TCTM Kids IT Education (TCTM) 20-F24 Apr 202018 FY Annual report (foreign)Financial data

Company Profile

Document And Entity Information

Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2018shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Entity Registrant Name	Tarena International, Inc.
Entity Emerging Growth Company	false
Entity Central Index Key	0001592560
Entity Current Reporting Status	No
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Shell Company	false
Entity Interactive Data Current	Yes
Entity Voluntary Filers	No
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Ordinary Shares [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	53,079,496
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	45,873,437
ADR [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	907,626
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	7,206,059

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Millions	Dec. 31, 2018CNY (¥)	Dec. 31, 2017CNY (¥)
Current assets:
Cash and cash equivalents (including cash of VIEs of RMB294 and RMB1,376 as of December 31, 2017 and 2018, respectively)		¥ 686,691
Time deposits	¥ 158,585	432,536
Restricted cash	14,700
Accounts receivable, net of allowance for doubtful accounts	39,901	51,643
Amounts due from related party	9,938	6,942
Prepaid expenses and other current assets	171,466	155,707
Total current assets	925,574	1,333,519
Time deposits	517	505
Accounts receivable, net of allowance for doubtful accounts-non current	12,157	6,404
Amounts due from a related party	6,500	6,500
Property and equipment, net (including property and equipment, net of VIEs of nil and RMB 2,652 as of December 31, 2017 and 2018, respectively)	626,068	502,339
Intangible assets, net	19,046	4,753
Goodwill	52,782	3,365
Long-term investments, including long term investments of VIEs of RMB 46,500 and RMB 38,380 as of December 31, 2017 and 2018, respectively)	59,651	77,170
Deferred income tax assets (including deferred tax assets of VIEs of RMB 684 and 916 as of December 31, 2017 and 2018, respectively)	53,752	5,621
Other non-current assets (including other non-current assets of VIEs of RMB 2,880 and 333 as of December 31, 2017 and 2018, respectively)	122,000	78,251
Total assets	1,878,047	2,018,427
Current liabilities:
Short-term bank loan	13,726
Accounts payable	18,529	11,351
Amounts due to related parties	872	216
Income taxes payable (including income taxes payable of VIEs of RMB3,052 and RMB3,398 as of December 31, 2017 and 2018, respectively)	71,847	67,333
Deferred revenue	830,019	352,260
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of VIEs of RMB 186 and RMB 2,115 as of December 31, 2017 and 2018, respectively)	365,428	313,429
Total current liabilities	1,300,421	744,589
Other non-current liabilities (including other non-current liabilities of VIEs of RMB 267 and RMB 267 as of December 31, 2017 and 2018, respectively)	5,983	4,329
Total liabilities	1,306,404	748,918
Commitments and contingencies
Shareholders' equity:
Treasury shares (3,330,646 and 7,099,141 Class A ordinary shares as of December 31, 2017 and 2018, respectively, at cost)	(457,169)	(255,103)
Additional paid-in capital	1,222,072	1,094,872
Accumulated other comprehensive income	50,472	39,372
Retained earnings (accumulated deficit)	(243,162)	389,967
Total equity attributable to the shareholders of Tarena International, Inc.	572,618	1,269,509
Non-controlling interest	(975)
Total liabilities and equity	1,878,047	2,018,427
Common Class A [Member]
Shareholders' equity:
Ordinary shares	331	327
Common Class B [Member]
Shareholders' equity:
Ordinary shares	¥ 74	¥ 74

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash		¥ 686,691
Property and equipment, net	¥ 626,068	502,339
Long-term Investments	59,651	77,170
Deferred income tax assets	4,162	5,648
Other non-current assets	122,000	78,251
Current liabilities:
Income taxes payable	71,847	67,333
Accrued expenses and other current liabilities	365,428	313,429
Other non-current liabilities	¥ 5,983	¥ 4,329
Common Class A [Member]
Ordinary shares
Ordinary shares, par value	¥ 0.001	¥ 0.001
Authorized	860,000,000	860,000,000
Issued	52,972,578	52,340,176
Outstanding	45,873,437	49,009,530
Treasury shares	7,099,141	3,330,646
Common Class B [Member]
Ordinary shares
Ordinary shares, par value	¥ 0.001	¥ 0.001
Authorized	40,000,000	40,000,000
Issued	7,206,059	7,206,059
Outstanding	7,206,059	7,206,059
VIE [Member]
Current assets:
Cash	¥ 1,376	¥ 294
Property and equipment, net	2,652	0
Investments, Fair Value Disclosure	38,380	46,500
Deferred income tax assets	916	684
Other non-current assets	333	2,880
Current liabilities:
Income taxes payable	3,398	3,052
Accrued expenses and other current liabilities	2,115	186
Other non-current liabilities	¥ 267	¥ 267

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CNY (¥) ¥ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Cost of revenues	[1]	¥ (918,549)	¥ (592,946)
Gross profit		1,166,822	1,160,749
Selling and marketing expenses	[1]	(1,047,632)	(707,157)
General and administrative expenses	[1]	(546,568)	(354,832)
Research and development expenses	[1]	(167,254)	(100,032)
Operating income (loss)		(594,632)	(1,272)
Interest income		26,200	16,097
Other income (loss)		(33,583)	16,702
Loss on foreign currency forward contract
Foreign currency exchange gains (loss)		4,951	(6,284)
Income (loss) before income taxes		(597,064)	25,243
Income tax (expense) benefit		4,865	(25,390)
Net income (loss)		(592,199)	(147)
Less: Net loss attributable to non-controlling interests		(2,025)
Net income (loss) attributable to Class A and Class B ordinary shareholders		¥ (590,174)	¥ (147)
Basic earnings (loss) per Class A and Class B ordinary share		¥ (10.744)	¥ (0.003)
Diluted earnings (loss) per Class A and Class B ordinary share		¥ (10.744)	¥ (0.003)
Net income (loss)		¥ (592,199)	¥ (147)
Other comprehensive income (loss)
Foreign currency translation adjustment, net of nil income taxes		11,100	(13,832)
Unrealized holding gains (loss) on available for sale securities, net of RMB 42, RMB 2,818 and RMB nil income taxes for year 2016, 2017 and 2018			11,496
Less: Other-than-temporary impairment loss recognized in other comprehensive loss (before tax)			(5,000)
Comprehensive income (loss)		¥ (581,099)	¥ (18,979)

[1]	(a) Includes share-based compensation expense as follows (note 16):

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Foreign currency translation adjustment, taxes
Share-based compensation expense	(124,253)	(77,415)	(67,824)
Unrealized holding gains on available for sale securities	0	2,818	42
Reclassification adjustment for gains on available for sale securities realized in net income taxes	0	2,818	42
Cost of revenues [Member]
Share-based compensation expense	(2,265)	(1,285)	(4,124)
Selling and marketing expenses [Member]
Share-based compensation expense	(8,866)	(4,863)	(5,496)
General and administrative expenses [Member]
Share-based compensation expense	(84,645)	(60,491)	(51,154)
Research and development expenses [Member]
Share-based compensation expense	¥ (28,477)	¥ (10,776)	¥ (7,050)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CNY (¥) ¥ in Thousands	Ordinary Shares [Member]Common Class A [Member]	Ordinary Shares [Member]Common Class B [Member]	Treasury Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings (accumulated deficit) [Member]	Non-controlling Interest [Member]	Common Class A [Member]	Common Class B [Member]	Total
Balance at Dec. 31, 2015	¥ 276	¥ 98	¥ (49,355)	¥ 907,018	¥ 30,232	¥ 281,107				¥ 1,169,376
Balance, shares at Dec. 31, 2015	44,914,538	10,574,896
Net income (loss)						226,120				226,120
Conversion of Class B ordinary shares to Class A ordinary shares	¥ 12	¥ (12)
Conversion of Class B ordinary shares to Class A ordinary shares (shares)	1,679,647	(1,679,647)
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares	¥ 14			20,374						20,388
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares)	2,141,043
Foreign currency translation adjustment, net of nil income taxes					22,972					22,972
Share-based compensation				67,824						67,824
Unrealized holding gains on available-for-sale security					5,235					5,235
Reclassification adjustment for gains on available for sale securities realized in net income					(235)					(235)
Dividends						(54,026)				(54,026)
Repurchase of Class A ordinary shares			(44,406)							(44,406)
Balance at Dec. 31, 2016	¥ 302	¥ 86	(93,761)	995,216	58,204	453,201				1,413,248
Balance, shares at Dec. 31, 2016	48,735,228	8,895,249
Net income (loss)						(147)				(147)
Conversion of Class B ordinary shares to Class A ordinary shares	¥ 12	¥ (12)
Conversion of Class B ordinary shares to Class A ordinary shares (shares)	1,689,190	(1,689,190)
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares	¥ 13			22,241						22,254
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares)	1,915,758
Foreign currency translation adjustment, net of nil income taxes					(13,832)					(13,832)
Share-based compensation				77,415						77,415
Unrealized holding gains on available-for-sale security					11,496					11,496
Reclassification adjustment for gains on available for sale securities realized in net income					(16,496)
Dividends						(63,087)				(63,087)
Repurchase of Class A ordinary shares			(161,342)							(161,342)
Balance at Dec. 31, 2017	¥ 327	¥ 74	(255,103)	1,094,872	39,372	389,967				1,269,509
Balance, shares at Dec. 31, 2017	52,340,176	7,206,059						52,340,176	7,206,059
Net income (loss)						(590,174)	¥ (2,025)			(592,199)
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares	¥ 4			2,947						2,951
Issuance of Class A ordinary shares upon exercise of share options and vesting of non-vested shares (shares)	632,402
Foreign currency translation adjustment, net of nil income taxes					11,100					11,100
Non-controlling interest							1,050			1,050
Share-based compensation				124,253						124,253
Dividends						(42,955)				(42,955)
Repurchase of Class A ordinary shares			(202,066)							(202,066)
Balance at Dec. 31, 2018	¥ 331	¥ 74	¥ (457,169)	¥ 1,222,072	¥ 50,472	¥ (243,162)	¥ (975)			¥ 571,643
Balance, shares at Dec. 31, 2018	52,972,578	7,206,059						52,972,578	7,206,059

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Foreign currency translation adjustment, taxes
Unrealized holding gains on available for sale securities, net of income taxes	0	2,818	42
Reclassification adjustment for gains on available for sale securities realized in net income taxes	¥ 0	¥ 2,818	¥ 42

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities:
Net income (loss)	¥ (592,199)	¥ (147)	¥ 226,120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	158,757	100,763	73,636
Loss on disposal of property and equipment	1,238	917	297
Deferred income tax benefit	(46,595)	(1,171)	(1,547)
Share based compensation expense	124,253	77,415	67,824
Investment (income) loss	1,548	47	(71)
Foreign currency exchange (gain) loss, net	(4,440)	6,097	(33,405)
Impairment of long term investments	35,524	10,000
Changes in operating assets and liabilities
Accounts receivable	6,000	(30,466)	3,994
Amount due from a related party	(2,996)	(1,964)	(3,753)
Inventory	(971)
Prepaid expenses and other current assets	(3,454)	(33,126)	(65,491)
Accrued interest income on time deposits	9,814	1,809	5,264
Other non-current assets	(15,986)	6,581	(5,707)
Accounts payable	(390)	(196)	(248)
Fund wired to a related party	(22,488)
Fund received from a related party	22,488
Amounts due to related parties	656	(310)	(800)
Income taxes payable	2,978	17,049	27,043
Deferred revenue	445,854	23,477	123,373
Accrued expenses and other current liabilities	44,128	127,534	82,077
Other non-current liabilities	(638)	(2,604)	(2,559)
Net cash provided by operating activities	163,081	301,705	496,047
Investing activities:
Purchase of property and equipment and intangible assets	(276,253)	(176,819)	(383,675)
Proceeds from disposal of property and equipment	8,905	423	446
Purchase of short-term investments	0	(950,000)	(420,000)
Proceeds from maturity of short-term investments		950,000	420,000
Purchase of long-term investments	(14,580)	(50,500)	(12,755)
Payment of long-term investment deposit		(4,380)
Purchase of time deposits	(284,166)	(515,739)	(638,170)
Proceeds from maturity of time deposits	563,354	534,958	925,386
Payment for acquisition of Hanru Hangzhou			(4,360)
Cash acquired from acquisition of Hanru Hangzhou			148
Payment for acquisition of Hao Xiao Zi	(57,700)
Cash acquired from acquisition of Hao Xiao Zi	11,424
Issuance of loan to a related party			(6,500)
Issuance of loans to employees	(69,784)	(30,626)	(12,143)
Proceeds from repayment of loans from employees	26,823	6,139	3,157
Net cash used in investing activities	(91,977)	(236,544)	(128,466)
Financing activities:
Proceeds from bank borrowing	13,228
Contribution from non-controlling entities	1,050
Issuance of Class A ordinary shares in connection with exercise of share options	2,952	22,254	20,388
Payment of dividend	(42,955)	(63,087)	(54,026)
Repurchase of treasury shares	(196,957)	(143,389)	(44,406)
Net cash used in financing activities	(222,682)	(184,222)	(78,044)
Changes in cash and cash equivalents	(151,578)	(119,061)	289,537
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash	10,571	(4,920)	7,197
Net change in cash, cash equivalents and restricted cash	(141,007)	(123,981)	296,734
Cash, cash equivalents and restricted cash at beginning of year	686,691	810,672	513,938
Cash, cash equivalents and restricted cash at end of year		686,691	810,672
Supplemental disclosure of cash flow information:
Income taxes paid	37,216	9,615	2,724
Non-cash investing and financing activities:
Accrual for purchase of equipment	18,292	10,737	¥ 3,692
Payable for repurchase of treasury shares	¥ 5,109	¥ 17,953

DESCRIPTION OF BUSINESS, ORGANI

DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS	12 Months Ended
	Dec. 31, 2018
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS
DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS	1 DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (a) Description of business Tarena International, Inc. (“Tarena International”), through its wholly-owned subsidiaries and consolidated variable interest entities or VIEs (collectively referred to hereinafter as the “Company”), is principally engaged in providing professional education services including professional information technology (“IT”) training courses and non-IT training courses across the People’s Republic of China (“PRC”). The Company is also engaged in providing IT and non-IT training courses for children. All of the Company’s operations are located in the PRC with nearly all of its customers located in the PRC. (b) Organization Tarena International is a holding company that was incorporated in the Cayman Islands on October 8, 2003 by Mr. Han Shaoyun (“Mr. Han”), the founder and former chief executive officer of the Company, and five other individuals. Tarena International is the parent company of a number of wholly-owned subsidiaries that are engaged in professional education services. The Company’s education services in certain locations of the PRC were previously conducted through Beijing Tarena Jinqiao Technology Co., Ltd. (“Beijing Tarena”) and Shanghai Tarena Software Technology Co., Ltd. (“Shanghai Tarena”) (collectively, the “Tarena Entities”), and their subsidiaries, in order to comply with the PRC laws and regulations which restricted foreign investments in companies that were engaged in education services. Pursuant to the VIE Agreements as described below, Tarena International has effective financial control over Tarena Entities and their initial capital funding was provided by Tarena Technologies Inc., (a wholly-owned subsidiary of Tarena International or the “WFOE”, formerly known as Beijing Tarena Technology Co., Ltd.). The recognized and unrecognized revenue-producing assets that were held by Tarena Entities and their subsidiaries primarily consisted of property and equipment, operating leases for the learning premises, ICP license, www.tmooc.cn website and assembled workforce in those learning centers. In 2016, Beijing Tarena received additional capital injection of RMB3,000 through its nominee equity holders. All of the equity interests of Tarena Entities are legally held by Mr. Han and Mr. Li Jianguang (“Mr. Li”), a director of Tarena International. Both individuals are nominee equity holders of Tarena Entities and holding their equity interests on behalf of Tarena International. Through a series of contractual agreements and arrangements (the “VIE Agreements”), among Tarena International, WFOE, Tarena Entities and their nominee equity holders, the nominee equity holders of Tarena Entities have granted all their legal rights including voting rights and disposition rights of their equity interests in Tarena Entities to Tarena International. The nominee equity holders of Tarena Entities do not participate significantly in income and loss and do not have the power to direct the activities of the Tarena Entities that most significantly impact their economic performance. Accordingly, the Tarena Entities are considered variable interest entities. In accordance with Accounting Standards Codification (“ASC”) 810‑10‑25‑38A, Tarena International has a controlling financial interest in Tarena Entities because Tarena International has (i) the power to direct activities of Tarena Entities that most significantly impact the economic performance of Tarena Entities; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of Tarena Entities that could potentially be significant to Tarena Entities. Thus, Tarena International is the primary beneficiary of the Tarena Entities. Under the terms of the VIE Agreements, Tarena International has (i) the right to receive economic benefits that could potentially be significant to Tarena Entities in the form of service fees under the exclusive business cooperation agreements; (ii) the right to receive all dividends declared by Tarena Entities and the right to all undistributed earnings of Tarena Entities; (iii) the right to receive the residual benefits of Tarena Entities through its exclusive option to acquire 100% of the equity interests in Tarena Entities, to the extent permitted under PRC law. Accordingly, Tarena International is the primary beneficiary of the Tarena Entities and the financial statements of Tarena VIE Entities are consolidated in Tarena International’s consolidated financial statements. Under the terms of the VIE Agreements, Tarena Entities’ nominee equity holders have no rights to the net assets nor have the obligations to fund the deficit, and such rights and obligations have been vested to Tarena International. All of the equity (net assets) and net income of Tarena Entities are attributed to Tarena International. The key terms of the VIE Agreements are as follows: Loan Agreements: The WFOE provided RMB6,000 loans in aggregate to Tarena Entities’ nominee equity holders for the sole purpose of their contribution of Tarena Entities’ registered capital. The nominee equity holders of Tarena Entities can only repay the loans by transferring all of their legal equity interest in Tarena Entities to the WFOE or its designated representatives pursuant to the exclusive option agreements. The loans shall be interest-free, unless the transfer price exceeds the principal of the loans when each nominee equity holder of Tarena Entities transfers his equity interests in Tarena Entities to Tarena International or its designated representatives. Such excess over the principal of the loan shall be deemed as the interest of the loans to the extent permitted under the PRC law. The initial terms of the loans expire in 2026, which can be extended with the written notice of both the WFOE and Tarena Entities before expiration. In March 2017, the Company dissolved Shanghai Tarena and obtained the repayment of RMB1,000 from Shanghai Tarena’s nominee equity holders. Exclusive Option Agreements: Each of the nominee equity holders irrevocably granted Tarena International, Inc. or its designated representatives an exclusive option to purchase, to the extent permitted under PRC law, all or part of his equity interests in Tarena Entities. In addition, Tarena International has the option to acquire the equity interests of Tarena Entities for a specified price equal to the loan provided by the WFOE to the nominee equity holders. If the lowest price permitted under PRC law is higher than the above price, the lowest price permitted under PRC law shall apply. Without Tarena International’s prior written consent, the nominee equity holders shall not sell, transfer, mortgage, or otherwise dispose any equity interests in Tarena Entities. These agreements will remain effective until all equity interests held in Tarena Entities by the nominee equity holders are transferred or assigned to Tarena International or its designated representatives. Exclusive Business Cooperation Agreements: The WFOE has the exclusive right to provide, among other things, technical support, business support and related consulting services to Tarena Entities and Tarena Entities agree to accept all the consultation and services provided by the WFOE. Without the WFOE’s prior written consent, Tarena Entities are prohibited from engaging any third party to provide any of the services under this agreement. In addition, the WFOE exclusively owns all intellectual property rights arising out of or created during the performance of this agreement. Tarena Entities agree to pay a monthly service fee to the WFOE at an amount determined solely by the WFOE after taking into account factors including the complexity and difficulty of the services provided, the time consumed, the seniority of the WFOE employees providing services to Tarena Entities, the value of services provided, the market price of comparable services and the operating conditions of Tarena Entities. Furthermore, to the extent permitted under the PRC law, the WFOE agrees to provide financial support to Tarena Entities. The term of the agreement will remain effective unless the WFOE terminates the agreement in writing or a competent governmental authority rejects the renewal applications by either Tarena Entities or the WFOE to renew its respective business license upon expiration. Tarena Entities are not permitted to terminate this agreement in any event unless required by applicable laws. Power of Attorney: Each nominee equity holder of Tarena Entities appointed the WFOE as the attorney-in-fact to act on all matters pertaining to Tarena Entities and to exercise all of their rights as an equity holder of Tarena Entities, including but not limited to attend shareholders’ meetings, vote on their behalf on all matters of Tarena Entities requiring shareholders’ approval under PRC laws and regulations and the articles of association of Tarena Entities, designate and appoint directors and senior management members. The WFOE may authorize or assign its rights under this appointment to any other person or entity at its sole discretion without prior notice to the nominee equity holders of Tarena Entities. Each power of attorney will remain effective until the nominee equity holder ceases to hold any equity interest in Tarena Entities. Equity Interest Pledge Agreements: Pursuant to the equity interest pledge agreement, Tarena Entities’ nominee equity holders pledged all of their equity interests in Tarena Entities to the WFOE to guarantee their performance of the obligations under the contractual arrangements including but not limited to, the service fees due to the WFOE. If Tarena Entities or any of Tarena Entities’ nominee equity holders breaches its contractual obligations under the contractual arrangements, the WFOE, as the pledgee, will be entitled to certain rights and entitlements, including receiving proceeds from the auction or sale of whole or part of the pledged equity interests of Tarena Entities in accordance with legal procedures. The WFOE has the right to receive dividends generated by the pledged equity interests during the term of the pledge. If any event of default as provided in the contractual arrangements occurs, the WFOE, as the pledgee, will be entitled to dispose of the pledged equity interests in accordance with PRC laws and regulations. The equity interest pledge agreements became effective on the date when the agreements were duly executed. The pledge was registered with the relevant local administration for industry and commerce in December 2013 and April 2017 and will remain binding until Tarena Entities and their nominee equity holders discharge all their obligations under the contractual arrangements. The registration of the equity pledge enables the WFOE to enforce the equity pledge against third parties who acquire the equity interests of Tarena Entities in good faith. Tarena International relies on the VIE Agreements to operate and control the Tarena Entities. However, these contractual arrangements may not be as effective as direct equity ownership in providing Tarena International with control over Tarena Entities. Any failure by Tarena Entities or the nominee equity holders to perform their obligations under the VIE Agreements would have a material adverse effect on the consolidated financial position and consolidated financial performance of the Company. All the VIE Agreements are governed by PRC law and provide for the resolution of disputes through arbitration in the PRC. Accordingly, these contracts would be interpreted in accordance with PRC law and any disputes would be resolved in accordance with PRC legal procedures. The legal system in the PRC is not as developed as some other jurisdictions, such as the United States. As a result, uncertainties in the PRC legal system could limit Tarena International’s ability to enforce these contractual arrangements. In addition, if the legal structure and the VIE Agreements were found to be in violation of any existing or future PRC laws and regulations, Tarena International may be subject to fines or other legal or administrative sanctions. In the opinion of management, based on the legal opinion obtained from the Company’s PRC legal counsel, the above contractual arrangements are legally binding and enforceable and do not violate current PRC laws and regulations. However, there are uncertainties regarding the interpretation and application of existing and future PRC laws and regulations. Accordingly, Tarena International cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and the VIE Arrangements are found to be in violation of any existing or future PRC laws and regulations, the PRC government could: · revoke the business and operating licenses of the WFOE, its subsidiaries and Tarena Entities; · discontinue or restrict the conduct of any transactions between the WFOE, its subsidiaries and Tarena Entities; · impose fines, confiscate the income from Tarena Entities, or impose other requirements with which the Company may not be able to comply; · require Tarena International to restructure its ownership structure or operations, including terminating the contractual arrangements with Tarena Entities and deregistering the equity pledges of Tarena Entities; and · restrict or prohibit the use of the proceeds of future offering to finance the Company’s business and operations in the PRC. If the imposition of any of these government actions causes Tarena International to lose its right to direct the activities of Tarena Entities or its right to receive substantially all the economic benefits and residual returns from Tarena Entities and Tarena International is not able to restructure its ownership structure and operations in a satisfactory manner, Tarena International would no longer be able to consolidate the financial results of Tarena Entities and their subsidiaries. In the opinion of management, the likelihood of deconsolidation of the Tarena Entities and their subsidiaries is remote based on current facts and circumstances. The equity interests of Tarena Entities are legally held by Mr. Han and Mr. Li as nominee equity holders on behalf of the Company. Mr. Han and Mr. Li are also directors of Tarena International. Mr. Han and Mr. Li each holds 68.9% and 0.1% of the total voting rights as of December 31, 2018, respectively, assuming the exercise of all outstanding options held by Mr. Han and Mr. Li as of such date. The Company cannot assure that when conflicts of interest arise, either of the nominee equity holders will act in the best interests of the Company or such conflicts will be resolved in the Company’s favor. Currently, the Company does not have any arrangements to address potential conflicts of interest between the nominee equity holders and the Company, except that Tarena International could exercise the purchase option under the exclusive option agreement with the nominee equity holders to request them to transfer all of their equity ownership in Tarena Entities to a PRC entity or individual designated by Tarena International. The Company relies on the nominee equity holders, who are both Tarena International’s directors and who owe a fiduciary duty to Tarena International, to comply with the terms and conditions of the contractual arrangements. Such fiduciary duty requires directors to act in good faith and in the best interests of Tarena International and not to use their positions for personal gains. If the Company cannot resolve any conflict of interest or dispute between the Company and the nominee equity holders of Tarena Entities, the Company would have to rely on legal proceedings, which could result in disruption of the Company’s business and subject the Company to substantial uncertainty as to the outcome of any such legal proceedings. The Company’s involvement with Tarena Entities under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. The assets and liabilities of Tarena Entities and their subsidiaries that were included in the accompanying consolidated financial statements as of December 31, 2017 and 2018 are as follows: December 31, 2017 2018 RMB RMB Cash 294 1,376 Amounts due from related parties 33,744 34,335 Prepaid expenses and other current assets 1 617 Total current assets 34,039 36,328 Property and equipment, net — 2,652 Long term investments 46,500 38,380 Deferred income tax assets 684 916 Other non-current assets 2,880 333 Total assets 84,103 78,609 Income taxes payable 3,052 3,398 Accrued expenses and other current liabilities 186 2,115 Amounts due to related parties, including amounts due to WFOE for accrued service fees 78,665 89,884 Total current liabilities 81,903 95,397 Other non-current liabilities 267 267 Total liabilities 82,170 95,664 Amounts due from/to related parties represents the amounts due from/to Tarena International and its wholly-owned subsidiaries, which are eliminated upon consolidation. The financial performance and cash flows of Tarena Entities and their subsidiaries that were included in the accompanying consolidated financial statements for the years ended December 31, 2016, 2017 and 2018 are as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenues — — 4,232 Net income (loss) 99 (11,597) (16,900) Net cash used in operating activities (727) (2,996) 1,540 Net cash used in investing activities (11,886) (29,380) (24,083) Net cash provided by financing activities 12,200 32,040 23,625 All of the assets of Tarena Entities and their subsidiaries can be used only to settle obligations of Tarena Entities and their subsidiaries. None of the assets of Tarena Entities and their subsidiaries have been pledged or collateralized. The creditors of Tarena Entities and their subsidiaries do not have recourse to the general credit of Tarena International and its wholly-owned subsidiaries. Assets of Tarena Entities and their subsidiaries that can be used only to settle obligations of Tarena Entities and their subsidiaries and liabilities of Tarena Entities and their subsidiaries for which creditors (or beneficial interest holders) do not have recourse to the general credit of Tarena International and its wholly owned subsidiaries have been presented parenthetically alongside each balance sheet caption on the face of the consolidated balance sheets. During the periods presented, Tarena International and its wholly-owned subsidiaries provided financial support to Tarena Entities that they were not previously contractually required to provide in the form of advances. To the extent Tarena Entities require financial support, pursuant to the exclusive business cooperation agreements, the WFOE may, at its option and to the extent permitted under the PRC law, provide such support to Tarena Entities through loans to Tarena Entities’ nominee equity holders or entrustment loans to Tarena Entities. (c) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). (d) Significant concentrations and risks Revenue concentration A substantial portion of the Company’s total net revenues are generated from Java, Digital Arts, and Web Front courses. The percentages of the Company’s total net revenues from Java, Digital Arts and Web Front training courses are as follows: Year Ended December 31, 2016 2017 2018 Digital Arts 26.7 % 31.5 % 28.7 % Java 32.9 % 32.0 % 18.3 % Web Front 12.9 % 7.0 % 3.9 % Total 72.5 % 70.5 % 50.9 % The Company expects net revenues from these three training courses to continue to represent a majority portion of its total net revenues in the future. Negative factors that adversely affect net revenues generated by these three training courses will have a material adverse effect on the Company’s business, financial condition and results of operations. There were no other courses that represented revenues greater than 10% of total revenues. A substantial portion of the Company’s students financed their tuition fees through the loans offered to them by financial service providers including Baidu Small Loan Co., Ltd., Bank of China Consumer Finance Co., Ltd., Beijing Ronglian Shiji Information Technology Co., Ltd., and Qianchengyi during the 3-year period ended December 31, 2018. The Company expects students financed by these companies to continue to represent a major portion of its total students in the future. The Company believes other companies could provide similar loans to its students on comparable terms. However, negative factors that adversely affect these companies will have a material adverse effect on the Company’s business, financial condition and results of operations. Geographic concentration The percentages of the Company’s total net revenues generated from its business operations in Beijing are 16.0%, 13.6% and 13.5% for the years ended December 31, 2016, 2017 and 2018, respectively. The Company expects revenues derived from its business operations in Beijing to continue to be greater than 10% of total revenue in the future. Negative factors that adversely affect professional education services in Beijing will have a material adverse effect on the Company’s business, financial condition and results of operations. There were no other cities that represented revenues greater than 10% of total revenues.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation The consolidated financial statements include the financial statements of Tarena International, its wholly-owned subsidiaries, VIEs in which Tarena International is the primary beneficiary and their wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. (b) Liquidity Condition For the year ended December 31, 2018, the Company incurred a net loss from operations of RMB592.2 million. As of December 31, 2018, the Company had net current liability of RMB374.8 million. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses in the foreseeable future. If management is not able to increase revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to achieve profitability. Despite of the net loss for the year ended December 31, 2018, which included non-cash components of depreciation and amortization amounting to RMB159 million, share based compensation expense amounting to RMB124 million, and impairment loss of long-term investments amounting to RMB36 million, for the years ended December 31, 2016, 2017 and 2018, the Company generated net cash inflows from operating activities amounting to RMB496 million, RMB302 million, and RMB163 million, respectively. The Company expects a limited amount of net operating cash outflow, if not a net operating cash inflow, for the year ended December 31, 2019, taking into consideration of the significant expenses with respect to the Investigation as further discussed in Note 3 to the consolidated financial statements. As of December 31, 2018, the Company’s deferred revenue liability of RMB830 million does not represent potential cash outflows but will be recognized as revenue in the future as the Company provides the services in the end. For the next 12 months from the issuance date of this report, the Company plans to continues implementing various measures to boost revenue and controlling the cost and expenses within an acceptable level by offering online courses to all students, negotiating for relief or postpone of rentals for this special period of time and seeking for certain credit facilities, implementing comprehensive budget control and operation assessment, implementing enhanced vendor review and selection processes as well as enhancing internal controls on payable management, and creating synergy of the Company’s resources, which has considered the impact of COVID-19 as disclosed in Note 22 to the consolidated financial statements. Given the considerable gross margin ratio in its operations and the expected net operating cash inflow mentioned above, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of this report. (c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimated stand-alone selling price under ASC 606, the guarantee liability under ASC Topic 460, the fair values of share-based compensation awards, goodwill impairment and long term investments, the collectability of accounts receivable, the realizability of deferred income tax assets, the accruals for other contingencies, the recoverability of the carrying amounts of property and equipment and the useful lives of property and equipment. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. To allocate the transaction price for contracts with multiple deliverables and estimate the standalone selling price, the Company considers market data, including its pricing strategies for the products being evaluated and other similar products it offers, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin. (d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the identifiable assets and liabilities based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. (e) Foreign currency The functional currency of Tarena International and Tarena Hong Kong Limited (“Tarena HK”) is the USD. The functional currency of Taiwan Tarena Counseling Software Co., Ltd. is the TWD. The functional currency of Tarena International’s PRC subsidiaries, consolidated VIEs, and the subsidiaries of the VIEs is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive income (loss). Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive income (loss) within shareholders’ equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. (f) Cash, cash equivalents, restricted cash and time deposits Cash consist of cash on hand and cash in bank, which are unrestricted as to withdrawal. Cash equivalents consist of interest-bearing certificates of deposit with initial term of no more than three months when purchased. Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets. Restricted cash is the deposit as collateral for the USD$2 million bank loan with a period of 12 months. Cash, cash equivalents, time deposits and restricted cash maintained at financial institutions consist of the following: December 31, 2017 2018 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 910,804 511,866 US dollar denominated bank deposits with financial institutions in the PRC 135,686 131,129 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 4,387 53,148 HK dollar denominated bank deposits with financial institutions in HK SAR 1 15 RMB denominated bank deposits with a financial institution in HK SAR 21 147 US dollar denominated bank deposits with a financial institution in the U.S. 68,795 6,311 TWD denominated bank deposits with a financial institution in Taiwan — 2,170 Total 1,119,694 704,786 To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, Taiwan and the U.S. with acceptable credit rating. (g) Short-term investment During the years ended December 31, 2016, 2017 and 2018, the Company invested RMB420,000, RMB950,000 and nil, respectively, in financial products managed by one financial institution in the PRC. The terms of the financial products range between 7 days and 84 days. All of these financial products matured before December 31, 2016, 2017 and 2018, respectively. The Company earned investment income of RMB12,676, RMB19,314 and nil, respectively on the financial products, which was included in other income (loss) in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2016, 2017 and 2018. (h) Accounts receivable Accounts receivable primarily represent tuition fees due from students. Accounts receivable which are due over one year as of the balance sheet date are presented as non-current assets. The unearned interest on accounts receivable which are due over one year is reported in the consolidated balance sheets as a direct deduction from the principal amount of accounts receivable. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its students to make required payments. Accounts receivable is considered past due based on its contractual terms. In establishing the allowance, management considers historical losses, the students’ financial condition, the accounts receivables aging and the students’ payment patterns. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted. (i) Property and equipment Property and equipment are recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful life of property and equipment is as follows: Office buildings 45 years Furniture 5 years Office equipment 3 to 4 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented. (j) Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. ASC 350‑20, Goodwill , permits the Company to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test, using a two-step approach. If this is the case, the two-step goodwill impairment test is required. If it is more likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, the first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Company performs the annual goodwill impairment assessment using a two-step approach on December 31 and no goodwill impairment was identified as of December 31, 2017 and 2018 (Note 20). (k) Long-term investments · Equity investments without readily determinable fair values/ Cost method investments In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. ASU 2016-01 also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. ASU 2016-01, which the Company adopted on January 1, 2018, did not have a material impact on the consolidated financial statements. Since January 1, 2018, equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. Prior to the fiscal year 2018, these securities were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. · Equity method investments Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an entity in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it does not recognize further losses, unless it has incurred obligations or made payments on behalf of the equity investee. The Company evaluates the equity method investments for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. · Available-for-sale debt securities Debt securities that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity debt securities and are stated at amortized cost. Debt securities that the Company has the intent to hold the security for an indefinite period or may sell the security in response to the changes in economic conditions are classified as available for sale and reported at fair value. Unrealized gains and losses (other than impairment losses) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information. (l) Revenue recognition The Company adopted ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers, with effect from January 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Accordingly, revenues for the year ended December 31, 2018 was presented under ASC 606, and revenues for the years ended December 31, 2016 and 2017 were not adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. Revenue recognition before adoption of ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)” Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of business tax and value added taxes (“VAT”) at rates ranging between 3% and 6%, and surcharges. VAT and business tax collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company . Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees. Certain qualified students are allowed to pay their tuition fees on installment for a period of time after the completion of the course. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. The Company enters into arrangements with certain students that purchase multiple services, including tuition service and practical tutoring service (“multiple-element arrangements”). Each element within the multiple-element arrangements is accounted for as a separate unit of accounting provided the following criteria are met: the delivered services have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered services, delivery or performance of the undelivered service is considered probable and is substantially controlled by the Company. A deliverable has standalone value if the service is sold separately by the Company or another vendor. The Company’s revenue arrangements do not include a general right of return relative to the delivered services. The Company treats training contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each deliverable service is provided. The Company allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by Topic 605-25, Revenue Recognition - Multiple - Element Arrangements. The Company first uses vendor-specific objective evidence (VSOE) of selling price, if it exists, otherwise the third-party evidence of selling price is used. If neither VSOE of selling price nor third-party evidence of selling price exists, the Company uses management’s best estimate of selling price for the deliverables. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company acts as the principal in providing this service and recognizes revenue on gross basis because the Company is the primary obligor in the arrangement and is responsible for fulfilling the ordered services by the students. Cash received before the students taking the exam, is recorded as deferred revenue, and subsequently recognized as certification service revenue upon completion of the certification service, which occurs when the certificates are provided to the students. Loan referral service revenue The Company promotes loan products of the financial service providers to its students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee at a rate of the effective principal amount of the loans. Loan referral service revenue is recognized upon the initiation of the loans and confirmed with the financial service providers on a monthly basis. Revenue recognition after adoption of ASU 2014-09, “Revenue from contracts with Customers (ASC 606)” with modified retrospective method Effective January 1, 2018, The Company evaluated and recognized revenue based on the five steps set forth in ASC 606 by: · identifying the contract(s) with the customer; · identifying the performance obligations in the contract; · determining the transaction price; · allocating the transaction price to performance obligations in the contract; and · recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of business tax and value added taxes (“VAT”) at rates ranging between 3% and 6%, and surcharges. VAT and business tax to be collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue The Company provides IT and non-IT related training courses to both adult and K-12. A majority of contract of tuition service is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees consistent with the guidance in ASC 606. Certain qualified students are allowed to pay their tuition fees on installment for a period of time exceeding one year. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the contract contains a significant financing component, and the consideration promised by the customer is variable. The receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. The Company enters into arrangements with certain students that purchase multiple services. The performance obligations identified include tuition service and practical tutoring service. The Company treats training contracts with multiple performance obligations as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each performance obligation is satisfied. The Company allocates the transaction price to each performance obligations based on stand-alone selling price. Refunds are provided to students if they withdraw from classes, and usually only those unearned portions of the fee which is available will be refunded. A refund liability represents the amounts of consideration received but are not expected to be entitled to earn, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to students. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Reclassification was made from deferred revenue to refund liabilities, which was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company is the principal to end customers. The Company acts as the principal in providing the certificate service to the students and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the students. Cash received before the students taking the exam is recorded as deferred revenue. Each contract of certification service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the certificates are provided to the students and the consideration are received, then the received consideration is recognized as certification service revenue. Loan referral service revenue The Company promotes loan products of financial service providers to its students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee generally at a rate of the principal amount of the loans. Each contract of loan referral service is accounted for as a single performance obligation which is satisfied at a point in time. Generally, the early repayment and default loan are excluded from the effective principal amount of the loans, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to financial service providers. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Refund liability was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Loan referral service revenue is recognized upon the initiation of the loans as the performance obligation is satisfied and confirmed with the financial service providers on a monthly basis. Contract acquisition costs The Company has used practical expedients as allowed under ASC 606 to generally expenses sales commissions when incurred, because the amortization period would be one year or less. These costs are recorded as sales and marketing expenses. Contract liability The Company’s contract liabilities mainly consist of deferred revenue, with a balance of RMB352,260 and RMB830,019 as of December 31, 2017 and 2018, respectively. All contract liabilities before January 1, 2018 were recognized as revenue during the year ended December 31, 2018 and all contract liabilities as of December 31, 2018 are expected to be realized in the following year. Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. The following table presents the impact of the adoption of ASC 60

