Puxin Limited Announces First Quarter 2020 Unaudited Financial Results

BEIJING,May 13,2020 -- Puxin Limited (NYSE: NEW) ("Puxin" or the "Company"),a successful consolidator of the after-school education industry in China,today announced its unaudited financial results for the first quarter ended March 31,2020.

First Quarter 2020 Financial and Operational Highlights

Net revenues were RMB751.3 million (US$106.1 million),an increase of 22.0% from RMB615.7 million in the first quarter of 2019.

Operating income was RMB3.7 million (US$0.5 million),compared to operating loss of RMB136.5 million in the first quarter of 2019.

Adjusted operating income[1] was RMB12.1 million (US$1.7 million),compared to adjusted operating loss of RMB41.8million in the first quarter of 2019.

Net loss attributable to Puxin Limited was RMB43.5 million (US$6.1 million),a decrease of 82.5% from RMB248.8 million in the first quarter of 2019.

Adjusted net income attributable to Puxin Limited[2] was RMB25.4 million (US$3.6 million),compared to adjusted net loss attributable to Puxin Limited of RMB73.8million in the first quarter of 2019.

Adjusted EBITDA[3] was RMB65.0 million (US$9.2 million),compared to RMB(16.9) million in the first quarter of 2019.

Student enrollments increased by 133.4% to 938,275 from 402,061in the first quarter of 2019.

[1]Adjusted operating income (loss) is a non-GAAP financial measure,which is defined as operating income (loss) excluding share-based compensation expenses. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[2]Adjusted net income (loss) attributable to Puxin Limited is a non-GAAP financial measure,which is defined as net loss attributable to Puxin Limited excluding share-based compensation expenses and loss on changes in fair value of derivative liabilities. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[3]EBITDA is a non-GAAP financial measure,which is defined as net earnings (loss) excluding depreciation,amortization,interest expense,interest income and income tax expenses; adjusted EBITDA is a non-GAAP financial measure,which is defined as net loss excluding depreciation,interest income,income tax expenses,share-based compensation expenses and loss on changes in fair value of derivative liabilities. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

Mr. Yunlong Sha,Chairman and Chief Executive Officer of Puxin,commented,"It has been an unusual quarter for both Puxin and China's education industry. We are deeply grateful to the tens of thousands of medical professionals and volunteers on the frontline who have worked tirelessly to contain the coronavirus,and to all the citizens that have cooperated with the government and made tremendous sacrifices during the quarantine period,especially those in Wuhan. We are glad to see a gradual return to normalcy here in China,especially appreciative of the individuals who have kept essential services up and running during this challenging period. Puxin has also reacted quickly to the outbreak through collaboration with the Institute of Psychology,Chinese Academy of Sciences and iGet College (Dedao Daxue) to provide much-needed counseling services during this stressful time. We are proud to be able to give back at a time of challenging circumstances and are determined to get through this crisis together with our students and their families."

Mr. Yunlong Sha continued,"In the first quarter of 2020,we successfully transitioned the offline courses to an online format. We have not only ensured that our students can complete the coursework with high satisfaction,but we have also provided an opportunity for our teachers to master the skills required for teaching small group classes online. This has further enhanced the professional development of our teaching staff for our Online-Merge-Offline (OMO) strategy. We are confident in our abilities to remain one of the leading service providers for China's K-12 tutoring market."

Mr. Peng Wang,Chief Financial Officer of Puxin,"During the first quarter of 2020,Puxin swiftly adjusted class scheduling and enhanced online teaching capabilities. Within this quarter,our total net revenue achieved a solid growth of 22.0% year-over-year to RMB751.3 million and the gross profit increased by 25.3% year-over-year to RMB351.1 million. We appreciate the recognition from our students as we are pleased to report total enrollments of 938,275,which was a 133.4% year-over-year increase,and the retention rate reached 80.5% this quarter. The outlook for the second quarter is optimistic as the full-time schools are resuming classes and we expect our K-12 tutoring services to be reinvigorated. In the long-term,Puxin will continue to explore the full potential of Puxin Business System,to elevate our teaching quality,to drive revenue success with organic growth,M&As,and our OMO strategy. We firmly believe that Puxin will convert challenges into opportunities."

"In the next 1-2 years,Puxin will continue to develop its core capabilities and establish a profitable and sustainable growth model. We aim to achieve flexible deployment of assets and talent of our K-12 tutoring business which has a business model with proven track record and transferable approach to enhancing profitability. This strategy is fundamental to the success of our company and the realization of shareholder values," Mr. Peng Wang added.

