UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13a-16 OR
15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of September 2024
Commission File Number: 001-39559
Lixiang Education Holding Co., Ltd.
(Exact name of registrant as specified in its charter)
No. 818 Hua Yuan Street
Liandu District, Lishui City, Zhejiang Province, 323000
People’s Republic of China
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Lixiang Education Announces Unaudited Half Year 2024 Financial Results
Lishui, China, September 27, 2024 — Lixiang Education Holding Co., Ltd. (NASDAQ: LXEH) (the “Company”), a prestigious international and vocational education service provider in China, today announced its unaudited financial results for the first half year of 2024.
First Half Year 2024 Financial Results
Net Revenues
Net revenues for the six months ended June 30, 2024 were RMB15.3 million (US$2.1 million), compared with RMB25.2 million for the same period ended June 30, 2023.
Tuition and accommodation income
For the vocational education, revenue contribution for the period was RMB8.1 million, primarily from Langfang School, a decrease of RMB4.6 million by 36.4% compared with RMB12.7 million for the same period ended June 30, 2023, primarily due to the numbers of graduates of 751 exceeded the enrolment of new students of 163.
For the high school education, revenue contribution for the period was RMB1.5 million from Lishui International School, a decrease of RMB6.5 million by 80.9% compared with RMB8.0 million for the same period ended June 30, 2023 from Qingtian International School, as we disposed Qingtian International School as of December 31, 2023.
Sales of meal, uniforms and learning materials
Revenue contribution for the period was RMB1.0 million, compared with RMB1.7 million for the same period in 2023 as Liandu WFOE ceased to provide meal and uniforms to students since 2024.
Others
Other revenue of RMB4.7 million primary consisted of course design, development and training in the first half year of 2024 of RMB2.8 million, consulting services of oversea students’ enrollment of RMB0.6 million, comprehensive service for flexible employment of RMB0.5 million, rental income of RMB0.4 million from third parties and RMB0.4 million from our related party for the six months ended June 30, 2024.
Other revenue of RMB2.8 million primary consisted of consulting services of oversea students’ enrollment in the first half year of 2023 of RMB1.3 million, rental income of RMB0.7 million from third parties and RMB0.4 million from our related party for the six months ended June 30, 2023.
Cost of Revenues
Cost of revenues for the six months ended June 30, 2024 was RMB15.1 million (US$2.1 million), decreased by RMB4.7 million from RMB19.8 million for the same period ended June 30, 2023. The decrease in cost of revenues was mainly included: (i) the decrease salary, bonus, social security and welfare benefits of teachers by RMB5.9 million, primary attribute to the disposal of Qingtian International School, and partially offset by newly established Lishui International School of RMB1.0 million; (ii) the decrease rental cost and other utilities charge by RMB1.2 million; and partially offset by the increase of RMB3.0 million of property taxes paid this year.
Gross Profit
As a result of the foregoing, gross profit for the first half year of 2024 was RMB0.3 million, decreased significantly compared with the gross profit of RMB5.4 million for the same period ended June 30, 2023.
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Operating Expenses
Total operating expenses for the first half year of 2024 were RMB9.7 million (US$1.3 million), compared with RMB11.7 million for the same period ended June 30, 2023. The decrease was mainly due to the decrease of general and administrative expenses.
General and administrative expense for the first half year of 2024 was RMB9.7 million (US$1.3 million), decreased by RMB2.0 million compared with that for the same period of 2023. The decrease general and administrative expense was mainly included: (i) the reversal of credit losses from Beijing S.K. of RMB1.2 million due to subsequent collection; (ii) the decrease of professional services fee of RMB1.5 million.
Sales and marketing expenses for the first half year of 2024 was RMB7.0 thousand (US$1.0 thousand), compared with RMB20.0 thousand for the same period ended June 30, 2023.
Other Income, net
Total net other income for the first half year of 2024 was RMB1.9 million (US$0.3 million), compared with RMB1.1 million for the same period ended June 30, 2023. The increase was due to the increase grants for needy students of RMB1.9 million received by Langfang School and partially offset by a decrease of government grants of RMB1.1 million received by Qingtian International School to support the development of school.
Loss from discontinued operation, net of tax
Loss from discontinued operation, net of tax amounted to RMB0.2 million for the first half year of 2023. In November 2023, the Group disposed Chuangmei Weiye, which had a major effect on operations and financial results of the Group and therefore resulted in a discontinued operation.
Net Loss
Net loss for the first half year of 2024 was RMB8.6 million (US$1.2 million), compared with net loss of RMB8.2 million for the same period ended June 30, 2023.
Net Loss Attributed to Ordinary Shares
Basic and diluted net loss from continuing operation per share attributable to ordinary shareholders of the Company from for the first half year of 2024 were RMB0.07, compared with basic and diluted net loss from continuing operation per share of RMB0.12 for the same period ended June 30, 2023.