RESTATEMENT AND RECLASSIFICATIO

RESTATEMENT AND RECLASSIFICATIONS	12 Months Ended
RESTATEMENT AND RECLASSIFICATIONS	Dec. 31, 2018
RESTATEMENT AND RECLASSIFICATIONS
RESTATEMENT AND RECLASSIFICATIONS	3 RESTATEMENT AND RECLASSIFICATIONS Starting from April 2019, the Company’s audit committee conducted an independent investigation (the “Investigation”) regarding certain issues identified by its predecessor auditor during the course of the audit of the Company’s financial statements for the year ended December 31, 2018. Through the Investigation, the Company has identified certain management members and personnel were involved in misconducts in certain transactions. In response, the Company has restated its financial statements for the fiscal years from 2014 to 2017. The effects of the reclassifications and restatement for the errors on the consolidated balance sheets are as follows: As of December 31, 2016 As previously Restatement As Item reported adjustments Restated RMB RMB RMB ASSETS Current assets: Cash and cash equivalents 810,672 — 810,672 Time deposits 416,724 — 416,724 Restricted cash — — — Accounts receivable, net of allowance for doubtful accounts (a),(b)(e) 97,374 (79,059) 18,315 Amounts due from a related party (d) — 4,978 4,978 Prepaid expenses and other current assets (b) 126,088 5,017 131,105 Total current assets 1,450,858 (69,064) 1,381,794 Time deposits 58,667 — 58,667 Accounts receivable, net of allowance for doubtful accounts-non current (a) 1,176 8,089 9,265 Amounts due from a related party (d) — 6,500 6,500 Property and equipment, net (b),(e) 437,337 (10,336) 427,001 Intangible assets, net (e) — 5,194 5,194 Goodwill 3,365 — 3,365 Long term investments 41,760 — 41,760 Deferred income tax assets (f) 54,127 (49,575) 4,552 Other non-current assets (d),(e) 37,722 (1,810) 35,912 Total assets 2,085,012 (111,002) 1,974,010 LIABILITIES AND SHAREHOLDERS’ EQUITY 　 Current liabilities: 　 Accounts payable 4,502 — 4,502 Amounts due to related parties (d) 79 447 526 Income taxes payable (f) 91,240 (40,853) 50,387 Deferred revenue (a),(e)　 266,061 62,721 328,782 Accrued expenses and other current liabilities (a),(b),(e) 117,867 51,655 169,522 Total current liabilities 479,749 73,970 553,719 Other non-current liabilities 7,043 — 7,043 Total liabilities 486,792 73,970 560,762 Shareholders’ equity : 　　　 Ordinary shares 388 — 388 Treasury shares (93,761) — (93,761) Additional paid-in capital 995,216 — 995,216 Accumulated other comprehensive income 58,204 — 58,204 Retained earnings (a),(b),(d),(e),(f) 638,173 (184,972) 453,201 Total shareholders’ equity 　 1,598,220 (184,972) 1,413,248 Total liabilities and equity 2,085,012 (111,002) 1,974,010 As of December 31, 2017 As previously Restatement As Item reported adjustments Restated RMB RMB RMB ASSETS Current assets: Cash and cash equivalents 686,691 — 686,691 Time deposits 432,536 — 432,536 Accounts receivable, net of allowance for doubtful accounts (a),(b),(e) 216,700 (165,057) 51,643 Amounts due from a related party (d) 231 6,711 6,942 Prepaid expenses and other current assets (b) 156,360 (653) 155,707 Total current assets 1,492,518 (158,999) 1,333,519 Time deposits 505 — 505 Accounts receivable, net of allowance for doubtful accounts-non current (a) 14,582 (8,178) 6,404 Amounts due from a related party (d) — 6,500 6,500 Property and equipment, net (b), (e) 519,691 (17,352) 502,339 Intangible assets, net (e) — 4,753 4,753 Goodwill 3,365 — 3,365 Long term investments (e) 101,920 (24,750) 77,170 Deferred income tax assets (f) 72,600 (66,979) 5,621 Other non-current assets (d),(e) 77,464 787 78,251 Total assets 2,282,645 (264,218) 2,018,427 LIABILITIES AND SHAREHOLDERS’ EQUITY 　 Current liabilities: Accounts payable 11,351 — 11,351 Amounts due to related parties (d) — 216 216 Income taxes payable (f) 125,971 (58,638) 67,333 Deferred revenue (a),(c),(e) 302,163 50,097 352,260 Accrued expenses and other current liabilities (a),(b),(c),(e) 184,646 128,783 313,429 Total current liabilities 624,131 120,458 744,589 Other non-current liabilities 4,329 — 4,329 Total liabilities 628,460 120,458 748,918 Shareholders’ equity : 　　　 Ordinary shares 401 — 401 Treasury shares (255,103) — (255,103) Additional paid-in capital 1,094,872 — 1,094,872 Accumulated other comprehensive income (e) 54,122 (14,750) 39,372 Retained earnings (a), (b), (d), (e), (f) 759,893 (369,926) 389,967 Total shareholders’ equity 1,654,185 (384,676) 1,269,509 Total liabilities and equity 2,282,645 (264,218) 2,018,427 The effects of the reclassifications and restatement for the errors on the consolidated statements of operations and comprehensive loss are as follows: Year Ended December 31, 2016 As previously Restatement As Item reported adjustments Restated RMB RMB RMB Net revenues (a),(e) 1,579,604 (59,569) 1,520,035 Cost of revenues (a),(b) (449,104) 5,637 (443,467) Selling and marketing expenses (b) (527,553) 3,476 (524,077) General and administrative expenses (a),(b),(d) (307,519) 43,074 (264,445) Research and development expenses (65,594) — (65,594) Operating income 229,834 (7,382) 222,452 Interest income (a),(b) 23,974 1,091 25,065 Other income 15,960 — 15,960 Loss on foreign currency forward contract (12,898) — (12,898) Foreign currency exchange gains 3,760 — 3,760 Income before income taxes 260,630 (6,291) 254,339 Income tax expense (f) (18,776) (9,443) (28,219) Net income 241,854 (15,734) 226,120 Year Ended December 31, 2017 Item As previously Restatement As reported adjustments Restated RMB RMB RMB Net revenues (a),(c),(e) 1,973,806 (220,111) 1,753,695 Cost of revenues (a),(b) (599,199) 6,253 (592,946) Selling and marketing expenses (b) (713,120) 5,963 (707,157) General and administrative expenses (a),(b),(d) (392,296) 37,464 (354,832) Research and development expenses (100,032) — (100,032) Operating income (loss) 169,159 (170,431) (1,272) Interest income (a),(b) 21,000 (4,903) 16,097 Other income (loss) (e) 26,702 (10,000) 16,702 Foreign currency exchange loss (6,284) — (6,284) Income before income taxes 210,577 (185,334) 25,243 Income tax expense (f) (25,770) 380 (25,390) Net income (loss) 184,807 (184,954) (147) The effects of the reclassifications and restatement for the errors on the consolidated statements of cash flows are as follows: Year Ended December 31, 2016 As previously Restatement As reported adjustments Restated RMB RMB RMB Operating activities: Net income 241,854 (15,734) 226,120 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 72,757 879 73,636 Bad debt expense 33,605 (33,605) — Loss on disposal of property and equipment 297 — 297 Deferred income tax benefit (18,895) 17,348 (1,547) Share based compensation expense 67,824 — 67,824 Investment loss (gain) 29 (100) (71) Foreign currency exchange gain, net (3,760) (29,645) (33,405) Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi Accounts receivable 22,928 (18,934) 3,994 Amounts due from a related party — (3,753) (3,753) Prepaid expenses and other current assets (60,362) (5,129) (65,491) Accrued interest income on time deposits 5,264 — 5,264 Other non-current assets (7,071) 1,364 (5,707) Accounts payable (248) — (248) Amounts due to related parties (800) — (800) Income taxes payable 34,947 (7,904) 27,043 Deferred revenue 101,439 21,934 123,373 Accrued expenses and other current liabilities 36,781 45,296 82,077 Other non-current liabilities (2,559) — (2,559) Net cash provided by operating activities 524,030 (27,983) 496,047 Investing activities: Purchase of property and equipment and intangible assets (381,982) (1,693) (383,675) Proceeds from disposal of property and equipment 358 88 446 Purchase of short-term investments (1,937,000) 1,517,000 (420,000) Proceeds from maturity of short-term investments 1,937,000 (1,517,000) 420,000 Purchase of long-term investments (12,755) — (12,755) Purchase of time deposits (421,170) (217,000) (638,170) Proceeds from maturity of time deposits 678,741 246,645 925,386 Payment for acquisition of Hanru Hangzhou (4,360) — (4,360) Cash acquired from acquisition of Hanru Hangzhou 148 — 148 Issuance of loan to a related party (6,500) — (6,500) Issuance of loans to employees (12,025) (118) (12,143) Proceeds from repayment of loans from employees 3,096 61 3,157 Net cash used in investing activities (156,449) 27,983 (128,466) Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 20,388 — 20,388 Payment of dividend (54,026) — (54,026) Repurchase of treasury shares (44,406) — (44,406) Net cash used in financing activities (78,044) — (78,044) Changes in cash and cash equivalents 289,537 289,537 Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash 7,197 — 7,197 Net change in cash, cash equivalents and restricted cash 296,734 — 296,734 Cash, cash equivalents and restricted cash at beginning of year 513,938 — 513,938 Cash, cash equivalents and restricted cash at end of year 810,672 — 810,672 Year Ended December 31, 2017 As previously Restatement As reported adjustments Restated RMB RMB RMB Operating activities: Net income (loss) 184,807 (184,954) (147) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 100,724 39 100,763 Bad debt expense 31,499 (31,499) — Loss on disposal of property and equipment 917 — 917 Deferred income tax benefit (18,473) 17,302 (1,171) Share based compensation expense 77,415 — 77,415 Investment income (19,267) 19,314 47 Foreign currency exchange losses, net 6,471 (374) 6,097 Impairment of long-term investments — 10,000 10,000 Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi Accounts receivable (164,231) 133,765 (30,466) Amounts due from related parties — (1,964) (1,964) Prepaid expenses and other current assets (18,712) (14,414) (33,126) Accrued interest income on time deposits 1,809 — 1,809 Other non-current assets (12,432) 19,013 6,581 Accounts payable (196) — (196) Amounts due to related parties (310) — (310) Income taxes payable 34,731 (17,682) 17,049 Deferred revenue 36,102 (12,625) 23,477 Accrued expenses and other current liabilities 50,407 77,127 127,534 Other non-current liabilities (2,604) — (2,604) Net cash provided by operating activities 288,657 13,048 301,705 Investing activities: Purchase of property and equipment and intangible assets (177,251) 432 (176,819) Proceeds from disposal of property and equipment 462 (39) 423 Purchase of short-term investments (1,970,000) 1,020,000 (950,000) Proceeds from maturity of short-term investments 1,989,314 (1,039,314) 950,000 Purchase of long-term investments (50,500) — (50,500) Payment of long-term investment deposit (4,380) — (4,380) Purchase of time deposits (509,739) (6,000) (515,739) Proceeds from maturity of time deposits 528,999 5,959 534,958 Issuance of loans to employees (35,379) 4,753 (30,626) Proceeds from repayment of loans from employees 5,352 787 6,139 Net cash used in investing activities (223,122) (13,422) (236,544) Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 22,254 — 22,254 Payment of dividend (63,087) — (63,087) Repurchase of treasury shares (143,389) — (143,389) Net cash used in financing activities (184,222) — (184,222) Changes in cash and cash equivalents (118,687) (374) (119,061) Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (5,294) 374 (4,920) Net change in cash, cash equivalents and restricted cash (123,981) — (123,981) Cash, cash equivalents and restricted cash at beginning of year 810,672 — 810,672 Cash, cash equivalents and restricted cash at end of year 686,691 — 686,691 The following errors in the Company’s annual financial statements were identified and corrected as part of the restatement: (a) Restatement adjustments to inaccurate revenue and relevant accounts The Company restated the inaccurate revenue recorded for years ended December 31, 2016 and 2017, which was due to the misstatement of revenue resulted from intentional revenue inflation, inaccurate student account status and loan data recorded in the Company’s customer relationship management (CRM) system, premature recognition of revenue from certain students, and inaccurate accounting treatment of tuition refunds. The restatement resulted in a decrease of RMB54,086 and RMB33,605 in revenue and general and administrative expenses for bad debt provision, respectively, for the year ended December 31, 2016, a decrease of RMB133,027 in current and non-current accounts receivable net balances, respectively, and an increase of RMB64,385 in deferred revenue as of December 31, 2016. The restatement resulted in a decrease of RMB193,303 and RMB31,499 in revenue and general and administrative expenses for bad debt provision, respectively, for the year ended December 31, 2017, a decrease of RMB270,520 in current and non-current accounts receivable net balances, and an increase of RMB97,553 in deferred revenue as of December 31, 2017. In addition, the interest income and cost of revenue for the years ended December 31, 2016 and 2017, and tax and other tax payable as of December 31, 2016 and 2017 were also restated accordingly. (b) Restatement adjustments to expense inaccuracies The Company discovered instances of improper charges against accounts receivable and/or bad debts, and certain students’ tuition fee refund due to early termination of study through payment for irregular expense or loan from an individual. The restatement resulted in an increase of RMB61,088, RMB48,539 and RMB5,015 in accounts receivable, other payable and other receivables, respectively, a decrease of RMB450 in property and equipment as of December 31, 2016, and an increase of RMB2,539 of interests expense, a decrease of RMB17,195 in cost of revenue, general and administrative expense and selling expenses collectively for the year ended December 31, 2016. The restatement resulted in an increase of RMB93,372, RMB58,697 and RMB1,563 in accounts receivable, other payable and other receivables, respectively, a decrease of RMB882 in property and equipment as of December 31, 2017, and an increase of RMB4,958 of interests expense, a decrease of RMB23,199 in cost of revenue, general and administrative expense and selling expenses collectively for the year ended December 31, 2017. (c) Restatement adjustment to accrue guarantee liabilities for the guarantee provided for students’ loan The Company did not recognize guarantee liabilities in accordance with ASC Topic 460 to reflect that it provided guarantee to certain students who borrowed the tuition fee from financial service providers. Thus the Company proposed restatement adjustments which resulted in an increase of RMB83,693 in accrued expenses and other current liabilities-guarantee liabilities, and a decrease of RMB46,165 in deferred revenue as of December 31, 2017, and a decrease of RMB37,529 in revenue for year ended December 31, 2017. (d) Incomplete disclosed related party transactions The Company has properly classified and presented the related party balances and transactions in the restated consolidation financial statements and disclosed in Note 14, in response to the audit committee’s finding on undisclosed conflict of interest and related party transactions. The restatement resulted in an increase of RMB11,478 in current and non-current amount due from related parties, and RMB447 in amount due to related parties as of December 31, 2016, and an increase of RMB13,211 in current and non-current amount due from related parties, and RMB216 in amount due to related parties as of December 31, 2017. (e) Restatement and reclassification adjustments to miscellaneous items The Company also corrected and reclassified some minor errors, which led to increase or decrease in certain accounts, i.e. accounts receivable, advance from customers, long-term investment and investment income, cost and expenses, as well as reclassification in property and equipment, intangible assets and other non-current assets, etc. (f) Adjustments on tax payable due to the restatement According to the restatement adjustments above, the Company restated the income tax payable and deferred tax assets, which resulted in an increase of RMB9,443 in income tax expense in year ended December 31, 2016, a decrease of RMB49,574 and RMB40,853 in non-current deferred tax assets and income tax payable, respectively, as of December 31, 2016, and a decrease of RMB380 in income tax expense in year ended December 31, 2017, a decrease of RMB66,979 and RMB58,638 in non-current deferred tax assets and income tax payable, respectively, as of December 31, 2017. (g) Retain earnings As a result of the foregoing, the Company restated the cumulative effect of the change on retained earnings, which resulted in a decrease of RMB184,972 and RMB369,926 in years ended December 31, 2016 and 2017. (h) Earnings (loss) per share As a result of the foregoing, the cumulative effect of earnings (loss) per share as follows: Year Ended December 31, 2016 As previously Restatement reported adjustments As restated RMB RMB RMB Numerator: Net income attributable to Class A and Class B ordinary shareholders 241,854 (15,734) 226,120 Net income for basic and diluted earnings per share 241,854 (15,734) 226,120 Denominator: Denominator for basic earnings per share: Weighted average number of Class A and Class B ordinary shares outstanding 55,540,670 0 55,540,670 Dilutive effect of outstanding share options 3,464,591 0 3,464,591 Denominator for diluted earnings per share 59,005,261 0 59,005,261 Basic earnings per Class A and Class B ordinary share 4.36 (0.28) 4.07 Diluted earnings per Class A and Class B ordinary share 4.10 (0.27) 3.83 Year Ended December 31, 2017 As previously Restatement reported adjustments As restated RMB RMB RMB Numerator: Net income (loss) attributable to Class A and Class B ordinary shareholders 184,807 (184,954) (147) Net income (loss) for basic and diluted earnings per share 184,807 (184,954) (147) Denominator: Denominator for basic earnings per share: Weighted average number of Class A and Class B ordinary shares outstanding 56,849,332 — 56,849,332 Dilutive effect of outstanding share options 2,749,379 — — Denominator for diluted earnings (loss) per share 59,598,711 — 56,849,332 Basic earnings (loss) per Class A and Class B ordinary share 3.25 (3.25) (0.00) Diluted earnings (loss) per Class A and Class B ordinary share 3.10 (3.10) (0.00)

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
ACCOUNTS RECEIVABLE	Dec. 31, 2018
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE	4 ACCOUNTS RECEIVABLE Accounts receivable consists of the following: December 31, 2017 2018 RMB RMB Accounts receivable: Gross 67,235 69,301 Unearned interest (9,188) (17,243) Total accounts receivable 58,047 52,058 Less: allowance for doubtful accounts — — Accounts receivable, net 58,047 52,058 The classification of accounts receivable is as follows: December 31, 2017 2018 RMB RMB Accounts receivable – current portion 51,643 39,901 Accounts receivable – non-current portion 6,404 12,157 Total accounts receivable, net 58,047 52,058 Accounts receivable represents amounts due from customers of the Company's various subsidiaries and schools. The balances of accounts receivables were within credit terms as of December 31, 2016, 2017, and 2018, respectively.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS	Dec. 31, 2018
PREPAID EXPENSES AND OTHER CURRENT ASSETS
PREPAID EXPENSES AND OTHER CURRENT ASSETS	5 PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2017 2018 RMB RMB Prepaid expenses and other current assets: Prepaid rental expenses 41,984 50,854 Interest receivable from time deposits 12,495 2,754 Prepaid security deposits (a) 17,269 24,337 Prepaid advertising expenses 26,393 17,967 Prepaid value-added tax 17,644 18,777 Loans made to employees (b) 12,698 37,586 Professional fee 11,528 10,020 Others (c) 15,696 9,171 Total prepaid expenses and other current assets 155,707 171,466 (a) Prepaid security deposits mainly included prepaid advertising deposits. (b) The Company provides short-term interest-free loans to employees for their purchase of residence or other personal needs. (c) Others mainly represent inventories, other deposits, and other miscellaneous prepaid expenses.

