–
Net loss from continuing operations	(75,162	)	(106,929	)	(15,748	)	(166,648	)
Net loss from discontinued operations, net of tax	–		–		–		14,373
Net loss	(75,162	)	(106,929	)	(15,748	)	(152,275	)
Accretion on convertible redeemable preferred shares to redemption value	(264,208	)	(120,617	)	(17,765	)	(530,573	)
Effect of exchange rate changes on convertible redeemable preferred shares	(5,780	)	(93,104	)	(13,713	)	103,966
Net loss attributable to ordinary shareholders	(345,150	)	(320,650	)	(47,226	)	(578,882	)

Weighted average number of ADSs ⁶
Basic and diluted	127,500,000		614,802,583		614,802,583		127,500,000
Net loss per ADS attributable to ordinary shareholders
Basic and diluted	(2.71	)	(0.52	)	(0.08	)	(4.54	)

Li Auto Inc.
Unaudited Condensed Consolidated Balance Sheets

Amounts expressed in RMB, unless otherwise stated
(in thousands, except for share and per share data)

	December 31, 2019		June 30, 2020		September 30, 2020	September 30, 2020
	(audited)		(unaudited)		(unaudited)	(unaudited)
						(US$)
ASSETS
Current assets:
Cash and cash equivalents	1,296,215		1,062,134		6,472,280	953,264
Restricted cash	140,027		49,968		338,546	49,862
Time deposits and short-term investments	2,272,653		2,578,662		12,105,274	1,782,914
Trade receivable	8,303		83,004		111,836	16,472
Inventories	518,086		821,259		863,642	127,201
Prepayments and other current assets	812,956		582,569		685,183	100,916
Assets held for sale, current	17,599		–		–	–
Total current assets	5,065,839		5,177,596		20,576,761	3,030,629
Non-current assets:
Longterm investments	126,181		160,725		153,286	22,577
Property, plant and equipment, net	2,795,122		2,496,582		2,497,475	367,838
Operating lease right-of-use assets, net	510,227		1,275,412		1,289,599	189,937
Intangible assets, net	673,867		671,351		681,675	100,400
Other non-current assets	311,933		182,712		183,562	27,036
Assets held for sale, non-current	30,253		–		–	–
Total non- current assets	4,447,583		4,786,782		4,805,597	707,788
Total assets	9,513,422		9,964,378		25,382,358	3,738,417
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings	238,957		–		–	–
Trade and notes payable	624,666		1,306,813		2,070,804	304,996
Amounts due to related parties	9,764		10,187		13,452	1,981
Deferred revenue, current	56,695		53,143		157,344	23,174
Operating and finance lease liabilities, current	538,307		172,432		204,446	30,112
Warrants and derivative liabilities	1,648,690		1,183,096		–	–
Accruals and other current liabilities	867,259		579,539		507,192	74,701
Convertible debts, current	692,520		–		–	–
Liabilities held for sale, current	2,862		–		–	–
Total current liabilities	4,679,720		3,305,210		2,953,238	434,964
Non-current liabilities:
Long-term borrowings	–		497,200		504,367	74,285
Deferred revenue, non-current	5,943		41,312		76,608	11,283
Operating and finance lease liabilities, non-current	241,109		1,400,939		1,407,379	207,284
Other non-current liabilities	5,519		68,912		110,162	16,225
Total non- current liabilities	252,571		2,008,363		2,098,516	309,077
Total liabilities	4,932,291		5,313,573		5,051,754	744,041
Mezzanine equity	10,255,662		10,906,520		–	–
Total shareholders’ (deficit)/equity	(5,674,531	)	(6,255,715	)	20,330,604	2,994,376
Total liabilities, mezzanine equity and shareholders’ (deficit)/equity	9,513,422		9,964,378		25,382,358	3,738,417

Li Auto Inc.
Unaudited Condensed Consolidated Statements of Cash Flows

Amounts expressed in RMB, unless otherwise stated
(in thousands, except for share and per share data)

