Mynd.ai Inc (MYND) 2020 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by for RYB Education, Inc.'s Fourth Quarter and Full Year 2020 Earnings Conference Call. (Operator Instructions) Today's conference call is being recorded. I will now turn the call over to your host, Serena, Investor Relations manager for the company. Please go ahead, Serena.

女士們，先生們，感謝您支持紅黃藍教育股份有限公司 2020 年第四季度和全年收益電話會議。 （操作員說明）正在錄製今天的電話會議。我現在將電話轉給您的主持人 Serena，該公司的投資者關係經理。請繼續，瑟琳娜。

Thank you, Kip, and hello to everybody on today's call. With me today are Ms. Yanlai Shi, our Co-Founder, Director and CEO; and Mr. Hao Gu, our CFO. Our earnings press release was issued earlier today through newswire services and is also posted on our Investor Relations website, ir.rybbaby.com. On our website, you will also find a webcast replay of today's call.

謝謝你，基普，今天的電話會議向大家問好。今天和我在一起的是我們的聯合創始人、董事兼首席執行官史艷來女士；和我們的首席財務官顧浩先生。我們的收益新聞稿今天早些時候通過新聞專線服務發布，同時也發佈在我們的投資者關係網站 ir.rybbaby.com 上。在我們的網站上，您還可以找到今天電話會議的網絡直播重播。

Please note that the discussion today will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's actual results may be materially different from the views expressed today. Further information regarding these and other risks and uncertainties is included in the company's annual report on Form 20-F for the fiscal year ended December 31, 2019, and other filings as filed with the U.S. Securities and Exchange Commission. The company does not assume any obligation to update any forward-looking statements except as required under applicable law.

請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的實際結果可能與今天表達的觀點存在重大差異。有關這些及其他風險和不確定性的更多信息包含在公司截至 2019 年 12 月 31 日止財政年度的 20-F 表格年度報告以及向美國證券交易委員會提交的其他文件中。除非適用法律要求，否則公司不承擔任何更新任何前瞻性陳述的義務。

During this call today, management will also discuss certain unaudited non-GAAP financial measures for informational purposes only. The company's fourth quarter and full year 2020 earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

在今天的電話會議中，管理層還將討論某些未經審計的非 GAAP 財務措施，僅供參考。公司的第四季度和 2020 年全年收益新聞稿包含未經審計的非 GAAP 措施與未經審計的最直接可比的 GAAP 措施的調節。

Now I'll turn the call to Ms. Shi for her to take us through a review of the fourth quarter and provide updates on the business.

現在我會把電話轉給石女士，讓她帶我們回顧一下第四季度，並提供業務的最新情況。

(foreign language)

（外語）

[Interpreted] Thank you to all of you who have joined us today. I'll begin by reviewing our business and operating results for the fourth quarter and full year 2020. Then our CFO, Chris, will follow with a more detailed review of the financials.

[翻譯]感謝今天加入我們的所有人。我將首先回顧我們 2020 年第四季度和全年的業務和經營業績。然後我們的首席財務官克里斯將對財務狀況進行更詳細的回顧。

(foreign language)

（外語）

[Interpreted] I'm glad to report that all of our directly operated kindergartens in China and Singapore were running under normal condition with no school closures in the fourth quarter of 2020. Thanks to the effective containment of the spread of COVID-19 in China and Singapore, our effective enrollment strategies and our dedicated preparation for the reopening of our facilities, the number of students enrolled in our directly operated kindergartens in China grew from 25,808 at the end of 2019 to 28,648 at the end of 2020, an approximately 11% increase year-over-year. Similarly, we see a 7% increase in the number of students enrolled at our facilities in Singapore compared to the same period of last year.

[解讀]我很高興地報告，我們在中國和新加坡的所有直營幼兒園在 2020 年第四季度都正常運行，沒有學校停課。這得益於有效遏制了 COVID-19 在中國的傳播和新加坡，我們有效的招生策略和我們為重新開放設施所做的專門準備，我們在中國直營幼兒園的入學學生人數從 2019 年底的 25,808 人增加到 2020 年底的 28,648 人，增長約 11%逐年增加。同樣，與去年同期相比，我們在新加坡的設施註冊的學生人數增加了 7%。

(foreign language)

（外語）

[Interpreted] To welcome back our students and make them feel comfortable at kindergarten, we hosted various activities, including drawing contest, sports events, to help them adapt to kindergarten environment and get back to norms with their teachers and fellow students. Our directly operated kindergartens continue to operate with COVID-19 protocols in place with a focus on enhanced cleaning and strict hygienic practices as the health and well-being of students and staff members remains our top priority.