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
PROPERTY AND EQUIPMENT, NET	Dec. 31, 2018
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET	6 PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: December 31, 2017 2018 RMB RMB Office buildings 285,184 　 287,208 Furniture 30,061 　 49,374 Office equipment 350,432 　 481,034 Leasehold improvements 94,666 　 184,687 Total property and equipment 760,343 　 1,002,303 Less: accumulated depreciation (258,004) 　 (376,235) Property and equipment, net 502,339 　 626,068 Depreciation expense for property and equipment was allocated to the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Cost of revenues 62,000 85,059 127,850 Selling and marketing expenses 3,226 5,313 11,211 General and administrative expenses 6,455 8,064 16,511 Research and development expenses 1,177 1,461 1,335 Total 72,858 99,897 156,907

LONG-TERM INVESTMENTS, NET

LONG-TERM INVESTMENTS, NET	12 Months Ended
LONG-TERM INVESTMENTS, NET	Dec. 31, 2018
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET	7 LONG-TERM INVESTMENTS, NET Long-term investments consisted of the following: December 31, 2017 2018 RMB RMB Equity investments without readily determinable fair values A company providing mechanic training (a) 12,000 　 12,000 A company providing intelligent robot products (b) 24,000 　 24,000 A company providing information sharing IT platform (c) 22,500 　 22,500 Other equity investments without readily determinable fair values (d) 18,000 　 20,880 Less：impairment of equity investments without readily determinable fair values 　 — 　 (35,000) Total equity investments without readily determinable fair values, net 　 76,500 　 44,380 Equity method investments 　　　　 Companies providing hockey program management (e) 670 　 2,105 A company providing Internet product solutions (f) — 　 13,690 Less：impairment of equity method investments 　 — 　 (524) Total equity method investments, net 　 670 　 15,271 Available-for-sale investment (g) 15,000 　 15,000 impairment of available-for-sale investments (15,000) (15,000) Total available-for-sale investment, net — — Total long-term investments, net 77,170 　 59,651 Prior to January 1, 2018, the Company accounted for certain investments under the cost method as the Company was not able to exercise significant influence on the investees. After January 1, 2018, all such investments were identified as the equity investments without readily determinable fair values. (a) In October 2015, the Company paid RMB12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair. No impairment loss was recognized for both the years ended December 31, 2017 and 2018. (b) In May 2017, the Company paid RMB24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated in fiscal year 2018, the Company recognized impairment loss of nil and RMB24,000 for the years ended December 31, 2017 and 2018, respectively. (c) In July 2017, the Company paid RMB22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform. No impairment loss was recognized for both the years ended December 31, 2017 and 2018. (d) During the years ended December 31, 2017 and 2018, the Company acquired minority equity interest in several third-party companies.The Company recognized impairment loss of nil and RMB11,000 for the years ended December 31, 2017 and 2018, respectively. (e) In October 2016, the Company paid RMB790 in cash to acquire 28.5% of equity interest of a hockey program management company through investment in its common shares and accounted for the investment using equity method. The Company recognized impairment loss of nil and RMB524 for the year ended December 31, 2017 and 2018, respectively. In December 2018, the Company paid RMB1,580 in cash to acquire 20% of equity interest in another hockey program management company and accounted for the investment using equity method. (f) In January 2018, the company paid RMB14,000 in cash to acquire 20% of equity interest of a company which provides IT consulting services and programming account for the investment using equity method. No impairment loss was recognized for the year ended December 31, 2018. (g) In October 2016, the Company paid RMB10,000 in cash to acquire 13.9% equity interest in a private company, which provides employment course trainings and recruitment services. Because the investment terms contained both substantive liquidation preference over common stock and substantive redemption provision that is not available to common shareholders, the investment is not substantially similar to common stock. In addition, since the investment is redeemable at the option of the Company, the investment qualifies as a debt security. The Company recorded the investment as available-for-sale investment and recorded an accumulative increase of RMB5,000 in fair value of the investment with nil income tax effect by the end of 2016, as a component of other comprehensive income. In 2017, the investee received financing through a new private placement, the Company’s equity interest was reduced to 11.25%. However, it was subsequently found that the investee provided overstated financial statements to the new investors during the private placement in 2017 and lost in a lawsuit sued by one of the shareholders. Accordingly, the Company determined it to be an other-than-temporary impairment and fully impaired it in 2017.

OTHER NON-CURRENT ASSET

OTHER NON-CURRENT ASSET	12 Months Ended
OTHER NON-CURRENT ASSET	Dec. 31, 2018
OTHER NON-CURRENT ASSET
OTHER NON-CURRENT ASSET	8 OTHER NON-CURRENT ASSET Other non-current assets consist of the following: Year Ended December 31, 2017 2018 RMB RMB Other non-current assets: Rent and property management deposits 32,973 48,434 Housing loans made to employees (a) 11,339 29,893 Prepayment for equipment and leasehold improvement 11,717 13,089 Pledge loans to employees (b) 9,026 11,346 Other loans to employees 8,816 7,197 Others 4,380 12,041 Total other non-current assets 78,251 122,000 (a) Starting from 2016, the Company began to provide five-year loans with the annual interest rate of 3.325% to the employees, for their purchase of houses. (b) Starting from 2016, the Company began to provide five-year loans with the annual interest rate of 5% to the employees pledged by their share options. The interest was paid monthly and the principal was repaid upon maturity.

SHORT-TERM BANK LOANS

SHORT-TERM BANK LOANS	12 Months Ended
SHORT-TERM BANK LOANS	Dec. 31, 2018
SHORT-TERM BANK LOANS
SHORT-TERM BANK LOANS	9 SHORT-TERM BANK LOANS In June 2018, Tarena International entered into a facilities agreement with an offshore branch of Hang Seng Bank Limited (the “Bank”), pursuant to which Tarena International may borrow from the Bank from time to time up to a combined aggregate of USD$12 million for a period of 12 months from the drawdown date. The purpose of the loan is to finance the Company’s offshore general working capital needs, including daily operating expenses and dividend payment. The bank loans were secured by an equivalent or greater amount of RMB deposits by Tarena in the onshore branch of the Bank . On December 19, 2018, Tarena International drew down a loan of USD$2 million for 12 months period. Interest is accrued and payable per 3 months, carrying a floating rate of 1.2% over the London Inter-Bank Offered Rate . The applicable interest rate for the loan is 4% per annum. The loans from the offshore branches of the Bank are classified as short-term bank loans based on the payment terms. As of December 31, 2018, USD$2 million bank loan was secured by an amount of RMB14.7 million deposit by Tarena International in the onshore branches of the Bank. The deposit is classified as restricted cash. The loan was subsequently repaid in June 2019.

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	Dec. 31, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	10 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Year Ended December 31, 2017 2018 RMB RMB Guarantee liability 83,693 27,505 Accrued payroll and employee benefits 88,713 128,224 Payable to a third-party individual 58,697 64,515 Refund liability — 35,772 VAT and other tax payables 18,015 34,731 Professional service fee 9,125 22,403 Rental fee 13,215 23,808 Payable for repurchasing of treasury shares 17,368 5,058 Others 24,603 23,412 Total 313,429 365,428

NET REVENUES

NET REVENUES	12 Months Ended
NET REVENUES	Dec. 31, 2018
NET REVENUES
NET REVENUES	11 NET REVENUES (a) Net revenues recognized under ASC Topic 605 for the years ended December 31, 2016 and 2017, and net revenue recognized under ASC Topic 606 for the year ended December 31, 2018 consisted of the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Tuition fee 1,491,594 1,658,981 1,896,642 Certification service fee 35,976 50,321 82,376 Loan referral service fee 9,855 33,533 18,096 Others 1,876 2,822 12,444 Business taxes and surcharges (19,266) (11,842) (13,878) Total net revenues 1,520,035 1,733,815 1,995,680 Others mainly include franchise fee and miscellaneous revenues. Year Ended December 31, 2016 2017 2018 RMB RMB RMB Timing of revenue recognition Services transferred at a point in time 45,831 83,854 100,472 Services transferred over time 1,474,204 1,649,961 1,895,208 Total net revenues 1,520,035 1,733,815 1,995,680 (b) Net revenues recognized under ASC Topic 460 for the years ended December 31, 2016, 2017 and 2018 consisted of the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Guarantee service — 19,880 89,691

LOSS ON FOREIGN CURRENCY FORWAR

LOSS ON FOREIGN CURRENCY FORWARD CONTRACT	12 Months Ended
LOSS ON FOREIGN CURRENCY FORWARD CONTRACT	Dec. 31, 2018
LOSS ON FOREIGN CURRENCY FORWARD CONTRACT
LOSS ON FOREIGN CURRENCY FORWARD CONTRACT	12 LOSS ON FOREIGN CURRENCY FORWARD CONTRACT The Company entered into a foreign currency forward contract on January 29, 2016 to sell its time deposits denominated in RMB for US dollars at a fixed rate at 6.7070 on May 19, 2016 with the notional amount of RMB564,095. The Company settled the forward contract on May 19, 2016 and incurred a loss on foreign currency forward contract in the amount of RMB12,898 for the year ended December 31, 2016.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2018
INCOME TAXES
INCOME TAXES	13 INCOME TAXES Under the current laws of the Cayman Islands, Tarena International is not subject to tax on its income or capital gains. For the period from its inception on October 22, 2012 to December 31, 2018, Tarena HK did not have any assessable profits arising in or derived from HK SAR. Tarena International’s PRC subsidiaries and consolidated VIEs and the subsidiaries of the VIEs file separate tax returns in the PRC. Effective from January 1, 2008, the PRC statutory income tax rate is 25% according to the Corporate Income Tax (“CIT”) Law which was passed by the National People’s Congress on March 16, 2007. Under the CIT Law, entities that qualify as “Advanced and New Technology Enterprise” (“ANTE”) are entitled to a preferential income tax rate of 15%. In 2015, the WFOE renewed its ANTE qualification, which entitled it to the preferential income tax rate of 15% from January 1, 2015 to December 31, 2017. In 2018, the WFOE renewed its ANTE qualification, which entitled it to the preferential income tax rate of 15% from January 1, 2018 to December 31, 2020. One of the Chinese subsidiaries of the Company was established in 2013 and qualified as an eligible software enterprise. As a result of this qualification, it is entitled to a tax holiday of a two-year full exemption followed by a three-year 50% exemption, commencing from 2014 in which its taxable income is greater than zero. As a result, its income tax rates for the years ended December 31, 2016, 2017 and 2018 were 12.5%, 12.5% and 12.5%, respectively. In 2016, another Chinese subsidiary of the Company was qualified as an eligible software enterprise, and was entitled to a tax holiday of a two-year full exemption followed by a three-year 50% exemption, commencing from the year in which its taxable income is greater than zero. As a result, the income tax rate of this Chinese subsidiary for the years ended December 31, 2016 and 2017 was nil, and for the year ended December 31, 2018 was 12.5%. Certain Tarena International’s subsidiaries and branches in China qualified as “Small Profit Enterprises” in 2016, 2017 and 2018, and therefore are subject to the preferential income tax rate of 20%. In 2017, one of the Chinese subsidiaries of the Company was established and qualified to be entitled to a tax holiday until end of year 2020. As a result, the income tax rate of this Chinese subsidiary for the years ended December 31, 2017 and 2018 was nil. According to the approvals from the tax authorities in certain locations in the PRC, Tarena International’s subsidiaries and consolidated VIEs and the subsidiaries of the VIEs that are based in these locations are required to use the deemed profit method to determine their income tax. Under the deemed profit method, these subsidiaries are subject to income tax at 25% on its deemed profit which is calculated based on revenues less deemed expenses equal to 85% and 90% of revenues. The components of income (loss) before income taxes are as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB PRC 334,278 104,307 (467,953) Hong Kong (573) (2,415) (2,031) Cayman Islands (79,366) (76,649) (126,887) Taiwan — — (166) Canada — — (27) Total income (loss) before income taxes 254,339 25,243 (597,064) Income tax expense (benefit) consisted of the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Current income tax expense 29,766 26,561 16,058 Withholding tax expense — — 25,672 Deferred income tax benefit (1,547) (1,171) (46,595) Total 28,219 25,390 (4,865) The actual income tax expense reported in the consolidated statements of comprehensive income for each of the years ended December 31, 2016, 2017 and 2018 differs from the amount computed by applying the PRC statutory income tax rate to income before income taxes due to the following: Year Ended December 31, 2016 2017 2018 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Increase (decrease) in effective income tax rate resulting from: Impact of different tax rates in other jurisdictions 7.8 % 76.7 % (5.3) % Research and development bonus deduction (3.2) % (34.7) % 1.4 % Non-deductible expenses 1.7 % 62.7 % (1.4) % Preferential tax rates (23.7) % (199.9) % (0.3) % Change in valuation allowance 3.5 % 170.8 % (14.3) % Withholding tax — — (4.3) % Actual income tax expense 11.1 % 100.6 % 0.8 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows: December 31, 2017 2018 RMB RMB Non-current deferred income tax assets: Impairment of long-term investments 2,500 8,850 Tax loss carry forwards 33,201 157,264 Advertising expense 36,543 53,019 Others 5,648 4,162 Total non-current deferred income tax assets 77,892 223,295 Valuation allowance (72,271) (169,543) Non-current deferred income tax assets, net 5,621 53,752 Non-current deferred income tax liabilities: Valuation appreciation of intangible assets — 2,283 Non-current deferred income tax liabilities* — 2,283 * non-current deferred income tax liabilities are combined in other non-current liabilities. The movements of the valuation allowance are as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Balance at the beginning of the year 28,583 37,521 72,271 Additions of valuation allowance 13,118 38,976 97,776 Reduction of valuation allowance (4,180) (4,226) (504) Balance at the end of the year 37,521 72,271 169,543 The valuation allowance as of December 31, 2017 and 2018 was primarily provided for the deferred income tax assets of certain Tarena International’s PRC subsidiaries, consolidated VIEs, and the subsidiaries of the VIEs, which were at cumulative loss positions. In assessing the realization of deferred income tax assets, management considers whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible or utilizable. Management considers projected future taxable income and tax planning strategies in making this assessment. As of December 31, 2018, the Company had tax losses carryforwards of RMB656,702, including which from Hong Kong subsidiary of RMB10,906 and does not have an expiring date. Tax losses of RMB11,486, RMB9,175, RMB14,777, RMB92,289, and RMB518,069 will expire, if unused, by 2019, 2020, 2021, 2022 and 2023, respectively. The CIT Law and its implementation rules impose a withholding income tax at 10%, unless reduced by a tax treaty or arrangement, on the amount of dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC that are related to earnings accumulated beginning on January 1, 2008. Dividends relating to undistributed earnings generated prior to January 1, 2008 are exempt from such withholding income tax. In fiscal year 2018, the Company distributed dividends to Tarena HK and paid a withholding income tax at the amount of RMB25,672. The Company has considered temporary differences on the book to tax differences pertaining to all investment in subsidiaries including the determination of the indefinite reinvestment assertion that would apply to each foreign subsidiary. The Company evaluated each entity’s historical, current business environment and plans to indefinitely reinvest all earnings accumulated in its respective jurisdiction for purpose of future business expansion.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	14 RELATED PARTY TRANSACTIONS The following is a list of related parties which the Company has transactions with: (1) Mr. Han Shao Yun (“Mr. Han”), the founder, chairman of our board of directors and former chief executive officer of the Company. (2) Chuanbang, a company wholly owned by Mr. Han. (3) Xi'an Beilin District Bolton vocational skill training school (“Bolton School”), a company controlled by Mr. Han’s brother-in-law. (4) Ningxia Tarena Technology Co., Ltd (“Ningxia Company”), a company wholly owned by Ms.Han Liping, a sister of Mr. Han. (5) Ms. Han Lijuan, a sister of Mr. Han. (6) Connion Capital Limited is a company ultimately owned by our chairman, Mr. Han through a trust. In 2018, the Company wired funds to and shortly received same funds back from Connion Capital Limited in five separate occasions with each no more than US$1 million in order for the Company to maintain the requisite minimum level of activity in its bank account. No amount was due from Connion Captal Limited as of December 31, 2018. The Company had the following balances and transactions with related parties: Related party balances As of December 31, 2017 2018 RMB RMB Amounts due from a related party Chuanbang (i) 6,942 9,938 Amounts due from a related party - non-current Ms. Han Lijuan (ii) 6,500 6,500 Notes: (i) The balance resulted from the service fee to Chuanbang for providing cash collection service. (ii) The balance represented a long-term loan to Ms. Han Lijuan and upon the Company’s request to avoid any risk of possible violation of Sarbanes-Oxley Act, all of the balance was repaid to the Company on April 2, 2020. Related party transactions The significant related party transactions for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Cash collection service expense to Chuanbang (a) 6,445 3,230 3,489 Franchise and training service income from Bolton School 902 1,114 529 Franchise, training and consulting service income from Ningxia Company — 520 493 Training service expense to Bolton School 102 1,064 798 Interest income from Loan to Ms. Han Lijuan 81 325 325 Loan to Ms. Han Lijuan 6,500 — — Notes: (a) Pursuant to an agreement between Chuanbang and the Company, beginning August 2013, Chuanbang provides cash collection service on the Company’s accounts receivable. The fee for the service is calculated based on 2%~20% of the amount collected.

ORDINARY SHARES AND STATUTORY R

ORDINARY SHARES AND STATUTORY RESERVE	12 Months Ended
ORDINARY SHARES AND STATUTORY RESERVE	Dec. 31, 2018
ORDINARY SHARES AND STATUTORY RESERVE
ORDINARY SHARES AND STATUTORY RESERVE	15 ORDINARY SHARES AND STATUTORY RESERVE (a) Treasury shares On August 20, 2015, the board of directors of the Company authorized a share repurchase plan under which the Company may repurchase up to US$20 million of its ordinary shares over the next 12 months. The Company repurchased 926,113 ordinary shares on the open market with a consideration of approximately RMB49,355 for the year ended December 31, 2015. For the year ended December 31, 2016, 648,867 ordinary shares were repurchased on the open market in the amount of RMB44,406. In the second quarter of 2017, the board of directors authorized a share repurchase plan under which the Company may repurchase up to US$30 million of its shares over the next 12 months. For the year ended December 31, 2017, 1,755,666 ordinary shares were repurchased on the open market in the amount of RMB161,342. In the second quarter of 2018, the board of directors authorized an increase to the size of the share repurchase plan from US$30 million to US$70 million and an extension of the term of the plan to June 20, 2019. For the year ended December 31, 2018, 3,768,495 ordinary shares were repurchased on the open market in the amount of RMB202,066. (b) Statutory reserves and restricted net assets Under PRC rules and regulations, Tarena International’s PRC subsidiaries, consolidated VIEs, and the subsidiaries of the VIEs (the “PRC Entities”) are required to appropriate 10% of their net profit, as determined in accordance with PRC accounting rules and regulations, to a statutory surplus reserve until the reserve balance reaches 50% of their registered capital. In addition, private schools (held by the PRC Entities) which require reasonable returns are required to appropriate 25% of their net profit, as determined in accordance with PRC accounting rules and regulations, to a statutory development fund, whereas in the case of private schools which do not require reasonable return, 25% of the annual increase of their net assets. The appropriation to these statutory reserves must be made before distribution of dividends to Tarena International can be made. For the years ended December 31, 2016, 2017 and 2018, the PRC Entities made appropriations to the statutory reserves of RMB37,996, RMB29,734 and RMB12,943, respectively. As of December 31, 2016, 2017 and 2018, the accumulated balance of the statutory reserves was RMB110,531, RMB140,265 and RMB153,208, respectively. Relevant PRC laws and regulations restrict the WFOE, VIE and VIE's subsidiary from transferring a portion of their net assets, equivalent to the balance of their paid-in-capital, additional paid-in-capital and statutory reserves to the Company in the form of loans, advances or cash dividends. Relevant PRC statutory laws and regulations restrict the payments of dividends by the Company's VIE and VIE's subsidiary from their respective retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The balances of restricted net assets as of December 31, 2016, 2017 and 2018 were RMB1,106,135, RMB1,235,538 and RMB1,375,685, respectively. Under applicable PRC laws, loans from PRC companies to their offshore affiliated entities require governmental approval, and advances by PRC companies to their offshore affiliated entities must be supported by bona fide business transactions. (c) Dividend On March 7, 2016, the Company's board of directors approved to declare a cash dividend of RMB0.98 (US$0.15) per ordinary share to shareholders as of the close of trading on April 6, 2016. The aggregate amount of cash dividends was approximately RMB54,026, which was paid in May 2016. On February 28, 2017, the Company’s board of directors approved to declare a cash dividend of RMB1.10 (US$0.16) per ordinary share to shareholders as of the close of trading on March 27, 2017. The aggregate amount of cash dividends was approximately RMB63,087, which was paid in June 2017. On March 6, 2018, the Company’s board of directors approved to declare a cash dividend of RMB0.76 (US$0.12) per ordinary share to shareholders as of the close of trading on April 5, 2018. The aggregate amount of cash dividends was approximately RMB42,955, which was paid in June 2018.

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION	12 Months Ended
SHARE BASED COMPENSATION	Dec. 31, 2018
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION	16 SHARE BASED COMPENSATION Share incentive plans On September 22, 2008, Tarena International adopted the 2008 Share Plan (the “2008 Plan”), pursuant to which Tarena International is authorized to issue share options and other share-based awards to key employees, directors and consultants of the Company to purchase up to 6,002,020 of its Class A ordinary shares (being retroactively adjusted to reflect the effect of the share split) under the 2008 Plan. On November 28, 2012, the Company increased the number of Class A ordinary shares authorized for issuance under the 2008 Plan to 8,184,990 Class A ordinary shares. Share options issued before September 22, 2008 are also administered under the 2008 Plan. The plan was terminated in 2018. According to its terms and there were no outstanding granted options by the termination date. On February 1, 2014, Tarena International adopted the 2014 Share Plan (the “2014 Plan”), pursuant to which Tarena International was authorized to issue options, non-vested shares and non-vested share units to qualified employees, directors and consultants of the Company. The maximum aggregate number of shares which may be issued pursuant to all awards under the 2014 Plan, or the Award Pool, is 1,833,696, provided that the shares reserved in the Award Pool shall be increased on the first day of each fiscal year, commencing with January 1, 2015, if the unissued shares reserved in the Award Pool on such day account for less than 2% of the total number of shares issued and outstanding on a fully-diluted basis on December 31 of the immediately preceding fiscal year, as a result of which increase the shares unissued and reserved in the Award Pool immediately after each such increase shall equal 2% of the total number of shares issued and outstanding on a fully-diluted basis on December 31 of the immediately preceding fiscal year. Share options During the year ended December 31, 2016, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 1,138,119 ordinary shares of Tarena International at exercise prices ranging from US$0.058 to US$4.36 per share. These options vest over a period ranging between 0.08 year and 4 years. The options have a contractual term of ten years. During the year ended December 31, 2017, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 682,435 ordinary shares of Tarena International at exercise prices ranging from US$0.058 to US$4.36 per share. These options vest over a period ranging between 0.17 year and 4 years. The options have a contractual term of ten years. During the year ended December 31, 2018, the board of the directors of Tarena International approved the grant of options to certain officers and employees to purchase 1,085,094 ordinary shares of Tarena International at exercise prices ranging from US$0.06 to US$1.00 per share. These options vest over a period ranging between 0.33 year and 1 year. The options have a contractual term of ten years. A summary of share options activity for the years ended December 31, 2016, 2017 and 2018 is as follows: Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding at December 31, 2015 5,574,441 1.77 5.55 45,569 Granted 1,138,119 1.90 Exercised (2,106,043) 1.46 Forfeited (278,142) 2.89 Expired — — Outstanding at December 31, 2016 4,328,375 1.88 5.84 56,743 Granted 682,435 0.88 Exercised (1,898,391) 1.74 Forfeited (98,067) 3.30 Expired — — Outstanding at December 31, 2017 3,014,352 1.70 5.83 40,031 Granted 1,085,094 0.84 Exercised (615,746) 0.72 Forfeited (86,903) 1.49 Expired — — Outstanding at December 31, 2018 3,396,797 1.61 6.47 15,919 Vested and expected to vest as of December 31, 2018 3,262,468 1.56 6.43 15,469 Exercisable as of December 31, 2018 2,824,485 1.50 6.21 13,551 The total intrinsic value of options exercised during the years ended December 31, 2016, 2017 and 2018 were RMB189,154, RMB169,944 and RMB22,710, respectively. The Company calculated the fair value of the share options on the grant date using the Binomial option-pricing valuation model. The assumptions used in the valuation model are summarized in the following table. Year Ended December 31, 2016 2017 2018 US$ US$ US$ Expected volatility 63.5%‑68.8% 63.7%‑67.8% 53.52%-55.70% Expected dividends yield Exercise multiple 2.0 2.0 2.2-2.8 Risk-free interest rate per annum 2.15%‑3.18% 2.88%‑3.22% 2.54%-3.23% The fair value of underlying ordinary shares (per share) US$9.99‑US$16.54 US$14.27‑US$19.03 US$6.97-US$14.99 The expected volatility was based on the historical volatilities of the Company and comparable publicly traded companies engaged in the similar industry. No income tax benefit was recognized in the consolidated statements of comprehensive income as the share-based compensation expense was not tax deductible. The fair values of the options granted for the years ended December 31, 2016, 2017 and 2018 are as follows: Year Ended December 31, 2016 2017 2018 US$ US$ US$ Weighted average grant date fair value of option per share 10.15 15.99 12.35 Aggregate grant date fair value of options 11,551 10,915 13,402 As of December 31, 2018, there was approximately RMB46,565 of total unrecognized compensation cost related to unvested share options and the unrecognized compensation costs are expected to be recognized over a weighted average period of approximately 1.66 years. Non-vested shares On April 3, 2016, the board of directors of Tarena International approved the grant of 20,000 non-vested shares to three independent directors, 25% of which vest at the end of every quarter within one year. Grantees of non-vested shares have no voting rights or dividend rights with respect to shares that have not been vested. On February 28, 2017, the board of directors of Tarena International approved the grant of 700 non-vested shares to 7 employees. One hundred percent of the non-vested shares shall vest immediately on the grant date. On April 3, 2017, the board of directors of Tarena International approved the grant of 13,335 non-vested shares to three independent directors, 25% of which vest at the end of every quarter within one year. On February 28, 2017, the board of directors of Tarena International approved the grant of 28,475 and 87,325 non-vested shares to employees, of which the vest period is eight and nine years, respectively. Grantees of non-vested shares have no voting rights or dividend rights with respect to shares that have not been vested. On April 3, 2018, the board of directors of Tarena International approved the grant of 18,181 non-vested shares to three independent directors, 25% of which vest at the end of every quarter within one year. On April 1, 2018, the board of directors of Tarena International approved the grant of 193,796 non-vested shares to employees, of which the vest period is five years. Grantees of non-vested shares have no voting rights or dividend rights with respect to shares that have not been vested. A summary of the non-vested shares activity under the 2014 Share Plan for the years ended December 31, 2016, 2017, 2018 is summarized as follows: Weighted Average Number of Non- Grant Date Fair vested Shares Value US$ Outstanding as of December 31, 2015 25,000 9.63 Granted 20,000 10.82 Vested (35,000) 9.97 Forfeited — — Outstanding as of December 31, 2016 10,000 10.82 Granted 129,835 14.93 Vested (17,367) 14.08 Forfeited (15,701) 14.47 Outstanding as of December 31, 2017 106,767 14.75 Granted 211,977 11.20 Vested (16,557) 14.22 Forfeited (22,541) 12.39 Outstanding as of December 31, 2018 279,646 12.28 As of December 31, 2018, there was approximately RMB22,496 of total unrecognized compensation cost related to non-vested shares, which is expected to be recognized over a weighted average period of approximately 5.12 years. The total fair value of shares vested during the year ended December 31, 2016, 2017 and 2018 was RMB2,316, RMB1,652 and RMB1,557 respectively.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	12 Months Ended
EARNINGS (LOSS) PER SHARE	Dec. 31, 2018
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE	17 EARNINGS (LOSS) PER SHARE Basic and diluted earnings (loss) per share is calculated as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Net income (loss) attributable to Class A and Class B ordinary shareholders 226,120 (147) (590,174) Net income (loss) for basic and diluted earnings per share 226,120 (147) (590,174) Denominator: Denominator for basic earnings per share: 　　　 Weighted average number of Class A and Class B ordinary shares outstanding 55,540,670 56,849,332 54,929,910 Dilutive effect of outstanding share options 3,464,591 — — Denominator for diluted earnings (loss) per share 59,005,261 56,849,332 54,929,910 Basic earnings (loss) per Class A and Class B ordinary share 4.07 (0.00) (10.74) Diluted earnings (loss) per Class A and Class B ordinary share 3.83 (0.00) (10.74)

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	18 COMMITMENTS AND CONTINGENCIES (a) Operating lease commitments Future minimum lease payments under non-cancelable operating lease agreements as of December 31, 2018 were as follows. The Company’s leases do not contain any contingent rent payment terms. RMB Year ending December 31, 2019 289,324 2020 232,688 2021 168,329 2022 119,024 2023 66,575 2024 and thereafter 47,447 Total 923,387 Gross rental expenses incurred under operating leases were RMB133,407, RMB178,802 and RMB262,440 for the years ended December 31, 2016, 2017, and 2018, respectively. Sublease rental income of RMB460, RMB630, and RMB1,533 for the years ended December 31, 2016, 2017, and 2018, respectively, were recognized as reductions of gross rental expenses. (b) Contingencies From time to time, the Company may be subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity.

