Phoenix Tree Holdings Ltd

CIK:0001785154|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2019 CNY (¥) ¥ / shares shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Revenues	$ 1,024,029	¥ 7,129,088	¥ 2,675,031	¥ 656,782
Operating expenses:
Rental cost	(919,300)	(6,399,982)	(2,171,755)	(511,697)
Depreciation and amortization	(163,496)	(1,138,225)	(373,231)	(98,984)
Other operating expenses	(108,928)	(758,333)	(295,141)	(46,456)
Pre-opening expense	(32,169)	(223,955)	(270,399)	(62,119)
Sales and marketing expenses	(149,127)	(1,038,191)	(471,026)	(80,991)
General and administrative expenses	(75,767)	(527,479)	(203,847)	(49,960)
Technology and product development expenses	(27,827)	(193,725)	(110,954)	(25,194)
Operating loss	(452,585)	(3,150,802)	(1,221,322)	(218,619)
Change in fair value of convertible loan			(6,962)	(441)
Interest expenses	(50,620)	(352,408)	(163,357)	(55,013)
Interest income	9,169	63,831	20,226	831
Investment income			1,778	1,606
Loss before income taxes	(494,036)	(3,439,379)	(1,369,637)	(271,636)
Income tax benefit/(expense)	311	2,167	(112)	112
Net loss	(493,725)	(3,437,212)	(1,369,749)	(271,524)
Loss attributable to noncontrolling interest	(342)	(2,380)	(4,134)
Net loss	(493,383)	(3,434,832)	(1,365,615)	(271,524)
Accretion and modification of redeemable convertible preferred shares	(50,096)	(348,756)	(111,132)	(14,123)
Net loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited	(543,479)	(3,783,588)	(1,476,747)	(285,647)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of nil income taxes	(7,870)	(54,791)	(4,478)	1,777
Unrealized gain on available-for-sale securities, net of income taxes of RMB112				337
Less: reclassification adjustment for gain on available-for-sale securities realized in net income, net of income taxes of RMB112			(337)
Comprehensive loss	(501,595)	(3,492,003)	(1,374,564)	(269,410)
Comprehensive loss attributable to noncontrolling interest	(342)	(2,380)	(4,134)
Comprehensive loss attributable to ordinary shareholders of Phoenix Tree Holdings Limited	$ (501,253)	¥ (3,489,623)	¥ (1,370,430)	¥ (269,410)
Net loss per share
-Basic and diluted (per share) \| (per share)	$ (2.16)	¥ (15.05)	¥ (7.95)	¥ (2.55)
Weighted average number of shares outstanding used in computing net loss per share
-Basic and diluted \| shares	251,347,723	251,347,723	185,677,083	111,848,958

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (493,725)	¥ (3,437,212)	¥ (1,369,749)	¥ (271,524)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	163,496	1,138,225	373,231	98,984
Share-based compensation	797	5,551	5,808	8,569
Loss on disposal of property and equipment	1,927	13,413	7,859	1,470
Foreign currency exchange loss, net	543	3,777	2,971
Deferred income tax benefits	(311)	(2,167)
Investment income			(1,778)	(1,606)
Change in fair value of convertible loan			6,962	441
Changes in operating assets and liabilities:
Accounts receivable	(198)	(1,377)	2,272	3,505
Advance to landlords	11,538	80,327	(238,737)	(44,817)
Prepayments and other current assets	(44,827)	(312,079)	(222,642)	(8,220)
Deposits to landlords	(27,826)	(193,721)	(311,273)	(78,769)
Other non-current assets	(26,510)	(184,558)	(156,612)	(35,302)
Accounts payable	(10,373)	(72,212)	16,984	(24,830)
Rental payable	53,494	372,416	149,316	31,678
Advance from residents	62,843	437,503	173,878	91,073
Deposits from residents	45,685	318,052	196,857	62,638
Accrued expenses and other current liabilities	(5,492)	(38,234)	161,576	39,422
Other non-current liabilities	(5,590)	(38,920)	38,829	12,710
Net cash used in operating activities	(274,529)	(1,911,216)	(1,164,248)	(114,578)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(281,831)	(1,962,048)	(1,291,460)	(340,788)
Purchase of intangible assets			(2,175)
Investment in term deposits	(19,783)	(137,724)	(137,264)
Proceeds from maturity of term deposits	39,500	274,988
Payment for business acquisition	(28,287)	(196,930)
Cash acquired through business acquisition	1,039	7,235
Prepaid deposit for business acquisition			(45,000)
Loan provided to a third party (Note 5(b))	(3,391)	(23,610)
Purchase of short-term investments			(80,000)	(490,100)
Proceeds from sales of short-term investments			231,878	341,606
Net cash used in investing activities	(292,753)	(2,038,089)	(1,324,021)	(489,282)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings	1,454,922	10,128,876	5,637,551	1,725,476
Repayment of borrowings	(1,146,076)	(7,978,752)	(3,501,633)	(1,002,595)
Payment for initial public offering ("IPO") costs	(695)	(4,837)
Loan provided by related parties	144	1,000	10,343
Repurchase of ordinary shares	(6,681)	(46,510)
Cash contribution from non-controlling interest	72	500
Proceeds from issuance of convertible loan			126,206
Net cash provided by financing activities	710,316	4,945,078	4,692,659	822,440
Effect of foreign currency exchange rate changes on cash and restricted cash	(777)	(5,409)	47,142	(6,110)
Net increase in cash and restricted cash	142,257	990,364	2,251,532	212,470
Cash and restricted cash at the beginning of the year	354,152	2,465,534	214,002	1,532
Cash and restricted cash at the end of the year	496,409	3,455,898	2,465,534	214,002
Supplemental disclosure of cash flow information:
Interest paid	50,496	351,541	161,833	55,013
Accrual of purchase of property and equipment	104,265	725,873	701,906	129,825
Accrual for issurance cost of Series D Redeemable Convertible Preferred Shares	1,013	7,053
Payable for business acquisition	20,512	142,802
Accrual for IPO cost	2,061	14,351
Series A2I Redeemable Convertible Preferred Shares
Supplemental disclosure of cash flow information:
Issuance of Redeemable Convertible Preferred Shares upon conversion of convertible loan				6,250
Series A3 Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock	436	3,038		100,559
Payments of issuance cost of Series Redeemable Convertible Preferred Shares				¥ (1,000)
Series B1 Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock			379,542
Payments of issuance cost of Series Redeemable Convertible Preferred Shares			(8,091)
Series B2 Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock			321,040
Payments of issuance cost of Series Redeemable Convertible Preferred Shares			(3,249)
Supplemental disclosure of cash flow information:
Issuance of Redeemable Convertible Preferred Shares upon conversion of convertible loan			133,168
Series C Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock			1,737,750
Payments of issuance cost of Series Redeemable Convertible Preferred Shares			¥ (6,800)
Series C-2 Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock	215,521	1,500,416
Payments of issuance cost of Series Redeemable Convertible Preferred Shares	(346)	(2,411)
Series D Redeemable Convertible Preferred Shares
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of redeemable convertible preferred stock	$ 193,019	¥ 1,343,758