【解讀】為了迎接孩子們的歸來，讓他們在幼兒園感受到舒適，我們舉辦了各種活動，包括繪畫比賽、體育比賽，幫助他們適應幼兒園環境，回歸與老師和同學的正常相處。我們的直營幼兒園繼續按照 COVID-19 協議運營，重點是加強清潔和嚴格的衛生措施，因為學生和工作人員的健康和福祉仍然是我們的首要任務。

We made sure our students' attendance was protected by consistent implementation of layered preventative measures. For example, we've taught all of our students to strictly follow the 7-step hand washing procedures. While we are encouraged by the 100% resumption rate of our directly operated kindergartens in the fourth quarter, given the uncertainties related to COVID-19 and its previous flare ups, we continue to stay alert for any changes and remain active and flexible in our responses and corresponding measures.

我們確保通過持續實施分層預防措施來保護學生的出勤率。例如，我們教導所有學生嚴格遵守 7 步洗手程序。儘管我們對第四季度直營幼兒園 100% 的複工率感到鼓舞，但考慮到與 COVID-19 及其之前爆發相關的不確定性，我們繼續對任何變化保持警惕，並在我們的回應中保持積極和靈活及相應措施。

(foreign language)

（外語）

[Interpreted] For most of our directly operated kindergartens, we continue to implement a rolling enrollment strategy. We host off-line on-site visits by appointment and have online promotions while keeping our timely and effective communication with parents to ease their concerns if there are any. As I've already mentioned, we have achieved a circa 11% increase in the number of students enrolled in our directly operated kindergartens in China at the end of the fourth quarter compared to the same period of last year and a 7% increase of that in Singapore.

【解讀】對於我們大部分的直營幼兒園，我們繼續實施滾動招生策略。線下預約上門，線上推廣，及時有效地與家長溝通，解決家長的後顧之憂。正如我已經提到的，與去年同期相比，第四季度末我們在中國直營幼兒園的入學學生人數增長了約 11%，同比增長了 7%在新加坡。

As of the end of December of 2020, the number of students who had registered with us but did not commence kindergarten after paying the fee was 2,108. All of this have reflected the company's advanced enrollment results and parents' recognition of our services. We'll continue to keep our open dialogue with the parents, taking in their feedback to make improvements to our operations and services while keeping up with our current rolling enrollment practices, especially at those in the ramp-up phase. We stay committed to providing quality early education and are looking forward to providing our services to more students and families.

截至2020年12月底，已註冊但繳費未入園的學生人數為2108人。這一切都體現了公司先進的招生成績和家長對我們服務的認可。我們將繼續與家長保持公開對話，聽取他們的反饋以改進我們的運營和服務，同時跟上我們目前的滾動招生做法，尤其是在那些處於升級階段的做法。我們始終致力於提供優質的早期教育，並期待為更多的學生和家庭提供我們的服務。

(foreign language)

（外語）

[Interpreted] Now moving on to our franchised play-and-learn center business. As mentioned in the previous quarter, more than 90% of the franchised play-and-learn centers resumed normal operations at the end of the third quarter of 2020. However, during the fourth quarter, there were surging recurrences of COVID-19 in some provinces in China. Hence, franchised play-and-learn centers in those regions temporarily suspended operations. At the end of the fourth quarter of 2020, approximately 80% of our franchised play-and-learn centers were back to normal operations again.