BUSINESS COMBINATION

BUSINESS COMBINATION	12 Months Ended
BUSINESS COMBINATION	Dec. 31, 2018
BUSINESS COMBINATION
BUSINESS COMBINATION	19 BUSINESS COMBINATION On March 1, 2018, the Company acquired 100% of equity interest of Wuhan Haoxiaozi Robot Technology Co., Ltd, ("RTEC"), which provides K-12 robotics programming education services. The total consideration was RMB58,200 in cash. On the acquisition date, the allocation of the consideration of the assets acquired and liabilities assumed based on their fair value was as follows: RMB Amortization period Cash and cash equivalents 3,874 Financial receivables 7,550 Prepaid and other current assets 6,138 Inventory, net 803 Property and equipment 12,851 Intangible assets 12,688 10 Goodwill 49,417 Other non-current assets 114 Total assets 93,435 Deferred revenue (31,906) Accounts payable and other current liabilities (1,046) Deferred tax liabilities (2,283) Total 58,200 The excess of the purchase price over the tangible assets and identifiable intangible assets acquired reduced by liabilities assumed was initially recorded as goodwill and the goodwill is not deductible for tax purposes. The amount of goodwill resulted from the acquisition was RMB49,417 as of March 1, 2018.The acquired identifiable intangible assets were valued using discounted cash flow method. The goodwill acquired resulted primarily from the Company’s expected synergies from the integration of businesses acquired into the Company’s existing K-12 programs.

GOODWILL

GOODWILL	12 Months Ended
GOODWILL	Dec. 31, 2018
GOODWILL
GOODWILL	20 GOODWILL Goodwill consisted of the following: As of December, 31 2017 2018 Beginning balance 3,365 3,365 Acquisition — 49,417 Ending balance 3,365 52,782 There was no goodwill impairment as of December 31, 2017 and 2018.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
SEGMENT INFORMATION	Dec. 31, 2018
SEGMENT INFORMATION
SEGMENT INFORMATION	21 SEGMENT INFORMATION The Company has organized its operations into two segments: Adult Training and Kid Training, which reflects the way the Company evaluates its business performance and manages its operations by the Company’s chief operating decision maker (“CODM”). The Company's CODM has been identified as the CEO who reviews the financial information of separate operating segments when making decisions about allocating resources and assessing performance of the Company. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The CODM evaluates performance based on each reporting segment’s revenues, cost of revenues, and gross profit. The CODM does not review balance sheet information to measure the performance of the reportable segments, nor is this part of the segment information regularly provided to the CODM. It is not practicable to restate the information for prior years of 2017 and 2016 due to that the Kid Training business was launched by the end of 2015 and the company’s internal operation structure, personnel structure and financial reporting structure was not setup to support the segments separately until early 2018, therefore the management determines that it applies to the practicality exception and does not present the numbers of fiscal year 2016 and 2017. Revenues, cost of revenues, and gross profit by segment for the year ended December 31, 2018 were as follows. Year Ended December 31, 2018 Adult Training Kid Training Total RMB RMB RMB Revenue 1,915,446 169,925 2,085,371 Cost (690,252) (228,297) (918,549) Gross Margin 1,225,194 (58,372) 1,166,822

PARENT ONLY FINANCIAL INFORMATI

PARENT ONLY FINANCIAL INFORMATION	12 Months Ended
PARENT ONLY FINANCIAL INFORMATION	Dec. 31, 2018
PARENT ONLY FINANCIAL INFORMATION
PARENT ONLY FINANCIAL INFORMATION	21 PARENT ONLY FINANCIAL INFORMATION The following presents condensed parent company financial information of Tarena International. Condensed Balance Sheets December 31, 2017 2018 RMB RMB ASSETS Current assets: Cash and cash equivalents 17,658 25,507 Time deposits 65,342 — Prepaid expenses and other current assets 970 696 Total current assets 83,970 26,203 Investments and loans to subsidiaries 1,210,622 567,003 Total assets 1,294,592 593,206 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term bank loan — 13,726 Accrued expenses and other current liabilities (1) 24,454 6,862 Total current liabilities 24,454 20,588 Other non-current liabilities 629 — Total liabilities 25,083 20,588 Commitments and contingencies — — Shareholders’ equity: Class A ordinary shares (US$0.001 par value,860,000,000 shares authorized, 52,340,176 and 52,972,578 shares issued, 49,009,530 and 45,873,437 shares outstanding as of December 31, 2017 and 2018, respectively) 327 331 Class B ordinary shares (US$0.001 par value, 40,000,000 shares authorized, 7,206,059 shares and 7,206,059 shares issued and outstanding as of December 31, 2017 and 2018, respectively) 74 74 Treasury shares (3,330,646 and 7,099,141 class A ordinary shares as of December 31, 2017 and 2018, respectively, at cost) (255,103) (457,169) Additional paid-in capital 1,094,872 1,222,072 Accumulated other comprehensive income 39,372 50,472 Retained earnings (accumulated deficit) 389,967 (243,162) Total shareholders’ equity 1,269,509 572,618 Total liabilities and shareholders’ equity 1,294,592 593,206 (1) Mainly related to repurchase of treasury shares. Condensed Statements of Comprehensive Income (Loss) Year Ended December 31, 2016 2017 2018 RMB RMB RMB Selling and marketing expenses — — (403) General and administrative expenses (4,477) (5,218) (5,536) Operating loss (4,477) (5,218) (5,939) Equity in earnings (loss) of subsidiaries 237,662 (913) (589,564) Foreign currency exchange losses (4,753) (421) 341 Interest income 8,027 2,327 413 Loss on foreign currency forward contract (12,898) — — Other income 2,559 4,078 2,550 Income (loss) before income taxes 226,120 (147) (592,199) Income tax expense — — — Net income (loss) 226,120 (147) (592,199) Other comprehensive income Foreign currency translation adjustment, net of nil income tax 22,972 (13,832) 11,100 Unrealized holding gains on available for sale securities, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018, respectively 5,235 11,496 — Less: Reclassification adjustment for loss on available for sale securities realized in net income, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018, respectively (235) (16,496) — Comprehensive income (loss) 254,092 (18,979) (581,099) Condensed Statements of Cash Flows Year Ended December 31, 2016 2017 2018 RMB RMB RMB Operating activities: Net cash (used in) provided by operating activities (15,581) (17,595) 165,098 Investing activities: Purchase of time deposits (298,688) (196,771) — Proceeds from maturity of time deposits 620,607 363,533 63,452 Investments made to subsidiaries (198,137) — — Foreign currency exchange losses — 10,691 1,890 Net cash provided by investing activities 123,782 177,453 65,342 Financing activities: Proceeds from bank borrowing — — Issuance of Class A ordinary shares in connection with exercise of share options 20,388 22,254 2,952 Payment of dividends (54,026) (63,087) (42,955) Repurchase of treasury shares (44,406) (143,389) (196,957) Net cash used in financing activities (78,044) (184,222) (223,732) Changes in cash and cash equivalents 30,157 (24,364) 6,708 Effect of foreign currency exchange rate changes on cash and cash equivalents 7,338 (1,748) 1,141 Net increase (decrease) in cash and cash equivalents 37,495 (26,112) 7,849 Cash and cash equivalents at beginning of year 6,275 43,770 17,658 Cash and cash equivalents at end of year 43,770 17,658 25,507 Non-cash financing activities: Payable for repurchase of treasury shares — 17,953 5,109

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2018
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	22 SUBSEQUENT EVENTS Long-term investment On January 17, 2019, the Company acquired 12.05% of equity interest of a company which mainly engaged in project investment in China. The total consideration was RMB10,000 in cash. The transaction will be accounted for as equity investments without readily determinable fair values. Independent Investigation On May 17, 2019, the Company received a notification letter from Nasdaq stating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to its failure to timely file its Annual Report on Form 20-F for the year ended December 31, 2018. The Nasdaq notification letter provides the Company 60 calendar days from the date of the notification, or until July 15, 2019, to submit a plan to Nasdaq to regain compliance with the Nasdaq’s continued listing requirements. During the period from April to November 2019, the Company’s audit committee conducted the Investigation. The Company identified accounting errors and restated its prior years financial statements as disclosed in Note 3 to the Consolidated Financial Statements. Loan & pledge On August 9, 2019, the Company entered into a line of credit contract with Bank of Beijing to borrow RMB190,000 for one year with validity period on August 8, 2021. The loan bears a fixed interest rate of one year Loan Prime Rate ("LPR") plus 1.15% per annum on the date of drawing. As of the issuance date of the consolidated financial statements, the Company borrowed RMB99,872 from Bank of Beijing, and the carrying value of office buildings pledged for the borrowing was RMB207,749. Impact of COVID-19 The recent outbreak of a novel strain of coronavirus, now named as COVID-19, has spread rapidly to many parts of the world. The epidemic has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and many other countries for the past few months. In March 2020, the World Health Organization declared the COVID-19 a pandemic. The current COVID-19 pandemic has already adversely affected many of our business activities, including delivering lectures at our learning centers, recruiting students and conducting our day-to-day business. As part of China’s nationwide efforts to contain the spread of COVID-19, our classrooms in Beijing as well as our learning centers across China have underwent temporary yet prolonged closure from February 2020 to present. Although we have arranged online webcasts for our students to study at home, we may not be able to achieve the same effectiveness and service quality without the disciplined and focused learning environment at our learning centers. As of the date of this annual report, our learning centers remain closed due to the government policies on suspending classes at school. In addition, we have experienced difficulty in recruiting students as we are unable to host regular seminars, information sessions and preparatory training camps for prospective students at our learning centers as usual as well as conducting other offline sales and marketing activities due to the general restrictions on travel and outdoor activities. Our ability to recruit students directly from cooperative universities and colleges is also negatively impacted as most universities and colleges have been closed. The outbreak of COVID-19 in China has also caused temporary closures of many of our offices, adjustment of operation hours and work-from-home arrangements in our Beijing headquarters and other offices in China. We have taken measures to facilitate our employees to work remotely, but we might still experience lower work efficiency and productivity, which may adversely affect our results of operations. As we derive most of our revenues in China, our results of operations will be adversely, and may be materially, affected to the extent that COVID-19 harms the Chinese and global economy in general. While the duration of this pandemic cannot be reasonably estimated at this time, we expect that our results of operations for the first quarter and second quarter of 2020 will be adversely affected.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of consolidation	(a) Principles of consolidation The consolidated financial statements include the financial statements of Tarena International, its wholly-owned subsidiaries, VIEs in which Tarena International is the primary beneficiary and their wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation.
Liquidity Condition	(b) Liquidity Condition For the year ended December 31, 2018, the Company incurred a net loss from operations of RMB592.2 million. As of December 31, 2018, the Company had net current liability of RMB374.8 million. The Company’s operating results for future periods are subject to numerous uncertainties and it is uncertain if the Company will be able to reduce or eliminate its net losses in the foreseeable future. If management is not able to increase revenue and/or manage operating expenses in line with revenue forecasts, the Company may not be able to achieve profitability. Despite of the net loss for the year ended December 31, 2018, which included non-cash components of depreciation and amortization amounting to RMB159 million, share based compensation expense amounting to RMB124 million, and impairment loss of long-term investments amounting to RMB36 million, for the years ended December 31, 2016, 2017 and 2018, the Company generated net cash inflows from operating activities amounting to RMB496 million, RMB302 million, and RMB163 million, respectively. The Company expects a limited amount of net operating cash outflow, if not a net operating cash inflow, for the year ended December 31, 2019, taking into consideration of the significant expenses with respect to the Investigation as further discussed in Note 3 to the consolidated financial statements. As of December 31, 2018, the Company’s deferred revenue liability of RMB830 million does not represent potential cash outflows but will be recognized as revenue in the future as the Company provides the services in the end. For the next 12 months from the issuance date of this report, the Company plans to continues implementing various measures to boost revenue and controlling the cost and expenses within an acceptable level by offering online courses to all students, negotiating for relief or postpone of rentals for this special period of time and seeking for certain credit facilities, implementing comprehensive budget control and operation assessment, implementing enhanced vendor review and selection processes as well as enhancing internal controls on payable management, and creating synergy of the Company’s resources, which has considered the impact of COVID-19 as disclosed in Note 22 to the consolidated financial statements. Given the considerable gross margin ratio in its operations and the expected net operating cash inflow mentioned above, the Company assesses current working capital is sufficient to meet its obligations for the next 12 months from the issuance date of this report.
Use of estimates	(c) Use of estimates The preparation of consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the estimated stand-alone selling price under ASC 606, the guarantee liability under ASC Topic 460, the fair values of share-based compensation awards, goodwill impairment and long term investments, the collectability of accounts receivable, the realizability of deferred income tax assets, the accruals for other contingencies, the recoverability of the carrying amounts of property and equipment and the useful lives of property and equipment. The current economic environment has increased the degree of uncertainty inherent in those estimates and assumptions. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. To allocate the transaction price for contracts with multiple deliverables and estimate the standalone selling price, the Company considers market data, including its pricing strategies for the products being evaluated and other similar products it offers, competitor pricing to the extent data is available, and costs to determine whether the estimated selling price yields an appropriate profit margin.
Business combinations	(d) Business combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the identifiable assets and liabilities based on their estimated fair values as of the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred.
Foreign currency	(e) Foreign currency The functional currency of Tarena International and Tarena Hong Kong Limited (“Tarena HK”) is the USD. The functional currency of Taiwan Tarena Counseling Software Co., Ltd. is the TWD. The functional currency of Tarena International’s PRC subsidiaries, consolidated VIEs, and the subsidiaries of the VIEs is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rate at the balance sheet date. The resulting exchange differences are recorded in foreign currency exchange gains (losses) in the consolidated statements of comprehensive income (loss). Assets and liabilities of entities with functional currencies other than RMB are translated into RMB using the exchange rate on the balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the reporting period. The resulting foreign currency translation adjustment are recorded in accumulated other comprehensive income (loss) within shareholders’ equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC.
Cash, cash equivalents, restricted cash and time deposits	(f) Cash, cash equivalents, restricted cash and time deposits Cash consist of cash on hand and cash in bank, which are unrestricted as to withdrawal. Cash equivalents consist of interest-bearing certificates of deposit with initial term of no more than three months when purchased. Time deposits, which mature within one year as of the balance sheet date, represent interest-bearing certificates of deposit with an initial term of greater than three months when purchased. Time deposits which mature over one year as of the balance sheet date are included in non-current assets. Restricted cash is the deposit as collateral for the USD$2 million bank loan with a period of 12 months. Cash, cash equivalents, time deposits and restricted cash maintained at financial institutions consist of the following: December 31, 2017 2018 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 910,804 511,866 US dollar denominated bank deposits with financial institutions in the PRC 135,686 131,129 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 4,387 53,148 HK dollar denominated bank deposits with financial institutions in HK SAR 1 15 RMB denominated bank deposits with a financial institution in HK SAR 21 147 US dollar denominated bank deposits with a financial institution in the U.S. 68,795 6,311 TWD denominated bank deposits with a financial institution in Taiwan — 2,170 Total 1,119,694 704,786 To limit exposure to credit risk relating to bank deposits, the Company primarily places bank deposits only with large financial institutions in the PRC, HK SAR, Taiwan and the U.S. with acceptable credit rating.
Short-term investment	(g) Short-term investment During the years ended December 31, 2016, 2017 and 2018, the Company invested RMB420,000, RMB950,000 and nil, respectively, in financial products managed by one financial institution in the PRC. The terms of the financial products range between 7 days and 84 days. All of these financial products matured before December 31, 2016, 2017 and 2018, respectively. The Company earned investment income of RMB12,676, RMB19,314 and nil, respectively on the financial products, which was included in other income (loss) in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2016, 2017 and 2018.
Accounts receivable	(h) Accounts receivable Accounts receivable primarily represent tuition fees due from students. Accounts receivable which are due over one year as of the balance sheet date are presented as non-current assets. The unearned interest on accounts receivable which are due over one year is reported in the consolidated balance sheets as a direct deduction from the principal amount of accounts receivable. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its students to make required payments. Accounts receivable is considered past due based on its contractual terms. In establishing the allowance, management considers historical losses, the students’ financial condition, the accounts receivables aging and the students’ payment patterns. Accounts receivable which are deemed to be uncollectible are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. There is a time lag between when the Company estimates a portion of or the entire account balances to be uncollectible and when a write off of the account balances is taken. The Company takes a write off of the account balances when the Company can demonstrate all means of collection on the outstanding balances have been exhausted.
Property and equipment	(i) Property and equipment Property and equipment are recorded at cost. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets. The estimated useful life of property and equipment is as follows: Office buildings 45 years Furniture 5 years Office equipment 3 to 4 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. Property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of a long-lived asset or asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to the estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying value of an asset or asset group exceeds its estimated undiscounted future cash flows, an impairment loss is recognized by the amount that the carrying value exceeds the estimated fair value of the asset or asset group. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. Assets to be disposed are reported at the lower of carrying amount or fair value less costs to sell, and are no longer depreciated. No impairment of long-lived assets was recognized for any of the years presented.
Goodwill	(j) Goodwill The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheets as goodwill. Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. ASC 350‑20, Goodwill , permits the Company to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test, using a two-step approach. If this is the case, the two-step goodwill impairment test is required. If it is more likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, the first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Company performs the annual goodwill impairment assessment using a two-step approach on December 31 and no goodwill impairment was identified as of December 31, 2017 and 2018 (Note 20).
Long-term investments	(k) Long-term investments · Equity investments without readily determinable fair values/ Cost method investments In January 2016, the FASB issued ASU 2016-01 (“ASU 2016-01”), Recognition and Measurement of Financial Assets and Financial Liabilities, which, among other things, generally requires companies to measure investments in other entities, except those accounted for under the equity method, at fair value and to recognize any changes in fair value in net income. ASU 2016-01 also simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, and the guidance should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The guidance related to equity investments without readily determinable fair values (including disclosure requirements) is applied prospectively to equity investments that exist as of the date of adoption. ASU 2016-01, which the Company adopted on January 1, 2018, did not have a material impact on the consolidated financial statements. Since January 1, 2018, equity investments without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes in accordance with ASC topic 321, Investments – Equity Securities. Prior to the fiscal year 2018, these securities were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. · Equity method investments Under the equity method, the Company’s share of the post-acquisition profits or losses of the equity investment is recognized in the consolidated statements of comprehensive income; and the Company’s share of post-acquisition movements in equity is recognized in equity in the consolidated balance sheets. Unrealized gains on transactions between the Company and an entity in which it has recorded an equity investment are eliminated to the extent of the Company’s interest in the entity. To the extent of the Company’s interest in the investment, unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset transferred. When the Company’s share of losses in an entity in which it has recorded an equity investment equals or exceeds the Company’s interest in the entity, it does not recognize further losses, unless it has incurred obligations or made payments on behalf of the equity investee. The Company evaluates the equity method investments for impairment. An impairment loss on the equity method investments is recognized in earnings when the decline in value is determined to be other-than-temporary. · Available-for-sale debt securities Debt securities that the Company has positive intent and ability to hold to maturity are classified as held-to-maturity debt securities and are stated at amortized cost. Debt securities that the Company has the intent to hold the security for an indefinite period or may sell the security in response to the changes in economic conditions are classified as available for sale and reported at fair value. Unrealized gains and losses (other than impairment losses) are reported, net of the related tax effect, in other comprehensive income (OCI). Upon sale, realized gains and losses are reported in net income. The Company monitors the investments for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, the operating performance of the companies including current earnings trends and other company-specific information.
Revenue recognition	(l) Revenue recognition The Company adopted ASC Topic 606 (“ASC 606”), Revenue from Contracts with Customers, with effect from January 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Accordingly, revenues for the year ended December 31, 2018 was presented under ASC 606, and revenues for the years ended December 31, 2016 and 2017 were not adjusted and continued to be presented under ASC topic 605 (“ASC 605”), Revenue Recognition. Revenue recognition before adoption of ASU 2014-09, “Revenue from Contracts with Customers (ASC 606)” Revenue is recognized when all of the following conditions are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of business tax and value added taxes (“VAT”) at rates ranging between 3% and 6%, and surcharges. VAT and business tax collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company . Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees. Certain qualified students are allowed to pay their tuition fees on installment for a period of time after the completion of the course. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. The Company enters into arrangements with certain students that purchase multiple services, including tuition service and practical tutoring service (“multiple-element arrangements”). Each element within the multiple-element arrangements is accounted for as a separate unit of accounting provided the following criteria are met: the delivered services have value to the customer on a standalone basis; and for an arrangement that includes a general right of return relative to the delivered services, delivery or performance of the undelivered service is considered probable and is substantially controlled by the Company. A deliverable has standalone value if the service is sold separately by the Company or another vendor. The Company’s revenue arrangements do not include a general right of return relative to the delivered services. The Company treats training contracts with multiple deliverable elements as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each deliverable service is provided. The Company allocates the contract price among all the deliverables at the inception of the arrangement on the basis of their relative selling prices according to the selling price hierarchy established by Topic 605-25, Revenue Recognition - Multiple - Element Arrangements. The Company first uses vendor-specific objective evidence (VSOE) of selling price, if it exists, otherwise the third-party evidence of selling price is used. If neither VSOE of selling price nor third-party evidence of selling price exists, the Company uses management’s best estimate of selling price for the deliverables. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company acts as the principal in providing this service and recognizes revenue on gross basis because the Company is the primary obligor in the arrangement and is responsible for fulfilling the ordered services by the students. Cash received before the students taking the exam, is recorded as deferred revenue, and subsequently recognized as certification service revenue upon completion of the certification service, which occurs when the certificates are provided to the students. Loan referral service revenue The Company promotes loan products of the financial service providers to its students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee at a rate of the effective principal amount of the loans. Loan referral service revenue is recognized upon the initiation of the loans and confirmed with the financial service providers on a monthly basis. Revenue recognition after adoption of ASU 2014-09, “Revenue from contracts with Customers (ASC 606)” with modified retrospective method Effective January 1, 2018, The Company evaluated and recognized revenue based on the five steps set forth in ASC 606 by: · identifying the contract(s) with the customer; · identifying the performance obligations in the contract; · determining the transaction price; · allocating the transaction price to performance obligations in the contract; and · recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (i.e., “transfer of control”). These criteria as they relate to each of the following major revenue generating activities are described below. Revenue is presented net of business tax and value added taxes (“VAT”) at rates ranging between 3% and 6%, and surcharges. VAT and business tax to be collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Tuition revenue The Company provides IT and non-IT related training courses to both adult and K-12. A majority of contract of tuition service is accounted for as a single performance obligation which is satisfied proportionately over the service period. Tuition fees are recognized as revenue proportionately as the training courses are delivered, with unearned portion of tuition fees being recorded as deferred revenue. For certain students who borrow the tuition fee from financial service providers, the Company also provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. Given that the Company effectively takes on all of the credit risk of the borrowers and are compensated by the tuition fees charged, the guarantee is deemed as a service and the guarantee exposure is recognized as a stand-ready obligation in accordance with ASC Topic 460, Guarantees (see accounting policy for Guarantee Liabilities). The Company first allocates the transaction price to the guarantee liabilities, if any, in accordance with ASC Topic 460, Guarantees, which requires the guarantee to be measured initially at fair value based on the stand ready obligation. Then the remaining considerations are allocated to the tuition fees consistent with the guidance in ASC 606. Certain qualified students are allowed to pay their tuition fees on installment for a period of time exceeding one year. When tuition services are sold on installment terms that exceeds one year beyond the point in time that revenue is recognized, the contract contains a significant financing component, and the consideration promised by the customer is variable. The receivable, and therefore the revenue is recorded at the present value of the payments. The difference between the present value of the receivable and the nominal or principal value of the tuition fees is recognized as interest income over the contractual repayment period using the effective interest rate method. The interest rate used to determine the present value of total amount receivable is the rate subject to management decision on the date of the transaction and it reflects the rate that the students can obtain financing of a similar nature from other sources at the date of the transaction. The Company enters into arrangements with certain students that purchase multiple services. The performance obligations identified include tuition service and practical tutoring service. The Company treats training contracts with multiple performance obligations as separate units of accounting for revenue recognition purposes and recognizes revenue during the contract period when each performance obligation is satisfied. The Company allocates the transaction price to each performance obligations based on stand-alone selling price. Refunds are provided to students if they withdraw from classes, and usually only those unearned portions of the fee which is available will be refunded. A refund liability represents the amounts of consideration received but are not expected to be entitled to earn, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to students. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Reclassification was made from deferred revenue to refund liabilities, which was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Certification service revenue The Company provides certification service to students who complete the training course and enroll for the exams. The Company is responsible for the certification service, including organization, proctoring and grading of exams, and providing the certificates to students. All certificates are issued by third parties to the students who pass the exam. The Company is the principal to end customers. The Company acts as the principal in providing the certificate service to the students and recognizes revenue on gross basis because the Company is able to determine the price, acts as the main obligor in the arrangement, and, is responsible for fulfilling the services ordered by the students. Cash received before the students taking the exam is recorded as deferred revenue. Each contract of certification service is accounted for as a single performance obligation which is satisfied at a point in time. The performance obligation is satisfied when the certificates are provided to the students and the consideration are received, then the received consideration is recognized as certification service revenue. Loan referral service revenue The Company promotes loan products of financial service providers to its students, who need financial assistance for the payment of their tuition fees, in exchange for a referral fee generally at a rate of the principal amount of the loans. Each contract of loan referral service is accounted for as a single performance obligation which is satisfied at a point in time. Generally, the early repayment and default loan are excluded from the effective principal amount of the loans, and thus are not included in the transaction price because these amounts are expected to be eventually refunded to financial service providers. The Company determines the transaction price to be earned by estimating the refund liability based on historical refund ratio on a portfolio basis using the expected value method. Refund liability was recorded under accrued expenses and other current liabilities. Historically, the Company has not had material refunds. Loan referral service revenue is recognized upon the initiation of the loans as the performance obligation is satisfied and confirmed with the financial service providers on a monthly basis. Contract acquisition costs The Company has used practical expedients as allowed under ASC 606 to generally expenses sales commissions when incurred, because the amortization period would be one year or less. These costs are recorded as sales and marketing expenses. Contract liability The Company’s contract liabilities mainly consist of deferred revenue, with a balance of RMB352,260 and RMB830,019 as of December 31, 2017 and 2018, respectively. All contract liabilities before January 1, 2018 were recognized as revenue during the year ended December 31, 2018 and all contract liabilities as of December 31, 2018 are expected to be realized in the following year. Refund liability mainly related to the estimated refunds that are expected to be provided to students if they decide they no longer want to take the course. Refund liability estimates are based on historical refund ratio on a portfolio basis using the expected value method. The following table presents the impact of the adoption of ASC 606 on the consolidated balance sheet and statement of operations as of and for the year ended December 31, 2018. As of December 31, 2018 Balances without adoption of Effect change As reported ASC 606 higher/(lower) Deferred revenue 830,019 865,791 (35,772) Accrued expenses and other current liabilities 365,428 329,656 35,772 Guarantee service revenue recognized under ASC 460 At the inception of each loan, the guarantee liabilities recorded at fair value based on ASC Topic 460 is determined on a loan by loan basis. The guarantee liabilities are generally reduced by recording a credit to guarantee service revenue as the guarantor is released from the underlying guaranteed risk. Subsequent to initial recognition, the guarantee obligation’s release from risk has typically been recognized over the term of the guarantee using a rational amortization method.
Cost of revenues	(m) Cost of revenues Cost of revenues consists of payroll and employee benefits, rent expenses of learning centers, depreciation relating to property and equipment used for operating the learning centers, and other operating costs that are directly attributed to the provision of training services.
Guarantee liabilities	(n) Guarantee liabilities For certain students who borrow the tuition fee from financial service providers, the Company provides a guarantee service to financial service providers whereas in the event of default, the financial service providers are entitled to receive unpaid interest and principal from the Company. In general, any unpaid interest and principal are paid when the borrower does not repay as scheduled. For accounting purposes, at the inception of each loan, the Company recognizes the guarantee liability in accrued expenses and other current liabilities at fair value in accordance with ASC 460-10, which incorporates the expectation of potential future payments under the guarantee and takes into both non-contingent and contingent aspects of the guarantee. Subsequent to the loan's inception, the guarantee liability is composed of two components: (i) ASC Topic 460 component; and (ii) ASC Topic 450 component. The liability recorded based on ASC Topic 460 is determined on a loan by loan basis and it is reduced when the Company is released from the underlying risk, i.e. as the loan is repaid by the borrower or when the investor is compensated in the event of a default. This component is a stand ready obligation which is not subject to the probable threshold used to record a contingent obligation. The guarantee liabilities are generally reduced by recording a credit to guarantee service revenue as the guarantor is released from the underlying guaranteed risk. Subsequent to initial recognition, the guarantee obligation’s release from risk has typically been recognized over the term of the guarantee using a rational amortization method. The other component is a contingent liability determined based on probable loss considering the actual historical performance and current conditions, representing the obligation to make future payouts under the guarantee liability in excess of the stand-ready liability, measured using the guidance in ASC Topic 450, loans with similar risk characteristics are pooled into cohorts. The ASC 450 contingent component is recognized as part of operating expenses. At all times the recognized liability (including the stand ready liability and contingent liability) is at least equal to the probable estimated losses of the guarantee portfolio.
Advertising costs	(o) Advertising costs Advertising costs are expensed as incurred and included in selling and marketing expenses. Advertising costs were RMB213,078, RMB270,790 and RMB339,385 for the years ended December 31, 2016, 2017 and 2018, respectively.
Operating lease	(p) Operating lease The Company leases premises for learning centers and offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. There are no capital improvement funding, other lease concessions or contingent rent in the lease agreements. The lease terms of the Company’s learning centers mainly range between 1 and 10 years. The Company has no legal or contractual asset retirement obligations at the end of the lease term. Certain learning centers of the Company sublease a portion of the areas to certain students for their living accommodation. Income from subleases is recognized on a straight-line basis over the term of the lease and recognized as reduction of costs of revenues.
Government grant	(q) Government grant Government grant is recognized when there is reasonable assurance that the Company will comply with the conditions attached to it and the grant will be received. Government grant for the purpose of giving immediate financial support to the Company with no future related costs or obligation is recognized in the Company’s consolidated statements of comprehensive income when the grant becomes receivable. Government grants of RMB3,266, RMB7,435 and RMB2,292 were recognized and included in other income for the years ended December 31, 2016, 2017 and 2018, respectively.
Research and development expense	(r) Research and development expense Research and development costs are expensed as incurred.
Employee benefits	(s) Employee benefits Pursuant to relevant PRC regulations, the Company is required to make contributions to various defined contribution plans organized by municipal and provincial PRC governments. The contributions are made for each PRC employee at rates ranging from 24.3% to 53.1% on a standard salary base as determined by local social security bureau. Contributions to the defined contribution plans are charged to the consolidated statements of comprehensive income when the related service is provided. For the years ended December 31, 2016, 2017, and 2018, the costs of the Company’s obligations to the defined contribution plans amounted to RMB60,327, RMB84,275, and RMB129,455, respectively. The Company has no other obligation for the payment of employee benefits associated with these plans beyond the contributions described above.
Income taxes	(t) Income taxes The Company follows the asset and liability method in accounting for income taxes in accordance to ASC topic 740 “Taxation” (“ASC 740”), Income Taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The Company adopted ASC 740 to account for uncertainty in income taxes. ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the consolidated financial statements. The Company recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to an unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income (loss). The Company does not expect that the position of unrecognized tax benefits will materially change within the next twelve months of December 31, 2018. In accordance with PRC Tax Administration Law on the Levying and Collection of Taxes, the PRC authorities generally have up to five years to assess underpaid tax plus penalties and interest for PRC entities’ tax filings. In case of tax evasion, which is not clearly defined in the law, there is no limitation on the tax years open for investigation. Accordingly, the PRC entities remain subject to examination by the tax authorities based on above.
Share based compensation	(u) Share based compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognizes the cost over the period the employee is required to provide service in exchange for the award, which generally is the vesting period. The Company recognizes compensation cost for an award with only service conditions that has a graded vesting schedule on a straight-line basis over the requisite service period for the entire award, net of estimated forfeitures, provided that the cumulative amount of compensation cost recognized at any date at least equals the portion of the grant-date value of such award that is vested at that date. Forfeiture rates are estimated based on historical and future expectations of employee turnover rates.
Commitments and contingencies	(v) Commitments and contingencies In the normal course of business, the Company is subject to loss contingencies, such as legal proceedings and claims arising out of its business, that cover a wide range of matters, including, among others, government investigations, shareholder lawsuits, and non-income tax matters. An accrual for a loss contingency is recognized when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed.
Earnings (loss) per share	(w) Earnings (loss) per share Basic earnings (loss) per Class A and Class B ordinary share is computed by dividing net income (loss) attributable to Tarena International’s Class A and Class B ordinary shareholders by the weighted average number of Class A and Class B ordinary shares outstanding during the year using the two-class method. Under the two-class method, net income (loss) attributable to Tarena International’s Class A and Class B ordinary shareholders is allocated between Class A and Class B ordinary shares and other participating securities, if any, based on participating rights in undistributed earnings. Diluted earnings per share is calculated by dividing net income (loss) attributable to Tarena International’s Class A and Class B ordinary shareholders as adjusted for the effect of dilutive Class A and Class B ordinary share equivalents, if any, by the weighted average number of Class A and Class B ordinary and dilutive Class A and Class B ordinary share equivalents outstanding during the year. Class A and Class B ordinary share equivalents include the Class A and Class B ordinary shares issuable upon the exercise of the outstanding share options (using the treasury stock method). Potential dilutive securities are not included in the calculation of diluted earnings (loss) per Class A and Class B ordinary share if the impact is anti-dilutive. If there is a loss from continuing operations, diluted EPS would be computed in the same manner as basic EPS is computed, even if an entity has net income after adjusting for a discontinued operation or an extraordinary item.
Segment reporting	(x) Segment reporting The Company uses the management approach in determining its operating segments. The management approach considers the internal reporting used by the Company’s chief operating decision maker for making decisions about the allocation of resources to and the assessment of the performance of the segments of the Company. Management has determined that the Company has two operating segments, which is the Adult Training segment and Kid Training segment. The majority of the Company’s operations and customers are located in the PRC. Consequently, no geographic information is presented.
Fair value measurements	(y) Fair value measurements The Company applies the provisions of ASC Topic 820, Fair Value Measurements and Disclosures, for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring and non-recurring basis. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. ASC Topic 820 also establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 establishes three levels of inputs that may be used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: · Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. · Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. · Level 3 inputs are unobservable inputs for the asset or liability. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. The carrying amounts of cash and cash equivalents, current time deposits, accounts receivable, loans to employees, amounts due from related parties, accounts payable, amounts due to related parties, accrued expenses and other current liabilities as of December 31, 2017 and 2018 approximate their fair value because of short maturity of these instruments. The carrying amounts of non-current time deposits as of December 31, 2017 and 2018 approximates their fair value since the interest rates of the time deposits did not differ significantly from the market interest rates for similar types of time deposits. The fair values of time deposits as of December 31, 2017 and 2018 are categorized as Level 2 measurement.
Recently issued accounting standards	(z) Recently issued accounting standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. The new standard requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases with terms longer than 12 months. The Company plans to make a policy election that will keep leases with an initial term of 12 months or less off the balance sheet and will result in recognizing those lease payments in the consolidated statements of comprehensive income comprehensive income on a straight-line basis over the lease term. Consistent with current GAAP, the recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a financing or operating lease. However, unlike current GAAP, which requires only capital leases to be recognized on the balance sheet, ASU 2016-02 will require both types of leases to be recognized on the balance sheet. As a result, lessees will be required to put most leases on their balance sheets while recognizing expense on their statements of comprehensive income in a manner similar to current accounting. In addition, this guidance requires disclosures about the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 specifies a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements and that the new and enhanced disclosures be provided for each period presented (including comparative periods). In July 2018, the FASB issued ASU 2018-11, Leases (ASC 842): Targeted Improvements, which provides companies an optional adoption method to ASU 2016-02 whereby a company does not have to adjust comparative period financial statements for the new standard. The new standard will be effective for the Company on January 1, 2019. The Company estimates that approximately RMB767 million and RMB731 million would be recognized as total right-of-use assets and total lease liabilities on our consolidated balance sheet as of January 1, 2019. The Company does not expect the new standard to have a material impact on its results of operations or cash flows. In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326) , Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The amendments affect loans, debt securities, trade receivables, net investments in leases, exposures on guarantee liabilities, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. The standard is effective for the Company from fiscal year 2020, with early adoption permitted for fiscal year 2019. The Company is evaluating the impact of the adoption of this standard on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. Based on management’s preliminary assessment, the Company believes that the change will not have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13 , Fair Value Measurement (Topic 820)- Disclosure Framework ： Changes to the Disclosure Requirements for Fair Value Measurement. The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for any removed or modified disclosures. The Company is currently assessing the timing and impact of adopting the updated provisions to its consolidated financial statements. Recently issued ASUs by the FASB, except for the ones mentioned above, have no material impact on the Company’s consolidated results of operations or financial position.

