Unlocking Digital
Education Market Opportunities with
Pioneering AI-Driven
HybriU
CUPERTINO, Calif., April 25,
2024 /PRNewswire/ -- Ambow Education Holding Ltd.
(NYSE American: AMBO) ("Ambow" or the "Company"), an AI-driven
educational technology company, today announced its financial and
operating results for the second half[1] and 2023 full
fiscal year,[2] ended December
31, 2023.
"2023 was a transitional year for us. We strategically pivoted
our business, securing the bedrock for our future growth with
HybriU's official launch in July, marking our foray into the large,
untapped hybrid and digital education market," said Dr.
Jin Huang, Ambow's President, Chief
Executive Officer and acting Chief Financial Officer. "The steps we
have taken vastly improved our financial profile, achieving a gross
margin of 50% in the fourth quarter of 2023 compared with a
negative gross margin in the same period of 2022.
"Our sights are now squarely set on emerging opportunities with
our transformational, first-to-market total solution HybriU
product. HybriU's all-encompassing technology integrates innovative
AI, lecture capture, connectivity, immersive technologies, and a
comprehensive management platform for educational purposes. Most
recently, we implemented HybriU at NewSchool of Architecture &
Design in San Diego, where we
hosted a highly successful open house event during the ASU+GSV
summit. This gives us first-mover advantages as we diligently work
to deploy our cutting-edge AI technology throughout higher
education and workforce training scenarios. As we make more inroads
in these large markets and continue to prudently manage our
expenses, we foresee continued financial momentum with expected
profitability for the full year 2024," concluded Dr. Huang.
|
[1] Financial results for the
second half of 2023 have not been audited or reviewed by the
Company's independent registered accounting firm.
|
|
[2] Financial results for the
full fiscal year ended December 31, 2023 have been audited by the
Company's independent registered accounting firm.
|
Fourth Quarter 2023 Financial
Highlights
- Net revenues from continuing operations in the fourth
quarter of 2023 were $2.4 million,
compared with $3.3 million in the
same period of 2022. The decrease was primarily driven by the
conclusion of its operation of Bay State
College (BSC) in August
2023.
- Gross profit (loss) from continuing operations in the
fourth quarter of 2023 was $1.2
million, compared with a gross loss of $0.7 million in the same period of 2022. Gross
profit margin was positive 50.0%, compared with negative 21.2% in
the fourth quarter of 2022.
- Operating expenses from continuing operations in
the fourth quarter of 2023 increased by 87.5% to $1.5 million from $0.8
million in the same period of 2022. The increase was
primarily associated with the expenditure of our new product,
HybriU.
- Operating loss from continuing operations in the
fourth quarter of 2023 improved to $0.3
million, compared with $1.5
million in the same period of 2022.
- Net income attributable to the Company's
ordinary shareholders from continuing operations improved to
$1.3 million, or $0.02 per basic and diluted share, compared with
a loss of $0.9 million, or
$0.02 per basic and diluted share, in
the same period of 2022. The increase was mainly due to the
$1.4 million gain on the disposal of
assets from the BSC curriculum in 2023.
Full Fiscal Year 2023 Financial
Highlights
- Net revenues from continuing operations in fiscal year
2023 decreased by 37.8% to $9.2
million from $14.8 million in
2022. The decrease was primarily due to the permanent closure of
BSC at the end of the 2022-2023 academic year.
- Gross profit from continuing operations in fiscal year
2023 was $2.5 million, increasing
from $0.3 million in 2022. The
increase was primarily attributable to a decrease in the cost of
revenues from stringent cost and expense controls.
- Operating expenses from continuing operations in fiscal
year 2023 decreased by 30.6% to $6.8
million from $9.8 million in
2022. The decrease was primarily attributable to the enactment of
strict expense control measures.
- Operating loss from continuing operations in
fiscal year 2023 was $4.3 million,
compared with a loss of $9.5 million
in 2022.
- Net loss attributable to the Company's ordinary shareholders
from continuing operations was $3.2
million, or $0.06 per basic
and diluted share, compared with a loss of $9.3 million, or $0.19 per basic and diluted share in 2022.
- As of December 31, 2023, Ambow
maintained strong cash resources of $10.0
million, comprised of cash and cash equivalents of
$4.8 million and restricted cash of
$5.2 million.
Recent Developments
On January 19, 2023, the New
England Commission of Higher Education ("NECHE") informed BSC of
its intention to withdraw BSC's accreditation. On April 11, 2023, the Board of Trustees voted to
permanently close Bay State College at
the end of the 2022-2023 academic year. This permanent closure was
completed on August 31, 2023.
