OFFCNEDUCATIONTECHNOLOGYCO.,LTD.
2020AnnualReport
StockCode:002607StockAbbr.:OFFCNEDU
April,2021
ChapterI.ImportantInformation,TableofContentsandDefinitions
TheCompany’sBoardofDirectors,SupervisoryCommittee,directors,supervisors,andseniormanagementherebyguaranteethatthecontentsoftheannualreportaretrue,accurate,andcomplete,andthattherearenomisrepresentations,misleadingstatements,ormaterialomissions,andshallassumeindividualandjointlegalliabilities.WangZhendong,theCompany’slegalrepresentative,ShiLei,headinchargeofaccountingandLuoXue,headoftheaccountingdepartment(Accountingsupervisor),declarethattheywarrantthetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Alldirectorsattendedtheboardmeetingforreviewingthisreport.Theforward-lookingstatementsonfutureplansanddevelopmentstrategiesinvolvedinthisreportdonotconstituteasubstantialcommitmenttoinvestors.ThepossibleriskshavebeendetailedinSectionIX“ForecastoftheCompany’sFutureDevelopment”ofChapterIV“DiscussionandAnalysisofCorporateOperating”ofthisreport.Pleasepayattentiontothepotentialinvestmentrisks.Accordingtothearrangementofthemajorassetsrestructuringin2018,thenetprofitsattributabletoshareholdersoftheparentcompanyafterdeductingnon-recurringprofitsandlossesfromtherestructuringcounterparty,BeijingOffcnEducationTechnologyCo.,Ltd.,shallbenolessthanRMB930.00million,RMB1.30billionandRMB
1.65billioninyearsof2018,2019and2020respectively.BeijingOffcnEducationTechnologyCo.,Ltd.hasachievedthenetprofitsafterdeductingnon-recurringprofitsandlossesamountedtoRMB1.12billion,RMB1.72billionandRMB1.90billionin2018,2019and2020respectively.Thethree-yearperformancecommitmenthasbeenfulfilledwithacompletionrateof122.28%.TheCompanyplansnottodistributecashdividends,bonusshares,nortoincreasesharecapitalbyconvertingcapitalreserve.TheCompany’s2020annualreportispreparedandpublishedinChineseversion,andtheEnglishversionisforreferenceonly.ShouldtherebeanyinconsistencybetweentheChineseversionandEnglishversion,theChineseversionshallprevail.
Contents
ChapterI.ImportantInformation,TableofContentsandDefinitions.........................................................................1
ChapterII.CorporateProfile&KeyFinancialIndicators...........................................................................................5
ChapterIII.BusinessOverview..................................................................................................................................10
ChapterIV.DiscussionandAnalysisofCorporateOperating...................................................................................18
ChapterV.SignificantEvents.....................................................................................................................................40
ChapterVI.ShareChangesandShareholders............................................................................................................73
ChapterVII.PreferredStock......................................................................................................................................81
ChapterVIII.ConvertibleCorporateBonds...............................................................................................................82
ChapterIX.Directors,Supervisors,SeniorManagementandEmployees................................................................83
ChapterX.CorporateGovernance.............................................................................................................................94
ChapterXI.CorporateBonds...................................................................................................................................103
ChapterXII.FinancialStatements............................................................................................................................104
ChapterXIII.DocumentsAvailableforReference..................................................................................................257
Definitions
Term(s)
| Term(s) | Definition |
| ThelistedCompany,TheCompany,OffcnEdu | OffcnEducationTechnologyCo.,Ltd. |
| TheCounterparty,LiYongxinandother10Counterparties,AllShareholdersofOffcnLtd. | LuZhongfang,LiYongxin,WangZhendong,AerospaceIndustry,GuangyinVenture,KeruiTechnologyInnovation,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an |
| Thismajorassetsrestructuring,Thistransaction,Thisrestructuring | Baseontheassessment,YaxiaAutotakesallassetsandliabilitiesotherthanretainedassetsastheexchange-outassetstoswaptheequivalentportionof100%equityofOffcnwhichheldbyLiYongxinandother10counterparties,andtheswappingdeficiencyissettledbyissuanceofYaxiaAutosharesaccordingtotheproportionofshareholding.Atthesametime,YaxiaIndustrialtransfers80,000,000and72,696,561YaxiaAutosharestoOffcnPartnershipandLiYongxinrespectively.AllshareholdersofOffcnentrustYaxiaAutotodirectlydelivertheexchange-outassetstoYaxiaIndustrialoritsdesignatedthirdpartyastheconsiderationforthetransferof80,000,000sharestoOffcnPartnership,andLiYongxinoffersRMB1billionincashastheconsiderationforthetransferof72,696,561shares. |
| AerospaceIndustry | BeijingAerospaceIndustryInvestmentFund(LimitedPartnership) |
| GuangyinVenture | BeijingGuangyinVentureCapitalCenter(LimitedPartnership) |
| KeruiTechnologyInnovation | BeijingKeruiTechnologyInnovationInvestmentCenter(LimitedPartnership) |
| OffcnPartnership | BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership),establishedbyallshareholdersofOffcnLtd.inaccordancewiththeshareholdingsratio,whichisusedtoundertake80,000,000sharesofthelistedCompanytransferredbyYaxiaIndustrial. |
| OffcnOnline | BeijingOffcnOnlineEducationTechnologyCo.,Ltd. |
| PerformanceCompensationObligor,PerformanceCommitmentPerson | LuZhongfang,LiYongxin,WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an |
| Committednetprofit | Committednetprofitattributabletoshareholdersoftheparentcompanyafterdeductingnon-recurringprofitsandlossesundertheconsolidatedstatementofanyofthethreefiscalyearsofOffcnEdu. |
| Actualnetprofits | Theactualnetprofitsattributabletoshareholdersoftheparentcompanyafterdeductingnon-recurringprofitsandlossesundertheconsolidatedstatementsofanyofthethreefiscalyearsofOffcnEdu. |
| Netprofitsafterdeductingnon-recurringprofitsandlosses | Thenetprofitsattributabletotheowneroftheparentcompanyafterdeductingnon-recurringprofitsandlossesundertheconsolidatedstatement. |
| OffcnLtd.PredecessorofBeijingOffcnBeijingOffcn | BeijingOffcnEducationTechnologyCo.,Ltd.(predecessor:BeijingOffcnEducationTechnologyStockCo.,Ltd.) |
| ProfitForecastCompensation | ProfitForecastCompensationAgreementsignedbyYaxiaAutoandLuZhongfang,Li |
Term(s)
| Term(s) | Definition |
| Agreement | Yongxin,WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an. |
| CSRC | ChinaSecuritiesRegulatoryCommission |
| CompanyLaw | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | SecuritiesLawofthePeople’sRepublicofChina |
| ArticlesofCorporation | ArticlesofCorporationofOffcnEducationTechnologyCo.,Ltd. |
| Yuan,10thousandyuan,100millionyuan | RMByuan,RMB10thousandyuan,RMB100millionyuan |
ChapterII.CorporateProfile&KeyFinancialIndicators
SectionI.Corporateprofile
StockAbbreviation
| StockAbbreviation | OFFCNEDU | StockCode | 002607 |
| ChangedStockAbbreviation(ifany) | / | ||
| ListedStockExchange | ShenzhenStockExchange | ||
| ChineseNameoftheCompany | 中公教育科技股份有限公司 | ||
| ChineseNameAbbreviationoftheCompany | 中公教育 | ||
| EnglishNameoftheCompany(ifany) | OffcnEducationTechnologyCo.,Ltd. | ||
| EnglishNameAbbreviationoftheCompany(ifany) | OFFCNEDU | ||
| LegalRepresentativeoftheCompany | WangZhendong | ||
| RegisteredAddress | YaxiaAutomobileCity,YijiangNorthRoad,JiujiangDistrict,WuhuCity,AnhuiProvince | ||
| ZipCodeofRegisteredAddress | 241000 | ||
| OfficeAddress | BlockB,HanhuaCenturyMansion,No.23XueqingRoad,HaidianDistrict,Beijing | ||
| ZipCodeofOfficeAddress | 100089 | ||
| CompanyWebsite | http://www.offcn.com | ||
| ir@offcn.com | |||
SectionII.Contactinformation
| BoardSecretary | SecuritiesAffairsRepresentative | |
| Name | GuiHongzhi | GuPan |
| Address | BlockB,HanhuaCenturyMansion,No.23XueqingRoad,HaidianDistrict,Beijing | BlockB,HanhuaCenturyMansion,No.23XueqingRoad,HaidianDistrict,Beijing |
| Tel. | 010-83433677 | 010-83433677 |
| Fax | 010-83433666 | 010-83433666 |
| ir@offcn.com | ir@offcn.com |
SectionIII.InformationdisclosureandlocationofAnnualReport
Company’sDesignatedInformationDisclosureMedia
| Company’sDesignatedInformationDisclosureMedia | SecuritiesTimes,ShanghaiSecuritiesNewsandChinaSecuritiesJournal |
| WebsiteDesignatedbytheChinaSecuritiesRegulatoryCommissionforPublishingtheAnnualReport | http://www.cninfo.com.cn |
| PlaceWheretheAnnualReportisAvailableforInspection | OfficeofSecretaryoftheBoard |
SectionIV.RegistrationChanges
| OrganizationCode | 91340200711040703A |
| ChangesinMainBusinessSincetheCompany’sListing(ifany) | None |
| ChangeofPreviousControllingShareholders(ifany) | None |
SectionV.Otherrelevantinformation
AccountingfirmhiredbytheCompany
| AccountingFirmName | BakerTillyChinaCertifiedPublicAccountants(LLP) |
| OfficeAddressoftheAccountingFirm | No.12Building,ForeignCulturalandCreativeGarden,No.19ChegongzhuangWestRoad,HaidianDistrict,Beijing,China |
| SigningAccountants’Names | ZhouBaiming,ShenXu |
SponsorinstitutionengagedbytheCompanytoperformcontinuoussupervisiondutiesduringthereportingperiod
□Applicable√NotapplicableFinancialadviserengagedbytheCompanytoperformcontinuoussupervisiondutiesduringthereportingperiod
√Applicable□Notapplicable
| FinancialAdvisor | OfficeAddress | Financialadvisorsponsor | ContinuousSupervisionPeriod |
| HuataiSecuritiesCo.,Ltd. | 26thFloor,CTSBuilding,NO.4011ShennanAvenue,FutianDistrict,Shenzhen,Guangdong,China | CuiBinbin,CuiLi | Nov.28,2018-Dec.31,2021 |
SectionVI.KeyAccountingInformationandFinancialIndicators
WhethertheCompanyneedstoadjustitsfinancialinformationretrospectivelyorrestateitspreviousyearaccountinginformation
□Yes√No
Year2020
| Year2020 | Year2019 | Increase/Decreaseoverthepreviousyear | Year2018 | |
| Operatingincome(RMB) | 11,202,494,295.04 | 9,176,129,995.89 | 22.08% | 6,236,987,812.57 |
| NetprofitattributabletoshareholdersofthelistedCompany(RMB) | 2,304,357,742.74 | 1,804,548,688.01 | 27.70% | 1,152,887,416.22 |
| Netprofitafterdeductingnon-recurringprofitsandlossesattributabletoshareholdersofthelistedCompany(RMB) | 1,867,289,479.85 | 1,700,369,663.16 | 9.82% | 1,112,879,085.16 |
| Netcashflowfromoperatingactivities(RMB) | 4,882,469,101.91 | 2,473,986,085.19 | 97.35% | 1,407,946,376.93 |
| Basicearningspershare(RMB/share) | 0.37 | 0.29 | 27.59% | 0.22 |
| Dilutedearningspershare(RMB/share) | 0.37 | 0.29 | 27.59% | 0.22 |
| Weightedaveragereturnonnetassets | 66.15% | 60.71% | 5.44% | 71.89% |
| YearEnd2020 | YearEnd2019 | Increase/DecreaseOverPreviousYearEnd | YearEnd2018 | |
| Totalassets(RMB) | 14,418,850,027.27 | 9,960,705,427.94 | 44.76% | 7,202,071,521.23 |
| NetassetsattributabletoshareholdersofthelistedCompany(RMB) | 4,275,127,793.20 | 3,431,545,903.82 | 24.58% | 2,953,951,905.00 |
ThelowerofthenetprofitoftheCompanybeforeandafterdeductionofnon-recurringprofitsandlossesforthemostrecentthreefinancialyearsisnegative,andtheauditreportofthemostrecentyearshowsthatthereareuncertaintiesontheCompany’sabilitytocontinueoperations
□Yes√NoThelowerofthenetprofitbeforeandafternon-recurringprofitsandlossesisnegative
□Yes√NoSectionVII.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesbetweennetprofitsandnetassetsdisclosedinthefinancialreportsinaccordancewithChineseaccountingstandardsandinternationalaccountingstandards
□Applicable√NotapplicableThereisnodifferencebetweenthenetprofitsandnetassetsdisclosedinaccordancewithChineseaccountingstandardsandthosedisclosedinaccordancewithinternationalaccountingstandardsinthereportingperiod.
2.DifferencesbetweennetprofitsandnetassetsdisclosedinthefinancialreportsinaccordancewithChineseaccountingstandardsandoverseasaccountingstandards
□Applicable√NotapplicableThereisnodifferencebetweenthenetprofitsandnetassetsdisclosedinaccordancewithChineseaccountingstandardsandthosedisclosedinaccordancewithoverseasaccountingstandardsinthereportingperiod.
SectionVIII.QuarterlyKeyFinancialIndicators
Unit:RMB
TheFirstQuarter
| TheFirstQuarter | TheSecondQuarter | TheThirdQuarter | TheFourthQuarter | |
| Operatingincome | 1,230,102,270.48 | 1,577,878,210.12 | 4,630,989,349.21 | 3,763,524,465.23 |
| NetprofitattributabletoshareholdersofthelistedCompany | 116,303,799.91 | -349,330,445.07 | 1,553,920,155.49 | 983,464,232.41 |
| Netprofitafterdeductingnon-recurringprofitsandlossesattributabletoshareholdersofthelistedCompany | 77,685,654.82 | -445,228,037.65 | 1,445,848,093.32 | 788,983,769.36 |
| Netcashflowfromoperatingactivities | 2,564,218,312.85 | 1,499,457,191.34 | 2,654,154,595.86 | -1,835,360,998.14 |
DotheabovefinancialindicatorsortheirtotaldiffersignificantlyfromthosedisclosedintheCompany’squarterlyandsemi-annualreports?
□Yes√NoSectionIX.Non-RecurringProfitsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | Year2020 | Year2019 | Year2018 | Note |
| Profitsorlossesondisposalofnon-currentassets(includingoffsettingamountfortheprovisionofimpairmentofassets) | 162,043.59 | 182,904.69 | 2,424,436.19 | |
| Governmentsubsidiesincludedinthecurrentprofitsandlosses(exceptforgovernmentsubsidiescloselyrelatedtothebusinessoftheenterprisethatarefixedorquantifiedinaccordancewithnationalunifiedstandards) | 20,128,697.09 | 472,098.91 | ||
| Capitaloccupationfeeschargedtonon-financialenterprisesincludedinthecurrentprofitsandlosses | 13,192,187.13 | |||
| Profitsorlossesfromentrustingotherstoinvestormanageassets | 180,223,310.57 | 184,130,073.02 | 105,926,458.77 |
Profitsorlossesonchangesinfairvaluearisingfromthepossessionoftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,andderivativefinancialliabilities;andtheinvestmentincomefromthedisposaloftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,derivativefinancialliabilitiesandotherdebtinvestmentsexcepttheeffectivehedgingbusinessrelatedtotheCompany’snormalbusinessoperations
| Profitsorlossesonchangesinfairvaluearisingfromthepossessionoftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,andderivativefinancialliabilities;andtheinvestmentincomefromthedisposaloftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,derivativefinancialliabilitiesandotherdebtinvestmentsexcepttheeffectivehedgingbusinessrelatedtotheCompany’snormalbusinessoperations | 20,984,385.76 | 1,712,787.50 | ||
| Custodyincomefromentrustedoperations | 226,415.09 | 411,320.75 | 2,697,559.29 | |
| Othernon-operatingincomeandexpensesexceptfortheitemsabove | -629,138.85 | -1,341,412.25 | -489,475.49 | |
| Otherprofitsorlossesitemsthatmeetthedefinitionofnon-recurringprofitsandlosses | 280,283,117.41 | -53,800,000.00 | -53,800,000.00 | |
| Less:Impactonincometax | 76,183,536.19 | 27,588,747.77 | 16,750,647.70 | |
| Impactonminorityshareholders’equity(aftertax) | 1,319,218.71 | |||
| Total | 437,068,262.89 | 104,179,024.85 | 40,008,331.06 | -- |
Provideexplanationsforclassifyingitemsofnon-recurringprofitsorlossesdefinedorlistedintheExplanatoryAnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringProfitsandLossesasitemsofrecurringprofitsorlosses.
□Applicable√NotapplicableTheCompanyhasnotclassifiednon-recurringprofitsorlossesitemsdefinedorlistedintheExplanatoryAnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringprofitsandlossesasrecurringprofitorlossitemsinthereportingperiod.
ChapterIII.BusinessOverview
SectionI.TheCompany’smainbusinessduringthereportingperiod
1.Themainbusiness,productsandbusinessmodeloftheCompanyduringthereportingperiodOffcnEducationisaleadingfull-categoryvocationaleducationinstitutioninChina,anditisalsothepioneerandleaderinthefieldofpublicservicerecruitmentexaminationtraining.TheCompanybravelyundertakesthemissionofthetimes,continuestocreatenewmarkets,andservesthesocietywithkindnessandaltruism.Forhundredsofmillionsofknowledge-basedpeople,theCompany’smainbusinesscoversthreemajorsectorsincludingtrainingforpublicservicerecruitmentexamination,collegeandhighinstitutionenrollmentexaminationandvocationalabilityenhancement,anditprovidesmorethan100categoriesofcomprehensivevocationaltrainingservices.TheCompanyhasmorethan1,600outletsacrossthecountry,coveringmorethan300prefecture-levelcities,andisrapidlyexpandingintothousandsofcountiesanduniversities.OffcnEducationmainlyservesknowledge-basedemploymentpopulationincludingcollegestudents,universitygraduates,andvariousprofessionals,aged18to45.Thishugegroupofhundredsofmillionsofpeopleisspreadthroughoutthecountry,citiesandtownsatalllevelsandinallwalksoflife.Employmentandvocationalabilityimprovementaretheirtwocoredemands.VocationalabilitydetermineslaborproductivitywhichisthekeytoChina'ssuccessinovercomingthe“middleincometrap”.Andemploymentisnotonlyabarometerofeconomicgrowth,butalsoafulcrumoftheentirevocationaleducation.Itisalsotheultimatearenaforvocationaleducationinstitutions.Forthisreason,thevocationaleducationinstitutionsthatcangetclosertotheemploymentneedsinthelargestscopeandtothegreatestextentcangetmoreopportunitiestoturntheflywheelofmulti-categorygrowthandcanbecomeadominatorintheoverallvocationaleducationfield.Afteralongtermexplorationandaccumulation,OffcnEducationhasownedalarge-scalefull-timeR&Dteamofmorethan3,000people,alarge-scaleteachingteamofmorethan18,000teachers,andastaffofmorethan45,000people.Relyingonoutstandingteamexecutionandnationwideverticalintegratedfastresponsecapability,theCompanyhasdevelopedintoaninnovation-drivenhigh-growthenterpriseplatform.
2.Overviewoftheindustryandbusinessenvironmentin2020
(1)Greaterprogresshasbeenmadeineducationequity,andthe“14thFive-YearPlan”hasestablishednewtargetsforinvestmentinpublicservicessuchaseducationandmedicalcare.AftertheNPC&CPPCCAnnualSessions,thereformofhighschoolentranceexaminationfeaturedbykeyhighschoolsadmissionquotasforgraduatesfromnon-keymiddleschoolshasbeencarriedoutacrossthecountry.Itisanothersignificantmeasureforeducationequalityfollowingthepreviousreformsofmulti-schooldivisioninoneneighbourhood,equalrecruitmentfrompublicandprivateschools,andrandomizedenrollmentinthefieldofprimaryandmiddleschoolenrollments.Withthereturnofbasiceducationtoitsnatureofpublicproducts,thisroundofreformswillgreatlypromotetheexpansionofteacherrecruitmentandteacherqualificationcertificateexaminations.The“14thFive-YearPlan”requireseducationequalityandqualitytobegreatlyimproved,highereducationtobepopularized,andmorethan60millionnewjobstobecreatedincitiesandtowns.Inaddition,20,000kindergartenswillbebuilt,renovatedandexpandedinordertoincreaseenrollmentsbyover4millionforordinaryfamilies.Andmorethan4,000primaryandsecondaryschoolswillbenewlybuilt,renovatedandexpanded.Intermsofmedicalandhealthcare,ontheonehand,itisnecessarytoexpanddiseasepreventionandcontrolbasesandbuildnationalandregionalmedicalcenters.Ontheotherhand,itisnecessarytostrivetoupgrade500county-levelhospitalstomeetthefacilitiesandservicecapabilitiesoftop-tierhospitals.
Intermsofelderlycareservices,500districtsandcountieswillbesupportedinbuildingamodelcommunityhomeelderlycareservicenetwork,about300trainingandconvalescentinstitutionswillbesupportedintransformationintoinclusiveelderlycareinstitutions,andmorenursingbedswillbeprovidedforabout1,000publicelderlycareinstitutions.Intermsofchildcareservices,150citieswillbesupportedtodevelopchildcareserviceswithsocialresource,andmorethan500,000exemplaryinclusivechildcareenrollmentswillbeadded.Insummary,the“14thFive-YearPlan”willfurtheraccelerateinvestmentinpublicservicesandfurtherquantifytheindicators,whichwillstronglypromotethesustainablegrowthoftherecruitmentsectors,especiallyteachers,medicalandcommunityservices.
(2)Thepandemichasacceleratedtheeliminationofindustries,andlargeleadingcompanieshavefurtherpromotedthedemandgrowth.Foralongtime,thevocationaleducationindustryhasbeenfilledwithsmallandscatteredcompaniesandthemarketcompetitionisinchaos.Ontheonehand,thesupplyofcost-effectiveandhigh-qualityeducationproductsisseverelyinsufficient,whichdepressesdemand,butontheotherhand,thereisaseriousexcessofhomogenizedproductioncapacityandcutthroatcompetitioniswidespread.Onlylargeenterprisescanbreakthroughthedifficultiesandobstaclescausedbytheextremefragmentationofthemarket.Throughsufficientinvestmentincorebusinesssuchasteachingandresearch,channels,andmanagement,brand-newandcost-effectiveproductscanbecreated,andhugepotentialdemandcanbedugout.Byexpandingbusinessintovarioussectorsandpushingeachsectorforward,avocationaleducationmarketfieldvaluedoftensofbillionscanbecreated.
(3)MainindustrycharacteristicsandcyclicalcharacteristicsTheindustryofvocationaleducationdistributesvastlyalloverthecountryanddemonstratesasignificantlong-taileffect.DifferentfromboththeK12tutoringindustryandEnglishlanguagetrainingindustrywhichareconcentratedinbigcities,thedemandofvocationaleducationdistributesvastlyineveryprovinceandeverycity,especiallyintheprefecture-levelcitiesandthecounties.Almosteverycountyhasavocationalhighschool,andeveryprefecture-levelcityhasvocationalcolleges.Therecruitmentdemandofpublicemployersfromprefecture-levelcitiesandcountiesalsooccupiesalargeproportion,whichstimulateslotsoflocalsmalltraininginstitutionstogetintothemarketandprovidesawidespaceforthelargescaleplayerstoexpandtheirnetworkofchannels.Meanwhile,thenation-wideoperationaddsmoredifficultiestomanagementononehand,andliftsthe
barrierstocompetitionontheotherhand.Thetrainingforpublicservicesrecruitmenttestisseasonal.Forstudents,the1-2yearsbeforeoraftergraduationarethekeyperiodtotaketrainingclassesfortherecruitmenttests.Thenationalcivilservanttesttakesplaceonceayear,andtheprovincialexaminationsforeachprovincearebasicallyonceayear.Manyprovincialexaminationstakeplaceinthefirsthalfoftheyear,whilequiteafewprovinceschoosetorecruitcivilservantsinthesecondhalf.Therecruitmentofpublicinstitutionemployeesandteachersarecarriedoutaccordingtotheneedsoftheprovincesandcities,whichareevenlydistributedineachmonththroughouttheyear.Thedocumentsofrecruitmentplanareofagreatamountandthenumberofexamsamountstotensofthousands.Thisseasonalfluctuationofrecruitmenthascausedmajorgrowthbottlenecksforsmallandmedium-sizedtrainingcompaniesandhasalsoprovidedlargeinstituteswithcontinuousmotivationtoconstantlychallengethescaleboundary.Withtherapidincreaseinexaminationcategoriesandbusinesssectors,largeenterpriseswillincreasinglyenjoytheresultsofscaleeffectsandobtainamoresoundresourceallocationstructure.Inrecentyears,themomentumofrecruitmentexaminationshasswitchedtonewareassuchaspublicinstitutions,teachersandcomprehensiverecruitment,bringingtherapidconcentrationofmarketshareintoleadingenterprises.
SectionII.Majorchangesinkeyassets
1.Majorchangesinkeyassets
Keyassets
| Keyassets | Descriptiononmajorchanges |
| Equityassets | Nomajorchanges |
| Fixedassets | Itismainlyduetotheincreaseinhousesandbuildings |
| Intangibleassets | Itismainlyduetotheincreaseinlanduserights |
| Constructioninprogress | Itismainlyduetotheconversionofengineeringprojectstofixedassets |
| Monetaryfunds | Itismainlyduetotheincreaseinreceivedpaymentswithinthisperiodandtheredemptionoffinancialproductsatduedate |
| Transactionalfinancialassets | Itismainlyduetotheredemptionoffinancialproductsatduedate |
| AccountsReceivable | Itismainlyduetotheincreaseinrentreceivable |
| Othercurrentassets | Itismainlyduetotheincreaseinprepaidrentandpropertyexpenses |
| Bondinvestments | Itismainlyduetotheadjustmentoffixeddepositandinterestduewithinoneyeartonon-currentassetsduewithinoneyear |
| Non-currentassetsduewithinoneyear | Itismainlyduetotheadjustmentoffixeddepositandinterestduewithinoneyeartonon-currentassetsduewithinoneyear |
Othernon-currentfinancialassets
| Othernon-currentfinancialassets | Itismainlyduetotheincreaseinfinancialproductsthathavenotyetdueattheendoftheperiodandhaveamaturityperiodofmorethanoneyear |
| Long-termprepaidexpenses | Itismainlyduetotherenovationcostofthenewbases. |
| Othernon-currentassets | Itismainlyduetothelandpurchaseandequityacquisition |
2.Keyoverseasassets
□Applicable√Notapplicable
SectionIII.AnalysisoftheCompany’scorecompetitiveness
TheCompany’scorecompetitivenessisbasedontheformationofanenterpriseplatformwhichempowersrapidgrowthdrivenbytheverticalintegratedfastresponsecapability.Thekeydrivingfactorsareasfollows:
1.Outstandingexecutionfostersthefast-growthcultureTheteambuilttheCompanywithoutstandingexecution,andfosteredtheCompany’sfast-growthculturethroughalongperiodofendeavoringtogrowinadversityandpersistentlypursuingtobreakthegrowthboundary.Withthiskindofculture,theteamalwaysmaintainsthefirmwillandbelieftocreatethefuture,investsaudaciously,achieveseconomiesofscaleinahighlyfragmentedandregionallyisolatedmarket,strivestobeclosertotheoptimaloutput,capturesopportunities,andconfrontsfluctuations.Withconstantself-revolutionofcreativedestruction,theteamcanalwayscreatenewmarketsininconspicuousplaces,makingsustainedrapidgrowthpossible.
2.ClusteredprofessionalR&DoutputcontinuouslyincreasesthemomentumforinnovationAtthebeginningofthecareer,theCompanytooktheleadincarryingoutfull-timeandprofessionalR&D,based
onwhichitcreatedabrand-newmarket.Overthepastdecade,theCompanyhasfosteredanexpertteamwithrichpracticalexperienceofR&DandR&Dmanagementthroughfront-lineteachingpracticeandadaptiontomarketupgrading.Underthejointleadofthefoundingteamandtheexpertteam,afull-timeR&Dteamofmorethan3,000peoplehasformed.Withtheexpansionofcategoriesandtheinvolvementofdifferentsectors,theCompanymanagestorefinethelaborofR&Dprofessionalsconstantlyunderthescaleeffect,andtheR&Dclustereffectofcollaborationbetweenbusinesssectorsisachieved,whichgreatlyimprovestheefficiencyofR&D,especiallythegraftefficiencyofexistingR&Dresourcesfornewcategoriesandnewbusinesses.
3.VerticalintegratedfastresponsecapabilitysupportsthecorporatestructureandworkingefficiencyforsustainedandhighgrowthThehighoperationefficiencyfarbeyondthegeneralindustriesisanecessitytorealizescaleeconomyandestablishcompetitivebarrierinthedecentralizedmarket.Therefore,theCompanydevelopsaverticalintegratedrapidresponsesystemandcapabilitytobestadapttothiskindofmarketenvironment.Ineachexam,“Businessoutlet—Headquarterscommandcenter—Teachingsites”communicateandcollaboratecloselywithhighfrequencyeveryday,soastomaintaintheoperationmanagementandlearningoutcomesatalevelfarabovetheaverage.Verticalintegratedcorporatestructurecannotonlyrealizethehighefficiencyofoperation,butalsobeeffectivelycompatiblewiththemanagementimpactbroughtbyhighgrowthandrapidbusinesscategoryexpansion.Therefore,investmentinandinnovationonthiscorporatestructurehasalwaysbeenacentralpartofthemanagementreform.Atpresent,theCompanyhasestablishedmorethan1,600businessoutletscovering300prefecture-levelcitieswithconstantlyacceleratingexpansion.Simultaneously,theheadquarterscommandcentercontinuestoseekthescaleeffectofmanagementwiththehelpofmanagementreformanddigitaloperation.Inrecentyears,theCompanyalsohasbeencontinuouslyinvestingintheconstructionoflarge-scaleone-stopbasesforfood,housingandlearningtoprovidetheteachersandstudentswithone-stopbestexperienceontheteachingsites.
4.“Theflywheeleffectofmulti-categoriesgrowth”magnifiestheCompany’sgrowthprospectsstepbystepInvestmentcapacitiesbetweenmulti-categoriesgetsaccumulatedandsuperposed.Theflywheeleffectofmulti-categoriesgrowthconstantlyincreases.Thedevelopmentofnewandoldcategoriesmutuallyamplifiesinvestmentadequacy.Togetherastrongerabilityofoperatinginfrastructureisjointlypromoted.
ThemainbusinessoftheCompany,whosecustomersincludehundredsofmillionsofknowledge-basedlaborpopulationagedbetween18and45acrossthecountry,spansthreesectorsoftrainingforpublicservicerecruitmentexamination,collegeandhighinstitutionenrollmentexamination,andvocationalabilityenhancement.toprovidecomprehensivevocationaltrainingservicescoveringmorethan100categories.Atpresent,theflywheeleffectofgrowthhasexpandedtoinvolvethethreesectorsandmagnifiedtheCompany’sgrowthprospectsstepbystep.Thesectoroftrainingforcollegeandhighinstitutionenrollmentexaminationwillbecomeanimportantimpetusforgrowthin3to5yearswhilethesectoroftrainingforvocationalabilityenhancementwillbecomethelargestandthemostsignificantcontributortothegrowthoftheCompanyin5to10years.
5.Digitaloperationformstheenterpriseplatformwith“real-timesituationalawareness”Theteam’sexplorationfordigitaloperationhaslastedformorethan15years,andinrecentyears,theinvestmentfordigitaloperationinfrastructurehasincreasedsignificantly.Onereasonistomeetthemanagementneedsforfastgrowthandrapidexpansionofcategories.Theotherreasonliesinthegreatadaptabilityofverticalintegratedfastresponsesystemtothedigitization.Afterthesystemwasintegratedwiththedigitizationindepth,itgeneratedhigheroperatingefficiencyandsignificantlyimprovedthefrontlineandbackgroundresponsefrequencyfromunitsofdaystoalevelcloseto“real-timesituationalawareness”,whichgreatlyenhancedtheCompany’scorecompetitivenessbasedonspeedeconomy.
6.ThevaluesofOFFCNEDU:kindnessandaltruismexistseverywhereandcontinuestoflourishAsaknowledge-basedstaff-intensivevocationaleducationinstitution,theCompanyhasestablishedaconciseandeffectivecorporatecultureinthelongjourneyofarduousentrepreneurship,withthecorevalueof“BeGood&DoRight”andadvocatingaltruism.Notonlyhasitbecomeacompanysystem,butalsothefoundingteamhastakentheleadtosetanexample,drivenitstepbystep,andunswervinglyimplementeditintheoperation,makingthevaluesofOFFCNEDUubiquitousandendlessintheenterprise.ThisdistinctiveandtangiblecorporatecultureallowstheCompanytomaintainstrongorganizationalcohesioninhighgrowth.
7.OFFCNEDUstrivestoenhancethedevelopmentoftheorganizaionofCPC,whichinturnpromotesthehealthyandvigorousdevelopmentoftheCompanyFromtheestablishmentoftheCPCcommitteein2018totheestablishmentofthefirstCPCschoolofnon-state-ownedenterprisein2019,thePartycommitteeofOFFCNEDUhasfullyutilizedtheCompany’sadvantagesofknowledge,theoryandtechnologyandactivelypromotesandimplementstheParty’spoliticalroutes,principles,andpoliciestoitsemployeesandstudents.Meanwhile,OFFCNEDUfocusesontheintegrationoftheParty’sdevelopmentinnon-state-ownedenterprisewithcorporateculturecultivation,topromotethehealthyandvigorousdevelopmentoftheenterprise.AsofDecember31,2020,theCompanyhad9,236Partymembers,accountingformorethanone-fifthofthetotalnumberofemployees.
ChapterIV.DiscussionandAnalysisofCorporateOperatingSectionI.Overview
2020isaturbulentyear.ThesuddenoutbreakofCovid-19hasseverelydisruptedandadverselyaffectedthebusinessofthewholeyear.Afterarduousefforts,theCompanyhasmaintainedsteadydevelopmentandcontinuedtomaintainitsmarketleadershipandpotentialforexpansion.Overthepastthreeyears,despitetheinstitutionalreformsandthepandemic,theCompanyhasachievedsteadygrowthinperformanceandbusinessscale,systematicallyimprovedthecomprehensiveservicelevelforstudents,andcontinuedtomaintainitsleadingedgeintheindustry.Withthecontinuousexpansionofbusinessscale,theCompanyseizedtheopportunitytofullyinvestinandupgradehumanresourcesmanagement,outletschannelsandteachingfacilities.Abundantforward-lookinginvestmentswerespeciallymadefornewtypesofrecruitment,postgraduateentranceexamination,collegeandhighinstitutionenrollmentexamination,vocationalabilitytrainingandotherkeynewbusinesses.Theoutputeffectfrominvestmentsinthesecorebusinessresourceswillbecomeanimportantsupportforthenextstageofdevelopment.
1.Thoughthepandemicstronglydisturbsthepaceofrecruitment,theCompany,withprominentexecutionability,overcomesdifficultieswithsteadydevelopment.Inearly2020,themarketfluctuationcausedbygovernmentinstitutionalreformcametoendandtherecruitmentdemandsreboundedagain.ButthesuddenoutbreakofCovid-19stronglydisturbedtherhythmofrecruitment.Specifically,ontheonehand,therecruitmentinthefirsthalfoftheyearwasalmostfrozen,andthedailyoperationandteachingcouldnotproceednormally;ontheotherhand,thecivilservantjointexaminationwaspostponedtothethirdquarter,whichseriouslysqueezedthepreparationtimeforrecruitmentandenrollmentexaminationsofothersectors,resultinginasubstantialshrinkinrecruitmentofteachersandmedicalworkers.Andtherecruitmentandexaminationpreparationforpublicinstitutionscategoryandetc.,werealsodisturbed.Withstrongcorporateplatformcapabilitiesandprominentteamexecution,theCompany’sperformancehasmaintainedsteadyandrapidgrowth.Duringthereportingperiod,theCompanyachievedatotaloperatingincomeofRMB11,202,494,295.04,anincreaseof22.08%onyear-on-yearbasis;netprofitattributabletoshareholdersofthelistedCompanywasRMB2,304,357,742.74,anincreaseof27.70%overthesameperiodofthepreviousyear.Afterdeductingnon-recurringprofitsandlosses,netprofitattributabletotheparentcompany’sshareholderswasRMB1,867,289,479.85,anincreaseof9.82%onanannualbasis.Thekeyoperatingresourcesandperformanceindicatorsin2020arestatedinthetablebelow:
Item
| Item | Indicators | Attheendofthereportingperiod | Attheendoflastyear | Year-on-yearchange |
| Operatingresources | Directlyoperatedbranches | 1,669 | 1,104 | 51.18% |
| Employees | 45,066 | 35,209 | 28.0% | |
| R&Dpersonnel | 3,025 | 2,051 | 47.49% | |
| Teachingprofessionals | 18,863 | 13,475 | 39.99% | |
| Business | Trainees | 4,494,348 | 3,287,356 | 36.72% |
| Revenueofface-to-facetraining(RMB) | 8,233,444,798.58 | 8,083,730,102.79 | 1.85% | |
| Revenueofonlinetraining(RMB) | 2,905,456,920.13 | 1,035,595,638.64 | 180.56% | |
| Profits | Operatingincome(RMB) | 11,202,494,295.04 | 9,176,129,995.89 | 22.08% |
| NetprofitsattributabletoshareholdersofthelistedCompany(RMB) | 2,304,357,742.74 | 1,804,548,688.01 | 27.70% |
2.TheCompanymakessignificantachievementsindigitaloperationsandreceivesexplosivegrowthinOMObusiness.TheCompanycontinuestopromotethein-depthmatchingofdigitaloperationandtheverticalintegratedrapidresponsesystem,usingthepowerofdigitaloperationtoseekamoreefficientlevelwithrapidresponse,andfurtherenhancetheCompany’scorecompetitivenessbasedonspeedeconomy.Aftertheoutbreakofthepandemic,thespacefordigitaloperationsubstantiallyexpands.Withawell-developedsmartteachingplatform,onlinelarge-scaleR&D,andcomprehensiveservicecapabilities,theCompanyhaspromotedOMOproductswithunprecedentedintensity.Ithasnotonlyachievedsignificantresults,butalsocontributedtoconsiderablegrowthinanextremelyunfavorablebusinessenvironment.Duringthereportingperiod,theonlinetrainingbusinessachievedrevenueofRMB2,905,456,920.13,anincreaseof180.56%overthesameperiodoflastyear.Theproportionofonlinetrainingrevenueintheoverallrevenuealsoincreasedsignificantly,from11.29%inthesameperiodoflastyearto25.94%.Thenumberofpeoplereceivingonlinetrainingwascloseto3million,anincreaseofover60%.
3.Revenueoftrainingsectorforpublicservicerecruitmentexaminationsgrowssteadily,andthetrainingforcivilservantsexaminationstronglypulledthesectorthroughthepandemicperiod.Duringthereportingperiod,thepandemicstronglydisturbedtherecruitmentrhythm,andtheperformanceofthetrainingsectorforpublicservicerecruitmentexaminationswasunderheavypressure.However,thereboundoftherecruitmentdemandsisassured,especiallythereboundoftherecruitmentdemandsofcivilservants.Inthecaseoftemporarypassivereductionofotherrecruitmentdemands,thetrainingforcivilservantexaminationshasdriventhetrainingsectorforpublicservicerecruitmentexaminationsandtheCompany’soverallperformancetoachievesteadygrowth.Intermsofrecruitmentcategories,civilservantsrecruitmentcategoryachievedrevenueofRMB6,289,564,053.54inthereportingperiod,anincreaseof50.79%fromRMB4,171,091,369.87inthesameperiodoflastyear;publicinstitutionsrecruitmentcategoryachievedrevenueofRMB1,273,504,970.82inthereportingperiod,adecreaseof9.12%fromRMB1,401,287,171.43inthesameperiodoflastyear;andteachersrecruitmentcategoryachievedrevenueofRMB1,794,466,441.92,adecreaseof7.15%fromRMB1,932,698,035.79inthesameperiodoflastyear.Aftermergingothernewbusinesses,othercategoriesintotalachievedrevenueofRMB1,781,366,252.43inthereportingperiod,anincreaseof10.35%fromRMB1,614,249,164.34inthesameperiodoflastyear.Thepandemichassignificantlydisturbedtheannualoperationcycle,resultinginasituationwherethetrainingforrecruitmentexaminationsinthefirsthalfoftheyearwashalfpaused.Inaddition,thepostponementoftheprovincialjointentranceexaminationforcivilservantsfromthefirsthalfoftheyeartothesecondhalfoftheyeardirectly,ontheonehand,affectedtherecruitmentofteachers,publicinstitutionsemployees,medicalworkers,etc.,andtherecruitmentplanforthisyearwasshrunkordelayed;andconsequentlyontheotherhand,jobseekersfocusedonthepreparationforcivilservantsrecruitmentinthesecondhalfoftheyear,andtherewashardlyanytimeforthemtotakeextratrainingforotherexamsaswhattheydidinpreviousyears,whichaffectedtheCompany’senrollmentinotherrecruitmentcategoriestoacertainextent.ThissituationwaspartiallyalleviatedwhenmostofthecollegestudentsreturnedtoschoolinlateSeptember.Inthechaoticrecruitmentenvironment,theCompanyproactivelycarriedoutproductinnovationandenhanceditspromotionefforts.Withallthechallenges,itstillachievedsteadygrowthinthenumberoftraineesineachcategory.Thenumberoftraineesforthecivilservantrecruitmentincreasedbymorethan50%,andtheCompany’soveralltraineenumberincreasedbyalmost40%.Althoughthereexistsaslightdeclineintherevenuefrompublicinstitutionsandteachersrecruitment,ithasnotchangedthetendencyofCompany’srapidexpansioninrelatedfields,nordoesitmeanthatthetrendofsteadyincreaseofrecruitmentdemandsinthesefieldsisreversed.
SectionII.Corebusinessanalysis
1.OverviewReferto“SectionI.Overview”of“ChapterIV.DiscussionandAnalysisofCorporateOperating”
2.Revenueandcost
(1)Compositionofrevenue
Unit:RMB
2020
| 2020 | 2019 | Year-on-yearincreaseordecrease | |||
| Amount | Proportionofrevenue | Amount | Proportionofrevenue | ||
| Revenue | 11,202,494,295.04 | 100% | 9,176,129,995.89 | 100% | 22.08% |
| Sectors | |||||
| Educationaltraining | 11,138,901,718.71 | 99.43% | 9,119,325,741.43 | 99.38% | 22.15% |
| Others | 63,592,576.33 | 0.57% | 56,804,254.46 | 0.62% | 11.95% |
| Categoriesofproduct | |||||
| TrainingforCivilServantTest | 6,289,564,053.54 | 56.14% | 4,171,091,369.87 | 45.46% | 50.79% |
| TrainingforPublicInstitutionTest | 1,273,504,970.82 | 11.37% | 1,401,287,171.43 | 15.27% | -9.12% |
| TrainingforTeachers’RecruitmentTest | 1,794,466,441.92 | 16.02% | 1,932,698,035.79 | 21.06% | -7.15% |
| Trainingforotherpublicservicestestandnewbusinesses | 1,781,366,252.43 | 15.90% | 1,614,249,164.34 | 17.59% | 10.35% |
| Others | 63,592,576.33 | 0.57% | 56,804,254.46 | 0.62% | 11.95% |
| Regions | |||||
| NortheastChina | 1,575,156,348.27 | 14.06% | 1,605,248,551.77 | 17.49% | -1.87% |
| NorthChina | 1,875,752,184.53 | 16.74% | 1,507,996,401.11 | 16.43% | 24.39% |
| EastChina | 2,654,580,800.73 | 23.70% | 2,291,959,920.38 | 24.98% | 15.82% |
| CentralChina | 1,349,672,939.31 | 12.05% | 924,399,970.66 | 10.07% | 46.01% |
| SouthChina | 1,016,364,626.14 | 9.07% | 752,986,319.63 | 8.21% | 34.98% |
| SouthwestChina | 1,403,667,569.50 | 12.53% | 1,102,235,767.21 | 12.01% | 27.35% |
| NorthwestChina | 1,263,707,250.23 | 11.28% | 934,498,810.67 | 10.18% | 35.23% |
| Others | 63,592,576.33 | 0.57% | 56,804,254.46 | 0.62% | 11.95% |
(2)Particularsofsectors,productsorregionsthataccountformorethan10%oftheoperatingrevenueorprofits
□Applicable√NotApplicable
(3)IstheCompany’sgoodssalesincomegreaterthanthatoflaborservices?
□Applicable√NotApplicable
(4)FulfillmentofsignificantsalescontractssignedbytheCompanyasofthereportingperiod
□Applicable√NotApplicable
(5)CompositionofoperatingcostCategoriesofindustry
Unit:RMB
Industryclassification
| Industryclassification | Item | 2020 | 2019 | Year-on-yearIncrease/Decrease | ||
| Amount | Proportionofoperatingcosts | Amount | Proportionofoperatingcosts | |||
| Educationtraining | Costofoperation | 4,513,636,084.16 | 98.82% | 3,765,351,141.48 | 98.76% | 19.87% |
| Others | Costofoperation | 53,690,847.28 | 1.18% | 47,243,245.07 | 1.24% | 13.65% |
StatementNone
(6)Whetherthescopeofconsolidationchangedduringthereportingperiod
√Yes□No
| Fullnameofthesubsidiary | Proportionofshareholding（%） | Reasonforchanges |
| 1.BeijingOffcnFutureEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 2.BeijingOffcnFutureResearchEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 3.ShaanxiOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 4.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 5.WuhuOffcnTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 6.WuhanGuoshangHumanResourceServiceCo.Ltd. | 100.00 | Newestablishment |
| 7.JinanZhangqiuOffcnTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 8.MengziOffcnEducationTrainingCo.Ltd | 100.00 | Newestablishment |
| 9.BeijingOffcnTechnologyDevelopmentCo.Ltd | 100.00 | Newestablishment |
| 10.ShanghaiOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 11.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 12.PingshanOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
13.ShandongOffcnEducationTrainingSchoolCo.Ltd.
| 13.ShandongOffcnEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 14.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
(7)MajorchangesoradjustmentstotheCompany’sbusiness,products,orservicesduringthereportingperiod
□Applicable√NotApplicable
(8)Majorcustomersandmajorsuppliers
Informationaboutmajorcustomers
| TotalRevenuefromthetopfivecustomers(RMB) | 577,382.08 |
| TotalRevenuefromthetopfivecustomersinproportionoftotalrevenue | 0.01% |
| TotalRevenuefromrelatedpartiesinthetopfivecustomersinproportionoftotalrevenue | 0.00% |
Informationaboutthetop5customers
| SN | Customer | Revenue(RMB) | Proportionoftotalrevenue |
| 1 | Customer1 | 130,420.74 | 0.00% |
| 2 | Customer2 | 125,339.81 | 0.00% |
| 3 | Customer3 | 120,388.35 | 0.00% |
| 4 | Customer4 | 101,747.67 | 0.00% |
| 5 | Customer5 | 99,485.51 | 0.00% |
| Total | -- | 577,382.08 | 0.01% |
Otherinformationregardingmajorcustomers
□Applicable√NotApplicableInformationaboutmajorsuppliers
| Totalpurchaseamountofthetopfivesuppliers(RMB) | 262,127,799.83 |
| Totalpurchaseamountofthetopfivesuppliersinproportionoftotalannualpurchaseamount | 5.89% |
| Totalpurchaseamountofrelatedpartiesofthetopfivesuppliersinproportionoftotalannualpurchaseamount | 0.56% |
Informationaboutthetopfivesuppliers
| SN | Supplier | PurchaseAmount(RMB) | ProportionofTotalAnnualPurchaseAmount |
| 1 | Supplier1 | 132,160,279.84 | 2.97% |
| 2 | Supplier2 | 48,423,107.00 | 1.09% |
| 3 | Supplier3 | 31,058,823.53 | 0.70% |
| 4 | Supplier4 | 25,454,889.46 | 0.57% |
| 5 | Supplier5 | 25,030,700.00 | 0.56% |
| Total | -- | 262,127,799.83 | 5.89% |
Otherinformationregardingmajorsuppliers
□Applicable√NotApplicable
3.Expenses
Unit:RMB
2020
| 2020 | 2019 | Year-on-yearincrease/decrease | Descriptiononmajorchanges | |
| Salesexpenses | 1,811,790,113.16 | 1,482,984,426.78 | 22.17% | Asbusinessactivitiesincrease,marketingexpensesandnewbusinessdevelopmentexpensesincrease |
| Generalandadministrativeexpenses | 1,279,869,207.37 | 1,098,471,953.96 | 16.51% | Businessscaleexpands;managementstaffandexpensesincrease |
| Financialexpenses | 430,548,689.17 | 204,308,516.41 | 110.73% | Financialinstitutionshort-termborrowinginterestexpenseandcollectionfeeincrease |
| Researchanddevelopmentexpenses | 1,050,697,333.79 | 697,940,218.36 | 50.54% | Increasedinvestmentinresearchanddevelopmentofcurriculumandtechnology |
4.R&Dinvestment
√Applicable□NotApplicableTheCompany’sR&DinvestmentismainlyusedforthebasicR&DofcurriculumsystemandinfrastructureR&Dofdigitaloperation.Amongthem:thebasicR&Dofcurriculumsystemmainlyprovidesdifferentproductcombinationstoimprovestudents’learningeffect,therebyenhancingthecompany’scorecompetitiveness.InfrastructureR&Dofdigitaloperation,includingsystemandclient-sidedevelopment,willprovidetechnicalsupportforbusinessdigitaltransformation.
| 2020 | 2019 | Variableproportion | |
| NumbersofR&Dstaff | 3,025 | 2,051 | 47.49% |
| ProportionofR&Dstaff | 6.71% | 5.83% | 0.88% |
| R&Dinvestmentamount(RMB) | 1,050,697,333.79 | 697,940,218.36 | 50.54% |
| TheproportionofR&Dinvestmentinrevenue | 9.38% | 7.61% | 1.77% |
| AmountofcapitalizedR&Dinvestment(RMB) | 0.00 | 0.00 | 0.00% |
| TheproportionofCapitalizedR&DinvestmentinR&Dinvestment | 0.00% | 0.00% | 0.00% |
ReasonsforthesignificantchangeoftheproportionoftotalR&Dinvestmentinrevenuecomparedwithlastyear
□Applicable√NotApplicableExplanationforasignificantchangeofR&Dinvestmentcapitalizationrate
□Applicable√NotApplicable
5.Cashflow
Unit:RMB
Item
| Item | 2020 | 2019 | Year-on-yearIncrease/Decrease |
| Sub-totalofcashinflowsfromoperatingactivities | 14,170,455,842.47 | 10,193,190,093.91 | 39.02% |
| Sub-totalofcashoutflowsfromoperatingactivities | 9,287,986,740.56 | 7,719,204,008.72 | 20.32% |
| Netcashflowsfromoperatingactivities | 4,882,469,101.91 | 2,473,986,085.19 | 97.35% |
| Sub-totalofcashinflowsfrominvestingactivities | 41,450,131,085.26 | 27,643,810,373.01 | 49.94% |
| Sub-totalofcashoutflowsfrominvestingactivities | 42,558,772,286.98 | 27,774,917,283.47 | 53.23% |
| Netcashflowsfrominvestingactivities | -1,108,641,201.72 | -131,106,910.46 | -745.60% |
| Sub-totalofcashinflowsfromfinancingactivities | 5,270,000,000.00 | 3,343,698,800.00 | 57.61% |
| Sub-totalofcashoutflowsfromfinancingactivities | 5,818,126,412.65 | 3,610,954,518.47 | 61.12% |
| Netcashflowsfromfinancingactivities | -548,126,412.65 | -267,255,718.47 | -105.09% |
| Netincreaseincashandcashequivalents | 3,225,701,487.54 | 2,075,623,456.26 | 55.41% |
Explanationforthemaininfluencingfactorsofmajoryear-on-yearchangesinrelevantdata
√Applicable□NotApplicable
(1)NetcashflowsfromoperatingactivitiesincreasedbyRMB2,408,483.02thousandyuan,ayear-on-yearincreaseof97.35%.ItwasmainlyduetotheCompany’smainbusinessincomegrowth.
(2)NetcashflowsfrominvestingactivitiesdecreasedbyRMB977,534.29thousandyuan,ayear-on-yeardecreaseof745.60%.Itwasmainlyduetotheincreaseinfixedassetspurchaseandconstruction.