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Current assets:
Cash	$ 98,434	¥ 685,277	¥ 1,087,258
Term deposits			137,264
Restricted cash	203,575	1,417,245	1,362,266
Accounts receivable, net	408	2,837	1,456
Advance to landlords	32,053	223,146	301,190
Prepayments and other current assets	91,444	636,618	265,794
Total current assets	425,914	2,965,123	3,155,228
Non-current assets:
Restricted cash	194,400	1,353,376	16,010
Property and equipment, net	454,988	3,167,537	1,989,630
Intangible asset, net	21,955	152,846	2,053
Goodwill	49,909	347,455
Deposits to landlords	87,402	608,475	414,754
Other non-current assets	58,994	410,703	251,936
Total non-current assets	867,648	6,040,392	2,674,383
Total assets	1,293,562	9,005,515	5,829,611
Current liabilities:
Short-term borrowings and current portion of long-term borrowings	654,193	4,554,362	2,890,842
Accounts payable	104,349	726,455	718,890
Rental payable	79,492	553,410	180,994
Advance from residents	140,244	976,348	279,534
Amount due to a related party	1,629	11,343	10,343
Deposits from residents	86,954	605,356	287,304
Accrued expenses and other current liabilities	71,172	495,484	214,170
Total current liabilities	1,138,033	7,922,758	4,582,077
Non-current liabilities:
Long-term borrowings, excluding current portion	96,132	669,250	182,646
Deferred tax liabilities	1,012	7,042
Other non-current liabilities	3,938	27,419	51,539
Total non-current liabilities	101,082	703,711	234,185
Total liabilities	1,239,115	8,626,469	4,816,262
MEZZANINE EQUITY
Total mezzanine equity	877,101	6,106,203	2,859,632
SHAREHOLDERS' DEFICIT
Ordinary Shares (US$0.00002 par value, 1,386,190,398 shares and 1,051,493,148 shares authorized as of December 31, 2018 and 2019; 287,500,000 shares and 281,290,000 shares issued and outstanding as of December 31, 2018 and 2019)	5	35	35
Accumulated other comprehensive income/(loss)	(8,310)	(57,852)	(3,061)
Accumulated deficit	(813,535)	(5,663,670)	(1,839,123)
Total shareholders' deficit attributable to ordinary shareholders	(821,840)	(5,721,487)	(1,842,149)
Non-controlling interest	(814)	(5,670)	(4,134)
Total shareholders' deficit	(822,654)	(5,727,157)	(1,846,283)
Total liabilities, mezzanine equity and shareholders' deficit	1,293,562	9,005,515	5,829,611
Series A1 Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	204	1,425	1,402
Series A2 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	5,000	34,806	32,156
Series A2I Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	1,035	7,208	6,826
Series A3 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	17,176	119,576	118,316
Series B1 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	68,554	477,259	440,721
Series B2 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	80,153	558,008	510,802
Series C Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity			¥ 1,749,409
Series C-1 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	1,821	12,679
Series C-2 Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	510,939	3,557,053
Series D Redeemable Convertible Preferred Shares
MEZZANINE EQUITY
Total mezzanine equity	$ 192,219	¥ 1,338,189