	Three Months Ended						Six Months Ended
	June 30, 2020		September 30, 2020		September 30, 2020		June 30, 2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
					(US$)
Net cash provided by operating activities	451,711		929,759		136,939		388,704
Net cash used in investing activities	(372,106	)	(9,883,509	)	(1,455,684	)	(553,523	)
Net cash (used in)/provided by financing activities	(30,000	)	14,885,719		2,192,429		(165,977	)
Effect of exchange rate changes	1,849		(233,245	)	(34,353	)	6,509
Net change in cash, cash equivalents and restricted cash	51,454		5,698,724		839,331		(324,287	)
Cash, cash equivalents and restricted cash at beginning of period	1,060,648		1,112,102		163,795		1,436,389
Cash, cash equivalents and restricted cash at end of period	1,112,102		6,810,826		1,003,126		1,112,102

Net cash provided by operating activities	451,711		929,759		136,939		388,704
Capital expenditures	(150,933	)	(179,880	)	(26,493	)	(273,079	)
Free cash flow	300,778		749,879		110,446		115,625

Li Auto Inc.
Unaudited Reconciliation of GAAP and Non-GAAP Results

Amounts expressed in RMB, unless otherwise stated
(in thousands, except for share and per share data)

	Three Months Ended						Six Months Ended
	June 30, 2020		September 30, 2020		September 30, 2020		June 30, 2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
					(US$)
Cost of sales	(1,687,535	)	(2,014,048	)	(296,637	)	(2,470,922	)
Shared-based compensation expenses	–		1,225		180		–
Non-GAAP cost of sales	(1,687,535	)	(2,012,823	)	(296,457	)	(2,470,922	)

Research and development	(201,440	)	(334,527	)	(49,271	)	(391,130	)
Shared-based compensation expenses	–		55,715		8,206		–
Non-GAAP research and development expenses	(201,440	)	(278,812	)	(41,065	)	(391,130	)

Selling, general and administrative	(234,543	)	(342,180	)	(50,398	)	(347,304	)
Shared-based compensation expenses	–		77,993		11,487		–
Non-GAAP selling, general and administrative expenses	(234,543	)	(264,187	)	(38,911	)	(347,304	)

Loss from operations	(176,280	)	(179,956	)	(26,505	)	(410,443	)
Shared-based compensation expenses	–		134,933		19,873		–
Non-GAAP loss from operations	(176,280	)	(45,023	)	(6,632	)	(410,443	)

Net loss	(75,162	)	(106,929	)	(15,748	)	(152,275	)
Shared-based compensation expenses	–		134,933		19,873		–
Changes in fair value of warrants and derivative liabilities	(84,036	)	(12,008	)	(1,769	)	(260,319	)
Non-GAAP net (loss)/income	(159,198	)	15,996		2,356		(412,594	)

Net loss attributable to ordinary shareholders	(345,150	)	(320,650	)	(47,226	)	(578,882	)
Shared-based compensation expenses	–		134,933		19,873		–
Changes in fair value of warrants and derivative liabilities	(84,036	)	(12,008	)	(1,769	)	(260,319	)
Accretion on convertible redeemable preferred shares to redemption value	264,208		120,617		17,765		530,573
Effect of exchange rate changes on convertible redeemable preferred shares	5,780		93,104		13,713		(103,966	)
Non-GAAP net (loss)/ income attributable to ordinary shareholders	(159,198	)	15,996		2,356		(412,594	)

Weighted average number of ADSs ( Non-GAAP)
Basic	127,500,000		614,802,583		614,802,583		127,500,000
Diluted	127,500,000		832,252,188		832,252,188		127,500,000
Non-GAAP net (loss)/income per ADS attributable to ordinary shareholders ⁷
Basic	(1.25	)	0.03		0.00		(3.24	)
Diluted	(1.25	)	0.02		0.00		(3.24	)

¹
All translations from Renminbi(“RMB”
)
to U.S. dollar(“US$”) are made at a rate of RMB6.7896 to US$1.00, the noon buying rate in effect on September 30, 2020 as set forth in the H.10 statistical release of the Federal Reserve Board.