(3)NetcashflowsfromfinancingactivitiesdecreasedbyRMB280,870.69thousandyuan,ayear-on-yeardecreaseof105.09%.Itwasmainlyduetodividendsandrepaymentofshort-termborrowings.Explanationforthesignificantdifferencesbetweenthenetcashflowfromoperatingactivitiesandthenetprofitofthecurrentyearduringthereportingperiod
□Applicable√NotApplicable
SectionIII.Non-corebusinessanalysis
√Applicable□NotApplicable
Unit:RMB
| Amount | Proportionoftotalprofit | Reasons | Sustainableornot | |
| Investmentincome | 256,543,458.65 | 9.64% | Mainlyincludingincomefromfinancialproducts,andinterestontimedeposits. | Yes |
| Gainsandlossesfrom | 20,984,385.76 | 0.79% | AccordingtoFinancialInstrumentsStandards. | Uncertain |
changesinfairvalue
| changesinfairvalue | ||||
| Non-operatingincome | 65,303.00 | 0.00% | Formedduringtheoperatingprocess. | Uncertain |
| Non-operatingexpenses | 674,641.85 | 0.03% | Formedduringtheoperatingprocess. | Uncertain |
SectionIV.AnalysisofAssetsandLiabilities
1.MajorchangesinassetcompositionTheCompanyimplementsthenewrevenuestandardorthenewleasestandardforthefirsttimefrom2020,andadjuststheimplementationoftherelevantitemsinthefinancialstatementatthebeginningoftheyear.Applicable
Unit:RMB
| EndofYear2020 | BeginningofYear2020 | Proportionofincrease/decrease | Majorchanges | |||
| Amount | Proportionoftotalassets | Amount | Proportionoftotalassets | |||
| Monetaryfund | 5,950,395,089.12 | 41.27% | 2,724,335,001.58 | 27.35% | 13.92% | Mainlyduetotheincreaseinreceivedpaymentsduringtheperiodandtheredemptionoffinancialproductsatduedate |
| Accountsreceivable | 21,493,637.66 | 0.15% | 2,721,638.09 | 0.03% | 0.12% | Mainlyduetotheincreaseinrentreceivable |
| Investmentproperties | 668,014,515.82 | 4.63% | 688,475,053.53 | 6.91% | -2.28% | Mainlyduetodepreciationofinvestmentproperties |
| Fixedassets | 1,612,792,592.67 | 11.19% | 672,429,601.44 | 6.75% | 4.44% | Mainlyduetotheincreaseinhousesandbuildings |
| Constructioninprogress | 214,248,125.04 | 1.49% | 653,580,160.32 | 6.56% | -5.07% | Mainlyduetotheconversionofengineeringprojectstofixedassets |
| Short-termborrowings | 3,976,019,329.22 | 27.58% | 2,867,000,000.00 | 28.78% | -1.20% | Mainlyduetotheincreaseintotalassetsgreaterthanthatofshort-termloans |
2.Assetsandliabilitiesmeasuredatfairvalue
√Applicable□NotApplicable
Unit:RMB
Item
| Item | Openingbalance | Gainsandlossesfromthechangesinfairvalueincurrentperiod | Accumulatedchangesinfairvalueattributedtoequity | Provisionforimpairmentinthecurrentperiod | Amountofpurchaseinthecurrentperiod | Amountofsalesinthecurrentperiod | Closingbalance |
| Financialassets | |||||||
| Transactionalfinancialassets(excludingderivativefinancialasset | 1,892,562,787.50 | 20,984,385.76 | 40,533,197,090.00 | 41,255,088,090.00 | 1,191,656,173.26 | ||
| Investmentinotherequityinstruments | 162,800,000.00 | -10,000,000.00 | 152,800,000.00 | ||||
| Subtotaloffinancialassets | 2,055,362,787.50 | 20,984,385.76 | -10,000,000.00 | 40,533,197,090.00 | 41,255,088,090.00 | 1,344,456,173.26 | |
| Total | 2,055,362,787.50 | 20,984,385.76 | -10,000,000.00 | 40,533,197,090.00 | 41,255,088,090.00 | 1,344,456,173.26 | |
| Financialliabilities | 0.00 | 0.00 |
OtherchangesWhethertheCompany’smajorassetsmeasurementattributeshavesignificantchangesduringthereportingperiod
□Yes√No
3.Assetswithrestrictedrightsasoftheendofthereportingperiod
| Item | Bookvalueattheendoftheperiod | Reasonforrestriction |
| Monetaryfund | 358,600.00 | Deposit |
| Debtinvestment | 1,000,000,000.00 | Pledgeloannotyettocompletethereleaseprocedures |
| Total | 1,000,358,600.00 |
AsofDecember31,2020,thenon-currentassetsofRMB500,000,000.00duewithinoneyearhavenotyetcompletedthereleaseprocedures,andtherelevantshort-termloanshavebeenpaidoffinSeptember2020;allofthenon-currentassetsduewithinoneyearhavebeenreleasedinApril2021.
SectionV.AnalysisofInvestments
1.Generalsituation
√Applicable□NotApplicable
Investmentamountinthereporting
period(RMB)
| Investmentamountinthereportingperiod(RMB) | Investmentamountinthesameperiodofthepreviousyear(RMB) | Variation |
| 43,223,486,027.58 | 27,672,278,371.38 | 56.20% |
2.Significantequityinvestmentobtainedduringthereportingperiod
√Applicable□NotApplicable
Unit:RMB
| Nameofinvestee | Liu’anYazhongRealEstateInformationConsultingCo.,Ltd. | Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | Total |
| Corebusiness | Realestateinformationconsultingservices;businessmanagementconsulting;publicrelationsservices;conferenceservices;educationconsultingservices | Realestateinformationconsultingservices;businessconsulting,businessinformationconsulting;corporatemarketingconsulting;educationconsultingservices. | -- |
| Investmentmethod | Acquisition | Acquisition | -- |
| Investmentamount | 72,151,600.00 | 489,131,700.00 | 561,283,300.00 |
| Shareholdingratio | 100.00% | 100.00% | -- |
| Sourcesoffunds | Self-ownedfunds | Self-ownedfunds | -- |
| Partner | None | None | -- |
| Investmentperiod | Longterm | Longterm | -- |
| Producttype | Notapplicable | Notapplicable | -- |
| Progressasofthebalancesheetdate | Notapplicable | Notapplicable | -- |
| Expectedreturn | 0.00 | 0.00 | 0.00 |
| Investmentprofit/lossforthecurrentperiod | 0.00 | 0.00 | 0.00 |
| Whetherinvolvedinlitigation | No | No | -- |
| Dateofdisclosure | Dec.10,2020 | Dec.10,2020 | -- |
| Disclosureindex(ifany) | www.cninfo.com.cn(AnnouncementNumber:2020-048) | www.cninfo.com.cn(AnnouncementNumber:2020-048) | -- |
3.Significantnon-equityinvestmentongoingduringthereportingperiod
√Applicable□NotApplicable
Unit:RMB
| Project | FushunOffcnBuilding | ChangpingLandUseRight | Total |
| Investmentmethod | Self-built | Other | -- |
Whetheritisafixedassetinvestment
| Whetheritisafixedassetinvestment | Yes | Yes | -- |
| Industriesinvolvedininvestmentprojects | Educationaltechnologydevelopment,service,culturalconsulting | Educationaltechnologydevelopment,service,culturalconsulting | -- |
| Amountofinvestmentinthisreportingperiod | 27,267,466.15 | 601,000,000.00 | 628,267,466.15 |
| Accumulatedinvestmentasoftheendofthereportingperiod | 140,287,691.52 | 601,000,000.00 | 741,287,691.52 |
| Sourcesoffunds | Self-ownedfunds | Self-ownedfunds | -- |
| Projectprogress | 42.51% | -- | -- |
| Estimatedearning | 0.00 | 0.00 | 0.00 |
| Accumulatedincomeasoftheendofthereportingperiod | 0.00 | 0.00 | 0.00 |
| Reasonsfornotmeetingtheplannedprogressandexpectedincome | Notcompletedyet | Notcompletedyet | -- |
| Dateofdisclosure(ifany) | — | Dec.3,2020 | -- |
| Disclosureindex(ifany) | — | www.cninfo.com.cn(AnnouncementNo:2020-046) | -- |
4.Financialassetsinvestment
(1)Securitiesinvestment
√Applicable□NotApplicable
Unit:RMB
| Securities | Securitiescode | Securitiesabbreviation | Originalinvestmentcost | Accountingmeasurementmodel | Bookvalueatthebeginningoftheperiod | Profitsandlossesfromchangesinfairvalueforthecurrentperiod | Accumulatedchangesinfairvalueincludedinequity | Purchaseamountforthisperiod | SellingAmountforthisperiod | Profitsandlossesduringthereportingperiod | Bookvalueattheendoftheperiod | Accountingsubjects | Sourcesoffund |
| Funds | 010439 | HuitianfuStable-profitHybrid | 9,999,000.00 | fairvaluemeasurement | 0.00 | 468,953.10 | 0.00 | 9,999,000.00 | 0.00 | 468,953.10 | 10,467,953.10 | Transactionalfinancialassets | Self-ownedfunds |
SecuritiesFundwithone-yearholdingperiod
| SecuritiesFundwithone-yearholdingperiod | ||||||||||||
| Othersecuritiesinvestmentsheldattheendoftheperiod | -- | -- | -- | |||||||||
| Total | 9,999,000.00 | -- | 0.00 | 468,953.10 | 0.00 | 9,999,000.00 | 0.00 | 468,953.10 | 10,467,953.10 | -- | -- | |
| DisclosureDateoftheannouncementofsecuritiesinvestmentapprovalbyboardofdirectors | N/A | |||||||||||
| Disclosuredateoftheannouncementofthesecuritiesinvestmentapprovalbyboardofshareholders(ifany) | N/A | |||||||||||
(2)Derivativesinvestment
□Applicable√NotApplicableThereisnoderivativesinvestmentduringthereportingperiod.
5.Useofraisedfunds
□Applicable√NotApplicableThereisnouseofraisedfundsduringthereportingperiod.
SectionVI.Saleofmajorassetsandequity
1.Salesofmajorassets
□Applicable√NotApplicableThereisnosalesofmajorassetsduringthereportingperiod.
2.Saleofmajorequity
□Applicable√NotApplicable
SectionVII.Analysisofmajorholdingandparticipatingcompanies
√Applicable□NotApplicableMajorsubsidiariesandshareholdingcompaniesthataffecttheCompany’snetprofitbymorethan10%.
Unit:RMB
| Companyname | BeijingOffcnEducationTechnologyCo.,Ltd. |
| Companytype | Subsidiary |
| Majorbusiness | Educationaltechnologyconsulting,technologydevelopment,technicalservices,technologypromotion, |
technologytransfer;educationalconsulting;culturalconsulting;corporatemanagementconsulting;corporateinvestmentconsulting;computertechnologytraining(notfornationaladmissions);publicrelationsservices;hostingexhibitionactivities;organizingculturalandartisticexchangeactivities(excludingperformances);conferenceservices;design,production,agency,releaseofadvertisements;publicationwholesale;publicationretail;operatingtelecommunicationsbusiness;humanresourceservices;radioandtelevisionprogramproduction;engaginginInternetculturalactivities.(Marketentitiesindependentlychooseoperatingprojectsandcarryoutoperatingactivitiesinaccordancewiththelaw;engageinInternetculturalactivities,publicationwholesale,publicationretail,telecommunicationsbusiness,radioandtelevisionprogramproduction,humanresourceservices,andprojectssubjecttoapprovalinaccordancewiththelaw,andafterapprovalbyrelevantdepartments,carryoutoperatingactivitiesinaccordancewiththeapprovedcontent;shallnotengageinoperatingactivitiesthatareprohibitedorrestrictedbythestateandthiscity’sindustrialpolicies.)
| technologytransfer;educationalconsulting;culturalconsulting;corporatemanagementconsulting;corporateinvestmentconsulting;computertechnologytraining(notfornationaladmissions);publicrelationsservices;hostingexhibitionactivities;organizingculturalandartisticexchangeactivities(excludingperformances);conferenceservices;design,production,agency,releaseofadvertisements;publicationwholesale;publicationretail;operatingtelecommunicationsbusiness;humanresourceservices;radioandtelevisionprogramproduction;engaginginInternetculturalactivities.(Marketentitiesindependentlychooseoperatingprojectsandcarryoutoperatingactivitiesinaccordancewiththelaw;engageinInternetculturalactivities,publicationwholesale,publicationretail,telecommunicationsbusiness,radioandtelevisionprogramproduction,humanresourceservices,andprojectssubjecttoapprovalinaccordancewiththelaw,andafterapprovalbyrelevantdepartments,carryoutoperatingactivitiesinaccordancewiththeapprovedcontent;shallnotengageinoperatingactivitiesthatareprohibitedorrestrictedbythestateandthiscity’sindustrialpolicies.) | |
| Registeredcapital | 90,000,000.00 |
| Totalassets | 12,380,846,713.79 |
| Netassets | 3,210,509,466.26 |
| Revenue | 11,183,446,676.00 |
| Operatingprofit | 2,706,453,201.02 |
| Netprofit | 2,339,315,420.51 |
Acquisitionanddisposalofsubsidiariesduringthereportingperiod
√Applicable□NotApplicable
| Companyname | Methodofacquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactontheoverallbusinessnoperationsandperformance |
| BeijingOffcnFutureEducationTechnologyCo.Ltd. | Newestablishment | Nomajorimpact |
| BeijingOffcnFutureResearchEducationTechnologyCo.Ltd. | Newestablishment | Nomajorimpact |
| ShaanxiOffcnEducationTechnologyCo.Ltd. | Newestablishment | Nomajorimpact |
| ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | Newestablishment | Nomajorimpact |
| WuhuOffcnTrainingSchoolCo.Ltd. | Newestablishment | Nomajorimpact |
| WuhanGuoshangHumanResourceServiceCo.Ltd. | Newestablishment | Nomajorimpact |
| JinanZhangqiuOffcnTrainingSchoolCo.Ltd. | Newestablishment | Nomajorimpact |
| MengziOffcnEducationTrainingCo.Ltd. | Newestablishment | Nomajorimpact |
| BeijingOffcnTechnologyDevelopmentCo.Ltd. | Newestablishment | Nomajorimpact |
| ShanghaiOffcnEducationTechnologyCo.Ltd. | Newestablishment | Nomajorimpact |
| GuangzhouOffcnIntelligenceEducationTechnologyCo.Ltd. | Newestablishment | Nomajorimpact |
| PingshanOffcnEducationTechnologyCo.Ltd | Newestablishment | Nomajorimpact |
ShandongOffcnEducationTrainingSchoolCo.Ltd.
| ShandongOffcnEducationTrainingSchoolCo.Ltd. | Newestablishment | Nomajorimpact |
| LanzhouOffcnEducationTrainingSchoolCo.Ltd. | Newestablishment | Nomajorimpact |
MajorholdingandparticipatingcompaniesIn2020,TheCompany’swholly-ownedsubsidiary,BeijingOffcnEducationTechnologyCo.,Ltd.achievedoperatingrevenueofRMB11,183,446.67thousandyuan,representinganincreaseof22.13%ascomparedtothecorrespondingperiodoflastyear;andnetprofitsamountedtoRMB2,339,315.42thousandyuan,increasingby
28.30%ascomparedtothecorrespondingperiodoflastyear.Thesteadyandrapidgrowthinoperatingincomeandprofitsattributestothecontinuousincreaseinthenumberoftrainees,theenhancementofthecompany’sleadingpositioninthemarketandtheadvantageintheeconomiesofscale.Besides,theCompanyhasbeenpromotingitsresearchcapabilitiesandmanagementefficiency.Asmoreandmoretechnologyisimplementedintheproductsandservices,theCompany’soverallcomprehensiveadvantagesbothinbrandandplatformbecomesmoreapparent.
SectionVIII.StructuredentitiescontrolledbytheCompany
□Applicable√NotApplicable
SectionIX.ForecastoftheCompany’sfuturedevelopment
1.Trendsoftheindustry’sfuturedevelopment
(1)Thestatusofvocationaleducationineducationsystemisincreasing.Foralongtime,China’seducationsystemhasbeendominatedbycurriculaeducationandthefoundationofvocationaleducationisrelativelyweak.Thereisaseriousshortageofhigh-endskilledtalentssupplyandinthefuture,theneedformore“skilledcraftsmen”and“greatbuilders”willremainurgent.Inrecentyears,China’sindustrialstructureisundergoingtransformationandupgrading.Thegovernmenthasclearlyproposedthatgreateffortswillbemadetopromotethedevelopmentofemergingindustrieswithstrategicimportance,andtheproportionofmodernserviceindustrywillbefurtherincreased.Withrapidchangesintheindustrialstructure,therequirementsfromenterprisesfortheprofessionalcompetenceandcomprehensivequalityoftechnicalpersonnelhavegraduallyincreased.Newrequirementsfortheirpracticalabilityhavealsobeenputforward.Traditionalacademiceducationcan’tfullymeetthenewrequirements.Besides,thegovernmentcontinuestoenhancetheeffortstodevelopvocationaleducation.InaccordancewithResolutionofChinaStateCouncilonVocationalEducationDevelopmentpublishedin2005,andNationalVocationalEducationReformandImplementationPlanandChina’sEducationModernization2035Planpublishedin2019,thestatusofvocationaleducationineducationsystemwillbeincreasinglypromotedfromboththepolicyandinstitutionallevels.
(2)Thecontinuousincreaseinthenumberofcollegegraduatesisanimportantindicatoroftheemploymentsituation.Usually,afastergrowingeconomywillbringahigherlevelofemployment.Inrecentyears,economicgrowthhassloweddown,butthenumberofuniversitygraduateshascontinuedtogrow.Itwillreach9.09millionthisyear,settinganewhistoricalrecord.Collegegraduatesaccountformorethanhalfoftheannualdemandforover15millionnewjobs,andthebonusperiodfortheexportofcheaprurallaborhascometoanend.Theexpansionofuniversityenrollmenthasobviouslyanddirectlyacceleratedthearrivaloftheturningpoint.Thelaborshortageoffarmerlaborerscoexistswiththedifficultemploymentofcollegegraduates.Thedemandfortrainingforpublicservicerecruitmentexaminationcontinuestorise.Inaddition,aimingtomaintainsustainedeconomicgrowth,realizetransformationandupgrading,andovercomethe“middle-incometrap”,itisurgentlynecessarytocarryoutindustrialupgradingofmiddleandhigh-endvocationaleducationinordertoimprovethevocationalskillsandprofessionalliteracyofknowledge-basedemployees.
(3)Theseriousshortageofhigh-qualitysupplyisthemaincontradictionthatrestrictsthedevelopmentofthevocationaleducationindustry.Atpresent,thefoundationofvocationaleducationisstillweak.Duetotheextremelylowconcentrationoftheindustryandthelimitednumberoflargevocationaleducationinstitutesandenterprises,thesupplyofhigh-qualityvocationaleducationisseriouslyinsufficient.Withtheimprovementofindustryconcentrationandthecontinuousdevelopmentofleadingvocationaleducationenterprises,corebusinesselementssuchasR&D,managementandmarketingofvocationaleducationwillgraduallybreakthroughtheoriginalboundariesoftheindustry,createhigh-qualityandcost-effectivesupplies,drivedemand-sidevolumewithsupply-sideinnovationandpushtheindustryintoanewtrackofrapiddevelopment.
(4)Theurbanizationwavewillpromotethecontinuousimprovementofpublicserviceandthenumberofemployeesofthepublicservicesectorwillcontinuetoexpand.Theprocessofurbanizationisakeydriverofthelong-termimpactonChina’semploymentmarketgrowth.Inthepast5years,theurbanizationratehasincreasedfrom57.35%toover60%.Thedemandfornewjobsisabout75millionandthenewjobsinurbanareasexceed60million.Urbanizationwillexpandthepublicfinancialexpenditureandthenumberofemployeesinthepublicservicesector.China’surbanizationrateremainsinahigh-speedgrowthrangeof30%to70%.Itislikelytocontinuetodevelopfornearly20yearstoachieveanurbanizationrateofmorethan80%indevelopedcountries.Meanwhile,continuousurbanizationmayalsoleadtomoreseriouslyinadequatepublicservicesupplyincities,whichwillalsoimposehigherrequirementsonthequalityofpublicservices.
Additionally,theurbanizationrateoftheregisteredpopulationismuchlowerthanthatoftheresidentpopulation,whichisonly44.38%,andthenumberofpopulationseparatingfromtheirhouseholdregisterinChinareaches286million.TheproblemofunequalpublicservicesbetweentheregisteredpopulationandmigrantsiscommonincitiesandtheStateCouncilhasissuedaplanontheequalizationofbasicpublicservices.Theequalizationofbasicpublicservicesisanotherhugedrivingforcefortheemploymentexpansionofthepublicsectorinadditiontotheupgradingofpublicserviceconsumption.Comparedwithpublicproductssuchasinfrastructure,publicservicesarelabor-intensiveinputs,especiallythebasicpublicservicesoflocalgovernments.Ithiresahugenumberofemployeeswhileimprovingpublicservicecapabilities.China’slong-termgoalfor2035andthemaingoalofeconomicandsocialdevelopmentduringthe“14thFive-YearPlan”periodrequireasignificantincreaseinthelevelofequalizationofpublicservices.AccordingtotheresearchbytheNationalAcademyofGovernance,theemployedpopulationinthepublicsectorindevelopedcountriesaccountsforabout10%to20%oftheworkforce,,whichisevenhigherthan20%inCanadaandHongKong.However,theemployedpopulationinthecurrentpublicsectoronlyaccountsfor5%inChina.Withthedeepeningofurbanization,theproportionofemployedpopulationinChina’spublicsectorwillgraduallyincrease;andthemarketoftrainingforpublicservicerecruitmentexaminationwillalsomaintainalong-termsteadygrowth,whichhasbeenpartiallyprovedbytheastonishingdemandsonthetrainingforteacherrecruitmentexaminationandrecruitmentexaminationinmedicaltreatmentandpublichealth.
2.StrategicdevelopmentdirectionoftheCompany
(1)MaintainheavyR&Dinvestmentandstrengthentheadvantagesoftheleadingvocationaleducationinnovationplatform.R&Dshallalwaysberegardedasthefundamentaldrivingforceforallundertakings.TheCompanywillresolutelycarryoutlong--termandheavyinvestmentinR&DandattractoutstandingtalentstoparticipateinR&D.WithR&D,theCompanywilldriveinnovationfromthebottomlevel,makesystematicimprovement,breakthroughindustryboundaries,andestablishcompetitionbarriers,soastoperfectitscurrentmajorbusinesses,expanditsnewbusinesses,andremaintobealeadingvocationaleducationinnovationplatform.
(2)DeepintegrationoftechnologyandbusinessfordigitaltransformationofoperationsYearsofaccumulationofindependentITdevelopmentistheCompany’svaluablewealth,enablingtheCompanytocalmlycopewiththenewopportunitiesandchallengesbroughtbythedevelopmentofscienceandtechnology.TheCompanyisopentonewtechnologies,butdoesnotblindlyfollowthem.TheCompanyalwaysrespectstheessentiallawofeducationandpursuesthedeepintegrationoftechnologyandbusiness.TheCompanywillconstantlyincreaseinvestmentintechnologyinfrastructureandtechnicalteamsandenhanceresponsivenessoftechnologythroughtechnologicalmiddleplatformandagiledevelopmenttoexpanddevelopmentoutput.
Onthisbasis,theCompanywillcontinuetoacceleratedigitaltransformationofoperationsandfullyintegratetheproductivityoftechnologywithoperationsystemtofacilitatebusinessinnovation,andimprovetheintelligentlevelofoperationandteaching,thussupportingawiderandlargerscaleofverticalintegratedfastresponsecapability,continuouslyincreasingtheoutputlevelofthehigh-growthenterpriseplatforms,andimprovingthesustainabilityofrapidgrowth.
(3)Accumulatecomprehensivevocationaltrainingservicecapabilitiesandexpandthemarketofmulti-categoriesofvocationaleducationSmallanddispersedvocationaleducationcannotmeettheneedsofeconomicdevelopmentandtransformation,norcanitmeetthecareerdevelopmentneedsfromknowledge-basedemploymentgroups.Italsoconfinesthescaleofvocationaleducationenterprisesandtheirabilitytoprovidehigh-qualityproductsandservices.Afteryearsofaccumulationandrecentbreakthroughs,theCompanyhasinitiallyobtainedthecapacitytoprovidemulti-categoriesofvocationaleducationservices,andachievedconsiderablerevenueandrapidperformancegrowthinmanycategories.TheCompanywillcontinuetoexplorenewservicecategoriescopyandexportcorecapabilities,strivetoenlargeonecategoryonceenteringit,andexpandthemulti-categorymarketofvocationaleducationwithgreatestpatience.
(4)ContinuechanneldeepeningandchannelinnovationTheCompanystarteditsbusinessinresponsetothescatteredneedsinthenationalmarket.Fromtheinitialperiod,itexpandeditsoperationstothenationalmarket.Formorethanadecade,thechannelnetworkhascontinuedtogrowanddeepen,andthereisstillbroadspace.Next,theCompany’schannelfocuswillfurthersinkfromtheheadquarterandprovincialcitiestoprefecture-levelcitiesandcounties.Atthesametime,channelstouniversitieswillbeexpandedandinnovated.
(5)Undertakethemissionofthetimes,helpmoreemployeesdevelop,andearnestlyfulfillcorporatesocialresponsibility“Begood&Doright”istheCompany’scorevalue.TheCompanyiscommittedto“becominganeducationenterprisethatenablesitsemployeestorapidlygrowandcontributestohumanandsocialdevelopment.”Efficientoperationandsuccessfulmarketingarethefoundationforthiscommitment.Atthesametime,theCompanywillcontinueitsmeticuloustraditionoforganizationalconstruction,combinedwiththestronghelpofPartybuilding,continuouslyexpandthesocialvalueofcorporateservices,especiallyintheimportantpeople’slivelihoodandeconomicaffairsincludingtheemploymentofcollegegraduates,andtheimprovementoftheprofessionalcompetenceofknowledge-basedgroupsinthecentralandwesternregionsandlessdevelopedareas,andgiveplaytotheuniquevalueofaleadingvocationaleducationenterprise.
3.MajorbusinessplanoftheCompanyfor2021
(1)Strengthenmulti-categorycoordinationandrefinedoperations,andachieveanoverallimprovementintheoperatingefficiencyoftherecruitmentsector.Withtheexpansionoftheoverallscaleandthefurtherenrichmentofthecategorystructure,ontheonehand,abroaderspaceformulti-categorycollaborativeproductinnovationhasbeenformed,andontheotherhand,thecapacityexpansionandchannelsinkingagainstthetrendinrecentyearshavealsopostedmorechallengestowardsrefinedoperations.Aftertheoverallbusinessenvironmentreturnstonormal,theCompanywillcontinuetoactivelyexpandthemarketscalewhilestrengtheningmulti-categorycoordinationandrefinedoperationstocomprehensivelyimprovetheoperatingefficiencyoftherecruitmentsector.
(2)Enhancetheleadingadvantageofthepostgraduateentranceexaminationbusiness,andcontinuetopromotethe“take-offaction”fornewbusiness.In2020,theCompany’spostgraduateentranceexaminationtrainingbusinessscaleachievedaleadingposition.Thenewmodelofface-to-faceinstructioninsmallclass,professionalR&Dandlarge-scalefull-timeteachershasbeenverifiedsuccessfullyandbecomesanewindustrystandard.Innovativebusinessessuchasonlineschoolsforpostgraduateentranceexaminationshaveachievedbreakthroughgrowth.AftertheoutbreakofCovid-19,theexpansionofpostgraduateenrollmenthasbecomeanimportantmeasuretostabilizeemployment.Thenumberofpostgraduateenrollmenthasexceeded1million,andthenumberofapplicantshasalsorapidlyincreasedto3.77million.TheCompanywillfocusonlarge-scaleR&Dandfixed-pointchannelsforcollegesanduniversities,furtherdevelopthebusinessofpostgraduateentranceexaminationtraining,andenhanceitsleadingadvantagesofpostgraduateentranceexaminationtraining.Around2019,theCompanycompletedaroundofintensiveresourceinvestmentinactivenewbusiness,especiallyinkeycategoriessuchaspostgraduateentranceexamination,medicalworkersrecruitment,andIT,achievingaleadingpositionincoreteachingandresearchresources.Inaddition,startingfromthesecondhalfof2019,theCompanyhastakena“takeoffaction”forthenewbusinesssectors,givingmoremanagementresourcestothenewbusinessfromthetoplevel.TheoutbreakofCovid-19hasstrengthenedtheCompany’sdeterminationtoexpandoperationsacrosssectors,andalsoverifiedtherationalityofthepreviousstrengtheningonthemarketdevelopmentofrecruitmentsectors.Thetargetingactionshavethusbeenmorevigorouslyandcontinuouslydeepened.Atthesametime,withthegrowthandmaturityofreservetalents,thecurrentperformanceofrelatedcategoriesimprovedand,moreimportantly,theoveralllayoutadvantageshavebeenenhanced,whichisconducivetotherealizationofthemediumandlong-termsector’srotatinggrowthtrend.
（3）Strengthenmanagementinnovation,seekthepotentialofdigitaloperationatahigherlevel,andenlargethevalueofthegrowthengineofOMObusiness.Sustainedscaleexpansionmustbecarriedouttogetherwitheffectivemanagementinnovation,andtheimprovementofoperatingefficiencydemandsstrengtheningofmanagementinnovation.Rapidcategory
expansion,wide-spreadoutlets,andintensiveknowledge-basedstaffhavecontinuouslyputforwardnewrequirementsformanagementinnovation.First-linebusinessoutletsandheadquarterscommandcentersarethekeypointsofmanagementinnovation.In2021,theCompanywillfurtherdeepentheintegrationofdigitalinfrastructure,excellentteamexecutionandverticalintegratedrapidresponsesystem,strengthentheenterpriseplatform,andimproveoperatingefficiency.Atthesametime,basedonthedigitalpenetrationofthemaincourseproductsin2020,theCompanywillfurtherexpandtheleadingadvantagesofonlineandofflineintegratedcourses,sothatmorestudentscanobtaintheconvenienceofonlinelearningandtheeffectivenessofface-to-facelearningatthesametime,andrapidlyincreasethenumberoflearnersandtherateofparticipation.
4.PossibleRisksandResponses
(1)PolicyRisksTheboomofthevocationaleducationindustryhasahighcorrelationwiththepolicyenvironment,andiseasilyaffectedbythevocationaleducationpolicy.Inrecentyears,inordertosupportthedevelopmentofthevocationaleducationindustry,thestatehassuccessivelyissuedanumberofindustrysupportandencouragementpolicies.However,itwilltaketimeforthecorrespondingsupportinglaws,regulationsandrulestobefullyimplemented,andthereisstillacertaindegreeofuncertaintyinthefuture.Iftherearemajorchangesandadjustmentstorelevantlaws,regulationsorindustrialpoliciesinthefuture,itmayhaveanimpactonthedevelopmenttrendofthevocationaleducationindustry,whichmayaffecttheCompany’sfuturebusinessdevelopmentandperformance.Inaddition,theCompanyhasmanybranchesandwidedistributionoftrainingvenues.Itisnotruledoutthatinthefuture,relevantregulatoryauthoritiesofprovinces,autonomousregionsandmunicipalitieswillissuemorestringentregulationsforthelocaleducationandtrainingindustry,whichmayaffecttheCompany’soperationsintheregion.Riskresponse:EachbranchoftheCompanyhasestablishedatrackingresearchpolicyteamtoconductin-depthanalysisofvariouspoliciesthathavebeenissued.Atthesametime,theCompany’sdeepITindependentdevelopmentandaccumulatedstrengthandeffectivedigitaltransformationofoperationssimultaneouslyensuretheefficiencyofinformationfeedback.ThroughtheupgradingandtransformingofbasicsystemssuchasERP,CRM,andteachingplatforms,itispossibletoobtain,perceiveandpredictthedirectionandtrendofrelevantpolicychangesinvariousplacesinatimelymanner,makearrangementsandadjustmentsinadvance,avoidrelevantpolicyrisks,andtakeadvantageofindustrypoliciestohelptheCompany’sbusinessdevelopment.
(2)IncreasedMarketCompetitionRisksTheoverallscaleofthevocationaleducationmarketislarge.Themarketdemandiswidelydispersedthroughoutthecountry,andtheinitialinvestmentscaleisrelativelysmall.Forthesereasons,alargenumberoflocalsmallandmedium-sizedtraininginstitutionsarespawned;thehomogeneityofproductsisserious,andtheviciouscompetitionintheindustryiswidespread.Moreover,giventothefutureincreaseoffamilyincome,wewillseegreaterimportanceattachedtohigh-qualityeducationalresourcesandcontinuedboomingoftheindustry,which
willresultinmorecapitalinflowintotheindustryandevermoreintensecompetition.HowtoeffectivelycopewithcompetitionwithintheindustryanditsimpactonemerginginstitutionsisachallengefacedbytheCompanyforcomprehensivedevelopmentofthevocationaleducationindustry.Riskresponse:Inresponsetotheaboverisks,theCompanywillcontinuetoinvestheavilyinresearchanddevelopment,technologyinfrastructureandtechnicalteam,aswellasintegratetheproductivityoftechnologyintothebusinesssystemtopromotebusinessinnovation.Atthesametime,theCompanywillcontinuetoexplorenewnichemarkets,pioneerafull-categorymarketofmediumandhigh-endvocationaleducation,andfurtherenhancethecompany’scorecompetitivenessintheindustry.Aftermorethan20yearsofstrenuousefforts,OffcnEducationhasestablishedaninnovativeteachingandresearchsystem,wideofflinechannelsandonlinedistribution;thusitwillacquireasignificantedgeinthefuturemarketcompetition.
(3)RiskofcorebraindrainAsavocationaleducationenterprisewithhighlyintensiveknowledge-basedstaff,theCompanyregardstalentsasitsoneofcoreresources.Braindrainisacommonriskfacedbytheeducationandtrainingindustry.ThelossoftheCompany’scoremanagement,R&DtalentteamandbackboneteachersmayadverselyaffecttheCompany’slong-termstabledevelopment.Riskresponse:Ontheonehand,theCompanyhasattractedalargenumberofhigh-qualitytalentswithitsbrandadvantages,whichhascontinuouslyinjectednewforcesintotheCompany.Atthesametime,sincetheCompanywasfounded,ithastaken“beingakindperson”asitscorevalueandadvocatedselflessnessandaltruism.ThisubiquitousandendlesscorporatecultureallowstheCompanytomaintainstrongorganizationalcohesion.Ontheotherhand,theCompanyattachesimportancetothebasicrightsandinterestsofemployees,completesafairandtransparentperformanceevaluationsystem,providesemployeeswithdiversifiedcompensationandincentivepaths,paysattentiontothepersonalgrowthofemployees,suppliesemployeeswithsustainabledevelopmentopportunitiesandgrowthspace,andreducestheriskofcorebraindrain.
(4)ManagementRisksWiththecontinuousexpansionoftheCompany’sbusinesscategoriesandbranches,theCompanymustfacetheriskofmismatchbetweenexpansionandmanagementcapabilities.Costssuchasvenueleasingandlaborhavecontinuedtoincrease,andthepursuitofrapiddevelopmenthasledtoadeclineinthecurrentprofitlevelandprofitmargin.Atthesametime,thesuddenoutbreakofthepandemichasalsoposednewchallengestotheCompany’soperationandmanagement.Riskresponse:Inviewoftheaboverisks,theCompanywillcontinuetooptimizeitsmanagementsystemofverticalintegratedfastresponse,enhancethecoordinationbetweenlarge-scaleknowledgeemployees,improvemanagementandoperationefficiency,upgradehumanresourcesstructure,andmoderatethebusinessexpansionstrategyoftheCompany.TheCompanyattachesimportancetotalentreserves,makesarrangementsinadvance,andpromotestherealizationofgrowthexpectationsfornewcategories.Inthefaceofthispandemic,the
Companyhasrealizedthedeepintegrationofonlineandofflineproductswiththehelpofdigitaloperatingresultsanddeepresearchanddevelopmentcapabilities,andeffectivelyrespondedtotheimpactofthepandemic.Inaddition,inrecentyears,theCompanyhasalsocontinuedtoinvestintheconstructionofalarge-scaleone-stopbaseforeating,livingandlearning,promotetherealizationoflarge-scalefactory-styleoperationsattheteachingsite,andfurtherimprovethequalityofserviceswhilereducingoperatingcosts.
SectionX.Receptionofresearch,communication,interviewandotheractivities
1.Registrationformforreceptionofresearch,communication,interviewandotheractivitiesduringthereportingperiod.
□Applicable√NotApplicableThereisnoreceptionofresearch,communication,interviewandotheractivitiesduringthereportingperiod.
ChapterV.SignificantEventsSectionI.TheCompany’scommonstockprofitdistributionandcapitalizationofcapitalreserveDescriptionofthecommonstockprofitdistributionpolicyduringthereportingperiod,especiallytheformulation,implementationoradjustmentofthecashdividendpolicy
√ApplicableNotapplicableTheCompanyheldthe2019AnnualGeneralMeetingofShareholdersonMarch30,2020,reviewedandapprovedtheProposalontheCompany's2019ProfitDistribution.Thespecificcontentoftheprofitdistributionplanis:basedontheCompany’stotalsharecapitalof6,167,399,389shares,cashdividendsofRMB2.40(taxincluded)per10shareswouldbedistributedtoallshareholderswiththetotalcashdividendsofRMB1,480,175,853.36.Nobonusshareswouldbegiven,noranycapitalreservewouldbeconvertedintosharecapital.TheprofitdistributionplanhadbeenimplementedonMay20,2020.
Specialdescriptionofcashdividendpolicy
| Specialdescriptionofcashdividendpolicy | |
| WhetheritmeetstherequirementsoftheCompany’sArticlesofCorporationortherequirementsoftheresolutionsofthegeneralmeetingofshareholders: | Yes |
| Whetherthedividendstandardandratioareclear: | Yes |
| Whethertherelevantdecision-makingproceduresandmechanismsarecomplete: | Yes |
| Whetherindependentdirectorshaveperformedtheirdutiesandplayedtheirdueroles: | Yes |
| Whetherminorityshareholdershaveopportunitiestofullyexpresstheiropinionsanddemands,andwhethertheirlegitimaterightsandinterestsareadequatelyprotected: | Yes |
| Whethertheconditionsandproceduresofadjustmentorchangeofcashdividendpolicyarecompliantandtransparent: | Notapplicable |
ThedescriptionoftheCompany’srecent3-year(includingthisreportingperiod)commonstockprofitdistributionproposalandproposalforcapitalizationofcapitalreserve
1.The2020OffcnEduprofitdistributionproposal
TheCompany'sboardofdirectorsonApril28,2021reviewedandapprovedtheProposalontheCompany's2020ProfitDistribution:
theCompanydoesnotplantodistributeprofitin2020,norwillitincreasesharecapitalbyconvertingcapitalreserveordistributeprofitsinotherforms.ThisplanstillneedstobereviewedandapprovedbytheCompany's2020annualgeneralmeetingofshareholders.
2.The2019OffcnEduprofitdistributionplan
BasedontheCompany’stotalsharecapitalof6,167,399,389sharesasofDecember31,2019,theCompanydistributedcashdividendsofRMB2.40(taxincluded)per10sharestoallshareholderswiththetotalcashdividendsofRMB1,480,175,853.36.Nobonussharesweregiven,noranycapitalreservewasconvertedtosharecapital.Theprofitdistributionplanhasbeenimplemented.
3.The2018OffcnEduprofitdistributionplan
BasedontheCompany’stotalsharecapitalof6,167,399,389shares,theCompanydistributedcashdividendsofRMB2.30(taxincluded)per10sharestoallshareholderswithtotalcashdividendsofRMB1,418,501,859.47.Nobonussharesweregiven,noranycapitalreservewasconverted.tosharecapital.Theprofitdistributionplanhasbeenimplemented.TheChartoftheCompany’scashdividendsofordinaryshareswithin3years(includingthisreportingperiod)
Unit:RMB
Year
| Year | Cashdividendamount(taxincluded) | NetprofitattributabletoordinaryshareholdersofthelistedCompanyintheannualconsolidatedstatementofdividends | TheratiooftheamountofcashdividendstothenetprofitattributabletoordinaryshareholdersofthelistedCompanyintheconsolidatedstatement | Theamountofcashdividendsdistributedinotherways(suchassharerepurchas) | TheproportionoftheamountofcashdividendsdistributedbyothermeanstothenetprofitattributabletotheordinaryshareholdersofthelistedCompanyintheconsolidatedstatement | Totalcashdividends(includingothermethods) | Theratiooftotalcashdividends(includingothermethods)tothenetprofitattributabletoordinaryshareholdersofthelistedCompanyintheconsolidatedstatement |
| 2020 | 0.00 | 2,304,357,742.74 | 0.00% | 0.00 | 0.00% | 0.00 | 0.00% |
| 2019 | 1,480,175,853.36 | 1,804,548,688.01 | 82.02% | 0.00 | 0.00% | 1,480,175,853.36 | 82.02% |
| 2018 | 1,418,501,859.47 | 1,152,887,416.22 | 123.04% | 0.00 | 0.00% | 1,418,501,859.47 | 123.04% |
TheCompanywasprofitableduringthereportingperiodandtheparentcompany’sprofitavailablefordistributiontocommonshareholderswaspositivebutdidnotproposeacashdividenddistributionplanforcommonshareholders
√ApplicableNotapplicable
ReasonsfortheCompany,whichwasprofitableduringthereportingperiodandtheparentcompany’sprofitavailablefordistributiontocommonshareholderswaspositivebutdidnotproposeacashdividenddistributionplanforcommonshareholderrs
| ReasonsfortheCompany,whichwasprofitableduringthereportingperiodandtheparentcompany’sprofitavailablefordistributiontocommonshareholderswaspositivebutdidnotproposeacashdividenddistributionplanforcommonshareholderrs | ThepurposeanduseoftheCompany’sundistributedprofits |
| 1.AccordingtoArticle18oftheAdministrativeMeasuresforSecuritiesIssuanceandUnderwriting,“Inthecasethatalistedcompanyintendstoissuesecurities,ifthereisasituationwheretheprofitdistributionplanortheplanforconvertingcapitalreservetosharecapitalhasnotbeensubmittedtothegeneralmeetingofshareholdersforvoting,orhasbeenapprovedbythegeneralmeetingofshareholdersbuthasnotbeenimplemented,thelistedcompanyshallissuesecuritiesaftertheplansareimplemented.Priortotheimplementationoftherelevantplan,theleadunderwritershallnotunderwritethesecuritiesissuedbythelistedcompany.”GiventhattheCompany’snon-publicissuanceofstocksisproceedinginanorderlymanner,theimplementationofprofitdistributionmayconflictwiththetimewindowofthisnon-publicissuanceofstocks.InordertoensurethesmoothimplementationoftheCompany’snon-publicissuanceofshares,takingintoaccounttheCompany’scurrentandfutureinvestmentcapitalneeds,operatingcapitalcirculationandothermajorfundingarrangements,theCompanydoesnotplantodistributecashdividendsfortheyearof2020,norwillitconductcapitalreserveconversiontosharecapitalordistributeprofitsinotherforms.2.InDecember2020,theCompanyobtainedtherighttouseastate-ownedlandinQiliquNanbeiVillage,ShaheTown,ChangpingDistrict,BeijingatabidofRMB3.01billion,andplanstobuildtheCompany'sonlinetechnologyR&Dcenter,OMOeducationdemonstrationcenter,R&Dandteachingpersonnelintegratedtrainingcenter,nationalmarketverticalintegratedresponsecommandcenterandinnovationeducationheadquartersontheland(hereinafterreferredtoasthe“ChangpingProject”).TheretainedundistributedprofitswillbemainlyusedfortheconstructionoftheChangpingprojectandreplenishingworkingcapital.TheCompanyregardstheundistributedprofitsaccumulatedovertheyearsaspartoftheCompany'sbusinessdevelopmentfunds,andcontinuestoinvestintheCompany'sdailyoperations.TheCompany’sundistributedprofitsareusedinaccordancewiththeCompany’sactualconditionsandtheinterestsofallshareholdersoftheCompany. | TheCompanyattachesgreatimportancetoshareholderreturnsandactivelysharestheCompany’sgrowthandoperatingresultswithallshareholders.In2018and2019,theCompanyhasdistributedatotalofRMB2.90billionincashdividendstoshareholders,accountingfor98.01%ofthenetprofitattributabletoshareholdersintheconsolidatedstatement.InviewofthelargeamountofconstructionfundsrequiredfortheChangpingproject,theCompany’sretainedearningsaremainlyusedfortheconstructionoftheChangpingprojectandreplenishingworkingcapital,ensuringtheCompany’sstableandstrategicdevelopment,andfurtherimprovingtheCompany’soverallstrengthandlong-termreturnstoshareholders. |
SectionII.ProfitdistributionandcapitalizationofcapitalreserveduringthereportingperiodApplicable√NotapplicableTheCompanyplanstonotdistributecashdividends,notgivingbonusshares,andnotconvertingcapitalreserveintosharecapitalforthisyear.SectionIII.Fulfillmentofcommitments
1.CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirers,theCompanyandotherrelevantpartieshavefulfilledduringthereportingperiodandhavenotfulfilledasoftheendofthereportingperiod
√ApplicableNotapplicable
Importantcommitmentsmadebythepartiesinvolvedinthemajorassetsrestructuringareasfollows:
Commitment
Party
| CommitmentParty | CommitmentType | Maincontentsofcommitment | Commitmenttime | Commitmentperiod | Performance |
| LuZhongfang,LiYongxin,WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an | Performancecommitmentandcompensationarrangement | 1.Theprofitforecastandcompensationperiodsaretheyearsof2018,2019and2020.2.Performancecommitment:Thecompensationobligorsconfirmandpromisethatthenetprofitsattributabletotheshareholdersoftheparentcompanyafterdeductingnon-recurringprofitsandlossesundertheconsolidatedstatementsofOffcnLtd.shallnotbelessthanRMB930.00million,RMB1.30billionandRMB1.65billioninyearsof2018,2019and2020respectively.3.ThepartiesagreethatthecertifiedpublicaccountantsemployedbyYaxiaAutoshallreviewtheactualnetprofitsofOffcnLtd.aftertheendofeachofthethreefiscalyears.ThedifferencebetweentheactualnetprofitsofOffcnLtd.andthenetprofitscommittedbythecompensationobligorsshallbereviewedandaspecialauditreportshallbeissued.Attheendofthethirdfiscalyear,anauditinstitutionwithqualificationsforexecutingsecuritiesandfuturesengagedbyYaxiaAutowillconductanimpairmenttestonOffcnLtd.andissueanimpairmenttestreportwithin90daysafterthecertifiedpublicaccountantissuesaspecialauditreport.4.Compensationmeasures:(1)IfthecertifiedpublicaccountantconfirmsthattheactualnetprofitsaccumulatedbyOffcnLtd.failstomeettheaccumulatedcommittednetprofitsasoftheendofeachofthreefiscalyears,eachcompensationobligorshallassumethecompensationobligationaccordingtotheproportionofthesharestothetotalsharesofOffcnLtd.heldbyallthecompensationobligorsbeforethe | May,42018 | Theyearsof2018,2019,2020 | Performancecommitmentsoftheyear2018,2019and2020havebeenfulfilled. |
transaction.Allcompensationobligorsaregivenprioritytoconductcompensationwithshares.Whenthetotalamountofsharecompensationreaches90%ofthetotalnumberofsharesissuedforpurchasingassets,allcompensationobligorsshallconductcompensationincash.Theformulaforcalculatingtheamountofcompensationpayablebytheobligorsinthecurrentperiodisasfollows:compensationamountforthecurrentperiod=(accumulatedcommittednetprofitsasoftheendofthecurrentperiod-accumulatednetprofitsasoftheendofthecurrentperiod)÷thesumofcommittednetprofitsofyearswithinthecompensationperiod×thetransactionpriceofOffcnLtd.inthistransaction-accumulatedcompensatedamount.Intheapplicationoftheaboveformulas,principlesshouldbeappliedasfollows:
①“Asoftheendofthecurrentperiod”referstotheperiodstartingfrom2018andendingattheendofthecurrentperiod;②“thesumofcommittednetprofits”referstothesumofcommittednetprofitsin2018,2019and2020,thatisRMB3.88billion.Numberofsharestobecompensatedbytheobligorsinthecurrentperiod=Obligor'spayablecompensationamountinthecurrentperiod÷theissuepricepershareofthesharesissuedforpurchasingassets.Whenthenumberofsharesforcompensationisnotawholenumber,itshallbehandledinaccordancewiththeroundingprinciple.
(2)Theupperlimitofcompensationobligationforthecompensationobligorsinthecompensationcommitmentsandend-of-periodimpairmentcompensationofOffcnLtd.shallnotexceedthetotaltransactionconsiderationobtainedbyallshareholdersofOffcnLtd.inthistransaction.Whenthecalculatedcompensableamountislessthanorequalto0,thevalueshallbetakenas0,thatis,theamountorthesharesthathavebeencompensatedshallnotberedeemed.
(3)IfYaxiaAutoimplementsex-rightsandex-dividends,suchasdistributingbonusshares,convertingcapitalreservetosharecapitalorallotmentwithintheperiodofprofitcompensation,thenumberofsharestobecompensatedshallbeadjustedaccordinglyasfollows:thenumberofsharestobecompensatedbytheobligor(afteradjustment)=thenumberofsharestobecompensatedbytheobligor×(1+theproportionofbonussharesorsharesincreasedbyconvertedcapitalreserve).
(4)IfYaxiaAutodistributescashdividendsduringtheperiodofprofitcompensation,thecashdividendsshallbereturnedaccordingly.Thecalculationformulais:returnedamountofthecompensationobligor=totalcashdividendsreceivedbythecompensationobligor(beforetax)÷thenumberofsharesobtainedbythecompensationobligorinthistransaction(includingsharesacquiredinthistransactionandsharesnewlyincreasedbydistributedbonussharesorsharesconvertedfromcapitalreserve)×thenumberofobligor’scompensationshares.
5.Impairmenttestandcompensationaftertheperformancecommitmentperiodexpires:
(1)Attheendoftheperformancecommitmentperiod,theauditinstitutionwithqualificationsforexecutingsecuritiesandfuturesengagedbyYaxiaAutowillperformanimpairmenttestonexchange-inassetsinthistransaction(i.e.100%ofthesharesofOffcnLtd.)andissueanimpairmenttestreport.
(2)Iftheamountofexchange-inassetsimpairmentattheendoftheperiod>thetotalnumberofcompensatedshares×theissueprice+theamountofcompensatedcash,eachcompensationobligorshallcompensateYaxiaAutoseparatelyaccordingtotheproportionofthesharestothetotalsharesofOffcnLtd.heldbyallthecompensationobligorsbeforethetransaction.Thecalculationformulais:
theamounttobecompensatedfortheimpairmentoftheexchange-inassets=theamountofimpairmentofexchange-inassetsattheendoftheperiod－thetotalcompensatedamountinthecommitmentyear.Inanysituations,thetotalamountofthecompensationforexchange-inassetsimpairmentandthecompensationforperformancecommitmentshallnotexceedthetotalamountofthistransaction'sconsiderationreceivedbyalltheshareholdersofOffcnLtd.
(3)Theaforementionedamountofimpairmentistheconsiderationofexchange-inassetsminustheestimatedvalueofexchange-inassetsasoftheendoftheperiod,deductingtheeffectsofcapitalinjection,capitalreduction,giftacceptanceandprofitdistributionoftheshareholdersofexchange-inassetsduringcompensationperiod.
6.Implementationofcompensation:
(1)IfthecompensationobligorisrequiredtocompensateYaxiaAutoduetothenetprofitsgeneratedbyexchange-inassetsarelowerthanthecommittednet
profits,YaxiaAutoshallconveneaboardmeetingwithin30workingdaysafterthespecialauditreportorimpairmenttestreportisissuedbytheaccountingfirm,andshalldeterminethenumberofsharesorcashamounttobecompensatedbyeachcompensationobligorinaccordancewiththeProfitForecastandCompensationAgreement.Theboardofdirectorsshallconveneageneralmeetingofshareholderstoconsidertheissueofcancellingrepurchasedcompensationshareofthecurrentperiod.
(2)Basedonthetermsandconditionsoftheagreement,eachcompensationobligorshallcompensateYaxiaAutointhefollowingorder:eachcompensationobligorshallperformthecompensationobligationaccordingtotheproportionofthesharestothetotalsharesofOffcnLtd.heldbyallthecompensationobligorsbeforethetransaction.①Firstly,allcompensationobligorsshallcompensatethelistedCompanywithYaxiaAutosharesobtainedinthistransactionaccordingtotheproportionofthesharestothetotalsharesofOffcnLtd.heldbyallthecompensationobligorsbeforethetransaction.Iftheaforementionedsharesareinsufficientforcompensation,eachcompensationobligorshallmakecompensationbypurchasingYaxiaAutosharesfromthesecondarymarketorbyotherlegalmeans.Inordertoavoidambiguity,thecompensationobligorsshallnotbearjointliabilityfortheabovecompensationobligations.②YaxiaAutoshallnotifyallcompensationobligorsinwritingwithin5workingdaysafterthedateofannouncementofresolutionbytheshareholders’meeting.AllcompensationobligorsshalltransfertheircompensationsharesofthecurrentyeartothedesignatedaccountsetupbytheboardofdirectorsofYaxiaAutoatatotalpriceofRMB1.00within5workingdaysafterreceivingtheaforementionednotice,andcanceltheaforementionedrepurchasedsharesinaccordancewithrelevantlawsandregulations.(Iftherearechangesinrelevantlawsandregulationsand/orinrulesofrelevantauthoritiesatthattime,thecancellationshallbecompletedinaccordancewiththelatestrelevantlaws,regulationsandrulesatthattime)③Fromthedateonwhichthenumberofcompensationsharesofeachcompensationobligorisdetermineduntilthecancellationoftheseshares,thesesharesarewithno
votingrightsorrightsfordividenddistribution.
④IfthecompensationobligorneedstocompensateYaxiaAutoincashinaccordancewiththestipulationsoftheProfitForecastandCompensationAgreement,eachcompensationobligorshallpaythecompensationamounttoYaxiaAutowithintheperiodspecifiedinthenotice.Incaseofoverduepayment,thecompensationobligorshallpaythelatepaymentinteresttoYaxiaAutoontheoverdueportionatdailyinterestrateof5?,withthecontinuityofobligationofcompensation.
| votingrightsorrightsfordividenddistribution.④IfthecompensationobligorneedstocompensateYaxiaAutoincashinaccordancewiththestipulationsoftheProfitForecastandCompensationAgreement,eachcompensationobligorshallpaythecompensationamounttoYaxiaAutowithintheperiodspecifiedinthenotice.Incaseofoverduepayment,thecompensationobligorshallpaythelatepaymentinteresttoYaxiaAutoontheoverdueportionatdailyinterestrateof5?,withthecontinuityofobligationofcompensation. | |||||
| YaxiaIndustrial,ZhouXiayun,ZhouHui,ZhouLi,Phase-Iemployeestockownershipplan | Letterofcommitmentonlock-upperiod | Afterthecompletionofthetransaction(startingfromthedateofthelistingofsharesissuedinthistransaction),thecompany/I/theplanshallnottransfertheshareswithrightsandinterestsofYaxiaAutowithin36months.Afterthecompletionofthetransaction,thesharesheldbytheCompany/I/theplan,derivedfromYaxiaAutosharesduetothedistributionofstockdividendsandtheconversionofcapitalreservetosharecapitalshallalsocomplywiththeabove-mentionedarrangementofrestrictedsaleofshares.IftheChinaSecuritiesRegulatoryCommissionand/orShenzhenStockExchangehave/hasotherprovisionsfortheabove-mentionedlock-upperiodarrangement,thecompany/I/theplanwilladjustandimplementtheabove-mentionedlock-upperiodarrangementaccordingtothelatestregulationsoftheChinaSecuritiesRegulatoryCommissionand/orShenzhenStockExchange.Ifviolatingtheabovecommitments,thecompany/I/theplanwillbearalllossescausedtoYaxiaAuto. | May4,2018 | Jan.31,2022 | Undernormalimplementation |
| LiYongxin | LetterofCommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbymyselfinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedcompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbymyselfshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedcompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)2.Asthetransfereeof72,696,561YaxiaAutosharesheldbyAnhuiYaxiaIndustrialCo.,Ltd.,Ishallnottransfer | Apr.27,2018 | Jan.31,2022 | Undernormalimplementation |
suchshareswithin36monthsfromtheregistrationdateofsuchsharesinmysecuritiesaccount.
3.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedcompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.
4.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
5.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
6.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.
