Beijing-based professional education services company Tarena International has reported a net loss of ¥94.7 million (£11.1 million) for the third quarter of 2021, compared to a net loss of ¥63.9 million reported for the second quarter of 2020. Net revenue for the quarter was ¥615.2 million, compared to ¥620.8 million reported for Q3 2020.
The company also reported results for the first nine months of 2021. Its net loss was ¥293.2 million, compared to an operating loss of ¥676.5 million reported for the first nine months of 2020. Net revenue for the nine-month period was ¥1.73 billion, up from ¥1.25 billion reported for the first nine months of last year.
Tarena chief executive Ying Sun said: “In the third quarter of 2021, there were adverse climate and weather conditions affecting our business, such as flooding and typhoon incidents, as well as Covid-19 cases sporadically occurred in some areas of China. In response to these issues, we have implemented and executed appropriate measures, including but not limited to transferring offline, on-site students to online lessons, to deal with these types of difficulties.
“Our total net revenues decreased by 0.9% to ¥615.2 million in the third quarter of 2021, from ¥620.8 million in the same period of last year. Net revenues from our childhood and adolescent quality education business, which represent about 54.1% of our total net revenues, increased by 14.8% to ¥332.6 million in the third quarter of 2021, from ¥289.6 million in the same period of 2020. Student enrolments of childhood and adolescent quality education increased by about 19.6% to 146,900 in the third quarter of 2021, from 122,800 in the same period of last year. Net revenues from the adult professional education business, which represent about 45.9% of our total net revenue decreased by 14.7% to ¥282.6 million in the third quarter of 2021, from ¥331.2 million in the same period last year. Due to the decrease in net revenue from adult profession education, our gross profit margin decreased by 5.5 percentage points to 50.9% in the third quarter of 2021 from 56.4% in the same period of 2020.
“With the implementation of the national policy to ease the burden of excessive homework and off-campus tutoring for students in compulsory education, we understood that, instead of subject-based curricula, only quality education, which emphasises and provokes the growth of children and adolescent, may receive long-term supports from the government. We shall definitely follow and comply with all the statutory required policies and be a staunch force in providing quality-oriented education in science and information technology. We are so delighted to note that, according to those policies recently announced and published by the Chinese government, adult professional education is highly encouraged and promoted. We will continue to upgrade the quality of our comprehensive products and services and uplift our operational efficiencies.”
Date published: 29 November 2021