Subsequent Events
Bay State College engaged in a
purchase and sale agreement (the "Purchase Agreement") with PRP
Consulting Group P.C. (the "Purchaser"), a third party. Under the
terms of the Purchase Agreement, Bay State
College agreed to transfer all Account Receivable Portfolio
to the Purchaser in exchange for a cash payment of $0.7 million. The transaction was finalized on
January 4, 2024.
Our ADSs (each representing twenty Class A ordinary shares)
currently trade in the NYSE American under the symbol "AMBO." Prior
to February 20, 2024, one ADS
represented two Class A ordinary shares. On February 20, 2024, we effected a change of the
ADS to Class A ordinary share ratio from one ADS representing two
Class A ordinary shares to one ADS representing 20 Class A ordinary
shares. The ratio change has the same effect as a 1-for-10 ADS
reverse split.
On March 6, 2024, Ambow appointed Mr. Norm
Allgood as fractional Head of HybriU to lead the
dissemination and implementation of HybriU, Ambow's AI-driven
hybrid learning solution for education and workforce training.
Exchange Rate Information
Historically, we presented our financial results in Renminbi.
Starting on January 1, 2023, we
changed our reporting currency from Renminbi to U.S. dollars since
the majority of our revenues and expenses are now denominated in
U.S. dollars. We believe the alignment of the reporting currency
with the underlying operations would better illustrate our results
of operations for each period. The historical results of operations
and financial statements included in this report are presented
based on what was presented in the previously filed Form 20-F.
About Ambow
Ambow Education Holding Ltd. is a U.S.-based, AI-driven
educational technology company. Its mission is to eliminate
barriers between online and offline environments, languages and
regions, and academia and industry. Ambow aims to empower
educators, students, institutions and organizations with advanced
technology designed explicitly for the education industry. For more
information, visit Ambow's corporate website at
https://www.ambow.com/.
Safe Harbor Statement
This press release contains statements of a forward-looking
nature. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. You can identify these forward-looking statements by
terminology such as "will," "expects," "believes," "anticipates,"
"intends," "estimates" and similar statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about Ambow and the industry. All
information provided in this press release is as of the date
hereof, and Ambow undertakes no obligation to update any
forward-looking statements to reflect subsequent occurring events
or circumstances, or changes in its expectations, except as may be
required by law. Although Ambow believes that the expectations
expressed in these forward-looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
For more information, please contact:
Ambow Education
Holding Ltd.
E-mail: ir@ambow.com
or
Piacente Financial Communications
Tel: +1 212 481
2050
E-mail: ambow@tpg-ir.com
|
AMBOW EDUCATION
HOLDING LTD.
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(All amounts in
thousands, except for share and per share data)
|
|
|
|
|
|
|
|
As of December
31,
|
|
As of December
31,
|
|
|
2022
|
|
2023
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$3,308
|
|
$4,834
|
|
Restricted
cash
|
|
4,362
|
|
5,221
|
|
Accounts receivable,
net
|
|
1,983
|
|
2,280
|
|
Prepaid and other
current assets
|
|
6,171
|
|
178
|
|
Total current
assets
|
|
15,824
|
|
12,513
|
|
Non-current
assets:
|
|
|
|
|
|
Property and equipment,
net
|
|
276
|
|
6
|
|
Intangible assets,
net
|
|
537
|
|
522
|
|
Operating lease
right-of-use asset
|
|
6,909
|
|
4,896
|
|
Other non-current
assets, net
|
|
1,970
|
|
2,629
|
|
Total non-current
assets
|
|
9,692
|
|
8,053
|
|
|
|
|
|
|
Total
assets
|
|
$25,516
|
|