[解釋] 現在轉向我們的特許經營遊戲和學習中心業務。如上一季度所述，2020 年第三季度末，超過 90% 的特許經營遊戲中心恢復正常運營。然而，在第四季度，部分地區 COVID-19 的複發率激增中國的省份。因此，這些地區的特許遊戲和學習中心暫時停止運營。到 2020 年第四季度末，我們約 80% 的特許經營遊戲和學習中心再次恢復正常運營。

(foreign language)

（外語）

[Interpreted] The COVID-19 recurrences and seasonality factors caused some impact on new franchisee signing in the fourth quarter of 2020. With the effective control of COVID-19 and the pickup in the economic recovery, the concerns of potential franchisees will gradually ease. Following that, we look forward to a pickup in a number of new signings and new openings of those already in the pipeline. We have increased the number of in-person training events and investment promotions, increased marketing efforts in attracting new franchisees.

【解讀】2020年第四季度，COVID-19的複發和季節性因素對新加盟商的簽約造成了一定的影響。隨著COVID-19的有效控制和經濟復甦的回暖，潛在加盟商的擔憂將逐漸緩解。在那之後，我們期待著一些新的簽約和已經在籌劃中的新開張的增加。我們增加了現場培訓活動和投資促銷活動的數量，加大了吸引新加盟商的營銷力度。

Our R&D team works on upgrading the content for play-and-learn centers, designing new courses and expanding other product offerings, including teaching aid, which all lay a good base for future product sales. Keeping the parents' needs and willingness for their children's education in mind, we're confident that through the company's close relationship with existing franchisees and a strong marketing network, we will be able to enhance our services and expand the varieties of our products, hence to achieve further growth in play-and-learn center business.

我們的研發團隊致力於升級遊戲和學習中心的內容、設計新課程和擴展其他產品，包括教具，這些都為未來的產品銷售奠定了良好的基礎。牢記父母對子女教育的需求和意願，我們有信心通過公司與現有加盟商的密切關係和強大的營銷網絡，我們將能夠加強我們的服務並擴大我們的產品種類，從而以實現遊戲和學習中心業務的進一步增長。

Parents' demand for good early education for their children is still an important factor contributing to the future development of the industry. And it will also be an important driving force for business growth. Through the company's efforts in preschool education services and resources over the years, we believe that franchise play-and-learn center business will be back on track in the coming quarters.

家長對孩子良好早教的需求，依然是推動行業未來發展的重要因素。也將成為業務增長的重要推動力。通過公司多年來在學前教育服務和資源方面的努力，我們相信特許經營的遊戲和學習中心業務將在未來幾個季度重回正軌。

(foreign language)

（外語）

[Interpreted] Lastly, we will further improve the management and service system of directly operated kindergartens, roll out the trial management system for the play-and-learn centers and provide parents with more extended services and at-home content. All our directly operated kindergartens have onboarded kindergarten online management and service system, with the aim of enhancing headquarter's management of directly operated kindergartens and improving the operational efficiency and service quality of those facilities by further improving the functions and interactions of the system, we will try to introduce the management system to other kindergarten operators in the future.

【解讀】最後，進一步完善直營幼兒園管理服務體系，試行學園管理制度，為家長提供更多延伸服務和到家內容。我們所有直營幼兒園均已上線幼兒園在線管理服務系統，為加強總部對直營幼兒園的管理，通過進一步完善系統的功能和交互，提高直營幼兒園的運營效率和服務質量，我們將嘗試日後將管理系統引入其他幼稚園營辦商。

In the fourth quarter of 2020, our management system for play-and-learn center was done and developed. And a pilot rollout was started in some directly operated play-and-learn centers. The system has multiple management modules, such as marketing, sales management, educational administration, data management, membership management and mobile office, an effective tool to help the plan-and-learn centers to achieve standardized operations and refined management.

2020年第四季度，我們的遊學中心管理系統完成開發。並且在一些直接運營的遊戲和學習中心開始了試點推廣。系統擁有市場營銷、銷售管理、教務管理、數據管理、會員管理、移動辦公等多個管理模塊，是幫助規劃學習中心實現標準化運作、精細化管理的有效工具。

(foreign language)

（外語）

[Interpreted] While the COVID-19 pandemic has brought upon challenges, it has also brought along new opportunities and increased demand for more diversified early education. In order to meet the demand, we'll continue to improve our offerings and continue to provide students and parents with diversified online education content and services. We'll continue to deliver quality service offline, and at the same time, accelerate our digitalization process and achieve better online and offline integration to eventually complete a refined O-M-O system infrastructure.

