YXT YXT.COM Group Holding Ltd

 

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 November 2024

 

Commission file number: 001-42209

 

 

YXT.COM GROUP HOLDING LIMITED

(Exact Name of Registrant as Specified in Its Charter)

 

 

Room 501-502, No. 78 East Jinshan Road

Huqiu District, Suzhou

Jiangsu, 215011, People’s Republic of China

+86 (512) 6689 9881

 

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

 

Form 20-F ☒            Form 40-F ☐

 

YXT.COM Reports Unaudited Financial Results for the First Six Months of 2024

 

Financial Results for the First Six Months of 2024

 

Revenues

 

Revenues were RMB165.8 million (US$22.8 million), compared with RMB238.1 million in the same period of last year.

 

·

Revenues from corporate learning solutions were RMB164.5 million (US$22.6 million), compared with RMB228.2 million in the same period of last year.

 

o

Revenues from subscription based corporate learning solutions were RMB151.9 million (US$20.9 million), compared with RMB196.5 million in the same period of last year. The change was primarily due to (i) the deconsolidation of CEIBS Publishing Group Limited (the “CEIBS PG”) effective on January 15, 2024, resulting in a decrease of RMB29.4 million; and (ii) a net impact of RMB15.2 million from operational adjustments, due to (1) our strategic suspension of certain ancillary online teaching tools; and (2) our business expansion strategy to focus on large enterprises with strong and steady demand for corporate learning solutions, leading to the deselection of some small and medium-sized customers and therefore the decrease in the number of our subscription customers during the same periods.

 

o

Revenues from non-subscription based corporate learning solutions were RMB12.6 million (US$1.7 million), compared with RMB31.7 million in the same period of last year. The change was primarily due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB14.4 million; and (ii) reduced offline activities reflecting our strategic shift towards subscription-based corporate learning solutions.

 

·

Revenues from others were RMB1.3 million (US$0.2 million), compared with RMB9.9 million in the same period of last year. The change primarily reflects fewer customized software projects completed in the six months ended June 30, 2024, aligning with our strategic focus on corporate learning solutions.

 

Cost of revenues

 

Cost of revenues was RMB64.4 million (US$8.9 million), compared with RMB86.2 million in the same period of 2023, representing a decrease of 25.2%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB14.2 million; (ii) lower instructor compensation costs due to reduced offline activities, aligning with our strategic shift towards subscription-based corporate learning solutions; and (iii) decreased staff expenses and third-party infrastructure costs through operational optimization.

 

Sales and marketing expenses

 

Sales and marketing expenses were RMB71.6 million (US$9.8 million), compared with RMB115.2 million in the same period of last year, representing a decrease of 37.9%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB25.0 million; and (ii) reduced compensation and incentives through human resources optimization.

 

Research and development expenses

 

Research and development expenses were RMB59.8 million (US$8.2 million), compared with RMB94.1 million in the same period of 2023, representing a decrease of 36.5%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB14.1 million; and (ii) reduced compensation through human resources optimization.

 

General and administrative expenses

 

General and administrative expenses were RMB45.0 million (US$6.2 million), compared with RMB81.3 million in the same period of 2023, representing a decrease of 44.6%, mainly due to (i) the deconsolidation of CEIBS PG effective on January 15, 2024, resulting in a decrease of RMB9.1 million; (ii) a RMB14.0 million decrease in share-based compensation following completion of certain share-based incentives amortization; and (iii) reduced professional fees.

 

Net (loss)/income and adjusted net loss

 

Net income was RMB21.4 million (US$2.9 million), compared with a net loss of RMB148.8 million in the same period of last year. Adjusted net loss was RMB75.3 million (US$10.4 million), compared with an adjusted net loss of RMB108.1 million in the same period of last year.

 

Loss per share

 

Basic and diluted net loss per share was RMB3.82 (US$0.53), compared with basic and diluted net loss per share of RMB7.02 in the same period of last year.

 

Balance Sheet

 

As of June 30, 2024, the Company had cash and cash equivalents, restricted cash, short-term investments and long-term bank deposits of RMB449.8 million (US$61.9 million), compared with RMB496.2 million as of December 31, 2023.

 

Non-GAAP Financial Measures

 

In evaluating our business, we consider and use adjusted net loss as a supplemental non-GAAP measure to review and assess our operating performance. Adjusted net loss is net loss excluding amortization of incremental intangible assets resulting from business combination, gain on deconsolidation of CEIBS PG, share-based compensation, change in fair value of derivative liabilities, net of income taxes, to the extent applicable. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. We present the non-GAAP financial measure because it is used by our management to evaluate our operating performance and formulate business plans. We also believe that the use of the non-GAAP measure facilitates investors’ assessment of our operating performance.