7.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange.
| suchshareswithin36monthsfromtheregistrationdateofsuchsharesinmysecuritiesaccount.3.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedcompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.4.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.5.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.6.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.7.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange. | |||||
| LuZhongFang | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbymyselfinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedcompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbymyselfshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedcompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights, | Apr.27,2018 | Jan.31,2022 | Undernormalimplementation |
etc.)
2.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedcompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.
3.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.
6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange.
| etc.)2.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedcompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.3.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange. | |||||
| KeruiTechnologyInnovation | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbyKeruiTechnologyInnovationinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedcompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbyKeruiTechnologyInnovationshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedcompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights, | Jul.27,2018 | Jan.31,2022 | UndernormalImplementation |
etc.)
2.Theenterprisepromisestoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
3.Afterthecompletiondateofthistransaction,theincreasedsharesthattheenterpriseownsduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.
5.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange.
| etc.)2.Theenterprisepromisestoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.3.Afterthecompletiondateofthistransaction,theincreasedsharesthattheenterpriseownsduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.5.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange. | |||||
| AerospaceIndustry,GuangyinVenture | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbyKeruiTechnologyInnovationinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedcompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbyKeruiTechnologyInnovationshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedcompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)2.Theenterprisepromisestoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesortheChinaSecuritiesRegulatory | Jul.27,2018 | Jan.31,2021 | TheCompany’ssharesheldbytheAerospaceIndustryandGuangyinVenturewerelistedforcirculationonFebruary1,2021,theshareholders’ |
Commissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
3.Afterthecompletiondateofthistransaction,theincreasedsharesthattheenterpriseownsduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.
5.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange.
| Commissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.3.Afterthecompletiondateofthistransaction,theincreasedsharesthattheenterpriseownsduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.5.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange. | sharelock-upcommitmentshadbeenfulfilled | ||||
| WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbymyselfinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedcompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbymyselfshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedcompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)2.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedcompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.3.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorthe | Jul.27,2018 | Jan.31,2021 | TheCompany’ssharesheldbyWangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,andZhangZhi’anwerelistedforcirculationonFebruary1, |
ChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.
6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange.
| ChinaSecuritiesRegulatoryCommissiononsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsandthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsoftheregulatoryagency.6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsoftheChinaSecuritiesRegulatoryCommissionandtheShenzhenStockExchange. | 2021,theshareholders’sharelock-upcommitmentshavebeenfulfilled | ||||
| OffcnPartnership | Letterofcommitmentonthelock-upofshares | Within36monthsfromthedateofthetransferof80,000,000sharesofYaxiaAutoheldbyAnhuiYaxiaIndustrialCo.,Ltd.totheenterprise,thesharesshallnotbetransferred.Thelock-upperiodofthesharesincreasedduringtheaboveperiodduetobonussharesdistribution,conversionofcapitalreserveorallotmentofsharesbyYaxiaAuto,shallalsocomplywiththeforegoingrequirements.Iftheenterpriseviolatescommitmentslistedabove,itwillbearalllossescausedtoYaxiaAuto. | Apr.27,2018 | Jan.31,2022 | Undernormalimplementation |
| LiYongxinandother10counterparties | Letterofcommitmentonthelock-upofOffcnPartnership’scontributionshares | Within36monthsfromthedateofthetransferof80,000,000sharesofYaxiaAutoheldbyAnhuiYaxiaIndustrialCo.,Ltd.toBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership),IortheenterpriseshallnotinanywaytransferthesharesofBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)orwithdrawfromthepartnershipwithBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership),nordowetransfer,assignorauthorizeotherentitiesinanywaytofullyorpartiallyhavetherightsandinterestsindirectlyrelatedtothesharesofYaxiaIndustrialCo.,Ltd.heldbyBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership). | Jul.27,2018 | Jan.31,2022 | Undernormalimplementation |
| LiYongxinLuZhongfangWangZhendongOffcnPartnership | LetterofcommitmentonmaintainingindependenceofthelistedCompany | I.GuaranteetheindependenceofthelistedCompany’spersonnel(1)Itisguaranteedthatafterthecompletionofthistransaction,thepersonnel,humanresourcesandremunerationmanagementofthelistedCompanyshallbe | April27,2018 | Long-term | Underimplementationnormally |
completelyindependentfrommyself/OffcnPartnership,andfromotherrelatedparties,suchascompanies,enterprisesoreconomicorganizations,controlledbymyself/OffcnPartnership.
(2)Itisguaranteedthatafterthecompletionofthistransaction,seniorexecutivesshallworkasfull-timeemployeesandreceiveremunerationinthelistedCompany.Theyshallnotholdanypositionsotherthandirectorsorsupervisorsinothercompanies,enterprises,oreconomicorganizationscontrolledbymyself/OffcnPartnership.
(3)Itisguaranteedthatafterthecompletionofthistransaction,theofficialpowersoftheshareholders’meetingandboardofdirectorsonpersonnelappointmentsanddismissalsshallnotbeinterfered.II.GuaranteetheindependenceofinstitutesofthelistedCompany
(1)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallbuildasoundstructureofcorporategovernanceanddevelopanindependentandcompleteorganizationalstructure.
(2)Itisguaranteedthatafterthecompletionofthistransaction,thegeneralmeetingofshareholders,theboardofdirectors,andtheboardofsupervisorsshallindependentlyexercisetheirpowersinaccordancewithlaws,regulationsandtheCompany’sArticlesofCorporation.III.GuaranteetheindependenceandcompletenessoftheassetsofthelistedCompany.
(1)Itisguaranteedthatafterthetransaction,thelistedCompanyshallhaveindependentandcompleteassetsrelatedtoproductionandoperation.
(2)Itisguaranteedthatafterthecompletionofthistransaction,thebusinesspremisesofthelistedCompanyshallbeindependentfrommyself/OffcnPartnership,andotherrelatedparties,suchascompanies,enterprises,orothereconomicorganizationscontrolledbymyself/OffcnPartnership.
(3)Itisguaranteedthatafterthecompletionofthistransaction,exceptfornormalbusinessdealings,thereshallbenocapitalandassetsofthelistedCompanyoccupiedbymyself/OffcnPartnership,andotherrelatedparties,suchascompanies,enterprisesoreconomicorganizations,controlledbymyselforOffcnPartnership.
IV.GuaranteetheindependenceofthelistedCompany’sbusiness.
(1)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallhavethequalificationsofindependentlyconductingbusinessactivitiesandthecapabilitiesofrunningmarket-oriented,independent,autonomous,sustainablebusiness.
(2)Itisguaranteedthatafterthecompletionofthistransaction,I/OffcnPartnership,orotherrelatedparties,suchascompanies,enterprises,orothereconomicorganizationcontrolledbymyself/OffcnPartnershipshallavoidbusinesseswhichhaveacompetitiverelationshipwiththelistedCompanyanditssubsidiaries.
(3)Itisguaranteedthatafterthecompletionofthistransaction,I/OffcnPartnership,orrelatedparties,suchascompanies,enterprises,orothereconomicorganizationscontrolledbymyself/OffcnPartnershipshallreducerelated-partytransactionswiththelistedCompanyanditssubsidiaries.Related-partytransactionsthatarereallynecessaryandunavoidableshallbeconductedinamarket-orientedandfairlywayandperformrelevantapprovalprocessesandinformationdisclosureobligationsinaccordancewithrelevantlaws,regulationsandregulatorydocuments.V.GuaranteethefinancialindependenceofthelistedCompany.
(1)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallestablishanindependentfinancialdepartmentwithindependentfinancialaccountingsystemsandstandardizedandindependentfinancialaccountingrules.
(2)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallopenbankaccountsindependentlyandshallnotsharebankaccountswithmyself/OffcnPartnership/otherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership.
(3)Itisguaranteedthatafterthecompletionofthistransaction,financialpersonnelhiredbythelistedCompanyshallnotholdanypart-timepositionsinotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership
(4)Itisguaranteedthatafterthecompletionofthis
transaction,thelistedCompanycanmakefinancialdecisionsindependently.I/OffcnPartnershipshallnotinterferewiththeuseoffundsbythelistedCompany.
(5)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanywillpaytaxesindependentlyaccordingtolaws.I/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditssubsidiariesduetomy/OffcnPartnership’sfailureinfulfillingtheabovecommitments.
| transaction,thelistedCompanycanmakefinancialdecisionsindependently.I/OffcnPartnershipshallnotinterferewiththeuseoffundsbythelistedCompany.(5)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanywillpaytaxesindependentlyaccordingtolaws.I/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditssubsidiariesduetomy/OffcnPartnership’sfailureinfulfillingtheabovecommitments. | |||||
| LiYongxin,LuZhongfang | LetterofCommitmentonavoidinghorizontalcompetition | 1.Asofthedateofsigningthiscommitmentletter,myself,mycloserelativesandothercompanies,enterprisesoreconomicorganizationscontrolledbymyselfandmycloserelatives,exceptforBeijingOffcnOnlineEducationTechnologyCo.,Ltd.(hereinafterreferredtoasOffcnOnline),controlledbymyrelativesXuhuaandLuYan,anditsaffiliatedschoolswhichareinvolvedinthesameorsimilarbusinessesconductedbyOffcnLtd.,otherrelatedpartiesarenotinvolvedinanysame,similarorrelatedbusinessesconductedbythelistedCompany,OffcnLtd.anditsaffiliatedcompaniesandschools.ExceptforservingasadirectorinKunmingWuhuaOffcntrainingschool,whichisaffiliatedtoOffcnOnline,LiYongxinneitherholdsanyfull-timeorpart-timepositionsnorprovidesconsultancyatanycompaniesorenterprises,whichconductscompetitivebusinesseswiththelistedCompany,OffcnLtd.andtheiraffiliates.Ialsodonotdirectlyorindirectlyholdanyequityorsharesofcompaniesorenterprisesconductingthesame,similarorrelatedbusinessesasthelistedCompany,OffcnLtd.anditsaffiliates.2.Asofthedateofsigningthiscommitmentletter,OffcnOnlineanditstwosubordinatetrainingschools’disposalsareasfollow:OffcnOnlineconductsnoeducationbusinesses(tobecanceledaftersubordinateschoolstransferred).KairuierTrainingSchoolinHaidianDistrictofBeijingistobetransferredtoanunrelatedthirdpartyandthetransferagreementhasbeensigned.Ifthetransferisnotcompletedwithin24monthssincethedateofsigningthiscommitmentletter,IwillurgeOffcnOnlinetocanceltheKairuierTrainingSchoolinHaidianDistrictofBeijing.KunmingWuhuaOffcnTrainingSchool,associatedwithOffcnOnline,hasbeenclosedanditwillbetransferredtoanunrelatedthirdpartyorwillbecanceledwithin12monthsaftertherevisedRegulationsfortheImplementationoftheLawonthePromotionof | Sept.20,2018 | 1.ThetransferofKairuierTrainingSchoolinHaidianDistrictofBeijing:within24monthsfromthedateofthesigningofthisletterofcommitment2.ThetransferofKunmingWuhuaOffcnTrainingSchool:within12monthsaftertherevisedRegulationsofImplementationofficiallypromulgatedandimplementedandsupportingregulationsformulatedbyrelevant | Asoftheendofthereportingperiod,KairuierTrainingSchoolinHaidianDistrictofBeijinghadbeentransferredtoanunrelatedthirdparty.Othercommitmentsareundernormalimplementation |
PrivateEducationofthePeople’sRepublicofChina(hereinafterreferredtoasRegulationsofImplementation)isofficiallypromulgatedandimplementedandsupportingregulationsformulatedbyrelevantlocaleducationauthoritiesinaccordancewiththerevisedRegulationsofImplementationcomesintoeffect.
3.Asofthedateofsigningthiscommitmentletter,OffcnLtd.astheorganizerintendstotransferits100%oftheorganizer’srightsof33privateschoolsfornon-academicqualificationstoLiYongxinandsingedtheAgreementonTransferofOrganizer’sRightsofPrivateSchoolsforNon-AcademicQualificationsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd.LiYongxiniswillingtoentrustthetransferred33privateschoolsfornon-academicqualificationstoOffcnLtd.andsignedtheTrusteeshipAgreementofPrivateSchoolsforNon-academicQualifications.
4.Afterthecompletionoftransaction,exceptfortheabove-mentionedcases,IpromisethatduringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyselfandmycloserelativesshallnotinanyway(includingbutnotlimitedtoselfoperatedorwithotherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedandcompetitivebusinesseswiththelistedCompany,whichincludesthefollows:
(1)Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliatedcompanies.
(2)IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.
(3)IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;.
(4)Iwillnotinstigate,mislead,encourageorotherwise
| PrivateEducationofthePeople’sRepublicofChina(hereinafterreferredtoasRegulationsofImplementation)isofficiallypromulgatedandimplementedandsupportingregulationsformulatedbyrelevantlocaleducationauthoritiesinaccordancewiththerevisedRegulationsofImplementationcomesintoeffect.3.Asofthedateofsigningthiscommitmentletter,OffcnLtd.astheorganizerintendstotransferits100%oftheorganizer’srightsof33privateschoolsfornon-academicqualificationstoLiYongxinandsingedtheAgreementonTransferofOrganizer’sRightsofPrivateSchoolsforNon-AcademicQualificationsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd.LiYongxiniswillingtoentrustthetransferred33privateschoolsfornon-academicqualificationstoOffcnLtd.andsignedtheTrusteeshipAgreementofPrivateSchoolsforNon-academicQualifications.4.Afterthecompletionoftransaction,exceptfortheabove-mentionedcases,IpromisethatduringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyselfandmycloserelativesshallnotinanyway(includingbutnotlimitedtoselfoperatedorwithotherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedandcompetitivebusinesseswiththelistedCompany,whichincludesthefollows:(1)Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliatedcompanies.(2)IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.(3)IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;.(4)Iwillnotinstigate,mislead,encourageorotherwise | localeducationauthoritiesinaccordancewiththerevisedRegulationsofImplementationcomesintoeffect. |
induce,persuade,orcoercetheemployeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.
(5)IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.
5.IpromisethatifI,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelativesobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,IwillnotifythelistedCompanyanditsaffiliatesinwritingwithin5workingdays.Afterobtainingthethirdparty’spromise,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.
6.IguaranteethatIwouldneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.
7.IfIviolatetheabovecommitments,thebenefitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompanyandIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewritingnoticefromthelistedCompany,compensationwillbemadeincash.
8.Iwilldiscloserelevantinformationinatimelymannerifcommitmentsfailtobefulfilledortobefulfilledonschedulebecauseofobjectivereasons,suchaschangesinrelevantlaws,regulationsandpolicies,ornaturaldisasters.Exceptfortheabove-mentionedobjectivereasons,ifthecommitmentisanyhowunabletobefulfilledorfulfillingthecommitmentisnotconducivetosafeguardingtherightsandinterestsofthelistedCompany,IshouldfullydisclosethereasonsandeitherprovideanewcommitmenttothelistedCompanyandrelatedinvestorstoreplacetheoriginalone,orproposeanexemptionfromfulfillingthecommitment.
9.ThecommitmentisvalidfromthedatewhenthecommitletterissignedtothetimewhenIceasetobetheactualcontrollerofthelistedCompany.
| induce,persuade,orcoercetheemployeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.(5)IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.5.IpromisethatifI,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelativesobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,IwillnotifythelistedCompanyanditsaffiliatesinwritingwithin5workingdays.Afterobtainingthethirdparty’spromise,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.6.IguaranteethatIwouldneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.7.IfIviolatetheabovecommitments,thebenefitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompanyandIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewritingnoticefromthelistedCompany,compensationwillbemadeincash.8.Iwilldiscloserelevantinformationinatimelymannerifcommitmentsfailtobefulfilledortobefulfilledonschedulebecauseofobjectivereasons,suchaschangesinrelevantlaws,regulationsandpolicies,ornaturaldisasters.Exceptfortheabove-mentionedobjectivereasons,ifthecommitmentisanyhowunabletobefulfilledorfulfillingthecommitmentisnotconducivetosafeguardingtherightsandinterestsofthelistedCompany,IshouldfullydisclosethereasonsandeitherprovideanewcommitmenttothelistedCompanyandrelatedinvestorstoreplacetheoriginalone,orproposeanexemptionfromfulfillingthecommitment.9.ThecommitmentisvalidfromthedatewhenthecommitletterissignedtothetimewhenIceasetobetheactualcontrollerofthelistedCompany. | |||||
| WangZhendong,OffcnPartnership | LetterofCommitmentonavoidinghorizontalcompetition | 1.Asofthedateofsigningthisletterofcommitments,I,mycloserelatives,relatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelatives,OffcnPartnershipandrelatedparties,suchasotherenterprisesoreconomicorganizationscontrolledbyOffcnPartnership,participateinnobusinesseswhicharethesame,similaroorrelated | April27,2018 | Long-term | Undernormalimplementation |
tobusinessescompetingwiththelistedCompany,OffcnLtd.andtheiraffiliatedcompaniesandschools.ExceptforservingasadirectoratBeijingHaidianDistrictKairuierTrainingSchool,affiliatedtoOffcnOnline(OffcnOnlinetendstotransfertherightsofKairuierTrainingSchooltoanunrelatedthirdpartyandafterthistransfer,WangZhendongwillnotholdthepostasadirector.),Ineitherholdsanyfull-timeorpart-timepositionsnorprovidesconsultancyatanycompaniesorenterpriseswhichconductscompetitivebusinesseswiththelistedCompany,OffcnLtd.andtheiraffiliates.serveasaconsultantorapart-timeemployeeinothercompaniesorenterprisesthatposecompetitionsagainstthelistedCompany,OffcnLtd.anditsaffiliates.Idonotdirectlyorindirectlyholdtheequityofancompanyorentitythatrunsthesame,similarorrelevantbusinessengagedbythelistedCompany,OffcnLtd.anditsaffiliates.
2.Afterthecompletionoftransaction,I/OffcnPartnershippromisethatduringthetimeofbeingshareholdersofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyselfandmycloserelatives，OffcnPartnershipandrelatedparties,suchasotherenterprisesoreconomicorganizationscontrolledbyOffcnPartnership,shallnotinanyway(includingbutnotlimitedtoselfoperatedorwithotherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedandcompetitivebusinesseswiththelistedCompany,whichincludesthefollows:
Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliatedcompanies.2..IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.3.IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;.4.Iwillnotinstigate,mislead,encourageorotherwiseinduce,persuade,orcoercethe
employeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.5.IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.
3.I/OffcnPartnershippromisethatifI,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelatives,OffcnPartnershipandrelatedparties,suchasotherenterprisesoreconomicorganizationscontrolledbyOffcnPartnership,obtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,I/OffcnPartnershipwillimmediatelynotifythelistedCompany.Afterobtainingthethirdparty’spromise,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.
4.IguaranteethatIwouldneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.IfI/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/OffcnPartnership’sfailureinfulfillingcommitments.
| employeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.5.IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.3.I/OffcnPartnershippromisethatifI,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelatives,OffcnPartnershipandrelatedparties,suchasotherenterprisesoreconomicorganizationscontrolledbyOffcnPartnership,obtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,I/OffcnPartnershipwillimmediatelynotifythelistedCompany.Afterobtainingthethirdparty’spromise,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.4.IguaranteethatIwouldneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.IfI/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/OffcnPartnership’sfailureinfulfillingcommitments. | |||||
| LiYongxin,LuZhongfang | LetterofCommitmentonreducingandregulatingrelated-partytransactions | 1.Afterthetransactioniscompleted,duringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandothercompanies,enterprisesorothereconomicorganizationscontrolledbymyself,mycloserelativeswilltrytoavoidandreducetherelated-partytransactionswiththelistedCompanyanditsaffiliates;unlessitisnecessaryforthebusinessdevelopmentofthelistedCompany,anyrelated-partytransactionswiththelistedCompanyanditsaffiliateswillnotbeconducted.2.Afterthetransactioniscompleted,fortherelated-partytransactionswhichareunavoidableorreasonabletohappenwiththelistedCompanyanditsaffiliates,I,mycloserelativesandothercompanies,enterprisesoreconomicorganizationscontrolledbymyselfandmycloserelatives,willsignrelated-partytransactionagreementswiththelistedCompanyanditsaffiliatesinaccordancewiththerelevantlaws,regulationsandregulatorydocumentsandfollowthegeneralbusinessprinciplesofequality,willingness,equivalenceandpaid-use.Thepricesofrelated-partytransactionsshallbefair.Decision-makingprocedures,lawfulinformation | Jul.27,2018 | Long-term | Undernormalimplementation |
disclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactions,shallbefollowed.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.
3.Afterthecompletionofthetransaction,Iwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedcompanies.
4.Iwillurgemycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselfandmycloserelativestoabidebytheaforementionedcommitments.
5.IfI,mycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselfandmycloserelativesviolatetheabovecommitments,theprofitsobtainedbytheviolationofcommitmentsbelongtothelistedCompany,andIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewrittennoticefromthelistedCompany,compensationwillbemadeincash.
6.ThecommitmentisvalidfromthedatewhenitissignedtothetimewhenIceasetobetheactualcontrollerofYaxiaAutoandthereisnootherrelatedrelationshipwithYaxiaAuto.
| disclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactions,shallbefollowed.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.3.Afterthecompletionofthetransaction,Iwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedcompanies.4.Iwillurgemycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselfandmycloserelativestoabidebytheaforementionedcommitments.5.IfI,mycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselfandmycloserelativesviolatetheabovecommitments,theprofitsobtainedbytheviolationofcommitmentsbelongtothelistedCompany,andIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewrittennoticefromthelistedCompany,compensationwillbemadeincash.6.ThecommitmentisvalidfromthedatewhenitissignedtothetimewhenIceasetobetheactualcontrollerofYaxiaAutoandthereisnootherrelatedrelationshipwithYaxiaAuto. | |||||
| WangZhendong,AerospaceIndustry,OffcnPartnership | LetterofCommitmentonreducingandregulatingrelated-partytransactions | 1.Afterthecompletionoftransaction,duringtheperiodofbeingtheactualcontroller/shareholder，I,mycloserelativesandothercompanies,enterprisesorothereconomicorganizationscontrolledbymyself,mycloserelatives，AerospaceIndustryorOffcnPartnership,willtrytoavoidandreducetherelated-partytransactionswiththelistedCompany.2.Afterthetransactioniscompleted,fortherelated-partytransactionswhichareunavoidableorreasonabletohappenwiththelistedCompanyanditsaffiliates,myself,mycloserelativesandothercompanies,enterprisesoreconomicorganizationscontrolledbymyselfandmycloserelatives,AerospaceIndustryorOffcnPartnership,willsignrelated-partytransactionagreementswiththelistedCompanyanditsaffiliatesinaccordancewiththerelevantlaws,regulationsandregulatorydocumentsandfollowthegeneralbusinessprinciplesofequality,willingness,equivalenceandpaid-use.Thepricesof | April27,2018 | Long-term | Undernormalimplementation |
2.ShouldtherebeanyprofitforecastforanyoftheCompany’sassetsorprojectsandthecurrentreportingperiodisstillwithintheforecastperiod,theCompanyshallexplainwhethertheperformanceoftheassetorprojectmatcheswiththeprofitforecastandwhy.
√ApplicableNotapplicable
Profitforecastassetorproject
name
| Profitforecastassetorprojectname | Forecaststarttime | Forecastendtime | Currentforecastperformance(ThousandYuan) | Currentactualperformance(ThousandYuan) | Reasonsfornotmeetingtheforecast(ifapplicable) | Originalforecastdisclosuredate | Originalforecastdisclosureindex |
| TheprofitforecastofBeijingOffcnEducationTechnologyCo.,Ltd.,thetargetCompanyof | Jan.1,2018 | Dec.31,2020 | 1,650,000.00 | 1,902,679.99 | Notapplicable | May.5,2018 | ReportofMajorAssetsReplacementandIssuanceofSharestoPurchaseAssetsandRelated-Part |
| related-partytransactionsshallbefair.Decision-makingprocedures,lawfulinformationdisclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactions,shallbefollowed.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.3.Afterthecompletionofthetransaction,I/AerospaceIndustry/OffcnPartnershipwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyorthedirectors,supervisorsandseniorexecutivesofthelistedCompanytomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsindifferentformsunderunequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsoflistedcompanies.I/AerospaceIndustry/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/AerospaceIndustry’s/OffcnPartnership’sfailuresinfulfillingcommitments. | |||
| Whetherthecommitmentsarefulfilledontime | Yes | ||
thismajorassetrestructuring(netprofitsafterdeductingnon-recurringprofitsandlossesfromthescopeoftheconsolidatedstatement)
| thismajorassetrestructuring(netprofitsafterdeductingnon-recurringprofitsandlossesfromthescopeoftheconsolidatedstatement) | yTransactions(Draft)(http://www.cninfo.com.cn) |
CommitmentsmadebytheCompany’sshareholdersandcounterpartiesinthereportingyear’soperatingperformance
√ApplicableNotapplicableAccordingtotheProfitForecastCompensationAgreementsignedbythelistedCompanyand8performancecompensationobligorsincludingLiYongxin,theperformancecompensationperiodforthistransactionistheyearsof2018,2019and2020.Theperformancecompensationobligorcommittedthataftertheimplementationofthismajorassetsrestructuring,thenetprofitsattributabletotheownersoftheparentcompanyafterdeductingnon-recurringprofitsandlossesinthescopeoftheconsolidatedstatementsofBeijingOffcnfortheyearsof2018,2019and2020shallnotbelessthanRMB930.00million,RMB1.30billion,andRMB1.65billion.ThelistedCompanyshall,afterthecompletionofthetransaction,hireanaccountingfirmwithsecuritiesbusinessqualificationstoissueaspecialauditreportontheactualnetprofitsafterdeductingnon-recurringprofitsandlossesofBeijingOffcnduringthecurrentperiod.Iftheactualnetprofit(accumulateddata)ofBeijingOffcnduringtheprofitcompensationperiodasoftheendofeachfiscalyearfailstoreachthecommittednetprofit(accumulateddata),compensationobligorswhomadetheperformancecommitmentsshallperformthecompensationobligationinaccordancewiththeProfitForecastandCompensationAgreement.Duringthereportingperiod,thenetprofitsafterdeductingnon-recurringprofitsandlossesofOffcnLtd.wasRMB1.90billionin2020.Comparedwiththecommittednetprofit,theactualnetprofitofOffcnLtd.in2020wasincreasedby115.31%.OffcnLtd.fulfilledits2020annualperformancecommitment.Thetotalnetprofitsafterdeductingnon-recurringprofitsandlossesofOffcnLtd.fortheyearsof2018-2020isRMB4.74billion.ComparedwiththecommittednetprofitofRMB3.89billion,theactualnetprofitofOffcnLtd.fortheyearsof2018-2020isincreasedby122.28%.ThecompletionofperformancecommitmentsanditsimpactontheimpairmenttestNotapplicableSectionIV.Thenon-operatingcapitaloccupationofthelistedCompanybythecontrollingshareholderanditsrelatedpartiesApplicable√NotapplicableDuringthereportingperiod,therewasnonon-operatingcapitaloccupationofthelistedCompanybythecontrollingshareholderanditsrelatedparties.
SectionV.Explanationoftheboardofdirectors,boardofsupervisors,andindependentdirectorsonthenon-standardauditreportoftheaccountingfirmforthereportingperiod
Applicable√Notapplicable
SectionVI.Comparedwiththefinancialreportofthepreviousyear,theexplanationofthechangesinaccountingpolicies,accountingestimatesandaccountingmethods√ApplicableNotapplicableOnJuly5,2017,theMinistryofFinancerevisedandissuedtheAccountingStandardsforBusinessEnterprisesNo.14-Revenue.AccordingtotherequirementsoftheMinistryofFinance,suchstandardsshouldbeimplementedonJanuary1,2018forcompaniesthatarelistedbothathomeandabroadandcompaniesthatarelistedoverseasandadoptInternationalFinancialReportingStandardsorAccountingStandardsforBusinessEnterprisestopreparefinancialstatements;onJanuary1,2020forotherdomesticlistedcompanies;andonJanuary1,2021fornon-listedcompaniesthatimplementtheAccountingStandardsforBusinessEnterprises.TheCompany'stenthsessionofthefifthboardofdirectorsheldonMarch9,2020approvedtheadoptionoftheAccountingStandardsforBusinessEnterprisesNo.14-Revenue(FinanceAccounting[2017]No.22)fromJanuary1,2020.Accordingtothecumulativeimpact,theamountofretainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsshallbeadjusted,whilethedatainthecomparableperiodshallnot.Changesinaccountingpolicieshavenoimpactonthefinancialstatementsoftheparentcompany.TheimplementationofthisnewaccountingpolicyisnotexpectedtohaveanimpactontheCompany'soperatingresults,norwillitcauseamajorchangeintheCompany'srevenuerecognitionmethod,andwillnothaveamajorimpactonthefinancialstatements.SectionVII.Explanationofthesituationinwhichthecorrectionofmajoraccountingerrorsoccursduringthereportingperiodandneedstoberetrospectivelyrestated□Applicable√NotapplicableThereisnosuchsituationofcorrectionofmajoraccountingerrorsrequiringtoberetrospectivelyrestatedintheCompanyduringthereportingperiod.
SectionVIII.Explanationofthechangesinthescopeoftheconsolidatedstatementcomparedwiththefinancialstatementsofthepreviousyear
√Applicable□Notapplicable
Fullnameofsubsidiary
| Fullnameofsubsidiary | Ratioofshareholding(%) | Reasonsforchanges |
| 1.BeijingOffcnFutureEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 2.BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 3.ShaanxiOffcnEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 4.ChengduOffcnFutureEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 5.WuhuOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 6.WuhanGuoshangHumanResourceServiceCo.,Ltd. | 100.00 | Newlyestablished |
7.JinanZhangqiuOffcnTrainingSchoolCo.,Ltd.
| 7.JinanZhangqiuOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 8.MengziOffcnEducationTrainingCo.,Ltd. | 100.00 | Newlyestablished |
| 9.BeijingOffcnTechnologyDevelopmentCo.,Ltd. | 100.00 | Newlyestablished |
| 10.ShanghaiOffcnEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 11.GuangzhouOffcnIntelligenceEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 12.PingshanOffcnEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 13.ShandongOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 14.LanzhouOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
SectionIX.AppointmentanddismissaloftheCPAfirm
CPAfirmappointedatpresent
| NameoftheCPAfirm | BakerTillyChinaCertifiedPublicAccountantsLLP |
| Remunerationofdomesticaccountingfirm(ThousandYuan) | 1,800 |
| Consecutiveyearsoftheauditserviceofdomesticaccountingfirm | 3years |
| NameofCPAindomesticaccountingfirm | ZhouBaimin,ShenXu |
| ConsecutiveyearsofCPAauditservicesofdomesticaccountingfirms | 3years |
WhethertoreappointanaccountingfirminthecurrentperiodYes√NoEmploymentofinternalcontrolauditingaccountingfirms,financialconsultantsorsponsors
√ApplicableNotapplicableTheCompanyappointedBakerTillyChinaCertifiedPublicAccountantsLLPastheCompany's2020internalcontrolauditinstitution,andpaidatotalofRMB1.8milliontogetherwiththeauditfeesforthisyear.SectionX.FacingdelistingafterthedisclosureoftheannualreportApplicable√Notapplicable
SectionXI.Bankruptcyandreorganizationrelatedmatters
Applicable√NotapplicableThereisnosuchsituationofbankruptcyandreorganizationoftheCompanyduringthereportingperiod.
SectionXII.Majorlitigationandarbitrationmatters
Applicable√NotapplicableThereisnosuchsituationoflitigationandarbitration.Duringthereportingperiod,otherlitigationandarbitrationmattersoftheCompanyanditssubsidiariesareasfollows:
1.Duringthereportingperiod,theamountoflitigationinvolvedinclosedcaseswasRMB11,260.55thousandyuan,andtheactualamountofjudgmentsineffectivelegaldocumentswasapproximatelyRMB1,627.51thousandyuan.TheresultsofthelitigationhadnosignificantimpactontheCompany'soperations;
2.Attheendofthereportingperiod,theamountoflitigationinvolvedinunsettledcaseswasRMB11,291.71thousandyuan,andtheamountoflitigationinvolvedinpendingcasesaccountedfor0.26%oftheauditednetassetsattributabletoshareholdersofthelistedCompanyin2020,whichhadnosignificantimpactontheCompany'soperations.SectionXIII.Punishmentandrectification
Applicable√NotapplicableThereisnosuchsituationofpunishmentandrectificationoftheCompanyduringthereportingperiod
SectionXIV.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers:
Applicable√Notapplicable
SectionXV.ImplementationoftheCompany’sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures
Applicable√NotapplicableThereisnosuchsituationoftheCompany’sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasures.
SectionXVI.Significantrelatedtransactions
1.Related-partytransactionsrelevanttoroutineoperations
Applicable√NotapplicableThereisnosuchsituationofrelated-partytransactionsrelevanttoroutineoperations.oftheCompanyduringthereportingperiod.
2.RelatedpartytransactionsarisingfromacquisitionandsaleofassetsorequityApplicable√NotapplicableThereisnosuchsituationofrelated-partytransactionsarisingfromacquisitionandsaleofassetsorequityoftheCompanyduringthereportingperiod.
3.Related-partytransactionsofjointforeigninvestments
Applicable√NotapplicableThereisnosuchsituationofrelated-partytransactionsofjointforeigninvestmentsoftheCompanyduringthereportingperiod.
4.RelatedcreditanddebttransactionsApplicable√NotapplicableThereisnosuchsituationofRelatedcreditanddebttransactionsoftheCompanyduringthereportingperiod.
5.Othersignificantrelated-partytransactions√ApplicableNotapplicableOnDecember12,2018,LiYongxinsignedanagreementwithBeijingSidaokouSub-branchofHuaXiaBankCo.,Ltd.toprovideapersonalmaximumguaranteeofRMB570,000,000.00fortheshort-termloanofOffcnLtd..ThecontractnumberisYYB76(max-guarantee)20180023,andtheperiodofthemaincreditor’srightsguaranteedbythecontractwasfromDecember7,2018toDecember7,2019.OnJanuary9,2019,OffcnLtd.signedaloancontractofRMB360,000,000.00withBeijingSidaokouSub-branchofHuaxiaBankCo.,Ltd.,withthecontractnumberYYB7610120180014,andtheloanperiodwasfromJanuary9,2019toJanuary9,2020.TheloanwassettledonJanuary9,2020.SectionXVII.Majorcontractsandtheirperformance
1.Trusteeship,contractingandleasingmatters
(1)Trusteeshipsituation
√ApplicableNotapplicable
ExplanationsontrusteeshipsituationOnSeptember20,2018,OffcnLtd.andLiYongxinsignedAgreementonTransferofOrganizer’sRightsofPrivateSchoolsforNon-AcademicQualificationsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd..All100%rightsoforganizersasofSeptember20,2018weretobetransferredtoLiYongxin.Onthesameday,LiYongxinandOffcnLtd.signedtheTrusteeshipAgreementofPrivateSchoolsstipulatingthatLiYongxinwouldentrustthetransferredprivateschoolstoOffcnLtd.formanagement.TheperiodoftrusteeshipstartedfromthedatewhenLiYongxinpaidallthetransferpricetothedaywhentheprivateschools’100%rightsoforganizersweretransferredtotheunrelatedthirdpartyorcanceled(Note:within12monthsaftertherevisedImplementationRegulationswasofficiallypromulgatedandtherelevantlocaleducationauthoritiespassedthesupportingregulationsinaccordancewiththerevisedImplementationRegulations,LiYongxintransferred100%oftheowner’srightstotheunrelatedthirdpartyorcanceledthem.)Projectswithtrusteeshipthatprofitsorlossesreachedmorethan10%ofthetotalprofitsoftheCompany
Applicable√NotapplicableTherewasnoprojectwithtrusteeshipthatprofitsorlossesreachedmorethan10%ofthetotalprofitsoftheCompanyduringthereportingperiod.
(2)ContractingsituationApplicable√NotapplicableTherewasnocontractingsituationoftheCompanyduringthereportingperiod.
(3)LeasingsituationApplicable√NotapplicableTherewasnoleasingsituationoftheCompanyduringthereportingperiod.
2.MajorguaranteeApplicable√NotapplicableTherewasnomajorguaranteeoftheCompanyduringthereportingperiod.
3.Explanationsonentrustedcashassets
(1)Explanationsonentrustedfinancialmanagement
√ApplicableNotapplicable
Explanationsonentrustedfinancialmanagementduringthereportingperiod
Unit:RMB(10,000)
Types
| Types | Sourcesofentrustedfinancing | Amountofentrustedfinancing | UndueBalance | Overdueamountyettoberecovered |
| BankFinancialProduct | Self-ownedfund | 730,064.80 | 85,246.00 | 0.00 |
| BrokerageFinancialProducts | Self-ownedfund | 8,000.00 | 0.00 | 0.00 |
| TrustFinancialProducts | Self-ownedfund | 519,953.00 | 27,000.00 | 0.00 |
| Others | Self-ownedfund | 999.90 | 999.90 | 0.00 |
| Total | 1,259,017.70 | 113,245.90 | 0.00 | |
Particularsofhigh-riskentrustedfinancialmanagementwithalargesingleamount,lowsecurity,poorliquidityornocapitalprotection
Applicable√Notapplicable
Entrustedfinancingisoverdueandtheprincipalcannotberecoveredorthereareothercasesthatmaycauseimpairments.Applicable√Notapplicable
（2）Entrustedloansituation
Applicable√NotapplicableThereisnoentrustedloansituationoftheCompanyduringthereportingperiod.
4.MajorcontractofdailybusinessoperationApplicable√Notapplicable
5.Othersignificantcontract
√ApplicableNotapplicable
SectionXVIII.Socialresponsibilities
1.FulfillmentofsocialresponsibilitiesFordetailsoftheCompany'sperformanceofsocialresponsibility,pleaserefertothe2020AnnualReportonSocialResponsibilitiesofOFFCNEDUdisclosedbytheCompanyonCNINFO(www.cninfo.com)onthesameday.
2.Fulfillmentofthesocialresponsibilityoftargetedpovertyalleviation
Inthereportingyear,theCompanyhasnotcarriedouttargetedpovertyalleviationwork,andhasnosubsequenttargetedpovertyalleviationplan.
3.Environmentalprotection
WhetherthelistedCompanyanditssubsidiariesbelongtothekeypollutantdischargeunitsannouncedbytheenvironmentalprotectionauthoritiesYes√NoTheCompanyhasalwaysfulfilleditscorporatesocialresponsibility,abidedbynationalandlocalenvironmentalprotectionlawsandregulationsandemissionindicators,earnestlyimplementedvariousenvironmentalprotectionmanagementsystems,andcontinuouslypromotedenergyconservation,emissionreductionandenvironmentalprotectionbypromotingpaperlessoperations.Atthesametime,theCompanyalsointegratesandimplementstheconceptofenvironmentalprotectionintoalllevelsofstrategicdecision-makingandbusiness,encouragesemployeestocarryoutgreenvoluntaryactivities,andjointlycontributestotheharmoniousdevelopmentofsociety.Duringthereportingperiod,theCompanydidnothaveanyviolationsofenvironmentalprotectionlawsandregulations,pollutionaccidentdisputes,andnoadministrativepenaltiesforviolatingenvironmentalprotectionlawsandregulations.
SectionXIX.Othersignificantevents
√ApplicableNotapplicable
1.TheCompanyheldthefourteenthmeetingofthefifthboardofdirectorsandthesecondextraordinarygeneralmeetingofshareholdersin2020onNovember10,2020andNovember26,2020,reviewedandapprovedtheProposalonawholly-ownedSubsidiarytoParticipateinthebiddingofLandUseRight.Itapprovedthewholly-ownedsubsidiaryBeijingOffcnFutureEducationTechnologyCo.,Ltd.toparticipateinthebiddingfortheuserightsofstate-ownedlandsinthethefirst-leveldevelopmentproject,whichrefertotheplotCP00-1804-0002R2classIIresidentialland,andplotCP00-1804-0012LotF3othermulti-functionalland,locatedonQiliquNanbeiVillage,ShaheTown,ChangpingDistrict,Beijing.OnDecember2,2020,thewholly-ownedsubsidiaryBeijingOffcnFutureEducationTechnologyCo.,Ltd.obtainedtheLetterofTransferConfirmationforBeijingState-ownedConstructionLandUseRightListedforSale,confirmingthatthewholly-ownedsubsidiarysuccessfullybidfortheuserightsofthelandsatapriceofRMB3.01billion.TheCompanyplanstobuildtheCompany'sonlinetechnologyR&Dcenter,OMOeducationdemonstrationcenter,R&Dandteachingpersonnelintegratedtrainingcenter,nationalmarketverticalintegratedresponsecommandcenterandinnovationeducationheadquartersonthisland.
2.TheCompanyheldtheCompany’sboardofdirectors,boardofsupervisors,andthethirdextraordinarygeneralmeetingofshareholdersin2020onNovember23,2020andDecember9,2020,reviewedandapprovedtheProposalontheCompany’sCompliancewiththeConditionsforNon-publicIssuanceofAShares,ProposalontheCompany’sPlanofNon-PublicIssuanceofAShares,andProposalontheCompany'sProposalofNon-PublicIssuanceofASharesandotherproposalsrelatedtothisnon-publicissuance.
OnDecember30,2020,theCompanyannouncedtheAnnouncementontheAcceptanceofApplicationsforNon-publicIssuanceofSharesbytheChinaSecuritiesRegulatoryCommission(AnnouncementNo.:2020-052).OnJanuary8,2021,theCompanyannouncedtheNoticeonReceivingaFeedbackfromtheChinaSecuritiesRegulatoryCommission'sAdministrativeLicenseProjectReview(AnnouncementNumber:2021-002).OnJanuary27,2021,theCompanyannouncedtheReportontheReplytotheFeedbackNoticefromtheChinaSecuritiesRegulatoryCommissionAdministrativeLicensingProjectReviewandotherdocuments.Onthesameday,theCompanyalsoannouncedtheadjustmentstothenon-publicissuanceplanincludingtheRevisedProposalforNon-publicIssuanceofASharesreviewedandapprovedatthe17thmeetingoftheFifthBoardofDirectorsandthe14thMeetingoftheFifthSupervisoryCommittee.Regardingthefollow-upprogressoftheCompany'snon-publicissuanceofshares,theCompanywillperformitsinformationdisclosureobligationsinatimelymannerinaccordancewiththerequirementsofrelevantlawsandregulations.
3.TheCompanyheldthesixteenthmeetingofthefifthboardofdirectorsonDecember9,2020,andthefirstextraordinarygeneralmeetingofshareholdersin2021onJanuary25,2021,reviewedandapprovedtheProposalontheSigningofaCooperativeCustomizedDevelopmentandConstructionAgreementforHuairouNewCitybywholly-ownedsubsidiary.Accordingtotheagreement,BeijingJiangongRealEstateCo.,Ltd.willconstructbuildingsofabout297.5thousandsquaremeters(aboveground)onthemulti-functionallandlocatedinPlotA,Block08,HuairouNewCity,YangsongTown,HuairouDistrict,ofwhichtheuserightsbelongtoBeijingJiangongRealEstateCo.,Ltd..TheconstructionwillbedoneinaccordancewiththedesignandplanningofBeijingOffcn,andtheconstructedbuildingswillbedeliveredtoBeijingOffcnasitslearningbaseinHuairouDistrict.Forotherimportantannouncements,pleaserefertothefollowingstatementsandindexes:
Nameofannouncement
| Nameofannouncement | Dateofdisclosure | Websiteofannouncementdisclosure |
| AnnouncementontheAcquisitionofShaanxiGuancheng·JiudingInternationalBuilding1 | 2020-2-27 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementontheCompany’s2019profitdistributionplan | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| Announcementontheestimatedquotaofdailyrelatedpartytransactionsin2020 | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementontheEntrustedFinancialManagementoftheCompanyanditsSubsidiaries | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementonDeterminingthe2020RemunerationPlanoftheCompany'sDirectors,SupervisorsandSeniorManagement | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementonRenewingtheAppointmentofAccountingFirm | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
AnnouncementonthedifferencebetweentheactualnetprofitandthecommittednetprofitofBeijingOffcnEducationTechnologyCo.,Ltd.in2019
| AnnouncementonthedifferencebetweentheactualnetprofitandthecommittednetprofitofBeijingOffcnEducationTechnologyCo.,Ltd.in2019 | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementonCompaniesandSubsidiariesApplyingforComprehensiveCreditLimitfromBanks | 2020-3-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementonWholly-OwnedSubsidiary’IntentiontoParticipateintheBiddingofLandUseRights | 2020-11-11 | CNINFO（http://www.cninfo.com.cn） |
| ProposalonNon-publicIssuanceofAShares | 2020-11-24 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementonRiskWarningsandRemedialMeasuresforDilutingSpotReturnsafterNon-publicIssuanceofSharesandCommitmentsofRelatedEntities | 2020-11-24 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementontheWholly-ownedSubsidiary’sAcquisitionofLandUseRightsbyBidding | 2020-12-3 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementontheAcquisitionofEquityinLiu’anYaxiaRunnan'swholly-ownedSubsidiary | 2020-12-10 | CNINFO（http://www.cninfo.com.cn） |
| AnnouncementontheSigningofaCooperativeCustomizedDevelopmentandConstructionAgreementforHuairouNewCitybywholly-ownedsubsidiary | 2020-12-10 | CNINFO（http://www.cninfo.com.cn） |
| nnouncementontheAcceptanceofApplicationsforNon-publicIssuanceofSharesbytheChinaSecuritiesRegulatoryCommission | 2020-12-31 | CNINFO（http://www.cninfo.com.cn） |
SectionXX.SignificanteventsoftheCompany’ssubsidiaries
√ApplicableNotapplicable
1.OnSeptember27,2019,BeijingOffcnandOffcnFutureGroupCo.,Ltd.acquiredtheequitylistedintheitemII,No.16ShandongexecutionwrittenorderissuedbyShandongHigherPeople’sCourt(2017).TheequitywaslegallyownedbytheLichengsub-branchofJinanRuralCommecialBankCo.,Ltd.asitsdebtequity.TheequityreferstotheuserightsofthelandlocatedtothesouthofBaiyangdianVillage,DuoshiTown,JiyangCounty,Jinanwithalandnumberof07-06-01andacertificatenumberofNo.178Jiyangstate-owned(2013).Theequityalsoincludestheconstructionsontheland,withalandareaof880,711.4squaremeters.TheequitybidbyBeijingOffcnwillbeinvestedintheconstructionofcomprehensivefacilitiesforvocationaleducationsuchasone-stoplearningbase.Currentlytheissuanceofthecertificateofuserightsofthelandisbeingprocessed.
2.OnJanuary13,2020,BeijingOffcnandLiaoningHanhuiIndustrialCo.,Ltd.signedtheFutureLearningCityProjectCooperativeAgreement.Thetwopartiescooperatedinthedevelopmentofthefuturelearningcityproject.BeijingOffcninvestsRMB200millionasprojectdeposit.LiaoningHanhuiIndustrialCo.,Ltd.takestheAF-LB-04-HplotofShenfuOnline-listedState-ownedLandastheprojectconstructionland,completestheconstructionoftheprojecttopasstheacceptancetest,andtoobtainthepropertycertificate.
Aftertheprojectiscompletedandthepropertycertificateisobtained,BeijingOffcnandLiaoningHanhuiIndustrialCo.,Ltd.jointlyentrustathird-partyappraisalagencytoconductanoverallassessmentofLiaoningHanhuiIndustrialCo.,Ltd.,andusethenetassetsastheconsiderationforequitytransfer.AllshareholdersofLiaoningHanhuiIndustrialCo.,Ltd.shallcooperateinthetransferofallequityheldbythemselvestoBeijingOffcnorasubsidiarydesignatedbyBeijingOffcn.TheabovemattershavebeenreviewedandapprovedbytheCompany'sgeneralmanager'soffice.
ChapterVI.ShareChangesandShareholders
SectionI.ChangesinShares
1.ChangesinShares
Unit:share(s)
BeforeChange
| BeforeChange | IncreaseorDecrease(+or-) | AfterChange | |||||||
| Numberofshares | Proportion | Newsharesissued | Bonusshares | Conversionofequityreservesintosharecapital | Other | Subtotal | Numberofshares | Proportion | |
| 1.Shareswithtradingrestrictions | 5,347,063,429 | 86.70% | 72,696,561 | 72,696,561 | 5,419,759,990 | 87.88% | |||
| (1)Sharesheldbystate | |||||||||
| (2)Sharesheldbystate-ownedlegalperson | |||||||||
| (3)Othersharesheldbydomesticcapital | 5,347,063,429 | 86.70% | 72,696,561 | 72,696,561 | 5,419,759,990 | 87.88% | |||
| Ofwhich:sharesheldbydomesticlegalperson | 534,706,341 | 8.67% | 0 | 0 | 534,706,341 | 8.67% | |||
| Sharesheldbydomesticnaturalperson | 4,812,357,088 | 78.03% | 72,696,561 | 72,696,561 | 4,885,053,649 | 79.21% | |||
| (4)Sharesheldbyoverseascapital | |||||||||
| Ofwhich:sharesheldbyoverseaslegalperson | |||||||||
| Sharesheldbyoverseasnaturalperson | |||||||||
| 2.Shareswithouttradingrestrictions | 820,335,960 | 13.30% | -72,696,561 | -72,696,561 | 747,639,399 | 12.12% | |||
| (1)RMBordinaryshares | 820,335,960 | 13.30% | -72,696,561 | -72,696,561 | 747,639,399 | 12.12% | |||
| (2)Domestic-listedsharesforoverseainvestors | |||||||||
| (3)Foreign-listedsharesforoverseasinvestors | |||||||||
| (4)Other | |||||||||
| 3.Totalnumberofshares | 6,167,399,389 | 100.00% | 0 | 0 | 6,167,399,389 | 100.00% | |||
Reasonsforchangesinshares
√Applicable□NotapplicableLiYongxin’sshareholdingincreasedby72,696,561sharesastheexcutiveslockstocks.Approvalofchangesinshares
□Applicable√NotapplicableTransferofsharechanges
□Applicable√NotapplicableImplementationprogressofsharerepurchase
□Applicable√NotapplicableProgressintheimplementationofthecentralizedbiddingmethodtoreducetheshareholdingrepurchase
□Applicable√NotapplicableTheimpactofsharechangesonfinancialindicatorssuchasbasicearningspershareanddilutedearningspershare,netassetspershareattributabletotheCompany’sordinaryshareholders,etc.inthemostrecentyearandthemostrecentperiod
□Applicable√NotapplicableOthercontentthattheCompanydeemsnecessaryorrequiredbythesecuritiesregulatoryagencytodisclose
□Applicable√Notapplicable
2.Changesinrestrictedshares
√Applicable□Notapplicable
Unit:share(s)
Nameofshareholder
| Nameofshareholder | Numberofrestrictedsharesatthebeginningoftheperiod | Numberofrestrictedsharesincreasedintheperiod | Numberofrestrictedsharesreleasedintheperiod | Numberofrestrictedsharesattheendoftheperiod | Reasonsforrestrictions | Dateofreleasingrestrictions |
| LiYongxin | 1,058,718,560 | 72,696,561 | 0 | 1,131,415,121 | excutiveslockstocks | Inaccordancewiththeregulationsonexcutiveslockstocks |
| Totalnumberofshares | 1,058,718,560 | 72,696,561 | 0 | 1,131,415,121 | -- | -- |
SectionII.Issuanceandlistingofsecurities
1.Securitiesissuance(excludingpreferredstock)duringthereportingperiod
□Applicable√Notapplicable
2.DescriptionofchangesinthetotalnumberofsharesoftheCompanyandthestructureofshareholders,changesinthestructureofcompanyassetsandliabilities
□Applicable√Notapplicable
3.Existingsituationofinternalstaffshares
□Applicable√Notapplicable
SectionIII.Shareholdersandactualcontrollers
1.NumberoftheCompany’sshareholdersandshareholdings
Unit:Share(s)
Totalnumber
ofcommonshareholdersattheendofthe
reporting
period
| Totalnumberofcommonshareholdersattheendofthereportingperiod | 41,625 | Totalnumberofcommonshareholdersattheendofthepreviousmonthbeforethedisclosureoftheannualreport | 57,045 | Thetotalnumberofpreferredshareholderswithvotingrightsrestoredattheendofthereportingperiod(ifany)(seeNote8) | 0 |
| 0 | ||||||||
| Shareholdingofshareholdersholdingmorethan5%orthetop10shareholders | ||||||||
| Shareholdername | Natureofshareholders | Shareholdingratio | Numberofsharesheldattheendofthereportingperiod | Changesinthereportingperiod | Numberofshareswithlimitedsaleconditions | Numberofshareswithunlimitedsalesconditions | Pledgeorfreezesituation | |
| Sharestatus | Quantity | |||||||
| LuZhongfang | Domesticnaturalperson | 41.36% | 2,550,549,260 | 0.00 | 2,550,549,260 | 0 | Pledged | 450,000,000 |
| LiYongxin | Domesticnatural | 18.35% | 1,131,415,121 | 0.00 | 1,131,415,121 | 0 | Pledged | 774,495,000 |
person
| person | ||||||||
| WangZhendong | Domesticnaturalperson | 15.61% | 962,471,418 | 0.00 | 962,471,418 | 0 | Pledged | 140,764,011 |
| BeijingAerospaceIndustryInvestmentFund(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 4.33% | 267,353,171 | 0.00 | 267,353,171 | 0 | ||
| BeijingGuangyinVentureCapitalCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 2.89% | 178,235,447 | 0.00 | 178,235,447 | 0 | ||
| HongKongSecuritiesClearingCo.,Ltd. | Overseaslegalperson | 1.93% | 119,248,789 | 72,488,927 | 0 | 119,248,789 | ||
| BeijingKeruiTechnologyInnovationInvestmentCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 1.44% | 89,117,723 | 0.00 | 89,117,723 | 0 | ||
| BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 1.30% | 80,000,000 | 0.00 | 0 | 80,000,000 | ||
| ZhouXiayun | DomesticnaturalPerson | 1.28% | 78,848,640 | 0.00 | 0 | 78,848,640 | Pledged | 43,448,845 |
| ZhouHui | DomesticnaturalPerson | 1.17% | 72,277,920 | 0.00 | 0 | 72,277,920 | Pledged | 11,050,000 |
| Strategicinvestorsorgenerallegalpersonsbecomethetop | None | |||||||
10shareholdersduetotheplacementofnewshares(ifany)(seeNote3)
| 10shareholdersduetotheplacementofnewshares(ifany)(seeNote3) | |||
| Descriptionoftheabove-mentionedshareholders’connectedrelationshiporconcertedaction | TheCompany’scontrollingshareholderandactualcontrollerLuZhongfangandLiYongxinareinaparent-childrelationship.LuZhongfang,LiYongxin,andBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)constitutepersonsactinginconcert.ZhouXiayunandZhouHuihaveafather-sonrelationship.Itisunknownwhetherthereisanassociatedrelationshipamongtheabove-mentionedothershareholders,andwhethertheabove-mentionedshareholdersbelongtothepartiesactinginconcertasstipulatedintheAdministrativeMeasuresonDisclosureofInformationofShareholdingChangesinListedCompanies. | ||
| Explanationoftheabove-mentionedshareholders’entrusting/entrustedvotingrightsandwaiverofvotingrights | None | ||
| Shareholdingsofthetop10shareholderswithunrestrictedsalesconditions | |||
| Shareholdername | Numberofunrestrictedsharesheldattheendofthereportingperiod | Typesofshares | |
| Typesofshares | Quantity | ||
| HongKongSecuritiesClearingCo.,Ltd | 119,248,789 | RMBcommonshares | 119,248,789 |
| BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | 80,000,000 | RMBcommonshares | 80,000,000 |
| ZhouXiayun | 78,848,640 | RMBcommonshares | 78,848,640 |
| ZhouHui | 72,277,920 | RMBcommonshares | 72,277,920 |
| Zhouli | 48,185,280 | RMBcommonshares | 48,185,280 |
| AgriculturalBankofChinaCo.,Ltd-BankofCommunicationsSchroderGrowthHybridSecuritiesInvestmentFund | 8,904,412 | RMBcommonshares | 8,904,412 |
| IndustrialandCommercialBankofChinaLimited-FuguoGrowthStrategyHybridSecuritiesInvestmentFund | 6,835,787 | RMBcommonshares | 6,835,787 |
| ChinaConstructionBank | 6,682,462 | RMBcommon | 6,682,462 |
Co.,Ltd-BOCOMSchroderBlueChipsMixedSecuritiesInvestmentFund
| Co.,Ltd-BOCOMSchroderBlueChipsMixedSecuritiesInvestmentFund | shares | ||
| PhaseIemployeestockownershipplanofYaxiaAutoCo.,Ltd. | 6,554,790 | RMBcommonshares | 6,554,790 |
| ChinaMerchantsBankCompanyLimited-HuitianfuMid-capPositiveGrowthHybridSecuritiesInvestmentFund | 6,293,104 | RMBcommonshares | 6,293,104 |
| Descriptionoftherelationshiporconcertedactionamongthetop10shareholderswithunlimitedsalesconditions,andbetweenthetop10shareholderswithunlimitedsalesconditionsandthetop10shareholders | TheCompany'scontrollingshareholderandactualcontrollerLuZhongfangandLiYongxinareinaparent-childrelationship.LuZhongfang,LiYongxin,andBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)constitutepersonsactinginconcert.ZhouXiayunandZhouHuihaveafather-sonrelationship.ZhouXiayunandZhouLihaveafather-daughterrelationship.Itisunknownwhetherthereisanassociatedrelationshipamongtheabove-mentionedothershareholders,andwhethertheabove-mentionedshareholdersbelongtothepartiesactinginconcertasstipulatedintheAdministrativeMeasuresonDisclosureofInformationofShareholdingChangesinListedCompanies. | ||
| Explanationontheparticipationofthetop10commonshareholdersinmargintradingandsecuritieslendingbusiness(ifany)(seeNote4) | None | ||
Whetherthetop10commonshareholdersandthetop10commonshareholderswithoutsalesconditionsoftheCompanycarryouttheagreedrepurchasetransactionduringthereportingperiod
□Yes√NoTheCompany’stop10commonshareholdersandtop10commonshareholderswithoutsalesconditionsdidn’tconductagreedrepurchasetransactionsduringthereportingperiod
2.Controllingshareholdersofthecompany
Natureofcontrollingshareholder:naturalpersonholdingTypeofcontrollingshareholder:naturalperson
| Nameofcontrollingshareholder | CountryofCitizenship | Whethertoobtaintherightofabodeinothercountriesorregions |
| LuZhongfang | China | No |
| LiYongxin | China | No |
Mainoccupationsandpositions
| Mainoccupationsandpositions | Mr.LiYongxiniscurrentlythepresidentoftheCompany |
| Shareholdingstatusofotherdomesticandoverseaslistedcompaniesthatholdorparticipateinsharesduringthereportingperiod | None |
Changesofcontrollingshareholdersduringthereportingperiod
□Applicable√NotapplicableThecontrollingshareholderoftheCompanydidnotchangeduringthereportingperiod.