Financial Results for the First Quarter of 2020

Net Revenues

Net revenues increased by 22.0% to RMB751.3 million (US$106.1 million) from RMB615.7 million in the first quarter of 2019. This increase was primarily driven by increases in student enrollments. Student enrollments increased by 133.4% from 402,061 in the first quarter of 2019 to 938,275 in the same period of 2020.

Net revenues of K-12 tutoring services increased by 43.6% to RMB546.3 million (US$77.2 million) from RMB380.5 million in the first quarter of 2019. In the first quarter of 2020,the total student enrollments of K-12 tutoring services reached 924,319,which included 357,614 student enrollments of Puxin Online School. Group class courses generated net revenues of RMB308.4 million (US$43.6 million),among which Puxin Online School contributed net revenues of RMB23.0 million (US$3.3 million). Personalized tutoring and full-time tutoring courses contributed net revenues of RMB158.0 million (US$22.3 million) and RMB79.9 million (US$11.3 million) in the first quarter of 2020,respectively. Although we have closed all of our learning centers in China since early February 2020 in response to the measures taken by the PRC government to contain the spread of novel coronavirus ("COVID-19"),we have focused on offering in-progress and new courses online and strengthened student recruitment for online courses offered in the spring semester. As a result,our student enrollments in the first quarter of 2020 continued to increase compared to 872,950 in the fourth quarter of 2019 and 402,061 student enrollments in the first quarter of 2019. However,the school closure has adversely affected our student recruitment for courses to be held in the spring semester,which could in turn adversely affect our business,financial condition and results of operations for the remainder of 2020.

Net revenues of study-abroad tutoring services decreased by 12.8% to RMB205.0 million (US$28.9 million) from RMB235.2 million in the first quarter of 2019,primarily due to the impact of COVID-19 outbreak. Study-abroad tutoring services had 13,956 student enrollments in the first quarter of 2020 compared to 16,670 in the first quarter of 2019. As COVID-19 cases have recently surged outside China,students and parents may postpone or even give up study-abroad plans due to the worldwide outbreak of the virus,which may continue to materially adversely affect the student enrollments and results of operations of our study-abroad tutoring business for the remainder of 2020.

Cost of Revenues

Cost of revenues increased by 19.3% to RMB400.3 million (US$56.5 million) from RMB335.6 million in the first quarter of 2019,primarily due to an increase in rent cost in line with the increase in our learning centers. Cost of revenues,excluding share-based compensation expenses,increased by 19.6% to RMB399.6 million (US$56.4 million) from RMB334.2 million in the first quarter of 2019.

Gross Profit and Gross Margin

Gross profit was RMB351.1 million (US$49.6 million),an increase of 25.3% from RMB280.1 million in the first quarter of 2019. Gross margin was 46.7%,compared to 45.5% for the same period in 2019.

Operating Expenses

Total operating expenses decreased by 16.6% to RMB347.4 million (US49.1 million) from RMB416.6 million in the first quarter of 2019.

Selling expenses slightly increased by 3.5% to RMB230.5 million (US$32.6 million) from RMB222.6 million in the first quarter of 2019. Selling and marketing expenses,increased by 5.1% to RMB226.5 million (US$32.0 million) from RMB215.5 million in the first quarter of 2019,primarily due to increases in marketing expenses.

General and administrative expenses decreased by 39.7% to RMB116.9 million (US$16.5 million) from RMB194.0 million during the same period of 2019. General and administrative expenses,increased by 5.0% to RMB113.1 million (US$16.0 million) from RMB107.8 million in the first quarter of 2019. The increases were primarily due to increases in staff compensation.

Total share-based compensation expenses allocated to related cost of revenues and operating expenses decreased by 91.1% to RMB8.4 million (US$1.2 million) from RMB94.7 million in the first quarter of 2019. The decrease was primarily due to a decrease in the number of options vested in the first quarter of 2020 compared to the first quarter of 2019.

Operating Income (Loss) and Operating Margin

Operating income was RMB3.7 million (US$0.5 million),compared to operating loss of RMB136.5 million in the first quarter of 2019. Operating margin was 0.5% in the first quarter of 2020,compared to (22.2)% for the same period in 2019.