 

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as analytical tools. One of the key limitations of using the non-GAAP financial measure is that it does not reflect all items of income and expense that affect our operations. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore its comparability may be limited. We compensate for these limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, which should be considered when evaluating our performance. We encourage you to review our financial information in its entirety and not rely on a single financial measure.

 

Exchange Rate Information

 

This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.2672 to US$1.00, the exchange rate on June 28, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred to could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

 

Safe Harbor Statements

 

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to”, or other similar expressions. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.

 

About YXT.com

 

As a technology company, YXT.com provides corporations with digital corporate learning solutions, including SaaS platforms, learning content, and other services. YXT.com is a leader and disruptor of the digital corporate learning industry in China. Established in 2011, YXT.com has supported Fortune 500 companies and other leading companies with their transformation and digitalization of learning and development, and has received recognition, respect and recurring business.

 

Contact
Robin Yang
ICR, LLC
YXT.IR@icrinc.com
+1 (646) 405-4883

 

 

 

 

 

 

 

YXT.COM GROUP HOLDING LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2023 AND JUNE 30, 2024

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

		As of December 31,				As of June 30,
		2023				2024
		RMB				RMB				US$
ASSETS
Current assets:
Cash and cash equivalents			320,489				271,914				37,417
Restricted Cash			-				156				21
Short-term investments			58,128				177,701				24,452
Accounts receivable, net			32,790				18,896				2,600
Prepaid expenses and other current assets			12,028				8,482				1,167
Amounts due from related parties			-				2,000				275
Total current assets			423,435				479,149				65,932
Non-current assets:
Property, equipment and software, net			23,402				18,004				2,477
Intangible assets, net			12,720				10,130				1,394
Goodwill			164,113				163,837				22,545
Long-term investments			126,341				121,558				16,727
Operating lease right-of-use assets, net			34,997				23,330				3,210
Other non-current assets			22,265				20,472				2,817
Long-term bank deposits			117,573				-				-
Total non-current assets			501,411				357,331				49,170
Total assets			924,846				836,480				115,102
LIABILITIES, MEZZANINE AND SHAREHOLDERS’ DEFICIT
Current liabilities
Accounts payable			17,855				7,337				1,010
Amounts due to related parties			-				1,143				157
Short-term borrowings			46,800				232,000				31,924
Deferred revenue, current			188,485				111,734				15,375
Acquisition consideration payable			14,775				14,775				2,033
Other payable and accrued liabilities			89,937				56,166				7,727
Derivative liabilities			100,279				78,545				10,808
Operating lease liabilities, current			15,818				8,406				1,157
Total current liabilities			473,949				510,106				70,191
Non-current liabilities
Long-term borrowings			219,000				120,500				16,581
Operating lease liabilities, non-current			20,257				14,648				2,016
Deferred revenue, non-current			58,952				52,163				7,178
Total non-current liabilities			298,209				187,311				25,775
Total liabilities			772,158				697,417				95,966

 

YXT.COM GROUP HOLDING LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF DECEMBER 31, 2023 AND JUNE 30, 2024

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

		As of December 31,				As of June 30,
		2023				2024
		RMB				RMB				US$
Mezzanine equity
Series A convertible redeemable preferred shares (US$0.0001 par value, 15,040,570 shares authorized, issued and outstanding as of December 31, 2023 and June 30, 2024)			408,139				425,049				58,489
Series B convertible redeemable preferred shares (US$0.0001 par value, 7,085,330 shares authorized, issued and outstanding as of December 31, 2023 and June 30, 2024)			199,518				206,674				28,439
Series C convertible redeemable preferred shares (US$0.0001 par value, 23,786,590 shares authorized, issued and outstanding as of December 31, 2023 and June 30, 2024)			493,788				506,906				69,753
Series D convertible redeemable preferred shares (US$0.0001 par value, 37,152,161 shares authorized, issued and outstanding as of December 31, 2023 and June 30, 2024)			1,059,434				1,115,303				153,471
Series E convertible redeemable preferred shares (US$0.0001 par value, 26,417,318 shares authorized, issued and outstanding as of December 31, 2023 and June 30, 2024)			1,402,802				1,520,053				209,166
Total mezzanine equity			3,563,681				3,773,985				519,318
Shareholders’ deficit
Ordinary shares (US$0.0001 par value 390,518,031 shares authorized as of December 31, 2023 and June 30, 2024; 48,253,425 shares issued and outstanding as of December 31, 2023 and June 30, 2024)			33				33				5
Additional paid-in capital			16,671				-				-
Statutory reserve			4,322				-				-
Accumulated other comprehensive income			23,775				19,558				2,691
Accumulated deficit			(3,490,681	)			(3,654,513	)			(502,878	)
Total YXT.COM Group Holding Limited shareholders’ deficit			(3,445,880	)			(3,634,922	)			(500,182	)
Non-controlling interests			34,887				-				-
Total shareholders’ deficit			(3,410,993	)			(3,634,922	)			(500,182	)
Total liabilities, mezzanine equity and shareholders’ deficit			924,846				836,480				115,102