DESCRIPTION OF BUSINESS, ORGA_2

DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Tables)	12 Months Ended
	Dec. 31, 2018
Concentration Risk [Line Items]
Schedule of Variable Interest Entity Information	December 31, 2017 2018 RMB RMB Cash 294 1,376 Amounts due from related parties 33,744 34,335 Prepaid expenses and other current assets 1 617 Total current assets 34,039 36,328 Property and equipment, net — 2,652 Long term investments 46,500 38,380 Deferred income tax assets 684 916 Other non-current assets 2,880 333 Total assets 84,103 78,609 Income taxes payable 3,052 3,398 Accrued expenses and other current liabilities 186 2,115 Amounts due to related parties, including amounts due to WFOE for accrued service fees 78,665 89,884 Total current liabilities 81,903 95,397 Other non-current liabilities 267 267 Total liabilities 82,170 95,664 Year Ended December 31, 2016 2017 2018 RMB RMB RMB Net revenues — — 4,232 Net income (loss) 99 (11,597) (16,900) Net cash used in operating activities (727) (2,996) 1,540 Net cash used in investing activities (11,886) (29,380) (24,083) Net cash provided by financing activities 12,200 32,040 23,625
Net revenues [Member] \| Product concentration [Member]
Concentration Risk [Line Items]
Schedule of Revenue Concentration	Year Ended December 31, 2016 2017 2018 Digital Arts 26.7 % 31.5 % 28.7 % Java 32.9 % 32.0 % 18.3 % Web Front 12.9 % 7.0 % 3.9 % Total 72.5 % 70.5 % 50.9 %

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2018
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Schedule of Cash, cash equivalents, time deposits and restricted cash	December 31, 2017 2018 RMB RMB RMB denominated bank deposits with financial institutions in the PRC 910,804 511,866 US dollar denominated bank deposits with financial institutions in the PRC 135,686 131,129 US dollar denominated bank deposits with financial institutions in Hong Kong Special Administrative Region (“HK SAR”) 4,387 53,148 HK dollar denominated bank deposits with financial institutions in HK SAR 1 15 RMB denominated bank deposits with a financial institution in HK SAR 21 147 US dollar denominated bank deposits with a financial institution in the U.S. 68,795 6,311 TWD denominated bank deposits with a financial institution in Taiwan — 2,170 Total 1,119,694 704,786
Schedule of Property, Plant and Equipment, Useful Life	Office buildings 45 years Furniture 5 years Office equipment 3 to 4 years Leasehold improvements Shorter of the lease term or the estimated useful life of the assets
Schedule of Change In Refund Liability	As of December 31, 2018 Balances without adoption of Effect change As reported ASC 606 higher/(lower) Deferred revenue 830,019 865,791 (35,772) Accrued expenses and other current liabilities 365,428 329,656 35,772

RESTATEMENT AND RECLASSIFICAT_2

RESTATEMENT AND RECLASSIFICATIONS (Tables)	12 Months Ended
RESTATEMENT AND RECLASSIFICATIONS (Tables)	Dec. 31, 2018
RESTATEMENT AND RECLASSIFICATIONS
Schedule of Reclassifications and restatement	The effects of the reclassifications and restatement for the errors on the consolidated balance sheets are as follows: As of December 31, 2016 As previously Restatement As Item reported adjustments Restated RMB RMB RMB ASSETS Current assets: Cash and cash equivalents 810,672 — 810,672 Time deposits 416,724 — 416,724 Restricted cash — — — Accounts receivable, net of allowance for doubtful accounts (a),(b)(e) 97,374 (79,059) 18,315 Amounts due from a related party (d) — 4,978 4,978 Prepaid expenses and other current assets (b) 126,088 5,017 131,105 Total current assets 1,450,858 (69,064) 1,381,794 Time deposits 58,667 — 58,667 Accounts receivable, net of allowance for doubtful accounts-non current (a) 1,176 8,089 9,265 Amounts due from a related party (d) — 6,500 6,500 Property and equipment, net (b),(e) 437,337 (10,336) 427,001 Intangible assets, net (e) — 5,194 5,194 Goodwill 3,365 — 3,365 Long term investments 41,760 — 41,760 Deferred income tax assets (f) 54,127 (49,575) 4,552 Other non-current assets (d),(e) 37,722 (1,810) 35,912 Total assets 2,085,012 (111,002) 1,974,010 LIABILITIES AND SHAREHOLDERS’ EQUITY 　 Current liabilities: 　 Accounts payable 4,502 — 4,502 Amounts due to related parties (d) 79 447 526 Income taxes payable (f) 91,240 (40,853) 50,387 Deferred revenue (a),(e)　 266,061 62,721 328,782 Accrued expenses and other current liabilities (a),(b),(e) 117,867 51,655 169,522 Total current liabilities 479,749 73,970 553,719 Other non-current liabilities 7,043 — 7,043 Total liabilities 486,792 73,970 560,762 Shareholders’ equity : 　　　 Ordinary shares 388 — 388 Treasury shares (93,761) — (93,761) Additional paid-in capital 995,216 — 995,216 Accumulated other comprehensive income 58,204 — 58,204 Retained earnings (a),(b),(d),(e),(f) 638,173 (184,972) 453,201 Total shareholders’ equity 　 1,598,220 (184,972) 1,413,248 Total liabilities and equity 2,085,012 (111,002) 1,974,010 As of December 31, 2017 As previously Restatement As Item reported adjustments Restated RMB RMB RMB ASSETS Current assets: Cash and cash equivalents 686,691 — 686,691 Time deposits 432,536 — 432,536 Accounts receivable, net of allowance for doubtful accounts (a),(b),(e) 216,700 (165,057) 51,643 Amounts due from a related party (d) 231 6,711 6,942 Prepaid expenses and other current assets (b) 156,360 (653) 155,707 Total current assets 1,492,518 (158,999) 1,333,519 Time deposits 505 — 505 Accounts receivable, net of allowance for doubtful accounts-non current (a) 14,582 (8,178) 6,404 Amounts due from a related party (d) — 6,500 6,500 Property and equipment, net (b), (e) 519,691 (17,352) 502,339 Intangible assets, net (e) — 4,753 4,753 Goodwill 3,365 — 3,365 Long term investments (e) 101,920 (24,750) 77,170 Deferred income tax assets (f) 72,600 (66,979) 5,621 Other non-current assets (d),(e) 77,464 787 78,251 Total assets 2,282,645 (264,218) 2,018,427 LIABILITIES AND SHAREHOLDERS’ EQUITY 　 Current liabilities: Accounts payable 11,351 — 11,351 Amounts due to related parties (d) — 216 216 Income taxes payable (f) 125,971 (58,638) 67,333 Deferred revenue (a),(c),(e) 302,163 50,097 352,260 Accrued expenses and other current liabilities (a),(b),(c),(e) 184,646 128,783 313,429 Total current liabilities 624,131 120,458 744,589 Other non-current liabilities 4,329 — 4,329 Total liabilities 628,460 120,458 748,918 Shareholders’ equity : 　　　 Ordinary shares 401 — 401 Treasury shares (255,103) — (255,103) Additional paid-in capital 1,094,872 — 1,094,872 Accumulated other comprehensive income (e) 54,122 (14,750) 39,372 Retained earnings (a), (b), (d), (e), (f) 759,893 (369,926) 389,967 Total shareholders’ equity 1,654,185 (384,676) 1,269,509 Total liabilities and equity 2,282,645 (264,218) 2,018,427 The effects of the reclassifications and restatement for the errors on the consolidated statements of operations and comprehensive loss are as follows: Year Ended December 31, 2016 As previously Restatement As Item reported adjustments Restated RMB RMB RMB Net revenues (a),(e) 1,579,604 (59,569) 1,520,035 Cost of revenues (a),(b) (449,104) 5,637 (443,467) Selling and marketing expenses (b) (527,553) 3,476 (524,077) General and administrative expenses (a),(b),(d) (307,519) 43,074 (264,445) Research and development expenses (65,594) — (65,594) Operating income 229,834 (7,382) 222,452 Interest income (a),(b) 23,974 1,091 25,065 Other income 15,960 — 15,960 Loss on foreign currency forward contract (12,898) — (12,898) Foreign currency exchange gains 3,760 — 3,760 Income before income taxes 260,630 (6,291) 254,339 Income tax expense (f) (18,776) (9,443) (28,219) Net income 241,854 (15,734) 226,120 Year Ended December 31, 2017 Item As previously Restatement As reported adjustments Restated RMB RMB RMB Net revenues (a),(c),(e) 1,973,806 (220,111) 1,753,695 Cost of revenues (a),(b) (599,199) 6,253 (592,946) Selling and marketing expenses (b) (713,120) 5,963 (707,157) General and administrative expenses (a),(b),(d) (392,296) 37,464 (354,832) Research and development expenses (100,032) — (100,032) Operating income (loss) 169,159 (170,431) (1,272) Interest income (a),(b) 21,000 (4,903) 16,097 Other income (loss) (e) 26,702 (10,000) 16,702 Foreign currency exchange loss (6,284) — (6,284) Income before income taxes 210,577 (185,334) 25,243 Income tax expense (f) (25,770) 380 (25,390) Net income (loss) 184,807 (184,954) (147) The effects of the reclassifications and restatement for the errors on the consolidated statements of cash flows are as follows: Year Ended December 31, 2016 As previously Restatement As reported adjustments Restated RMB RMB RMB Operating activities: Net income 241,854 (15,734) 226,120 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 72,757 879 73,636 Bad debt expense 33,605 (33,605) — Loss on disposal of property and equipment 297 — 297 Deferred income tax benefit (18,895) 17,348 (1,547) Share based compensation expense 67,824 — 67,824 Investment loss (gain) 29 (100) (71) Foreign currency exchange gain, net (3,760) (29,645) (33,405) Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi Accounts receivable 22,928 (18,934) 3,994 Amounts due from a related party — (3,753) (3,753) Prepaid expenses and other current assets (60,362) (5,129) (65,491) Accrued interest income on time deposits 5,264 — 5,264 Other non-current assets (7,071) 1,364 (5,707) Accounts payable (248) — (248) Amounts due to related parties (800) — (800) Income taxes payable 34,947 (7,904) 27,043 Deferred revenue 101,439 21,934 123,373 Accrued expenses and other current liabilities 36,781 45,296 82,077 Other non-current liabilities (2,559) — (2,559) Net cash provided by operating activities 524,030 (27,983) 496,047 Investing activities: Purchase of property and equipment and intangible assets (381,982) (1,693) (383,675) Proceeds from disposal of property and equipment 358 88 446 Purchase of short-term investments (1,937,000) 1,517,000 (420,000) Proceeds from maturity of short-term investments 1,937,000 (1,517,000) 420,000 Purchase of long-term investments (12,755) — (12,755) Purchase of time deposits (421,170) (217,000) (638,170) Proceeds from maturity of time deposits 678,741 246,645 925,386 Payment for acquisition of Hanru Hangzhou (4,360) — (4,360) Cash acquired from acquisition of Hanru Hangzhou 148 — 148 Issuance of loan to a related party (6,500) — (6,500) Issuance of loans to employees (12,025) (118) (12,143) Proceeds from repayment of loans from employees 3,096 61 3,157 Net cash used in investing activities (156,449) 27,983 (128,466) Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 20,388 — 20,388 Payment of dividend (54,026) — (54,026) Repurchase of treasury shares (44,406) — (44,406) Net cash used in financing activities (78,044) — (78,044) Changes in cash and cash equivalents 289,537 289,537 Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash 7,197 — 7,197 Net change in cash, cash equivalents and restricted cash 296,734 — 296,734 Cash, cash equivalents and restricted cash at beginning of year 513,938 — 513,938 Cash, cash equivalents and restricted cash at end of year 810,672 — 810,672 Year Ended December 31, 2017 As previously Restatement As reported adjustments Restated RMB RMB RMB Operating activities: Net income (loss) 184,807 (184,954) (147) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 100,724 39 100,763 Bad debt expense 31,499 (31,499) — Loss on disposal of property and equipment 917 — 917 Deferred income tax benefit (18,473) 17,302 (1,171) Share based compensation expense 77,415 — 77,415 Investment income (19,267) 19,314 47 Foreign currency exchange losses, net 6,471 (374) 6,097 Impairment of long-term investments — 10,000 10,000 Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi Accounts receivable (164,231) 133,765 (30,466) Amounts due from related parties — (1,964) (1,964) Prepaid expenses and other current assets (18,712) (14,414) (33,126) Accrued interest income on time deposits 1,809 — 1,809 Other non-current assets (12,432) 19,013 6,581 Accounts payable (196) — (196) Amounts due to related parties (310) — (310) Income taxes payable 34,731 (17,682) 17,049 Deferred revenue 36,102 (12,625) 23,477 Accrued expenses and other current liabilities 50,407 77,127 127,534 Other non-current liabilities (2,604) — (2,604) Net cash provided by operating activities 288,657 13,048 301,705 Investing activities: Purchase of property and equipment and intangible assets (177,251) 432 (176,819) Proceeds from disposal of property and equipment 462 (39) 423 Purchase of short-term investments (1,970,000) 1,020,000 (950,000) Proceeds from maturity of short-term investments 1,989,314 (1,039,314) 950,000 Purchase of long-term investments (50,500) — (50,500) Payment of long-term investment deposit (4,380) — (4,380) Purchase of time deposits (509,739) (6,000) (515,739) Proceeds from maturity of time deposits 528,999 5,959 534,958 Issuance of loans to employees (35,379) 4,753 (30,626) Proceeds from repayment of loans from employees 5,352 787 6,139 Net cash used in investing activities (223,122) (13,422) (236,544) Financing activities: Issuance of Class A ordinary shares in connection with exercise of share options 22,254 — 22,254 Payment of dividend (63,087) — (63,087) Repurchase of treasury shares (143,389) — (143,389) Net cash used in financing activities (184,222) — (184,222) Changes in cash and cash equivalents (118,687) (374) (119,061) Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash (5,294) 374 (4,920) Net change in cash, cash equivalents and restricted cash (123,981) — (123,981) Cash, cash equivalents and restricted cash at beginning of year 810,672 — 810,672 Cash, cash equivalents and restricted cash at end of year 686,691 — 686,691

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
ACCOUNTS RECEIVABLE (Tables)	Dec. 31, 2018
ACCOUNTS RECEIVABLE
Schedule of Accounts Receivable	December 31, 2017 2018 RMB RMB Accounts receivable: Gross 67,235 69,301 Unearned interest (9,188) (17,243) Total accounts receivable 58,047 52,058 Less: allowance for doubtful accounts — — Accounts receivable, net 58,047 52,058
Summary of Allowance for Doubtful Accounts	December 31, 2017 2018 RMB RMB Accounts receivable – current portion 51,643 39,901 Accounts receivable – non-current portion 6,404 12,157 Total accounts receivable, net 58,047 52,058

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT, NET (Tables)	Dec. 31, 2018
PROPERTY AND EQUIPMENT, NET
Schedule of Property and Equipment	Property and equipment consisted of the following: December 31, 2017 2018 RMB RMB Office buildings 285,184 　 287,208 Furniture 30,061 　 49,374 Office equipment 350,432 　 481,034 Leasehold improvements 94,666 　 184,687 Total property and equipment 760,343 　 1,002,303 Less: accumulated depreciation (258,004) 　 (376,235) Property and equipment, net 502,339 　 626,068
Schedule of Depreciation Expense	Depreciation expense for property and equipment was allocated to the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Cost of revenues 62,000 85,059 127,850 Selling and marketing expenses 3,226 5,313 11,211 General and administrative expenses 6,455 8,064 16,511 Research and development expenses 1,177 1,461 1,335 Total 72,858 99,897 156,907

LONG-TERM INVESTMENTS, NET (Tab

LONG-TERM INVESTMENTS, NET (Tables)	12 Months Ended
LONG-TERM INVESTMENTS, NET (Tables)	Dec. 31, 2018
LONG-TERM INVESTMENTS, NET
Schedule of Long-term investments	December 31, 2017 2018 RMB RMB Equity investments without readily determinable fair values A company providing mechanic training (a) 12,000 　 12,000 A company providing intelligent robot products (b) 24,000 　 24,000 A company providing information sharing IT platform (c) 22,500 　 22,500 Other equity investments without readily determinable fair values (d) 18,000 　 20,880 Less：impairment of equity investments without readily determinable fair values 　 — 　 (35,000) Total equity investments without readily determinable fair values, net 　 76,500 　 44,380 Equity method investments 　　　　 Companies providing hockey program management (e) 670 　 2,105 A company providing Internet product solutions (f) — 　 13,690 Less：impairment of equity method investments 　 — 　 (524) Total equity method investments, net 　 670 　 15,271 Available-for-sale investment (g) 15,000 　 15,000 impairment of available-for-sale investments (15,000) (15,000) Total available-for-sale investment, net — — Total long-term investments, net 77,170 　 59,651 (a) In October 2015, the Company paid RMB12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair. No impairment loss was recognized for both the years ended December 31, 2017 and 2018. (b) In May 2017, the Company paid RMB24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated in fiscal year 2018, the Company recognized impairment loss of nil and RMB24,000 for the years ended December 31, 2017 and 2018, respectively. (c) In July 2017, the Company paid RMB22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform. No impairment loss was recognized for both the years ended December 31, 2017 and 2018. (d) During the years ended December 31, 2017 and 2018, the Company acquired minority equity interest in several third-party companies.The Company recognized impairment loss of nil and RMB11,000 for the years ended December 31, 2017 and 2018, respectively. (e) In October 2016, the Company paid RMB790 in cash to acquire 28.5% of equity interest of a hockey program management company through investment in its common shares and accounted for the investment using equity method. The Company recognized impairment loss of nil and RMB524 for the year ended December 31, 2017 and 2018, respectively. In December 2018, the Company paid RMB1,580 in cash to acquire 20% of equity interest in another hockey program management company and accounted for the investment using equity method. (f) In January 2018, the company paid RMB14,000 in cash to acquire 20% of equity interest of a company which provides IT consulting services and programming account for the investment using equity method. No impairment loss was recognized for the year ended December 31, 2018. (g) In October 2016, the Company paid RMB10,000 in cash to acquire 13.9% equity interest in a private company, which provides employment course trainings and recruitment services. Because the investment terms contained both substantive liquidation preference over common stock and substantive redemption provision that is not available to common shareholders, the investment is not substantially similar to common stock. In addition, since the investment is redeemable at the option of the Company, the investment qualifies as a debt security. The Company recorded the investment as available-for-sale investment and recorded an accumulative increase of RMB5,000 in fair value of the investment with nil income tax effect by the end of 2016, as a component of other comprehensive income. In 2017, the investee received financing through a new private placement, the Company’s equity interest was reduced to 11.25%. However, it was subsequently found that the investee provided overstated financial statements to the new investors during the private placement in 2017 and lost in a lawsuit sued by one of the shareholders. Accordingly, the Company determined it to be an other-than-temporary impairment and fully impaired it in 2017.