3.TheactualcontrolleroftheCompanyandthoseactinginconcertThenatureoftheactualcontroller:domesticnaturalpersonTypeofactualcontroller:naturalperson
| Nameofactualcontroller | Relationshipwithactualcontroller | CountryofCitizenship | Whethertoobtaintherightofabodeinothercountriesorregions |
| LuZhongfang | Self | China | N |
| LiYongxin | Self | China | N |
| BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | Actinginconcert(includingagreement,relatives,samecontrol) | China | N |
| Mainoccupationsandpositions | Mr.LiYongxin,thefounderandactualcontrolleroftheCompany,iscurrentlythepresidentoftheCompany. | ||
| Statusofdomesticandoverseaslistedcompaniesthathaveheldholdingsinthepast10years | None | ||
Changesofactualcontrollersduringthereportingperiod
□Applicable√NotapplicableTheactualcontrolleroftheCompanyhasnotchangedduringthereportingperiod.BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompanyandtheactualcontroller
LuZhongfangOffcnEducationTechnologyCo.,Ltd.
OffcnEducationTechnologyCo.,Ltd.
41.36%
| 41.36% | 18.35% |
TheactualcontrollercontrolstheCompanythroughtrustorotherassetmanagementmethods
□Applicable√Notapplicable
4.Othercorporateshareholdersholdingmorethan10%oftheshares
□Applicable√Notapplicable
5.Sharerestrictionsonreductionsofcontrollingshareholders,actualcontrollers,restructuringpartiesandothercommitmentsubjects
□Applicable√Notapplicable
ChapterVII.PreferredStock
□Applicable√NotapplicableDuringthereportingperiod,therewerenopreferredstockintheCompany.
ChapterVIII.ConvertibleCorporateBonds
□Applicable√NotapplicableDuringthereportingperiod,therewerenoconvertiblecorporatebondsintheCompany.
ChapterIX.Directors,Supervisors,SeniorManagementand
EmployeesSectionI.Changesinsharesheldbydirectors,supervisorsandseniorexecutives
Name
| Name | Title | Tenurestatus | Gender | Age | Startdate | Enddate | Sharesheldatthebeginningoftheperiod(share) | QuantityOfsharesincreasedinthecurrentperiod(share) | Quantityofsharesdecreasedinthecurrentperiod(share) | Otherincreasedordecreasedchanges(share) | Quantityofsharesheldattheendoftheperiod(share) |
| LiYongxin | ChairmanoftheBoard | Incumbent | Male | 45 | February1,2019 | January31,2022 | 1,131,415,121 | 0 | 0 | 0 | 1,131,415,121 |
| WangZhendong | Director,generalmanager | Incumbent | Male | 45 | February1,2019 | January31,2022 | 962,471,418 | 0 | 0 | 0 | 962,471,418 |
| ShiLei | Director | Incumbent | Male | 45 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| YiZiting | Director | Incumbent | Female | 47 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| WangQiang | Independentdirector | Incumbent | Male | 44 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| TongYan | Independentdirector | Incumbent | Female | 44 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| ZhangXuanming | Independentdirector | Incumbent | Male | 43 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| YuHongwei | ChairmanoftheSupervisoryCommittee | Incumbent | Female | 55 | July22,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| HeDi | Supervisor | Incumbent | Male | 44 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| LiWen | Supervisor | Incumbent | Female | 42 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| WangXuejun | Deputygeneralmanager | Incumbent | Male | 58 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| HeYouli | Deputygeneralmanager | Incumbent | Male | 46 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| LuoXue | ChiefFinancialOfficer | Incumbent | Male | 53 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| GuiHongzhi | SecretaryoftheBoard,deputygeneralmanager | Incumbent | Male | 50 | February1,2019 | January31,2022 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 2,093,886,539 | 0 | 0 | 0 | 2,093,886,539 |
SectionII.ChangesofDirectors,Supervisors,andSeniorExecutives
□Applicable√NotapplicableSectionIII.ResumesofKeyPersonnelTheprofessionalbackground,mainworkingexperienceandtheirmaindutiesintheCompanyofcurrentdirectors,supervisors,andseniorexecutives.
1.DirectorsandindependentdirectorsMr.LiYongxin,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedhisbachelor’sdegreeinlawfromtheDepartmentofPoliticalScienceandPublicAdministration,PekingUniversityin1999.Mr.Lifoundedhisowncompanyineducationindustryinthesameyearandstartedtofocushisbusinessontrainingforpublicservicerecruitmentexaminationintheyearof2000.Uptonow,hehasaccumulatednearly20yearsofexperienceinR&D,teachingandbusinessmanagementinthefieldofvocationaleducation.From2005to2010,heservedasthegeneralmanagerofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010to2015,hewasthepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heservedastheChairmanofBoardofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedastheChairmanofBoardofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedastheChairmanofBoardofOffcnEducationTechnologyCo.,Ltd.Mr.WangZhendong,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedhisbachelor’sdegreeinlawfromtheDepartmentofPoliticalScienceandPublicAdministration,PekingUniversityin1999.Intheyearof2001,Mr.WangZhendongstartedhiscareerineducationindustry.From2005to2010,hewasinchargeoftheinternaloperationandmanagementofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,heservedastheexecutivedirectorandgeneralmanagerofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,hewastheexecutivedirectorandgeneralmanagerofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasthedirectorandgeneralmanagerofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasthedirectorandgeneralmanagerofOffcnEducationTechnologyCo.,Ltd.Mr.ShiLei,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hestartedhiscareerineducationindustryintheyearof1999.From2005to2010,hewasinchargeofmarketingoperationsandmanagementofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,hewasthevicepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,
heservedasadirector,theChiefFinancialOfficerandsecretaryoftheBoardofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasadirectorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasadirectorofOffcnEducationTechnologyCo.,Ltd.Ms.YiZiting,bornin1974,isaChinesecitizenandhasnopermanentresidencyabroad.Shehasamaster’sdegree.Ms.YiZitingswitchedhercareerpathtoeducationindustryintheyearof2011.From1994to2004,sheservedsuccessivelyasatechnicianandanassistantengineerinZhuzhouSmeltingGroupCo.,Ltd.From2007to2011,shewastheheadoflegaldepartmentofChinaCropProtectionIndustryAssociation(CCPIA).Startingfrom2011,Ms.YiZitinghasbeensuccessivelyholdingthepostsofheadofTeachingEvaluationandManagementCommittee,assistantpresident,andassociatepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,sheservedasadirectorofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,shehasservedasthechairmanoftheSupervisoryCommitteeofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,shehasservedasadirectorofOffcnEducationTechnologyCo.,Ltd.Mr.WangQiang,bornin1977,isaChinesecitizenandhasnopermanentresidencyabroad.HegraduatedfromtheDepartmentofLaws,PekingUniversityin2001andreceivedhisbachelor’sdegreeinlaw.HewasonceemployedbyGuangzhouNetEaseInformationTechnologyCo.,LtdasthechiefeditorofEconomyChannelandassistanttopresidentofmarketing.FromDecember2015toDecember2018,heservedasanindependentdirectorofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromFebruary2019topresent,hehasservedasanindependentdirectorofOffcnEducationTechnologyCo.,Ltd.Ms.TongYan,bornin1977,isaChinesecitizenandhasnopermanentresidencyabroad.ShehasadoctoraldegreeandownstheCertifiedPublicAccountantQualificationCertificate.From2006topresent,Ms.TongYanhasbeenworkingfortheBeijingInstituteofTechnologyandcurrentlysheisaprofessoroftheinstitute.FromMarch2016topresent,shehasservedasanindependentdirectorofHebeiJinniuChemicalCorporationLtd.FromFebruary2019topresent,shehasservedasanindependentdirectorofOffcnEducationTechnologyCo.,Ltd.FromJune9,2020topresent,shehasservedasanindependentdirectorofFinancialStreetPropertyManagementCo.,Ltd.Mr.ZhangXuanming,bornin1978,isaChinesecitizenandhasnopermanentresidencyabroad.Hehasamaster’sdegreeandisqualifiedasaChineselawyer.From2003to2005,heworkedasafull-timelawyerinBeijingWeizhengLawFirm.From2005to2010,hewasapartnerofBeijingHechuanLawFirm.FromApril
2017topresent,hehasservedasthedirectorofBeijingMeixinLawFirm.FromJuly2013topresent,hehasservedasasupervisorofTonglingFriendshipRealEstateCo.,Ltd.FromOctober2015topresent,hehasservedasasupervisorofHebeiXinmiaoTourismDevelopmentCo.,Ltd.FromFebruary2019topresent,hehasservedasanindependentdirectorofOffcnEducationTechnologyCo.,Ltd.
2.SupervisorsMs.YuHongwei,bornin1966,isaChinesecitizenandhasnopermanentresidencyabroad.Shehasabachelor’sdegree.From1985to1995,Ms.YuHongweiservedasaNavalOfficer.From1995to2002,shewasthechiefrepresentativeofGATXBeijingOffice.From2002to2008,sheservedastheadministrativedirectoroftheZhuoyueCollegeintheUniversityofInternationalBusinessandEconomics.From2008to2013,sheworkedfortheChineseAcademyofScienceasthedirectorofSeniorTalentsDepartmentinthePersonnelExchangeandDevelopmentCenter,thenastheDeputyPartySecretary,andChairmanofTradeUnion.From2013toOctober2015,Ms.YuHongweiservedasadepartmentdirectorofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,shesuccessivelyheldthepostsofdepartmentdirector,thesecretaryofPartyBranchandthesecretaryofPartyCommitteeofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,shehasservedasthesecretaryofPartyCommitteeofBeijingOffcnEducationTechnologyCo.,Ltd.FromJuly2019topresent,shehasservedastheChairmanoftheSupervisoryCommitteeofOffcnEducationTechnologyCo.,Ltd.Mr.HeDi,bornin1977,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedhisbachelor’sdegreeinlawfromtheDepartmentofPoliticalScienceandPublicAdministration,PekingUniversityin1999.Hisworkexperienceineducationindustrystartedfromtheyearof2010.From1999to2000,hewastheaccountmanagerofBeijingImpressionAdvertisingCo.,Ltd.From2000to2002,hewasemployedastheaccountdirectorofBeijingBluefocusConsultingCompany.From2002to2004,heworkedastheaccountdirectorforShanghaiHighteamInternet(China)ConsultingCo.,Ltd.From2004to2005,heservedastheaccountdirectorofBeijingInsightCo.,Ltd.From2005to2009,heservedasthesenioraccountdirectorofOgilvyChina.From2009to2010,heservedasthepresident’sassistantofAnbangInsuranceGroup.From2010toNovember2015,heservedasanassistantpresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heworkedasasupervisorofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasasupervisorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasasupervisorofOffcnEducationTechnologyCo.,Ltd.Ms.LiWen,bornin1979,isaChinesecitizenandhasnopermanentresidencyabroad.Sheownsamaster’s
degreeandisqualifiedasaChineselawyer.Shestartedherjourneyineducationindustryintheyearof2007.From2007to2010,sheworkedasateacherandR&DstaffinBeijingOffcnOnlineEducationTechnologyCo.,Ltd.Startingfrom2010,shefirstlyservedasateacher,thenthedean’sassistantandsuccessivelythedeanofInterviewTrainingDepartment.FromNovember2015toDecember2018,sheservedasthesupervisorrepresentingemployeesofBeijingOffcnEducationTechnologyCo.,Ltd.FromDecember2018topresent,shehasservedasasupervisorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,shehasservedasasupervisorofOffcnEducationTechnologyCo.,Ltd.
3.SeniorExecutivesPleaseseetheaboveforMr.WangZhendong’sresume.Mr.WangXuejun,bornin1963,isaChinesecitizenandhasnopermanentresidencyabroad.Holdingabachelor’sdegree,hestartedworkingineducationindustryintheyearof2004.From1985to1995,heworkedasanengineerinTianjinMachineandToolFactory.From1995to1999,heservedastheoperatingdirectorofTianjinGrinderFactory.From2001to2004,hewasemployedasthegeneralmanagerofZhongxingElectromechanicalCo.,Ltd.inTianjinDevelopmentZone.From2004to2010,hewasinchargeofregionalmarketingofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,heservedasanassistantpresidentandsuccessivelythevicepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heperformedhisdutyasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,Mr.WangXuejunhasservedasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasthedeputygeneralmanagerofOffcnEducationTechnologyCo.,Ltd.Mr.HeYouli,bornin1975,isaChinesecitizenandhasnopermanentresidencyabroad.Hestartedworkingineducationindustryintheyearof1999.From2005to2010,hewasinchargeofmarketingoperationsofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,heservedasanassistantpresidentandsuccessivelythevicepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,hewasemployedasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasthedeputygeneralmanagerofOffcnEducationTechnologyCo.,Ltd.Mr.LuoXue,bornin1968,isaChinesecitizenandhasnopermanentresidencyabroad.Heownsabachelor’sdegreeandisacertifiedpublicaccountant,aregisteredassetappraiserandanintermediateaccountant.FromJuly1991toSeptember2000,heworkedattheZhongyuanOilFieldofSinopec.FromOctober2000toJanuary2011,hewassuccessivelyemployedbyBeijingPan-ChinaCPALtd.,DeloitteToucheTohmatsuCPALtd.andReandaCertifiedPublicAccountantsLLP,whereheheldthepostsfromauditmanagertotechnicalpartner.FromFebruary2011toAugust2014,heservedasthefinancialdirectorandsecretaryoftheBoardofCortechDrillingEquipmentLtd.FromAugust2014toDecember2016,hewasemployedastheCFOofLandOceanEnergyServicesCo.,Ltd.From2017toDecember2018,hewastheheadofthefinancialdepartmentofBeijingOffcn
EducationTechnologyStockCo.,Ltd.FromFebruary2019topresent,hehasservedasthefinancialdirectorofOffcnEducationTechnologyCo.,Ltd.Mr.GuiHongzhi,bornin1971,isaChinesecitizenandhasnopermanentresidencyabroad.HeownsanMBAdegree.FromApril2003toAugust2006,heworkedattheCREDHoldingCo.,Ltd.asthemanagerofSecuritiesDepartment.Inthesamecompany,heservedasthedeputygeneralmanagerandsecretaryoftheBoardfromAugust2006toJuly2015.FromSeptember2015toDecember2018,hewasemployedasheadofSecuritiesAffairsDepartmentbyBeijingOffcnEducationTechnologyStockCo.,Ltd.FromFebruary2019topresent,hehasservedasthedeputygeneralmanagerandsecretaryoftheBoardofOffcnEducationTechnologyCo.,Ltd.Positionsheldinshareholdersentities:
√Applicable□Notapplicable
Name
| Name | Nameoftheshareholderentity | Positionintheshareholderentity | Startdate | Enddate | Receivespaymentfromtheshareholderentity？ |
| WangZhendong | BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | ExecutivePartner | April10,2018 | — | N/A |
| Particularsaboutholdingpositioninshareholdersentities | None | ||||
Employmentinothercompanies
√Applicable□Notapplicable
| Name | Nameofthecompany | Positionsheldinthecompany | Startdate | Enddate | Receivespaymentfromthecompany？ |
| LiYongxin | BeijingOffcnEducationTechnologyCo.,Ltd | ChairmanoftheBoard | December27,2018 | — | Yes |
| LiYongxin | KunmingWuhuaOffcnTrainingSchool | Director | January18,2015 | — | N/A |
| LiYongxin | BeijingOffcnFutureGroupCo.,Ltd. | Supervisor | June13,2019 | — | N/A |
| LiYongxin | YanyuanalumniInvestmentManagementCo.,Ltd. | Supervisor | January21,2019 | — | N/A |
| LiYongxin | BeijingHaidianOffcnTrainingSchool | Director | July22,2009 | — | N/A |
| LiYongxin | BeijingHaidianBaoquanFinancialTrainingCenter | Councilmember | May19,2014 | — | N/A |
LiYongxin
| LiYongxin | UrumqiShayibakeOffcnTrainingCenter | Councilmember | January13,2014 | — | N/A |
| ShiLei | BeijingOffcnEducationTechnologyCo.,Ltd | Director | December27,2018 | — | Yes |
| ShiLei | HainanHuiyouFilm&TVTechnologyCo.,Ltd. | Director | March10,2017 | — | N/A |
| ShiLei | TaiyuanHi-TechZoneOffcnTrainingSchool | Councilmember | March4,2013 | — | N/A |
| ShiLei | UrumqiShayibakeOffcnTrainingCenter | Councilmember | January13,2014 | — | N/A |
| WangZhendong | BeijingOffcnEducationTechnologyCo.,Ltd | Director | December27,2018 | — | Yes |
| WangZhendong | BeijingXindezhiyuanEnterpriseManagementConsultancyCo.,Ltd. | Supervisor | August6,2014 | — | N/A |
| WangZhendong | BeijingOffcnXinzhiyuNetworkTechnologyCo.,Ltd. | Supervisor | May8,2012 | — | N/A |
| WangZhendong | BeijingOffcnFutureEducationTechnologyCo.,Ltd | Executivedirector,manager | March25,2020 | — | N/A |
| WangZhendong | TaiyuanHi-TechZoneOffcnTrainingSchool | Councilmember | March4,2013 | — | N/A |
| WangZhendong | TangshanLunanOffcnTrainingSchool | Councilmember | March01,2013 | — | N/A |
| WangZhendong | UrumqiShayibakeOffcnTrainingSchool | Councilmember | January13,2014 | — | N/A |
| TongYan | BeijingInstituteofTechnology | Professor | July01,2016 | — | Yes |
| TongYan | HebeiJinniuChemicalIndustryCo.,Ltd | Independentdirector | March16,2016 | — | Yes |
| TongYan | BeijingInteractiveNetworkTechnologyCo.,Ltd. | Independentdirector | October25,2019 | — | Yes |
TongYan
| TongYan | ChinaFundManagementCo.,Ltd. | Independentdirector | July16,2020 | — | Yes |
| TongYan | FinancialStreetPropertyManagementCo.,Ltd. | Independentdirector | June9,2020 | — | Yes |
| HeDi | BeijingOffcnEducationTechnologyCo.,Ltd | Supervisor | December27,2018 | — | Yes |
| HeDi | BeijingOffcnFutureEducationTechnologyCo.,Ltd | Supervisor | March25,2020 | — | N/A |
| HeDi | TianjinHexiOffcnTrainingSchoolCo.,Ltd. | Director | July15,2019 | — | N/A |
| HeDi | YuxiOffcnTrainingSchoolCo.,Ltd. | Director | December24,2018 | — | N/A |
| ZhangXuanming | HebeiXinmiaoTourismDevelopmentCo.,Ltd | Supervisor | October28,2015 | — | Yes |
| YiZiting | BeijingOffcnEducationTechnologyCo.,Ltd | ChairmanoftheSupervisoryCommittee | December27,2018 | — | Yes |
| LiWen | BeijingOffcnEducationTechnologyCo.,Ltd | Supervisor | December27,2018 | — | Yes |
| Particularsaboutholdingpositionsinothercompanies | None | ||||
Detailsoncompany’scurrentanddismisseddirectors,supervisors,andseniorexecutivesduringthereportingperiodwhogotpunishmentsfromSecuritiesRegulatoryInstitutioninthepastthreeyears
□Applicable√NotapplicableSectionIV.RemunerationforDirectors,SupervisorsandSeniorExecutives
Thedecision-makingprocedure,determinationbasisandactualpaymentofremunerationfordirectors,supervisorsandseniorexecutivesInordertofurtherimprovetheremunerationsystemfortheCompany’sdirectors,supervisors,andseniorexecutives,andfullymotivatetheenthusiasmforworkoftheCompany’sdirectors,supervisors,andseniorexecutives,theCompanyformulatedtheRegulationsofRemunerationSystemofDirectors,Supervisors,andSeniorExecutives.OnMarch30,2020,theshareholders’meetingreviewedandapprovedtheProposalonDeterminingtheRemunerationPlanintheyearof2020forDirectors,SupervisorsandSeniorExecutivesoftheCompany,whichfurtherclarifiedtheremunerationplanfordirectors,supervisorsandseniorexecutives.Theallowancesforindependentdirectorsareissuedquarterly.TheCompanydoesnotprovideseparate
allowancesforinternaldirectorsorinternalsupervisors.TheremunerationoftheCompany’sinternaldirectors,internalsupervisorsandseniorexecutivesisissuedaccordingtotheCompany’ssalarysystem.Remunerationofdirectors,supervisors,seniorexecutivesduringthereportingperiod:
Unit:10thousandyuan
Name
| Name | Position | Gender | Age | TenureStatus | Totalbefore-taxremunerationgainedfromtheCompany | WhethergainedremunerationfromtherelatedpartiesoftheCompany |
| LiYongxin | ChairmanoftheBoard | Male | 45 | Incumbent | 192.11 | N/A |
| WangZhendong | Director,generalmanager | Male | 45 | Incumbent | 169.11 | N/A |
| ShiLei | Director | Male | 45 | Incumbent | 168.34 | N/A |
| YiZiting | Director | Female | 47 | Incumbent | 123.22 | N/A |
| WangQiang | Independentdirector | Male | 44 | Incumbent | 12 | N/A |
| TongYan | Independentdirector | Female | 44 | Incumbent | 12 | N/A |
| ZhangXuanming | Independentdirector | Male | 43 | Incumbent | 12 | N/A |
| YuHongwei | ChairmanoftheSupervisoryCommittee | Female | 55 | Incumbent | 43 | N/A |
| HeDi | Supervisor | Male | 44 | Incumbent | 120.69 | N/A |
| LiWen | Supervisor | Female | 42 | Incumbent | 100.07 | N/A |
| WangXuejun | Deputygeneralmanager | Male | 58 | Incumbent | 167.34 | N/A |
| HeYouli | Deputygeneralmanager | Male | 46 | Incumbent | 168.72 | N/A |
| LuoXue | Chieffinancialofficer | Male | 53 | Incumbent | 102.5 | N/A |
| GuiHongzhi | SecretaryoftheBoard,deputygeneralmanager | Male | 50 | Incumbent | 101.15 | N/A |
| Total | -- | -- | -- | -- | 1,492.25 | -- |
EquityincentivesawardedtodirectorsandseniorexecutivesoftheCompanyduringthereportingperiod
□Applicable√Notapplicable
SectionV.EmployeesoftheCompany
1.Numberofemployees,roletype,andeducationalbackground
| Numberofcurrentemployeesoftheparentcompany(person) | 0 |
| Numberofcurrentemployeesofthemajorsubsidiaries(person) | 45,066 |
| Totalnumberofcurrentemployees(person) | 45,066 |
| TotalnumberofemployeesreceivingremunerationfromtheCompanyduringthereportingperiod(person) | 45,066 |
Numberofretiredemployeestobebornebytheparentcompanyandmajorsubsidiaries(person)
| Numberofretiredemployeestobebornebytheparentcompanyandmajorsubsidiaries(person) | 0 |
| Roletype | |
| Category | Number(person) |
| Managementpersonnel | 4,511 |
| R&Dpersonnel | 3,025 |
| Teachers | 18,863 |
| Customerservicepersonnel | 5,012 |
| Marketingpersonnel | 13,655 |
| Total | 45,066 |
| Educationalbackground | |
| Category | Number(person) |
| Master’sdegreeandabove | 6,569 |
| Bachelor’sdegree | 36,071 |
| PostsecondarySpecialisedCollege | 2,392 |
| SecondarySpecialisedSchoolandbelow | 34 |
| Total | 45,066 |
2.RemunerationpolicyDuringthereportingperiod,theCompany,basedonthepostvalue,setsalarydifferencescientificallyandfurtherimprovedthetargetmanagementandperformanceappraisalsystemofhumanresources.TheCompanyregularlyandcomprehensivelyevaluatedemployees’workingskills,valuesandtheirrecognitionofcorporateculturebyanevaluationmethodbasedonquantitativeindicatorsofperformanceandqualitativestandardstoensurethatboththeworkresultsandgrowthofemployeesweregivenattentionto.TheCompanyattractsandretainsitscoretalentsthroughadiversifiedperformance-orientedincentivemechanism,sothatthecorepersonnelcanbemorecloselyalignedwiththeinterestsoftheCompanyanditsshareholders.Inthisway,theCompany'slong-termoperatingperformanceisdriventogrowcontinuously.
3.TrainingplanDuringthereportingperiod,theCompanycontinuouslyinvestedhigh-qualityresourcesinoptimizingthetrainingsystemandenhancingthecapabilitiesoftheteachingteam.Employeesarewellsupportedwithknowledgeresourcesandabundantlearningchoicestodeveloptheirtalentsandcareers.UnderthenormalizationofCOVID-19preventionandcontrol,theCompanyacceleratedthetrendofonlinelearningforallstaff.By
integratingonlineandofflineresources,theplanofsharingthewholecurriculumsystemwithintheCompanyisrealizedandemployeesareempoweredwithmoreopportunitiestolearnandgrow.Intermsoftrainingorganizing,theCompanymobilizedhumanresourcesdepartmentbothattheheadquartersandbusinesssectorsaswellasmanagementpersonneltoensurethatthestafftrainingsarewellorganized.Thehumanresourcesdepartmentattheheadquartersisresponsibleforthe“planning,researchandcoordination”oftheCompany’soveralltraining,focusingontheconstructionoftheCompany’strainingresourcesandtrainingplatformaswellasthedesignandimplementationofkeytalenttrainingprojects.Thehumanresourcesdepartmentateachbusinesssectorisresponsiblefordiscoveringthetrainingneedsofemployees,providingtrainingsolutions,executingthetrainingplans,andfocusingonthedaily-basisoperationandtraininginitsbusinesssector.Managementpersonnelareresponsibleforemployees’ability-building,takingtrainingofteammembersaspartoftheirworktasks,soastodevelopmoretalentsfortheCompany.Inaddition,aimingatemployeeswithdifferentdevelopmentneeds,theCompanyactivelycarriedoutanumberoftrainingplanssuchas“Lumingtraining”,“Coretalentstraining”and“Managementtraining”,etc.Acomprehensivetrainingsystemforallstaffinallphasesisdevelopedtohelpemployeesfindtheirpathstothefutureandmeetabetterself.
4.Laboroutsourcing
□Applicable√Notapplicable
ChapterX.CorporateGovernance
SectionI.CorporateGovernanceDetailsDuringthereportingperiod,instrictaccordancewithrelevantlawsandregulations,andrulesandregulatorydocumentsfromsupervisionauthorities,i.e.CompanyLaw,SecuritiesLaw,CodeofCorporateGovernanceforListedCompaniesinChina,StockListingRulesofShenzhenStockExchange,andGuidelinesoftheShenzhenStockExchangefortheStandardOperationofListedCompanies,theCompanybasedonitsactualsituation,consistentlyimproveditscorporategovernancestructureandinternalcontrolsystem,andenhancedthelevelofcorporategovernance.TheCompany’soveralloperation,corporategovernancesystemandinformationdisclosureweresoundandstandardized.TheactualconditionsofcorporategovernancemettherequirementsoftheregulatorydocumentswithrespecttothecorporategovernanceoflistedcompaniesissuedbyCSRC.
1.ShareholdersandtheShareholders’GeneralMeetingInstrictaccordancewithArticlesofCorporationandRulesofProcedureforShareholders’GeneralMeetingsaswellasotherapplicableregulationsandrequirements,theCompanystandardizedthegathering,convening,deliberationsandvotingproceduresofitsshareholders’generalmeetingsandhiredlegaladviserstoissuelegalopinionsfortheshareholders’generalmeetings.TheCompanytreatsallshareholdersequally,especiallyensurestheminorityofshareholders’equalstatusguaranteed.Duringthereportingperiod,theCompanyconvenedfourshareholders’generalmeetingsintotal,andallresolutionsoftheshareholders’generalmeetingswerefaithfullyimplementedbytheboardofdirectors.
2.TherelationshipbetweentheCompanyandthecontrollingshareholdersThecontrollingshareholdersoftheCompanyexercisedtherightsandobligationsoftheinvestorsinstrictaccordancewithCompanyLaw.Duringthereportingperiod,therewasneitheranydirectorindirectinterferencewiththeCompany’sdecision-makingandoperationsbeyondtheShareholders’GeneralMeetingbythecontrollingshareholdersnorasituationwherethecontrollingshareholdersdamagedthelegitimaterightsandinterestsofothershareholdersofthelistedCompany.TheCompanyisindependentinpersonnel,assets,finance,institutions,business,andaccountingfromitscontrollingshareholderssothattheytakeresponsibilitiesandrisksindependently.Therewasneithersignificantrelated-partytransactionsbetweentheCompanyandthecontrollingshareholdersnorthesituationwherecontrollingshareholdersoccupiedthefundsofthelistedCompany,northelistedCompanyprovidedguaranteesforthecontrollingshareholdersortheirsubsidiaries.
3.DirectorsandtheBoardofDirectorsTheCompanyelectedcandidatesfortheBoardofDirectorsinstrictaccordancewithrelevantlawsandregulationsi.e.CompanyLawandArticlesofCorporation.ThenumberofdirectorsandcompositionoftheBoardofDirectorsmettherequirementsoflawsandregulations.TheBoardofDirectorsoftheCompanyconvenedBoardsessionsinstrictaccordancewiththerelevantprovisionsofArticlesofCorporation,WorkingSystemfor
IndependentDirectorsandRulesofProcedurefortheBoardofDirectors.AlldirectorsoftheCompanyattendedtheBoardsessionsontime,fulfilledtheirdutiesdiligently,scrupulouslyreviewedvariousproposalsandmadescientificandreasonabledecisionsonmajormattersoftheCompanytoeffectivelysafeguardtheinterestsoftheCompanyandthelegitimaterightsandinterestsofallshareholders.UndertheBoardofDirectorsoftheCompanyarefourprofessionalcommittees:StrategyandInvestmentCommittee,NominationCommittee,AuditCommitteeandRemunerationandAppraisalCommittee.Withclearlydefinedpowersandresponsibilitiesandeffectiveoperations,eachcommitteegavefullplaytoitsprofessionalfunctionsandprovidedscientificandprofessionalopinionsforthedecision-makingoftheBoardofDirectors.
4.SupervisorsandtheSupervisoryCommitteeTheCompanyelectedcandidatesfortheSupervisoryCommitteeinstrictaccordancewithrelevantlawsandregulationsi.e.CompanyLawandArticlesofCorporation.ThenumberofsupervisorsandcompositionoftheSupervisoryCommitteemettherequirementsoflawsandregulations.TheSupervisoryCommitteeoftheCompanyconveneditssessionsinstrictaccordancewiththerelevantprovisionsofArticlesofCorporation,RulesofProcedurefortheSupervisoryCommittee,andotherrelatedregulations.AllsupervisorsoftheCompanyattendedthesupervisorysessionsontime,fulfilledtheirdutiesfaithfully,providedsupervisionandopinionsformajorissues,related-partytransactions,financialstatus,etc.,andsafeguardedlegitimaterightsandinterestsoftheCompanyandshareholders.
5.RelevantstakeholdersTheCompanyfullyrespectandsafeguardthelegitimaterightsandinterestsofrelevantstakeholders,constantlystrengthentheawarenessofsocialresponsibilityandenhancecommunicationwithallpartiestocoordinatetheinterestsofthesociety,government,shareholders,Company,andemployees,andbalancetheinterestsoftheshareholders,employeesandsociety.TheCompanyadheredtotheprincipleofmutualbenefitsandwin-winresultswithrelevantstakeholdersandjointlypromotedtheCompany’sharmonious,steadyandhealthydevelopment.
6.InformationdisclosureandtransparencyInstrictaccordancewiththerequirementsofRegulationsconcerningInformationDisclosureManagement,RegulationsconcerningInvestorRelationsManagementandRegulationsofRegistrationandManagementSystemonLearnersofInsiderInformation,theCompanydesignatestheSecretaryoftheBoardtoberesponsibleforinformationdisclosureandreceivingshareholders’visitsandconsultationsandtodisclosetherelevantinformationinanauthentic,accurate,complete,timelyandfairmannerinaccordancewithrelevantregulationssoastoensurethatallshareholdersoftheCompanycanhaveequalaccesstotheinformation.
7.PerformanceappraisalandincentivesDuringthereportingperiod,theCompanyconstantlyimprovedworkingperformanceevaluationsystemandincentivemechanism.TheappointmentandremunerationoftheCompany’sdirectors,supervisorsandseniorexecutiveswereopenandtransparent,whichmettherequirementsofrelevantlawsandregulations.TheCompany
regularlyandcomprehensivelyevaluatedemployees’workingskills,valuesandtheirrecognitionofcorporateculturebyanevaluationmethodbasedonquantitativeindicatorsofperformanceandqualitativestandardstoensurethatboththeworkresultsandgrowthofemployeesweregivenattentionto.
8.InvestorrelationsmanagementDuringthereportingperiod,theCompanyconstantlystrengthenedthemanagementofinvestorrelationsandsafeguardedthelegitimaterightsandinterestsoftheCompany’sshareholders.TheCompanydesignatestheSecretaryoftheBoardastheheadofinvestorrelationsmanagementtoorganizeandimplementthedailymanagementofinvestorrelations,promptlyanswerinvestors’questionsthroughphonecalls,emails,interactiveplatformandonlinebriefingsofbusinessperformance,whichensuresthatalltheinvestorshaveequalaccesstotheCompany’sinformationandfullyguaranteedinvestors’rightstoknow.ArethereanymaterialdifferencesbetweentheCompany’sactualgovernancestatusandtheCompanyLawandrelevantrulesofCSRC?
□Yes√NoThereisnomaterialdifferencebetweentheCompany’sactualgovernancestatusandtheCompanyLawandrelevantrulesofCSRC.
SectionII.DetailsoftheCompany’sseparationfromthecontrollingshareholderwithrespecttobusiness,personnel,assets,organization,andfinancialaffairsTheCompanystandardizeditsoperation,establishedandimprovedcorporategovernancestructureinstrictaccordancewithCompanyLaw,SecuritiesLaw,ArticlesofCorporation,andotherrelevantlawsandregulations.TheCompanyisindependentinbusiness,personnel,assets,organizationandfinanceaffairsfromthecontrollingshareholders,actualcontrollersandotherenterprisesundertheircontrol,andiscapableofoperatingindependentlywithitscompleteandindependentbusiness.
1.Businessindependence:Withindependentandcompletebusinessstructure,theCompanyiscapableofrunningmarket-orientedbusinessindependently.ThereisnohorizontalcompetitionamongtheCompany,controllingshareholders,andotherenterprisesundertheircontrol.
2.Personnelindependence:TheCompanyhasindependentpersonnel.Ithassetupvariousindependentdepartments,includingR&D,sales,administration,financeandoperationmanagementdivisions,andestablishedindependenthumanresourcesandpayrollmanagementsystem.Thedirectors,supervisorsandseniorexecutivesoftheCompanydonotholdanypostsprohibitedbyregulationsinothercompanieswiththesameorsimilarbusinesstotheCompany’s.
3.AssetsCompleteness:ThepropertyrelationsbetweentheCompanyandthecontrollingshareholdersareclear.Noassets,funds,orotherresourcesownedbytheCompanyareillegallyoccupiedorcontrolledbythecontrollingshareholders.
4.Institutionalindependence:TheCompanyhassetupasoundorganizationsystem.GeneralMeetingofShareholders,BoardofDirectors,SupervisoryCommittee,managementandallthefunctionaldepartments
operateindependentlyfromeachother.TheCompanyaswellestablishedcorrespondinginternalmanagementandcontrolsystemtomakeeachdepartmenthaveclearlydefinedresponsibilities,performitsowndutiesandcooperatewitheachother,thuscomposinganorganicwholeandguaranteeingthelegaloperationoftheCompany.ThereisnosubordinaterelationshipbetweentheCompany’sinstitutionsandthefunctionaldepartmentsofthecontrollingshareholders.
5.Financialindependence:TheCompanyhassetupcompleteandindependentfinancialdepartmentequippedwithadequatefull-timefinancialaccountants,establishedindependentaccountingcalculationsystemandfinancialmanagementsystem,andindependentlyopenedbankaccounts,paidtaxesandmadefinancialdecisions.ThereisnointerferencefromthecontrollingshareholdersinthefinancialmanagementoftheCompany.SectionIII.HorizontalCompetition
□Applicable√Notapplicable
SectionIV.Annualgeneralmeetingandextraordinarygeneralmeetingsconvenedduringthereportingperiod
1.Particularsabouttheshareholders’generalmeetingduringthereportingperiod
Session
| Session | Type | InvestorParticipation% | Conveningdate | Disclosuredate | Disclosureindex |
| 2020FirstExtraordinaryGeneralMeeting | ExtraordinaryGeneralMeeting | 78.29% | January6,2020 | January7,2020 | Fordetails,refertotheAnnouncementonResolutionsoftheFirstExtraordinaryGeneralMeetingof2020(No.2020-001)disclosedonwww.cninfo.com.cn. |
| 2019AnnualGeneralMeeting | AnnualGeneralMeeting | 79.66% | March30,2020 | March31,2020 | Fordetails,refertotheAnnouncementonResolutionsoftheAnnualGeneralMeetingof2019(No.2020-022)disclosedonwww.cninfo.com.cn. |
| 2020SecondExtraordinaryGeneralMeeting | ExtraordinaryGeneralMeeting | 78.39% | November26,2020 | November27,2020 | Fordetails,refertotheAnnouncementonResolutionsoftheSecondExtraordinaryGeneralMeetingof2020(No.2020-044)disclosedonwww.cninfo.com.cn. |
| 2020ThirdExtraordinaryGeneralMeeting | ExtraordinaryGeneralMeeting | 78.76% | December9,2020 | December10,2020 | Fordetails,refertotheAnnouncementonResolutionsoftheThirdExtraordinaryGeneralMeetingof2020(No.2020-047)disclosedonwww.cninfo.com.cn. |
2.Extraordinarygeneralmeetingsrequestedbypreferredshareholderswithrestoredvotingrights:
□Applicable√Notapplicable
SectionV.Performanceofdutiesbyindependentdirectorsduringthereportingperiod
1.Attendanceofindependentdirectorsatboardmeetingsandshareholders’generalmeetings
Attendanceofindependentdirectorsatboardmeetingsandshareholder’sgeneralmeetings
| Attendanceofindependentdirectorsatboardmeetingsandshareholder’sgeneralmeetings | |||||||
| Independentdirector | Sessionsrequiredtoattendduringthereportingperiod(times) | Attendanceinperson(times) | Attendancebywayoftelecommunication(times) | Entrustedpresence(times) | Absence(times) | Non-attendanceInpersonfortwoconsecutivetimes | Attendanceinshareholders’meeting |
| WangQiang | 8 | 7 | 1 | 0 | 0 | N/A | 4 |
| TongYan | 8 | 0 | 8 | 0 | 0 | N/A | 0 |
| ZhangXuanming | 8 | 0 | 8 | 0 | 0 | N/A | 2 |
Explanationofnon-attendanceinpersonfortwoconsecutivetimes
√Notapplicable
2.ParticularsaboutindependentdirectorsobjectingtorelevanteventsoftheCompanyWerethereanyobjectionsonrelevantissuesoftheCompanyfromindependentdirectors?
□Yes√NoDuringthereportingperiod,therewerenoobjectionsonrelevantissuesoftheCompanyfromindependentdirectors.
3.OtherexplanationsontheperformanceofdutiesbyindependentdirectorsWasadvicetotheCompanyfromindependentdirectorsadopted?
√Yes□NoExplanationofadviceofindependentdirectorsfortheCompanybeingadoptedornotbeingadoptedDuringthereportingperiod,theCompany’sindependentdirectorswereabletoscrupulouslyexercisetheirrightsandperformtheirdutiesasindependentdirectors.TheycarefullyreviewedtheissuesraisedbytheBoardofDirectorsandtheprofessionalcommittees.Withrichprofessionalexperience,theindependentdirectorsoftheCompanyexpressedtheirthoughtful,rationalandindependentopinionsoneachissuethatrequiredtheirjudgements.TheyalsoputforwardmanyinstructiveandreasonablesuggestionsontheCompany’sdevelopmentstrategyandstandardizedoperation,whichplayedacatalyticroleinscientificdecision-makingoftheBoardofDirectors.Formoredetails,pleaserefertothe2020IndependentDirectors’DebriefingReportpublishedonwww.cninfo.comonthesamedayasthisannualreport.
SectionVI．PerformanceofdutiesbyprofessionalcommitteesaffiliatedtotheBoardduringthereportingperiodUndertheBoardofDirectorsoftheCompany,therearefourprofessionalcommittees:AuditCommittee,RemunerationandAppraisalCommittee,StrategyandInvestmentCommitteeandNominationCommittee.
1.AuditCommitteeDuringthereportingperiod,theAuditCommitteecarefullyreviewedtheCompany’speriodicreports,regularauditsoftheinternalauditdepartment,specialauditwork,andselectionofauditinstitutions,etc.,understoodtheCompany’sfinancialstatusandoperatingconditionsindetails,andstrictlyreviewedtheCompany’sinternalcontrolsystemsanditsimplementation.IteffectivelyperformeditsdutiesandprovidedguidanceandsupervisionontheCompany’sfinancialstatusandoperatingconditions.
2.RemunerationandAppraisalCommitteeDuringthereportingperiod,theBoardofDirectorsformulatedtheRegulationsofRemunerationSystemofDirectors,Supervisors,andSeniorExecutives.TheRemunerationandAppraisalCommitteeprovidedprofessionalguidanceonitsformulation,whichpromotedthesoundnessandimprovementoftheCompany’sremunerationsystem.
3.StrategyandInvestmentCommitteeDuringthereportingperiod,theStrategyandInvestmentCommitteeactivelyperformeditsdutiesinaccordancewithCompanyLaw,ArticlesofCorporation,WorkingRulesoftheStrategyandInvestmentCommitteeoftheBoardofDirectors,andotherrelevantregulations.
4.NominationCommitteeDuringthereportingperiod,theNominationCommitteeoftheBoardofDirectorsconductedacarefulreviewoftheperformanceoftheprofessionalcommitteesundertheboardofdirectorsinaccordancewithCompanyLaw,ArticlesofCorporation,andWorkingRulesoftheNominationCommitteeoftheBoardofDirectors,andactuallyfulfilledthedutiesoftheNominationCommittee.
SectionVII.PerformanceofdutiesbytheSupervisoryCommittee
WerethereanyrisksintheCompanyaccordingtothesupervisionoftheSupervisoryCommitteeduringthereportingperiod?
□Yes√NoTheSupervisoryCommitteeraisednoobjectiontomattersundersupervisionduringthereportingperiod.
SectionVIII.AssessmentandincentivemechanismforseniorexecutivesDuringthereportingperiod,theRemunerationandAppraisalCommitteeoftheCompany’sBoardofDirectorsconductedacomprehensiveevaluationoftheperformanceofseniorexecutives.TheCompany’smanagementteamhasfairlyfulfilledthebusinessplanningforthisyearaccordingtothestrategicplanningforlong-term
development.TheCompany’scurrentevaluationandincentivemechanismwhichisinlinewiththecurrentstatusoftheCompanyandrelatedlaws,regulationsandArticlesofCorporationisoperatingwell.SectionIX.Evaluationreportoninternalcontrols
1.ParticularsaboutmaterialweaknessfoundintheCompany’sinternalcontrolduringthereportingperiod
□Yes√No
2.Self-evaluationreportoninternalcontrols
Disclosuredateoffulltextofself-evaluationreportoninternalcontrol
| Disclosuredateoffulltextofself-evaluationreportoninternalcontrol | April29,2021 | |
| Disclosureindexoffulltextofself-evaluationreportoninternalcontrol | www.cninfo.com.cn(OffcnEducationTechnologyCo.,Ltd.2020Self-evaluationReportonInternalControl) | |
| ProportionofassetsevaluatedintotalassetsstatedintheconsolidatedfinancialstatementoftheCompany | 100.00% | |
| ProportionofoperatingincomeevaluatedintotaloperatingincomestatedintheconsolidatedfinancialstatementoftheCompany | 100.00% | |
| DeficiencyStandards | ||
| Category | FinancialReport | Non-FinancialReport |
| Qualitativecriteria | MaterialWeakness:onedeficiency,oracombinationofdeficienciesininternalcontrolthatmayresultinasignificantdeviationfromthecontrolobjectivesoftheCompany.Thosewiththefollowingcharacteristicsshouldberecognizedasmaterialweakness:①Fraudofdirectors,supervisorsandseniorexecutives;②Correctionofmisstatementinpreviouslyissuedfinancialstatements;③MaterialmisstatementincurrentfinancialstatementsnotdetectedbytheCompany’sinternalcontrol;④InvalidsupervisionofinternalcontroloverfinancialreportingbytheCompany’sAuditCommitteeandinternalauditdepartment.SignificantDeficiency:onedeficiency,oracombinationofdeficienciesininternalcontrolthatislessseverethanamaterialweakness,yetmaystillresultinadeviation | MaterialWeakness:①SevereviolationsofnationallawsandregulationsintheCompany’soperation;②Negativenewsfrequentlydisclosedbythemediaandthenegativeimpacthasnotbeeneliminated;③Seriouslossofmiddleandseniormanagementpersonnelandseniortechnicalpersonnel;④Lackorineffectivenessofpolicyformajorbusiness;⑤NorectificationofthematerialweaknessesorsignificantdeficienciesoftheCompany’sinternalcontrol.SignificantDeficiency:onedeficiency,oracombinationofdeficienciesininternal |
fromcontrolobjectivesoftheCompany.ControllableDeficiency:Otherinternalcontroldeficienciesthatdonotmeetthestandardsofmaterialweaknessorsignificantdeficiency.
| fromcontrolobjectivesoftheCompany.ControllableDeficiency:Otherinternalcontroldeficienciesthatdonotmeetthestandardsofmaterialweaknessorsignificantdeficiency. | controlthatislesssevereandhasminoreconomicconsequencesthanamaterialweakness,yetmaystillresultinadeviationfromcontrolobjectivesoftheCompany.ControllableDeficiency:Otherinternalcontroldeficienciesthatdonotmeetthestandardsofmaterialweaknessorsignificantdeficiency. | |
| Quantitativecriteria | MaterialWeakness:Misstatementsaccountformorethan5%oftotalprofits.SignificantDeficiency:Misstatementsaccountfor2%to5%(including5%)oftotalprofits.ControllableDeficiency:Misstatementsaccountforlessthan2%(including2%)oftotalprofits. | Refertothequantitativecriteriafortheevaluationofinternalcontroldeficienciesinfinancialreports. |
| Numberofmaterialweaknessesinthefinancialreport(number) | 0 | |
| Numberofmaterialweaknessesinthenone-financialreport(number) | 0 | |
| Numberofsignificantdeficienciesinthefinancialreport(number) | 0 | |
| Numberofsignificantdeficienciesinthenon-financialreport(number) | 0 | |
SectionX.AuditReportorAssuranceReportonInternalControls
AssuranceReportonInternalControls
AuditopinionintheAssuranceReportonInternalControlsUptothedateofDecember31,2020，OffcnEdumaintainedeffectiveinternalcontrolsrelatedtofinancialstatementsinallmajoraspectsinaccordancewiththeBasicStandardsforEnterpriseInternalControlandrelatedregulations.
| Disclosureofassurancereportoninternalcontrols | Disclosed |
| Disclosuredateofthefulltextoftheassurancereportoninternalcontrols | April29,2021 |
DisclosureIndexofthefulltextofassurancereportoninternalcontrols
| DisclosureIndexofthefulltextofassurancereportoninternalcontrols | www.cninfo.com.cn(OffcnEducationTechnologyCo.,Ltd.2020AssuranceReportonInternalControls) |
| Opiniontypeoftheassurancereportoninternalcontrols | Standardunqualifiedopinion |
| Materialweaknessinnon-financialreports | None |
DidtheaccountingfirmissueanAssuranceReportonInternalControlswithnon-standardopinion
□Yes√NoIstheAssuranceReportonInternalControlsfromtheaccountingfirmconsistentwiththeSelf-evaluationReportfromtheBoard
√Yes□No
ChapterXI.CorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?No
ChapterXII.FinancialStatements
SectionI.Auditor’sReport
AuditOpinion
| AuditOpinion | Unmodifiedunqualifiedauditopinion |
| AuditReportsign-offDate | April28th,2021 |
| AuditInstitutionName | BakerTillyChinaCertifiedPublicAccountants |
| AuditReportNumber | BakerTillyChina[2021]No.16354 |
| CertifiedPublicAccountsName | ZhouBaiming,ShenXu |
Auditor’sReport
BakerTillyChina[2021]No.16354
TotheShareholdersofOffcnEducationTechnologyCo.,Ltd.,I.Opinion
WehaveauditedthefinancialstatementsofOffcnEducationTechnologyCo.,Ltd.(hereinafterreferredtoas“OffcnEducation”or“theCompany”),whichcomprisestheconsolidatedandcompany'sbalancesheetsasatDecember31,2020,andtheconsolidatedandcompany'sincomestatements,theconsolidatedandcompany'sstatementofcashflowsandtheconsolidatedandcompany'sstatementsofchangesinowners'equityfortheyearthenended,andthenotestothefinancialstatements.Inouropinion,thefinancialstatementsoftheCompanypresentfairly,inallmaterialrespects,theconsolidatedandcompany’sfinancialpositionasatDecember31,2020,andtheconsolidatedandcompany’sresultofoperationsandcashflowsfortheyearendedinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises.II.Basisofopinion
WeconductedourauditinaccordancewithChinaStandardsonAuditing(“CAS”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiessectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Cod”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
KeyAuditMatters
| KeyAuditMatters | HowourauditaddressedtheKeyAuditMatter |
| Recognitionofrevenue | |
| Suchasnotestofinancialstatements“TheCompany’sSignificantAccountingPoliciesandAccountingEstimates”comments(39)andthe“NotesToConsolidatedFinancialStatements”comments(61).Educationandtrainingrevenueaccountedfor99.43%oftheCompany'soperatingrevenuein2020.TheCompany’srevenuemainlyincludesordinaryclassrevenueandagreementclassrevenue.Whentheordinaryclassface-to-facetrainingserviceiscompleted,allthetrainingfeesreceivedinadvancearerecognizedasrevenue.Revenuefromonlinetraininginordinaryclassesisrecognizedonastraight-linebasisduringthevalidityperiodoftheserviceprovided.Non-refundableportionofrevenuefromagreementclassisrecognizedasrevenueuponcompletionoftrainingservices;Accordingtotheagreement,therefundpartisrecognizedasrevenuewhenthenon-refundableconditionsaremet.Inviewofthesignificantamountofeducationandtrainingrevenue,itisthemainsourceoftheCompany’sprofits.Thereisfrequentoccurrenceoftransactions,andtheriskofmisstatementishigh.Therefore,weidentifiedtheCompany’seducationandtrainingrevenueasakeyauditmatter. | Inresponsetothekeyauditmatter,weperformedtheproceduresasfollows:1.Understoodandtestedinternalcontrolsrelatingtorecognitionofrevenueandevaluatedtheeffectivenessofrelatedinternalcontrols.2.Understoodtherevenuerecognitionpoliciesofcomparablecompaniesinthesameindustry,discussedthecharacteristicsoftrainingbusinesswithmanagement,checkedbusinesscontracts,identifycontracttermsandconditionsrelatedtoeducationandtrainingservices,andevaluatedtheappropriatenessofrevenuerecognitionpolicies.3.Implementedsubstantiveanalysisproceduresforrevenueandgrossprofitmarginduringthereportingperiod,evaluatedtheoverallrationalityofrevenue.4.Selectedsamplesoftherevenueconfirmedduringthereportingperiod,checkedthereceipts,bankflow,contracts,examinationannouncementandrefunds,andevaluatedwhethertherelevantrevenueconfirmationisinlinewiththeCompany’srevenuerecognitionaccountingpolicy.5.Fortheeducationandtrainingrevenueitemsconfirmedbeforeandafterthebalancesheetdate,selectedsamples,checkedthesupportingdocumentsforrevenuerecognition,andevaluatedwhethertheyarerecordedinthecorrectaccountingperiod. |
IV.OtherInformation
ManagementoftheCompany(hereinafterreferredtoasthemanagement)isresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedin2019annualreportoftheCompanyotherthanthefinancialstatementsandourauditor’sreportthereon.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatements
Themanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveatrueandfairviewin
accordancewithAccountingStandardsforBusinessEnterprisesanddesigning,implementingandmaintaininginternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendtoliquidatetheCompanyortoceaseoperationsorhavenorealisticalternativebuttodoso.ThosechargedwithgovernanceareresponsibleforoverseeingtheCompany’sfinancialreportingprocess.