 

YXT.COM GROUP HOLDING LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

		For the six months ended June 30,
		2023				2024
		RMB				RMB				US$
Revenues:
Corporate learning solutions			228,218				164,420				22,625
Others			9,891				1,336				184
Total revenues			238,109				165,756				22,809
Cost of revenues			(86,164	)			(64,419	)			(8,864	)
Sales and marketing expenses			(115,203	)			(71,569	)			(9,848	)
Research and development expenses			(94,057	)			(59,772	)			(8,225	)
General and administrative expenses			(81,264	)			(44,993	)			(6,192	)
Other operating income			3,597				1,609				221
Loss from operations			(134,982	)			(73,388	)			(10,099	)
Interest and investment income			2,971				4,163				572
Interest expense			(1,193	)			(4,993	)			(687	)
Investment losses			(1,796	)			(4,951	)			(681	)
Gain on deconsolidation of CEIBS Publishing Group			-				78,760				10,838
Foreign exchange (loss)/gain, net			(238	)			33				5
Change in fair value of derivative liabilities			(16,060	)			21,735				2,991
(Loss)/income before income tax expense			(151,298	)			21,359				2,939
Income tax benefit			2,466				-				-
Net (loss)/income			(148,832	)			21,359				2,939
Net loss attributable to non-controlling interests shareholders			5,212				300				41
Net (loss)/income attributable to YXT.COM Group Holding Limited			(143,620	)			21,659				2,980

 

YXT.COM GROUP HOLDING LIMITED

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)/INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

		For the six months ended June 30,
		2023				2024
		RMB				RMB				US$
Net (loss)/income attributable to  YXT.COM Group Holding Limited			(143,620	)			21,659				2,980
Net accretion of convertible redeemable preferred shares			(196,041	)			(204,364	)			(28,121	)
Deemed dividend to preferred shareholders due to modification			-				(5,940	)			(817	)
Net loss attributable to ordinary shareholders of YXT.COM Group Holding Limited			(339,661	)			(188,645	)			(25,958	)
Net (loss)/income			(148,832	)			21,359				2,939
Other comprehensive (loss)/income
Foreign currency translation			6,236				1,191				164
Unrealized gain/(loss) on investments in available-for-sale debt securities, net of tax			6,615				(5,408	)			(744	)
Total comprehensive (loss)/income			(135,981	)			17,142				2,359
Total comprehensive loss attributable to non-controlling interests			5,212				300				41
Total comprehensive (loss)/income attributable to YXT.COM Group Holding Limited			(130,769	)			17,442				2,400
Net loss attributable to ordinary shareholders of YXT.COM Group Holding Limited			(339,661	)			(188,645	)			(25,958	)
—Weighted average number of ordinary shares basic and diluted			48,357,063				49,329,740				49,329,740
Net loss per share attributable to ordinary shareholders:
—Basic and diluted			(7.02	)			(3.82	)			(0.53	)

 

YXT.COM GROUP HOLDING LIMITED

 

UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024

(All amounts in thousands, except for share and per share data, unless otherwise noted)

 

		For the six months ended June 30,
		2023				2024
		RMB				RMB				US$
Net (loss)/income			(148,832	)			21,359				2,939
Adjustments:
Amortization of incremental intangible assets resulting from business combination			9,120				-				-
Gain on deconsolidation of CEIBS Publishing Group			-				(78,760	)			(10,838	)
Share-based compensation			17,834				3,820				526
Change in fair value of derivative liabilities			16,060				(21,735	)			(2,991	)
Adjusted loss before income taxes			(105,818	)			(75,316	)			(10,364	)
Adjusted income taxes			(2,280	)			-				-
Adjusted net loss			(108,098	)			(75,316	)			(10,364	)

 

 

 

 

 

 

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.

 

	YXT.COM GROUP HOLDING LIMITED
Date: November 26, 2024	By:		/s/ Pun Leung Liu
			Name: Pun Leung Liu
			Title:   Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

10 / 10

 

---