【解讀】COVID-19大流行帶來挑戰的同時，也帶來了新的機遇，也帶來了對更多元化早期教育需求的增長。為滿足需求，我們將不斷完善我們的產品，繼續為學生和家長提供多元化的在線教育內容和服務。我們將繼續在線下提供優質服務，同時加快我們的數字化進程，實現更好的線上線下融合，最終完成精細化的O-M-O系統基礎設施。

(foreign language)

（外語）

[Interpreted] In 2020 the COVID-19 pandemic brought upon tremendous challenges. Since the outbreak, the government undertook a series of stringent restrictions and measures aiming to contain the pandemic. In accordance with these measures and requirements, we promptly adjusted our operations. All of our employees and stock members rose to the challenges and worked diligently during the outbreaks and in the post-pandemic landscape, among other things, never wavering in our dedication to early childhood education.

[解讀]2020年，COVID-19大流行帶來了巨大挑戰。自疫情爆發以來，政府採取了一系列嚴格的限制和措施，旨在遏制大流行。根據這些措施和要求，我們及時調整了經營方式。在疫情期間和疫情過後，我們所有的員工和股東都迎難而上，兢兢業業地工作，從未動搖過我們對幼兒教育的奉獻。

Looking ahead, we will continue to stay on track and deliver integrated quality education services and products to our students and families. As we look forward to the rest of 2021, we firmly believe in our long-term growth potential and look forward to regaining momentum once operations across all of our business fully stabilize. Despite fluid changes in market conditions, our commitment to creating and bringing value to students, families and society remains affirmed.

展望未來，我們將繼續保持正軌，為我們的學生和家庭提供綜合優質的教育服務和產品。展望 2021 年剩餘時間，我們堅信我們的長期增長潛力，並期待在我們所有業務的運營完全穩定後重新獲得動力。儘管市場條件不斷變化，但我們對為學生、家庭和社會創造和帶來價值的承諾仍然得到肯定。

(foreign language)

（外語）

[Interpreted] With that, I'll turn it over to our CFO, Chris, to provide highlights of the fourth quarter and full year 2020 financial results.

[解釋] 有了這個，我將把它交給我們的首席財務官克里斯，以提供第四季度和 2020 年全年財務業績的亮點。

Okay. Thank you, Grace and Serena. I will now go through our fourth quarter and full year financial results. Please also refer to the earnings press release that we posted on our Investor Relations website for a complete review of our financial performance. With the operations recovery across the board in the fourth quarter, our revenues returned to similar levels close to the same period in 2019. As we continue to convert some of our kindergartens to become inclusive ones, there was a slight decrease in revenues from our directly operated kindergartens compared to the same period of last year.

好的。謝謝你們，格蕾絲和瑟琳娜。我現在將介紹我們的第四季度和全年財務業績。另請參閱我們在投資者關係網站上發布的收益新聞稿，以全面了解我們的財務業績。隨著第四季度業務全面恢復，我們的收入恢復到接近 2019 年同期的水平。隨著我們繼續將部分幼兒園轉變為普惠型幼兒園，我們的直接收入略有下降開辦幼兒園與去年同期相比。

At the same time, we see a meaningful increase in our profit margins of the directly operated facilities as well. Looking back at 2020 -- 2019, the COVID-19 pandemic had ongoing impact on the company's business operations for more than half a year. By cutting expenses and reducing costs reasonably, streamlining team structure and adjusting personnel. We successfully navigated through the challenges brought by the COVID-19 pandemic and maintained a relatively healthy cash position by the end of the year 2020.

同時，我們也看到直營設施的利潤率顯著增加。回顧2020-2019年，COVID-19大流行對公司業務運營持續影響超過半年。通過合理節流降本，精簡隊伍結構，調整人員。我們成功應對了 COVID-19 大流行帶來的挑戰，並在 2020 年底前保持了相對健康的現金狀況。

In 2021, we will continue to promote streamlined and refined operations, focusing on providing quality education and improving the company's profitability. We also strengthened our capabilities in providing management and operational services to third-party facility operators, and ultimately to have increasingly diversified revenue sources by creating a unique online-merge-offline business model.