VI.Auditor’sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithCASwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.AspartofanauditinaccordancewithCAS,weexerciseprofessionaljudgementandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
1）Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,
designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
2）Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatare
appropriateinthecircumstances.However,ourpurposeisnottoexpressanopinionontheeffectivenessofinternalcontrol.
3）Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesand
relateddisclosuresmadebythemanagement.4）Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,based
ontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.5）Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.6）AcquiresufficientandappropriateauditevidencebasedonthefinancialinformationofOffcnEducationentities
orbusinessactivitiestoexpressitsauditopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervision,andexecutionofthegroupauditandassumefullresponsibilityfortheauditopinion.Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
BeijingChinaApril.28th,2021
| BeijingChinaApril.28th,2021 | ChineseCertifiedPublicAccountant:(Engagementpartner) | ZhouBaiming |
| ChineseCertifiedPublicAccountant: | ShenXu |
SectionII.FinancialStatements
Theunitofthestatementinthefinancialnotes:RMB
1.Consolidatedbalancesheet
Preparedby:OffcnEducationTechnologyCo.,Ltd.
December31,2020
Unit:RMB
Items
| Items | December31,2020 | December31,2019 |
| Currentassets: | ||
| Monetaryfunds | 5,950,395,089.12 | 2,724,335,001.58 |
| Settlementreserve | ||
| Lendings | ||
| Transactionalfinancialassets | 983,205,858.25 | 1,754,396,227.54 |
| Derivativefinancialassets | ||
| Notesreceivable | ||
| Accountsreceivable | 21,493,637.66 | 2,721,638.09 |
| Receivablesfinancing | ||
| Prepayments | 2,204,120.00 | 2,461,009.00 |
| Premiumreceivable | ||
| Accountsreceivablereinsurance | ||
| Reserveforreinsurancereceivablecontracts | ||
| Otherreceivables | 304,318,966.20 | 255,013,296.96 |
| Including:interestreceivable | 567,341.68 | |
| Dividendreceivable | ||
| Buyingbackthesaleoffinancialassets | ||
| Inventory | ||
| Contractassets | ||
| Assetsheld-for-sale | ||
| Non-currentassetsduewithinoneyear | 1,985,873,462.75 | |
| Othercurrentassets | 175,179,650.61 | 97,336,600.16 |
| Totalcurrentassets | 9,422,670,784.59 | 4,836,263,773.33 |
Non-currentassets:
| Non-currentassets: | ||
| Loansandadvances | ||
| Debtinvestment | 1,923,598,909.09 | |
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestment | ||
| Otherequityinvestment | 152,800,000.00 | 162,800,000.00 |
| Othernon-currentfinancialassets | 208,450,315.01 | 138,166,559.96 |
| Investmentproperty | 668,014,515.82 | 688,475,053.53 |
| Fixedassets | 1,612,792,592.67 | 672,429,601.44 |
| Constructioninprogress | 214,248,125.04 | 653,580,160.32 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useasset | ||
| Intangibleassets | 426,352,455.75 | 197,507,227.40 |
| Developmentexpenditure | ||
| Goodwill | 99,867,720.38 | 99,867,720.38 |
| Long-termprepaidexpenses | 440,955,377.93 | 240,565,962.02 |
| Deferredtaxassets | 21,606,436.77 | 21,482,832.13 |
| Othernon-currentassets | 1,151,091,703.31 | 325,967,628.34 |
| Totalnon-currentassets | 4,996,179,242.68 | 5,124,441,654.61 |
| Totalassets | 14,418,850,027.27 | 9,960,705,427.94 |
| Currentliabilities: | ||
| Short-termloan | 3,976,019,329.22 | 2,867,000,000.00 |
| Borrowingfromthecentralbank | ||
| Borrowingsfrombanksandotherfinancialinstitutions | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 211,824,402.86 | 236,481,990.86 |
| Depositreceived | 2,634,276,203.88 | |
| Contractliabilities | 4,925,428,309.33 | |
| Financialassetssoldfor |
repurchase
| repurchase | ||
| Absorbingdepositsandinterbankdeposits | ||
| Actingtradingsecurities | ||
| Actingunderwritingsecurities | ||
| Payrollpayable | 637,448,433.99 | 411,475,636.03 |
| Taxespayable | 131,111,770.78 | 184,306,027.84 |
| Otherpayable | 9,479,383.03 | 88,693,411.98 |
| Including:interestpayable | 4,521,557.54 | |
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsuranceaccountspayable | ||
| Liabilitiesheld-for-sale | ||
| Non-currentliabilitiesduewithinoneyear | ||
| Othercurrentliabilities | 147,765,156.66 | |
| Totalcurrentliabilities | 10,039,076,785.87 | 6,422,233,270.59 |
| Non-currentliabilities: | ||
| Insurancecontractreserve | ||
| Long-termloan | ||
| Bondspayable | ||
| Bondspayable_preferredstock | ||
| Bondspayable_perpetualbond | ||
| Leaseliability | ||
| Long-termpayables | ||
| Long-termsalarypayable | ||
| Estimatedliabilities | ||
| Deferredincome | ||
| Deferredtaxliability | 104,677,444.59 | 106,932,273.03 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 104,677,444.59 | 106,932,273.03 |
| TotalLiabilities | 10,143,754,230.46 | 6,529,165,543.62 |
| Owners'equity: |
Sharecapital
| Sharecapital | 103,807,623.00 | 103,807,623.00 |
| Otherequityinstruments | ||
| Otherequityinstrumentspreferredstock | ||
| Otherequityinstrumentsperpetualbond | ||
| Capitalreserve | 1,225,481,049.50 | 1,198,581,049.50 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 30,000,000.00 | 37,500,000.00 |
| Specialreserve | ||
| Surplusreserves | 45,000,000.00 | 45,000,000.00 |
| Generalriskpreparation | ||
| Undistributedprofits | 2,870,839,120.70 | 2,046,657,231.32 |
| Totalowner’sequityattributabletotheparentcompany | 4,275,127,793.20 | 3,431,545,903.82 |
| Minorityshareholders'equity | -31,996.39 | -6,019.50 |
| Owners’equity | 4,275,095,796.81 | 3,431,539,884.32 |
| Liabilitiesandowner'sequity | 14,418,850,027.27 | 9,960,705,427.94 |
Legalrepresentative:WangZhendongPersoninchargeofaccounting:ShiLeiHeadofaccountingdepartment:LuoXue
2.Parentcompanybalancesheet
Unit:RMB
| Items | December31,2020 | December31,2019 |
| Currentassets: | ||
| Monetaryfunds | 56,138,356.37 | 6,931,803.33 |
| Transactionalfinancialassets | 1,630,453.37 | 101,681.64 |
| Derivativefinancialassets | ||
| Notesreceivable | ||
| Accountsreceivable | 14,792,320.38 | |
| Receivablesfinancing | ||
| Prepayments | ||
| Otherreceivables | 621,900,443.29 | 1,717,949,520.99 |
| Including:interestreceivable | ||
| Dividendreceivable | 1,700,000,000.00 | |
| Inventory |
Contractassets
| Contractassets | ||
| Assetsheld-for-sale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | ||
| Totalcurrentassets | 694,461,573.41 | 1,724,983,005.96 |
| Non-currentassets: | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 18,582,307,907.14 | 18,582,307,907.14 |
| Otherequityinvestment | 152,800,000.00 | 162,800,000.00 |
| Othernon-currentfinancialassets | ||
| Investmentproperty | 384,641,527.88 | 395,978,156.15 |
| Fixedassets | 383,060,000.00 | |
| Constructioninprogress | 72,569,103.57 | 72,569,103.57 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | ||
| Developmentexpenditure | ||
| Goodwill | ||
| Long-termprepaidexpenses | ||
| Deferredtaxassets | 20,529,151.44 | 10,804,928.62 |
| Othernon-currentassets | 501,095,111.10 | |
| Totalnon-currentassets | 20,097,002,801.13 | 19,224,460,095.48 |
| Totalassets | 20,791,464,374.54 | 20,949,443,101.44 |
| Currentliabilities: | ||
| Short-termloan | 871,083,875.00 | |
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 83,621,752.26 | 561,752.26 |
| Depositreceived |
Contractliabilities
| Contractliabilities | ||
| Payrollpayable | ||
| Taxespayable | 1,437,291.71 | 791,191.77 |
| Otherpayable | 446,606,530.72 | 40,275,566.88 |
| Including:interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheld-for-sale | ||
| Non-currentliabilitiesduewithinoneyear | ||
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 1,402,749,449.69 | 41,628,510.91 |
| Non-currentliabilities: | ||
| Long-termloan | ||
| Bondspayable | ||
| Bondspayablepreferredstock | ||
| Bondspayableperpetualbond | ||
| Leaseliability | ||
| Long-termpayables | ||
| Long-termsalarypayable | ||
| Estimatedliabilities | ||
| Deferredincome | ||
| Deferredtaxliability | 10,007,613.34 | 12,500,420.41 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 10,007,613.34 | 12,500,420.41 |
| TotalLiabilities | 1,412,757,063.03 | 54,128,931.32 |
| Owners’equity: | ||
| Sharecapital | 6,167,399,389.00 | 6,167,399,389.00 |
| Otherequityinstruments | ||
| Otherequityinstrumentspreferredstock | ||
| Otherequityinstrumentsperpetualbond | ||
| Capitalreserve | 12,775,326,370.33 | 12,775,326,370.33 |
| Less:Treasurystock | ||
| Othercomprehensiveincome | 30,000,000.00 | 37,500,000.00 |
Specialreserve
| Specialreserve | ||
| Surplusreserves | 387,458,806.65 | 387,458,806.65 |
| Undistributedprofits | 18,522,745.53 | 1,527,629,604.14 |
| Owners’equity | 19,378,707,311.51 | 20,895,314,170.12 |
| Liabilitiesandowner’sequity | 20,791,464,374.54 | 20,949,443,101.44 |
3.Consolidatedincomestatement
Unit:RMB
| Items | 2020 | 2019 |
| I.Totaloperatingincome | 11,202,494,295.04 | 9,176,129,995.89 |
| Including:operatingincome | 11,202,494,295.04 | 9,176,129,995.89 |
| Interestincome | ||
| Premiumearned | ||
| Feeandcommissionincome | ||
| II.Totaloperatingcosts | 9,152,970,989.56 | 7,352,991,141.30 |
| Including:operatingcost | 4,567,326,931.44 | 3,812,594,386.55 |
| Interestexpense | ||
| Feeandcommissionexpenses | ||
| Surrendermoney | ||
| Netreimbursementexpenditure | ||
| Withdrawalofnetinsuranceliabilitycontractreserves | ||
| Policyholderdividendexpenses | ||
| Reinsuranceexpenses | ||
| Taxesandsurcharges | 12,738,714.63 | 56,691,639.24 |
| Salesexpenses | 1,811,790,113.16 | 1,482,984,426.78 |
| Managementexpenses | 1,279,869,207.37 | 1,098,471,953.96 |
| R&Dexpenses | 1,050,697,333.79 | 697,940,218.36 |
| Financialexpenses | 430,548,689.17 | 204,308,516.41 |
| Including:interestexpenses | 172,114,852.12 | 107,847,460.74 |
| Interestincome | 33,148,136.69 | 2,451,260.28 |
| Add:otherincome | 335,711,072.77 | 6,749,281.81 |
| Investmentincome(Lossislistedwith“-”) | 256,543,458.65 | 259,222,749.45 |
| Including:investmentincomefromassociatesandjointventures | ||
| Derecognitionincomeoffinancialassetsmeasuredatamortizedcost | ||
| Exchangeearnings(Lossislistedwith“-”) |
Netexposurehedgeincome(Lossislistedwith“-”)
| Netexposurehedgeincome(Lossislistedwith“-”) | ||
| Fairvaluechangeincome(Lossislistedwith“-”) | 20,984,385.76 | 1,712,787.50 |
| Expectedcreditloss(Lossislistedwith“-”) | -1,171,052.83 | -337,735.01 |
| Assetimpairmentloss(Lossislistedwith“-”) | ||
| Assetdisposalincome(Lossislistedwith“-”) | 162,043.59 | 182,904.69 |
| III.Operatingprofit(Lossislistedwith“-”) | 2,661,753,213.42 | 2,090,668,843.03 |
| Add:non-operatingincome | 65,303.00 | 2,000.00 |
| Less:non-operatingexpenses | 674,641.85 | 1,343,412.25 |
| IV.Totalprofit(Thetotallossislistedwith“-”) | 2,661,143,874.57 | 2,089,327,430.78 |
| Less:incometaxexpenses | 356,812,108.72 | 284,784,762.27 |
| V.Netprofit(Netlossislistedwith“-”) | 2,304,331,765.85 | 1,804,542,668.51 |
| i.Classifiedbybusinesscontinuity | ||
| 1.Netprofitfromcontinuingoperations(Netlossislistedwith“-”) | 2,304,331,765.85 | 1,804,542,668.51 |
| 2.Netprofitfromdiscontinuedoperations(Netlossislistedwith“-”) | ||
| ii.Classificationbyownership | ||
| 1.Netprofitattributabletotheowneroftheparentcompany | 2,304,357,742.74 | 1,804,548,688.01 |
| 2.Minorityshareholders’gainsandlosses | -25,976.89 | -6,019.50 |
| VI.Netothercomprehensiveincome | -7,500,000.00 | 5,512,500.00 |
| Netothercomprehensiveincomeattributabletotheparentcompanyowner | -7,500,000.00 | 5,512,500.00 |
| i.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss | -7,500,000.00 | 5,512,500.00 |
| 1.Changesfromtheremeasurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinfairvalueofotherequityinstruments | -7,500,000.00 | 5,512,500.00 |
| 4.Changesinfairvalueofthecompany'sowncreditrisk | ||
| 5.Other | ||
| ii.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | ||
| 1.Othercomprehensiveincomeofconvertibleprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Financialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionsofotherdebtinvestment | ||
| 5.Cashflowhedgereserve | ||
| 6.Foreigncurrencyfinancialstatementtranslationdifference | ||
| 7.Other |
Netothercomprehensiveincomeattributabletominorityshareholders
| Netothercomprehensiveincomeattributabletominorityshareholders | ||
| VII.Totalcomprehensiveincome | 2,296,831,765.85 | 1,810,055,168.51 |
| Totalcomprehensiveincomeattributabletoownersoftheparent | 2,296,857,742.74 | 1,810,061,188.01 |
| Totalcomprehensiveincomeattributabletominorityshareholders | -25,976.89 | -6,019.50 |
| VIII.Earningspershare: | ||
| i.Basicearningspershare | 0.37 | 0.29 |
| ii.Dilutedearningspershare | 0.37 | 0.29 |
Ifabusinesscombinationunderthesamecontroloccursinthecurrentperiod,thenetprofitrealizedbythecombinedpartybeforethecombinationis:RMB0.00.Thenetprofitrealizedbythecombinedpartyinthepreviousperiodwas:RMB0.00.Legalrepresentative:WangZhendongPersoninchargeofaccounting:ShiLeiHeadofaccountingdepartment:LuoXue
4.Parentcompanyincomestatement
Unit:RMB
| Items | 2020 | 2019 |
| I.Operatingincome | 14,829,393.86 | 14,647,786.07 |
| Less:operatingcost | 11,336,628.27 | 11,332,163.09 |
| Taxesandsurcharges | 4,239,288.81 | 18,508,529.76 |
| Salesexpenses | ||
| Managementexpenses | 6,007,122.13 | 13,749,951.31 |
| R&Dexpenses | ||
| Financialexpenses | 32,313,823.38 | -3,966.85 |
| Including:interestexpenses | 32,029,291.66 | |
| Interestincome | 63,868.28 | 8,912.83 |
| Add:otherincome | 919,605.04 | |
| Investmentincome(Lossislistedwith“-”) | 249,600.00 | 1,700,030,534.61 |
| Including:investmentincomefromassociatesandjointventures | ||
| Derecognitionincomeoffinancialassetsmeasuredatamortizedcost | ||
| Netexposurehedgeincome(Lossislistedwith“-”) | ||
| Fairvaluechangeincome(Lossislistedwith“-”) | 28,771.73 | 1,681.64 |
| Expectedcreditloss(Lossislistedwith“-”) | -778,543.18 | |
| Assetimpairmentloss(Lossislistedwith“-”) | ||
| Assetdisposalincome(Lossislistedwith“-”) | ||
| II.Operatingprofit(Lossislistedwith“-”) | -38,648,035.14 | 1,671,093,325.01 |
Add:non-operatingincome
| Add:non-operatingincome | ||
| Less:non-operatingexpenses | 4,321.51 | |
| III.Totalprofit(Thetotallossislistedwith“-”) | -38,648,035.14 | 1,671,089,003.50 |
| Less:incometaxexpenses | -9,717,029.89 | -10,804,508.21 |
| IV.Netprofit(Netlossislistedwith“-”) | -28,931,005.25 | 1,681,893,511.71 |
| i.Netprofitfromcontinuingoperations(Netlossislistedwith“-”) | -28,931,005.25 | 1,681,893,511.71 |
| ii.Netprofitfromdiscontinuedoperations(Netlossislistedwith“-”) | ||
| V.Netothercomprehensiveincome | -7,500,000.00 | 5,512,500.00 |
| i.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss | -7,500,000.00 | 5,512,500.00 |
| 1.Changesfromtheremeasurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinfairvalueofotherequityinstruments | -7,500,000.00 | 5,512,500.00 |
| 4.Changesinfairvalueofthecompany'sowncreditrisk | ||
| 5.Other | ||
| ii.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | ||
| 1.Othercomprehensiveincomeofconvertibleprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Financialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Creditimpairmentprovisionsofotherdebtinvestment | ||
| 5.Cashflowhedgereserve | ||
| 6.Foreigncurrencyfinancialstatementtranslationdifference | ||
| 7.Other | ||
| VI.Totalcomprehensiveincome | -36,431,005.25 | 1,687,406,011.71 |
| VII.Earningspershare: | ||
| ⅰBasicearningspershare | ||
| ⅱDilutedearningspershare |
5.Consolidatedcashflowstatement
Unit:RMB
Items
| Items | 2020 | 2019 |
| I.Cashflowfromoperatingactivities: | ||
| Cashreceivedfromthesaleofgoodsandservices | 13,887,896,355.44 | 10,149,942,938.70 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingfromcentralbank | ||
| Netincreaseinfundsborrowedfromotherfinancialinstitutions | ||
| Cashreceivedfromtheoriginalinsurancecontractpremium | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseinpolicyholders’depositsandinvestmentfunds | ||
| Cashchargedwithinterest,handlingfeesandcommissions | ||
| Netincreaseinfundsborrowedin | ||
| Netincreaseinrepurchasefunds | ||
| Netcashreceivedfromagentbuyingandsellingofsecurities | ||
| Taxrefund | ||
| Othercashreceivedrelatedtootherbusinessactivities | 282,559,487.03 | 43,247,155.21 |
| Subtotalofcashinflowfromoperatingactivities | 14,170,455,842.47 | 10,193,190,093.91 |
| Cashpaidforthepurchaseofgoodsandservices | 1,992,245,380.72 | 1,743,460,556.18 |
| Netincreaseincustomerloansandadvances | ||
| Netincreaseindepositofcentralbankandinterbank | ||
| Cashpaidfortheoriginalinsurancecontract | ||
| Netincreaseinborrowedfunds | ||
| Cashpaidforinterest,handlingfeesandcommissions | ||
| Cashpaidforpolicydividends | ||
| Cashpaidtoandforemployees | 5,483,601,700.80 | 4,169,211,234.25 |
| Varioustaxespaid | 428,071,845.08 | 594,214,853.17 |
Othercashpaidforbusinessactivities
| Othercashpaidforbusinessactivities | 1,384,067,813.96 | 1,212,317,365.12 |
| Subtotalofcashoutflowsfrombusinessactivities | 9,287,986,740.56 | 7,719,204,008.72 |
| Netcashflowfromoperatingactivities | 4,882,469,101.91 | 2,473,986,085.19 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceivedfrominvestmentrecovery | 41,255,088,090.00 | 27,446,550,000.00 |
| Cashreceivedfrominvestmentincome | 194,836,246.67 | 197,260,373.01 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 206,748.59 | |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | ||
| Othercashreceivedrelatedtoinvestingactivities | ||
| Subtotalofcashinflowsfrominvestmentactivities | 41,450,131,085.26 | 27,643,810,373.01 |
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 1,325,074,196.98 | 719,887,283.47 |
| Cashpaidforinvestment | 41,033,698,090.00 | 27,055,030,000.00 |
| Netincreaseinpledgeloans | ||
| Netcashpaidforracquiringsubsidiariesandotherbusinessunits | ||
| Othercashpaidrelatedtoinvestingactivities | 200,000,000.00 | |
| Subtotalofcashoutflowsfrominvestmentactivities | 42,558,772,286.98 | 27,774,917,283.47 |
| Netcashflowsfrominvestingactivities | -1,108,641,201.72 | -131,106,910.46 |
| III.Cashflowfromfinancingactivities: | ||
| Cashreceivedfrominvestmentabsorption | ||
| Including:cashreceivedfromsubsidiariesinabsorbingminorityshareholders'investment | ||
| Cashreceivedfromtheloan | 5,269,000,000.00 | 3,343,698,800.00 |
| Othercashreceivedrelatedtofundraisingactivities | 1,000,000.00 | |
| Subtotalofcashinflowsfromfinancingactivities | 5,270,000,000.00 | 3,343,698,800.00 |
| Cashpaidfordebtrepayment | 4,167,000,000.00 | 2,083,698,800.00 |
| Cashpaidfordividends,profitsorinterestpayments | 1,649,792,933.80 | 1,525,752,347.67 |
| Including:dividendsandprofitspaidbysubsidiariestominorityshareholders | ||
| Othercashpaidrelatedtofinancingactivities | 1,333,478.85 | 1,503,370.80 |
Subtotalofcashoutflowsfromfinancingactivities
| Subtotalofcashoutflowsfromfinancingactivities | 5,818,126,412.65 | 3,610,954,518.47 |
| Netcashflowfromfinancingactivities | -548,126,412.65 | -267,255,718.47 |
| IV.Effectofthechangesoftheexchangerateoncashandtheequivalents | ||
| V.Netincreaseincashandcashequivalents | 3,225,701,487.54 | 2,075,623,456.26 |
| Add:balanceofcashandcashequivalentsatthebeginningoftheperiod | 2,724,335,001.58 | 648,711,545.32 |
| VI.Balanceofcashandcashequivalentsattheendoftheperiod | 5,950,036,489.12 | 2,724,335,001.58 |
6.Parentcompanycashflowstatement
Unit:RMB
| Items | 2020 | 2019 |
| I.Cashflowfromoperatingactivities: | ||
| Cashreceivedfromthesaleofgoodsandservices | ||
| Taxrefund | ||
| Othercashreceivedrelatedtootherbusinessactivities | 407,436,454.23 | 554,084,857.75 |
| Subtotalofcashinflowfromoperatingactivities | 407,436,454.23 | 554,084,857.75 |
| Cashpaidforthepurchaseofgoodsandservices | ||
| Cashpaidtoandforemployees | 21,732.78 | |
| Varioustaxespaid | 5,086,642.85 | 20,871,407.10 |
| Othercashpaidforbusinessactivities | 610,796,109.47 | 92,852,186.19 |
| Subtotalofcashoutflowsfrombusinessactivities | 615,882,752.32 | 113,745,326.07 |
| Netcashflowfromoperatingactivities | -208,446,298.09 | 440,339,531.68 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceivedfrominvestmentrecovery | 23,960,000.00 | |
| Cashreceivedfrominvestmentincome | 1,700,249,600.00 | 1,550,030,534.61 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | ||
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | ||
| Othercashreceivedrelatedtoinvestingactivities | ||
| Subtotalofcashinflowsfrominvestmentactivities | 1,700,249,600.00 | 1,573,990,534.61 |
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 300,000,000.00 | 32,330,744.18 |
Cashpaidforinvestment
| Cashpaidforinvestment | 501,500,000.00 | 24,060,000.00 |
| Netcashpaidforacquiringsubsidiariesandotherbusinessunits | ||
| Othercashpaidrelatedtoinvestingactivities | ||
| Subtotalofcashoutflowsfrominvestmentactivities | 801,500,000.00 | 56,390,744.18 |
| Netcashflowsfrominvestingactivities | 898,749,600.00 | 1,517,599,790.43 |
| III.Cashflowfromfinancingactivities: | ||
| Cashreceivedfrominvestmentabsorption | ||
| Cashreceivedfromtheloan | 1,100,000,000.00 | |
| Othercashreceivedrelatedtofundraisingactivities | 1,000,000.00 | |
| Subtotalofcashinflowsfromfinancingactivities | 1,101,000,000.00 | |
| Cashpaidfordebtrepayment | 230,000,000.00 | 216,000,000.00 |
| Cashpaidfordividends,profitsorinterestpayments | 1,511,121,270.02 | 1,738,432,883.87 |
| Othercashpaidrelatedtofinancingactivities | 1,333,478.85 | 1,503,370.80 |
| Subtotalofcashoutflowsfromfinancingactivities | 1,742,454,748.87 | 1,955,936,254.67 |
| Netcashflowfromfinancingactivities | -641,454,748.87 | -1,955,936,254.67 |
| IV.Effectofthechangesoftheexchangerateoncashandtheequivalents | ||
| V.Netincreaseincashandcashequivalents | 48,848,553.04 | 2,003,067.44 |
| Add:balanceofcashandcashequivalentsatthebeginningoftheperiod | 6,931,803.33 | 4,928,735.89 |
| VI.Balanceofcashandcashequivalentsattheendoftheperiod | 55,780,356.37 | 6,931,803.33 |
7.Consolidatedstatementofchangesinowners’equity
CurrentAmount
Unit:RMB
AmountofthepreviousperiodUnit:RMB
8.Statementofchangesinowner’sequityoftheparentcompany
CurrentAmount
Unit:RMB
Amountofthepreviousperiod
Unit:RMB
SectionIII.GeneralInformation
1.OverviewoftheCompany
OffcnEducationTechnologyCo.,Ltd.(hereinafterreferredtoasthe“Company”or“theCompany”)wasformerlyknownasYaxiaAutomobileCo.,Ltd.(hereinafterreferredtoas“YaxiaAuto”).YaxiaAuto,alimitedcompanyestablishedbyWuhuYaxiaIndustrialCo.,LtdobtainedtheEnterpriseBusinessLicenseofEnterpriseLegalPersonNo.3402012104768issuedbyWuhuAdministrationforIndustryandCommerceonNovember30,2006.YaxiaAutowasapprovedbytheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoasthe“CSRC”)forTheapprovaloftheinitialpublicofferingofWuhuYaxiaAutomobileCo.,Ltd.(CSRCLicense[2011]No.1046)andissuedRMB22millioncommonsharestothepublicandtradedontheShenzhenStockExchangeinAugust2011.ThecontrollingshareholderisAnhuiYaxiaIndustrialCo.,Ltd.(hereinafterreferredtoas“YaxiaIndustrial”).OnJuly1,2016,theCompanyobtainedtheNo.91340200711040703A“EnterpriseBusinessLicenseofEnterpriseLegalPerson”issuedbyWuhuAdministrationforIndustryandCommerce.AsofDecember31,2020,theCompany'ssharecapitalwasRMB6,167,399,389.00.Inaccordancewiththeresolutionofthe3rdExtraordinaryGeneralMeetingofYaxiaAutoin2018andtheresolutionofthe24thBoardMeetingofthe4thBoardofDirectors,andapprovedbyChinaSecuritiesRegulatoryCommission’sTheapprovalofmajorassetrestructuringofYaxiaAutomobileCo.,Ltd.andtheissuanceofsharestoLuZhongfangandothersforassetpurchase(SecuritiesRegulatoryCommission[2018]No.1975),YaxiaAutoswappedallassetsandliabilities(“exchange-outassets”)asoftheassessmentdate,excludingtheretainedassetsthatdonotconstitutebusiness,withtheequivalentportion(“exchange-inassets”)of100.00%oftheequityinBeijingOffcnEducationTechnologyCo.,Ltd.(hereinafterreferredtoas“OffcnLtd.”)respectivelyheldby11transactioncounter-partiesincludingLiYongxin,andpaidthedifferencebetweentheexchange-outassetsandtheexchange-inassetsbyissuingshares.
OnDecember27,2018,YaxiaAutoandthecounterpartYaxiaIndustrialsignedtheConfirmationofDeliveryofExchange-outAssets.Thedeliverydateoftheexchange-outassetswasDecember27,2018.Andfromthedateofdelivery,YaxiaAutoandthecounterpartwouldcompletethedeliveryobligations,regardlessofwhetherthedelivery,ownershipchangeregistrationorfilingproceduresofexchange-outassets(includingbutnotlimitedtolanduserights,housingownership,intellectualpropertyrightsandqualifications,licenses,otherintangibleassets,etc.)isactuallycompleted;theownershipoftheexchange-outassetsbelongstoYaxiaIndustrial,andalltherights,obligations,responsibilitiesandrisksrelatedtothedisposedassets(includingcontingentliabilitiesandimplicitliabilities)areownedandundertakenbyYaxiaIndustrial,whichhasthecompletelyexclusiveactualcontrolanddisposalrightsovertheexchange-outassets,whileYaxiaAutonolongerhasanyactualrights.Onthesameday,OffcnLtd.completedtheregistrationproceduresforindustrialandcommercialchangesonthemattersofshareholderchange.Afterthecompletionofthisalteration,YaxiaAutoholdsa100.00%stakeinOffcnLtd.,andaccordingly,LiYongxinandLuZhongfangbecomethecontrollingshareholderandactualcontrollerofthe
Company.OnFebruary2,2019,YaxiaAutochangeditsnameanditsbusinessscope.OnJanuary23,2019,theregistrationproceduresforthetransferofsharesoftheCompanyandthenewsharesoftheCompanyrelatedtotherestructuringtransactionwerecompleted.Unifiedsocialcreditcode:91340200711040703ACompanyresidence:YaxiaAutomobileCity,YijiangNorthRoad,JiujiangDistrict,WuhuCity,AnhuiProvinceHeadquartersAddress:HanhuaCenturyBuildingB,XueqingRoad23,HaidianDistrict,BeijingNatureofbusiness:EducationNatureofcustomer:MainlynaturalpersonsBusinessScope:engagedintechnologydevelopment,technicalservices,technologypromotion,technologytransfer,technicalconsultingandthebusinessofeducationandtraining(reservedtobranches)inthefieldofeducationandtechnology;holdingexhibitions;organizingculturalandartisticexchangeactivities(excludingperformances);offeringconferenceservicesandconsultingservicesofenterprisemanagement.(Projectssubjecttoapprovalaccordingtothelawcanbecarriedoutundertheapprovaloftherelevantdepartments)
TheFinancialStatementswereapprovedbytheBoardofDirectorsoftheCompanyonApril28,2021.
2.Thescopeoftheconsolidatedfinancialstatements
TheconsolidatedscopeoftheconsolidatedfinancialstatementsoftheCompanyisdeterminedonacontrolbasis,includingthefinancialstatementsoftheCompanyandallsubsidiaries.AsubsidiaryisanenterpriseorentitycontrolledbytheCompany.ThescopeoftheconsolidatedfinancialstatementsisdetailedinNoteIX(1)“Interestinsubsidiaries”ofthisreport;changesinthescopeofconsolidatedfinancialstatementsaredetailedinNoteVIII.“ChangesintheConsolidatedScope”ofthisreport.
SectionIV.BasisforPreparationofFinancialStatements
1.Basisofpreparation
Thefinancialstatementsarepreparedonagoingconcernbasis,accordingtotheactualtransactionsandtherelevantprovisionsoftheAccountingStandardsforBusinessEnterprises(collectivelyreferredtoasthe“CASs”),andbasedontheimportantaccountingpoliciesandaccountingestimatesdescribedbelow.
2.Goingconcern
Afterevaluatingtheabilitytocontinueoperationsfor12monthsfromDecember31,2020andestimatingonthebasisofalltheinformationavailable,theCompanydidnotfindanymattersandsituationsthatmaycastsignificantdoubtsontheabilitytocontinueoperations.Therefore,itisreasonablefortheCompanytopreparefinancialstatementsonagoingconcernbasis.
SectionV.TheCompany’sSignificantAccountingPoliciesandAccountingEstimatesNotesonspecificaccountingpoliciesandaccountingestimates:
None
1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises
Thefinancialstatementsbasedontheabove-mentionedpreparationbasismeettherequirementsofthelatestCASsanditsapplicationguidelines,interpretations,andotherrelevantregulationsissuedbytheMinistryofFinance,whichtrulyandcompletelypresenttheCompany’sfinancialposition,businessperformance,cashflowsandotherinformationfortheyearthenended.
Inaddition,thefinancialreportiscompiledbyreferencetothelistinganddisclosurerequirementsoftheRulesfortheInformationDisclosureandCompilationofCompaniesPubliclyIssuingSecuritiesNO.15—GeneralProvisionsforFinancialReport(Revisedin2014)oftheCSRCaswellastheNoticeonImplementationoftheNewAccountingStandardsforListedCompanies(LetteroftheAccountingDepartment[2018]no.453).
2.Accountingperiod
TheCompany’saccountingperiodstartsonJanuary1andendsonDecember31.
3.Businesscycle
TheCompany’sbusinesscyclestartsonJanuary1andendsonDecember31.
4.Recordingcurrency
TheCompanyadoptsRenminbi(RMB)astheirrecordingcurrency.
5.Theaccountingtreatmentofbusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol
5.1Theaccountingtreatmentofbusinesscombinationsinvolvingenterprisesundercommoncontrol
TheCompanyachievesamergerunderthesamecontrolinonetransactionorthroughstep-by-stepmultipletransactions.Assetsandliabilitiesobtainingfromthemergerofenterprisearemeasuredaccordingtotheshareofbookvalueofconsolidatedfinancialstatementsoffinalcontrollingpartyundertheowner’sequityofcombinedpartywithincombiningdate.ThedifferencebetweenthebookvalueofthenetassetsobtainedbytheCompanyandbookvalueofcombinedconsiderationpaid(ortheaggregatefacevalueofsharesissuedasconsideration)isadjustedtothecapitalreserve;ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
5.2Theaccountingtreatmentofbusinesscombinationsinvolvingenterprisesunderuncommoncontrol
Whenthecostofcombinationexceedstheshareinthefairvalueoftheacquiree’sidentifiablenetassetsacquiredbycombinationonthepurchasedate,thedifferenceisrecognizedasgoodwill.Ifthecombinationcostislessthantheshareinfairvalueofidentifiablenetassetsofacquiree,firstly,thefairvalueoftheacquiredparty’s
identifiableassets,liabilitiesandcontingentliabilities,andthemeasurementofcombinationcostsshouldbereviewed.Then,ifthecombinationcostsarestilllessthantheacquiredshareinthefairvalueoftheacquiree’sidentifiablenetasset,thedifferencewillbeaddedintothecurrentprofitsandlosses.Toachievebusinesscombinationsnotundercommoncontrolbystep-by-stepmultipletransactionsinthefollowingorder:
(1)Adjusttheinitialinvestmentcostoflong-termequityinvestments.Iftheequityheldbeforethepurchasedateisaccountedforwiththeequitymethod,itisremeasuredatthefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueisincludedinthecurrentinvestmentincome;ifothercomprehensiveincomeandotherowners’equitywithequitymethodrelevanttotheequityofthepurchasedpartyheldbeforethepurchasedatechange,thechangesshouldbetransferredintocurrentincomewhenthepurchasehappens,exceptforothercomprehensiveincomearisingfromnetliabilitiesornetassets’changesofthebenefitplanremeasuredbytheinvesteeandfairvaluechangesofinvestmentinotherequityinstrumentsheld.
(2)Recognizegoodwill(ortheamountincludedinthecurrentprofitorloss).Comparetheinitialinvestmentcostoftheadjustedlong-termequityinvestmentwiththefairvalueoftheidentifiablenetassetsofthesubsidiarythatshouldbeenjoyedonthepurchasedate.Iftheformerisgreaterthanthelatter,thedifferenceisrecognizedasgoodwill;theformerislessthanthelatter,andthedifferenceisbookedintothecurrentprofitandloss.
Circumstancesofdisposingofequitythroughstep-by-stepmultipletransactionstothelossofcontroloversubsidiaries
(1)Determinewhetherthevarioustransactionsintheprocessofstep-by-stepdisposalofequitytothelossofcontroloversubsidiariesfollowthe“packagedeal”principle
Generallytransactionsinstagesaretreatedasapackagedealinaccountingifthetransactionterms,conditions,andeconomicimpactofthedisposalofthesubsidiary’sequityinterestscomplywithoneormoreofthefollowing:
1)Thesetransactionsaremadesimultaneouslyorwithconsiderationofinfluenceoneachother;
2)Thesetransactionscanonlyachieveacompletebusinessoutcomewhentreatedasawhole;
3)Theoccurrenceofatransactiondependsontheoccurrenceofatleastoneoftheothertransactions;
4)Atransactionisuneconomicalwhentreatedalone,butiseconomicalwhenconsideredtogetherwithothertransactions.
(2)Theaccountingmethodofeachtransactionbelongingtothe“packagedeal”intheprocessofdisposingoftheequityinstagestothelossofcontroloverthesubsidiary
Allthetransactions,belongingtothepackagedealintheprocessofdisposingofequityinvestmentsinsubsidiariestothelossofcontrol,shouldbeaccountedforasonetransactiondisposingofthesubsidiarytothelossofcontroloverit;however,thedifferencebetweeneachdisposalpriceandtheshareofthesubsidiary’snet
assetsobtainedbythedisposalofinvestmentbeforethelossofcontrolshallberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatementsandshallbetransferredtotheprofitandlossoftheperiodwhenthecontrolislost.Intheconsolidatedfinancialstatements,theremainingequityshouldberemeasuredatitsfairvalueonthedatewhenthecontrolislost.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposaloftheequityandthefairvalueoftheremainingequity,andthesharesofthenetassetsoftheoriginalsubsidiarycalculatedfromthepurchasedatebasedontheoriginalshareholdingratio,shallbeincludedintheinvestmentincomeoftheperiodwhenthecontrolislost.Othercomprehensiveincomerelatedtotheoriginalsubsidiary’sequityinvestmentshallbeconvertedtocurrentinvestmentincomeorretainedearningswhenthecontrolislost.
(3)Theaccountingmethodofeachtransactionnotbelongingtothe“packagedeal”intheprocessofdisposingoftheequityinstagestothelossofcontroloverthesubsidiaryIfthedisposaloftheinvestmentinthesubsidiarydoesnotlosecontrol,thedifferencebetweenthedisposalpriceintheconsolidatedfinancialstatementsandtheshareofthesubsidiary’snetassetsobtainedfromthedisposalofinvestmentisincludedinthecapitalreserve(capitalpremiumorequitypremium).Ifthecapitalpremiumisinsufficienttooffset,theretainedearningsshouldbeadjusted.Ifthecontrolislostbecauseofthedisposalofinvestmentinasubsidiary,intheconsolidatedfinancialstatements,theremainingequityshouldberemeasuredatitsfairvalueonthedatewhencontrolislost.Thesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequityminustheshareofthenetassetsthatshouldbecalculatedbytheoriginalsubsidiaryfromthedateofpurchasebasedontheoriginalshareholdingratioisincludedintheinvestmentincomeoftheperiodwhenthecontrolislost.Othercomprehensiveincomerelatedtotheequityinvestmentintheoriginalsubsidiaryshallbeconvertedtocurrentinvestmentincomeorretainedearningswhenthecontrolislost.
6.Preparationofconsolidatedfinancialstatements
ConsolidatedfinancialstatementsbasedontheParent’sanditssubsidiaries’financialstatementsarepreparedbytheCompanyinaccordancewiththeCASsNo.33—Consolidatedfinancialstatementandotherrelevantmaterials.
7.Classificationofjointarrangementandaccountingmethodsofjointoperations
7.1Identificationandclassificationofjointarrangements
Ajointarrangementreferstoanarrangementjointlycontrolledbytwoormoreparties.Thejointarrangementhasthefollowingcharacteristics:(1)allparticipantsareboundbythearrangement;(2)twoormoreparticipantsexercisejointcontroloverthearrangement.Nosinglepartyshallbeabletocontrolthearrangement,andanypartythathasjointcontroloverthearrangementshallbeabletopreventanyotherpartyorcombinationofpartiesfromcontrollingthearrangementalone.
Jointcontrolreferstothesharedcontroloveracertainarrangementasrequiredinthecontract.Andthedecisionabouttheactivitiesofthearrangementcanbemadeonlywhenallparticipantswiththesharedcontrolhaveconsented.Ajointarrangementisclassifiedaseitherajointoperationorajointventure.Ajointoperationisajointarrangementwherebythejointoperatorshaverightstotheassets,andobligationsfortheliabilities,relatedtothearrangement.Ajointventureisajointarrangementwherebythejointpartiesonlyhavetherightstothenetassetsunderthisarrangement.
7.2Accountingtreatmentofjointarrangements
Ajointoperatorshallrecognizethefollowingitemsinrelationtoitsinterestsinajointoperation,andaccountfortheminaccordancewithrelevantaccountingstandards:(1)Itssolely-heldassets,anditsshareofanyassetsheldjointly;(2)Itssolely-assumedliabilities,anditsshareofanyliabilitiesincurredjointly;(3)Itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;(4)Itsshareoftherevenuefromsaleoftheoutputbythejointoperation;(5)Itssolely-incurredexpensesanditsshareofanyexpensesincurredjointly.
Theparticipantsinajointventureshall,inaccordancewiththeAccountingStandardsforEnterprisesNo.2—Long-termEquityInvestment,makeaccountingarrangementsfortheinvestmentofthejointventure.
8.Criteriafortherecognitionofcashandcashequivalents
Theterm“cash”incashflowstatementreferstocashonhandanddepositsthatareavailableforpaymentatanytime.Thetermof“cashequivalents”referstoshort-term(usuallyduewithin3monthsfromthepurchasedate)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandsubjecttoaninsignificantriskofchangesinvalue.
9.Translationofforeigncurrencytransactionsandforeigncurrencystatement
9.1Translationoftransactionsdenominatedinforeigncurrencies
Oninitialrecognition,aforeigncurrencyamountistranslatedintotheamountdenominatedinRMBbyapplyingthespotexchangerateonthedateofthetransactionannouncedbyPeople’sBankofChina.Atthebalancesheetdate,foreigncurrencybalancecomprisedofforeigncurrencymonetaryitemsshallbetranslatedatthespotexchangerateonthebalancesheetdate,andtheexchangedifferencescausedbydifferentexchangerates,excepttheexchangedifferenceoftheprincipalandinterestofforeigncurrencyspecialloansrelatedtotheacquisitionandconstructionofassetsthatmeetthecapitalizationconditions,shallbeincludedintoprofitandlossfortheperiod;foreigncurrencynon-monetaryitemsmeasuredathistoricalcostarestillconvertedatthespotexchangerateonthetransactiondate,andtheirRMBamountisnotchanged;foreigncurrencynon-monetaryitemsmeasuredatfairvalue,aretranslatedatthespotexchangerateonthefairvaluedeterminationdate,andthedifferenceshallbeincludedintoprofitandlossfortheperiodorothercomprehensiveincome.
9.2Translationoffinancialstatementsdenominatedinforeigncurrencies
Theassetsandliabilitiesofthebalancesheetaretranslatedatthespotexchangerateonthebalancesheetdate;allitemsabouttheowner’sequityexceptthe“undistributedprofits”aretranslatedatthespotexchangerateonthetransactiondate;therevenueandexpensesintheincomestatementaretranslatedattheapproximaterateofthespotexchangerateonthetransactiondate.Differencesarisingfromtheabovetranslationoffinancialstatementsdenominatedinforeigncurrenciesarerecognizedasothercomprehensiveincome.
10.Financialinstruments
10.1Recognitionandderecognitionoffinancialinstruments
TheCompanyrecognizesafinancialassetorafinancialliabilitywhenitbecomesthecontractualpartyofthefinancialinstrument.
TheCompanypurchasesandsellsfinancialassetsinregularwaysandrecognizesandderecognizesthefinancialassetsonatradedatebasis.Regularwaysofpurchasingorsellingmeanthatthereceivingordeliveryoffinancialassetsshouldbewithinthetimelimitstipulatedbyregulationsorcommonpractices,asagreedinthetermsofthecontract.TradedateisthedateonwhichtheCompanypromisestobuyinorselloutthefinancialassets.
TheCompanywillderecognizethefinancialassets(eitherapart,orapartofasimilargroup),andwriteitofftheaccountandthebalancesheet,iffollowingconditionsaremet:
(1)Expirationoftherighttoreceivecashflowsfromfinancialassets;
(2)TheCompany’srighttoreceivecashflowsfromfinancialassetshasbeentransferred,orbeartheobligationtopayallcashreceivedtothethirdpartyintimedueto“Hand-Overarrangement”;and(a)almostallrisksandbenefitsoftheownershipofthefinancialassetshavebeentransferredvirtually,or(b)thoughnoneofrisksandbenefitsoftheownershipthefinancialassetshavebeentransferredorretainedvirtually,theCompanywaivesthecontrolofthefinancialassets.
10.2Classificationandmeasurementoffinancialassets
Accordingtothebusinessmodelformanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,theCompany’sfinancialassetshaveinitiallybeenclassifiedasfollows:financialassetsmeasuredatamortizedcost,financialassetsmeasuredatfairvaluethroughothercomprehensiveincome,andfinancialassetsmeasuredatfairvaluethroughprofitorlossoftheperiod.Subsequentmeasurementoffinancialassetsdependsonitscategories.
TheCompany’sclassificationoffinancialassetsisbasedontheCompany’sbusinessmodelofmanagingfinancialassetsanditscharacteristicsofcashflows.
(1)Financialassetsatamortizedcost
Financialassetsareclassifiedasfinancialassetsatamortizedcostwhenfollowingconditionsaremet:theCompany’sbusinessmodelformanagingfinancialassetstargetsatreceivingcontractualcashflows;The
contractualtermsofthefinancialassetsstipulatethatthecashflowsgeneratedonaspecificdateareexclusivelyusedtopaytheprincipalandtheinterestbasedontheoutstandingprincipalamount.Forsuchfinancialassets,theyshallbemeasuredsubsequentlyatamortizedcostbyeffectiveinterestratemethod,andgainsorlossesarisingfromamortizationorimpairmentarerecognizedincurrentprofitorloss.
(2)InvestmentindebtinstrumentsmeasuredatfairvaluethroughothercomprehensiveincomeFinancialassetsareclassifiedasassetsthataremeasuredatfairvaluethroughothercomprehensiveincomewhenfollowingconditionsaremet:theCompany’sbusinessmodelformanagingfinancialassetstargetsatboththereceivingofcontractualcashflowsandthesaleoffinancialassets;thecontractualtermsofthefinancialassetstipulatethatthecashflowsgeneratedonaspecificdateareexclusivelyusedtopaytheprincipalandtheinterestbasedontheoutstandingprincipalamount.Suchfinancialassetsaresubsequentlymeasuredatfairvalue.Thediscountorpremiumisamortizedbyusingtheeffectiveinterestmethodandrecognizedasinterestincomeorexpense.Exceptthattheimpairmentlossandtheexchangedifferencesofforeigncurrencymonetaryfinancialassetsarerecognizedasprofitorlossfortheperiod,thechangesinthefairvalueofsuchfinancialassetsarerecognizedasothercomprehensiveincome,andtheaccumulatedgainsorlossesaretransferredintoprofitorlossuntilsuchfinancialassetsarederecognized.Interestincomerelatedtosuchfinancialassetsisincludedinthecurrentprofitandloss.
(3)EquityinstrumentinvestmentmeasuredatfairvaluethroughothercomprehensiveincomeTheCompanyirrevocablydesignatedpartofthenon-tradingequityinstrumentinvestmentasfinancialassetsmeasuredatfairvaluethroughothercomprehensiveincome,andtherelateddividendincomeisincludedincurrentprofitorloss.Thechangesoffairvalueareincludedinothercomprehensiveincomeandtheaccumulatedgainsorlossesaretransferredintoretainedearningsuntilthefinancialassetsarederecognized.
(4)FinancialassetsmeasuredatfairvaluethroughcurrentprofitandlossAnyfinancialassetsthatarenotrecognizedasthefinancialassetsmeasuredatamortizedcostoratfairvaluethroughothercomprehensiveincomementionedabovearemeasuredatfairvaluethroughcurrentprofitorloss.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,financialassetscanbedesignatedasfinancialassetsatfairvaluethroughprofitorloss.Suchfinancialassetsaresubsequentlymeasuredatfairvalue,andallchangesinfairvaluearerecognizedincurrentprofitorloss.Whenandonlywhen,theCompanychangesitsbusinessmodelformanagingfinancialassetsitshallreclassifyallaffectedfinancialassets.
Forfinancialassetsmeasuredatfairvaluethroughcurrentprofitorloss,therelatedtransactionexpenseisdirectlyrecognizedincurrentprofitorlossasincurred.Andotherfinancialassets’transactionexpenseisincludedintheinitialrecognitionamount.
10.3Classificationandmeasurementoffinancialliabilities
TheCompany’sfinancialliabilitieshaveinitiallybeenclassifiedasfollows:financialliabilitiesatamortizedcostandfinancialliabilitiesatfairvaluethroughcurrentprofitorloss.Thefinancialliabilitiesmeetinganyofthefollowingconditionscanbeinitiallydesignatedasthefinancialliabilitiesatfairvaluethroughcurrentprofitorloss:(1)Suchdesignationcaneliminateorsignificantlyreduceaccountingmismatches.(2)Accordingtocorporateriskmanagementorinvestmentstrategiesasstatedinformalwrittendocuments,themanagementandperformanceevaluationoffinancialliabilityportfoliosorcombinationsoffinancialassetsandfinancialliabilitiesarebasedonfairvalue,andreportedtokeymanagementpersonnelonthisbasiswithintheCompany.(3)Suchfinancialliabilitiesincludeembeddedderivativesthatneedtobesplitseparately.
TheCompanydeterminestheclassificationoffinancialliabilitiesatinitialrecognition.Forfinancialliabilitiesmeasuredatfairvaluethroughcurrentprofitorloss,therelatedtransactionexpenseisdirectlyrecognizedincurrentprofitorloss.Therelatedtransactionexpenseofotherfinancialliabilitiesisincludedintheinitialrecognitionamount.
Subsequentmeasurementoffinancialliabilitiesdependsonitscategories:
(1)Financialliabilitiesatamortizedcost
Suchfinancialliabilitiesaresubsequentlymeasuredbyusingtheeffectiveinterestratemethodatamortizedcost.
(2)Financialliabilitiesatfairvaluethroughcurrentprofitorloss
Financialliabilitiesmeasuredatfairvaluethroughcurrentprofitorloss,includetransactionalfinancialliabilities(includingderivativesoffinancialliabilities)andthoseinitiallydesignatedasfinancialliabilitiesmeasuredatfairvaluethroughcurrentprofitorloss.
10.4Offsettingoffinancialinstruments
Ifthefollowingconditionsaremetatthesametime,thenetamountobtainedaftertheoffsettingoffinancialassetsandfinancialliabilitiesshallbeshowninthebalancesheet:thereisalegalrighttooffsettherecognizedamount,andsuchlegalrightiscurrentlyenforceable;plantosettleonanetbasis,orcashthefinancialassetsandliquidatethefinancialliabilitiesatthesametime.
10.5Impairmentoffinancialassets
TheCompanyundertakesimpairmenttreatmentandconfirmslossprovisionsbasedonexpectedcreditlossesasforthefinancialassetsatamortizedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincome,financialguaranteecontractsandetc..Creditlossreferstothedifferencebetweenthecashflowofallcontractsdiscountedattheoriginaleffectiveinterestrateandtheexpectedcashflowofallcontractsreceivables,i.e.thepresentvalueofallcashshortages.
TheCompanyestimates,individuallyorincombination,theexpectedcreditlossesoffinancialassets
measuredatamortizedcostandfinancialassets(debtinstruments)measuredatfairvaluethroughothercomprehensiveincome,takingintoaccountallreasonableandevidence-basedinformation,includingforward-lookinginformation.