$20,566
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
|
3,029
|
|
3,939
|
|
Accounts
payable
|
|
2,393
|
|
1,386
|
|
Accrued and other
liabilities
|
|
3,737
|
|
1,468
|
|
Income taxes payable,
current
|
|
528
|
|
510
|
|
Operating lease
liability, current
|
|
2,218
|
|
2,486
|
|
Total current
liabilities
|
|
11,905
|
|
9,789
|
|
Non-current
liabilities:
|
|
|
|
|
|
Operating lease
liability, non-current
|
|
5,744
|
|
4,349
|
|
Total non-current
liabilities
|
|
5,744
|
|
4,349
|
|
|
|
|
|
|
Total
liabilities
|
|
$17,649
|
|
$14,138
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Preferred
shares
|
|
|
|
|
|
(US$ 0.003 par value;
1,666,667 shares authorized, nil issued and
outstanding as of December 31, 2022 and 2023)
|
|
|
|
-
|
|
Class A Ordinary
shares
|
|
|
|
|
|
(US$ 0.003 par value;
66,666,667 and 66,666,667 shares authorized;
47,419,109 and 52,419,109 shares issued and outstanding as of
December 31, 2022 and 2023, respectively)
|
|
131
|
|
146
|
|
Class C Ordinary
shares
|
|
|
|
|
|
(US$ 0.003 par value;
8,333,333 and 8,333,333 shares authorized;
4,708,415 and 4,708,415 shares issued and outstanding as of
December 31, 2022 and 2023, respectively)
|
|
13
|
|
13
|
|
Additional paid-in
capital
|
|
515,182
|
|
517,031
|
|
Accumulated
deficit
|
|
(507,459)
|
|
(510,634)
|
|
Accumulated other
comprehensive income
|
|
-
|
|
(128)
|
|
Total
equity
|
|
7,867
|
|
6,428
|
|
Total liabilities
and equity
|
|
$25,516
|
|
$20,566
|
|
AMBOW EDUCATION
HOLDING LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME
|
|
(All amounts in
thousands, except for share and per share data)
|
|
|
For the three months
ended
September 30,
|
|
For the three months
ended
December 31,
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
|
|
|
|
|
|
|
|
NET
REVENUES
|
|
|
|
|
|
|
|
|
Educational
program and services
|
$
2,351
|
|
$
671
|
|
$
3,274
|
|
$
2,395
|
|
COST OF
REVENUES
|
|
|
|
|
|
|
|
|
Educational
program and services
|
(4,113)
|
|
(1,400)
|
|
(3,941)
|
|
(1,187)
|
|
|
|
|
|
|
|
|
|
GROSS (LOSS)
PROFIT
|
(1,762)
|
|
(729)
|
|
(667)
|
|
1,208
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling and
marketing
|
(283)
|
|
(330)
|
|
(95)
|
|
(296)
|
|
General and
administrative
|
(1,320)
|
|
(903)
|
|
(747)
|
|
(912)
|
|
Research and
development
|
-
|
|
(242)
|
|
-
|
|
(242)
|
|
Impairment
loss
|
(637)
|
|
-
|
|
-
|
|
-
|
|
Total operating
expenses
|
(2,240)
|
|
(1,475)
|
|
(842)
|
|
(1,450)
|
|
|
|
|
|
|
|
|
|
OPERATING
LOSS
|
(4,002)
|
|
(2,204)
|
|
(1,509)
|
|
(242)
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
|
|
|
|
Interest (expenses)
income
|
(34)
|
|
(39)
|
|
1
|
|
15
|
|
Foreign exchange gain
(loss), net
|
-
|
|
21
|
|
-
|
|
(12)
|
|
Other (expenses)
income, net
|
(33)
|
|
(12)
|
|
661
|
|
94
|
|
Gain on disposal of
assets
|
-
|
|
-
|
|
-
|
|
1,400
|
|
Total other (expenses)
income
|
(67)
|
|
(30)
|
|
662
|
|
1,497
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE
INCOME TAX
AND NON-CONTROLLING INTEREST
|
(4,069)
|
|
(2,234)
|
|
(847)
|
|
1,255
|
|
Income tax benefit
(expenses)
|
1
|
|
(1)
|
|
(33)
|
|
-
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
CONTINUING
OPERATIONS
|
(4,068)
|
|
(2,235)
|
|
(880)
|
|
1,255
|
|
(Loss) Income from and
on sale of discontinued
operations, net of income tax
|
(923)
|
|
-
|
|
4,794
|
|
-
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
$
(4,991)
|
|
$
(2,235)
|
|
$
3,914
|
|
$
1,255
|
|
Less: Net loss
attributable to noncontrolling
interests from continuing operations
|
-
|
|
-
|
|
-
|
|
-
|
|
Less: Net loss
attributable to noncontrolling
interests from discontinued operations
|
(35)
|
|
-
|
|
(29)
|
|
-
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS FROM
CONTINUING OPERATIONS
|
(4,068)
|
|
(2,235)
|
|
(880)
|
|
1,255
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS FROM
DISCONTINUED OPERATIONS
|
(888)
|
|
-
|
|
4,823
|
|
-