²
Vehicle margin is the margin of vehicle sales, which is calculated based on revenues and cost of sales derived from vehicle sales only.

³
The Company’
s Non-GAAP financial measures exclude share-based compensation expenses, changes in fair value of warrants and derivative liabilities, accretion on convertible redeemable preferred shares to redemption value and the effect of exchange rate changes on convertible redeemable preferred shares
.
See “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end
of
this press release.

⁴
Free
ca
sh flow represents
ope
rating cash flow
less
capital
expenditures
.

⁵
Except for vehicle margin and gross margin, where absolute changes instead of percentage changes are calculated.

⁶
Each ADS represents two ordinary shares.

⁷
Non
–
GAAP basic net (loss)/income per ADS attributable to ordinary shareholders is calculated by dividing Non-GAAP net (loss)/income attributable to ordinary shareholders by the
weighted average number of shares outstanding during the periods. Non-GAAP diluted net (loss)/income per ADS attributable to ordinary shareholders is calculated by
dividing Non-GAAP net (loss)/income attributable to ordinary shareholders by the weighted average number of shares and dilutive potential shares outstanding during the periods, including the dilutive effect of convertible redeemable preferred shares as determined under the if-converted method
and
share-based awards as determined under the treasury stock method.

November 13, 2020 4:24 am

Fang Announces Third Quarter 2020 Unaudited Financial Results

PR Newswire

BEIJING, Nov. 13, 2020 /PRNewswire/ — Fang Holdings Limited (NYSE: SFUN) (“Fang” or the “Company”), a leading real estate Internet portal in China, today announced its unaudited financial results for the third quarter ended September 30, 2020.

Third Quarter 2020 Highlights

Total revenues were $56.7 million, a decrease of 16.1% from $67.6 million in the corresponding period of 2019.
Operating income from continuing operations was $17.7 million, a decrease of 33.7% from $26.7 million in the corresponding period of 2019.
Net income was $10.9 million, an increase of 1,393.3% from $0.7 million in the corresponding period of 2019.

Third Quarter 2020 Financial Results

Revenues

Fang reported total revenues of $56.7 million in the third quarter of 2020, a decrease of 16.1% from $67.6 million in the corresponding period of 2019, mainly due to the decrease in revenues from listing services.

Revenue from marketing services was $30.3 million in the third quarter of 2020, which remained relatively stable with $30.0 million in the corresponding period of 2019.
Revenue from listing services was $10.1 million in the third quarter of 2020, a decrease of 48.2% from $19.4 million in the corresponding period of 2019, mainly due to the decrease in the number of paying customer.
Revenue from leads generation services was $12.9 million in the third quarter of 2020, a decrease of 8.2% from $14.1 million in the corresponding period of 2019.
Revenue from financial services was $1.9 million in the third quarter of 2020, an increase of 9.0% from $1.7 million in the corresponding period of 2019, mainly due to an increase in average loan receivable balances.

Cost of Revenue

Cost of revenue was $5.1 million in the third quarter of 2020, a decrease of 11.0% from $5.7 million in the corresponding period of 2019, primarily due to optimization in cost structure.

Operating Expenses

Operating expenses were $35.1 million in the third quarter of 2020, a decrease of 3.9% from 36.5 million in the corresponding period of 2019, mainly due to the decrease in staff related costs.

Selling expenses were $15.1 million in the third quarter of 2020, which remained relatively stable with $14.8 million in the corresponding period of 2019.
General and administrative expenses were $20.0 million in the third quarter of 2020, a decrease of 7.8% from $21.7 million in the corresponding period of 2019, mainly due to the decrease in staff related costs.

Operating Income from Continuing Operations

Operating income from continuing operations was $17.7 million in the third quarter of 2020, a decrease of 33.7% from $26.7 million in the corresponding period of 2019, mainly due to the decrease in total revenue.

