Ambow Education Holding Ltd. Earnings Per Share Disclosure
15. NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted net income per share for the periods indicated:
| Years ended December 31, | ||||||||
| 2024 | 2025 | |||||||
| Numerator: | ||||||||
| Numerator for basic and diluted income per share from operations | $ | 309 | $ | 1,359 | ||||
| Denominator: | ||||||||
| Denominator for basic income per share weighted average ordinary shares outstanding | 57,127,524 | 57,127,524 | ||||||
| Denominator for diluted income per share weighted average ordinary shares outstanding | 57,127,524 | 57,641,319 | ||||||
| Basic income per share from operations | $ | 0.0054 | $ | 0.0238 | ||||
| Diluted income per share from operations | 0.0054 | 0.0236 | ||||||
| Basic income per ADS from operations (Note i) | 0.1080 | 0.4760 | ||||||
| Diluted income per ADS from operations (Note i) | $ | 0.1080 | $ | 0.4720 | ||||
(Note i) In February, 2024, the Company changed the ratio of its American depositary shares (“ADSs”) to its Class A ordinary shares from one (1) ADS, representing two (2) Class A ordinary shares, to one (1) ADS representing twenty (20) Class A ordinary shares.
Basic income per ADS is computed using the weighted average number of the ordinary shares outstanding during the year. Diluted income per ADS is computed using the weighted average number of ordinary shares and ordinary equivalent shares outstanding during the year. share was included in the calculation of diluted income per share for the year of 2024. 513,795 shares were included in the calculation of diluted income per share for the year of 2025.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.