OTHER NON-CURRENT ASSET (Tables

OTHER NON-CURRENT ASSET (Tables)	12 Months Ended
OTHER NON-CURRENT ASSET (Tables)	Dec. 31, 2018
OTHER NON-CURRENT ASSET
Schedule of Other non-current assets	Year Ended December 31, 2017 2018 RMB RMB Other non-current assets: Rent and property management deposits 32,973 48,434 Housing loans made to employees (a) 11,339 29,893 Prepayment for equipment and leasehold improvement 11,717 13,089 Pledge loans to employees (b) 9,026 11,346 Other loans to employees 8,816 7,197 Others 4,380 12,041 Total other non-current assets 78,251 122,000 (a) Starting from 2016, the Company began to provide five-year loans with the annual interest rate of 3.325% to the employees, for their purchase of houses. (b) Starting from 2016, the Company began to provide five-year loans with the annual interest rate of 5% to the employees pledged by their share options. The interest was paid monthly and the principal was repaid upon maturity.

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	Dec. 31, 2018
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Schedule of Accrued Expenses and Other Current Liabilities	Year Ended December 31, 2017 2018 RMB RMB Guarantee liability 83,693 27,505 Accrued payroll and employee benefits 88,713 128,224 Payable to a third-party individual 58,697 64,515 Refund liability — 35,772 VAT and other tax payables 18,015 34,731 Professional service fee 9,125 22,403 Rental fee 13,215 23,808 Payable for repurchasing of treasury shares 17,368 5,058 Others 24,603 23,412 Total 313,429 365,428

NET REVENUES (Tables)

NET REVENUES (Tables)	12 Months Ended
NET REVENUES (Tables)	Dec. 31, 2018
NET REVENUES
Schedule of net revenue	Year Ended December 31, 2016 2017 2018 RMB RMB RMB Tuition fee 1,491,594 1,658,981 1,896,642 Certification service fee 35,976 50,321 82,376 Loan referral service fee 9,855 33,533 18,096 Others 1,876 2,822 12,444 Business taxes and surcharges (19,266) (11,842) (13,878) Total net revenues 1,520,035 1,733,815 1,995,680 Year Ended December 31, 2016 2017 2018 RMB RMB RMB Timing of revenue recognition Services transferred at a point in time 45,831 83,854 100,472 Services transferred over time 1,474,204 1,649,961 1,895,208 Total net revenues 1,520,035 1,733,815 1,995,680 Year Ended December 31, 2016 2017 2018 RMB RMB RMB Guarantee service — 19,880 89,691

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2018
INCOME TAXES
Schedule of Income (Loss) before Income Taxes	The components of income (loss) before income taxes are as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB PRC 334,278 104,307 (467,953) Hong Kong (573) (2,415) (2,031) Cayman Islands (79,366) (76,649) (126,887) Taiwan — — (166) Canada — — (27) Total income (loss) before income taxes 254,339 25,243 (597,064)
Schedule of Income Tax Expense (Benefit)	Income tax expense (benefit) consisted of the following: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Current income tax expense 29,766 26,561 16,058 Withholding tax expense — — 25,672 Deferred income tax benefit (1,547) (1,171) (46,595) Total 28,219 25,390 (4,865)
Schedule of Income Tax Rate Reconciliation	The actual income tax expense reported in the consolidated statements of comprehensive income for each of the years ended December 31, 2016, 2017 and 2018 differs from the amount computed by applying the PRC statutory income tax rate to income before income taxes due to the following: Year Ended December 31, 2016 2017 2018 PRC statutory income tax rate 25.0 % 25.0 % 25.0 % Increase (decrease) in effective income tax rate resulting from: Impact of different tax rates in other jurisdictions 7.8 % 76.7 % (5.3) % Research and development bonus deduction (3.2) % (34.7) % 1.4 % Non-deductible expenses 1.7 % 62.7 % (1.4) % Preferential tax rates (23.7) % (199.9) % (0.3) % Change in valuation allowance 3.5 % 170.8 % (14.3) % Withholding tax — — (4.3) % Actual income tax expense 11.1 % 100.6 % 0.8 %
Schedule of Deferred Income Tax Assets	Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities were as follows: December 31, 2017 2018 RMB RMB Non-current deferred income tax assets: Impairment of long-term investments 2,500 8,850 Tax loss carry forwards 33,201 157,264 Advertising expense 36,543 53,019 Others 5,648 4,162 Total non-current deferred income tax assets 77,892 223,295 Valuation allowance (72,271) (169,543) Non-current deferred income tax assets, net 5,621 53,752 Non-current deferred income tax liabilities: Valuation appreciation of intangible assets — 2,283 Non-current deferred income tax liabilities* — 2,283
Summary of Valuation Allowance	The movements of the valuation allowance are as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Balance at the beginning of the year 28,583 37,521 72,271 Additions of valuation allowance 13,118 38,976 97,776 Reduction of valuation allowance (4,180) (4,226) (504) Balance at the end of the year 37,521 72,271 169,543

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
RELATED PARTY TRANSACTIONS (Tables)	Dec. 31, 2018
RELATED PARTY TRANSACTIONS
Schedule of Related Party Transactions	The Company had the following balances and transactions with related parties: Related party balances As of December 31, 2017 2018 RMB RMB Amounts due from a related party Chuanbang (i) 6,942 9,938 Amounts due from a related party - non-current Ms. Han Lijuan (ii) 6,500 6,500 Notes: (i) The balance resulted from the service fee to Chuanbang for providing cash collection service. (ii) The balance represented a long-term loan to Ms. Han Lijuan and upon the Company’s request to avoid any risk of possible violation of Sarbanes-Oxley Act, all of the balance was repaid to the Company on April 2, 2020. Related party transactions The significant related party transactions for the years ended December 31, 2016, 2017 and 2018 are summarized as follows: Year Ended December 31, 2016 2017 2018 RMB RMB RMB Cash collection service expense to Chuanbang (a) 6,445 3,230 3,489 Franchise and training service income from Bolton School 902 1,114 529 Franchise, training and consulting service income from Ningxia Company — 520 493 Training service expense to Bolton School 102 1,064 798 Interest income from Loan to Ms. Han Lijuan 81 325 325 Loan to Ms. Han Lijuan 6,500 — — Notes: (a) Pursuant to an agreement between Chuanbang and the Company, beginning August 2013, Chuanbang provides cash collection service on the Company’s accounts receivable. The fee for the service is calculated based on 2%~20% of the amount collected.

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	12 Months Ended
SHARE BASED COMPENSATION (Tables)	Dec. 31, 2018
SHARE BASED COMPENSATION
Summary of share options activity	Weighted Weighted Average Number of Average Remaining Aggregate Share Exercise Price Contractual Intrinsic Options US$ Years Value US$ Outstanding at December 31, 2015 5,574,441 1.77 5.55 45,569 Granted 1,138,119 1.90 Exercised (2,106,043) 1.46 Forfeited (278,142) 2.89 Expired — — Outstanding at December 31, 2016 4,328,375 1.88 5.84 56,743 Granted 682,435 0.88 Exercised (1,898,391) 1.74 Forfeited (98,067) 3.30 Expired — — Outstanding at December 31, 2017 3,014,352 1.70 5.83 40,031 Granted 1,085,094 0.84 Exercised (615,746) 0.72 Forfeited (86,903) 1.49 Expired — — Outstanding at December 31, 2018 3,396,797 1.61 6.47 15,919 Vested and expected to vest as of December 31, 2018 3,262,468 1.56 6.43 15,469 Exercisable as of December 31, 2018 2,824,485 1.50 6.21 13,551
Summary of fair value assumptions	The Company calculated the fair value of the share options on the grant date using the Binomial option-pricing valuation model. The assumptions used in the valuation model are summarized in the following table. Year Ended December 31, 2016 2017 2018 US$ US$ US$ Expected volatility 63.5%‑68.8% 63.7%‑67.8% 53.52%-55.70% Expected dividends yield Exercise multiple 2.0 2.0 2.2-2.8 Risk-free interest rate per annum 2.15%‑3.18% 2.88%‑3.22% 2.54%-3.23% The fair value of underlying ordinary shares (per share) US$9.99‑US$16.54 US$14.27‑US$19.03 US$6.97-US$14.99
Schedule of fair values of the options granted	Year Ended December 31, 2016 2017 2018 US$ US$ US$ Weighted average grant date fair value of option per share 10.15 15.99 12.35 Aggregate grant date fair value of options 11,551 10,915 13,402
Summary of the non-vested shares activity	Weighted Average Number of Non- Grant Date Fair vested Shares Value US$ Outstanding as of December 31, 2015 25,000 9.63 Granted 20,000 10.82 Vested (35,000) 9.97 Forfeited — — Outstanding as of December 31, 2016 10,000 10.82 Granted 129,835 14.93 Vested (17,367) 14.08 Forfeited (15,701) 14.47 Outstanding as of December 31, 2017 106,767 14.75 Granted 211,977 11.20 Vested (16,557) 14.22 Forfeited (22,541) 12.39 Outstanding as of December 31, 2018 279,646 12.28

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	12 Months Ended
EARNINGS (LOSS) PER SHARE (Tables)	Dec. 31, 2018
EARNINGS (LOSS) PER SHARE
Schedule of Basic and Diluted Earnings Loss Per Share	Year Ended December 31, 2016 2017 2018 RMB RMB RMB Numerator: Net income (loss) attributable to Class A and Class B ordinary shareholders 226,120 (147) (590,174) Net income (loss) for basic and diluted earnings per share 226,120 (147) (590,174) Denominator: Denominator for basic earnings per share: 　　　 Weighted average number of Class A and Class B ordinary shares outstanding 55,540,670 56,849,332 54,929,910 Dilutive effect of outstanding share options 3,464,591 — — Denominator for diluted earnings (loss) per share 59,005,261 56,849,332 54,929,910 Basic earnings (loss) per Class A and Class B ordinary share 4.07 (0.00) (10.74) Diluted earnings (loss) per Class A and Class B ordinary share 3.83 (0.00) (10.74)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Dec. 31, 2018
COMMITMENTS AND CONTINGENCIES
Schedule of Future Minimum Lease Payments	The Company’s leases do not contain any contingent rent payment terms. RMB Year ending December 31, 2019 289,324 2020 232,688 2021 168,329 2022 119,024 2023 66,575 2024 and thereafter 47,447 Total 923,387

BUSINESS COMBINATION (Tables)

BUSINESS COMBINATION (Tables)	12 Months Ended
BUSINESS COMBINATION (Tables)	Dec. 31, 2018
BUSINESS COMBINATION
Schedule of allocation of the consideration of the assets acquired and liabilities assumed	RMB Amortization period Cash and cash equivalents 3,874 Financial receivables 7,550 Prepaid and other current assets 6,138 Inventory, net 803 Property and equipment 12,851 Intangible assets 12,688 10 Goodwill 49,417 Other non-current assets 114 Total assets 93,435 Deferred revenue (31,906) Accounts payable and other current liabilities (1,046) Deferred tax liabilities (2,283) Total 58,200

GOODWILL (Tables)

GOODWILL (Tables)	12 Months Ended
GOODWILL (Tables)	Dec. 31, 2018
GOODWILL
Summary of goodwill	As of December, 31 2017 2018 Beginning balance 3,365 3,365 Acquisition — 49,417 Ending balance 3,365 52,782

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
SEGMENT INFORMATION (Tables)	Dec. 31, 2018
SEGMENT INFORMATION
Schedule of segment information	Year Ended December 31, 2018 Adult Training Kid Training Total RMB RMB RMB Revenue 1,915,446 169,925 2,085,371 Cost (690,252) (228,297) (918,549) Gross Margin 1,225,194 (58,372) 1,166,822

PARENT ONLY FINANCIAL INFORMA_2

PARENT ONLY FINANCIAL INFORMATION (Tables)	12 Months Ended
PARENT ONLY FINANCIAL INFORMATION (Tables)	Dec. 31, 2018
PARENT ONLY FINANCIAL INFORMATION
Schedule of Condensed Balance Sheets	December 31, 2017 2018 RMB RMB ASSETS Current assets: Cash and cash equivalents 17,658 25,507 Time deposits 65,342 — Prepaid expenses and other current assets 970 696 Total current assets 83,970 26,203 Investments and loans to subsidiaries 1,210,622 567,003 Total assets 1,294,592 593,206 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Short-term bank loan — 13,726 Accrued expenses and other current liabilities (1) 24,454 6,862 Total current liabilities 24,454 20,588 Other non-current liabilities 629 — Total liabilities 25,083 20,588 Commitments and contingencies — — Shareholders’ equity: Class A ordinary shares (US$0.001 par value,860,000,000 shares authorized, 52,340,176 and 52,972,578 shares issued, 49,009,530 and 45,873,437 shares outstanding as of December 31, 2017 and 2018, respectively) 327 331 Class B ordinary shares (US$0.001 par value, 40,000,000 shares authorized, 7,206,059 shares and 7,206,059 shares issued and outstanding as of December 31, 2017 and 2018, respectively) 74 74 Treasury shares (3,330,646 and 7,099,141 class A ordinary shares as of December 31, 2017 and 2018, respectively, at cost) (255,103) (457,169) Additional paid-in capital 1,094,872 1,222,072 Accumulated other comprehensive income 39,372 50,472 Retained earnings (accumulated deficit) 389,967 (243,162) Total shareholders’ equity 1,269,509 572,618 Total liabilities and shareholders’ equity 1,294,592 593,206
Schedule of Condensed Statements of Comprehensive Income	Year Ended December 31, 2016 2017 2018 RMB RMB RMB Selling and marketing expenses — — (403) General and administrative expenses (4,477) (5,218) (5,536) Operating loss (4,477) (5,218) (5,939) Equity in earnings (loss) of subsidiaries 237,662 (913) (589,564) Foreign currency exchange losses (4,753) (421) 341 Interest income 8,027 2,327 413 Loss on foreign currency forward contract (12,898) — — Other income 2,559 4,078 2,550 Income (loss) before income taxes 226,120 (147) (592,199) Income tax expense — — — Net income (loss) 226,120 (147) (592,199) Other comprehensive income Foreign currency translation adjustment, net of nil income tax 22,972 (13,832) 11,100 Unrealized holding gains on available for sale securities, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018, respectively 5,235 11,496 — Less: Reclassification adjustment for loss on available for sale securities realized in net income, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018, respectively (235) (16,496) — Comprehensive income (loss) 254,092 (18,979) (581,099)
Schedule of Condensed Statements of Cash Flows	Year Ended December 31, 2016 2017 2018 RMB RMB RMB Operating activities: Net cash (used in) provided by operating activities (15,581) (17,595) 165,098 Investing activities: Purchase of time deposits (298,688) (196,771) — Proceeds from maturity of time deposits 620,607 363,533 63,452 Investments made to subsidiaries (198,137) — — Foreign currency exchange losses — 10,691 1,890 Net cash provided by investing activities 123,782 177,453 65,342 Financing activities: Proceeds from bank borrowing — — Issuance of Class A ordinary shares in connection with exercise of share options 20,388 22,254 2,952 Payment of dividends (54,026) (63,087) (42,955) Repurchase of treasury shares (44,406) (143,389) (196,957) Net cash used in financing activities (78,044) (184,222) (223,732) Changes in cash and cash equivalents 30,157 (24,364) 6,708 Effect of foreign currency exchange rate changes on cash and cash equivalents 7,338 (1,748) 1,141 Net increase (decrease) in cash and cash equivalents 37,495 (26,112) 7,849 Cash and cash equivalents at beginning of year 6,275 43,770 17,658 Cash and cash equivalents at end of year 43,770 17,658 25,507 Non-cash financing activities: Payable for repurchase of treasury shares — 17,953 5,109

DESCRIPTION OF BUSINESS, ORGA_3

DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Organization) (Details) - CNY (¥) ¥ in Thousands	1 Months Ended	12 Months Ended			13 Months Ended
	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2016	Oct. 31, 2016	Dec. 31, 2015
Variable Interest Entity [Line Items]
Cash			¥ 686,691	¥ 810,672	¥ 810,672		¥ 513,938
Amounts due from related party		¥ 9,938	6,942
Prepaid expenses and other current assets		171,466	155,707
Total current assets		925,574	1,333,519
Property and equipment, net		626,068	502,339
Long term investments		59,651	77,170
Deferred income tax assets		916	684
Other non-current assets		122,000	78,251
Total assets		1,878,047	2,018,427
Income taxes payable		71,847	67,333
Accrued expenses and other current liabilities		365,428	313,429
Amounts due to related parties including amounts due to WOFE for accrued service fees		872	216
Total current liabilities		1,300,421	744,589
Other non-current liabilities		5,983	4,329
Total liabilities		1,306,404	748,918
Net revenues				1,520,035
Net income (loss)		¥ (592,199)	(147)	226,120
Equity Method Investments, Percentage of Equity Acquired through Options		100.00%
Equity Method Investment, Ownership Percentage						13.90%
Proceeds from Collection of Loans Receivable		¥ 26,823	6,139	3,157
Tarena Entities [Member]
Variable Interest Entity [Line Items]
Cash		1,376	294
Amounts due from related party		34,335	33,744
Prepaid expenses and other current assets		617	1
Total current assets		36,328	34,039
Property and equipment, net		2,652
Long term investments		38,380	46,500
Other non-current assets		333	2,880
Total assets		78,609	84,103
Income taxes payable		3,398	3,052
Accrued expenses and other current liabilities		2,115	186
Amounts due to related parties including amounts due to WOFE for accrued service fees		89,884	78,665
Total current liabilities		95,397	81,903
Other non-current liabilities		267	267
Total liabilities		95,664	82,170
Net revenues		4,232
Net income (loss)		(16,900)	(11,597)	99
Net cash used in operating activities		1,540	(2,996)	(727)
Net cash used in investing activities		(24,083)	(29,380)	(11,886)
Net cash provided by financing activities		¥ 23,625	¥ 32,040	¥ 12,200
Mr. Han [Member] \| Tarena Entities [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage		68.90%
Mr. Li [Member] \| Tarena Entities [Member]
Variable Interest Entity [Line Items]
Equity Method Investment, Ownership Percentage		0.10%
Loan Agreements [Member]
Variable Interest Entity [Line Items]
Debt Instrument, Initial Expiration Year		2026
Loan Agreements [Member] \| Equity Holders [Member]
Variable Interest Entity [Line Items]
Debt Instrument, Face Amount		¥ 6,000
Shanghai Tarena Software Technology Co [Member]
Variable Interest Entity [Line Items]
Proceeds from Collection of Loans Receivable	¥ 1,000
Beijing Tarena Jinqiao Technology Co [Member]
Variable Interest Entity [Line Items]
Proceeds from Contributed Capital					¥ 3,000

DESCRIPTION OF BUSINESS, ORGA_4

DESCRIPTION OF BUSINESS, ORGANIZATION, BASIS OF PRESENTATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Significant Concentrations and Risks) (Details) - Net revenues [Member]	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Concentration percentage	10.00%
Product concentration [Member]
Concentration Risk [Line Items]
Concentration percentage	50.90%	70.50%	72.50%
Product concentration [Member] \| Digital Arts [Member]
Concentration Risk [Line Items]
Concentration percentage	28.70%	31.50%	26.70%
Product concentration [Member] \| Java [Member]
Concentration Risk [Line Items]
Concentration percentage	18.30%	32.00%	32.90%
Product concentration [Member] \| Web Front [Member]
Concentration Risk [Line Items]
Concentration percentage	3.90%	7.00%	12.90%
Geographic concentration [Member] \| Beijing [Member]
Concentration Risk [Line Items]
Concentration percentage	13.50%	13.60%	16.00%

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liquidity Condition, Cash, cash equivalents and time deposits, Short-term investment, Property and equipment, Revenue Recognition, Advertising costs, Operating lease, Government grant and Employee benefits (Details) ¥ in Thousands, $ in Millions	12 Months Ended			24 Months Ended
	Dec. 31, 2018CNY (¥)segment	Dec. 31, 2017CNY (¥)	Dec. 31, 2016CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)
Significant Accounting Policies [Line Items]
Net income (loss)	¥ (592,199)	¥ (147)	¥ 226,120
Retained earnings (accumulated deficit)		389,967				¥ (243,162)
Net current liability						374,800
Depreciation and amortization	159,000
Share based compensation expense		124,000
Net Cash Provided by (Used in) Operating Activities	163,081	301,705	496,047
Impairment of long term investments	35,524	10,000
Restricted cash, collateral bank loan					$ 2	14,700
Deferred revenue liability						830,000
Cash, cash equivalents, time deposits and restricted time deposits		1,119,694				704,786
Short-term investment	0	950,000	420,000
Investment income	0	19,314	12,676
Advertising costs	339,385	270,790	213,078
Net revenues			1,520,035
Contributions to employee benefits	¥ 129,455	84,275	60,327
Number of operating segments \| segment	2
Goodwill Impairment				¥ 0
Grant
Significant Accounting Policies [Line Items]
Net revenues	¥ 2,292	7,435	¥ 3,266
PRC \| RMB Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		910,804				511,866
PRC \| US Dollar Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		135,686				131,129
Hong Kong \| RMB Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		21				147
Hong Kong \| US Dollar Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		4,387				53,148
Hong Kong \| HK Dollar Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		1				15
US \| US Dollar Denominated Bank Deposits
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits		¥ 68,795				6,311
Taiwan \| TWD Denominated Bank Deposit
Significant Accounting Policies [Line Items]
Cash, cash equivalents, time deposits and restricted time deposits						¥ 2,170
Office buildings
Significant Accounting Policies [Line Items]
Useful life	45 years
Furniture
Significant Accounting Policies [Line Items]
Useful life	5 years
Minimum
Significant Accounting Policies [Line Items]
Operating lease term					1 year	1 year
Contributions to employee benefits, percentage of salary	24.30%
Business and Value Added Taxes	3.00%
Minimum \| Office equipment
Significant Accounting Policies [Line Items]
Useful life	3 years
Maximum
Significant Accounting Policies [Line Items]
Operating lease term					10 years	10 years
Contributions to employee benefits, percentage of salary	53.10%
Business and Value Added Taxes	6.00%
Maximum \| Office equipment
Significant Accounting Policies [Line Items]
Useful life	4 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Refund liability and impact of adoption of Topic 606 (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Contract with Customer, Asset and Liability [Abstract]
Contract with Customer, Liability	¥ 830,019	¥ 352,260
Deferred revenue	830,019
Accrued expenses and other current liabilities	365,428	¥ 313,429
Balances without adoption of Topic 606
Contract with Customer, Asset and Liability [Abstract]
Deferred revenue	865,791
Accrued expenses and other current liabilities	329,656
Effect change higher/(lower)
Contract with Customer, Asset and Liability [Abstract]
Deferred revenue	(35,772)
Accrued expenses and other current liabilities	¥ 35,772

SUMMARY OF SIGNIFICANT ACCOUN_6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently issued accounting standards (Details) - Scenario Forecast Adjustment - Accounting Standards Update 2016-02 ¥ in Millions	Jan. 01, 2019CNY (¥)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating Lease, Right-of-Use Asset	¥ 767
Operating Lease, Liability	¥ 731

RESTATEMENT AND RECLASSIFICAT_3

RESTATEMENT AND RECLASSIFICATIONS - Consolidated balance sheets (Details) ¥ in Thousands, $ in Millions	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)	Dec. 31, 2017CNY (¥)	Dec. 31, 2016CNY (¥)	Dec. 31, 2015CNY (¥)
Current assets:
Cash and cash equivalents			¥ 686,691	¥ 810,672	¥ 513,938
Time deposits		¥ 158,585	432,536
Restricted cash	$ 2	14,700
Accounts receivable, net of allowance for doubtful accounts		39,901	51,643
Amounts due from a related party		9,938	6,942
Prepaid expenses and other current assets		171,466	155,707
Total current assets		925,574	1,333,519
Time deposits		517	505
Accounts receivable, net of allowance for doubtful accounts-non current		12,157	6,404
Amounts due from a related party		6,500	6,500
Property and equipment, net		626,068	502,339
Intangible assets, net		19,046	4,753
Goodwill		52,782	3,365	3,365
Long term investments		59,651	77,170
Deferred income tax assets		916	684
Other non-current assets		122,000	78,251
Total assets		1,878,047	2,018,427
Current liabilities:
Accounts payable		18,529	11,351
Amounts due to related parties		872	216
Income taxes payable		71,847	67,333
Deferred revenue		830,019	352,260
Accrued expenses and other current liabilities		365,428	313,429
Total current liabilities		1,300,421	744,589
Other non-current liabilities		5,983	4,329
Total liabilities		1,306,404	748,918
Shareholders' equity:
Treasury shares		(457,169)	(255,103)
Additional paid-in capital		1,222,072	1,094,872
Accumulated other comprehensive income		50,472	39,372
Retained earnings		(243,162)	389,967
Total equity attributable to the shareholders of Tarena International, Inc.		572,618	1,269,509
Total liabilities and equity		¥ 1,878,047	2,018,427
As previously reported
Current assets:
Cash and cash equivalents			686,691	810,672	¥ 513,938
Time deposits			432,536	416,724
Accounts receivable, net of allowance for doubtful accounts			216,700	97,374
Amounts due from a related party			231
Prepaid expenses and other current assets			156,360	126,088
Total current assets			1,492,518	1,450,858
Time deposits			505	58,667
Accounts receivable, net of allowance for doubtful accounts-non current			14,582	1,176
Property and equipment, net			519,691	437,337
Goodwill			3,365	3,365
Long term investments			101,920	41,760
Deferred income tax assets			72,600	54,127
Other non-current assets			77,464	37,722
Total assets			2,282,645	2,085,012
Current liabilities:
Accounts payable			11,351	4,502
Amounts due to related parties				79
Income taxes payable			125,971	91,240
Deferred revenue			302,163	266,061
Accrued expenses and other current liabilities			184,646	117,867
Total current liabilities			624,131	479,749
Other non-current liabilities			4,329	7,043
Total liabilities			628,460	486,792
Shareholders' equity:
Ordinary shares			401	388
Treasury shares			(255,103)	(93,761)
Additional paid-in capital			1,094,872	995,216
Accumulated other comprehensive income			54,122	58,204
Retained earnings			759,893	638,173
Total equity attributable to the shareholders of Tarena International, Inc.			1,654,185	1,598,220
Total liabilities and equity			2,282,645	2,085,012
Restatement adjustments
Current assets:
Accounts receivable, net of allowance for doubtful accounts			(165,057)	(79,059)
Amounts due from a related party			6,711	4,978
Prepaid expenses and other current assets			(653)	5,017
Total current assets			(158,999)	(69,064)
Accounts receivable, net of allowance for doubtful accounts-non current			(8,178)	8,089
Amounts due from a related party			6,500	6,500
Property and equipment, net			(17,352)	(10,336)
Intangible assets, net			4,753	5,194
Long term investments			(24,750)
Deferred income tax assets			(66,979)	(49,575)
Other non-current assets			787	(1,810)
Total assets			(264,218)	(111,002)
Current liabilities:
Amounts due to related parties			216	447
Income taxes payable			(58,638)	(40,853)
Deferred revenue			50,097	62,721
Accrued expenses and other current liabilities			128,783	51,655
Total current liabilities			120,458	73,970
Total liabilities			120,458	73,970
Shareholders' equity:
Accumulated other comprehensive income			(14,750)
Retained earnings			(369,926)	(184,972)
Total equity attributable to the shareholders of Tarena International, Inc.			(384,676)	(184,972)
Total liabilities and equity			(264,218)	(111,002)
As Restated
Current assets:
Cash and cash equivalents			686,691	810,672
Time deposits			432,536	416,724
Accounts receivable, net of allowance for doubtful accounts			51,643	18,315
Amounts due from a related party			6,942	4,978
Prepaid expenses and other current assets			155,707	131,105
Total current assets			1,333,519	1,381,794
Time deposits			505	58,667
Accounts receivable, net of allowance for doubtful accounts-non current			6,404	9,265
Amounts due from a related party			6,500	6,500
Property and equipment, net			502,339	427,001
Intangible assets, net			4,753	5,194
Goodwill			3,365	3,365
Long term investments			77,170	41,760
Deferred income tax assets			5,621	4,552
Other non-current assets			78,251	35,912
Total assets			2,018,427	1,974,010
Current liabilities:
Accounts payable			11,351	4,502
Amounts due to related parties			216	526
Income taxes payable			67,333	50,387
Deferred revenue			352,260	328,782
Accrued expenses and other current liabilities			313,429	169,522
Total current liabilities			744,589	553,719
Other non-current liabilities			4,329	7,043
Total liabilities			748,918	560,762
Shareholders' equity:
Ordinary shares			401	388
Treasury shares			(255,103)	(93,761)
Additional paid-in capital			1,094,872	995,216
Accumulated other comprehensive income			39,372	58,204
Retained earnings			389,967	453,201
Total equity attributable to the shareholders of Tarena International, Inc.			1,269,509	1,413,248
Total liabilities and equity			¥ 2,018,427	¥ 1,974,010