2021年，我們將繼續推進精簡精細化經營，聚焦素質教育，提升公司盈利能力。我們還加強了為第三方設施運營商提供管理和運營服務的能力，並最終通過創建獨特的線上-合併-線下業務模式來擁有日益多元化的收入來源。

Now I will go through our fourth quarter financials briefly. Our net revenues decreased by 7.2% to $47.1 million from $50.7 million for the fourth quarter of 2019. Service revenues for the quarter decreased by 3.7% to $44.9 million. The decrease was primarily caused by smaller initial franchise fee and training fees from franchisees, which is due to the slow recovery of franchise business from the COVID-19 pandemic. For the same reason, product revenues for the fourth quarter decreased by 47.7% to $2.1 million, from $4.1 million for the same quarter in 2019, which is primarily due to a decrease in the amount of the merchandise that we sold through our franchise network.

現在我將簡要介紹一下我們第四季度的財務狀況。我們的淨收入從 2019 年第四季度的 5070 萬美元下降 7.2% 至 4710 萬美元。本季度的服務收入下降 3.7% 至 4490 萬美元。減少的主要原因是特許經營商的初始特許經營費和培訓費減少，這是由於特許經營業務從 COVID-19 大流行中恢復緩慢所致。出於同樣的原因，第四季度的產品收入從 2019 年同期的 410 萬美元下降 47.7% 至 210 萬美元，這主要是由於我們通過特許經營網絡銷售的商品數量減少。

Cost of revenues for the fourth quarter was USD 35.1 million, which is a 14% decrease from $40.9 million over the same period of last year. Cost of revenues for services for the fourth quarter of 2020 was $33.7 million, compared to a $39.1 million for the same quarter in 2019. The decrease was primarily due to decrease in our staff compensation and our direct cost of -- directly operated kindergarten business. Cost of products revenues for the fourth quarter was $1.4 million, compared with $1.8 million for the same quarter last year. The decrease was generally in line with the trend in our product revenues.

第四季度的收入成本為 3510 萬美元，比去年同期的 4090 萬美元下降了 14%。 2020 年第四季度的服務收入成本為 3370 萬美元，而 2019 年同期為 3910 萬美元。下降的主要原因是我們的員工薪酬和我們直接經營的幼兒園業務的直接成本下降。第四季度產品成本收入為 140 萬美元，而去年同期為 180 萬美元。減少與我們產品收入的趨勢基本一致。

Gross profit for the fourth quarter increased by 21% to $11.9 million compared with $9.9 million for the same quarter in 2019. Gross margin was 25.3%, compared with 19.4% for the same quarter last year. Total operating expenses were $10.8 million compared with the $6.5 million for the same quarter of 2019. Selling expenses for the fourth quarter were $0.4 million, compared with $0.7 million for the same quarter last year. General and administrative expenses were $8.2 million which is a 40% increase from the $5.9 million last year. The increase in the G&A expenses was primarily due to a one-off credit loss of $3.8 million for the other receivables and loan receivables. The share-based compensation included in our G&A expenses were $0.7 million for the quarter.

與 2019 年同期的 990 萬美元相比，第四季度的毛利潤增長了 21% 至 1190 萬美元。毛利率為 25.3%，而去年同期為 19.4%。總運營費用為 1080 萬美元，而 2019 年同期為 650 萬美元。第四季度的銷售費用為 40 萬美元，而去年同期為 70 萬美元。一般和行政費用為 820 萬美元，比去年的 590 萬美元增加了 40%。 G&A 費用的增加主要是由於其他應收款和應收貸款的一次性信用損失 380 萬美元。本季度包含在我們 G&A 費用中的基於股份的薪酬為 70 萬美元。

We also recorded an impairment loss on long-lived assets in the amount of $2.1 million for the quarter relating to the intangible assets of our acquired business as well as leasehold improvements of a few directly operated facilities. Operating income for the quarter was $1.2 million compared with $3.3 million for the same quarter last year. Adjusted operating income was $1.9 million for the fourth quarter compared with a $4.2 million over the same quarter of last year.