Basic and diluted net loss from continuing operation per ADS attributable to ADS holders of the Company for the first half year of 2024 were RMB0.74, compared with basic and diluted net loss from continuing operation per ADS of RMB1.21 for the same period ended June 30, 2023.
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Cash and Working Capital
As of June 30, 2024, the Company had total cash of RMB230.6 million (US$31.7 million), an increase of RMB3.6 million from RMB227.0 million as of December 31, 2023. The increase was mainly due to the increase of amounts due to Affected Entity and the decrease of prepayments and other current assets, and partially offset by the repayments of borrowings with bank.
Contingency
On April 19, 2024, Langfang School received the final judgment in relation to its contractual dispute against Beijing S.K.’s affiliates that Langfang would not need to pay rental expenses for the period from January 1, 2022 to August 31, 2023 or the period after September 1, 2023 to Hebei Technical College of Petroleum Profession, but should vacate the premises in relation to the dispute by July 30, 2024.
On July 31, 2024, Langfang School entered into cooperation contract with Hebei Technical College of Petroleum Profession, to lease the premises from July 31, 2024 to July 30, 2030.
Exchange Rate Information
This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars are made at a rate of RMB7.2672 to US$1.00, the rate in effect as of June 30, 2024 published by the Federal Reserve Board.
Safe Harbor Statement
This announcement 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. The Company 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 announcements 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 the Company’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: the Company’s strategies, future business development, and financial condition and results of operations; the expected growth of the Chinese private education market; Chinese governmental policies relating to private educational services and providers of such services; the Company’s ability to maintain and enhance its brand. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this announcement is as of the date of this announcement, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
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Lixiang Education Holding Co., Ltd.
CONSOLIDATED BALANCE SHEETS
(RMB, except share data and per share data, or otherwise noted)
| As of | ||||||||||||
| December 31, 2023 | June 30, 2024 |
|||||||||||
| RMB (Audited) |
RMB (Unaudited) |
US$ (Unaudited) |
||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash | 227,040,251 | 230,566,089 | 31,726,950 | |||||||||
| Inventories | 886,895 | - | - | |||||||||
| Prepayments and other current assets, net | 6,193,544 | 4,460,460 | 613,780 | |||||||||
| Accounts receivable | 9,380 | 24,347 | 3,350 | |||||||||
| Amounts due from related party | 10,750,000 | 11,127,143 | 1,531,146 | |||||||||
| Total current assets | 244,880,070 | 246,178,039 | 33,875,226 | |||||||||
| Non-current assets: | ||||||||||||
| Property and equipment, net | 151,549,586 | 149,886,276 | 20,625,038 | |||||||||
| Land use rights, net | 34,873,935 | 34,400,586 | 4,733,678 | |||||||||
| Intangible assets, net | 196,476 | 180,082 | 24,780 | |||||||||
| Right-of-use assets | 2,471,003 | 1,469,170 | 202,165 | |||||||||
| Total non-current assets | 189,091,000 | 185,936,114 | 25,585,661 | |||||||||
| TOTAL ASSETS | 433,971,070 | 432,114,153 | 59,460,887 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | 74,000,000 | 64,000,000 | 8,806,693 | |||||||||
| Accounts payable | 1,504,098 | 524,024 | 72,108 | |||||||||
| Deferred revenue, current | 6,513,072 | 4,666,625 | 642,149 | |||||||||
| Salary and welfare payable | 2,454,440 | 2,061,531 | 283,676 | |||||||||
| Amounts due to a related party | 8,000,000 | 8,000,000 | 1,100,837 | |||||||||
| Taxes payable | 831,509 | 888,375 | 122,244 | |||||||||
| Income tax payable | 219,832 | 290,424 | 39,964 | |||||||||
| Accrued liabilities and other current liabilities | 5,947,842 | 5,171,135 | 711,572 | |||||||||
| Long-term loans and borrowings, current | 1,250,000 | - | - | |||||||||
| Operating lease liabilities, current | 2,471,003 | 1,100,440 | 151,426 | |||||||||
| Total current liabilities | 103,191,796 | 86,702,554 | 11,930,669 | |||||||||
| Non-current liabilities: | ||||||||||||
| Amounts due to Affected Entity, non-current | 173,680,363 | 173,415,763 | 23,862,803 | |||||||||