Operating income of K-12 tutoring services was RMB35.0 million (US$4.9 million),compared to operating loss ofRMB40.1 million in the first quarter of 2019 while operating margin improved to 6.4% from (10.5)%.

Adjusted operating income was RMB12.1 million (US$1.7 million),compared to adjusted operating loss of RMB41.8 million in the first quarter of 2019.

Adjusted operating margin[4] was 1.6%,compared to (6.8)% in the same period of the prior year.

Net Loss

Net loss attributable to Puxin Limited was RMB43.5 million (US$6.1 million),a decrease of 82.5% from RMB248.8 million during the first quarter of 2019. Basic and diluted net loss per ADS attributable to Puxin Limited were RMB0.50 (US$0.08),compared to RMB3.02 during the same period of 2019.

Adjusted net income attributable to Puxin Limited was RMB25.4 million (US$3.6 million),compared to adjusted net loss attributable to Puxin Limited of RMB73.8 million during the first quarter of 2019. Adjusted basic and diluted net income per ADS attributable to Puxin Limited[5] was RMB0.29 (US$0.04),compared to adjusted basic and diluted net loss per ADS attributable to Puxin Limited of RMB0.90 during the same period of 2019.

EBITDA

EBITDA was RMB(3.9) million (US$(0.6) million),compared to RMB(191.9) million in the first quarter of 2019.

EBITDA of K-12 tutoring services was RMB30.5 million (US$4.3 million),compared to RMB(74.9) million in the first quarter of 2019.

EBITDA margin[6] was (0.5)% in the first quarter of 2020,compared to (31.2)% in the same period in 2019.

Adjusted EBITDA was RMB65.0 million (US$9.2 million),compared to RMB(16.9) million in the first quarter of 2019.

Adjusted EBITDA margin[7] was 8.6%,compared to (2.7)% in the same period in 2019.

[4]Adjusted operating margin is a non-GAAP financial measure,which is defined as adjusted operating income (loss) divided by net revenues. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[5] Adjusted basic and diluted net income (loss) per ADS attributable to Puxin Limited is a non-GAAP financial measure,which is defined as basic and diluted net loss per ADS attributable to Puxin Limited excluding share-based compensation expenses,loss on changes in fair value of derivative liabilities. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[6]EBITDA margin is a non-GAAP financial measure,which is defined as EBITDA divided by net revenues. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

[7]Adjusted EBITDA margin is a non-GAAP financial measure,which is defined as adjusted EBITDA divided by net revenues. See "Use of Non-GAAP Financial Measures" and "Reconciliations of GAAP and non-GAAP results" elsewhere in this earnings release.

Cash and Current Bank Balances

As of March 31,2020,the Company had total cash and cash equivalents and the current portion of restricted cash of RMB563.9 million (US$79.6 million),compared to RMB606.3 million as of December 31,2019. The current portion of restricted cash consisted primarily of deposits with Chinese commercial banks as collateral for our bank borrowings within one-year term.

Business Outlook

The beginning of 2020 was challenging for after-school education industry due to the outbreak of the novel coronavirus. As a result of the impact of the coronavirus outbreak,we have lowered our expectations for growth in the second quarter of 2020. Based on the information available as of the date of this press release,the Company expects net revenues for the second quarter of 2020 to be between RMB620.3 million and RMB651.9 million,which represents a decrease of 2% to an increase of 3% year-over-year. These forecasts reflect the Company's current and preliminary views on the market and operational conditions,which are subject to change.

Conference Call Information

Puxin's management team will hold a conference call on May 12,at 8:00 AM U.S. Eastern Time (or 8:00 PM on the same day,Beijing/Hong Kong Time) following the quarterly results announcement. Participants may access the call by dialing the following numbers:

International:

+1-412-902-4272

Mainland China:

4001-201203

US:

+1-888-346-8982

Hong Kong:

+852-301-84992

Passcode:

Puxin

Please dial in 10 minutes before the call is scheduled to begin. When prompted,ask to be connected to the Puxin Limited Call. Participants will be required to state their name and company upon entering the call.

A replay of the conference call will be accessible two hours after the conclusion of the conference call through May 19,2020by dialing the following numbers:

International:

+1-412-317-0088

US:

+1-877-344-7529

Passcode:

10143694

A live webcast and archive of the conference call will be available on the Investor Relations section of Puxin's website at http://ir.pxjy.com/.