RESTATEMENT AND RECLASSIFICAT_4

RESTATEMENT AND RECLASSIFICATIONS - Consolidated statements of operations and comprehensive loss (Details) - CNY (¥) ¥ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues				¥ 1,520,035
Cost of revenues	[1]	¥ (918,549)	¥ (592,946)	(443,467)
Selling and marketing expenses	[1]	(1,047,632)	(707,157)	(524,077)
General and administrative expenses	[1]	(546,568)	(354,832)	(264,445)
Research and development expenses	[1]	(167,254)	(100,032)	(65,594)
Operating income (loss)		(594,632)	(1,272)	222,452
Interest income		26,200	16,097	25,065
Other income (loss)		(33,583)	16,702	15,960
Loss on foreign currency forward contract				(12,898)
Foreign currency exchange gains (loss)		4,951	(6,284)	3,760
Income (loss) before income taxes		(597,064)	25,243	254,339
Income tax expense		4,865	(25,390)	(28,219)
Net income (loss)		(592,199)	(147)	226,120
Comprehensive income (loss)		(581,099)	(18,979)	254,092
Foreign currency translation adjustment, taxes
Unrealized holding gains on available for sale securities		0	2,818	42
Reclassification adjustment for gains on available for sale securities realized in net income taxes		¥ 0	2,818	42
As previously reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			1,973,806	1,579,604
Cost of revenues			(599,199)	(449,104)
Selling and marketing expenses			(713,120)	(527,553)
General and administrative expenses			(392,296)	(307,519)
Research and development expenses			(100,032)	(65,594)
Operating income (loss)			169,159	229,834
Interest income			21,000	23,974
Other income (loss)			26,702	15,960
Loss on foreign currency forward contract				(12,898)
Foreign currency exchange gains (loss)			(6,284)	3,760
Income (loss) before income taxes			210,577	260,630
Income tax expense			(25,770)	(18,776)
Net income (loss)			184,807	241,854
Restatement adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			(220,111)	(59,569)
Cost of revenues			6,253	5,637
Selling and marketing expenses			5,963	3,476
General and administrative expenses			37,464	43,074
Operating income (loss)			(170,431)	(7,382)
Interest income			(4,903)	1,091
Other income (loss)			(10,000)
Income (loss) before income taxes			(185,334)	(6,291)
Income tax expense			380	(9,443)
Net income (loss)			(184,954)	(15,734)
As Restated
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			1,753,695	1,520,035
Cost of revenues			(592,946)	(443,467)
Selling and marketing expenses			(707,157)	(524,077)
General and administrative expenses			(354,832)	(264,445)
Research and development expenses			(100,032)	(65,594)
Operating income (loss)			(1,272)	222,452
Interest income			16,097	25,065
Other income (loss)			16,702	15,960
Loss on foreign currency forward contract				(12,898)
Foreign currency exchange gains (loss)			(6,284)	3,760
Income (loss) before income taxes			25,243	254,339
Income tax expense			(25,390)	(28,219)
Net income (loss)			¥ (147)	¥ 226,120

[1]	(a) Includes share-based compensation expense as follows (note 16):

RESTATEMENT AND RECLASSIFICAT_5

RESTATEMENT AND RECLASSIFICATIONS - Consolidated statements of cash flows (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating activities:
Net income (loss)	¥ (592,199)	¥ (147)	¥ 226,120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	158,757	100,763	73,636
Loss on disposal of property and equipment	1,238	917	297
Deferred income tax benefit	(46,595)	(1,171)	(1,547)
Share based compensation expense	124,253	77,415	67,824
Investment (income) loss	1,548	47	(71)
Foreign currency exchange (gain) loss, net	(4,440)	6,097	(33,405)
Impairment of long term investments	35,524	10,000
Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi
Accounts receivable	6,000	(30,466)	3,994
Amounts due from a related party	(2,996)	(1,964)	(3,753)
Prepaid expenses and other current assets	(3,454)	(33,126)	(65,491)
Accrued interest income on time deposits	9,814	1,809	5,264
Other non-current assets	(15,986)	6,581	(5,707)
Accounts payable	(390)	(196)	(248)
Amounts due to related parties	656	(310)	(800)
Income taxes payable	2,978	17,049	27,043
Deferred revenue	445,854	23,477	123,373
Accrued expenses and other current liabilities	44,128	127,534	82,077
Other non-current liabilities	(638)	(2,604)	(2,559)
Net cash provided by operating activities	163,081	301,705	496,047
Investing activities:
Purchase of property and equipment and intangible assets	(276,253)	(176,819)	(383,675)
Proceeds from disposal of property and equipment	8,905	423	446
Purchase of short-term investments	0	(950,000)	(420,000)
Proceeds from maturity of short-term investments		950,000	420,000
Purchase of long-term investments	(14,580)	(50,500)	(12,755)
Payment of long-term investment deposit		(4,380)
Purchase of time deposits	(284,166)	(515,739)	(638,170)
Proceeds from maturity of time deposits	563,354	534,958	925,386
Payment for acquisition of Hanru Hangzhou			(4,360)
Cash acquired from acquisition of Hanru Hangzhou			148
Issuance of loan to a related party			(6,500)
Issuance of loans to employees	(69,784)	(30,626)	(12,143)
Proceeds from repayment of loans from employees	26,823	6,139	3,157
Net cash used in investing activities	(91,977)	(236,544)	(128,466)
Financing activities:
Issuance of Class A ordinary shares in connection with exercise of share options	2,952	22,254	20,388
Payment of dividend	(42,955)	(63,087)	(54,026)
Repurchase of treasury shares	(196,957)	(143,389)	(44,406)
Net cash used in financing activities	(222,682)	(184,222)	(78,044)
Changes in cash and cash equivalents	(151,578)	(119,061)	289,537
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash	10,571	(4,920)	7,197
Net change in cash, cash equivalents and restricted cash	(141,007)	(123,981)	296,734
Cash, cash equivalents and restricted cash at beginning of year	686,691	810,672	513,938
Cash, cash equivalents and restricted cash at end of year		686,691	810,672
As previously reported
Operating activities:
Net income (loss)		184,807	241,854
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		100,724	72,757
Bad debt expense		31,499	33,605
Loss on disposal of property and equipment		917	297
Deferred income tax benefit		(18,473)	(18,895)
Share based compensation expense		77,415	67,824
Investment (income) loss		(19,267)	29
Foreign currency exchange (gain) loss, net		6,471	(3,760)
Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi
Accounts receivable		(164,231)	22,928
Prepaid expenses and other current assets		(18,712)	(60,362)
Accrued interest income on time deposits		1,809	5,264
Other non-current assets		(12,432)	(7,071)
Accounts payable		(196)	(248)
Amounts due to related parties		(310)	(800)
Income taxes payable		34,731	34,947
Deferred revenue		36,102	101,439
Accrued expenses and other current liabilities		50,407	36,781
Other non-current liabilities		(2,604)	(2,559)
Net cash provided by operating activities		288,657	524,030
Investing activities:
Purchase of property and equipment and intangible assets		(177,251)	(381,982)
Proceeds from disposal of property and equipment		462	358
Purchase of short-term investments		(1,970,000)	(1,937,000)
Proceeds from maturity of short-term investments		1,989,314	1,937,000
Purchase of long-term investments		(50,500)	(12,755)
Payment of long-term investment deposit		(4,380)
Purchase of time deposits		(509,739)	(421,170)
Proceeds from maturity of time deposits		528,999	678,741
Payment for acquisition of Hanru Hangzhou			(4,360)
Cash acquired from acquisition of Hanru Hangzhou			148
Issuance of loan to a related party			(6,500)
Issuance of loans to employees		(35,379)	(12,025)
Proceeds from repayment of loans from employees		5,352	3,096
Net cash used in investing activities		(223,122)	(156,449)
Financing activities:
Issuance of Class A ordinary shares in connection with exercise of share options		22,254	20,388
Payment of dividend		(63,087)	(54,026)
Repurchase of treasury shares		(143,389)	(44,406)
Net cash used in financing activities		(184,222)	(78,044)
Changes in cash and cash equivalents		(118,687)	289,537
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash		(5,294)	7,197
Net change in cash, cash equivalents and restricted cash		(123,981)	296,734
Cash, cash equivalents and restricted cash at beginning of year	¥ 686,691	810,672	513,938
Cash, cash equivalents and restricted cash at end of year		686,691	810,672
Restatement adjustments
Operating activities:
Net income (loss)		(184,954)	(15,734)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		39	879
Bad debt expense		(31,499)	(33,605)
Deferred income tax benefit		17,302	17,348
Investment (income) loss		19,314	(100)
Foreign currency exchange (gain) loss, net		(374)	(29,645)
Impairment of long term investments		10,000
Changes in operating assets and liabilities, net of effects from acquisition of Hanru Hangzhou and Hao Xiao Zi
Accounts receivable		133,765	(18,934)
Amounts due from a related party		(1,964)	(3,753)
Prepaid expenses and other current assets		(14,414)	(5,129)
Other non-current assets		19,013	1,364
Income taxes payable		(17,682)	(7,904)
Deferred revenue		(12,625)	21,934
Accrued expenses and other current liabilities		77,127	45,296
Net cash provided by operating activities		13,048	(27,983)
Investing activities:
Purchase of property and equipment and intangible assets		432	(1,693)
Proceeds from disposal of property and equipment		(39)	88
Purchase of short-term investments		1,020,000	1,517,000
Proceeds from maturity of short-term investments		(1,039,314)	(1,517,000)
Purchase of time deposits		(6,000)	(217,000)
Proceeds from maturity of time deposits		5,959	246,645
Issuance of loans to employees		4,753	(118)
Proceeds from repayment of loans from employees		787	61
Net cash used in investing activities		(13,422)	¥ 27,983
Financing activities:
Changes in cash and cash equivalents		(374)
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash		¥ 374

RESTATEMENT AND RECLASSIFICAT_6

RESTATEMENT AND RECLASSIFICATIONS - Additional Information (Details) - CNY (¥) ¥ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues				¥ 1,520,035
General and administrative expenses	[1]	¥ 546,568	¥ 354,832	264,445
Accounts Receivable, Net		52,058	58,047
Deferred revenue.		830,019
Other payable		365,428	313,429
Property and equipment, net		626,068	502,339
Cost of revenues	[1]	918,549	592,946	443,467
Income tax (expense) benefit		4,865	(25,390)	(28,219)
deferred income tax assets		916	684
Retained earnings		(243,162)	389,967
Selling and marketing expenses	[1]	¥ 1,047,632	707,157	524,077
Restatement adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			(220,111)	(59,569)
General and administrative expenses			(37,464)	(43,074)
Other payable			128,783	51,655
Property and equipment, net			(17,352)	(10,336)
Cost of revenues			(6,253)	(5,637)
Income tax (expense) benefit			380	(9,443)
deferred income tax assets			(66,979)	(49,575)
Retained earnings			(369,926)	(184,972)
Selling and marketing expenses			(5,963)	(3,476)
Restatement adjustments \| Errors due to Inaccurate Revenue and Relevant Accounts [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			(193,303)	(54,086)
General and administrative expenses			(31,499)	(33,605)
Accounts Receivable, Net			(270,520)	(133,027)
Deferred revenue.			97,553	64,385
Restatement adjustments \| Errors due to restatement adjustments to expense inaccuracies
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts Receivable, Net			93,372	61,088
Other payable			58,697	48,539
Other Receivables			1,563	5,015
Property and equipment, net			(882)	(450)
Interest expense			4,958	2,539
Operating Expenses			(23,199)	(17,195)
Restatement adjustments \| Error due to restatement adjustment to accrue guarantee liabilities for the guarantee provided for students' loan
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net revenues			(37,529)
Deferred revenue.			(46,165)
Accrued Liabilities and Other Liabilities			83,693
Restatement adjustments \| Error due to incomplete disclosed related party transactions
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Due from Related Parties			13,211	11,478
Due to Related Parties			216	447
Restatement adjustments \| Error Due to Adjustments on tax payable due to the restatement
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax (expense) benefit			380	(9,443)
Taxes Payable			(58,638)	40,853
deferred income tax assets			66,979	49,574
Restatement adjustments \| Errors Due to Cumulative Effect of Change in Retained Earnings [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Retained earnings			¥ (369,926)	¥ (184,972)

[1]	(a) Includes share-based compensation expense as follows (note 16):

RESTATEMENT AND RECLASSIFICAT_7

RESTATEMENT AND RECLASSIFICATIONS - Earnings (loss) per Share (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income (loss) attributable to Class A and Class B ordinary shareholders	¥ (590,174)	¥ (147)	¥ 226,120
Net income (loss) for basic and diluted earnings per share	¥ (590,174)	¥ (147)	¥ 226,120
Denominator:
Weighted average number of Class A and Class B ordinary shares outstanding	54,929,910	56,849,332	55,540,670
Dilutive effect of outstanding share options			3,464,591
Denominator for diluted earnings (loss) per share	54,929,910	56,849,332	59,005,261
Basic earnings (loss) per Class A and Class B ordinary share	¥ (10.744)	¥ (0.003)	¥ 4.071
Diluted earnings (loss) per Class A and Class B ordinary share	¥ (10.744)	¥ (0.003)	¥ 3.832
As previously reported
Numerator:
Net income (loss) attributable to Class A and Class B ordinary shareholders		¥ 184,807	¥ 241,854
Net income (loss) for basic and diluted earnings per share		¥ 184,807	¥ 241,854
Denominator:
Weighted average number of Class A and Class B ordinary shares outstanding		56,849,332	55,540,670
Dilutive effect of outstanding share options		2,749,379	3,464,591
Denominator for diluted earnings (loss) per share		59,598,711	59,005,261
Basic earnings (loss) per Class A and Class B ordinary share		¥ 3.25	¥ 4.36
Diluted earnings (loss) per Class A and Class B ordinary share		¥ 3.10	¥ 4.10
Restatement adjustments
Numerator:
Net income (loss) attributable to Class A and Class B ordinary shareholders		¥ (184,954)	¥ (15,734)
Net income (loss) for basic and diluted earnings per share		¥ (184,954)	¥ (15,734)
Denominator:
Weighted average number of Class A and Class B ordinary shares outstanding			0
Dilutive effect of outstanding share options			0
Denominator for diluted earnings (loss) per share			0
Basic earnings (loss) per Class A and Class B ordinary share		¥ (3.25)	¥ (0.28)
Diluted earnings (loss) per Class A and Class B ordinary share		¥ (3.10)	¥ (0.27)

ACCOUNTS RECEIVABLE (Schedule o

ACCOUNTS RECEIVABLE (Schedule of Accounts Receivable) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts receivable:
Gross	¥ 69,301	¥ 67,235
Unearned interest	(17,243)	(9,188)
Total accounts receivable	52,058	58,047
Total accounts receivable, net	¥ 52,058	¥ 58,047

ACCOUNTS RECEIVABLE (Classifica

ACCOUNTS RECEIVABLE (Classification of Accounts Receivable) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ACCOUNTS RECEIVABLE
Accounts receivable, net - current portion	¥ 39,901	¥ 51,643
Accounts receivable, net - non-current portion	12,157	6,404
Total accounts receivable, net	¥ 52,058	¥ 58,047

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid rental expenses	¥ 50,854	¥ 41,984
Interest receivable from time deposits	2,754	12,495
Prepaid security deposits	24,337	17,269
Prepaid advertising expenses	17,967	26,393
Prepaid value-added tax	18,777	17,644
Loans made to employees	37,586	12,698
Professional fees	10,020	11,528
Others	9,171	15,696
Total prepaid expenses and other current assets	¥ 171,466	¥ 155,707

PROPERTY AND EQUIPMENT, NET (Sc

PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment	¥ 1,002,303	¥ 760,343
Less: accumulated depreciation	(376,235)	(258,004)
Property and equipment, net	626,068	502,339
Office Building [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	287,208	285,184
Furniture
Property, Plant and Equipment [Line Items]
Property and equipment	49,374	30,061
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment	481,034	350,432
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment	¥ 184,687	¥ 94,666

PROPERTY AND EQUIPMENT, NET (_2

PROPERTY AND EQUIPMENT, NET (Schedule of Depreciation Expense) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense	¥ 156,907	¥ 99,897	¥ 72,858
Cost of revenues [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	127,850	85,059	62,000
Selling and marketing expenses [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	11,211	5,313	3,226
General and administrative expenses [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	16,511	8,064	6,455
Research and development expenses [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	¥ 1,335	¥ 1,461	¥ 1,177

LONG-TERM INVESTMENTS, NET (Det

LONG-TERM INVESTMENTS, NET (Details) - CNY (¥)		12 Months Ended
LONG-TERM INVESTMENTS, NET (Details) - CNY (¥)		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Equity investments without readily determinable fair values
Lessimpairment of equity investments without readily determinable fair values		¥ (35,000,000)	¥ 0
Total equity investments without readily determinable fair values, net		44,380,000	76,500,000
Equity method investments
Equity method investment		15,271,000	670,000
Lessimpairment of long-term investments		(524,000)	0
Total equity method investments, net		15,271,000	670,000
Available-for-sale investment		15,000,000	15,000,000
Less: Changes in Fair Value			(11,496,000)	¥ (5,235,000)
impairment of available-for-sale investments		(15,000,000)	(15,000,000)
Total available-for-sale investment, net			0
Total long-term investments, net		59,651,000	77,170,000
Hockey Global Resources Investment Limited [Member]
Equity method investments
Equity method investment	[1]		0
Total equity method investments, net	[1]		0
A company providing mechanic training
Equity investments without readily determinable fair values
Equity investments without readily determinable fair values	[2]	12,000,000	12,000,000
Lessimpairment of equity investments without readily determinable fair values		0	0
A company providing intelligent robot products
Equity investments without readily determinable fair values
Equity investments without readily determinable fair values	[3]	24,000,000	24,000,000
Lessimpairment of equity investments without readily determinable fair values		(24,000,000)	0
A company providing information sharing IT platform
Equity investments without readily determinable fair values
Equity investments without readily determinable fair values	[4]	22,500,000	22,500,000
Lessimpairment of equity investments without readily determinable fair values		0	0
Other equity investments without readily determinable fair values
Equity investments without readily determinable fair values
Equity investments without readily determinable fair values	[5]	20,880,000	18,000,000
Lessimpairment of equity investments without readily determinable fair values		(11,000,000)	0
Companies providing hockey program management
Equity method investments
Equity method investment		2,105,000	670,000
Lessimpairment of long-term investments		(524,000)	0
Total equity method investments, net		2,105,000	670,000
A company providing Internet product solutions
Equity method investments
Equity method investment		13,690,000	0
Lessimpairment of long-term investments		0
Total equity method investments, net		¥ 13,690,000	¥ 0

[1]	In October 2016, the Company paid RMB790 in cash to acquire 28.5% of
[2]	Prior to January 1, 2018, the Company accounted for certain investments under the cost method as the Company was not able to exercise significant influence on the investees. After January 1, 2018, all such investments were identified as the equity investments without readily determinable fair values.In October 2015, the Company paid RMB12,000 in cash to acquire 2.86% of the total equity interest in an education company, which provides training for senior mechanic in vehicle maintenance and repair.
[3]	In May 2017, the Company paid RMB24,000 in cash to acquire 6% of the total equity interest in a company, which provides intelligent robot product. Based on the fact that the business conditions of this investee deteriorated in fiscal year 2018, the Company recognized impairment loss of nil and RMB24,000 for the years ended December 31, 2017 and 2018, respectively.
[4]	In July 2017, the Company paid RMB22,500 in cash to acquire 15% of the total equity interest in a company, which provides an information sharing IT platform.
[5]	During the years ended December 31, 2017 and 2018, the Company acquired minority equity interest in several third-party companies.The Company recognized impairment loss of nil and RMB11,000 for the years ended December 31, 2017 and 2018, respectively.

LONG-TERM INVESTMENTS, NET - Ad

LONG-TERM INVESTMENTS, NET - Additional information (Details) - CNY (¥)	Jan. 31, 2018	Jul. 31, 2017	May 31, 2017	Oct. 31, 2016	Oct. 31, 2015	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule of Investments and Cost Method Investments [Line Items]
Equity Method Investment, Ownership Percentage				13.90%
Impairment of equity investments without readily determinable fair values						¥ 35,000,000	¥ 0
Equity investment percentage				13.90%
Impairment of long-term investments						524,000	0
Payment to acquire available for sale securities				¥ 10,000,000
Increase in fair value of the investment							11,496,000	¥ 5,235,000
Unrealized holding gains on available for sale securities, net of income taxes						0	¥ 2,818,000	¥ 42,000
Beijing Crouching Tiger Hidden Dragon Internet Technology Co Ltd [Member]
Schedule of Investments and Cost Method Investments [Line Items]
Equity Method Investment, Ownership Percentage							11.25%
Equity investment percentage							11.25%
A company providing mechanic training
Schedule of Investments and Cost Method Investments [Line Items]
Payment to acquire cost method investment					¥ 12,000,000
Equity investment , cost method percentage					2.86%
Impairment of equity investments without readily determinable fair values						0	¥ 0
A company providing intelligent robot products
Schedule of Investments and Cost Method Investments [Line Items]
Payment to acquire cost method investment			¥ 24,000,000
Equity investment , cost method percentage			6.00%
Impairment of equity investments without readily determinable fair values						24,000,000	0
A company providing information sharing IT platform
Schedule of Investments and Cost Method Investments [Line Items]
Payment to acquire cost method investment		¥ 22,500,000
Equity investment , cost method percentage		15.00%
Impairment of equity investments without readily determinable fair values						0	0
Other equity investments without readily determinable fair values
Schedule of Investments and Cost Method Investments [Line Items]
Impairment of equity investments without readily determinable fair values						¥ 11,000,000	0
Companies providing hockey program management
Schedule of Investments and Cost Method Investments [Line Items]
Equity Method Investment, Ownership Percentage				28.50%		20.00%
Payment to acquire investment				¥ 790,000		¥ 1,580,000
Equity investment percentage				28.50%		20.00%
Impairment of long-term investments						¥ 524,000	¥ 0
A company providing Internet product solutions
Schedule of Investments and Cost Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	20.00%
Payment to acquire investment	¥ 14,000,000
Equity investment percentage	20.00%
Impairment of long-term investments						¥ 0

OTHER NON-CURRENT ASSET (Detail

OTHER NON-CURRENT ASSET (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Other non-current assets:
Deferred income tax assets	¥ 916	¥ 684
Rent and property management deposits	48,434	32,973
Housing loans made to employees	29,893	11,339
Prepayment for equipment and leasehold improvement	13,089	11,717
Pledge loans to employees	11,346	9,026
Other loans to employees	7,197	8,816
Others	12,041	4,380
Total other non-current assets	¥ 122,000	¥ 78,251

OTHER NON-CURRENT ASSET- Additi

OTHER NON-CURRENT ASSET- Additional information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Other Assets, Noncurrent Disclosure [Line Items]
Deferred income tax assets, valuation allowance	¥ 169,543	¥ 72,271	¥ 37,521	¥ 28,583
Housing loans made to employees
Other Assets, Noncurrent Disclosure [Line Items]
Term of loans receivable	5 years
Annual interest rate (as a percent)	3.325%
Loans to employees pledged by share options
Other Assets, Noncurrent Disclosure [Line Items]
Term of loans receivable	5 years
Annual interest rate (as a percent)	5.00%

SHORT-TERM BANK LOANS (Details)

SHORT-TERM BANK LOANS (Details) ¥ in Thousands, $ in Millions	Dec. 19, 2018USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018CNY (¥)	Dec. 31, 2018USD ($)	Dec. 31, 2018CNY (¥)
SHORT-TERM BANK LOANS [Line Items]
Bank loan borrowed \| ¥			¥ 13,228
Time deposit \| ¥					¥ 14,700
Short-term bank loans
SHORT-TERM BANK LOANS [Line Items]
Borrowing capacity		$ 12
Debt term		12 months
Bank loan borrowed	$ 2
Interest rate for the loan	4.00%
Bank loan				$ 2
Short-term bank loans \| LIBOR
SHORT-TERM BANK LOANS [Line Items]
Margin on interest rate	1.20%

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Guarantee liability	¥ 27,505	¥ 83,693
Accrued payroll and employee benefits	128,224	88,713
Payable to a third-party individual	64,515	58,697
Refund liability	35,772
VAT and other tax payables	34,731	18,015
Professional service fee	22,403	9,125
Rental fee	23,808	13,215
Payable for repurchasing of treasury shares	5,058	17,368
Others	23,412	24,603
Total	¥ 365,428	¥ 313,429

NET REVENUES (Details)

NET REVENUES (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
NET REVENUES (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation of Revenue [Line Items]
Net revenues			¥ 1,520,035
Business taxes and surcharges	¥ (13,878)	¥ (11,842)	(19,266)
Total net revenues			1,520,035
Services transferred at a point in time
Disaggregation of Revenue [Line Items]
Net revenues	100,472	83,854	45,831
Total net revenues	100,472	83,854	45,831
Services transferred over time
Disaggregation of Revenue [Line Items]
Net revenues	1,895,208	1,649,961	1,474,204
Total net revenues	1,895,208	1,649,961	1,474,204
Tuition fee
Disaggregation of Revenue [Line Items]
Net revenues	1,896,642	1,658,981	1,491,594
Total net revenues	1,896,642	1,658,981	1,491,594
Certification service fee
Disaggregation of Revenue [Line Items]
Net revenues	82,376	50,321	35,976
Total net revenues	82,376	50,321	35,976
Loan referral service fee
Disaggregation of Revenue [Line Items]
Net revenues	18,096	33,533	9,855
Total net revenues	18,096	33,533	9,855
Others
Disaggregation of Revenue [Line Items]
Net revenues	12,444	2,822	1,876
Total net revenues	12,444	2,822	¥ 1,876
Guarantee service
Disaggregation of Revenue [Line Items]
Net revenues	89,691,000	19,880,000
Total net revenues	¥ 89,691,000	¥ 19,880,000