Change in Fair Value of Securities

Change in fair value of securities for the third quarter of 2020 was a gain of $19.4 million, compared to a loss of $26.1 million in the corresponding period of 2019, mainly due to the fluctuation in market price of investments in equity securities.

Income Tax Expenses

Income tax expenses were $19.2 million in the third quarter of 2020, compared to income tax benefits of $0.1 million in the corresponding period of 2019, mainly due to the effect of change in fair value of equity securities.

Net Income

Net income was $10.9 million in the third quarter of 2020, an increase of 1,393.3% from net income of $0.7 million in the corresponding period of 2019.

Business Outlook

Based on current operations and market conditions, Fang’s management predicts a positive net income for the year of 2020, which represents management’s current and preliminary view and is subject to change.

Conference Call Information

Fang’s management team will host a conference call on the same day at 7:00 AM U.S. EST (8:00 PM Beijing/Hong Kong time). The dial-in details for the live conference call are:

International Toll:	+65 67135600
Toll-Free/Local Toll:
United States	+1 877-440-9253 / +1 631-460-7472
Hong Kong	+852 800-906-603 / +852 3018-6773
Mainland China	+86 800-870-0075 / +86 400-120-0948
Direct Event Passcode	1383200#

Please register in advance of the conference using the link provided below. Upon registering, you will be provided with participant dial-in numbers, Direct Event passcode (1383200#) and unique registrant ID. Get prompted 10 min prior to the start of the conference. Enter the Direct Event Passcode above (1383200#), and your unique Registrant ID, followed by the pound or hash (#) sign to get into the call.

Direct Event online registration: http://apac.directeventreg.com/registration/event/2585897

A telephone replay of the call will be available after the conclusion of the conference call from 10:00 AM ET on November 13, 2020 through 7:59 AM ETNovember 21, 2020. The dial-in details for the telephone replay are:

International Toll:	+61 2-8199-0299
Toll-Free/Local Toll:
United States	+1 855-452-5696 / +1 646-254-3697
Hong Kong	+852 800-963-117 / +852 3051-2780
Mainland China	+86 400-602-2065 / +86 800-870-0206
Conference ID:	2585897

A live and archived webcast of the conference call will be available on Fang’s website at http://ir.fang.com.

About Fang

Fang operates a leading real estate Internet portal in China in terms of the number of page views and visitors to its websites. Through its websites, Fang provides primarily marketing, listing, leads generation and financial services for China’s fast-growing real estate and home furnishing and improvement sectors. Its user-friendly websites support active online communities and networks of users seeking information on, and other value-added services for, the real estate and home furnishing and improvement sectors in China. Fang currently maintains approximately 74 offices to focus on local market needs and its website and database contains real estate related content covering 665 cities in China. For more information about Fang, please visit http://ir.fang.com.

Safe Harbor Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking 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,” “is expected to,” “anticipates,” “aim,” “future,” “intends,” “plans,” “believes,” “are likely to,” “estimates,” “may,” “should” and similar expressions, and include, without limitation, statements regarding Fang’s future financial performance, revenue guidance, growth and growth rates, market position and continued business transformation. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Fang’s control, which may cause its actual results, performance or achievements to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, without limitation, the impact of Fang’s business development strategies, the impact of the COVID-19 pandemic, and the impact of current and future government policies affecting China’s real estate market. Further information regarding these and other risks, uncertainties or factors is included in Fang’s filings with the U.S. Securities and Exchange Commission. Fang does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

Fang Holdings Limited
Unaudited Condensed Consolidated Balance Sheets
(in thousands of U.S. dollars, except share data and per share data)