| Operating lease liabilities, non-current | - | 244,877 | 33,696 | |||||||||
| Other non-current liabilities | - | 1,000,000 | 137,605 | |||||||||
| Total non-current liabilities | 173,680,363 | 174,660,640 | 24,034,104 | |||||||||
| Total liabilities | 276,872,159 | 261,363,194 | 35,964,773 | |||||||||
| Commitments and contingencies | ||||||||||||
| Shareholders’ equity: | ||||||||||||
| Ordinary shares (USD$0.0001 par value; 500,000,000 shares authorized, 116,667,000 and 116,667,000 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively) | 81,092 | 81,092 | 11,159 | |||||||||
| Additional paid-in capital | 333,552,470 | 354,501,012 | 48,780,963 | |||||||||
| Statutory reserves | 60,610,543 | 60,756,708 | 8,360,401 | |||||||||
| Accumulated other comprehensive income | 8,485,041 | 10,078,934 | 1,386,907 | |||||||||
| Accumulated deficit | (245,319,648 | ) | (254,025,834 | ) | (34,955,118 | ) | ||||||
| Total Lixiang Education Holding Co., Ltd. shareholders’ equity | 157,409,498 | 171,391,912 | 23,584,312 | |||||||||
| Non-controlling interests | (310,587 | ) | (640,953 | ) | (88,198 | ) | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 157,098,911 | 170,750,959 | 23,496,114 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 433,971,070 | 432,114,153 | 59,460,887 | |||||||||
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Lixiang Education Holding Co., Ltd.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(RMB, except share data and per share data, or otherwise noted)
| For the six months ended June 30, | ||||||||||||
| 2023 | 2024 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Net revenues: | ||||||||||||
| Revenue from third parties | 24,848,465 | 14,937,481 | 2,055,466 | |||||||||
| Revenue from related party | 377,143 | 377,143 | 51,897 | |||||||||
| Total net revenues | 25,225,608 | 15,314,624 | 2,107,363 | |||||||||
| Cost of revenues | (19,828,324 | ) | (15,050,531 | ) | (2,071,022 | ) | ||||||
| Gross profit | 5,397,284 | 264,093 | 36,341 | |||||||||
| Operating expenses: | ||||||||||||
| General and administrative expenses | (11,643,834 | ) | (9,682,494 | ) | (1,332,356 | ) | ||||||
| Selling and marketing expenses | (19,973 | ) | (6,839 | ) | (941 | ) | ||||||
| Total operating expenses | (11,663,807 | ) | (9,689,333 | ) | (1,333,297 | ) | ||||||
| Operating loss | (6,266,523 | ) | (9,425,240 | ) | (1,296,956 | ) | ||||||
| Interest expense | (2,977,551 | ) | (1,273,223 | ) | (175,201 | ) | ||||||
| Interest income | 85,274 | 238,648 | 32,839 | |||||||||
| Other income, net | 1,114,214 | 1,902,355 | 261,773 | |||||||||
| Loss before income tax expense | (8,044,586 | ) | (8,557,460 | ) | (1,177,545 | ) | ||||||
| Income tax benefit/(expenses) | 4,175 | (76,929 | ) | (10,586 | ) | |||||||
| Loss from continuing operations, net of tax | (8,040,411 | ) | (8,634,389 | ) | (1,188,131 | ) | ||||||
| Loss from discontinued operation, net of tax | (209,311 | ) | - | - | ||||||||
| Net loss | (8,249,722 | ) | (8,634,389 | ) | (1,188,131 | ) | ||||||
| Net loss attributable to Lixiang Education Holding Co., Ltd. shareholders | (8,091,960 | ) | (8,560,021 | ) | (1,177,898 | ) | ||||||
| Net loss attributable to non-controlling interests | (157,762 | ) | (74,368 | ) | (10,233 | ) | ||||||
| Other comprehensive income: | ||||||||||||
| Foreign currency translation adjustment, net of nil tax | 7,954,537 | 1,593,893 | 219,327 | |||||||||
| Comprehensive loss | (295,185 | ) | (7,040,496 | ) | (968,804 | ) | ||||||
| Total comprehensive loss attributable to non-controlling interests | (157,762 | ) | (74,368 | ) | (10,233 | ) | ||||||
| Total comprehensive loss attributable to Lixiang Education Holding Co., Ltd. shareholders | (137,423 | ) | (6,966,128 | ) | (958,571 | ) | ||||||
| Loss per ordinary share attributable to Lixiang Education Holding Co., Ltd. shareholders from continuing operations | (0.12 | ) | (0.07 | ) | (0.01 | ) | ||||||
| —Basic and diluted | ||||||||||||
| Loss per ordinary share attributable to Lixiang Education Holding Co., Ltd. shareholders from discontinued operation | (0.00 | ) | - | - | ||||||||
| —Basic and diluted | ||||||||||||
| Weighted average number of ordinary shares outstanding | 66,667,000 | 116,667,000 | 116,667,000 | |||||||||
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Lixiang Education Holding Co., Ltd. | ||
| By: | /s/ Fen Ye | |
| Fen Ye | ||
| Chairlady of Board of Directors | ||
| Date: September 27, 2024 | ||
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