LOSS ON FOREIGN CURRENCY FORW_2

LOSS ON FOREIGN CURRENCY FORWARD CONTRACT (Narrative) (Details)	1 Months Ended	12 Months Ended
	May 19, 2016CNY (¥)	Dec. 31, 2018CNY (¥)	Dec. 31, 2017CNY (¥)	Dec. 31, 2016CNY (¥)
Gain (Loss) on Derivative Instruments, Net, Pretax				¥ (12,898,000)
Foreign Exchange Forward [Member]
Derivative, Inception Date	Jan. 29, 2016
Derivative, Forward Exchange Rate	6.7070
Derivative, Notional Amount	¥ 564,095
Derivative, Maturity Date	May 19, 2016
Gain (Loss) on Derivative Instruments, Net, Pretax				¥ 12,898

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income loss before Income Taxes) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Taxes [Line Items]
Total income (loss) before income taxes	¥ (597,064)	¥ 25,243	¥ 254,339
PRC
Income Taxes [Line Items]
Total income (loss) before income taxes	(467,953)	104,307	334,278
Hong Kong
Income Taxes [Line Items]
Total income (loss) before income taxes	(2,031)	(2,415)	(573)
Cayman Islands
Income Taxes [Line Items]
Total income (loss) before income taxes	(126,887)	¥ (76,649)	¥ (79,366)
Taiwan
Income Taxes [Line Items]
Total income (loss) before income taxes	(166)
Canada
Income Taxes [Line Items]
Total income (loss) before income taxes	¥ (27)

INCOME TAXES (Schedule of Inc_2

INCOME TAXES (Schedule of Income Tax Expense benefit) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INCOME TAXES
Current income tax expense	¥ 16,058	¥ 26,561	¥ 29,766
Withholding tax expense	25,672
Deferred income tax benefit	(46,595)	(1,171)	(1,547)
Total	¥ (4,865)	¥ 25,390	¥ 28,219

INCOME TAXES (Schedule of Inc_3

INCOME TAXES (Schedule of Income Tax Rate Reconciliation) (Details)	Jan. 01, 2008	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Effective income tax rate reconciliation [Line Items]
PRC statutory income tax rate	25.00%	25.00%	25.00%	25.00%
Impact of different tax rates in other jurisdictions		(5.30%)	76.70%	7.80%
Research and development bonus deduction		1.40%	(34.70%)	(3.20%)
Non-deductible selling, general and administrative expenses
Non-deductible expenses		(1.40%)	62.70%	1.70%
Tax holiday		(0.00%)	(0.00%)
Withholding tax		(4.3)
Actual income tax expense		0.80%	100.60%	11.10%
ANTE [Member]
Non-deductible selling, general and administrative expenses
Preferential tax rates		(0.30%)	(199.90%)	(23.70%)
HK [Member]
Non-deductible selling, general and administrative expenses
Change in valuation allowance		(14.30%)	170.80%	3.50%

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Income Tax Assets And Liabilities) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Non-current deferred income tax assets:
Impairment of long-term investments	¥ 8,850	¥ 2,500
Tax loss carry forwards	157,264	33,201
Advertising expense	53,019	36,543
Others	4,162	5,648
Total non-current deferred income tax assets	223,295	77,892
Valuation allowance	(169,543)	(72,271)	¥ (37,521)	¥ (28,583)
Non-current deferred income tax assets, net	53,752	¥ 5,621
Non-current deferred income tax liabilities:
Valuation appreciation of intangible assets	2,283
Non-current deferred income tax liabilities	¥ 2,283

INCOME TAXES (Summary of Valuat

INCOME TAXES (Summary of Valuation Allowance) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
INCOME TAXES
Balance at the beginning of the year	¥ 72,271	¥ 37,521	¥ 28,583
Additions of valuation allowance	97,776	38,976	13,118
Reduction of valuation allowance	(504)	(4,226)	(4,180)
Balance at the end of the year	¥ 169,543	¥ 72,271	¥ 37,521

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - CNY (¥) ¥ in Thousands	Jan. 01, 2008	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Tax losses carry forwards		¥ 656,702
PRC statutory income tax rate	25.00%	25.00%	25.00%	25.00%
Income Taxes, Preferential Income Tax Rate Advanced and New Technology Enterprises		15.00%			15.00%
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent		12.50%	0.00%	0.00%
Income Taxes, Calculation Basis under Deemed Profit Method		25
Withholding tax expense		¥ 25,672
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent		0.00%	0.00%
State Administration of Taxation, China [Member]
Withholding Tax Percentage On Repatriated Earnings		10.00%
Maximum
Income Taxes, Preferential Income Tax Rate Small Profit Enterprises		20.00%	20.00%	20.00%
HK [Member]
Tax losses carry forwards		¥ 10,906
Tarena Hangzhou [Member]
PRC statutory income tax rate		12.50%	12.50%	12.50%
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent		50.00%
Hanru Hangzhou [Member]
Effective Income Tax Rate Reconciliation, Tax Exempt Income, Percent		50.00%
2019 [Member]
Tax losses carry forwards		¥ 11,486
2020 [Member]
Tax losses carry forwards		9,175
2021 [Member]
Tax losses carry forwards		14,777
2022 [Member]
Tax losses carry forwards		92,289
2023 [Member]
Tax losses carry forwards		¥ 518,069

RELATED PARTY TRANSACTIONS (Sch

RELATED PARTY TRANSACTIONS (Schedule of Related Party Transactions) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Amount due from related parties
Due from Related Parties, Current, Total	¥ 9,938	¥ 6,942
Amounts due from related parties - non-current	6,500	6,500
Amount due to related parties
Due to Related Parties, Current, Total	872	216
Chuanbang
Amount due from related parties
Due from Related Parties, Current, Total	9,938	6,942
Ms. Han Lijuan
Amount due from related parties
Amounts due from related parties - non-current	¥ 6,500	¥ 6,500

RELATED PARTY TRANSACTIONS (S_2

RELATED PARTY TRANSACTIONS (Schedule of Related Parties Transactions) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Chuanbang \| Cash collection service
Related Party Transaction [Line Items]
Expenses from transactions with related party	¥ 3,489	¥ 3,230	¥ 6,445
Bolton School \| Franchise and training service
Related Party Transaction [Line Items]
Revenue from related party	529	1,114	902
Bolton School \| Training service
Related Party Transaction [Line Items]
Expenses from transactions with related party	798	1,064	102
Ningxia Company \| Franchise, training and consulting service
Related Party Transaction [Line Items]
Revenue from related party	493	520
Ms. Han Lijuan
Related Party Transaction [Line Items]
Interest income derived from the loan to related party	¥ 325	¥ 325	81
Loan to related party			¥ 6,500

RELATED PARTY TRANSACTIONS (S_3

RELATED PARTY TRANSACTIONS (Schedule of Significant Related Party Transactions) (Details)	12 Months Ended
	Dec. 31, 2018USD ($)
Chuanbang \| Service fee payable \| Minimum
Related Party Transaction [Line Items]
Cash collection service fees percentage	2.00%
Chuanbang \| Service fee payable \| Maximum
Related Party Transaction [Line Items]
Cash collection service fees percentage	20.00%
Connion Capital Limited \| Minimum level of activity in bank account
Related Party Transaction [Line Items]
Number of times funds will receive	5
Minimum amount of fund to be received at each time	$ 1,000,000
Due from related parties	$ 0

ORDINARY SHARES AND STATUTORY_2

ORDINARY SHARES AND STATUTORY RESERVE (Ordinary Shares) (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Millions	1 Months Ended			12 Months Ended
	Jun. 30, 2018CNY (¥)	Jun. 30, 2017CNY (¥)	May 31, 2016CNY (¥)	Dec. 31, 2018CNY (¥)shares	Dec. 31, 2017CNY (¥)shares	Dec. 31, 2016CNY (¥)shares	Dec. 31, 2015CNY (¥)shares	Jun. 30, 2018USD ($)	Mar. 06, 2018$ / shares	Mar. 06, 2018¥ / shares	Jun. 30, 2017USD ($)	Feb. 28, 2017$ / shares	Feb. 28, 2017¥ / shares	Mar. 07, 2016$ / shares	Mar. 07, 2016¥ / shares	Aug. 20, 2015USD ($)
Class of Stock [Line Items]
Total consideration of Shares repurchased \| ¥				¥ 202,066	¥ 161,342	¥ 44,406
Dividends Payable, Amount Per Share \| (per share)									$ 0.12	¥ 0.76		$ 0.16	¥ 1.10	$ 0.15	¥ 0.98
Dividends, Common Stock, Cash \| ¥	¥ 42,955	¥ 63,087	¥ 54,026
Treasury Shares [Member]
Class of Stock [Line Items]
Share repurchase plan, authorized amount \| $											$ 30					$ 20
Shares repurchased \| shares				3,768,495	1,755,666	648,867	926,113
Total consideration of Shares repurchased \| ¥				¥ 202,066	¥ 161,342	¥ 44,406	¥ 49,355
Treasury Shares [Member] \| Minimum
Class of Stock [Line Items]
Share repurchase plan, authorized amount \| $								$ 30
Treasury Shares [Member] \| Maximum
Class of Stock [Line Items]
Share repurchase plan, authorized amount \| $								$ 70

ORDINARY SHARES AND STATUTORY_3

ORDINARY SHARES AND STATUTORY RESERVE (Statutory Reserve) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
ORDINARY SHARES AND STATUTORY RESERVE
Appropriations	¥ 12,943	¥ 29,734	¥ 37,996
Statutory reserve	¥ 153,208	140,265	110,531
Statutory Reserves, Percentage of Appropriation From Net Profit	10.00%
Statutory Reserves, Balance As Percentage to Capital	50.00%
Statutory Reserves for Private Schools Requiring Reasonable Returns, Percentage of Appropriation From Net Profit	25.00%
Statutory Reserves for Private Schools Not Requiring Reasonable Returns, Percentage of Expected Annual Increase in Net Assets	25.00%
Restricted net assets	¥ 1,375,685	¥ 1,235,538	¥ 1,106,135

SHARE BASED COMPENSATION - Summ

SHARE BASED COMPENSATION - Summary of share options activity (Details) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2015	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Share Options
Outstanding, beginning balance		3,014,352	4,328,375	5,574,441
Granted		1,085,094	682,435	1,138,119
Exercised		(615,746)	(1,898,391)	(2,106,043)
Forfeited		(86,903)	(98,067)	(278,142)
Outstanding, ending balance	5,574,441	3,396,797	3,014,352	4,328,375
Vested and expected to vest		3,262,468
Exercisable		2,824,485
Weighted Average Exercise Price
Outstanding, beginning balance		$ 1.70	$ 1.88	$ 1.77
Granted		0.84	0.88	1.90
Exercised		0.72	1.74	1.46
Forfeited		1.49	3.30	2.89
Outstanding, ending balance	$ 1.77	1.61	$ 1.70	$ 1.88
Vested and expected to vest		1.56
Exercisable		$ 1.50
Weighted Average Remaining Contractual Years
Outstanding	5 years 6 months 18 days	6 years 5 months 19 days	5 years 9 months 29 days	5 years 10 months 2 days
Vested and expected to vest		6 years 5 months 5 days
Exercisable		6 years 2 months 16 days
Outstanding, Aggregate Intrinsic Value	$ 45,569	$ 15,919	$ 40,031	$ 56,743
Vested and expected to vest, Aggregate Intrinsic Value		15,469
Exercisable, Aggregate Intrinsic Value		$ 13,551

SHARE BASED COMPENSATION - Su_2

SHARE BASED COMPENSATION - Summary of fair value assumptions (Details)	12 Months Ended
	Dec. 31, 2018$ / shares	Dec. 31, 2017$ / shares	Dec. 31, 2016$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividends yield	0.00%	0.00%	0.00%
Exercise multiple		2	2
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	53.52%		63.50%
Expected dividends yield		63.70%
Exercise multiple	2.2
Risk-free interest rate per annum	2.54%	2.88%	2.15%
The fair value of underlying ordinary shares (per share)	$ 6.97	$ 14.27	$ 9.99
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			68.80%
Expected dividends yield	55.70%	67.80%
Exercise multiple	2.8
Risk-free interest rate per annum	3.23%	3.22%	3.18%
The fair value of underlying ordinary shares (per share)	$ 14.99	$ 19.03	$ 16.54

SHARE BASED COMPENSATION - Sche

SHARE BASED COMPENSATION - Schedule fair values of the options granted (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
SHARE BASED COMPENSATION
Weighted average grant date fair value of option per share	$ 12.35	$ 15.99	$ 10.15
Aggregate grant date fair value of options	$ 13,402	$ 10,915	$ 11,551

SHARE BASED COMPENSATION - Su_3

SHARE BASED COMPENSATION - Summary of the non-vested shares activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Number of Non-vested Shares
Outstanding, beginning balance	106,767	10,000	25,000
Granted	211,977	129,835	20,000
Vested	(16,557)	(17,367)	(35,000)
Forfeited	(22,541)	(15,701)
Outstanding, ending balance	279,646	106,767	10,000
Weighted Average Grant Date Fair Value
Outstanding, beginning balance	$ 14.75	$ 10.82	$ 9.63
Granted	11.20	14.93	10.82
Vested	14.22	14.08	9.97
Forfeited	12.39	14.47
Outstanding, ending balance	$ 12.28	$ 14.75	$ 10.82

SHARE BASED COMPENSATION (Narra

SHARE BASED COMPENSATION (Narrative) (Details) ¥ in Thousands

Apr. 03, 2018shares

Apr. 01, 2018shares

Apr. 03, 2017shares

Apr. 03, 2016shares

Feb. 28, 2017shares

Dec. 31, 2018CNY (¥)shares

Dec. 31, 2017CNY (¥)shares

Dec. 31, 2016CNY (¥)shares

Dec. 31, 2018$ / shares

Dec. 31, 2018CNY (¥)

Dec. 31, 2017$ / shares

Dec. 31, 2016$ / shares

Dec. 31, 2014shares

Nov. 28, 2012shares

Sep. 22, 2008shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Options granted

1,085,094

682,435

1,138,119

Total intrinsic value of options exercised | ¥

¥ 22,710

¥ 169,944

¥ 189,154

Non-vested shares granted

211,977

129,835

20,000

Unrecognized stock option compensation expense | ¥

¥ 46,565

Unrecognized stock option compensation expense, period for recognition

1 year 7 months 28 days

Unrecognized non-vested shares compensation expense | ¥

¥ 22,496

Unrecognized non-vested shares compensation expense, period for recognition

5 years 1 month 13 days

Fair value of vested restricted shares | ¥

¥ 1,557

¥ 1,652

¥ 2,316

Minimum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Exercise prices | $ / shares

$ 0.06

$ 0.058

Vesting period

3 months 29 days

2 months 1 day

29 days

Share price | $ / shares

6.97

14.27

9.99

Maximum

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Exercise prices | $ / shares

4.36

Vesting period

1 year

4 years

Share price | $ / shares

$ 14.99

$ 19.03

$ 16.54

Share-based Compensation Award, Tranche One [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

8 years

Non-vested shares granted

28,475

Share-based Compensation Award, Tranche Two [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

9 years

Non-vested shares granted

87,325

Independent Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period

5 years

Vesting percentage

25.00%

Non-vested shares granted

193,796

13,335

20,000

700

January 1 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expiration period

10 years

April 3 [Member] | Independent Directors [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting percentage

25.00%

Non-vested shares granted

18,181

2008 Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Authorized

8,184,990

6,002,020

2014 Plan [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Authorized

1,833,696

EARNINGS (LOSS) PER SHARE (Sche

EARNINGS (LOSS) PER SHARE (Schedule of Basic and Diluted Earnings Loss Per Share) (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income (loss) attributable to Class A and Class B ordinary shareholders	¥ (590,174)	¥ (147)	¥ 226,120
Net income (loss) for basic and diluted earnings per share	¥ (590,174)	¥ (147)	¥ 226,120
Denominator:
Weighted average number of Class A and Class B ordinary shares outstanding	54,929,910	56,849,332	55,540,670
Dilutive effect of outstanding share options			3,464,591
Denominator for diluted earnings (loss) per share	54,929,910	56,849,332	59,005,261
Basic earnings (loss) per Class A and Class B ordinary share	¥ (10.744)	¥ (0.003)	¥ 4.071
Diluted earnings (loss) per Class A and Class B ordinary share	¥ (10.744)	¥ (0.003)	¥ 3.832

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
COMMITMENTS AND CONTINGENCIES
Gross rental expenses	¥ 262,440	¥ 178,802	¥ 133,407
Sublease rental income	1,533	¥ 630	¥ 460
Future minimum lease payments:
2019	289,324
2020	232,688
2021	168,329
2022	119,024
2023	66,575
2024 and thereafter	47,447
Total	¥ 923,387

BUSINESS COMBINATION (Details)

BUSINESS COMBINATION (Details) - CNY (¥) ¥ in Thousands	Mar. 01, 2018	Dec. 31, 2016	Dec. 31, 2018	Dec. 31, 2017
BUSINESS COMBINATION [Line Items]
Total consideration		¥ 4,360
Allocation of the consideration of the assets acquired and liabilities assumed
Goodwill		¥ 3,365	¥ 52,782	¥ 3,365
RTEC
BUSINESS COMBINATION [Line Items]
Equity Interest acquired	100.00%
Total consideration	¥ 58,200,000
Allocation of the consideration of the assets acquired and liabilities assumed
Cash and cash equivalents	3,874
Financial receivables	7,550
Prepaid and other current assets	6,138
Inventory, net	803
Property and equipment	12,851
Intangible assets	12,688
Goodwill	49,417
Other non-current assets	114
Total assets	93,435
Deferred revenue	(31,906)
Accounts payable and other current liabilities	(1,046)
Deferred tax liabilities	(2,283)
Total	¥ 58,200
Amortization period	10 years

GOODWILL (Details)

GOODWILL (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
GOODWILL (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill [Roll Forward]
Beginning balance	¥ 3,365	¥ 3,365
Acquisition	49,417
Ending balance	52,782	3,365
Goodwill impairment	¥ 0	¥ 0

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) ¥ in Thousands		12 Months Ended
SEGMENT INFORMATION (Details) ¥ in Thousands		Dec. 31, 2018CNY (¥)segment	Dec. 31, 2017CNY (¥)	Dec. 31, 2016CNY (¥)
SEGMENT INFORMATION [Line Items]
Number of operating segments \| segment		2
Revenues, cost of revenues, and gross profit by segment
Revenue				¥ 1,520,035
Cost	[1]	¥ (918,549)	¥ (592,946)	(443,467)
Gross profit		1,166,822	¥ 1,160,749	¥ 1,076,568
Adult Training
Revenues, cost of revenues, and gross profit by segment
Revenue		1,915,446
Cost		(690,252)
Gross profit		1,225,194
Kid Training
Revenues, cost of revenues, and gross profit by segment
Revenue		169,925
Cost		(228,297)
Gross profit		¥ (58,372)

[1]	(a) Includes share-based compensation expense as follows (note 16):

PARENT ONLY FINANCIAL INFORMA_3

PARENT ONLY FINANCIAL INFORMATION (Condensed Balance Sheets) (Details) ¥ / shares in Units, ¥ in Thousands		Dec. 31, 2018$ / shares	Dec. 31, 2018CNY (¥)¥ / sharesshares	Dec. 31, 2017$ / shares	Dec. 31, 2017CNY (¥)¥ / sharesshares	Dec. 31, 2016CNY (¥)	Dec. 31, 2015CNY (¥)
Current assets:
Time deposits			¥ 158,585		¥ 432,536
Prepaid expenses and other current assets			171,466		155,707
Total current assets			925,574		1,333,519
Total assets			1,878,047		2,018,427
Current liabilities:
Short-term bank loan			13,726
Accrued expenses and other current liabilities			365,428		313,429
Total current liabilities			1,300,421		744,589
Other non-current liabilities			5,983		4,329
Total liabilities			1,306,404		748,918
Commitments and contingencies
Shareholders' equity:
Treasury shares			(457,169)		(255,103)
Additional paid-in capital			1,222,072		1,094,872
Accumulated other comprehensive income			50,472		39,372
Retained earnings (accumulated deficit)			(243,162)		389,967
Total equity attributable to the shareholders of Tarena International, Inc.			572,618		1,269,509
Total liabilities and equity			1,878,047		2,018,427
Common Class A [Member]
Shareholders' equity:
Ordinary shares			¥ 331		¥ 327
Ordinary shares
Ordinary shares, par value \| ¥ / shares			¥ 0.001		¥ 0.001
Authorized \| shares			860,000,000		860,000,000
Issued \| shares			52,972,578		52,340,176
Outstanding \| shares			45,873,437		49,009,530
Treasury shares \| shares			7,099,141		3,330,646
Common Class B [Member]
Shareholders' equity:
Ordinary shares			¥ 74		¥ 74
Ordinary shares
Ordinary shares, par value \| ¥ / shares			¥ 0.001		¥ 0.001
Authorized \| shares			40,000,000		40,000,000
Issued \| shares			7,206,059		7,206,059
Outstanding \| shares			7,206,059		7,206,059
Parent Company [Member]
Current assets:
Cash and cash equivalents			¥ 25,507		¥ 17,658	¥ 43,770	¥ 6,275
Time deposits					65,342
Prepaid expenses and other current assets			696		970
Total current assets			26,203		83,970
Investments and loans to subsidiaries			567,003		1,210,622
Total assets			593,206		1,294,592
Current liabilities:
Short-term bank loan			13,726
Accrued expenses and other current liabilities	[1]		6,862		24,454
Total current liabilities			20,588		24,454
Other non-current liabilities					629
Total liabilities			20,588		25,083
Shareholders' equity:
Treasury shares			(457,169)		(255,103)
Additional paid-in capital			1,222,072		1,094,872
Accumulated other comprehensive income			50,472		39,372
Retained earnings (accumulated deficit)			(243,162)		389,967
Total equity attributable to the shareholders of Tarena International, Inc.			572,618		1,269,509
Total liabilities and equity			593,206		1,294,592
Parent Company [Member] \| Common Class A [Member]
Shareholders' equity:
Ordinary shares			¥ 331		¥ 327
Ordinary shares
Ordinary shares, par value \| $ / shares		$ 0.001		$ 0.001
Authorized \| shares			860,000,000		860,000,000
Issued \| shares			52,972,578		52,340,176
Outstanding \| shares			45,873,437		49,009,530
Treasury shares \| shares			7,099,141		(3,330,646)
Parent Company [Member] \| Common Class B [Member]
Shareholders' equity:
Ordinary shares			¥ 74		¥ 74
Ordinary shares
Ordinary shares, par value \| $ / shares		$ 0.001		$ 0.001
Authorized \| shares			40,000,000		40,000,000
Issued \| shares			7,206,059		7,206,059
Outstanding \| shares			7,206,059		7,206,059

[1]	Mainly related to repurchase of treasury shares.

PARENT ONLY FINANCIAL INFORMA_4

PARENT ONLY FINANCIAL INFORMATION (Condensed Statements of Comprehensive Income) (Details) - CNY (¥) ¥ in Thousands		12 Months Ended
		Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Condensed Income Statements, Captions [Line Items]
Selling and marketing expenses	[1]	¥ 1,047,632	¥ 707,157	¥ 524,077
General and administrative expenses	[1]	(546,568)	(354,832)	(264,445)
Operating loss		(594,632)	(1,272)	222,452
Foreign currency exchange losses		4,951	(6,284)	3,760
Interest income		26,200	16,097	25,065
Loss on foreign currency forward contract				(12,898)
Other income		(33,583)	16,702	15,960
Income (loss) before income taxes		(597,064)	25,243	254,339
Income tax expense		4,865	(25,390)	(28,219)
Net income (loss)		(592,199)	(147)	226,120
Other comprehensive income (loss)
Foreign currency translation adjustment, net of nil income tax		11,100	(13,832)	22,972
Unrealized holding gains on available for sale securities, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018			11,496	5,235
Less: Reclassification adjustment for loss on available for sale securities realized in net income, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018				(235)
Comprehensive income (loss)		(581,099)	(18,979)	254,092
Foreign currency translation adjustment, taxes
Unrealized holding gains on available for sale securities, net of income taxes		0	2,818	42
Reclassification adjustment for gains on available for sale securities realized in net income taxes		0	2,818	42
Parent Company [Member]
Condensed Income Statements, Captions [Line Items]
Selling and marketing expenses		(403)
General and administrative expenses		(5,536)	(5,218)	(4,477)
Operating loss		(5,939)	(5,218)	(4,477)
Equity in earnings (loss) of subsidiaries		(589,564)	(913)	237,662
Foreign currency exchange losses		341	(421)	(4,753)
Interest income		413	2,327	8,027
Loss on foreign currency forward contract				(12,898)
Other income		2,550	4,078	2,559
Income (loss) before income taxes		(592,199)	(147)	226,120
Net income (loss)		(592,199)	(147)	226,120
Other comprehensive income (loss)
Foreign currency translation adjustment, net of nil income tax		11,100	(13,832)	22,972
Unrealized holding gains on available for sale securities, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018			11,496	5,235
Less: Reclassification adjustment for loss on available for sale securities realized in net income, net of RMB42, RMB2,818 and nil income taxes for the year 2016, 2017 and 2018			(16,496)	(235)
Comprehensive income (loss)		(581,099)	(18,979)	254,092
Foreign currency translation adjustment, taxes		0	0	0
Unrealized holding gains on available for sale securities, net of income taxes		0	2,818	42
Reclassification adjustment for gains on available for sale securities realized in net income taxes		¥ 0	¥ 2,818	¥ 42

[1]	(a) Includes share-based compensation expense as follows (note 16):

PARENT ONLY FINANCIAL INFORMA_5

PARENT ONLY FINANCIAL INFORMATION (Condensed Statements of Cash Flows) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Investing activities:
Purchase of time deposits	¥ (284,166)	¥ (515,739)	¥ (638,170)
Proceeds from maturity of time deposits	563,354	534,958	925,386
Foreign currency exchange losses	(4,440)	6,097	(33,405)
Financing activities:
Proceeds from bank borrowing	13,228
Issuance of Class A ordinary shares in connection with exercise of share options	2,952	22,254	20,388
Payment of dividends	(42,955)	(63,087)	(54,026)
Repurchase of treasury shares	(196,957)	(143,389)	(44,406)
Changes in cash and cash equivalents	(151,578)	(119,061)	289,537
Effect of foreign currency exchange rate changes on cash and cash equivalents	10,571	(4,920)	7,197
Non-cash investing and financing activities:
Payable for repurchase of treasury shares	5,109	17,953
Parent Company [Member]
Operating activities:
Net cash (used in) provided by operating activities	165,098	(17,595)	(15,581)
Investing activities:
Purchase of time deposits		(196,771)	(298,688)
Proceeds from maturity of time deposits	63,452	363,533	620,607
Investments made to subsidiaries			(198,137)
Foreign currency exchange losses	1,890	10,691
Net cash provided by investing activities	65,342	177,453	123,782
Financing activities:
Proceeds from bank borrowing	13,228
Issuance of Class A ordinary shares in connection with exercise of share options	2,952	22,254	20,388
Payment of dividends	(42,955)	(63,087)	(54,026)
Repurchase of treasury shares	(196,957)	(143,389)	(44,406)
Net cash used in financing activities	(223,732)	(184,222)	(78,044)
Changes in cash and cash equivalents	6,708	(24,364)	30,157
Effect of foreign currency exchange rate changes on cash and cash equivalents	1,141	(1,748)	7,338
Net increase (decrease) in cash and cash equivalents	7,849	(26,112)	37,495
Cash and cash equivalents at beginning of year	17,658	43,770	6,275
Cash and cash equivalents at end of year	25,507	17,658	¥ 43,770
Non-cash investing and financing activities:
Payable for repurchase of treasury shares	¥ 5,109	¥ 17,953

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - CNY (¥) ¥ in Thousands	Aug. 09, 2019	Jan. 17, 2019	Dec. 31, 2018
SUBSEQUENT EVENTS [Line Items]
Bank loan borrowed			¥ 13,228
Subsequent event
SUBSEQUENT EVENTS [Line Items]
Percentage of equity interest acquired, cost method		12.05%
Total consideration		¥ 10,000
Subsequent event \| Credit of line
SUBSEQUENT EVENTS [Line Items]
Percentage of equity interest acquired, cost method	1.15%
Face amount of debt	¥ 190,000
Bank loan borrowed	99,872
Carrying value of office buildings pledged for the loan	¥ 207,749