Online post-secondary and professional education company Sunlands Online Education has reported a second-quarter net loss of ¥126.2 million (£13.9 million), compared to a net loss of ¥12.8 million reported for Q2 2019.
Net revenue for the quarter was ¥512.5 million, down from ¥ 552.7 million reported for the second quarter of 2019.
The Beijing-based company also reported its results for the first six months of 2020. Its net loss for the period was ¥191.7 million, compared to a net loss of ¥125.8 million reported for the first six months of 2019. Revenue for the period was ¥1.08 billion, down from ¥1.12 million reported for the first half of last year.
Sunlands Technology Group chief executive Tongbo Liu said: “While the Covid-19 pandemic in China was effectively constrained during the second quarter, due to the varying work resumption requirements in different regions, the average resumption rate of our Wuhan campus and Beijing headquarters, was about 80%. Against this backdrop, we are pleased with maintaining steady growth in the second quarter, thanks to our self-developed collaborative online office system, efficient operation management and rigorous execution. Our net revenues in the second quarter of 2020 reached ¥512.5 million, in line with our guidance. In addition, our gross billings achieved year-over-year growth for the first time in the past five quarters, increasing by 21.3% to ¥531.5 million compared with the prior-year period, thanks to our strategy to diversify product and service offerings, continuous expansion in training course categories, improved efficiency of our sales team, as well as the tremendous efforts from all of our employees.
“In response to the growing number of individuals seeking postgraduate degrees, we have focused our efforts on strengthening our master’s degree-oriented programmes in order to capture the growth opportunities, in addition to increasing our students’ willingness to pay for incremental courses and maximise their overall engagement. Gross billings of master’s degree-oriented programmes for the second quarter of 2020 reached a new high of ¥135.2 million, up 58.7% year-over-year and accounting for 25.4% of total gross billings. At the same time, based on student demands and new market trends, Sunlands is also actively expanding our course offerings in multiple categories, including professional certifications and trainings related to new occupations, as well as new skills and hobbies training catering to person’s diverse interests. Also in the quarter, our STE programmes have maintained a solid market position and market share. Looking ahead, we are confident to maintain the market-leading position of our existing service categories and continuously improve the learning effectiveness of our students through technical and operational advancement. We are also optimistic to capture the market opportunities and create more cross-selling possibilities as we develop new contents and firmly execute on our nimble and efficient student acquisition strategy.”
Date published: 3 September 2020