ASSETS		September 30,	December 31,
		2020	2019
Current assets:
	Cash and cash equivalents	111,848	105,282
	Restricted cash, current	229,168	219,096
	Short-term investments	253,135	194,720
	Accounts receivable, net	98,999	66,379
	Funds receivable	4,514	8,372
	Prepayment and other current assets	32,494	31,509
	Commitment deposits	193	188
	Loans receivable, current	73,899	60,490
	Amounts due from related parties	744	644
Total current assets		804,994	686,680
Non-current assets:
	Property and equipment, net	693,219	695,457
	Deferred tax assets	3,145	6,570
	Deposits for non-current assets	499	618
	Restricted cash, non-current portion	44,086	42,452
	Long-term investments	246,462	341,946
	Other non-current assets	38,496	39,179
Total non-current assets		1,025,907	1,126,222
Total assets		1,830,901	1,812,902

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
	Short-term loans	300,301	264,624
	Short-term bond payable	106,209	102,779
	Deferred revenue	132,895	134,143
	Accrued expenses and other liabilities	112,971	120,244
	Customers’ refundable fees	3,915	4,981
	Income tax payable	14,733	4,207
	Amounts due to related parties	12,472	9,227
Total current liabilities		683,496	640,205
Non-current liabilities:
	Long-term loans	150,299	184,158
	Convertible senior notes	168,452	168,929
	Deferred tax liabilities	95,985	90,723
	Other non-current liabilities	114,049	138,435
Total non-current liabilities		528,785	582,245
Total Liabilities		1,212,281	1,222,450

Equity:
	Class A ordinary shares, par value Hong Kong Dollar (“HK$”) 1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, issued shares as of December 31, 2019 and September 30, 2020: 71,775,686 and 71,775,686; outstanding shares as of December 31, 2019 and September 30, 2020: 65,403,527 and 65,715,527	9,244	9,244
	Class B ordinary shares, par value HK$1 per share, 600,000,000 shares authorized for Class A and Class B in aggregate, and 24,336,650 shares and 24,336,650 shares issued and outstanding as at December 31, 2019 and September 30, 2020, respectively	3,124	3,124
	Treasury stock	(117,183)	(123,216)
	Additional paid-in capital	540,049	528,620
	Accumulated other comprehensive loss	(75,247)	(98,371)
	Retained earnings	257,939	270,358
Total Fang Holdings Limited shareholders’ equity		617,926	589,759
	Non controlling interests	694	693
Total equity		618,620	590,452
TOTAL LIABILITIES AND EQUITY		1,830,901	1,812,902

Unaudited Condensed Consolidated Statements of Comprehensive Income^[i]
(in thousands of U.S. dollars, except share data and per share data)

		Three months ended
		September 30,	September 30,
		2020	2019

Revenues:
	Marketing services	30,273	29,993
	Listing services	10,061	19,438
	Leads generation services	12,948	14,099
	Financial services	1,864	1,710
	Value-added services	1,382	1,514
	E-commerce services	149	796
Total revenues		56,677	67,550

Cost of revenues:
	Cost of services	(5,066)	(5,694)
Total cost of revenues		(5,066)	(5,694)

Gross profit		51,611	61,856

Operating expenses and income:
	Selling expenses	(15,077)	(14,822)
	General and administrative expenses	(20,005)	(21,688)
	Other income	1,191	1,385

Operating income		17,720	26,731
	Foreign exchange (loss)/income	(5,138)	832
	Interest income	3,192	1,562
	Interest expense	(5,527)	(5,185)
	Investment income	460	2,068
	Realized gain on sale of available-for-sale securities	–	711
	Change in fair value of securities	19,393	(26,148)
	Government grants	72	44
Income before income taxes and noncontrolling interests		30,172	615
Income tax expense
	Income tax (expense)/benefit	(19,241)	117
Net income		10,931	732
	Net income attributable to noncontrolling interests	–	–
Net income attributable to Fang Holdings Limited shareholders		10,931	732
Earnings per share for Class A and Class B ordinary shares:
	Basic	0.12	0.01
	Diluted	0.12	0.01


^{^[i]} On June 19, 2020, a ratio change that had the same effect as a 1-for-10 reverse ADS split took effect, and as a result, one ADS currently represents ten Class A ordinary shares.

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SOURCE Fang Holdings Limited