我們還記錄了本季度 210 萬美元的長期資產減值損失，涉及我們收購業務的無形資產以及一些直接經營設施的租賃改良。本季度營業收入為 120 萬美元，而去年同期為 330 萬美元。第四季度調整後營業收入為 190 萬美元，而去年同期為 420 萬美元。

Net income attributable to ordinary shareholders of RYB for the quarter was $9.3 million compared with a $0.2 million for the same quarter last year. On an adjusted basis, the net income attributable to the ordinary shareholders of the company, which where we exclude the impact of $0.7 million of share-based compensation expense, was $10 million, which is compared to the $1.1 million for the same quarter of last year.

本季度歸屬於紅黃藍普通股股東的淨利潤為 930 萬美元，而去年同期為 20 萬美元。在調整後的基礎上，歸屬於公司普通股股東的淨收入（我們排除了 70 萬美元的股權補償費用的影響）為 1000 萬美元，而去年同期為 110 萬美元年。

In terms of EBITDA, the fourth quarter, we recorded an EBITDA of $5.2 million, compared with $6.7 million for the same quarter of last year.

就 EBITDA 而言，第四季度我們的 EBITDA 為 520 萬美元，而去年同期為 670 萬美元。

Now I'll move on to the unaudited 2020 full year financials. Net revenue for the full year were and $109.7 million, compared with $182.3 million for 2019. Services revenues for 2020 were $103.1 million, compared with $166.2 million for last year. The decrease was primarily due to the temporary closure of our facilities in China caused by the COVID-19 pandemic during most of the first 9 months period.

現在我將繼續討論未經審計的 2020 年全年財務狀況。全年淨收入為 1.097 億美元，而 2019 年為 1.823 億美元。2020 年的服務收入為 1.031 億美元，而去年為 1.662 億美元。減少的主要原因是在前 9 個月的大部分時間裡，由於 COVID-19 大流行導致我們在中國的設施暫時關閉。

Product revenues for the full year were $6.6 million, compared with the $16.1 million for last year. And this is due to a decrease in the amount of merchandise that we sold through the company's franchise network during the COVID-19 pandemic impacted period.

全年產品收入為 660 萬美元，而去年為 1610 萬美元。這是由於在 COVID-19 大流行影響期間我們通過公司的特許經營網絡銷售的商品數量減少。

Cost of revenues for 2020 was $116.9 million, compared with $155.5 million for 2019. Cost of revenues for the full year was $113.3 million, compared with $147.7 million for 2019. The decrease was primarily due to the decrease in staff compensation and decrease in direct cost of our directly operated kindergarten business. Cost of products revenues for this year was $3.6 million, compared with $7.9 million for 2019.

2020 年的收入成本為 1.169 億美元，而 2019 年為 1.555 億美元。全年收入成本為 1.133 億美元，而 2019 年為 1.477 億美元。減少的主要原因是員工薪酬減少和直接成本減少我們直營的幼兒園業務。今年的產品成本收入為 360 萬美元，而 2019 年為 790 萬美元。

Gross loss for the full year of 2020 was $7.2 million, compared to a gross profit of $26.7 million in 2019. Total operating expenses for the full year were $36.2 million, compared with a $26.6 million for 2019. Selling expenses were $1.3 million this year, compared with $2.8 million last year. We also had a total of $24.3 million for general and admin expenses in 2020, compared with the $23.8 million for 2019. The increase was primarily due to a one-off credit loss that we mentioned in the amount of $4.3 million for other receivables and loan receivables incurred in the fourth quarter. And it was also partially offset by the decrease in administrative expenses as a result of the cost control measures to combat the challenges brought by the COVID-19.

2020 年全年的毛虧損為 720 萬美元，而 2019 年的毛利潤為 2670 萬美元。全年的總運營費用為 3620 萬美元，而 2019 年為 2660 萬美元。今年的銷售費用為 130 萬美元，與去年的 280 萬美元相比。與 2019 年的 2380 萬美元相比，我們在 2020 年的一般和管理費用總計為 2430 萬美元。增加的主要原因是我們在其他應收款和貸款的 430 萬美元中提到的一次性信用損失第四季度產生的應收賬款。由於為應對 COVID-19 帶來的挑戰而採取的成本控制措施，管理費用的減少也部分抵消了這一影響。

Impairment loss on goodwill was $8.5 million during 2020, compared with 0 for 2019. Actually, due to the impact of COVID-19 on our business operations, the company concluded that an impairment indicator existed at the end of the first quarter and the fair value of its certain reporting units, primarily those with new initiatives were less than their carrying value. And as a result of the impairment assessments, we determined that there was an impairment loss on goodwill of $8.5 million at the end of the first quarter in 2020. The company also performed impairment analysis at the end of the fourth quarter and concluded that no additional impairment losses required as of the end of 2020.