Exchange Rate

The Company's business is primarily conducted in China and all of the revenues are denominated in Renminbi ("RMB"). This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the readers. Unless otherwise noted,all translations from RMB to USD are made at the rate of RMB 7.0808 to US$1.00,the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on March 31,2020. No representation is made that the RMB amounts could have been,or could be,converted,realized or settled into US$ at that rate on March 31,2020 or at any other rate.

Use of Non-GAAP Financial Measures

To supplement the Company's financial results presented in accordance with U.S. GAAP,the Company also uses non-GAAP financial measures,including adjusted operating income (loss),adjusted operating margin,adjusted net income (loss) attributable to Puxin Limited,EBITDA,adjusted EBITDA,EBITDA margin,adjusted EBITDA margin,adjusted basic and diluted net income (loss) per ADS attributable to Puxin Limited,as supplemental measures to review and assess the Company's operating performance. Adjusted operating income (loss) is defined as operating income (loss) excluding share-based compensation expenses; adjusted operating margin is defined as adjusted operating income (loss) divided by net revenues; adjusted net income (loss) attributable to Puxin Limited is defined as net loss attributable to Puxin Limited excluding share-based compensation expenses and loss on changes in fair value of derivative liabilities;EBITDA is defined as net loss excluding depreciation,interest income and income tax expenses; adjusted EBITDA is defined as net loss excluding depreciation,share-based compensation expenses and loss on changes in fair value of derivative liabilities; EBITDA margin is defined as EBITDA divided by net revenues; adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues; adjusted basic and diluted net income (loss) per ADS attributable to Puxin Limited are defined as basic and diluted net loss per ADS attributable to Puxin Limited excluding share-based compensation expenses and loss on changes in fair value of derivative liabilities.

The Company believes that these non-GAAP financial measures provide useful information about the Company's operating results,enhance the overall understanding of the Company's past performance and future prospects and allow for greater visibility with respect to key metrics used by the Company's management in its financial and operational decision-making.

Non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools,and when assessing the Company's operating performance,investors should not consider them in isolation. In addition,calculations of this non-GAAP financial information may be different from calculations used by other companies,and therefore comparability may be limited.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures,all of which should be considered when evaluating our performance.

For more information on this non-GAAP financial measure,please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

Safe Harbor Statement

This press release contains forward-looking statements made under the "safe harbor" provisions of Section 21E of the Securities Exchange Act of 1934,as amended,and the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "may," "would," "expect," "anticipate," "future," "intend," "aim," "plan," "believe," "estimate," "predict," "project," "continue," "confident" and similar statements. The Company may also make written or oral forward-looking statements in its reports filed with or furnished to the U.S. Securities and Exchange Commission,in its annual report to shareholders,in press releases and other written materials and in oral statements made by its officers,directors or employees to third parties. Any statements that are not historical facts,including statements about the Company's beliefs and expectations,are forward-looking statements that involve factors,risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such factors and risks include,but not limited to the following: its goals and strategies,its ability to achieve and maintain profitability,its ability to attract and retain students to enroll in its courses,its ability to effectively manage its business expansion and successfully integrate businesses it acquired,its ability to identify or pursue targets for acquisitions,its ability to compete effectively against its competitors,its ability to improve the content of its existing courses or to develop new courses,and relevant government policies and regulations relating to the Company's corporate structure,business and industry. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is current as of the date of the press release,and the Company does not undertake any obligation to update such information,except as required under applicable law.

About Puxin Limited

Puxin Limited ("Puxin" or the "Company") is a successful consolidator of the after-school education industry in China. Puxin has a strong acquisition and integration expertise to effectively improve education quality and operational performance of acquired schools. Puxin offers a full spectrum of K-12 and study-abroad tutoring programs designed to help students achieve academic excellence,as well as prepare for admission tests and applications for top schools,universities and graduate programs in China and other countries. The Company has developed a business model effectively combining strategic acquisitions and organic growth achieved through successful post-acquisition integration,which has differentiated the Company from other after-school education service providers in China. For more information,please visit http://www.pxjy.com/.

