OneSmart International Education Group Limited (NASDAQ:ONE) Q2 2020 Earnings Conference Call - Final Transcript
May 19, 2020 • 08:00 am ET
in online channels and decreased expense ratios driven by disciplined marketing expense control during COVID-19 period and more effective sales and marketing activities to support the growth of OneSmart online.
General and administrative expenses increased by 16% year-over-year to RMB214.5 million. Non-GAAP general and administrative expenses, which excludes share-based compensation, were RMB177.9 million, an increase of 2.9% from RMB172.8 million during the same period last year. The increase was primarily due to increased R&D expenses for OneSmart Online mixed with our expenses control policy to keep a healthy financial condition during COVID-19.
Let me now move on to cover some other key financial points for the second fiscal quarter of 2020. Capital expenditures for the second fiscal quarter of 2020 were RMB67.9 million, a decrease of RMB23 million from RMB90.9 million in the second fiscal quarter of 2019. The decrease was mainly because we prudently managed our cash flow and temporarily suspended leasehold improvements due to COVID-19.
As of February 29, 2020, the Company had cash and cash equivalents of RMB1,107.2 million and short-term investments of RMB384.4 million. OneSmart's prepayments from customer balance, which represents cash collected from enrolled students for courses and recognized proportionately as the training sessions are delivered, were RMB2, 385.6 million at the end of second fiscal quarter 2020, an increase of 21.1% from RMB1,969.5 million at the end of the second fiscal quarter in 2019.
This concludes our prepared remarks. I will now turn the call over to operator and open for Q&A. Operator, we're ready to take questions.