2020 年商譽減值損失為 850 萬美元，而 2019 年為 0。實際上，由於 COVID-19 對我們業務運營的影響，公司認為第一季度末存在減值跡象，公允價值在其某些報告單位中，主要是那些有新舉措的單位低於其賬面價值。並且作為減值評估的結果，我們確定商譽在 2020 年第一季度末有 850 萬美元的減值損失。該公司還在第四季度末進行了減值分析，得出的結論是沒有額外的截至 2020 年底所需的減值損失。

In addition, impairment loss on our long-lived assets was $2.1 million for the full year, compared with 0 for last year. Operating loss for the full year of 2020 was $43.4 million, compared with an operating profit of $0.2 million for 2019. The impairment loss on long-term investment for the full year was $2.4 million, compared with 0 last year. This is mainly due to the impairment losses on some of our long-term investments at the end of the first and fourth quarter, respectively.

此外，我們長期資產的減值損失全年為 210 萬美元，而去年為 0。 2020 年全年營業虧損為 4340 萬美元，而 2019 年營業利潤為 20 萬美元。全年長期投資減值損失為 240 萬美元，而去年為 0。這主要是由於我們分別在第一季度末和第四季度末對部分長期投資進行了減值損失。

Net loss attributable to ordinary shareholders of RYB for the full year of 2020 was $37.3 million, compared with the $2.4 million in 2019. Adjusted net income attributable to ordinary shareholders of RYB, which excludes the impact of share-based compensation expenses and decrease in redeemable noncontrolling interest for the full year of 2020 was $34.4 million, which is compared to $1.4 million for 2019. And EBITDA for the full year of 2020 was a negative $29.3 million, compared with a positive $12.9 million for 2019.

2020 年全年歸屬於紅黃藍普通股股東的淨虧損為 3730 萬美元，而 2019 年為 240 萬美元。 2020 年全年的非控股權益為 3440 萬美元，而 2019 年為 140 萬美元。2020 年全年的 EBITDA 為負 2930 萬美元，而 2019 年為正 1290 萬美元。

In terms of business outlook. For the first quarter of 2021, the management currently expects net revenues to be between $35 million and $36 million. And this is representing a year-on-year increase of approximately 102% to 108%. For the full year of 2021, the management expects net revenues to be between $188 million and $192 million, representing a year-over-year increase of approximately 71% to 75%. The above outlook is based on the current market conditions and reflects the management's current and preliminary estimates of market and operating conditions, customer demand and foreign exchange environment, all of which are subject to change.

在商業前景方面。對於 2021 年第一季度，管理層目前預計淨收入將在 3500 萬美元至 3600 萬美元之間。這意味著同比增長約 102% 至 108%。對於 2021 年全年，管理層預計淨收入將在 1.88 億美元至 1.92 億美元之間，同比增長約 71% 至 75%。上述展望基於當前市場狀況，反映了管理層對市場和經營狀況、客戶需求和外匯環境的當前和初步估計，所有這些都可能發生變化。

Thank you for your attention. We will now open the call to questions. Operator, please go ahead. Thank you.

感謝您的關注。我們現在將開始提問。接線員，請繼續。謝謝。

(Operator Instructions)

（操作員說明）

And as there are no questions at this time, I would like to return the conference back over to the company for any closing comments.

由於此時沒有問題，我想將會議返回給公司以徵求任何結束意見。

Thank you. Thank you to everyone for joining us today. If you have any further questions, please do not hesitate to contact us at ir@rybbaby.com. We hope you have a great day.

謝謝。感謝大家今天加入我們。如果您有任何其他問題，請隨時通過 ir@rybbaby.com 與我們聯繫。我們希望你有一個美好的一天。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect your lines.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開線路。

[Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

[此記錄中標記為 [已翻譯] 的部分由現場通話中的口譯員說出。]