Contacts

Puxin Limited

Phone: +86-10-6269-8930

E-mail: ir@pxjy.com

Institutional Capital Advisory (ICA)

Mr. Kevin Yang

Phone: +86-21-8028-6033

E-mail: puxin@icaasia.com

PUXIN LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of RMB and USD,except for share,per share and per ADS data)

As of December31,

As of March31,

2019

2020

2020

RMB

RMB

USD

ASSETS

Current assets

Cash and cash equivalents

256,763

181,572

25,643

Restricted cash,current portion

349,540

382,363

54,000

Inventories

13,311

14,541

2,054

Prepaid expenses and other current assets

117,148

136,701

19,306

Loan receivable,current portion

191,230

-

-

Total current assets

927,992

715,177

101,003

Non-current assets

Restricted cash,non-current portion

36,727

33,305

4,704

Operating lease right-of-use assets

1,045,941

1,041,689

147,115

Property,plant and equipment,net

298,719

292,364

41,290

Intangible assets

264,540

255,278

36,052

Goodwill

2,055,922

2,922

290,352

Deferred tax assets

2,199

1,735

245

Rental deposit

75,015

79,219

11,188

Loan receivable,non-current portion

-

198,877

28,087

TOTAL ASSETS

4,707,055

4,673,566

660,036

LIABILITIES

Current liabilities

Accrued expenses and other current liabilities (including

accrued expenses and other current liabilities of the

consolidated VIE without recourse to the Group of

RMB930,674 and RMB901,761 as of December 31,2019

and March 31,respectively)

983,715

921,466

130,137

Income tax payable of the consolidated VIE without recourse

to the Group

21,248

20,447

2,888

Deferred revenue,current portion (including deferred revenue,

current portion of the consolidated VIE without recourse to

the Group of RMB1,195,723 and RMB999,905 as of

December 31,2019 and March 31,respectively)

1,205,609

1,010,199

142,667

Operating lease liabilities,current portion (including operating

lease liabilities,current portion of the consolidated VIE

without recourse to the Group of RMB275,893 and

RMB274,660 as of December 31,2019 and

March 31,respectively)

276,877

276,158

39,001

Amounts due to related parties,current portion (including

amounts due to related parties,current portion of the

consolidated VIE without recourse to the Group of RMB254

and RMB60,331 as of December 31,

2020,451

61,278

8,654

Bank borrowings of the consolidated VIE without recourse to

the Group

318,600

420,670

59,410

Loans payable to third parties (including loans payable to third

parties of the consolidated VIE without recourse to the

Group of RMB292,952 and RMB309,452 as of December

31,respectively)

413,838

446,981

63,126

Promissory note,current portion of the consolidated VIE

without recourse to the Group

87,023

88,510

12,500

Total current liabilities

3,308,361

3,245,709

458,383

PUXIN LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands of RMB and USD,

2019

2020

2020

RMB

RMB

USD

Non-current liabilities

Deferred revenue,non-current portion of the consolidated

VIE without recourse to the Group

101,372

74,298

10,493

Deferred tax liabilities of the consolidated VIE without

recourse to the Group

81,969

79,540

11,233

Amounts due to related parties,non-current portion

(including amounts due to related parties,non-current

portion of the consolidated VIE without recourse to the

Group of RMB nil and RMB nil as of December 31,respectively)

-

14,236

2,011

Franchise deposits of the consolidated VIE without recourse

to the Group

2,533

2,549

360

Operating lease liabilities,non-current portion of the

consolidated VIE without recourse to the Group

693,505

705,496

99,635

Promissory note,non-current portion (including promissory

note,non-current portion of the consolidated VIE without

recourse to the Group of RMB nil and RMB nil as of

December 31,respectively)

87,022

88,500

Derivative liabilities (including derivative liabilities of the

consolidated VIE without recourse to the Group of RMB

nil and RMB nilas of December31,respectively)

172,235

236,499

33,400

TOTAL LIABILITIES

4,446,997

4,837

628,015

SHAREHOLDERS' EQUITY

Ordinary shares (par value of USD0.00005 per share

1,000,000 and 1,000 shares authorized,

188,627,228 and 188,640,348 shares issued and

174,025,810and 174,062,932 shares outstanding

as of December31,respectively)

62

62

9

Additional paid-in capital

2,175,652

2,184,300

308,482

Statutory reserve

7,979

7,979

1,127

Accumulated other comprehensive income

68,707

71,113

10,043

Accumulated deficit

(1,991,220)

(2,034,683)

(287,352)

Total Puxin Limited shareholders' equity

261,180

228,771

32,309

Non-controlling interest

(1,122)

(2,042)

(288)

