GOTU (GSX) Revenue Increases by 237% in First Financials after Name Change

Consumer Discretionary Author: 石伟 Apr 27, 2021 11:25 AM (GMT+8)

Affected by the good news, the company's shares rose sharply 14.67% to USD 31.04 at the close of the day. 

Who do you want to learn from

  • On April 26 EST, GOTU (formerly known as GSX) released its audited performance report for 2020, showing annual revenue at CNY 7.125 billion.

  • The net loss was CNY 1.39 billion, compared with a profit of CNY 227 million in 2019.

  • The operating cash flow of GOTU continued to be positive, reaching CNY 603 million.

  • The regular-price customers improved by 168.4% to 5.87 million.

  • K12 fee-paying person-time surged 177.3% to 5.42 million, and the revenue of K12 significantly rose 265.5% to CNY 6.23 billion, accounting for 87.54% of the company's annual revenue.

  • Adult business income was CNY 887 million, up 117.3% year on year; the number of paying customers for regular courses reached 442,000 at a 93.0% increase.

  • In 2020, GOTU also increased investment in R&D by 246.1% to CNY 735 million.

  • GOTU also announced its new science and technology strategy, including establishing a research institute, redefining the classroom, and introducing 5G, AR, VR and brain science.

  • This annual report was issued by Deloitte with effective internal control and direct, unqualified assessment.