Ambow Education Announces First Half 2015 Unaudited Financial Results

BEIJING, Sept. 15, 2015 /PRNewswire/ -- Ambow Education Holding Ltd. ("Ambow" or the "Company"), a leading national provider of educational and career enhancement services in China, today announced unaudited financial and operating results for the six months ended June 30, 2015.

"We are delighted to make significant progress during our restructuring," commented Dr. Jin Huang, Ambow's President and Chief Executive Officer. "With the sale of the Jinghan tutoring business in the second quarter, we have set the stage to establish a leadership position in the career enhancement industry and transforming into a university platform that will extend from China to the United States. In addition, our new Chief Operating Officer Chiao-Ling Hsu has extensive knowledge and experience in the education profession, and her expertise will be a key factor as we implement Ambow's business and strategic initiatives for the next phase of our growth."

Kia Jing Tan, Chief Financial Officer, added, "In the first half of 2015 we continued to strengthen our leadership position in the career enhancement industry, while generating stable cash flow from the Better School segment. As of June 30, 2015, our total cash balance including cash and cash equivalents and restricted cash reached total of RMB518.1 million. With an enhanced capital structure and Corporate Governance, along with the successful completion of our Reverse Stock Split, we will continue our efforts to maximize value for our shareholders."

"We are redesigning the Company's internal structure and Enterprise Resource Planning system to provide an effective operating foundation for our long-term growth, while continuing to provide exceptional educational and career enhancement services in China," concluded Chiao-Ling Hsu, Chief Operating Officer.

Year-to-Date Financial Review For The Six Months Ended June 30, 2015

• Net revenues for the first half of 2015 were RMB184.5 million (US$29.8 million), compared with RMB196.6 million in the same period of 2014.
• Gross profit in the first half of 2015 was RMB72.3 million (US$11.7 million), an increase of 1.8% compared with gross profit of RMB71.0 million in the first half of 2014.  Gross profit margin in the first half of 2015 was 39.2%, compared with gross profit margin of 36.1% in the first half of 2014.
• The operating expenses for the first half of 2015 were RMB166.0 million (US$26.8 million), compared with operating expenses of RMB199.4 million in the same period of 2014. The decrease in operating expenses was primarily benefited from the cost-saving initiatives including headcount reduction, drop of rental expenses and other effective cost control management.
• Net income attributable to the Company was RMB203.8 million (US$32.9 million) in the first half of 2015, or RMB6.44 (US$1.048) per basic and diluted share, compared with a net loss of RMB310.5 million, or a loss of RMB54.29 per basic and diluted share, in the same period of 2014. Net income for the first half of 2015 included an RMB347.4 million (US$56.0 million) net gain from the Jinghan disposal, which occurred in the second quarter. There was an RMB143.8 million expense related to the loss from extinguishment of debt in 2014.
• As of June 30, 2015, the Company had an improved cash balance with a total of RMB518.1 million (US$83.6 miilion), including cash and cash equivalents of RMB316.1 million and restricted cash of RMB202.0 million, compared with a total cash balance of RMB182.3 million as of December 31, 2014.
• After a one-for-thirty Reverse Stock Split completed on September 4, 2015, the Company has 37,859,756 Class A Ordinary Shares, of which 37,780,846 Class A Ordinary Shares are issued and outstanding. Additionally, of the 37,859,756 Class A Ordinary Shares, 747,883 ADRs, representing 1,495,766 underlying ordinary shares, were held of record by DTC, the Depository Trust Company, under the nominee name of Cede & Co., on behalf of DTC participants.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are based on the effective exchange rate of 6.200 as of June 30, 2015.

About Ambow Education Holding Ltd.

Ambow Education Holding Ltd. is a leading national provider of educational and career enhancement services in China, offering high-quality, individualized services and products. With its extensive network of regional service hubs complemented by a dynamic proprietary learning platform and distributors, Ambow provides its services and products to students in 30 out of the 31 provinces and autonomous regions within China.

Follow us on Twitter: @Ambow_Education

Safe Harbor Statement

This announcement contains forward-looking statements.  These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.  These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements.  Among other things, the outlook for the third quarter and full year 2015 and quotations from management in this announcement, as well as Ambow's strategic and operational plans, contain forward-looking statements. Ambow may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statements, including but not limited to the following: the Company's goals and strategies, expansion plans, the expected growth of the content and application delivery services market, the Company's expectations regarding keeping and strengthening its relationships with its customers, and the general economic and business conditions in the regions where the Company provides its solutions and services. 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 as of the date of this press release, and Ambow undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries please contact:

Ambow Education Holding Ltd.
Tel: +86-10-6206-8104
The Piacente Group | Investor Relations
Tel: +1 212-481-2050 or +86 10-6535-0147
Email: a[email protected]

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SOURCE Ambow Education Holding Ltd.