TOTAL SHAREHOLDERS' EQUITY

260,058

226,729

32,021

TOTAL LIABILITIES AND TOTAL SHAREHOLDERS' EQUITY

4,036

PUXIN LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands of RMB and USD,per share and per ADS data)

Forthe three months ended March31,

2019

2020

2020

RMB

RMB

USD

Net revenues

615,675

751,345

106,110

Cost of revenues (including share-based compensation expenses of

RMB1,402 and RMB681 for the three months ended March 31,2019

and 2020,respectively)

335,599

400,278

56,530

Gross profit

280,076

351,067

49,580

Operating expenses:

Selling expenses (including share-based compensation expenses of

RMB7,118 and RMB3,989 for the threemonths ended March 31,

2019 and 2020,respectively)

222,634

230,497

32,552

General and administrative expenses (including share-based

compensation expenses of RMB86,228 and RMB3,775 for the

three months ended March 31,2019 and 2020,respectively)

193,985

116,918

16,511

Total operating expenses

416,619

347,415

49,063

Operating (loss) income

(136,543)

3,652

517

Interest expense

30,039

20,853

2,945

Interest income

766

11,956

1,689

Foreign exchange loss (income)

189

(142)

(20)

Loss on changes in fair value of derivative liabilities

80,262

60,435

8,535

Other income,net

-

21,848

3,086

Loss before income taxes

(246,267)

(43,690)

(6,168)

Income tax expenses

2,493

693

98

Net loss

(248,760)

(44,383)

(6,266)

Less: Net income (loss) attributable to non-controlling interest

18

(920)

(130)

Net loss attributable to Puxin Limited

(248,778)

(43,463)

(6,136)

Net loss per share attributable to Puxin Limited

Basic and diluted

(1.51)

(0.25)

(0.04)

Net loss per ADS attributable to Puxin Limited

Basic and diluted

(3.02)

(0.50)

(0.08)

Weighted average shares used in calculating basic and diluted net loss per

share

165,823

174,056,517

174,517

Note: Each ADS represents two ordinary shares.

PUXIN LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands of RMB and USD)

For the three monthsended March31,

2019

2020

2020

RMB

RMB

USD

Net loss

(248,266)

Other comprehensive (loss) income,net of tax:

Change in cumulative foreign currency translation adjustments

(6,464)

2,406

340

Total comprehensive loss

(255,224)

(41,977)

(5,926)

Less: comprehensive income (loss) attributable to non-controlling interest

18

(920)

(130)

Total comprehensive loss attributable to Puxin Limited

(255,242)

(41,057)

(5,796)

PUXIN LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(In thousands of RMB and USD,per share and per ADS data)

For the three months ended March31,

2019

2020

2020

RMB

RMB

USD

Operating (loss) income

(136,652

517

Add: Share-based compensation expenses

94,748

8,445

1,192

Adjusted operating (loss) income

(41,795)

12,097

1,709

Adjusted operating margin

(6.8%)

1.6%

1.6%

Net loss attributable to Puxin Limited

(248,136)

Add: Share-based compensation expenses

94,192

Loss on changes in fair value of derivative liabilities

80,535

Adjusted net (loss) income attributable to Puxin Limited

(73,768)

25,417

3,591

Net loss

(248,266)

Add: Income tax expenses

2,493

693

98

Depreciation of property,plant and equipment

17,306

21,628

3,054

Amortization of intangible assets

7,767

9,262

1,308

Interest expense

30,945

Less: Interest income

766

11,689

EBITDA

(191,921)

(3,903)

(550)

EBITDA margin

(31.2%)

(0.5%)

(0.5%)

Add: Share-based compensation expenses

94,535

Adjusted EBITDA

(16,911)

64,977

9,177

Adjusted EBITDA margin

(2.7%)

8.6%

8.6%

Net loss per ADS attributable to Puxin Limited

- Basic and diluted

(3.02)

(0.50)

(0.08)

Adjusted net (loss) income per ADS attributable to Puxin Limited

- Basic

(0.90)

0.29

0.04

Adjusted net (loss) income per ADS attributable to Puxin Limited

- Diluted

(0.90)

0.29

0.04

Weighted average shares used in calculating basic

net (loss) income per share

165,517

Weighted average shares used in calculating diluted

net (loss) income per share

165,823

178,101,179

178,179

Note: Each ADS represents two ordinary shares.

View original content:/news-releases/puxin-limited-announces-first-quarter-2020-unaudited-financial-results-301057528.html