(1)GeneralmodelofexpectedcreditlossIfthecreditriskofthefinancialinstrumenthasincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentfortheentirelifeoftheinstrument;Ifthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition,theCompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Theincreaseorrolloveramountofthelossprovisionshallberecordedinthecurrentprofitandlossasanimpairmentlossorgain.FortheCompany’sspecificassessmentofcreditrisk,pleaserefertothisreportNoteX“RisksAssociatedWithFinancialInstruments”fordetails.Specifically,theCompanydividestheprocessofcreditimpairmentoffinancialinstrumentswithoutcreditimpairmentatthetimeofpurchaseororiginationintothreestages.Therearedifferentaccountingtreatmentsfortheimpairmentoffinancialinstrumentsatdifferentstages:
Stage1:creditriskhasnotincreasedsignificantlysinceinitialrecognition.Forthefinancialinstrumentatthisstage,theCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossinthenext12months,andcalculatetheinterestincomeaccordingtoitsbookbalance(thatis,theimpairmentprovisionisnotdeducted)andtheactualinterestrate(iftheinstrumentisafinancialasset,thesameasbelow).Stage2:Creditriskhasincreasedsignificantlysincetheinitialrecognition,butcreditimpairmenthasnotyetoccurred.Forafinancialinstrumentatthisstage,theCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslife,andcalculateinterestincomeaccordingtoitsbookbalanceandactualinterestrate.Stage3:Creditimpairmentoccursafterinitialrecognition.Forthefinancialinstrumentinthisstage,theCompanyshallmeasurethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslifetime,butthecalculationofinterestincomeisdifferentfromthatofthefinancialassetinthefirsttwostages.Forthefinancialassetswhosecreditimpairmenthasoccurred,theCompanyshallcalculatetheinterestincomeattheiramortizedcost(bookbalancelesstheimpairmentprovision,thatis,bookvalue)andtheactualinterestrate.
Forfinancialassetswhosecreditimpairmenthasoccurredatthetimeofpurchaseororigin,theCompanyshallonlyrecognizethechangesintheexpectedcreditlossduringthewholedurationaftertheinitialrecognition
aslossprovision,andcalculateinterestincomeattheiramortizedcostandtheactualinterestrateadjustedbycredit.
(2)TheCompanychoosesnottocomparethecreditriskofafinancialinstrumentwithalowercreditriskonthebalancesheetdatewiththecreditriskatthetimeoftheinitialrecognition,butdirectlyassumesthatthecreditriskoftheinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.IftheCompanyconfirmsthatthedefaultriskofthefinancialinstrumentsislow,theborrowers’short-termabilitytofulfillitsobligationtopaythecontractcashflowisverystrong,andeventheeconomicsituationandbusinessenvironmentisinalong-termadversechange,theborrower’sabilitytofulfillitsobligationtopaythecontractcashflowwillnotbenecessarilyreduced,thenthefinancialinstrumentscanbedeemedwithalowercreditrisk.
(3)Receivablesandleasereceivables
ForthereceivablesstipulatedbytheAccountingStandardsforEnterprisesNo.14—Revenuesasreceivableswithoutmajorfinancingelements(includingthesituationwhenthefinancingelementsofthecontractnomorethanayeararenottakenintoconsiderationaccordingtotheStandards),theCompanyadoptsthesimplifiedmodelofexpectedcreditlosses,andmeasuresthelossprovisionalwaysinaccordancewiththeexpectedamountofcreditlossesthroughouttheduration.
ForreceivablescontainingsignificantfinancingelementsandleasereceivablesspecifiedintheAccountingStandardsforBusinessEnterprisesNo.21—Leasing,theCompanymakesanaccountingpolicychoiceandadoptsasimplifiedmodelofexpectedcreditloss,thatis,tomeasurethelossprovisionaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.
10.6Financialassetstransfer
Ifalmostalltherisksandrewardsofownershipoffinancialassetshavebeentransferredtothetransferee,thefinancialassetsarederecognized;ifalmostalltherisksandrewardsofownershipofthefinancialassetsareretained,thefinancialassetsarenotderecognized.
Neithertransfernorretainalmostallrisksandrewardsofownershipoffinancialassets,whicharedealtwithasfollows:ifthecontroloffinancialassetsarewaived,derecognizethefinancialassetsandrecognizetheassetsandliabilities;ifnot,itneedstorecognizetherelevantfinancialassetsaccordingtotheextenttowhichtheycontinuetobeinvolvedinthetransferredfinancialassets,andrecognizetherelatedliabilities.
Ifthetransferredfinancialassetsarecontinuedtobeinvolvedbyfinancialwarranty,theassetsshouldberecognizedattheloweronebetweenthebookvalueofthefinancialassetsandthefinancialwarrantyamount.Thefinancialwarrantyamountreferstothemaximumamountoftheconsiderationreceivedthatwillberequiredtoberepaid.
11.NotesreceivableNone
12.AccountsreceivableForaccountsreceivable,whethersignificantfinancingisinvolvedinornot,thesimplifiedmodelofexpectedcreditlossisadopted.TheCompanywillalwaysmeasureitsprovisionforlossbasedontheamountequivalenttotheexpectedcreditlossofitsentireduration,andtheincreaseorreversalamountoftheprovisionforlossresultingtherefromisincludedintheprofitandlossoftheperiodasanimpairmentlossorgain.TheCompanyconsidersallreasonableandevidence-basedinformation,includingforward-lookinginformation,toestimatetheexpectedcreditlossoftheaccountsreceivablesindividuallyorincombination.Whenasinglefinancialassetcanevaluatetheexpectedcreditlossatareasonablecost,theCompanychoosestocalculatethecreditlossindividually.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossatareasonablecost,theCompanywilldividetheaccountsreceivablesintoseveralcombinationsinaccordancewiththecharacteristicsofcreditrisk,andtheexpectedcreditlossiscalculatedonthebasisofthecombination.Thebasisfordeterminingthecombinationisasfollows:
Typesofcombination
| Typesofcombination | Thebasisfordeterminingthecombination |
| Combination1 | Receivablesfromrelatedcompanies |
| Combination2 | Receivablesfromhotelservices |
| Combination3 | Otherreceivables |
Fortheaccountsreceivableclassifiedasacombination,theCompanyreferstothehistoricalcreditlossexperience,andcombinesthecurrentsituationandtheforecastoffutureeconomicconditions,toprepareacomparisontableoftheageofaccountsreceivableandtheexpectedcreditlossrateforitsentiredurationandcalculatetheexpectedcreditloss.
13.Receivablesfinancing
Ifafinancialassetmeetsthefollowingconditionsatthesametime,itisrecognizedasafinancialassetsatfairvaluethroughothercomprehensiveincome:theCompany’sbusinessmodelformanagingthefinancialassetistobothcollectcontractualcashflowsandsellfinancialassets.Thecontractualtermsofthefinancialassetstipulatethatthecashflowsgeneratedonaparticulardateareonlyusedaspaymentofprincipalandinterestbasedontheamountofoutstandingprincipal.
TheCompanytransfersthereceivablesheldbydiscountorendorsementwithahighfrequencyandalargeamount,anditsactualbusinessmodelofmanagementischaracterizedbybothreceivingcontractualcashflowsandsellingthem.Inaccordancewiththerelevantprovisionsaboutfinancialinstruments,thereceivablesmentionedabovearerecognizedasfinancialassetsatfairvaluethroughothercomprehensiveincome.
14.Otherreceivables
DeterminationmethodandaccountingtreatmentmethodofexpectedcreditlossofotherreceivablesTheCompanyadoptsthegeneralmodelofexpectedcreditlosstodealwithotherreceivables,asdetailedinNoteV(10)“FinancialInstruments”.TheCompanyconsidersallreasonableandsubstantiatedinformation,includingforward-lookinginformation,toestimatetheexpectedcreditlossofotherreceivablesindividuallyorincombination.Whensinglefinancialassetscanevaluatetheexpectedcreditlossatareasonablecost,theCompanychoosestocalculatethecreditlossindividually.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossatareasonablecost,theCompanywilldividetheotherreceivablesintoseveralportfoliosinaccordancewiththecharacteristicsofcreditrisk,andtheexpectedcreditlossiscalculatedonthebasisofthecombination.Thebasisfordeterminingthecombinationisasfollows:
Typeofcombination
| Typeofcombination | Thebasisfordeterminingthecombination |
| Combination1 | Receivablesfromrelatedparties |
| Combination2 | Receivablesfromemployeereservefunds,deposits,andsecuritydeposits |
| Combination3 | ReceivablesnotinCombination1andCombination2 |
Forotherreceivablesdividedintoportfolios,theCompanyreferstothehistoricalcreditlossexperienceandcombinesthecurrentsituationandtheforecastoffutureeconomicconditions,tocalculatetheexpectedcreditlossbasedondefaultriskexposureandexpectedcreditlossrateinthenext12monthsorthewholeduration.
15.Inventory
15.1Classificationofinventories
Inventoriesrefertothefinishedgoodsorcommoditiesheldforsaleindailyactivities,goodsinprogressintheproductionprocess,andconsumedmaterialsandsuppliesintheprocessofproductionorprovidingservices.
15.2Methodofvaluationfordeliveryofinventory
Themonthlyweightedaveragemethodisusedtodelivertheinventory.
15.3Thebasisfordeterminingthenetrealizablevalueofinventoriesandthemethodofaccruinginventorydepreciationreserves
Onthebalancesheetdate,inventoriesaremeasuredatthelowerbetweencostandnetrealizablevalueandtheprovisionforinventorydepreciationismadebasedonthedifferencebetweentheinventorycategorycostandthenetrealizablevalue.Forinventoriesdirectlyusedforsale,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheamountoftheestimatedsellingpriceoftheinventorylesstheestimatedsalescostandrelevanttaxesandfees;formaterialinventoriesthatneedtobeprocessed,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheamountoftheestimatedsellingpriceoffinishedproductsproducedlesstheestimatedcosttobeoccurredduringtheproducingprocess,theestimated
sellingexpensesandrelatedtaxesandfees;onthebalancesheetdate,ifsomeoftheinventoryhascontractualpriceandtheothersdonot,thenetrealizablevalueisdeterminedseparatelyandbycomparingwithitscorrespondingcost,theamountoftheprovisionforinventorydepreciationorreversalisdeterminedseparately.
15.4InventorystocktakingsystemTheperpetualinventorysystemismaintainedforinventorystocktakingsystem.
15.5Amortizationoflow-valueconsumablesandpackages
(1)Low-valueconsumablesLow-valueconsumablesareamortizedbyone-timewrite-off.
(2)PackagesPackagesareamortizedbyone-timewrite-off.
16.Contractassets
16.1MethodandstandardfordeterminationofcontractassetsTheCompanylistscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationshipbetweentheperformanceofobligationsandcustomerpayments.Theconsideration(exceptthereceivables)thattheCompanyhastherighttoreceiveinexchangeforgoodsorservicesthattheCompanyhastransferredtothecustomerislistedascontractassets.
16.2MethodsfordeterminingandaccountingofexpectedcreditlossofcontractassetsForcontractassets,whethersignificantfinancingisinvolvedinornot,thesimplifiedmodelofexpectedcreditlossisadopted.TheCompanywillalwaysmeasureitsprovisionforlossbasedontheamountequivalenttotheexpectedcreditlossofitsentireduration,andtheincreaseorreversalamountoftheprovisionforlossresultingtherefromisincludedintheprofitandlossoftheperiodasanimpairmentlossorgain.
17.Contractcosts
Contractcostsaredividedintocontractperformancecostsandcontractacquisitioncosts.ThecostincurredbytheCompanytoperformthecontractisrecognizedasanassetasthecontractperformancecostwhenmeetingthefollowingconditions:
1.Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlaborandmaterialsexpenses,manufacturingexpenses(orsimilarexpenses),clearlydefinedcostsbornebythecustomer,andothercostsincurredonlyduetothecontract;
2.ThecostincreasestheCompany'sfutureresourcesforfulfillingcontractobligations;
3.Thecostisexpectedtoberecovered.
IftheincrementalcostincurredbytheCompanyforobtainingthecontractisexpectedtoberecovered,itisrecognizedasanassetasthecostofobtainingthecontract;however,iftheamortizationperiodoftheassetdoes
notexceedoneyear,theCompanycouldincludeitinthecurrentprofitsandlosseswhenitoccurs.Assetsrelatedtocontractcostsareamortizedonthesamebasisastherevenueofgoodsorservicesrelatedtotheasset.
Ifthebookvalueofassetsrelatedtocontractcostsishigherthanthedifferencebetweenthefollowingtwoitems,theCompanywillmakeprovisionsforimpairmentfortheexcesspartandrecognizeitastheassetimpairmentloss:
1.Theremainingconsiderationexpectedtobeobtainedduetothetransferofgoodsorservicesrelatedtotheasset;
2.Costsestimatedtoincurforthetransferoftherelatedgoodsorservices
Iftheaforementionedassetimpairmentprovisionissubsequentlyreversed,thebookvalueoftheassetafterreversalshallnotexceedthebookvalueoftheassetonthedateofreversalundertheassumptionthatnoimpairmentprovisionismade.
18.Holdingforsale
TheCompanydividesthecorporatecomponents(ornon-currentasset)thatmeetallofthefollowingconditionsintoholdingforsale:(1)Basedontheusualpracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,theycanbesoldimmediatelyundercurrentconditions;(2)Thesaleishighlyprobable,aresolutionhasbeenmadeonasaleplan,afirmpurchasecommitment(afirmpurchasecommitmentreferstoalegallybindingpurchaseagreementsignedbytheenterpriseandotherparties.Theagreementhasimportantitemsabouttransactionprice,timeandsufficientlyseveredefaultpenaltysothereislittlepossibilityofsignificantadjustmentorrevocationoftheagreement)hasbeenobtainedanditisexpectedthatthesalewillbecompletedwithinoneyear.Approvalsfromrelevantauthoritiesorregulatoryauthoritieshavebeenobtainedinaccordancewithrelevantregulations.
TheCompanyadjuststheexpectednetsalvagevalueheldforsaletoreflectthenetamountofitsfairvaluelesscoststosell(notoveritsoriginalbookvalue).Thedifferencebetweentheoriginalbookvalueandtheadjustednetresidualvalueisincludedintheprofitorlossofthecurrentperiodasanassetimpairmentloss.Atthesametime,provisionforimpairmentofassetsheldforsaleismade.Fortheamountofimpairmentlossofassetsconfirmedbythedisposalgroupheldforsale,thebookvalueofgoodwillinthedisposalgroupshouldbeoffsetfirst,andthenthethebookvalueshouldbeoffsetontheproportionofthebookvalueofvariousnon-currentassetsinthedisposalgroupwhichisapplicabletothemeasurementrequirementsofthisstandard.
Ifthenetvalueofthefairvalueofthenon-currentassetsheldforsaleonthebalancesheetdatelessthanthesellingexpensesincreases,theamountofthepreviouswrite-downshallberestored,itshallbereversedwithintheamountofassetimpairmentlossrecognizedafterbeingclassifiedasheldforsale,andthereversedamountshallbeincludedinthecurrentprofitandloss.Theamountofthelossisreversedandtheamountreversedisincludedinthecurrentprofitorloss.Impairmentlossesonassetsrecognizedpriortoclassificationasheldforsaleshallnot
bereversed.Ifthenetvalueofthefairvalueofthedisposalgroupheldforsaleonthesubsequentbalancesheetdaylessthanthesellingexpensesincreases,theamountpreviouslywrittendownshallberestored,itshallbereversedwithintheamountofassetimpairmentlossrecognizedbythenon-currentassetswhichareapplicabletothemeasurementrequirementsofthisstandardafterbeingclassifiedasheldforsale,andthereversedamountisincludedinthecurrentprofitorloss.Thebookvalueofthegoodwillthathasbeenoffsetandtheassetimpairmentlossrecognizedbeforethenon-currentassetsapplicabletothemeasurementofthisstandardareclassifiedasheldforsaleshallnotbereversed.Forthesubsequentreversaloftheassetimpairmentlossconfirmedbythedisposalgroupheldforsale,thefacevalueshallbeincreasedontheproportionofthebookvalueofvariousnon-currentassetsapplicabletothemeasurementrequirementsofthisstandardinthedisposalgroupexceptthegoodwill.IftheCompanylosescontrolofthesubsidiarybecauseofsomereasonsincludingitssaleofinvestmentsinthesubsidiary,itshallclassifytheoverallinvestmentinthesubsidiaryasheldforsaleintheparentcompany’sindividualfinancialstatementsandclassifyalltheassetsandliabilitiesofthesubsidiaryasheldforsaleintheconsolidatedFinancialStatementswhentheinvestmentinthesubsidiarytobesoldmeetsthecriteriafortheheldforsale,whethertheCompanyretainspartoftheequityinvestmentafterthesale.
19.DebtinvestmentTheCompanyusesthegeneralmodelofexpectedcreditlossesfordebtinvestment.Fordetails,pleaserefertoNoteV.(10).“FinancialInstruments”.
20.OtherdebtinvestmentNone
21.Long-termreceivablesNone
22.Long-termequityinvestments
22.1Determinationofinvestmentcosts
(1)Incasetheenterprisemergersareundercommoncontrolandthecombiningpartyofferscombinedconsiderationbypayingincash,transferringnon-cashassets,assumingdebtorissuingequitysecurities,theinitialinvestmentcostshallbebookvalueoftheshareofthecombinedpartyowner’sequityintheconsolidatedfinancialstatementsofthefinalcontrolpartyonthecombinationdate.capitalreserve(capitalpremiumorequitypremium)areadjustedbasedonthedifferencebetweeninitialinvestmentcostinthelong-termequityinvestmentandbookvalueofthepaidmergerconsiderationorthetotalamountofthefacevalueoftheissuedshares;ifcapitalreserveareinsufficienttowrite-downs,itneedstoadjusttheretainedearnings.Whereanenterprisemergerunderthesamecontrolisrealizedstepbystep,theinitialinvestmentcostshallbetheowner’sequityshareinthecombinedparty’sbookcalculatedonshareholdingratioonthemergerdate.Thedifferencebetweentheinitialinvestmentcostandthebookvalueoftheoriginallong-termequityinvestmentplus
thesumofthebookvaluesoffurtherconsiderationpaidforthenewsharesonthemergerdateisadjustedforcapitalreserve(capitalpremiumorequitypremium).Ifcapitalreserveisinsufficienttooffset,itneedstooffsettheretainedearnings.
(2)Iftheenterprisemergersareunderuncommoncontrol,theinitialinvestmentcostshallbethefairvalueofmergerconsiderationpaidontheacquisitiondate.
(3)Exceptforthesituationofenterprisemerger:ifthepurchaseispaidincash,theinitialinvestmentcostshallbethepurchasepriceactuallypaid;Whereequitysecuritiesareissued,thefairvalueofequitysecuritiesissuedshallbetakenastheinitialinvestmentcost;Whereaninvestorinvests,theinitialinvestmentcostshallbethevalueagreeduponintheinvestmentcontractoragreement(exceptwherethevalueagreeduponinthecontractoragreementisnotfair).
22.2Subsequentmeasurementandrecognitionmethodsofprofitsandlosses
Forthelong-termequityinvestmentwhichenablestheCompanytocontroltheinvestee,theCompanyshalladoptthecostmethodintheindividualfinancialstatementsoftheCompany;long-termequityinvestmentswithjointcontrolorsignificantinfluenceshallbeaccountedforusingtheequitymethod.
Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Exceptforthethepriceactuallypaiduponinvestmentorcashdividendsorprofitsalreadydeclaredbutnotyetpaidintheconsideration,investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.Andatthesameinaccordancewiththerelevantassetimpairmentpolicy,whetherthelong-terminvestmentisdeclinedinvalueshallbeconsidered.
Forcheckingbytheequitymethod,iftheinitialinvestmentcostofthelong-termequityinvestmentisgreaterthanthefairvalueshareofthenetidentifiableassetsoftheinvesteeintheinvestment,thedifferencebetweenthemshallbeclassifiedasinitialinvestmentcostofthelong-termequityinvestment;iftheinitialinvestmentcostofthelong-termequityinvestmentissmallerthanthefairvalueshareofthenetidentifiableassetsoftheinvesteeintheinvestment,thedifferenceisincludedincurrentprofitandlossandthecostofthelong-termequityinvestmentisadjusted.
Whentheequitymethodisadopted,aftertheacquisitionoflong-termequityinvestment,theinvestmentprofitandlossshallberecognizedandthebookvalueoflong-termequityinvestmentshallbeadjustedaccordingtotheshareofnetprofitandlossrealizedbytheinvesteethatshouldbeenjoyedorshared.Upontheconfirmationoftheenjoyedshareofthenetprofitandlossfromtheinvestedentity,itshallbemadeonthebasisofthefairvalueoftheidentifiableassetsoftheinvesteewhentheinvestmentisacquired,accordingtothecompany'saccountingpoliciesandaccountingperiods,offsettinginsidertradingprofitsandlossesbetweenassociatedenterprisesandjointventures,calculatingtheproportionthatshallbeincludedininvestoraccordingtotheshareholdingratio(butifinsidertradinglossbelongstotheassetimpairmentloss,itshouldbefullyconfirmed)andadjustingthenetprofitoftheinvestee.Accordingtotheprofitorcashdividenddeclaredtobedistributedby
theinvestee,thesharepayableshallbecalculated,andcorrespondinglythebookvalueofthelong-termequityinvestmentisreduced.Thecompanyshallrecognizethenetlossincurredbytheinvesteetotheextentthatthebookvalueofthelong-termequityinvestmentandotherlong-termrightsandinterestssubstantiallyconstitutingthenetinvestmentoftheinvesteeshallbewrittendowntozero,exceptwherethecompanyisobligatedtobearadditionallosses.Forthechangesofowners'equityotherthanthenetprofitandlossoftheinvestee,thebookvalueofthelong-termequityinvestmentshallbeadjustedandincludedintheowners'equity.
22.3ThebasisofcontrollingandhavingsignificantinfluenceontheinvestedentityControlreferstohavingthepowerovertheinvestee,enjoyingthevariablereturnthroughparticipatingintheinvestee'srelevantactivities,andhavingtheabilitytousethepowerovertheinvesteetoaffectthereturnamount;majorinfluencemeansthattheinvestorhastherighttoparticipateinthedecisionmakingofthefinancialandbusinesspoliciesoftheinvestee,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.
22.4Disposaloflong-termequityinvestments
(1)Partialdisposalofalong-termequityinvestmentinasubsidiarywithoutlossofcontrolIfpartofthelong-termequityinvestmentinthesubsidiaryisdisposedofwithoutlosingcontrol,thedifferencebetweenthedisposalpriceandthebookvaluecorrespondingtothedisposalinvestmentshallberecognizedasthecurrentinvestmentincome.
(2)LossofcontroloverasubsidiaryforpartialdisposalofanequityinvestmentorotherreasonsIftheCompanylosescontroloverthesubsidiaryduetothedisposalofequityinvestmentpartlyorotherreasons,thebookvalueofthelong-termequityinvestmentcorrespondingtothesoldequityshallbecarriedforward,andthedifferencebetweenthesalepriceandthebookvalueofthedisposallong-termequityinvestmentshallberecognizedasinvestmentincome(loss);meanwhile,theremainingequityshallberecognizedaslong-termequityinvestmentorotherrelevantfinancialassetsaccordingtoitsbookvalue.Iftheremainingequityafterdisposalisabletoexertjointcontrolorsignificantinfluenceonthesubsidiary,accountingtreatmentshallbeconductedaccordingtotherelevantprovisionsoftheconversionfromcostmethodtoequitymethod.
22.5MethodsofimpairmentassessmentanddeterminingtheprovisionforimpairmentlossFortheinvestmentinsubsidiaries,jointventureandassociates,ifthereisanobjectiveevidencefortheimpairmentonthebalancesheetdate,thecorrespondingimpairmentprovisionismadebasedonthedifferencebetweenthebookvalueandtherecoverableamount.
23.Investmentproperties
MeasurementmodelofInvestmentpropertiesCostmeasurementDepreciationoramortizationmethod
23.1TheCompany’sinvestmentpropertiesincludesthelanduserightthatisleasedout,thelanduserightheldfortransferuponcapitalappreciation,andthebuildingthatisleasedout.
23.2TheCompanyinitiallymeasurestheinvestmentpropertiesatcost,usesthecostmodelforsubsequentmeasurement,andadoptsadepreciationoramortizationpolicyfortheinvestmentproperty,whichisinthedamewayasfixedassetsorintangibleassets.Onthebalancesheetdate,iftherearesignsthattheinvestmentpropertiesareimpaired,thecorrespondingimpairmentprovisionshallbemadebasedonthedifferencebetweenthebookvalueandtherecoverableamount.
24.FixedAssets
(1)Recognitioncriteriaforfixedassets
Confirmationconditions,valuationanddepreciationmethodsoffixedassets
Fixedassetsrefertotangibleassetsheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforoperatingmanagementpurposes,whoseusefullivesexceedmorethanoneaccountingyear.
Fixedassetsareinitiallymeasuredattheactualcostatthetimeofacquisition,anddepreciationiscalculatedbyusingthestraight-linemethodsincethemonthsubsequenttotheoneinwhichitisreadyforintendeduse.
(2)Deprecationmethodsforfixedassets
Category
| Category | Deprecationmethods | Depreciationperiod(years) | Residualvaluerate(%) | Annualdepreciationrate(%) |
| Buildings | Straight-line | 20-40 | 5% | 2.38-4.75% |
| Decorationofbuildings | Straight-line | 4-10 | - | 10.00-25.00% |
| Transportationequipment | Straight-line | 4 | 5% | 23.75% |
| Electronicequipment | Straight-line | 3-5 | 5% | 19.00-31.67% |
| Officeequipment | Straight-line | 3-5 | 5% | 19.00-31.67% |
(3)Basisofasserting,valuationmethodanddepreciationmethodforfixedassetsacquiredunderfinancingleasesNone
25.Constructioninprogress
25.1Constructioninprogressshouldbetransferredintofixedassetsatitsactualcostsafterithasreachedtheworkingconditionforitsintendeduse.Constructioninprogressthathasreachedtheworkingconditionbutnotcompleted,shallbetransferredatitsestimatedcosts.Theestimatedcostofconstructioninprogressshouldbe
adjustedagainsttheactualcostsaftercompletionofsettlement,whilethedepreciationalreadyprovidedwillnotbeadjusted.
25.2Onthebalancesheetdate,ifthereisanyindicationthattheconstructioninprogressmaybeimpaired,thecorrespondingimpairmentprovisionshallbemadebasedonthedifferencebetweenthebookvalueandtherecoverableamount.
26.Borrowingcost
26.1Recognitioncriteriaofcapitalization
Borrowingcostsincurredbythecompanythatcanbedirectlyattributabletotheacquisition,constructionorproductionthatmeetthecapitalizationconditionsshallbecapitalizedandincludedintherelevantassetcost;Otherborrowingcostsshallberecognizedasexpenseswhenincurredandshallbeincludedinthecurrentprofitandloss.
26.2Periodofcapitalization
(1)Whenborrowingcostsmeetthefollowingconditionsatthesametime,capitalizationstarts1)Assetexpenditurehasoccurred.2)Borrowingcostshaveincurred3)Thepurchase,constructionorproductionactivitiesnecessarytomaketheassetsusableorsaleablehavestarted.
(2)Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallyandwhenthesuspensionisforacontinuousperiodofmorethan3months;Borrowingcostsincurredduringthesuspensionperiodarerecognizedascurrentcostsuntiltheacquisition,constructionorproductionoftheassetareresumed.
(3)Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.
26.3Capitalizationamountofborrowingcosts
Ifspecialloansareborrowedforthepurposeofpurchasing,constructingorproducingassetsthatmeetthecapitalizationconditions,theactualinterestexpensesincurredduringtheperiodofspecialloans(includingtheamortizationofdiscountsorpremiumsdeterminedinaccordancewiththeactualinterestratemethod),deducttheinterestincomeofbanksobtainbytheunusedborrowingfundsoranyinvestmentincomeobtainedbythetemporaryinvestmentwillbedetermined.Ifthegeneralborrowingsareoccupiedforthepurchase,constructionorproductionofassetsthatmeetthecapitalizationconditions,theCompanydeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetomultiplytheweightedaveragenumberofassetexpendituresinexcessofspecialborrowingsbythecapitalizationrateofgeneralborrowings.
27.BiologicalassetsNone
28.Oilandgasassets
None
29.Right-of-useassetsNone
30.Intangibleassets
30.1Valuationmethod,servicelifeandimpairmenttest
1.Intangibleassets,includinglanduserightsetc.aremeasuredinitiallyatcosts.
2.Intangibleassetswithfiniteservicelivesareamortizedinaccordancewiththeexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheintangibleassetoveritsestimatedusefullife.Ifitisnotpossibletoreliablydeterminetheexpectedrealizationmethod,usethestraight-linemethod.Thespecificyearsareasfollows:
Item
| Item | Validityperiod(Year) |
| Landuserights | 40 |
| Softwareuserights | 5-10 |
| Trademarkrights | 10 |
3.Onthebalancesheetdate,ifthereisanyindicationthattheintangibleassetswithdefinitelifehasbeenimpaired,thecorrespondingimpairmentprovisionshallbemadebasedonthedifferencebetweenthebookvalueandtherecoverableamount.Intangibleassetswithuncertainservicelifeandintangibleassetsthathavenotyetreachedtheusablestate,whetherornottherearesignsofimpairment,aretestedforimpairmenteveryyear.
30.2Accountingpoliciesforinternalresearchanddevelopmentexpenditure
Expenditureintheresearchphaseofinternalresearchanddevelopmentprojectsisincludedinthecurrentprofitsandlosseswhentheyoccur.Expenditureduringthedevelopmentphasethatmeetsthefollowingconditionsatthesametimeisrecognizedasintangibleasset.(1)Itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuseorsale;(2)TheCompanyhastheintentiontocompletetheintangibleassetanduseorsellit;(3)TheCompanycandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomicbenefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;(4)Theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;and(5)Theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbereliablymeasured.
31.Impairmentoflong-termassets
TheCompanymakejudgementonwhetherthereisanyindicationthattheassetmaybeimpairedatthebalancesheetdate.
Thegoodwillresultingfromabusinesscombinationandintangibleassetswithanuncertainservicelifewas
testedforimpairmentannually,regardlessofwhetherthereisanyindicationofimpairment.
Thefollowingindicationstellthattheassetmaybeimpaired
(1)Themarketpriceofassetsfellsharplyinthecurrentperiod,andthedeclinewassignificantlyhigherthantheexpecteddeclineduetothepassageoftimeornormaluse;(2)Significantchangesoftheeconomic,technicalorlegalenvironmentinwhichtheenterpriseoperatesandthemarketinwhichtheassetsarelocatedwilloccurinthecurrentperiodorinthenearfuture,whichwilladverselyaffectthecompany;(3)Themarketinterestrateorothermarketinvestmentreturnshaveincreasedduringthecurrentperiod,whichaffectsthecompany’sdiscountrateforcalculatingthepresentvalueoftheexpectedfuturecashflowofassets,leadingtotherecoverableamounthasbeengreatlyreduced;(4)Thereisevidencethattheassetshavebecomeobsoleteortheirentitieshavebeendamaged;(5)Theassetshavebeenorwillbeidle,terminatedorplannedtobedisposedofinadvance;(6)Theevidencereportedbytheenterpriseindicatesthateconomicperformanceoftheassetshasbeenorwillbelowerthanexpected,suchasthenetcashflowcreatedbytheassetsortherealizedoperatingprofit(orloss)isfarlower(orhigher)thantheexpectedamount;(7)Otherindicationsthattheassetmayhavesignsofimpairment.
Ifthereareanysignsofassetimpairment,therecoverableamountshouldbeestimated.
Therecoverableamountshouldbedeterminedbasedonthehigherofthenetamountofthefairvalueoftheassetminusthedisposalcostsandthepresentvalueoftheestimatedfuturecashflowsoftheasset.
Disposalcostsincludelegalcostsrelatedtoassetdisposal,relatedtaxes,transportationcharges,anddirectcostsincurredtomaketheassetavailableforsale.
Thepresentvalueoftheestimatedfuturecashflowsoftheassetshouldbedeterminedbydiscountingtheamountoftheassetbasedontheexpectedfuturecashflowgeneratedduringthecontinuoususeoftheassetandatthetimeoffinaldisposal.Thepresentvalueoftheexpectedfuturecashflowoftheassetshouldtakeintoaccountfactorssuchastheestimatedfuturecashflowoftheasset,itsusefullife,andthediscountrate.
Themeasurementresultsoftherecoverableamountindicatethatiftherecoverableamountoftheassetislowerthanitsbookvalue,thebookvalueoftheassetshouldbewrittendowntotherecoverableamount,andthereducedamountshouldberecognizedastheassetimpairmentlossandincludedinthecurrentprofitandloss.Meanwhile,correspondingprovisionsforassetimpairmentshouldbemade.
32.Long-termprepaidexpense
Long-termprepaidexpensearerecordedaccordingtotheactualamountincurredandamortizedintheperiodofbenefitorwithintheprescribedperiod.Ifthelong-termprepaidexpenseitemcannotbenefitthesubsequentaccountingperiod,theamortizedvalueoftheitemthathasnotbeenamortizedwillbetransferredintothecurrentprofitandloss.
33.Contractliabilities
TheCompanylistscontractassetsorcontractliabilitiesinthebalancesheetbasedontherelationship
betweentheperformanceofobligationsandcustomerpayments.TheobligationoftransferringproductsorprovidingservicestocustomersaftertheCompanyhasreceivedtheconsiderationfromcustomersortheconsiderationisreceivable,islistedascontractliabilities.
34.Employeecompensation
(1)Accountingtreatmentmethodsofshort-termemployeeremunerationDuringtheaccountingperiodwhentheemployeesprovideservices,theCompanyshallrecognizetheactualshort-termcompensationasliabilitiesandrecorditintothecurrentprofitandlossorthecostofrelatedassets.Amongthem,non-monetarywelfareismeasuredaccordingtofairvalue.
(2)Accountingtreatmentmethodsofpost-employmentbenefitsNone
(3)Accountingtreatmentmethodsofdismissalbenefits
WhentheCompanyterminatestheemploymentrelationshipwithemployeesbeforetheexpirationoftheemploymentcontractsorprovidescompensationasanoffertoencourageemployeestoacceptvoluntaryredundancy,iftheCompanyhasaformalplanforterminationofemploymentrelationshiporhasmadeanofferforvoluntaryredundancywhichwillbeimplementedimmediately,andtheCompanycannotunilaterallywithdrawfromtheterminationplanortheredundancyoffer,aprovisionforthecompensationpayablearisingfromtheterminationofemploymentrelationshipwithemployeesisrecognizedwithacorrespondingchargetotheprofitorlossfortheperiod,andincludeincurrentprofitsorlosses.
(4)Accountingtreatmentmethodsofotherlong-termemployeebenefits
TheCompany'semployeesparticipatedinthesocialbasicendowmentinsuranceorganizedandimplementedbythelocallaborandsocialsecuritydepartments.Thecompanypaysendowmentinsurancepremiumtoorgnaizationofagencyoflocalsocietyprimaryendowmentinsuranceaccordingtothesocialprimaryendowmentinsurancepaybaseandscalewithlocalregulationmonthly.Aftertheemployeeretires,thelocallaborandsocialsecuritydepartmenthastheresponsibilitytopaythesocialbasicpensiontotheretiredemployee.Theaccountingperiodduringwhichthecompanyprovidesservicestoitsemployees,andtheamountcalculatedinaccordancewiththeabovesocialsecurityprovisionsshallberecognizedasaliabilityandrecordedintothecurrentprofitandlossorthecostofrelevantassets.
35.LeaseliabilitiesNone
36.Estimatedliabilities
36.1TheCompanyshallrecognizethisobligationascontingentliabilitywhentheobligationsarisingfromtheprovisionofexternalguarantees,litigationmatters,productqualityguarantees,losscontractsandothercontingenciesbecomethecurrentobligationsassumedbytheCompanyandthefulfillmentofsuchobligationsislikelytoresultintheoutflowofeconomicbenefitsfromthecompanyandtheamountofsuchobligationscanbe
reliablymeasured.
36.2TheCompanyshallinitiallymeasuretheprovisionsaccordingtothebestestimateoftheexpensesrequiredtoperformtherelevantcurrentobligations,andshallreviewthebookvalueoftheestimatedliabilitiesonthebalancesheetdate.
37.Share-basedpayments
37.1Categoriesofshare-basedpayments
Share-basedpaymentscompriseequity-settledandcash-settledpayments.
37.2Determinationoffairvalueofequityinstruments
(1)Ifthereisanactivemarket,itshouldbedeterminedbasedonthequotedpriceintheactivemarket.
(2)Ifthereisnoactivemarket,itisdeterminedbyusingvaluationtechniques,includingconsideringthepricesusedinrecentmarkettransactionsmadebypartiesfamiliarwiththesituationandtakingtransactionsvoluntarily,andconsideringthecurrentfairvaluesandcashflowsofotherfinancialinstrumentsthataresubstantiallythesamediscountmethodandoptionpricingmodel.
37.3Basisfordeterminingthebestestimateofexercisablerightsandinterests
TheCompanywouldmakebestestimateinaccordancewiththenewlyacquiredinformationsuchaschangesinthenumberofemployeesentitledtoequityinstruments.
37.4Relevantaccountingtreatmentofimplementation,modificationandterminationofshare-basedpaymentplan
(1)Equity-settledshare-basedpayments
Equity-settledshare-basedpaymentsthatareimmediatelyavailableafterthegrantinexchangeforemployeeservicesareincludedinrelatedcostsorexpensesbasedonthefairvalueoftheequityinstrumentsonthegrantdate,andthecapitalreserveisadjustedaccordingly.Equity-settledshare-basedpaymentsforservicesthathavebeencompletedduringthewaitingperiodorthatareexercisableonlyiftherequiredperformanceconditionsaremetareexchangedforemployeeservices.Ateachreportingdateduringthewaitingperiod,thebestestimateofthenumberofexercisableequityinstrumentsisbasedonthefairvalueoftheequityinstrumentgrantdate,theservicesobtainedinthecurrentperiodareincludedinrelatedcostsorexpenses,andthecapitalreserveisadjustedaccordingly.
Forequity-settledshare-basedpaymentsinexchangeforservicesprovidedbyotherparties,ifthefairvalueofservicesprovidedbyotherpartiescanbereliablymeasured,theyshouldbemeasuredatthefairvalueoftheservicesofotherpartiesontheacquisitiondate;ifthefairvaluesofservicesprovidedbyotherpartiescannotbemeasuredreliably,butfortheequityinstrumentswhosefairvaluecanbereliablymeasured,theyshouldbemeasuredatthefairvalueoftheequityinstrumentonthedateofserviceacquisitionandincludedinrelatedcostsorexpenses,increasingowner’sequityaccordingly.
(2)Cash-settledshare-basedpaymentsThecash-settledshare-basedpaymentinexchangeforemployeeservicesimmediatelyafterthegrantisincludedintherelatedcostsorexpensesatthefairvalueoftheliabilityassumedbytheCompanyonthegrantdate,andtheliabilityisincreasedaccordingly.Cash-settledshare-basedpaymentsforservicesthathavebeencompletedwithinthewaitingperiodorthathavemettherequiredperformanceconditionsinexchangeforemployeeservicesarebasedonthebestestimateoftherighttoexerciseateachbalancesheetdateduringthewaitingperiod.Accordingtothefairvalueofliabilitiesassumedbythecompany,theservicesobtainedinthecurrentperiodareincludedinrelatedcostsorexpensesandcorrespondingliabilities.
(3)ModifyingandterminatingthesharepaymentplanIftheamendmentincreasesthefairvalueoftheequityinstrumentsgranted,theCompanywillrecognizetheincreaseintheacquisitionofservicesinaccordancewiththeincreaseinthefairvalueoftheequityinstruments;iftheamendmentincreasesthenumberofequityinstrumentsgranted,thecompanywillincreasethevalueoftheequityinstruments.Thefairvalueiscorrespondinglyrecognizedasanincreaseinaccesstoservices;ifthecompanymodifiestheconditionsoftheexercisablerightsinamannerthatbenefitsemployees,thecompanyconsidersthemodifiedconditionsoftheexercisablerightswhenprocessingtheconditionsoftheexercisablerights.
Iftheamendmentreducesthefairvalueoftheequityinstrumentgranted,theCompanycontinuestorecognizetheamountofservicesobtainedbasedonthefairvalueoftheequityinstrumentonthegrantdate,withoutconsideringthedecreaseinthefairvalueoftheequityinstrument;iftheamendmentreducestheequitygrantedforthenumberofinstruments,thecompanywilltreatthereductionasthecancellationofthegrantedequityinstruments;iftheconditionsoftheexercisablerightsaremodifiedinamannerthatisnotconducivetoemployees,therevisedconditionsoftheexercisablerightsarenotconsideredwhenprocessingtheconditionsoftheexercisablerights.
IftheCompanycancelsthegrantedequityinstrumentsorclearsthegrantedequityinstrumentsduringthewaitingperiod(exceptforthosethatarecanceledbecausetheconditionsoftheexercisablerightsarenotmet),thecancellationorsettlementistreatedasanexpeditedexercisablerightsandtheoriginalamountrecognizedduringtheremainingwaitingperiod.
38.OtherfinancialinstrumentssuchaspreferredstocksandperpetualbondsNone
39.Revenue
Accountingpoliciesappliedinrevenuerecognitionandmeasurement
39.1Recognitionofincome
TheCompany’srevenueismainlyfromeducationandtraining.
TheCompanyrecognizestheincomeafterithasfulfilleditsperformanceobligationinthecontract,thatis,whenthecustomeracquirescontroloftherelevantgoods.
39.2Accordingtotherelevantprovisionsoftheincomestandards,theCompanyjudgesthatthenatureoftherelevantperformanceobligationsbelongsto“performanceobligationsperformedwithinacertainperiodoftime”or“performanceobligationsperformedatacertainpointoftime”,andrespectivelyrecognizestheincomeaccordingtothefollowingprinciples.
(1)IftheCompanymeetsoneofthefollowingconditions,itbelongstotheperformanceobligationwithinacertainperiodoftime:
1)ThecustomerobtainsandconsumestheeconomicbenefitsbroughtbytheCompany'sperformancewhentheCompanyfulfillsitsperformance.
2)ThecustomercancontroltheassetsunderconstructionduringtheperformanceoftheCompany.
3)TheassetsproducedbytheCompanyduringtheperformancehaveirreplaceableuses,andtheCompanyhastherighttocollectpaymentforthecumulativeperformancethathasbeencompletedsofarduringtheentirecontractperiod.
Forperformanceobligationsperformedwithinacertainperiodoftime,theCompanyshallrecognizetheincomeaccordingtotheperformanceschedulewithinthatperiod,exceptwheretheperformanceschedulecannotbereasonablydetermined.TheCompanyconsidersthenatureofthegoodsandadopttheoutputmethodorinputmethodtodeterminetheappropriateprogressofperformance.
(2)Forperformanceobligationsthatarenotperformedwithinacertainperiodoftime,butareperformanceobligationsperformedatacertainpointoftime,theCompanyrecognizesrevenueatthepointwhenthecustomerobtainscontroloftherelevantproducts.
Whenjudgingwhetherthecustomerhasobtainedcontroloftheproduct,theCompanyconsidersthefollowingsigns:
1)TheCompanyhasthecurrentrighttocollectpaymentforthegoodsorservices,thatis,thecustomerhasthecurrentpaymentobligationfortheproduct;
2)TheCompanyhastransferredthelegalownershipofthegoodstothecustomer,thatis,thecustomerhasthelegalownershipofthegoods;
3)TheCompanyhastransferredthegoodsinkindtothecustomer,thatis,thecustomerhastakenpossessionofthegoodsinkind;
4)TheCompanyhastransferredthelegalownershipoftheproductorthemainrisksandrewardsofownershiptothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsintheownershipofthegoods;
5)Thecustomerhasacceptedthecommodity;
6)Otherindicationsthatcustomershavetakencontrolofthegoods.Specificpoliciesforrevenuerecognition:
TheCompany’srevenuemainlyincludestrainingrevenuefromthecommoncoursestrainingandthecontractualcoursestraining.Whenaface-to-facetraininginthecommoncoursesiscompleted,allthetrainingfeesreceivedinadvancearerecognizedasrevenue.Revenuefromonlinetrainingincommoncoursesisrecognizedonastraight-linebasisduringthevalidityperiodoftheserviceprovided.Non-refundableportionofadvancepaymentsreceivedforthecontractualcoursesisrecognizedasrevenueuponcompletionoftrainingservices.Accordingtotheagreementonthecontractualcourses,therefundpartoftheadvancereceivedisrecognizedasrevenuewhenthenon-refundableconditionsaremet.
39.3Measurementofincome
TheCompanyshallmeasurerevenueatthetransactionpriceallocatedtoeachindividualperformanceobligation.Indeterminingthetransactionprice,theCompanyconsiderstheinfluenceoffactorssuchasvariableconsideration,majorfinancingcomponentsinthecontract,non-cashconsideration,andconsiderationpayabletocustomers.
(1)Variableconsideration
TheCompanydeterminesthebestestimateofthevariableconsiderationbasedontheexpectedvalueorthemostlikelyamount,butthetransactionpriceincludingthevariableconsiderationshouldnotexceedtheaccumulatedrecognizedrevenuewhentherelevantuncertaintyiseliminated.Whenassessingwhetherthecumulativerecognizedincomeislikelynottobesignificantlyreversed,theenterpriseshallalsoconsiderthepossibilityandproportionoftheincomereversal.
(2)Significantfinancingcomponent
Wherethereisasignificantfinancingcomponentinthecontract,theCompanyshalldeterminethetransactionpricebasedontheamountpayableincashontheassumptionthatthecustomeracquirescontrolofthegoods.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedbytheeffectiveinterestmethodduringthecontractperiod.
(3)Non-cashconsideration
Ifthecustomerpaysnon-cashconsideration,thecompanyshalldeterminethetransactionpricebasedonthefairvalueofthenon-cashconsideration.Ifthefairvalueofthenon-cashconsiderationcannotbereasonablyestimated,theCompanyshallindirectlydeterminethetransactionpricewithreferencetotheseparatesellingpriceofthegoodsitundertakestotransfertothecustomer.
(4)Considerationpayabletocustomer
Fortheconsiderationpayabletothecustomer,theconsiderationpayableshallbeoffsetbythetransactionprice,andthecurrentrevenueshallbeoffsetatthetimewhentherelevantrevenueisrecognizedandthepayment
(orpromisedtopay)ofthecustomer’sconsiderationislater.Exceptwherethecustomerconsiderationisduetoobtainotherclearlydistinguishablegoodsfromthecustomer.Iftheenterprisepaysthecustomerconsiderationtoobtainotherclearlydistinguishablegoodsfromthecustomer,itshallconfirmthepurchasedgoodsinamannerconsistentwithotherpurchasesbytheenterprise.Iftheconsiderationpayablebytheenterprisetothecustomerexceedsthefairvalueoftheclearlydistinguishablecommodityobtainedfromthecustomer,theexcessamountshallbeoffsetagainstthetransactionprice.Ifthefairvalueoftheclearlydistinguishablecommodityobtainedfromthecustomercannotbereasonablyestimated,theenterpriseshalloffsetthetransactionpriceinfullfromtheconsiderationpayabletothecustomer.
40.Governmentgrants
40.1Governmentgrantsincludeassetrelatedgovernmentgrantsandincomerelatedgovernmentgrants.
40.2Ifagovernmentgrantisintheformofmonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofanon-monetaryasset,itismeasuredatfairvalue.Ifthefairvaluecannotbereliablydetermined,itismeasuredatanominalamount.
40.3Thegovernmentgrantadoptsthetotalmethod
(1)Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andareincludedinprofitandlossininstallmentsonareasonableandsystematicbasisovertheservicelifeoftherelatedasset.Iftherelevantassetsaresold,transferred,scrappedordamagedbeforetheendoftheirservicelives,theundistributedbalanceofrelateddeferredincomewillbetransferredtotheprofitorlossoftheassetdisposalinthecurrentperiod.
(2)Ifagovernmentgrantrelatedtoincomeisusedtocompensatefortherelatedexpensesorlossesinthesubsequentperiod,itshallberecognizedasdeferredincomeandshallberecordedinthecurrentprofitorlossinwhichtherelevantexpensesarerecognized;Forthecompensationofrelatedexpensesorlossesthathaveoccurred,theyshallbedirectlyincludedinthecurrentprofitsandlosses.
Forgovernmentgrantsthatincludeboththeasset-relatedportionandtheincome-relatedportion,thedifferentpartsareseparatelyaccountedfor;ifitisindistinguishable,theoverallclassificationisrevenue-relatedgovernmentsubsidies.
40.4Governmentgrantsrelatedtothecompany’sdailyactivitiesinaccordancewiththenatureoftheeconomicbusinessareincludedinotherincomeorwrittendowntherelatedcosts;governmentgrantsthatareunrelatedtothedailyactivitiesofthecompanyshallbeincludedinnon-operatingincomeandexpenditure.
41.Thedeferredincometaxassetsandthedeferredincometaxliabilities
41.1Accordingtothebookvalueoftheassets,liabilitiesanditstaxbasethedifferencebetweenthe(notconfirmedprojectasassetsandliabilitiesofitstaxbasecanbedeterminedinaccordancewiththeprovisionsofthetaxlaw,thetaxbaseandthedifferencebetweenthebooknumber),accordingtotheforecastoftheassetisrecoveredortheapplicabletaxratecalculationduringthedebtconfirmedDeferredtaxassetsanddeferredtax
liabilities.
41.2Confirmthedeferredincometaxassetstoprobablygetusedtomakingthedeductibletemporarydifferencesarelimitedtotheamountoftaxableincome.Duringthebalancesheetdate,thereisstrongevidencethatthefutureislikelytoobtainsufficienttaxableincometooffsetthedeductibletemporarydifference,confirmtheunconfirmeddeferredincometaxassetsinpreviousaccountingperiods.
41.3Onthebalancesheetdate,thebookvalueofthedeferredincometaxassetsisreviewed,andifitislikelythatsufficienttaxableincomecannotbeobtainedinthefuturetooffsetthebenefitofthedeferredincometaxassets,thebookvalueofthedeferredincometaxassetsshallbewrittendown.Ifitislikelytoobtainsufficienttaxableincome,thereducedamountshallbereversed..
41.4TheCompany’scurrentincometaxanddeferredincometaxasrecordedintotheprofitsandlossesofthecurrentincometaxexpenses,orearnings,butdoesnotincludetheincometaxinthefollowingcircumstances:(1)Thebusinesscombination;(2)Directconfirmationoftransactionsoreventsintheowner’sequity.
42.Lease
42.1Accountingtreatmentofoperatingleases
TheCompanyaslesseeunderoperatingleases:operatingleasepaymentsarerecognizedonastraight-linebasisoverthetermoftherelevantlease,andareeitherincludedinthecostofrelatedassetorchargedtoprofitorlossfortheperiod.Initialdirectcostsincurredarechargedtoprofitorlossfortheperiod.Contingentrentsarechargedtoprofitorlossintheperiodinwhichtheyareactuallyincurred.
TheCompanyaslessorunderoperatingleases:rentalincomefromoperatingleasesisrecognizedinprofitorlossonastraight-linebasisoverthetermoftherelevantlease.Initialdirectcostswithmorethananinsignificantamountarecapitalizedwhenincurred,andarerecognizedinprofitorlossonthesamebasisasrentalincomeovertheleaseterm.Otherinitialdirectcostswithaninsignificantamountarechargedtoprofitorlossintheperiodinwhichtheyareincurred.Contingentrentsarechargedtoprofitorlossintheperiodinwhichtheyactuallyarise.
42.2Accountingtreatmentoffinancialleases
TheCompanyaslesseeunderfinanceleases:atthecommencementoftheleaseterm,theCompanyrecordstheleasedassetatanamountequaltothelowerofthefairvalueoftheleasedassetandthepresentvalueoftheminimumleasepaymentsattheinceptionofthelease,andrecognizesalong-termpayableatanamountequaltotheminimumleasepayments.Thedifferencebetweentherecordedamountsisaccountedforasunrecognizedfinancecharge.Unrecognizedfinancechargesarerecognizedasfinancechargefortheperiodusingtheeffectiveinterestmethodovertheleaseterm.
TheCompanyaslessorunderfinanceleases:atthecommencementoftheleaseterm,theaggregateoftheminimumleasereceivableattheinceptionoftheleaseandtheinitialdirectcostsisrecognizedasafinanceleasereceivable,andtheunguaranteedresidualvalueisrecordedatthesametime.Thedifferencebetweenthe
aggregateoftheminimumleasereceivable,theinitialdirectcostsandtheunguaranteedresidualvalue,andtheaggregateoftheirpresentvaluesisrecognizedasunearnedfinanceincome.Unearnedfinanceincomeisrecognizedasfinanceincomefortheperiodusingtheeffectiveinterestmethodovertheleaseterm.
