Sunlands Technology Group (STG) is up 3.99% in the pre-market trading session at the price of $0.60 after the announcement of second quarter 2021 financial results.
Second Quarter 2021 Financial Results
On 18th August 2021, STG published its unaudited financial results for the second quarter ended 30th June 2021. Net revenues were RMB629.5 million (US$97.5 million), indicating a 22.8% rise year-over-year. Gross profit was RMB532.2 million (US$82.4 million), denoting a 28.9% gain year-over-year. Net income was RMB22.1 million (US$3.4 million) in the second quarter of 2021. A net loss of RMB126.1 million was recorded in the same quarter of 2020. New student registrations were 86,602, representing a 4.8% rise year-over-year.
CEO Mr. Tongbo Liu remarked that they were happy with their second quarter 2021 performance. Their net revenue rose 22.8% year-over-year to RMB629.5 million. New enrollments remained comparatively steady at 86,602. They had achieved a record net profit of RMB22.1 million, propelled by their constant cost reduction and business adjustment efforts, he added.
First Quarter 2021 Financial Results
On 25th May 2021, STG declared its unaudited financial results for the first quarter ended 31st March 2021. Net revenues were RMB694.3 million (US$106.0 million), denoting a 22.9% gain year-over-year. Gross profit was RMB587.9 million (US$89.7 million), a 25.6% rise year-over-year. Net loss was RMB53.3 million (US$8.1 million), depicting a 18.7% drop year-over-year. New student enrollments were 145,525, representing a 107.6% increase YoY.
CEO Mr. Tongbo Liu commented that they were motivated by their first quarter operational and financial metrics. Their net revenues improved 22.9% year-over-year to RMB694.3 million in the Q1 of 2021. The new registrations climbed to 145,525, a 107.6% year-on-year increase. This incredible performance had driven by their continued struggles to broaden product offerings, boost brand awareness and improve student satisfaction, he added.
STG Announced Changes in Board of Directors
On 25th March 2021, STG revealed the appointment of Ms. Jing Gao to the company’s Board of Directors. Mr. Xiaochuan Wang had given resignation from the position of an independent director and a member of the audit committee. Mr. Zheng Du and Mr. Gaoneng Ji had also submitted their resignation as a member of the Board. All changes in board members became effective from 24th March 2021. Ms. Gao has near 16 years of work experience in his field. He remained in different managerial positions in various departments of Sunland. Moreover, he has strong and keen insights into the Chinese adult continuing education market and in-depth experience in team management.
