However, the gap between this year's cash flow and the year before is still quite huge.
The US-listed online education company GSX Techedu released its unaudited financial reports for 4Q 2020 and the whole year of 2020. As for 2020, the operating revenue reached CNY 7.12 billion, a year-on-year increase of 236.9%. K12 online courses were the main source of revenue, accounting for CNY 6.23 billion (87.54%). However, the net profit and net cash inflow decreased significantly, with a net loss of CNY 1.393 billion.
The number of paying users for regular price courses reached 5.871 million, an increase of 168.4% year-on-year. K12 online course paying users reached 5.42 million, accounting for 92.47% of the company's total paying users, with a year-on-year growth of 177.3%.
With the rapid growth of income, the net operating cash flow declined in 2020. The annual net profit was CNY -1.39 billion, compared to CNY 227 million in 2019. As for the fourth quarter of 2020, the company's net operating cash inflow was CNY 603 million, which helped turn the annual cash flow from negative to positive.
According to the company, the decrease in operating loss and net operating cash inflow was mainly due to a substantial increase in investment in marketing activities to expand the scale of users and improve brand awareness, according to the company.