43.OthersignificantaccountingpoliciesandaccountingestimatesNone
44.ChangesinImportantAccountingPoliciesandAccountingEstimates
(1)ChangesinImportantAccountingPolicies
√Applicable□NotApplicable
Contentandreasonsofchangesinaccounting
policies
| Contentandreasonsofchangesinaccountingpolicies | Approvalprocedures | Remarks |
| AccordingtotherevisedAccountingStandardsforBusinessEnterprisesNo.14-Revenue(Accounting[2017]No.22)(hereinafterreferredtoasthenewrevenuestandard)issuedbytheMinistryofFinanceonJuly5,2017,theCompanywillimplementthenewrevenuestandardfromJanuary1,2020. | Approvedbythe10thMeetingofthe5thBoardofDirectorsandthe9thMeetingofthe5thBoardofSupervisors. | Accordingtotheaccumulatedimpact,theamountofretainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsshallbeadjusted,whilethedatainthecomparableperiodshallnot. |
(2)ChangesinImportantAccountingEstimates
□Applicable√NotApplicable
(3)Therelevantitemsofthefirstlycarriedoutfinancialstatementsatthebeginningofthatyearadjustedonthenewrevenuestandardandthenewleasestandardimplementedforthefirsttimesince2020ApplicableWhethertoadjustthebalancesheetaccountatthebeginningoftheyear
√Yes□NoConsolidatedbalancesheet
Unit：RMB
| Item | December31,2019 | January1,2020 | Adjustment |
| CurrentAssets: | |||
| Monetaryfunds | 2,724,335,001.58 | 2,724,335,001.58 | |
| Settlementreserve | |||
| Duefrombanksandotherfinancialinstitutions | |||
| Transactionalfinancialassets | 1,754,396,227.54 | 1,754,396,227.54 | |
| Derivativefinancialassets | |||
| NotesReceivable |
AccountsReceivable
| AccountsReceivable | 2,721,638.09 | 2,721,638.09 |
| Financingreceivables | ||
| Prepayments | 2,461,009.00 | 2,461,009.00 |
| Premiumreceivables | ||
| Reinsuranceaccountsreceivable | ||
| Reinsurancecontractreservereceivables | ||
| Otherreceivables | 255,013,296.96 | 255,013,296.96 |
| Inc:Interestreceivables | 567,341.68 | 567,341.68 |
| Dividendsreceivables | ||
| Financialassetspurchasedunderresaleagreements | ||
| Inventories | ||
| Contractassets | ||
| Assetsheldforsale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | 97,336,600.16 | 97,336,600.16 |
| Totalcurrentassets | 4,836,263,773.33 | 4,836,263,773.33 |
| Non-currentassets: | ||
| LoansandAdvances | ||
| Debtinvestments | 1,923,598,909.09 | 1,923,598,909.09 |
| Otherdebtinvestments | ||
| Long-termreceivables | ||
| Long-termequityinvestment | ||
| Otherequityinstruments | 162,800,000.00 | 162,800,000.00 |
| Othernon-currentfinancialassets | 138,166,559.96 | 138,166,559.96 |
| Investmentproperties | 688,475,053.53 | 688,475,053.53 |
| Fixedassets | 672,429,601.44 | 672,429,601.44 |
| Constructioninprogress | 653,580,160.32 | 653,580,160.32 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets |
Intangibleassets
| Intangibleassets | 197,507,227.40 | 197,507,227.40 | |
| Developmentexpenditure | |||
| Goodwill | 99,867,720.38 | 99,867,720.38 | |
| Long-termprepaidexpense | 240,565,962.02 | 240,565,962.02 | |
| Deferredtaxassets | 21,482,832.13 | 21,482,832.13 | |
| Othernon-currentassets | 325,967,628.34 | 325,967,628.34 | |
| Totalnon-currentassets | 5,124,441,654.61 | 5,124,441,654.61 | |
| Totalassets | 9,960,705,427.94 | 9,960,705,427.94 | |
| Currentliabilities: | |||
| Short-termborrowings | 2,867,000,000.00 | 2,867,000,000.00 | |
| Borrowingfromthecentralbank | |||
| Borrowingsfrombanksandotherfinancialinstitutions | |||
| Transactionalfinancialliabilities | |||
| Derivativefinancialliabilities | |||
| Notespayable | |||
| Accountspayable | 236,481,990.86 | 236,481,990.86 | |
| Receiptsinadvance | 2,634,276,203.88 | -2,634,276,203.88 | |
| Contractliabilities | 2,557,549,712.50 | 2,557,549,712.50 | |
| Financialassetssoldforrepurchase | |||
| Receiptofdepositsanddepositsfromotherbanks | |||
| Customerdepositsfortradinginsecurities | |||
| Amountsduetoissuerforsecuritiesunderwriting | |||
| Employeebenefitspayable | 411,475,636.03 | 411,475,636.03 | |
| Taxespayable | 184,306,027.84 | 184,306,027.84 | |
| Otherpayable | 88,693,411.98 | 88,693,411.98 | |
| Inc：Interestpayables | 4,521,557.54 | 4,521,557.54 | |
| Dividendspayable | |||
| Feesandcommissionpayable | |||
| Accountspayablereinsurance |
Held-for-saleliabilities
| Held-for-saleliabilities | |||
| Non-currentliabilitiesduewithinoneYear | |||
| Othercurrentliabilities | 76,726,491.38 | 76,726,491.38 | |
| Totalcurrentliabilities | 6,422,233,270.59 | 6,422,233,270.59 | |
| Non-currentLiabilities: | |||
| Depositsforinsurancecontracts | |||
| Long-termloans | |||
| Bondspayable | |||
| Inc:Bondspayablepreferredstock | |||
| Bondspayableperpetualbond | |||
| Leaseliabilities | |||
| Long-termpayable | |||
| Long-termpayrollpayable | |||
| Provisions | |||
| DeferredIncome | |||
| Deferredtaxliabilities | 106,932,273.03 | 106,932,273.03 | |
| Othernon-currentliabilities | |||
| Totalnon-currentliabilities | 106,932,273.03 | 106,932,273.03 | |
| Totalliabilities | 6,529,165,543.62 | 6,529,165,543.62 | |
| Owners'equity: | |||
| Sharecapital | 103,807,623.00 | 103,807,623.00 | |
| Otherequityinstrument | |||
| Inc:Otherequityinstrumentspreferredstock | |||
| Otherequityinstrumentsperpetualbond | |||
| Capitalreserve | 1,198,581,049.50 | 1,198,581,049.50 | |
| Less:Treasurystock | |||
| Othercomprehensiveincome | 37,500,000.00 | 37,500,000.00 | |
| Specialreserve | |||
| Surplusreserve | 45,000,000.00 | 45,000,000.00 | |
| Generalriskreserve | |||
| Undistributedearnings | 2,046,657,231.32 | 2,046,657,231.32 |
Totalowners'equityattributabletotheparentcompany
| Totalowners'equityattributabletotheparentcompany | 3,431,545,903.82 | 3,431,545,903.82 |
| Minorityshareholders'equity | -6,019.50 | -6,019.50 |
| Totalowners'equity | 3,431,539,884.32 | 3,431,539,884.32 |
| Totalliabilitiesandowners'equity | 9,960,705,427.94 | 9,960,705,427.94 |
DescriptionofadjustmentOnJanuary1,2020,theCompanyreclassifieddepositreceivedofRMB2,557,549,712.50relatedtocommoditysalesandprovisionoflaborservicesintocontractliabilitiesandreclassifiedrelevantVAToutputtaxofRMB76,726,491.38intoothercurrentliabilities.Balancesheetofparentcompany
Unit:RMB
| Item | December31,2019 | January1,2020 | Adjustment |
| CurrentAssets: | |||
| Monetaryfunds | 6,931,803.33 | 6,931,803.33 | |
| Transactionalfinancialassets | 101,681.64 | 101,681.64 | |
| Derivativefinancialassets | |||
| Notereceivables | |||
| AccountsReceivable | |||
| Financingreceivables | |||
| Prepayments | |||
| Otherreceivables | 1,717,949,520.99 | 1,717,949,520.99 | |
| Inc:Interestreceivables | |||
| Dividendsreceivables | 1,700,000,000.00 | 1,700,000,000.00 | |
| Inventories | |||
| Contractassets | |||
| Assetsheldforsale | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | |||
| Totalcurrentassets | 1,724,983,005.96 | 1,724,983,005.96 | |
| Non-currentassets: | |||
| Debtinvestment | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestment | 18,582,307,907.14 | 18,582,307,907.14 | |
| Otherequityinstruments | 162,800,000.00 | 162,800,000.00 |
Othernon-currentfinancialassets
| Othernon-currentfinancialassets | ||
| Investmentproperties | 395,978,156.15 | 395,978,156.15 |
| Fixedassets | ||
| Constructioninprogress | 72,569,103.57 | 72,569,103.57 |
| Productiverbiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useassets | ||
| Intangibleassets | ||
| Developmentexpenditure | ||
| Goodwill | ||
| Long-termprepaidexpenses | ||
| Deferredtaxassets | 10,804,928.62 | 10,804,928.62 |
| Othernon-currentassets | ||
| Totalnon-currentassets | 19,224,460,095.48 | 19,224,460,095.48 |
| Totalassets | 20,949,443,101.44 | 20,949,443,101.44 |
| Currentliabilities: | ||
| Short-termloans | ||
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notepayable | ||
| Accountspayable | 561,752.26 | 561,752.26 |
| Receiptsinadvance | ||
| Contractliabilities | ||
| Employeebenefitspayable | ||
| Taxespayable | 791,191.77 | 791,191.77 |
| Otherpayables | 40,275,566.88 | 40,275,566.88 |
| Inc:Interestpayable | ||
| Dividendspayable | ||
| Held-for-saleliabilities | ||
| Non-currentliabilitiesduewithinoneyear | ||
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 41,628,510.91 | 41,628,510.91 |
Non-currentliabilities:
| Non-currentliabilities: | ||
| Long-termloans | ||
| Bondspayable | ||
| Inc:Bondspayablepreferredstock | ||
| Bondspayableperpetualbond | ||
| Leaseliabilities | ||
| Long-termpayable | ||
| Long-termpayrollpayable | ||
| Provisions | ||
| Deferredincome | ||
| Deferredtaxliabilities | 12,500,420.41 | 12,500,420.41 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 12,500,420.41 | 12,500,420.41 |
| Totalliabilities | 54,128,931.32 | 54,128,931.32 |
| Owners'equity: | ||
| Sharecapital | 6,167,399,389.00 | 6,167,399,389.00 |
| Otherequityinstrument | ||
| Inc:Otherequityinstrumentspreferredstock | ||
| Otherequityinstrumentsperpetualbond | ||
| Capitalreserve | 12,775,326,370.33 | 12,775,326,370.33 |
| Less:treasurystock | ||
| Othercomprehensiveincome | 37,500,000.00 | 37,500,000.00 |
| Specialreserve | ||
| Surplusreserve | 387,458,806.65 | 387,458,806.65 |
| Undistributedearnings | 1,527,629,604.14 | 1,527,629,604.14 |
| Totalowners'equity | 20,895,314,170.12 | 20,895,314,170.12 |
| Totalliabilitiesandowners'equity | 20,949,443,101.44 | 20,949,443,101.44 |
Descriptionofadjustment
（4）Descriptionofcomparativedataintheearlystageofretroactiveadjustmentofthenewrevenuestandardandthenewleasestandardinitiallyimplementedsince2020
□Applicable√NotApplicable
45.OthersNone
SectionVI.Taxes
1.Majorcategoriesoftaxesandtaxrates
Categoryoftax
| Categoryoftax | Basisoftax | Taxrate |
| Value-addedtax | Taxablerevenueforsalesofgoodsandsupplyofservices | 3%、5%、6% |
| Citymaintenanceandconstructiontax | Turnovertaxespayable | 5%、7% |
| Corporateincometax | Taxableincome | 15%、20%、25% |
| Educationsupplementarytax | Turnovertaxespayable | 3% |
| Localeducationsupplementarytax | Turnovertaxespayable | 1.5%、2% |
Disclosurestatementontaxpayerswithdifferentcorporateincometaxrates
| Namesoftaxpayers | Incometaxrates |
| 1.TheCompany | 25% |
| 2.OffcnLtd. | 15% |
| 3.WuhuYaweiAutomobileSalesServiceCo.,Ltd | 25% |
| 4.NingguoYaxiaMotorVehicleDriverTrainingSchool(Co.,Ltd.) | 25% |
| 5.HuangshanYaxiaFudiAutomobileSalesServicesCo.,Ltd. | 20% |
| 6.ChaohuYaxiaKaixuanAutomobileSalesServiceCo.,Ltd. | 25% |
| 7.BozhouYaxiaMotorVehicleDriverTrainingSchoolCo.,Ltd. | 25% |
| 8.SuzhouBokaiAutomobileSalesServiceCo.,Ltd. | 25% |
| 9.BeijingOffcnFutureEducationTechnologyCo.Ltd | 20% |
| 10.BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | 25% |
| 11.ShaanxiOffcnEducationTechnologyCo.Ltd. | 25% |
| 12.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | 25% |
| 13.ZhejiangOffcnEducationTechnologyCo.Ltd.. | 25% |
| 14.TaizhouOffcnFutureEnterpriseManagementConsultingCo.,Ltd. | 20% |
| 15.BeijingOffcnXinzhiyuOnlineTechnologyCo.,Ltd. | 20% |
| 16.HulunbeierHailarOffcnEducationInformationConsultingCo.,Ltd.. | 20% |
| 17.XilinhotOffcnFutureEducationConsultingCo.,Ltd | 25% |
| 18.YueqingLechengOffcnTrainingCenterCo.,Ltd.. | 20% |
| 19.JiaozuoOffcnFutureEducationServiceCo.,Ltd | 20% |
| 20.XinzhengOffcnCulturalCommunicationCo.,Ltd.. | 20% |
21.ChongqingJiangbeiOffcnVocationalExaminationTrainingCo.,Ltd.
| 21.ChongqingJiangbeiOffcnVocationalExaminationTrainingCo.,Ltd. | 20% |
| 22.NanjingOffcnFutureEducationConsultingCo.,Ltd. | 25% |
| 23.BaiyinOffcnFutureEducationConsultingCo.,Ltd. | 20% |
| 24.BeijingXindeZhiyuanEnterpriseManagementConsultingCo.,Ltd.. | 20% |
| 25.NanjingHuiyueHotelManagementCo.,Ltd. | 25% |
| 26.ShandongKunzhongRealEstateCo.,Ltd. | 25% |
| 27.SanmenxiaOffcnCulturalCommunicationCo.,Ltd. | 20% |
| 28.LiaoningOffcnAcademic&CulturalExchangeCo.,Ltd. | 25% |
| 29.LiaoningOffcnEducationTechnologyCo.,Ltd. | 25% |
| 30.ShandongOffcnEducationTechnologyCo.,Ltd. | 25% |
| 31.JilinChangyiOffcnEducationTrainingSchoolCo.,Ltd. | 25% |
| 32.YuxiOffcnTrainingSchoolCo.,Ltd. | 20% |
| 33.TonghuaOffcnTrainingSchoolCo.,Ltd. | 25% |
| 34.HunanLightsaltOffcnEducationTechnologyCo.,Ltd.. | 25% |
| 35.TianjinHexiOffcnTrainingSchoolCo.,Ltd. | 20% |
| 36.ChengduOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 37.ShandongZhuodaBusinessManagementCo.,Ltd. | 20% |
| 38.LiaoningZhongchengRealEstateDevelopmentCo.,Ltd. | 25% |
| 39.WuhuOffcnTrainingSchoolCo.Ltd. | 25% |
| 40.WuhanGuoshangHumanResourceServiceCo.,Ltd. | 25% |
| 41.JinanZhangqiuOffcnTrainingSchoolCo.Ltd. | 20% |
| 42.MengziOffcnEducationTrainingCo.Ltd.. | 25% |
| 43.BeijingOffcnTechnologyDevelopmentCo.Ltd.. | 25% |
| 44.ShanghaiOffcnEducationTechnologyCo.Ltd. | 25% |
| 45.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | 25% |
| 46.PingshanOffcnEducationTechnologyCo.Ltd. | 25% |
| 47.ShandongOffcnEducationTrainingSchoolCo.Ltd. | 25% |
| 48.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | 25% |
2.Preferentialtaxation
2.1.Value-addedtax
(1)AccordingtotheNoticeonImplementingtheInclusiveTaxReductionPolicyforSmallandMicroEnterprises(CS[2019]No.13),inordertofurthersupportthedevelopmentofsmallandmicroenterprises,fromJanuary1,2019toDecember31,2021,small-scalevalue-addedtaxpayerswithmonthlysaleslessthanRMB100,000(includingtheactualamount)areexemptfromvalue-addedtax.Thecompany'sbranchesandsubsidiariesthatmeettheexemptionconditionsareexemptfromVAT.
(2)AccordingtotheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheRelevantPoliciesonDeductionofValueAddedTaxforSpecialEquipmentandTechnicalMaintenanceCostsofValueAddedTaxControlSystem(CS[2012]No.15),iftheVATtaxpayerspurchasespecialequipmentfortheVATtaxcontrolsystem(includingseparateticketmachines)forthefirsttimeafterDecember1,2011(including,thesamebelow),thepurchaseexpensescanbefullydeductedfromtheVATpayable(thedeductionisthetotalamountofpriceandtax)bytheVATinvoiceobtainedfromthepurchaseofspecialequipmentfortheVATtaxcontrolsystem,andthedeductionthatisinsufficientcanbecarriedforwardtothenextperiod.TheVATtaxpayer'stechnicalmaintenancefeepaidafterDecember1,2011(excludingthetechnicalmaintenancefeepaidbeforeNovember30,2011)canbedeductedfromthetaxpayableatfullamountbythetechnicalmaintenanceinvoiceissuedbythetechnicalmaintenanceserviceunit,andthosethatareinsufficienttobedeductedcanbecarriedforwardtothenextperiod.TheCompanyandthequalifiedbranchesandsubsidiariesdeducttheVATpayableatfullamountaccordingtotheregulations.
(3)InaccordancewiththeAnnouncementonFavorableTaxPoliciesforthePreventionandControlofCovid-19(AnnouncementNo.8of2020bytheMinistryofFinanceandtheStateAdministrationofTaxation),thetaxpayers’incomefromofferingpublictransportationservices,dailylifeservices,anddeliveringservicesforresidentswithlivingnecessitiesisexemptfromvalue-addedtax.Thespecificscopeofpublictransportationservicescomplieswiththatstipulatedinthe“RegulationsonIssuesRelatedtothePilotProgramofChangingSalesTaxtoValue-AddedTax”(PublishedandissuedbyF&T[2016]No.36).Thespecificscopeoflifeservicesandexpressdeliveryservicescomplieswiththatstipulatedinthe"SalesServices,IntangibleAssets,andRealEstateNotes"(issuedbyF&T[2016]No.36).TheCompany’squalifiedbranchesandsubsidiariesthatmeettheexemptionconditionsareexemptfromthevalue-addedtax.
(4)AccordingtotheAnnouncementonDeepeningtheReformofRelevantPoliciesAboutValue-AddedTax”(AnnouncementNo.39,2019oftheMinistryofFinance,StateAdministrationofTaxation,GeneralAdministrationofCustoms),fromApril1,2019toDecember31,2021,Taxpayersinvolvedintheproductionandlivingserviceindustryareallowedtodeductdeductibleinputtaxplus10%fromthetaxpayable.TheCompany’squalifiedbranchesandsubsidiarieswilladditionallydeductthevalue-addedtaxpayableaccordingtothispreferentialpolicy.
2.2.Educationsurtax,localeducationsurtax
(1)AccordingtotheNoticeoftheMinistryofFinanceandtheStateTaxationAdministrationonExpandingtheExemptionScopeofGovernmentFunds(F&T[2016]No.12),fromFebruary1,2016,theexemptionscopeof
theeducationsurtax,localeducationsurtaxandwaterconservancyconstructionfundshouldbeexpandedfromthecurrentincludingtaxpayerswhosemonthlysalesorturnoverarenotmorethanRMB30,000(quarterlysalesorturnoverisnotmorethanRMB90,000)toincludingthetaxpayerswhosemonthlysalesorturnoverarenotmorethanRMB100,000(thequarterlysalesorturnoverisnotmorethanRMB300,000).BranchesandsubsidiariesoftheCompanythatmeettheconditionsareexemptedfromeducationsurtaxandlocaleducationsurtax.
(2)AccordingtotheOpinionsoftheGeneralOfficeoftheProvincialPeople'sGovernmentonReducingEnterpriseCostsandStimulatingMarketVigor,HubeiPoliticalAffairsOffice[2016]No.27,fromMay1,2016,thelocaleducationsurtaxratefortheenterpriseswillbereducedfrom2%to1.5%.TheCompany’squalifiedsubsidiariesapplythispolicytocalculateandpaythelocaleducationsurtax.
2.3.Corporateincometax
(1)OnAugust10,2017,OffcnLtd.wasrecognizedasahigh-techenterprisebyBeijingStateTaxationBureau,BeijingLocalTaxationBureau,BeijingFinanceBureau,andBeijingScienceandTechnologyCommission,andobtainedthehigh-techenterprisecertificatenumberedGR20171101302.ThecertificateisvalidfromAugust10,2017toAugust9,2020.OnOctober21,2020,OffcnLtd.wasrecognizedasahigh-techenterprisebytheBeijingStateTaxationBureau,BeijingLocalTaxationBureau,BeijingFinanceBureau,andBeijingScienceandTechnologyCommission,andobtainedthehigh-techenterprisecertificatenumberedGR202011002730.ThecertificateisvalidfromOctober21,2020toOctober20,2023.OffcnLtd.anditssubordinatebranchescalculateandpaycorporateincometaxatataxrateof15%.
(2)AccordingtothedocumentoftheNoticeonImplementingtheInclusiveTaxReductionPolicyforSmallandMicroEnterprises(F&T[2019]No.13),fromJanuary1,2019toDecember31,2021,theportionoftheannualtaxableincomeofthesmallandlow-profitenterprisesthatdoesnotexceedRMB1millionisdeductedfromthetaxableincomeby25%andthecorporateincometaxispaidatarateof20%;forthepartofannualtaxableincomeexceedingRMB1millionbutnotexceedRMB3million,50%ofthetaxableincomeshouldbededucted,andcorporateincometaxshouldbepaidattherateof20%.TheCompany’squalifiedsubsidiariesshallapplythispolicytocalculateandpaycorporateincometax.
(3)AccordingtotheNoticeonClearingtheScopeofSmallandLow-ProfitEnterprisesEnjoyingFavorablePolicyofExemptingfromtheLocalShareofCorporateIncomeTaxStipulatedinthe‘NoticeofthePeople’sGovernmentandtheCommitteeofCPCoftheInnerMongoliaAutonomousRegion(InnerMongoliaF&T[2019]No.227),forsmallandlow-profitenterpriseswithataxableincomeofnomorethan1millionyuan,inaccordancewiththeNoticeonImplementingtheInclusiveTaxReductionandExemptionPolicyforSmallandMicroEnterprises(F&T[2019]No.13),theannualtaxableincomeisreducedby25%.Aftercalculatingthecorporateincometaxatataxrateof20%,thetaxableincomeisexemptedfromthelocalshareofcorporateincometax(i.e.40%)inaccordancewiththeNoticeissuedbythePeople’sGovernmentandtheCommitteeofCPCoftheInnerMongoliaAutonomousRegion([2018]No.23publishedbyInnerMongoliaCommitteeofCPC).TheCompany'squalifiedsubsidiariesshallapplythispolicytocalculateandpaycorporateincometax.
3.OthersNone
SectionVII.NotesToConsolidatedFinancialStatements
1.Monetaryfunds
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Cashonhand | 67,906.76 | 40,288.16 |
| Cashonbank | 5,882,201,630.73 | 2,657,929,052.80 |
| Othermonetaryfunds | 68,125,551.63 | 66,365,660.62 |
| Total | 5,950,395,089.12 | 2,724,335,001.58 |
OtherdescriptionNote:1.Othermonetaryfundsmainlyincludethebalancesonthethird-partypaymentplatformssuchasPOS,TenpayandAlipay.
2.Forthefundswithlimiteduserightsincludingmortgage,pledgeandfreezingattheendoftheperiod,pleaserefertoNoteVII(81)Assetswithrestrictedownershiporuserights.
3.Therewerenocashdepositedabroadattheendoftheperiod.
2.Transactionalfinancialassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Financialassetsmeasuredatfairvaluewithchangesincludedincurrentprofitandloss | 983,205,858.25 | 1,754,396,227.54 |
| Inc： | ||
| Debtinstrumentinvestment | 983,205,858.25 | 1,754,396,227.54 |
| Inc： | ||
| Total | 983,205,858.25 | 1,754,396,227.54 |
Otherdescription:
None
3.Derivativefinancialassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
None
4.Notesreceivable
(1)Classificationofnotesreceivable
Unit:RMB
| Item | Closingbalance | Openingbalance |
Unit:RMB
Category
| Category | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion | Amount | Proportionofprovision | Amount | Proportion | Amount | Proportionofprovision | |||
| Inc: | ||||||||||
| Inc: | ||||||||||
Provisionforbaddebtsbyperitem:
Unit:RMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportionofprovision | Reasonforprovision | |
Provisionforbaddebtsbyportfolio:
Unit:RMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportionofprovision | |
Descriptionofthebasisfordeterminingthecombination:
NoneProvisionforbaddebtsbyportfolio:
Unit:RMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportionofprovision | |
Descriptionofthebasisfordeterminingthecombination:
Ifthebaddebtprovisionofnotesreceivableiscalculatedaccordingtothegeneralmodelofexpectedcreditloss,pleasedisclosetherelevantinformationofbaddebtprovisionwithreferencetothedisclosuremethodofotherreceivables:
□Applicable√NotApplicable
(2)Provision,recoveryandreversalforbaddebtsincurrentperiodProvisionforbaddebtsincurrentperiod
Unit:RMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Provision | recoveryorreversal | Writingoff | Others | |||
Importantprovision,recoveryorreversalforbaddebtsincurrentperiod:
□Applicable√NotApplicable
(3)NotesreceivablepledgedbytheCompanyattheendoftheperiod
Unit:RMB
Item
| Item | Pledgedamountattheendoftheperiod |
(4)NotesreceivablethathavebeenendorsedordiscountedbytheCompanyattheendoftheperiodandhavenotyetmatureduntilthebalancesheetdate
Unit:RMB
| Item | Amountofderecognitionattheendoftheperiod | Amountnotderecognizedattheendoftheperiod |
(5)NotestransferredtoaccountsreceivablebytheCompanyduetothedrawer’sfailuretoperformthecontractattheendoftheperiod
Unit:RMB
| Item | Amounttransferredtoaccountsreceivableattheendoftheperiod |
Otherdescription:
None
(6)Notesreceivableactuallywrittenoffincurrentperiod
Unit:RMB
| Item | Amountofwritingoff |
Writingoffimportantnotesreceivable:
Unit:RMB
| NameoftheCompany | Natureofnotesreceivable | Amountofwritingoff | Reasonsforwritingoff | Procedureofwritingoff | Whetherthefundsaregeneratedbyrelatedpartytransactions |
WrittenoffDescriptionofNotesreceivable:
None
5.Accountsreceivable
(1)Classifieddisclosureofaccountsreceivable
Unit:RMB
| Category | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | |||||
| Amount | Proportion | Amount | Proportionofprovision | Amount | Proportion | Amount | Proportionofprovision | |||
| Inc： | ||||||||||
Accountsreceivablewithprovisionforbaddebtsincombination
| Accountsreceivablewithprovisionforbaddebtsincombination | 22,625,024.65 | 100.00% | 1,131,386.99 | 5.00% | 21,493,637.66 | 2,864,882.20 | 100.00% | 143,244.11 | 5.00% | 2,721,638.09 |
| Inc： | ||||||||||
| Combination2 | 2,618,094.65 | 11.57% | 131,040.49 | 5.01% | 2,487,054.16 | 2,864,882.20 | 100.00% | 143,244.11 | 5.00% | 2,721,638.09 |
| Combination3 | 20,006,930.00 | 88.43% | 1,000,346.50 | 5.00% | 19,006,583.50 | |||||
| Total | 22,625,024.65 | 100.00% | 1,131,386.99 | 21,493,637.66 | 2,864,882.20 | 100.00% | 143,244.11 | 2,721,638.09 |
Unit:RMB
| Name | Closingbalance | |||
| Bookbalance | Baddebtprovision | Proportionofprovision | Reasonsforprovision | |
Provisionforbaddebtsaccordingtocombination:1,131,386.99
Unit:RMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportionofprovision | |
| Combination2 | 2,618,094.65 | 131,040.49 | 5.01% |
| Combination3 | 20,006,930.00 | 1,000,346.50 | 5.00% |
| Total | 22,625,024.65 | 1,131,386.99 | -- |
Descriptionofthebasisfordeterminingthecombination:
NoneProvisionforbaddebtsaccordingtocombination:
Unit:RMB
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportionofprovision | |
Descriptionofthebasisfordeterminingthecombination:
NoneProvisionforbaddebtsaccordingtocombination:
Unit:RMB
Name
| Name | Closingbalance | ||
| Bookbalance | Baddebtprovision | Proportionofprovision | |
Descriptionofthebasisfordeterminingthecombination:
Iftheprovisionforbaddebtsofaccountsreceivableiscalculatedaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
□Applicable√NotApplicableDisclosurebyaging
Unit:RMB
| Aging | Bookbalance |
| Within1year(included) | 22,622,309.65 |
| 1to2years(included) | 2,715.00 |
| Less:provisionforcreditimpairment | 1,131,386.99 |
| Total | 21,493,637.66 |
(2)Provision,withdrawalandreversalforbaddebtsincurrentperiodProvisionforbaddebtsinthecurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Provision | withdrawalorreversal | Writeoff | Others | |||
| Provisionforbaddebtsofaccountsreceivable | 143,244.11 | 988,142.88 | 1,131,386.99 | |||
| Total | 143,244.11 | 988,142.88 | 1,131,386.99 | |||
Importantprovision,recoveryandreversalforbaddebtsincurrentperiod:
Unit:RMB
| NameoftheCompany | Amountrecoveredorreversed | Recoverymethod |
None
(3)Accountsreceivableactuallywrittenoffinthecurrentperiod
Unit:RMB
| Item | Writeoffamount |
Importantaccountsreceivablewrittenoff:
Unit:RMB
NameoftheCompany
| NameoftheCompany | Natureofaccountsreceivable | Amountofwritingoff | Reasonsforwritingoff | Proceduresofwritingoff | Whetherthefundsaregeneratedbyrelatedpartytransactions |
Descriptionoftheaccountreceivable’swrite-off:
None
(4)Accountsreceivableoftopfiveclosingbalancecollectedbydebtors
Unit:RMB
| Nameofcompany | Closingbalanceofaccountsreceivable | Proportioninthetotalclosingbalanceofaccountsreceivable | Closingbalanceofbaddebtreserves |
| YaxiaIndustrialCo.Ltd. | 20,000,000.00 | 88.40% | 1,000,000.00 |
| Customer1 | 971,708.00 | 4.29% | 48,585.40 |
| Customer2 | 378,260.00 | 1.67% | 18,913.00 |
| Customer3 | 361,256.00 | 1.60% | 18,062.80 |
| Customer4 | 314,891.00 | 1.39% | 15,744.55 |
| Total | 22,026,115.00 | 97.35% |
(5)AccountsreceivableterminatedduetotransferoffinancialassetsNone
(6)AmountofassetsandliabilitiesformedbytransferringaccountsreceivableandcontinuingtobeinvolvedNoneOtherdescription:
None
6.Receivablesfinancing
Unit:RMB
| Item | Closingbalance | Openingbalance |
Changesinreceivablefinancingandfairvaluesincurrentperiod
□Applicable√NotapplicableIftheprovisionforimpairmentofreceivablesfinancingiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofimpairmentprovision:
□Applicable√NotapplicableOtherDescription:
7.Prepayments
(1)Disclosurebyaging
Unit:RMB
Aging
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year | 2,204,120.00 | 100.00% | 2,461,009.00 | 100.00% |
| Total | 2,204,120.00 | -- | 2,461,009.00 | -- |
Explanationforwhyprepaymentswithanageofmorethan1yearandanimportantamountarenotsettledintime:
(2)Prepaymentoftopfiveclosingbalancecollectedbyprepaymentobjects
| Nameofcompany | NatureofPayment | Closingbalance | Aging | Proportionintotalamountofprepayment(%) | Provisionforbaddebts |
| NanjingTuniuInternationalTravelAgencyCo.,Ltd | Airticketpayment | 2,204,120.00 | Within1year | 100.00 | |
| Total | 2,204,120.00 | 100.00 |
8.Otherreceivables
Unit：RMB
| Item | Closingbalance | Openingbalance |
| Interestreceivable | 567,341.68 | |
| Otherreceivables | 304,318,966.20 | 254,445,955.28 |
| Total | 304,318,966.20 | 255,013,296.96 |
(1)Interestreceivable
1)Classificationofinterestreceivable
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Fixedtermdeposit | 567,341.68 | |
| Total | 567,341.68 |
2)Importantoverdueinterest
Unit:RMB
Borrower
| Borrower | Closingbalance | Overduetime | Overduereasons | Whetherthereisimpairmentanditsjudgmentbasis |
Otherdescription:
None
3)Provisionforbaddebts
□Applicable√Notapplicable
(2)Dividendsreceivable
1)Classificationofdividendsreceivable
Unit:RMB
| Item(orInvestee) | Closingbalance | Openingbalance |
2)Importantdividendsreceivablewithanaccountageofover1year
Unit:RMB
| Item(orInvestee) | Closingbalance | Accountage | Reasonsfornonrecovery | Whetherthereisimpairmentanditsjudgmentbasis |
3)Provisionforbaddebts
□Applicable√Notapplicable
OtherDescription:
(3)Otherreceivables
1)Classificationofotherreceivablesbynature
Unit:RMB
| Natureofpayment | ClosingBookbalance | OpeningBookbalance |
| Depositsandguarantees | 302,437,947.35 | 252,096,657.97 |
| Reservefund | 120.00 | 214,164.38 |
| deferredexpenseandothers | 1,880,898.85 | 2,135,132.93 |
| Total | 304,318,966.20 | 254,445,955.28 |
2)Provisionforbaddebts
Unit:RMB
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossinthewholeduration(nocreditimpairmenthasoccurred) | Expectedcreditlossinthewholeduration(creditimpairmenthasoccurred) | ||
| BalanceatJanuary1,2020 | 194,490.90 | 510,300.00 | 704,790.90 |
BalanceatJanuary1,2020incurrentperiod
| BalanceatJanuary1,2020incurrentperiod | —— | —— | —— | —— |
| Provisioninthecurrentperiod | 182,909.95 | 182,909.95 | ||
| BalanceatDecember31,2020 | 377,400.85 | 510,300.00 | 887,700.85 |
Changesinbookbalanceoflossreserveswithsignificantchangesincurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Bookbalance |
| Within1year(inclusive) | 267,173,451.40 |
| 1to2years | 12,454,633.59 |
| 2to3years | 6,657,947.72 |
| 3to4years | 1,787,284.88 |
| 4to5years | 9,138,241.31 |
| Morethan5years | 7,995,108.15 |
| Less:provisionforcreditimpairment | 887,700.85 |
| Total | 304,318,966.20 |
3)Provision,withdrawalandreversalforbaddebtsincurrentperiodProvisionforbaddebtsincurrentperiod:
Unit:RMB
| Category | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Provision | Withdrawalorreversal | Write-off | Others | |||
| Provisionforbaddebtsofotherreceivables | 704,790.90 | 182,909.95 | 887,700.85 | |||
| Total | 704,790.90 | 182,909.95 | 887,700.85 | |||
NoneTheimportantamountofbaddebtreservestransferredbackorrecoveredinthecurrentperiod:
Unit:RMB
| Nameofcompany | Amountofwithdrawalorreversal | Recoverymethod |
None
4)Otherreceivablesactuallywrittenoffinthecurrentperiod
Unit:RMB
Item
| Item | Write-offamount |
Write-offofotherimportantreceivables:
Unit:RMB
| Nameofcompany | Natureofotherreceivables | Write-offamount | Write-offreasons | Writeoffprocedures | Whetherthefundsaregeneratedbyrelatedpartytransactions |
Descriptionofotherreceivables’write-off:
None
5)Otherreceivablesoftopfiveclosingbalancecollectedbydebtors
Unit:RMB
| Nameofcompany | Nature | Closingbalance | Accountage | Proportionintotalclosingbalanceofotherreceivables(%) | Closingbalanceofbaddebtprovision |
| LiaoningHanhuiIndustrialCo.,Ltd. | Depositsandguarantees | 200,000,000.00 | Within1year | 65.72% | |
| HebeiZehongTechnologyCo.,Ltd. | Depositsandguarantees | 25,000,000.00 | Within1year | 8.22% | |
| BeijingWushuangTechnologyCo.,Ltd | Depositsandguarantees | 15,000,000.00 | Within1year | 4.93% | |
| RizhaoEconomicandTechnologicalDevelopmentZoneFinanceBureau | Depositsandguarantees | 10,000,000.00 | Within1year | 3.29% | |
| ShenyangLijingMingzhuHotelManagementCo.,Ltd | Depositsandguarantees | 5,675,200.00 | 4to5years | 1.86% | |
| Total | -- | 255,675,200.00 | -- | 84.02% |
6)Receivablesinvolvinggovernmentsubsidies
Unit:RMB
| Nameofcompany | Nameofgovernmentsubsidyproject | Closingbalance | Accountageattheendoftheperiod | Estimatedtime,amountandbasisofcollection |
None
7)OtherreceivablesterminatedduetotransferoffinancialassetsNone
8)AmountofassetsandliabilitiesformedbytransferringotherreceivablesandcontinuingtobeinvolvedNoneOtherdescription:
None
9.InventoriesWhethertheCompanyneedstocomplywiththedisclosurerequirementsoftherealestateindustryNo
(1)Inventoryclassification
Unit:RMB
Item
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforinventorydepreciationorcontractperformancecostimpairmentprovision | Bookvalue | Bookbalance | Provisionforinventorydepreciationorcontractperformancecostimpairmentprovision | Bookvalue | |
(2)Reservesforinventorydepreciationandimpairmentofcontractperformancecosts
Unit:RMB
| Item | Openingbalance | Increaseincurrentperiod | Decreaseincurrentperiod | Closingbalance | ||
| Provision | Others | Reversalorwriteoff | Others | |||
None
(3)DescriptionofcapitalizationamountofborrowingcostsincludedinclosingbalanceofinventoryNone
(4)DescriptionofamortizationamountofcontractperformancecostincurrentperiodNone
10.Contractassets
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
Theamountandreasonsforsignificantchangesinthebookvalueofcontractassetsinthecurrentperiod:
Unit:RMB
Item
| Item | Changeintheamount | Reasonsforchanges |
Iftheprovisionforbaddebtofcontractassetsiswithdrawnaccordingtothegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
□Applicable√NotapplicableProvisionforimpairmentofcontractassetsinthecurrentperiod
Unit:RMB
| Item | Provisioninthecurrentperiod | Reversalincurrentperiod | Write-offincurrentperiod | Reasons |
Otherdescription:
11.Assetsheldforsale
Unit:RMB
| Item | Bookbalanceattheendoftheperiod | Provisionforimpairment | Bookvalueattheendoftheperiod | Fairvalue | Estimateddisposalcosts | Estimateddisposaltime |
Otherdescription:
None
12.Non-currentassetsduewithinoneyear
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Debtinvestmentduewithinoneyear | 1,985,873,462.75 | |
| Total | 1,985,873,462.75 |
Importantdebtinvestment/Otherdebtinvestment
Unit:RMB
| Credititem | Closingbalance | Openingbalance | ||||||
| Facevalue | Couponrate | Realinterestrate | Duedate | Facevalue | Couponrate | Realinterestrate | Duedate | |
| BeijingSidaokouSub-branchofHuaxiaBankCo.,Ltd. | 500,000,000.00 | 4.12% | 4.12% | 4April2021 | ||||
| QianmenSub-branch,ChinaConstructionBankCorporation | 500,000,000.00 | 3.85% | 3.85% | 12April2021 | ||||
BeijingShangdisub-branchofChinaMinshengBankCo.,Ltd
| BeijingShangdisub-branchofChinaMinshengBankCo.,Ltd | 300,000,000.00 | 4.30% | 4.30% | 5June2021 | ||||
| BeijingShangdisub-branchofChinaMinshengBankCo.,Ltd | 200,000,000.00 | 4.30% | 4.30% | 13June2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 100,000,000.00 | 4.20% | 4.20% | 6June2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 100,000,000.00 | 4.20% | 4.20% | 2July2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 50,000,000.00 | 4.20% | 4.20% | 26April2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 50,000,000.00 | 4.20% | 4.20% | 31May2021 | ||||
| ChinaMerchantsBankCo.,Ltd.BeijingFangzhuangsub-branch | 20,000,000.00 | 4.18% | 4.18% | 18December2021 | ||||
| Total | 1,820,000,000.00 | —— | —— | —— | —— | —— | —— |
Otherdescription:
None
13.Othercurrentassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Prepaidexpenses | 133,347,305.31 | 97,166,903.13 |
| Pendingpayment | 41,832,345.30 | |
| Inputtaxtobededucted/certified | 169,697.03 | |
| Total | 175,179,650.61 | 97,336,600.16 |
Otherdescription:
None
14.Debtinvestment
Unit:RMB
| Item | Closingbalance | Openingbalance |
Bookbalance
| Bookbalance | Provisionforimpairment | Bookvalue | Bookbalance | Provisionforimpairment | Bookvalue | |
| Fixed-termdeposit | 1,923,598,909.09 | 1,923,598,909.09 | ||||
| Total | 1,923,598,909.09 | 1,923,598,909.09 |
Importantdebtinvestment
Unit:RMB
| Credititem | Closingbalance | Openingbalance | ||||||
| Facevalue | Couponrate | Realinterestrate | Duedate | Facevalue | Couponrate | Realinterestrate | Duedate | |
| BeijingSidaokouSub-branchofHuaxiaBankCo.,Ltd. | 500,000,000.00 | 4.12% | 4.12% | April5th,2021 | ||||
| QianmenBranchofChinaConstructionBankCo.,Ltd. | 500,000,000.00 | 3.85% | 3.85% | April13th,2021 | ||||
| BeijingShangdiBranchofChinaMinshengBankCo.,Ltd. | 500,000,000.00 | 4.30% | 4.30% | June6th,2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 50,000,000.00 | 4.20% | 4.20% | May15th,2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 150,000,000.00 | 4.20% | 4.20% | June1st,2021 | ||||
| MeihekouRuralCreditCooperative,CooperativeUnionSalesDepartment | 100,000,000.00 | 4.20% | 4.20% | July13th,2021 | ||||
| BeijingFangzhuangBranchofChinaMerchantsBankCo.,Ltd. | 20,000,000.00 | 4.18% | 4.18% | Dec.18th,2021 | ||||
| Total | —— | —— | —— | 1,820,000,000.00 | —— | —— | —— | |
Provisionforimpairment
Unit:RMB
Provisionforbaddebts
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossinthewholeduration(nocreditimpairmenthasoccurred) | Expectedcreditlossinthewholeduration(creditimpairmenthasoccurred) | ||
| BalanceatJan.1st,2020incurrentperiod | —— | —— | —— | —— |
ChangesinBookbalanceoflossreserveswithsignificantchangesincurrentperiod
□Applicable√NotapplicableOtherdescription:
15.Otherdebtinvestments
Unit:RMB
| Item | Openingbalance | Accruedinterest | Changesinfairvalueinthecurrentperiod | Closingbalance | Cost | Accumulatedchangesinfairvalue | Accumulatedlossreservesrecognizedinothercomprehensiveincome | Remarks |
Otherimportantdebtinvestment
Unit:RMB
| Othercredititem | Closingbalance | Openingbalance | ||||||
| Facevalue | Couponrate | Realinterestrate | Duedate | Facevalue | Couponrate | Realinterestrate | Duedate | |
Provisionforimpairment
Unit:RMB
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossinthewholeduration(nocreditimpairmenthasoccurred) | Expectedcreditlossinthewholeduration(creditimpairmenthasoccurred) | ||
| BalanceatJan.1st,2020incurrentperiod | —— | —— | —— | —— |
ChangesinBookbalanceoflossreserveswithsignificantchangesincurrentperiod
□Applicable√NotapplicableOtherdescription:
None
16.Long-termreceivables
(1)Long-termreceivables
Unit:RMB
Category
| Category | Closingbalance | Openingbalance | Rangeofdiscountrate | ||||
| Bookbalance | Baddebtprovision | Bookvalue | Bookbalance | Baddebtprovision | Bookvalue | ||
Impairmentofprovisionsforbaddebts
Unit:RMB
| Provisionforbaddebts | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossinthewholeduration(nocreditimpairmenthasoccurred) | Expectedcreditlossinthewholeduration(creditimpairmenthasoccurred) | ||
| BalanceatJan.1st,2020incurrentperiod | —— | —— | —— | —— |
ChangesinBookbalanceoflossreserveswithsignificantchangesincurrentperiod
□Applicable√Notapplicable
(2)Longtermreceivablesterminatedduetotransferoffinancialassets
(3)Amountofassetsandliabilitiesformedbytransferringlong-termreceivablesandcontinuingtobeinvolvedNoneOtherdescription:
None
17.Long-termequityinvestment
Unit:RMB
| Investee | Openingbalance(bookvalue) | Increaseanddecreaseinthecurrentperiod | Closingbalance(bookvalue) | Closingbalanceofprovisionforimpairment | |||||||
| Additionalinvestment | Decreasedinvestment | Investmentgainsandlossesrecognizedundertheequitymethod | Othercomprehensiveincomeadjustments | Changesinotherinterests | Declarationofpaymentofcashdividendsorprofits | provisionforimpairment | Others | ||||
| 1.Jointventure | |||||||||||
| 2.Associatedenterprise | |||||||||||
Otherdescription:
None
18.Investmentinotherequityinstruments
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| ShanghaiZuihuibaoNetworkTechnologyCo.,Ltd | 126,000,000.00 | 136,000,000.00 |
| AnhuiNingguoRuralCommercialBankCo.,Ltd | 26,800,000.00 | 26,800,000.00 |
| Total | 152,800,000.00 | 162,800,000.00 |
Disclosureofnontradableequityinstrumentinvestmentinthecurrentperiod
Unit:RMB
| Item | Recognizeddividendincome | Accumulatedprofit | Accumulatedlosses | Amountofothercomprehensiveincometransferredintoretainedearnings | Reasonsforchangesincludedinothercomprehensiveincomemeasuredatfairvalue | Reasonsfortransferringothercomprehensiveincomeintoretainedearnings |
| ShanghaiZuihuibaoNetworkTechnologyCo.,Ltd | 40,000,000.00 | Planforlongtermholding | ||||
| AnhuiNingguoRuralCommercialBankCo.,Ltd | 249,600.00 | Planforlongtermholding | ||||
| Total | 249,600.00 | 40,000,000.00 |
Otherdescription:
None
19.Othernon-currentfinancialassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| BeijingJinwuVentureCapitalCenter(limitedpartnership) | 38,050,000.00 | 38,050,000.00 |
| Financialproducts | 170,400,315.01 | 100,116,559.96 |
| Total | 208,450,315.01 | 138,166,559.96 |
Otherdescription:
None
20.Investmentproperties
(1)Investmentpropertiesadoptingcostmeasurementmodel
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Housesandbuildings | Rightsoflanduse | Constructioninprogress | Total |
| I.Originalbookvalue | ||||
| 1.Openingbalance | 377,111,222.22 | 473,825,849.87 | 850,937,072.09 | |
| 2.Increaseincurrentperiod | ||||
| （1）Outsourcing | ||||
| （2）Amountstransferredinfrominventory/fixedassets/constructioninprogress | ||||
| （3）Increaseinbusinesscombination |
| 3.Decreaseincurrentperiod |
| （1）Disposal |
| （2）Otheramountstransferredout |
| 4.Closingbalance | 377,111,222.22 | 473,825,849.87 | 850,937,072.09 | |
| II.Accumulateddepreciationandamortization | ||||
| 1.Openingbalance | 41,891,136.83 | 60,373,277.81 | 102,264,414.64 | |
| 2.Increaseincurrentperiod | 9,000,262.96 | 11,460,274.75 | 20,460,537.71 | |
| (1)Provisionoramortization | 9,000,262.96 | 11,460,274.75 | 20,460,537.71 |
（1）Disposal
| （1）Disposal |
| （2）Otheramountstransferredout |
| 4.Closingbalance | 50,891,399.79 | 71,833,552.56 | 122,724,952.35 | |
| III.Provisionforimpairment | ||||
| 1.Openingbalance | 6,556,268.55 | 53,641,335.37 | 60,197,603.92 | |
| 2.Increaseincurrentperiod | ||||
| (1)Provision |
| 3.Decreaseincurrentperiod |
| （1）Disposal |
| （2）Otheramountstransferredout |
| 4.Closingbalance | 6,556,268.55 | 53,641,335.37 | 60,197,603.92 | |
| IV.Bookvalue | ||||
| 1.Bookvalueattheendoftheperiod | 319,663,553.88 | 348,350,961.94 | 668,014,515.82 | |
| 2.Bookvalueatthebeginningoftheperiod | 328,663,816.84 | 359,811,236.69 | 688,475,053.53 |
(2)Investmentpropertiesadoptingfairvaluemeasurementmode
□Applicable√Notapplicable
(3)Investmentpropertieswithoutpropertyrightcertificate
Unit:RMB
| Item | Bookvalue | Reasonsforwithoutpropertyrightcertificate |
| Housesandbuildings | 237,219,599.15 | Inprocess |
| Rightsoflanduse | 5,304,865.65 | Inprocess |
Otherdescription:
None
21.FixedAssets
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Fixedassets | 1,612,792,592.67 | 672,429,601.44 |
| Total | 1,612,792,592.67 | 672,429,601.44 |
(1)Fixedassets
Unit:RMB
| Item | Buildings | Decorationoffixedassets | Transports | Electronicequipment | Officeequipment | Total |
| I.Originalbookvalue | ||||||
| 1.Openingbalance | 613,771,922.00 | 39,832,104.02 | 74,816,972.09 | 184,870,489.12 | 12,025,551.21 | 925,317,038.44 |
| 2.Increaseinthecurrentperiod | 940,825,361.39 | 24,876,320.00 | 5,736,784.33 | 36,847,806.35 | 16,116.00 | 1,008,302,388.07 |
| (1)Purchase | 383,585,587.10 | 24,876,320.00 | 5,736,784.33 | 29,049,411.35 | 16,116.00 | 443,264,218.78 |
| (2)Amountstransferredinfromconstructioninprogress | 557,239,774.29 | 7,798,395.00 | 565,038,169.29 | |||
| (3)Increasefrombusinesscombination | ||||||
| 3.Decreaseinthecurrentperiod | 689,300.00 | 689,300.00 | ||||
| (1)Disposalorobsolescence | 689,300.00 | 689,300.00 | ||||
| 4.Closingbalance | 1,554,597,283.39 | 64,708,424.02 | 79,864,456.42 | 221,718,295.47 | 12,041,667.21 | 1,932,930,126.51 |
| II.Accumulateddepreciation | ||||||
| 1.Openingbalance | 70,706,861.28 | 13,940,973.90 | 62,359,914.70 | 95,736,942.74 | 10,063,760.04 | 252,808,452.66 |
2.Increaseinthecurrentperiod
| 2.Increaseinthecurrentperiod | 24,644,073.90 | 9,836,387.16 | 5,332,699.79 | 27,482,561.03 | 609,209.96 | 67,904,931.84 |
| (1)Accrual | 24,644,073.90 | 9,836,387.16 | 5,332,699.79 | 27,482,561.03 | 609,209.96 | 67,904,931.84 |
| 3.Decreaseinthecurrentperiod | 654,835.00 | 654,835.00 | ||||
| (1)Disposalorobsolescence | 654,835.00 | 654,835.00 |
| 4.Closingbalance | 95,350,935.18 | 23,777,361.06 | 67,037,779.49 | 123,219,503.77 | 10,672,970.00 | 320,058,549.50 |
| III.Impairmentprovision | ||||||
| 1.Openingbalance | 4,309.80 | 74,674.54 | 78,984.34 | |||
| 2.Increaseinthecurrentperiod | ||||||
| (1)Accrual | ||||||
| 3.Decreaseinthecurrentperiod | ||||||
| (1)Disposalorobsolescence | ||||||
| 4.Closingbalance | 4,309.80 | 74,674.54 | 78,984.34 | |||
| IV.Bookvalue | ||||||
| 1.Closingbookvalue | 1,459,246,348.21 | 40,931,062.96 | 12,826,676.93 | 98,494,481.90 | 1,294,022.67 | 1,612,792,592.67 |
| 2.Openingbookvalue | 543,065,060.72 | 25,891,130.12 | 12,457,057.39 | 89,129,236.58 | 1,887,116.63 | 672,429,601.44 |
(2)Temporarilyidlefixedassets
Unit:RMB
| Item | Originalbookvalue | Accumulateddepreciation | Impairmentprovision | Bookvalue | Note |
(3)Fixedassetsrentedthroughfinancinglease
Unit:RMB
Item
| Item | Originalbookvalue | Accumulateddepreciation | Impairmentprovision | Bookvalue |
(4)Fixedassetsleasedoutthroughoperatinglease
Unit:RMB
| Item | Closingbookvalue |
(5)Fixedassetswithoutpropertyrightscertificate
Unit:RMB
| Item | Bookvalue | Reasonsforwithoutthepropertyrightscertificate |
| Buildings | 757,123,540.64 | Inprogress |
Otherdescription:
None
(6)Liquidationoffixedassets
Unit:RMB
| Item | ClosingBalance | OpeningBalance |
Otherdescription:
None
22.Constructioninprogress
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 214,248,125.04 | 653,580,160.32 |
| Total | 214,248,125.04 | 653,580,160.32 |
(1)Constructioninprogress
Unit:RMB
Item
| Item | ClosingBalance | OpeningBalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| OffcnFushunBuilding | 140,287,691.52 | 140,287,691.52 | 113,020,225.37 | 113,020,225.37 | ||
| YaxiaBozhouFortunePlaza | 62,847,721.95 | 62,847,721.95 | 62,847,721.95 | 62,847,721.95 | ||
| GAC-ToyotaBozhou4SStores | 9,721,381.62 | 9,721,381.62 | 9,721,381.62 | 9,721,381.62 | ||
| HuangshanFudiStores | 1,391,329.95 | 1,391,329.95 | 1,368,999.85 | 1,368,999.85 | ||
| ZhongchengRealEstateProject | 275,905,485.09 | 275,905,485.09 | ||||
| OffcnShandongBuilding | 182,917,951.44 | 182,917,951.44 | ||||
| Online/offlinecooperativeteachingfacilities | 7,798,395.00 | 7,798,395.00 | ||||
| Total | 214,248,125.04 | 214,248,125.04 | 653,580,160.32 | 653,580,160.32 | ||
(2)Changesofsignificantprojectsinconstructioninthecurrentperiod
Unit:RMB
| Item | Budget | Openingbalance | Increaseintheperiod | Fixedassetsamountstransferredintoincurrentperiod | Otherdecreaseintheperiod | Closingbalance | Proportionofaccumulativeprojectinvestmentinbudget(%) | Projectprogress(%) | Accumulativeamountofinterestcapitalization | Including:capitalizationamountofcurrentinterest | Currentinterestcapitalizationrate(%) | Capitalsources |
| ZhongchengRealEstateProject | 450,000,000.00 | 275,905,485.09 | 98,158,055.55 | 374,063,540.64 | 83.13 | 100.00 | Others | |||||
| OffcnShandon | 210,000,00 | 182,917,95 | 258,282.21 | 183,176,23 | 87.23 | 100.0 | Others |
gBuilding
| gBuilding | 0.00 | 1.44 | 3.65 | 0 | ||||||
| OffcnFushunBuilding | 330,000,000.00 | 113,020,225.37 | 27,267,466.15 | 140,287,691.52 | 42.51 | 42.51 | Others | |||
| Total | 990,000,000.00 | 571,843,661.90 | 125,683,803.91 | 557,239,774.29 | 140,287,691.52 | -- | -- | -- |
(3)Accrualofimpairmentprovisionforconstructioninprogressintheperiod
Unit:RMB
| Item | Accrualamount | Reason |
Otherdescription:
None
(4)Engineeringmaterials
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
Otherdescription:
23.Productivebiologicalassets
(1)Productivebiologicalassetsmeasuredatcost
□Applicable√Notapplicable
(2)Productivebiologicalassetsmeasuredbyfairvalue
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Right-of-useassets
Unit:RMB
| Item | Total |
Otherdescription:
None
26.Intangibleassets
(1)Intangibleassets
Unit:RMB
Item
| Item | Land-useright | Patentright | Non-patenttechnology | Softwareuseright | Trademarkright | Total |
| I.Originalbookvalue | ||||||
| 1.Openingbalance | 205,199,737.07 | 7,760,286.02 | 7,140,521.53 | 220,100,544.62 | ||
| 2.Increaseintheperiod | 241,525,956.86 | 14,000.00 | 241,539,956.86 | |||
| (1)Purchase | 241,525,956.86 | 14,000.00 | 241,539,956.86 | |||
| (2)InternalR&D | ||||||
| (3)Increasefrombusinesscombination |
| 3.Decreaseintheperiod |
| (1)Disposal |
| 4.Closingbalance | 446,725,693.93 | 7,774,286.02 | 7,140,521.53 | 461,640,501.48 | |
| II.Accumulatedamortization | |||||
| 1.Openingbalance | 17,787,580.14 | 3,076,750.06 | 1,725,876.02 | 22,590,206.22 | |
| 2.Increaseintheperiod | 11,240,552.59 | 733,303.77 | 720,872.15 | 12,694,728.51 | |
| (1)Accrual | 11,240,552.59 | 733,303.77 | 720,872.15 | 12,694,728.51 |
| 3.Decreaseintheperiod |
| (1)Disposal |
| 4.Closingbalance | 29,028,132.73 | 3,810,053.83 | 2,446,748.17 | 35,284,934.73 | |
| III.Impairmentprovision | |||||
| 1.Openingbalance | 3,111.00 | 3,111.00 | |||
| 2.Increaseintheperiod | |||||
| (1)Accrual |
(1)Disposal
(1)Disposal
4.Closingbalance
| 4.Closingbalance | 3,111.00 | 3,111.00 | |||
| IV.Bookvalue | |||||
| 1.Closingbookvalue | 417,697,561.20 | 3,961,121.19 | 4,693,773.36 | 426,352,455.75 | |
| 2.Openingbookvalue | 187,412,156.93 | 4,680,424.96 | 5,414,645.51 | 197,507,227.40 |
Theproportionofintangibleassetsformedthroughinternalresearchanddevelopmentatperiod-endinthebalanceofintangibleassets:0.00%
(2)Land-userightswithoutpropertyrightscertificate
Unit:RMB
| Item | Bookvalue | Reasonsforwihtoutpropertyrightscertificate |
| Land-userights | 235,577,041.67 | inprocess |
Otherdescription:
None
27.Developmentexpenditure
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance | ||||
| Internaldevelopmentexpenditure | Others | Recognizedasintangibleassets | Amountstransferredintocurrentprofitandloss | |||||
Otherdescription:
None
28.Goodwill
(1)Originalbookvalueofgoodwill
Unit:RMB
| Nameoftheinvesteeanditemwithgoodwill | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | ||
| Formedbybusiness | Disposal | |||||
combination
| combination | ||||
| ShandongKunzhongRealEstateCo.,Ltd. | 39,378,573.51 | 39,378,573.51 | ||
| NanjingHuiyueHotelManagementCo.,Ltd. | 60,489,146.87 | 60,489,146.87 | ||
| Total | 99,867,720.38 | 99,867,720.38 |
(2)Goodwillimpairmentprovision
Unit:RMB
| Nameoftheinvesteeanditemwithgoodwill | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | ||
| Provision | Disposal | |||||
Relevantinformationofassetgrouporcombinationofassetgroupwheregoodwillislocated
TheCompanyacquiredShandongKunzhongRealEstateCo.,Ltd.in2016andgeneratedgoodwillofRMB39,378,573.51.Thegoodwillwasdividedintocorrespondingassetgroups.Thecategoryofgoodwillrelatedassetsconsistsoflong-termassets,goodwillanddeferredincometaxliabilities.Therecoverableamountoftheassetgroupisdeterminedbasedonthenetamountofthefairvalueminusthedisposalexpenses.TheCompany’sacquisitionofNanjingHuiyueHotelManagementCo.,Ltd.in2018generatedgoodwillofRMB60,489,146.87,whichwasdividedintocorrespondingassetgroups.Thecategoryofgoodwillrelatedassetsconsistsoflong-termassets,goodwillanddeferredincometaxliabilities.Therecoverableamountoftheassetgroupisdeterminedbasedonthenetamountofthefairvalueminusthedisposalexpenses.Theconfirmationmethodofgoodwillimpairmenttestingprocess,keyparameters(suchasgrowthrateofthepresentvalueofprojectedfuturecashflowinforecastperiod,growthrateinstableperiod,rateofprofit,discountrateandtheforecastperiod)andgoodwillimpairmentloss:
TherecoverableamountoftheCompany'sassetgroupincludinggoodwillisestimatedbythenetamountofthefairvalueoftheassetgroupinwhichthegoodwillislocatedlessthedisposalcosts.Asfortheassetswhosefairvaluecanrefertothatinthemarket,themarketcomparisonmethodisusedtoestimatethefairvalueofthebasedateoftheassetstobeestimated,takingintoaccountthedifferencesintime,transaction,regionalandindividualfactors;Forotherassets,combinedwiththeactualsituationofassets,thecostmethodisadoptedtodeterminethefairvalueoftheassetstobeappraisedonthebasedate.TheCompanyentrustedanassetassessmentcompanytoconductanimpairmenttestongoodwill.Aftertesting,nogoodwillwasfoundtobeimpaired,andnoprovisionforimpairmentwasmade.
