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QUANTASING GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except for share and per share data) As of June 30,2024 December 31,2024 December 31,2024 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents779,931 1,094,762 149,982Restricted cash160 1,174 161Short-term investments246,195 117,285 16,068Accounts receivable, net16,676 16,403 2,247Amounts due from related parties4,488 - -Inventory, net6,345 13,398 1,836Prepayments and other current assets275,549 157,802 21,620Total current assets 1,329,344 1,400,824 191,914 Non-current assets: Property and equipment, net6,569 5,032 689Long-term investments9,010 35,776 4,901Intangible assets, net- 59 8Operating lease right-of-use assets58,889 37,205 5,097Deferred tax assets847 2,014 276Other non-current assets21,360 6,102 836Total non-current assets96,675 86,188 11,807TOTAL ASSETS1,426,019 1,487,012 203,721 LIABILITIES Current liabilities: Accounts payables62,066 46,301 6,343Accrued expenses and other current liabilities190,508 197,866 27,108Income tax payable20,399 51,966 7,119Contract liabilities, current portion385,227 304,788 41,756Advance from customers162,257 122,815 16,826Operating lease liabilities, current portion49,099 45,021 6,168Total current liabilities 869,556 768,757 105,320 Non-current liabilities: Contract liabilities, non-current portion11,365 28,057 3,844Operating lease liabilities, non-current portion16,989 2,443 335Deferred tax liabilities11,625 23,765 3,256Total non-current liabilities39,979 54,265 7,435TOTAL LIABILITIES909,535 823,022 112,755 QUANTASING GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - continued(Amounts in thousands, except for share and per share data) As of June 30,2024 December 31,2024 December 31,2024 RMB RMB US$ SHAREHOLDERS’ EQUITY Class A ordinary shares81 81 11 Class B ordinary shares34 34 5 Treasury stock(109,257) (46,363) (6,352)Additional paid-in capital1,192,474 1,067,975 146,312 Accumulated other comprehensive income17,313 18,780 2,573 Accumulative deficit(584,161) (376,717) (51,610)TOTAL QUANTASING GROUP LIMITED SHAREHOLDERS’ EQUITY516,484 663,790 90,939 Non-controlling interests- 200 27 TOTAL SHAREHOLDERS’ EQUITY516,484 663,990 90,966 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY1,426,019 1,487,012 203,721 QUANTASING GROUP LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Amounts in thousands, except for shares and per share data) For the Three Months Ended December 31, For the Six Months Ended December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$ Revenues980,542 726,647 99,550 1,849,678 1,537,051 210,575 Cost of revenues(145,018) (122,512) (16,784) (263,210) (256,960) (35,203) Gross Profit 835,524 604,135 82,766 1,586,468 1,280,091 175,372 Operating expenses: Sales and marketing expenses(657,112) (407,022) (55,762) (1,277,264) (922,031) (126,318)Research and development expenses(41,015) (28,354) (3,884) (84,815) (56,434) (7,731)General and administrative expenses(35,059) (30,524) (4,182) (77,821) (61,145) (8,377)Total operating expenses(733,186) (465,900) (63,828) (1,439,900) (1,039,610) (142,426) Income from operations102,338 138,235 18,938 146,568 240,481 32,946 Other income: Interest income2,409 1,221 167 5,856 3,160 433 Others, net2,221 6,283 861 14,478 16,018 2,194 Income before income tax106,968 145,739 19,966 166,902 259,659 35,573 Income tax benefit/(expense)642 (18,983) (2,601) 7,388 (52,215) (7,153) Net income 107,610 126,756 17,365 174,290 207,444 28,420 Net loss attributable to noncontrolling interests- - - - - - Net income attributable to QuantaSing Group Limited107,610 126,756 17,365 174,290 207,444 28,420 Other comprehensive (loss)/income Foreign currency translation adjustments, net of nil tax(3,372) 5,013 687 (5,377) 1,467 201 Total other comprehensive (loss)/income(3,372) 5,013 687 (5,377) 1,467 201 Total comprehensive income104,238 131,769 18,052 168,913 208,911 28,621 Total comprehensive loss attributable to noncontrolling interests- - - - - - Comprehensive income attributable to QuantaSing Group Limited104,238 131,769 18,052 168,913 208,911 28,621 Net income per ordinary share - Basic0.65 0.78 0.11 1.04 1.30 0.18 - Diluted0.64 0.77 0.11 1.02 1.27 0.17 Weighted average number of ordinary shares used in computing net income per share - Basic165,369,914 162,250,442 162,250,442 167,213,449 159,347,748 159,347,748 - Diluted167,356,510 165,374,240 165,374,240 171,180,058 163,341,734 163,341,734 Share-based compensation expenses included in Cost of revenues(3,289) (1,480) (203) (7,067) (3,783) (518)Sales and marketing expenses15,946 (859) (118) 11,457 (898) (123)Research and development expenses(1,402) (409) (56) (7,012) (2,307) (316)General and administrative expenses(7,513) (2,470) (338) (20,922) (5,502) (754) QUANTASING GROUP LIMITEDUNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS(Amounts in thousands, except for shares and per share data) The following table below sets forth a reconciliation of revenues to gross billings for the periods indicated: For the Three MonthsEnded December 31, For the Six MonthsEnded December 31, 2023 2024 2024 2023 2024 2024 RMB RMB US$ RMB RMB US$ Revenues of individual online learning services:873,551 601,293 82,377 1,629,461 1,310,305 179,510 Add: value-added tax47,100 33,359 4,570 94,679 74,050 10,145 Add: ending deferred revenues(1)643,929 440,632 60,366 643,929 440,632 60,366 Less: beginning deferred revenues(1)(619,954) (529,054) (72,480) (661,360) (565,030) (77,409) Gross billings of individual online learning services944,626 546,230 74,833 1,706,709 1,259,957 172,612 (1) Deferred revenues include contract liabilities, advance from customers, and refund liability of individual online learning services included in "accrued expenses and other current liabilities”.
For a reconciliation of net income to adjusted net income, see the "Non-GAAP Financial Measures” section and the table captioned "QuantaSing Group Limited Unaudited Reconciliation of GAAP and Non-GAAP Results” below.3 Effective from the fourth quarter of FY 2024, the Company has introduced "Revenues from Consumer Business” as a separate line item.
With our cash and cash equivalents, restricted cash and short-term investments of RMB1,213.2 million, we have the flexibility to carefully evaluate strategic opportunities as we navigate this transitional phase.” Financial Results for the Second Quarter of FY 2025 Revenues Revenues were RMB726.6 million (US$99.6 million) in the second quarter of FY 2025, compared to RMB980.5 million in the second quarter of FY 2024.