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
ATTRIBUTABLE TO
ORDINARY SHAREHOLDERS
|
$
(4,956)
|
|
$
(2,235)
|
|
$
3,943
|
|
$
1,255
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
(LOSS) INCOME,
NET OF TAX
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(278)
|
|
-
|
|
104
|
|
-
|
|
Other comprehensive
(loss) income
|
(278)
|
|
-
|
|
104
|
|
-
|
|
|
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE
(LOSS) INCOME
|
(5,269)
|
|
(2,235)
|
|
4,018
|
|
1,255
|
|
|
|
|
|
|
|
|
|
Net (loss) income from
continuing operations per
share – basic and diluted
|
$
(0.08)
|
|
$
(0.04)
|
|
$
(0.02)
|
|
$
0.02
|
|
Net (loss) income from
discontinued operations per
share – basic and diluted
|
$
(0.02)
|
|
-
|
|
$
0.09
|
|
-
|
|
Net (loss) income from
continuing operations per
ADS – basic and diluted
|
$
(1.60)
|
|
$
(0.80)
|
|
$
(0.40)
|
|
$
0.40
|
|
Net (loss) income from
discontinued operations per
ADS – basic and diluted
|
$
(0.40)
|
|
-
|
|
$
1.80
|
|
-
|
|
|
|
|
|
|
|
|
|
Weighted average shares
used in calculating basic
and diluted net (loss) income per share
|
52,110,948
|
|
57,127,524
|
|
52,127,524
|
|
57,127,524
|
|
AMBOW EDUCATION
HOLDING LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
(All amounts in
thousands, except for share and per share data)
|
|
For the years ended
December 31,
|
|
2022
|
|
2023
|
|
|
|
|
|
NET
REVENUES
|
|
|
|
|
Educational
program and services
|
$
14,840
|
|
$
9,163
|
|
COST OF
REVENUES
|
|
|
|
|
Educational
program and services
|
(14,556)
|
|
(6,669)
|
|
|
|
|
|
GROSS
PROFIT
|
284
|
|
2,494
|
|
Operating
expenses:
|
|
|
|
|
Selling and
marketing
|
(1,487)
|
|
(1,051)
|
|
General and
administrative
|
(7,628)
|
|
(5,264)
|
|
Research and
development
|
-
|
|
(484)
|
|
Impairment
loss
|
(657)
|
|
-
|
|
Total operating
expenses
|
(9,772)
|
|
(6,799)
|
|
|
|
|
|
OPERATING
LOSS
|
(9,488)
|
|
(4,305)
|
|
|
|
|
|
OTHER INCOME
(EXPENSES)
|
|
|
|
|
Interest
expenses
|
(101)
|
|
(57)
|
|
Other income
(expenses), net
|
500
|
|
(199)
|
|
Loss on disposal of
subsidiaries
|
(163)
|
|
-
|
|
Gain on disposal of
assets
|
-
|
|
1,400
|
|
Total other
income
|
236
|
|
1,144
|
|
|
|
|
|
LOSS BEFORE INCOME
TAX AND NON-CONTROLLING
INTEREST
|
(9,252)
|
|
(3,161)
|
|
Income tax
expenses
|
-
|
|
(14)
|
|
|
|
|
|
LOSS FROM CONTINUING
OPERATIONS
|
(9,252)
|
|
(3,175)
|
|
Loss from and on sale
of discontinued operations, net of income tax
|
(5,056)
|
|
-
|
|
|
|
|
|
NET
LOSS
|
$
(14,308)
|
|
$
(3,175)
|
|
Less: Net loss
attributable to noncontrolling interests from continuing
operations
|
-
|
|
-
|
|
Less: Net loss
attributable to noncontrolling interests from
discontinued operations
|
(235)
|
|
-
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS FROM CONTINUING OPERATIONS
|
(9,252)
|
|
(3,175)
|
|
NET LOSS
ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS FROM DISCONTINUED OPERATIONS
|
(4,821)
|
|
-
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS
|
(14,073)
|
|
(3,175)
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS, NET OF TAX
|
|
|
|
|
Foreign currency
translation adjustments
|
(339)
|
|
-
|
|
Other comprehensive
loss
|
(339)
|
|
-
|
|
|
|
|
|
TOTAL COMPREHENSIVE
LOSS
|
(14,647)
|
|
(3,175)
|
|
|
|
|
|
Net loss from
continuing operations per share – basic and diluted
|
$
(0.19)
|
|
$
(0.06)
|
|
Net loss from
discontinued operations per share – basic and diluted
|
$
(0.10)
|
|
-
|
|
Net loss from
continuing operations per ADS – basic and diluted
|
$
(3.80)
|
|
$
(1.20)
|
|
Net loss from
discontinued operations per ADS – basic and diluted
|
$
(2.00)
|
|
-
|
|
|
|
|
|
Weighted average shares
used in calculating basic and diluted net
(loss) income per share
|
49,458,266
|
|
56,333,003
|
View original
content:https://www.prnewswire.com/news-releases/ambow-education-announces-second-half-and-full-year-2023-financial-results-302128013.html
SOURCE Ambow Education Holding Ltd.