ImpactofimpairmenttestsongoodwillNoneOtherdescription:
None
29.Long-termprepaidexpense
Unit:RMB
Item
| Item | Openingbalance | Increaseintheperiod | Amortizationintheperiod | Otherdecrease | Closingbalance |
| Decorationexpenditure | 186,953,773.64 | 275,794,736.00 | 62,457,211.00 | 400,291,298.64 | |
| Marketingfee | 4,877,521.71 | 250,876.00 | 480,936.25 | 4,647,461.46 | |
| Rentandpropertyfees | 47,239,952.20 | 43,982,906.50 | 62,223,389.49 | 28,999,469.21 | |
| Others | 1,494,714.47 | 5,944,625.20 | 422,191.05 | 7,017,148.62 | |
| Total | 240,565,962.02 | 325,973,143.70 | 125,583,727.79 | 440,955,377.93 |
Otherdescription
30.Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredincometaxassetswithoutoffsetting
Unit:RMB
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifference | Deferredincometaxassets | Deductibletemporarydifference | Deferredincometaxassets | |
| Provisionforimpairmentofassets | 1,879,621.51 | 412,811.14 | 930,130.35 | 177,903.51 |
| Deductiblelosses | 84,774,502.49 | 21,193,625.63 | 43,219,714.47 | 10,804,928.62 |
| Accruedandunpaidemployeecompensation | 70,000,000.00 | 10,500,000.00 | ||
| Total | 86,654,124.00 | 21,606,436.77 | 114,149,844.82 | 21,482,832.13 |
(2)Deferredincometaxliabilitieswithoutoffsetting
Unit:RMB
Item
| Item | Closingbalance | Openingbalance | ||
| Taxabletemporarydifference | Deferredtaxliabilities | Taxabletemporarydifference | Deferredtaxliabilities | |
| Appreciationofassetvaluationofbusinesscombinationunderuncommoncontrol | 365,183,429.96 | 91,295,857.49 | 375,304,896.84 | 93,826,224.21 |
| Changesinfairvalueofotherequityinstrumentinvestments | 40,000,000.00 | 10,000,000.00 | 50,000,000.00 | 12,500,000.00 |
| Fixedassetaccountingdepreciationlessthantaxlaw | 2,298,553.47 | 344,783.02 | ||
| Changesinfairvalueoftransactionalfinancialassets | 22,697,173.26 | 3,381,587.10 | 1,712,787.50 | 261,265.80 |
| Total | 427,880,603.22 | 104,677,444.59 | 429,316,237.81 | 106,932,273.03 |
(3)Deferredincometaxassetsorliabilitiespresentedinnetamountafteroffsetting
Unit:RMB
| Item | Mutualoffsetamountattheendofthereportingperiod | Closingbalanceofdeferredtaxassetsorliabilitiesafteroffset | Mutualoffsetamountatthebeginningofthereportingperiod | Openingbalanceofdeferredtaxassetsorliabilitiesafteroffset |
| Deferredtaxassets | 21,606,436.77 | 21,482,832.13 | ||
| Deferredtaxliabilities | 104,677,444.59 | 106,932,273.03 |
(4)Detailsofunrecognizeddeferredtaxassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Deductibletemporarydifference | 221,561.67 | |
| Deductiblelosses | 55,733,407.18 | 32,969,109.71 |
| Total | 55,954,968.85 | 32,969,109.71 |
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswillexpireinthefollowingyears
Unit:RMB
Year
| Year | Closingbalance | Openingbalance | Note |
| 2020 | |||
| 2021 | 10,989,030.45 | 11,383,708.37 | |
| 2022 | 119,383.82 | 119,383.82 | |
| 2023 | 11,480,964.23 | 11,480,964.23 | |
| 2024 | 9,975,369.01 | 9,985,053.29 | |
| 2025 | 23,168,659.67 | ||
| Total | 55,733,407.18 | 32,969,109.71 | -- |
31.Othernon-currentassets
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Prepaidlandpayments | 601,000,000.00 | 601,000,000.00 | 218,449,062.00 | 218,449,062.00 | ||
| Investmentfunds | 500,800,000.00 | 500,800,000.00 | 300,000.00 | 300,000.00 | ||
| Prepaidconstructionpayments | 35,584,390.50 | 35,584,390.50 | ||||
| Inputtaxtobededucted/tobecertified | 13,707,312.81 | 13,707,312.81 | 13,658,316.34 | 13,658,316.34 | ||
| Prepaiddecoration | 93,560,250.00 | 93,560,250.00 | ||||
| Total | 1,151,091,703.31 | 1,151,091,703.31 | 325,967,628.34 | 325,967,628.34 | ||
Otherdescription:
32.Short-termborrowings
(1)Short-termborrowingsclassification
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Pledgeborrowings | 479,768,050.00 | 1,397,000,000.00 |
| Guaranteeborrowings | 360,000,000.00 | |
| Creditborrowings | 3,496,251,279.22 | 1,110,000,000.00 |
| Total | 3,976,019,329.22 | 2,867,000,000.00 |
Descriptionoftheclassificationofshort-termborrowings:
(2)Overdueoutstandingshort-termloansThetotalamountofoverdueoutstandingshort-termloansattheendoftheperiodisRMB0.00,andtheimportantoverdueoutstandingshort-termloansareasfollows:
Unit:RMB
| Borrower | Closingbalance | Borrowingrates | Overduetime | Overdueinterestrates |
Otherdescription:
33.Transactionalfinancialliability
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Inc: | ||
| Inc: |
Otherdescription:
34.Derivativefinancialliability
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
35.Notespayable
Unit:RMB
| Category | Closingbalance | Openingbalance |
36.Accountspayable
(1)Listofaccountspayable
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Fixedassets | 83,112,000.00 | 52,000.00 |
| Projectpayments | 53,138,461.93 | 13,062,592.12 |
| Startclassfees | 47,005,391.45 | 188,285,128.46 |
| Marketpromotionfees | 12,918,597.97 | 26,766,715.00 |
| Decorationcosts | 11,312,336.01 | 7,863,306.78 |
| Rentandpropertyfees | 4,337,615.50 | 452,248.50 |
| Total | 211,824,402.86 | 236,481,990.86 |
(2)Majoraccountspayableagedoveroneyear
Unit:RMB
| Item | Closingbalance | Reasonsforoutstandingorcarry-over |
Otherdescription:
37.Receiptsinadvance
(1)Listofreceiptsinadvance
Unit:RMB
| Item | Closingbalance | Openingbalance |
(2)Majorreceiptsinadvanceagedoveroneyear
Unit:RMB
| Item | Closingbalance | Reasonsforoutstandingorcarry-over |
38.Contractliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Trainingfeesreceivedinadvance | 4,925,351,396.44 | 2,556,903,384.51 |
| Others | 76,912.89 | 646,327.99 |
| Total | 4,925,428,309.33 | 2,557,549,712.50 |
Amountandreasonsformajorchangesinbookvalueinthereportingperiod
Unit:RMB
Item
| Item | Changesinamount | Reasonsforchanges |
39.Employeebenefitspayable
(1)Listofemployeebenefitspayable
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance |
| I.Short-termcompensation | 404,338,198.91 | 5,604,713,040.16 | 5,372,223,593.28 | 636,827,645.79 |
| II.Post-employmentwelfare-definedcontributionplan | 7,137,437.12 | 98,853,622.72 | 105,370,271.64 | 620,788.20 |
| III.Dismissionwelfare | 908,528.15 | 908,528.15 | ||
| Total | 411,475,636.03 | 5,704,475,191.03 | 5,478,502,393.07 | 637,448,433.99 |
(2)Listofshort-termsalary
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance |
| 1.Wagesorsalaries,bonuses,allowancesandsubsidies | 393,403,204.25 | 5,251,871,663.94 | 5,016,445,193.57 | 628,829,674.62 |
| 2.Staffwelfare | 11,509,489.48 | 11,509,489.48 | ||
| 3.Socialsecuritycontributions | 4,964,980.66 | 183,658,915.98 | 181,673,056.47 | 6,950,840.17 |
| Inc:Medicalinsurance | 4,433,301.20 | 177,350,983.20 | 174,850,147.69 | 6,934,136.71 |
| Employmentinjuryinsurance | 165,403.54 | 1,826,540.25 | 1,988,368.55 | 3,575.24 |
| Maternityinsurance | 366,275.92 | 4,481,392.53 | 4,834,540.23 | 13,128.22 |
| 4.Housingfund | 5,970,014.00 | 157,505,989.48 | 162,434,422.48 | 1,041,581.00 |
| 5.Laborunionexpenditureandemployeeeducationexpenditure | 166,981.28 | 161,431.28 | 5,550.00 |
Total
| Total | 404,338,198.91 | 5,604,713,040.16 | 5,372,223,593.28 | 636,827,645.79 |
(3)Listofpost-employmentwelfare-definedcontributionplan
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance |
| 1.Basicpensioninsurance | 6,806,195.23 | 95,089,531.09 | 101,295,277.24 | 600,449.08 |
| 2.Unemploymentinsurance | 331,241.89 | 3,764,091.63 | 4,074,994.40 | 20,339.12 |
| Total | 7,137,437.12 | 98,853,622.72 | 105,370,271.64 | 620,788.20 |
Otherdescription:
40.Taxespayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Value-addedtax | 8,571,895.29 | 48,652,668.81 |
| Enterpriseincometax | 119,249,068.60 | 116,032,612.72 |
| Individualincometax | 160,427.08 | 5,527,794.99 |
| Citymaintenanceandconstructiontax | 549,182.28 | 3,413,989.84 |
| Propertytax | 1,251,091.59 | 1,288,867.69 |
| Land-usetax | 806,176.59 | 943,956.91 |
| Educationsurcharge | 238,219.17 | 1,475,646.01 |
| Deedtax | 5,847,718.44 | |
| Others | 285,710.18 | 1,122,772.43 |
| Total | 131,111,770.78 | 184,306,027.84 |
Otherdescription:
41.Otherpayables
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Interestpayable | 4,521,557.54 | |
| Otherpayables | 9,479,383.03 | 84,171,854.44 |
| Total | 9,479,383.03 | 88,693,411.98 |
(1)Interestpayable
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Interestpayableonshorttermloans | 4,521,557.54 | |
| Total | 4,521,557.54 |
Majoroverdueoutstandinginterestpayable:
Unit:RMB
| Borrower | Amountoutstanding | Reason |
Otherdescription:
(2)Dividendspayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription,includingsignificantdividendspayablewhichhavenotbeenpaidformorethan1year,disclosureshallbemadeofthereasonsfornon-payment:
(3)Otherpayables
1)Listofotherpayablesbynature
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Dailyexpenses | 1,597,271.61 | 44,839,078.80 |
| Equitytransfer | 34,663,519.48 | |
| SocialSecurityandProvidentFund | 924,969.11 | 1,298,386.07 |
| deferredpaymentandothers | 6,957,142.31 | 3,370,870.09 |
| Total | 9,479,383.03 | 84,171,854.44 |
2)Majorotherpayablesagedoveroneyear
Unit:RMB
| Item | Closingbalance | Reasonsforoutstandingorcarry-over |
Otherdescription:
42.Held-for-saleliabilities
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
Otherdescription:
43.Non-currentliabilitiesduewithinoneyear
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
44.Othercurrentliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Outputtaxtobetransferred | 147,765,156.66 | 76,726,491.38 |
| Total | 147,765,156.66 | 76,726,491.38 |
Changesinshort-termbondspayable
Unit:RMB
| Name | Facevalue | DateofIssue | Period | Amount | Openingbalance | Issuanceintheperiod | Accrualofinterestatfacevalue | Premiumanddiscountamortization | Repayintheperiod | Closingbalance |
Otherdescription:
45.Long-termborrowings
(1)Categoryoflong-termborrowings
Unit:RMB
| Item | Closingbalance | Openingbalance |
Descriptionforthecategoryoflong-termborrowings:
Otherdescription,includinginterestrateranges:
46.Bondspayable
(1)Bondspayable
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
(2)Changesinbondspayable(Excludingotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsclassifiedasfinancialliabilities)
Unit:RMB
| Name | Facevalue | DateofIssue | Period | Amount | Openingbalance | Issuanceintheperiod | Accrualofinterestatfacevalue | Premiumanddiscountamortization | Repayintheperiod | Closingbalance |
| Total | -- | -- | -- |
(3)Descriptionofconversionconditionsandconversiontimeofconvertiblecorporatebonds
(4)DescriptionofotherfinancialinstrumentsclassifiedasfinancialliabilitiesInformationofotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiodChangesoffinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiod
Unit:RMB
| Financialinstrumentsissued | Opening | Increaseintheperiod | Decreaseintheperiod | Closing | ||||
| Amount | Bookvalue | Amount | Bookvalue | Amount | Bookvalue | Amount | Bookvalue | |
ExplanationofthebasisforclassifyingotherfinancialinstrumentsasfinancialliabilitiesOtherdescription
47.Leaseliability
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
48.Long-termpayable
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
(1)Listoflong-termpayablebynatureofpayment
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
(2)Specialpayable
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance | Reason |
Otherdescription:
49.Long-termemployeebenefitspayable
(1)Listoflong-termemployeebenefitspayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
(2)ChangesindefinedbenefitplansPresentvalueofdefinedbenefitplanobligations:
Unit:RMB
| Item | Amountinthecurrentperiod | Amountinthepriorperiod |
Planassets:
Unit:RMB
| Item | Amountinthecurrentperiod | Amountinthepriorperiod |
Definedbenefitplannetdebt(Netassets)
Unit:RMB
Item
| Item | Amountinthecurrentperiod | Amountinthepriorperiod |
Descriptionfordefinedbenefitplanandothermatters,namely,therisksassociatedwithit,theimpactonthecompany’sfuturecashflow,timeanduncertainty:
Descriptionforthemajoractuarialhypothesisandsensitivityanalysisofdefinedbenefitplan:
Otherdescription:
50.Estimatedliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance | Reason |
Otherdescription,includingdescriptionfortherelevantimportantassumptionsandestimatesoftheimportantestimatedliabilities:
51.Deferredincome
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance | Reason |
Projectsinvolvinggovernmentsubsidies
Unit:RMB
| Item | Openingbalance | Increasedsubsidies | Amountincludedinnon-operatingincome | Amountincludedinotherincome | Amountofcostreduction | Otherchanges | Closingbalance | Relatedtoassets/income |
Otherdescription:
52.Othernon-currentliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
Otherdescription:
53.Sharecapital
Unit:RMB
Openingbalance
| Openingbalance | Changesinthecurrentperiod(+/-) | Closingbalance | |||||
| Newsharesissued | Bonusshares | Sharestransferredfromcapitalreserve | Others | Subtotal | |||
| Totalnumberofshares | 103,807,623.00 | 103,807,623.00 | |||||
Otherdescription:
54.Otherequityinstruments
(1)Informationofotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiod
(2)Changesforotherfinancialinstrumentssuchaspreferredstocksandperpetualbondsissuedattheendoftheperiod
Unit:RMB
| Financialinstrumentsissued | Opening | Increaseintheperiod | Decreaseintheperiod | Closing | ||||
| Amount | Bookvalue | Amount | Bookvalue | Amount | Bookvalue | Amount | Bookvalue | |
Changesofotherequityinstrumentsinthecurrentperiod,thereasonsforchanges,andthebasisforrelatedaccountingtreatments:
Otherdescription:
55.Capitalreserve
Unit:RMB
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance |
| Capital(equity)premium | 956,481,049.50 | 269,000,000.00 | 1,225,481,049.50 | |
| Othercapitalreserve | 242,100,000.00 | 26,900,000.00 | 269,000,000.00 | |
| Total | 1,198,581,049.50 | 295,900,000.00 | 269,000,000.00 | 1,225,481,049.50 |
Otherexplanations,includingchangesintheperiodandreasonsforthechanges:
Note:Thechangeofcapitalreserveismainlycausedbysharebasedpayments.SeeNoteXIII.”Share-basedPayments”.
56.Treasurystock
Unit:RMB
Item
| Item | Openingbalance | Increaseintheperiod | Decreaseintheperiod | Closingbalance |
Otherexplanations,includingchangesintheperiodandreasonsforthechanges:
57.Othercomprehensiveincome
Unit:RMB
| Item | Openingbalance | Amountinthecurrentperiod | Closingbalance | |||||
| Amountbeforecurrentincometaxforthecurrentperiod | Less:Earnedtoothercomprehensiveincomeinthepreviousperiodandtransferredtoprofitandlossinthecurrentperiod | Less:Earnedtoothercomprehensiveincomeinthepreviousperiodandtransferredtoretainedearningsinthecurrentperiod | Less:incometaxexpenses | Attributabletotheparentcompany,aftertax | Attributabletominorityshareholdersaftertax | |||
| 1.Othercomprehensiveincomenotreclassifiedintogainsorlosses | 37,500,000.00 | -10,000,000.00 | -2,500,000.00 | -7,500,000.00 | 30,000,000.00 | |||
| Changesinthefairvalueofotherequityinstrumentinvestments | 37,500,000.00 | -10,000,000.00 | -2,500,000.00 | -7,500,000.00 | 30,000,000.00 | |||
| Totalothercomprehensiveincome | 37,500,000.00 | -10,000,000.00 | -2,500,000.00 | -7,500,000.00 | 30,000,000.00 | |||
Otherdescriptions,includingtheadjustmentoftheeffectivepartofthecashflowhedgegainsandlossesconvertedintotheinitiallyconfirmedamountofthehedgeditem:
58.Specialreserve
Unit:RMB
| Item | Openingbalance | Increase | Decrease | Closingbalance |
Otherexplanations,includingchangesinthecurrentperiodandthecorrespondingreasons:
59.Surplusreserve
Unit:RMB
Item
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Statutorysurplusreserve | 45,000,000.00 | 45,000,000.00 | ||
| Total | 45,000,000.00 | 45,000,000.00 |
Descriptionsforsurplusreserve,includingthechangesandthereasonsinthecurrentperiod:
60.Retainedearnings
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Retainedearningsattheendofthepreviousperiodbeforeadjustment | 2,046,657,231.32 | 1,660,363,232.50 |
| Adjustingtotalretainedearningsatthebeginningoftheperiod(Increase+,decrease-) | 247,170.28 | |
| Retainedearningsatthebeginningoftheyearafteradjustment | 2,046,657,231.32 | 1,660,610,402.78 |
| Add:netprofitattributabletoownersoftheParentCompanyforthecurrentperiod | 2,304,357,742.74 | 1,804,548,688.01 |
| Dividendpayableforcommonshares | 1,480,175,853.36 | 1,418,501,859.47 |
| Retainedearningsattheendoftheperiod | 2,870,839,120.70 | 2,046,657,231.32 |
Detailsfortheadjustmentoftheretainedearningsatthebeginningoftheperiod:
(1)TheretainedearningsatthebeginningoftheperiodimpactedbytheretroactiveadjustmentoftheASBE(AccountingStandardsforBusinessEnterprises)anditsnewregulations:RMB0.00.
(2)Theretainedearningsatthebeginningoftheperiodimpactedbythechangesinaccountingpolicies:
RMB0.00.
(3)Theretainedearningsatthebeginningoftheperiodimpactedbythemajoraccountingerrorcorrection:
RMB0.00.
(4)Theretainedearningsatthebeginningoftheperiodimpactedbythechangeofcombinationscopeundercommoncontrol:RMB0.00.
(5)Theretainedearningsatthebeginningoftheperiodimpactedbyotheradjustments:RMB0.00.
61.Revenueandcostofrevenue
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Revenue | Costofrevenue | Revenue | Costofrevenue | |
| Mainbusiness | 11,138,901,718.71 | 4,513,636,084.16 | 9,119,325,741.43 | 3,765,351,141.48 |
| Otherbusiness | 63,592,576.33 | 53,690,847.28 | 56,804,254.46 | 47,243,245.07 |
| Total | 11,202,494,295.04 | 4,567,326,931.44 | 9,176,129,995.89 | 3,812,594,386.55 |
Whethertheloweroftheauditednetprofitbeforeandafterdeductionofnon-recurringgainsandlossesisnegative
□Yes√NoInformationaboutincome:
Unit:RMB
| TypesofContracts | Section1 | Section2 | Total | |
| Inc: | ||||
| Inc: | ||||
| Inc: | ||||
| Inc: | ||||
| Inc: | ||||
| Inc: | ||||
| Inc: |
Informationaboutthefulfillmentofobligations:
NoneInformationabouttransactionpriceamortizedintherestoftheobligationtobefulfilled:
Theincomefromtheunfulfilledoruncompletedobligationwithsignedcontractsattheendofthereportingperiod:
RMB0.00.Otherdescription:
None
62.Taxesandsurcharges
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Citymaintenanceandconstructiontax | 763,262.32 | 18,428,159.57 |
| Educationsurcharge | 541,844.53 | 13,118,799.94 |
Propertytax
| Propertytax | 6,616,408.91 | 5,955,512.56 |
| Landusetax | 3,381,103.73 | 3,490,394.16 |
| Vehicleusagetax | 219,798.99 | 188,195.28 |
| Stamptax | 844,498.27 | 15,009,303.05 |
| Others | 371,797.88 | 501,274.68 |
| Total | 12,738,714.63 | 56,691,639.24 |
Otherdescription:
63.Sellingexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee’sbenefits | 1,236,069,387.65 | 997,702,180.56 |
| Marketingfee | 278,829,823.86 | 291,604,372.33 |
| Rent,propertyfee,depreciationandamortizationexpenses | 188,443,486.90 | 113,285,202.76 |
| Travelexpenses | 99,197,672.77 | 72,300,626.88 |
| Others | 9,249,741.98 | 8,092,044.25 |
| Total | 1,811,790,113.16 | 1,482,984,426.78 |
Otherdescription:
64.Generalandadministrativeexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee’sbenefits | 860,224,894.29 | 772,474,666.68 |
| Rent,propertyfee,depreciationandamortizationexpenses | 155,909,891.20 | 98,906,407.56 |
| Officeexpenses | 116,671,846.80 | 83,342,828.04 |
| Sharepayments | 26,900,000.00 | 53,800,000.00 |
| Travelexpenses | 62,125,639.40 | 46,380,858.89 |
| Welfarefee | 8,559,890.15 | 6,181,511.50 |
| Others | 49,477,045.53 | 37,385,681.29 |
| Total | 1,279,869,207.37 | 1,098,471,953.96 |
Otherdescription:
65.Researchanddevelopmentexpenses
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee’sbenefits | 980,101,934.22 | 658,279,542.88 |
| Travelexpenses | 23,799,305.33 | 14,798,355.15 |
| Others | 46,796,094.24 | 24,862,320.33 |
| Total | 1,050,697,333.79 | 697,940,218.36 |
Otherdescription:
66.Financialexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Interestexpenses | 172,114,852.12 | 107,847,460.74 |
| Less:Interestincome | 33,148,136.69 | 2,451,260.28 |
| ServiceCharges | 291,581,973.74 | 98,912,315.95 |
| Total | 430,548,689.17 | 204,308,516.41 |
Otherdescription:
67.Otherincome
Unit:RMB
| Sourcesofotherincome | Amountforthecurrentperiod | Amountforthepriorperiod |
| VATreductionandexemption | 313,855,441.46 | 3,685,465.99 |
| Subsidiesforjobsecurity | 19,123,806.18 | 2,584,908.68 |
| Taxhandlingfeerefund | 1,746,734.22 | 6,808.23 |
| Landusetaxincentive | 444,804.00 | |
| Rentsubsidy | 268,680.00 | 328,500.00 |
| Parksupportingfund | 120,000.00 | 129,000.00 |
| Smallfinancialsupportincomefromthegovernment | 151,606.91 | 14,598.91 |
| Total | 335,711,072.77 | 6,749,281.81 |
68.Investmentincome
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Dividendincomefromotherequityinstrumentsinvestmentduringtheholdingperiod | 249,600.00 | |
| Interestincomeobtainedfromdebtinvestmentduringtheholdingperiod | 76,070,548.08 | 75,092,676.43 |
| Incomefromfinancialproducts | 180,223,310.57 | 184,130,073.02 |
| Total | 256,543,458.65 | 259,222,749.45 |
Otherdescription:
69.Netexposurehedgingincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Otherdescription:
70.Gainsfromchangesinfairvalues
Unit:RMB
| Sourcesofgainsfromchangesinfairvalues | Amountforthecurrentperiod | Amountforthepriorperiod |
| Transactionalfinancialassets | 20,984,385.76 | 1,712,787.50 |
| Total | 20,984,385.76 | 1,712,787.50 |
Otherdescription:
71.Impairmentlossesofcredit
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Lossonbaddebtsofotherreceivables | -182,909.95 | -194,490.90 |
| Lossonbaddebtsofaccountsreceivables | -988,142.88 | -143,244.11 |
| Total | -1,171,052.83 | -337,735.01 |
Otherdescription:
72.Impairmentlossesofassets
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Otherdescription:
73.Incomefromassetsdisposal
Unit:RMB
| Sourcesofincomefromassetsdisposal | Amountforthecurrentperiod | Amountforthepriorperiod |
| Fixedassets | 162,043.59 | 182,904.69 |
74.Non-operatingincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedincurrentnon-recurringgainsandlosses |
| Governmentalsubsidy | 19,800.00 | 19,800.00 | |
| Others | 798.00 | 2,000.00 | 798.00 |
| Gainsfromdisposalofnon-currentassets | 44,705.00 | 44,705.00 | |
| Inc:gainsfromdisposaloffixedassets | 44,705.00 | 44,705.00 | |
| Total | 65,303.00 | 2,000.00 | 65,303.00 |
Governmentsubsidyreckonedintocurrentgainsandlosses:
Unit:RMB
| Item | Entity | Purpose | Type | Whetherthesubsidyimpactsthegain/lossoftheyear | Whetheritisspecialsubsidy | Amountforthecurrentperiod | Amountforthepriorperiod | Relatedtoassets/income |
| SpecialSubsidyforinfraredthermometersforpandemicPreventionfromHaidianDevelopmentandReformCommission | 19,800.00 | 0.00 | Relatedtoincome |
Otherdescription:
75.Non-operatingexpenses
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedinthecurrentnon-recurringprofit(gains)/losses |
| Outwarddonation | 305,003.50 | 70,000.00 | 305,003.50 |
| Compensationexpenses | 3,845.50 | 1,193,903.00 | 3,845.50 |
| Others | 6,552.38 | ||
| Forfeitureandoverduefine | 365,792.85 | 72,956.87 | 365,792.85 |
| Total | 674,641.85 | 1,343,412.25 | 674,641.85 |
Otherdescription:
76.Incometaxexpenses
(1)Statementofincometaxexpenses
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Currentincometaxexpense | 356,690,541.80 | 298,583,001.18 |
| Deferredincometaxexpense | 121,566.92 | -13,798,238.91 |
| Total | 356,812,108.72 | 284,784,762.27 |
(2)Adjustmentprocessofaccountingprofitandincometaxexpense
Unit:RMB
| Item | Amountforthecurrentperiod |
| Totalprofit | 2,661,143,874.57 |
| Incometaxexpensescalculatedatstatutory/applicabletaxrate(s) | 399,171,581.19 |
| Impactfromdifferenttaxratesapplicabletosubsidiaries | -6,991,306.55 |
| Impactfromadjustmentofpreviousperiodsincometax | -13,895.40 |
| Impactfromnon-taxableincome | -62,400.00 |
| Impactfromnon-deductiblecost,expenseandloss | 5,245,057.55 |
Impactfromusingdeductiblelossesofpreviouslyunrecognizeddeferredincometaxassets
| Impactfromusingdeductiblelossesofpreviouslyunrecognizeddeferredincometaxassets | -78,416.71 |
| Impactfromdeductibletemporarydifferencesordeductiblelossesofdeferredincometaxassetsunrecognizedinthecurrentperiod | 4,648,819.61 |
| Incometaxexpenses | 356,812,108.72 |
Otherdescription:
77.OthercomprehensiveincomeFordetails,pleaserefertoNoteVII(57)Othercomprehensiveincomeofthisreport.
78.CashFlowStatementItems
(1)Othercashreceivedrelatedtooperatingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Depositsandguarantees | 206,647,643.62 | 12,966,970.83 |
| interestincome | 33,148,136.69 | 2,442,258.77 |
| Otherincomeandnon-operatingincome | 22,576,746.74 | 6,707,550.47 |
| Capitaloccupationfee | 13,324,109.00 | |
| Reservefunds | 5,313,917.82 | 117,167.05 |
| deferredexpenseandothers | 1,548,933.16 | |
| Currentaccount | 21,013,208.09 | |
| Total | 282,559,487.03 | 43,247,155.21 |
Explanationforothercashreceivedrelatedtooperatingactivities:
(2)OtherCashpaidrelatedtooperatingactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Dailyexpenses | 1,015,974,942.08 | 776,387,546.48 |
| Servicecharges | 291,248,494.89 | 98,912,315.95 |
| Depositsandguarantees | 70,688,933.00 | 228,169,372.25 |
| Reservefunds | 5,480,802.14 | 462,505.64 |
| Non-operatingexpenses | 674,641.85 | 1,343,412.25 |
deferredexpenseandothers
| deferredexpenseandothers | 1,251,691.76 | |
| Currentaccount | 105,790,520.79 | |
| Total | 1,384,067,813.96 | 1,212,317,365.12 |
Explanationforothercashpaidrelatedtooperatingactivities:
(3)Othercashreceivedrelatedtoinvestmentactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Explanationforothercashreceivedrelatedtoinvestmentactivities:
(4)Othercashpaidrelatedtoinvestmentactivities
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Engineeringdeposit | 200,000,000.00 | |
| Total | 200,000,000.00 |
Explanationforothercashpaidrelatedtoinvestmentactivities:
(5)Othercashreceivedrelatedtofundraising
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Equitydistributionmargin | 1,000,000.00 | |
| Total | 1,000,000.00 |
Explanationforothercashreceivedrelatedtofundraising:
(6)Othercashpaidrelatedtofundraising
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Equitydistributionmargin | 1,000,000.00 | |
| Dividendhandlingfee | 333,478.85 | 1,503,370.80 |
| Total | 1,333,478.85 | 1,503,370.80 |
Explanationforothercashpaidrelatedtofundraising:
79.Supplementaryinformationforcashflowstatement
(1)Supplementaryinformationforthecashflowstatement
Unit:RMB
Supplementaryinformation
| Supplementaryinformation | Amountforthecurrentperiod | Amountforthepriorperiod |
| 1.Netprofitadjustedtocashflowofoperatingactivities: | -- | -- |
| Netprofit | 2,304,331,765.85 | 1,804,542,668.51 |
| Add:Provisionforimpairmentofassets | ||
| Creditimpairmentloss | 1,171,052.83 | 337,735.01 |
| Depreciationoffixedassetsandproductivebiologicalassets,anddepletionofoilandgasassets | 88,365,469.55 | 71,901,162.47 |
| Depreciationofright-of-useassets | ||
| Amortizationofintangibleassets | 12,694,728.51 | 6,922,211.36 |
| Amortizationoflong-termdeferredexpense | 62,457,211.00 | 83,512,778.76 |
| Losses(gainsareindicatedby“-”)ondisposaloffixedassets,intangibleassetsandotherlong-termassets | -162,043.59 | -182,904.69 |
| Losses(gainsareindicatedby“-”)onwrite-offoffixedassets | -44,705.00 | |
| Losses(gainsareindicatedby“-”)onchangesinfairvalues | -20,984,385.76 | -1,712,787.50 |
| Financialexpenses(incomeisindicatedby“-”) | 172,448,330.97 | 107,847,460.74 |
| Losses(gainsareindicatedby“-”)frominvestments | -256,543,458.65 | -259,222,749.45 |
| Decrease/(increaseisindicatedby“-”)indeferredincometaxassets | -123,604.64 | -11,463,011.76 |
| Increase(decreaseisindicatedby“-”)indeferredincometaxliabilities | 245,171.56 | -2,335,227.15 |
| Decrease(increaseisindicatedby“-”)ininventories | 20,062.46 | |
| Decrease(increaseisindicatedby“-”)inoperatingreceivables | 107,621,688.58 | -276,297,092.22 |
| Increase(decreaseisindicatedby“-”)inoperatingpayables | 2,384,091,880.70 | 896,315,778.65 |
| Others | 26,900,000.00 | 53,800,000.00 |
Netcashflowfromoperatingactivities
| Netcashflowfromoperatingactivities | 4,882,469,101.91 | 2,473,986,085.19 |
| 2.Significantinvestmentandfinancingactivitiesnotinvolvingcashflow: | -- | -- |
| Conversionofdebtintocapital | ||
| Convertiblebondsduewithin1year | ||
| Fixedassetsacquiredunderfinancinglease | ||
| 3.Netchangesincashandcashequivalents: | -- | -- |
| Closingbalanceofcash | 5,950,036,489.12 | 2,724,335,001.58 |
| Less:Openingbalanceofcash | 2,724,335,001.58 | 648,711,545.32 |
| Add:Closingbalanceofcashequivalents | ||
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseofcashandcashequivalents | 3,225,701,487.54 | 2,075,623,456.26 |
(2)Netcashpaidforacquiringsubsidiariesforthecurrentperiod
Unit:RMB
Otherdescription:
(3)Netcashacquiredfromdisposalofsubsidiariesinthecurrentperiod
Unit:RMB
AmountAmount
Otherdescription:
(4)Compositionofcashandcashequivalents
Unit:RMB
AmountItem
| Item | Closingbalance | Openingbalance |
| I.Cash | 5,950,036,489.12 | 2,724,335,001.58 |
| Including:Cashonhand | 67,906.76 | 40,288.16 |
| Cashatbank | 5,881,843,030.73 | 2,657,929,052.80 |
| Othermonetarycapitalforpaymentatanytime | 68,125,551.63 | 66,365,660.62 |
| III.Closingbalanceofcashandcashequivalent | 5,950,036,489.12 | 2,724,335,001.58 |
| Including:Cashandcashequivalentswithrestricteduseofparentcompanyorsubsidiarieswithinthegroup |
Otherdescription:
80.Noteonstatementofchangesinowners’equityExplanationoftheadjustmentof“otheritems”andtheamounttotheclosingbalanceattheendofthepreviousyear:
None
81.Assetswithrestrictedownershiporuserights
Unit:RMB
Item
| Item | Closingbookvalue | Reasonforrestriction |
| Monetaryfunds | 358,600.00 | guarantees |
| Non-currentassetsmaturingwithinoneyear | 1,000,000,000.00 | Pledgeloannotyettocompletethereleaseprocedures |
| Total | 1,000,358,600.00 | -- |
Otherdescription:
AsofDecember31,2020,thenon-currentassetsofRMB500,000,000.00duewithinoneyearhavenotyetcompletedthereleaseprocedures,andtherelevantshort-termloanshavebeenpaidoffinSeptember2020;allofthenon-currentassetsduewithinoneyearhavebeenreleasedinApril2021.
82.Monetaryitemsdenominatedinforeigncurrency
(1)Monetaryitemsdenominatedinforeigncurrency
Unit:RMB
| Item | Closingbalanceofforeigncurrency | Exchangerate | ClosingbalanceconvertedtoRMB |
| Moneyfunds | -- | -- | |
| Inc:dollar | |||
| euro | |||
| HongKongdollar |
| Accountsreceivable | -- | -- |
| Inc:dollar | ||
| euro | ||
| HongKongdollar |
Long-termloan
| Long-termloan | -- | -- |
| Inc:dollar | ||
| euro | ||
| HongKongdollar |
Otherdescription:
(2)Descriptionsforout-boundoperationalentity,includingthedisclosureofimportantout-boundentity’sprincipalplaceofbusiness,recordingcurrencyandthebasisofitsselection.Reasonsshouldberevealediftherecordingcurrencychanges.
□Applicable√Notapplicable
83.HedgingDisclosureofhedgingitems,relatedhedgingtoolsandthequalitativeandquantitativeinformationonhedgedrisksaccordingtohedgecategories:
None
84.Governmentgrants
(1)GeneralinformationofGovernmentgrants
Unit:RMB
| Types | Amount | Listeditems | Amountincludedincurrentgainsandlosses |
| Subsidyforjobsecurity | 19,123,806.18 | Otherincome | 19,123,806.18 |
| Landusetaxincentive | 444,804.00 | Otherincome | 444,804.00 |
| Rentsubsidy | 268,680.00 | Otherincome | 268,680.00 |
| Parksupportingfund | 120,000.00 | Otherincome | 120,000.00 |
| Smallfinancialsupportincomefromthegovernment | 151,606.91 | Otherincome | 151,606.91 |
| Specialsubsidyforinfraredthermometersreceivedduringthepandemic | 19,800.00 | Non-performingincome | 19,800.00 |
| Total | 20,128,697.09 | 20,128,697.09 |
(2)Refundofgovernmentsubsidies
□Applicable√NotapplicableOtherdescription:
85.OthersNoneSectionVIII.ChangesoftheConsolidationScope
1.Businesscombinationsnotundercommoncontrol
(1)Businesscombinationsnotundercommoncontrolforthecurrentperiod
Unit:RMB
Nameofthe
acquiree
| Nameoftheacquiree | Timeofacquiringequity | Costofacquiringequity | Proportionofequityacquisition | Waysofacquiringequity | Dateofacquisition | Basisofdeterminingthedateofacquisition | Incomeoftheacquireefromthepurchasedatetotheendoftheperiod | Netprofitoftheacquireefromthepurchasedatetotheendoftheperiod |
Otherdescription:
None
(2)Mergercostsandgoodwill
Unit:RMB
Explanationofthemethodofdeterminingthefairvalueofthemergercosts,andcontingentconsiderationanditschanges:
NoneThemainreasonsfortheformationoflargegoodwill:
NoneOtherdescription:
None
(3)Theidentifiableassetsandliabilitiesoftheacquireeatthedateofacquisition
Unit:RMB
Fairvalueatthedateofacquisition
| Fairvalueatthedateofacquisition | Bookvalueofthedateofacquisition |
Themethodofdeterminingthefairvalueofidentifiableassetsandliabilities:
NoneThecontingentliabilitiesoftheacquireeassumedinthebusinesscombination:
NoneOtherdescription:
None
(4)Gainsorlossesarisingfromre-measurementofequityheldbeforethepurchasedateatfairvalueWhetherthereisatransactionthatrealizesbusinesscombinationstepbystepthroughmultipletransactionsandobtainscontrolduringthereportingperiod
□Yes√No
(5)Relevantdescriptionsaboutthefailureofdeterminingthemergerconsiderationorthefairvalueoftheidentifiableassetsandliabilitiesoftheacquireeonthedateofacquisitionorattheendofthemergerperiod
None
(6)Otherdescriptions
None
2.Businesscombinationsundercommoncontrol
(1)Businesscombinationsundercommoncontrolforthecurrentperiod
Unit:RMB
| Nameofthemergedparty | Equityratioobtainedinthebusinesscombination | Basisforbusinesscombinationundercommoncontrol | Dateofbusinesscombination | Basisofdeterminingthecombinationdate | Incomeofthemergedpartyfromthebeginningofcombinationperiodtothecombinationdate | Netprofitofthemergedpartyfromthebeginningofthecombinationperiodtothecombinationdate | Incomeofthemergedpartyduringthecomparisonperiod | Netprofitofthemergedpartyduringthecomparisonperiod |
Otherdescription:
None
(2)Costofbusinesscombination
Unit:RMB
Costofbusinesscombination
Descriptionsforthecontingentconsiderationanditschanges:
NoneOtherdescription:
None
(3)Bookvalueofassetsandliabilitiesofthemergedpartyonthecombinationdate
Unit:RMB
CostofbusinesscombinationCombinationdate
| Combinationdate | Endofthepreviousperiod |
Contingentliabilitiesofthemergedpartyassumedinthebusinesscombination:
NoneOtherdescription:
None
3.ReversepurchaseBasicinformationofthetransaction,thebasisforrecognizingthetransactionasreversepurchase,whethertheassetsandliabilitiesretainedbythelistedcompanyconstituteabusinessanditsjudgingbasis,thedeterminationofthemergercost,theadjustmentamountofequityanditscalculationmethodwhentreatedasequitytransactions:
None
4.DisposalofsubsidiariesWhetherthereisasituationwhereasingledisposaloftheinvestmentinthesubsidiaryresultsinthelossofcontrol
□Yes√NoWhetherthereisasituationwheretheinvestmentinthesubsidiarydisposedstepbystepthroughmultipletransactionsresultsinthelossofcontrolinthecurrentperiod
□Yes√No
5.ChangesofthescopeofconsolidationduetootherreasonsExplanationofthechangesinthescopeofconsolidationcausedbyotherreasons(suchasnewlyestablishedsubsidiaries,liquidationsubsidiaries,etc.)andtherelevantcircumstances:
Fullnameofthesubsidiary
| Fullnameofthesubsidiary | Proportionofshareholding(%) | Reasonforchanges |
| 1.BeijingOffcnFutureEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 2.BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | 100.00 | Newestablishment |
| 3.ShaanxiOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 4.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 5.WuhuOffcnTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 6.WuhanGuoshangHumanResourceServiceCo.,Ltd | 100.00 | Newestablishment |
| 7.JinanZhangqiuOffcnTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 8.MengziOffcnEducationTrainingCo.Ltd. | 100.00 | Newestablishment |
| 9.BeijingOffcnTechnologyDevelopmentCo.Ltd | 100.00 | Newestablishment |
| 10.ShanghaiOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 11.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 12.PingshanOffcnEducationTechnologyCo.Ltd. | 100.00 | Newestablishment |
| 13.ShandongOffcnEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
| 14.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | 100.00 | Newestablishment |
6.Others
None
SectionIX.InterestInOtherEntities
1.Interestinsubsidiaries
(1)CompositionoftheCompany
| Name | Principalplaceofbusiness | Placeofregistration | Natureofbusiness | Shareholdingratio | Acquisitionmethod | |
| Direct | Indirect | |||||
1.OffcnLtd.
| 1.OffcnLtd. | Beijing | Beijing | Serviceindustry | 100.00% | Reversepurchase | |
| 2.WuhuYaweiAutomobileSalesServiceCo.,Ltd | Wuhu | Wuhu | Merchandisesales,etc. | 100.00% | Newestablishment | |
| 3.NingguoYaxiaAutomobileDriverTrainingSchool(Co.,Ltd.) | Ningguo | Ningguo | Serviceindustry | 100.00% | Newestablishment | |
| 4.HuangshanYaxiaFudiAutomobileSalesServicesCo.,Ltd. | Huangshan | Huangshan | Merchandisesales,etc. | 100.00% | Newestablishment | |
| 5.ChaohuYaxiaKaixuanAutomobileSalesServicesCo.,Ltd. | Hefei | Hefei | Merchandisesales,etc. | 100.00% | Newestablishment | |
| 6.BozhouYaxiaAutomobileDriverTrainingSchoolCo.,Ltd. | Bozhou | Bozhou | Serviceindustry | 100.00% | Newestablishment | |
| 7.SuzhouBokaiAutomobileSalesServicesCo.,Ltd. | Suzhou | Suzhou | Merchandisesales,etc. | 100.00% | Acquisition | |
| 8.BeijingOffcnFutureEducationTechnologyCo.Ltd. | Beijing | Beijing | Serviceindustry | 100.00% | Newestablishment | |
| 9.BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | Beijing | Beijing | Serviceindustry | 100.00% | Newestablishment | |
| 10.ShaanxiOffcnEducationTechnologyCo.Ltd. | Xi’an | Xi’an | Serviceindustry | 100.00% | Newestablishment | |
| 11.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | Chengdu | Chengdu | Serviceindustry | 100.00% | Newestablishment | |
| 12.ZhejiangOffcnEducationTechnologyCo.Ltd. | Hangzhou | Hangzhou | Serviceindustry | 100.00% | Newestablishment | |
| 13.TaizhouOffcnFutureEnterpriseManagementConsultingCo.,Ltd. | Taizhou | Taizhou | Serviceindustry | 100.00% | Newestablishment | |
| 14.BeijingOffcnXinzhiyuOnlineTechnologyCo.,Ltd. | Beijing | Beijing | Serviceindustry | 100.00% | Newestablishment | |
| 15.HulunbuirHailarOffcnEducationInformationConsultingCo.,Ltd. | Hulunbuir | Hulunbuir | Serviceindustry | 100.00% | Newestablishment | |
| 16.XilinhotOffcnFutureEducationConsultingCo.,Ltd. | Xilinhot | Xilinhot | Serviceindustry | 100.00% | Newestablishment | |
| 17.YueqingLechengOffcnTrainingCenterCo.,Ltd. | Yueqing | Yueqing | Serviceindustry | 100.00% | Newestablishment |
18.JiaozuoOffcnFutureEducationServiceCo.,Ltd.
| 18.JiaozuoOffcnFutureEducationServiceCo.,Ltd. | Jiaozuo | Jiaozuo | Serviceindustry | 100.00% | Newestablishment | |
| 19.XinzhengOffcnCulturalCommunicationCo.,Ltd. | Zhengzhou | Zhengzhou | Serviceindustry | 100.00% | Newestablishment | |
| 20.ChongqingJiangbeiOffcnVocationalExaminationTrainingCo.,Ltd. | Chongqing | Chongqing | Serviceindustry | 100.00% | Newestablishment | |
| 21.NanningOffcnFutureEducationConsultingCo.,Ltd. | Nanning | Nanning | Serviceindustry | 100.00% | Newestablishment | |
| 22.BaiyinOffcnFutureEducationConsultingCo.,Ltd. | Baiyin | Baiyin | Serviceindustry | 100.00% | Newestablishment | |
| 23.BeijingXindezhiyuanEnterpriseManagementConsultingCo.,Ltd. | Beijing | Beijing | Serviceindustry | 100.00% | Newestablishment | |
| 24.NanjingHuiyueHotelManagementCo.,Ltd. | Nanjing | Nanjing | Serviceindustry | 100.00% | Acquisition | |
| 25.ShandongKunzhongRealEstateCo.,Ltd. | Jinan | Jinan | Serviceindustry | 100.00% | Acquisition | |
| 26.SanmenxiaOffcnCulturalCommunicationCo.,Ltd. | Sanmenxia | Sanmenxia | Serviceindustry | 100.00% | Newestablishment | |
| 27.LiaoningOffcnAcademic&CulturalExchangeCo.,Ltd. | Shenyang | Shenyang | Serviceindustry | 100.00% | Newestablishment | |
| 28.LiaoningOffcnEducationTechnologyCo.,Ltd. | Shenfuxinqu | Shenfuxinqu | Serviceindustry | 100.00% | Newestablishment | |
| 29.ShandongOffcnEducationTechnologyCo.,Ltd. | Qingdao | Qingdao | Serviceindustry | 100.00% | Newestablishment | |
| 30.JilinChangyiOffcnEducationTrainingSchoolCo.,Ltd. | Jilin | Jilin | Serviceindustry | 100.00% | Newestablishment | |
| 31.YuxiOffcnTrainingSchoolCo.,Ltd. | Yuxi | Yuxi | Serviceindustry | 100.00% | Newestablishment | |
| 32.TonghuaOffcnTrainingSchoolCo.,Ltd. | Tonghua | Tonghua | Serviceindustry | 100.00% | Newestablishment | |
| 33.HunanLighsaltOffcnEducationTechnologyCo.,Ltd. | Changsha | Changsha | Serviceindustry | 90.00% | Newestablishment | |
| 34.TianjinHexiOffcnTrainingSchoolCo.,Ltd. | Tianjin | Tianjin | Serviceindustry | 100.00% | Newestablishment |
35ChengduOffcnEducationTrainingSchoolCo.,Ltd.
| 35ChengduOffcnEducationTrainingSchoolCo.,Ltd. | Chengdu | Chengdu | Serviceindustry | 100.00% | Newestablishment | |
| 36.ShandongZhuodaBusinessManagementCo.,Ltd. | Rizhao | Rizhao | Serviceindustry | 100.00% | Newestablishment | |
| 37.LiaoningZhongchengRealEstateDevelopmentCo.,Ltd. | Shenfuxinqu | Shenfuxinqu | Realestate | 100.00% | Acquisition | |
| 38.WuhuOffcnTrainingSchoolCo.Ltd. | Wuhu | Wuhu | Serviceindustry | 100.00% | Newestablishment | |
| 39.WuhanGuoshangHumanResourceServiceCo.,Ltd. | Wuhan | Wuhan | Serviceindustry | 100.00% | Newestablishment | |
| 40.JinanZhangqiuOffcnTrainingSchoolCo.Ltd. | Jinan | Jinan | Serviceindustry | 100.00% | Newestablishment | |
| 41.MengziOffcnEducationTrainingCo.Ltd. | Mengzi | Mengzi | Serviceindustry | 100.00% | Newestablishment | |
| 42.BeijingOffcnTechnologyDevelopmentCo.Ltd | Beijing | Beijing | Serviceindustry | 100.00% | Newestablishment | |
| 43.ShanghaiOffcnEducationTechnologyCo.Ltd. | Shanghai | Shanghai | Serviceindustry | 100.00% | Newestablishment | |
| 44.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | Guangzhou | Guangzhou | Serviceindustry | 100.00% | Newestablishment | |
| 45.PingshanOffcnEducationTechnologyCo.Ltd. | Shijiazhuang | Shijiazhuang | Serviceindustry | 100.00% | Newestablishment | |
| 46.ShandongOffcnEducationTrainingSchoolCo.Ltd. | Jinan | Jinan | Serviceindustry | 100.00% | Newestablishment | |
| 47.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | Lanzhou | Lanzhou | Serviceindustry | 100.00% | Newestablishment |
Explanationofthedifferencesbetweenthepercentageofsharesheldinthesubsidiaryandthevotingrightsratio:
None.Basisforthecaseofholdinghalforlessofthevotingrightsbutstillcontrollingtheinvestee,orholdingmorethanhalfofthevotingrightsbutnotcontrollingtheinvestee:
None.Basisfortheimportantstructuredentitiesincludedinthescopeofconsolidation:
None.BasisfordeterminingwhethertheCompanyisanagentoraprincipal:
None.Otherdescription:
None
(2)Theimportantnon-whollyownedsubsidiary
Unit:RMB
Nameofthesubsidiary
| Nameofthesubsidiary | MinorityShareholdingRatio | Profitandlossattributabletominorityshareholdersinthecurrentperiod | Dividendsdeclaredtominorityshareholdersinthecurrentperiod | Thebalanceofminorityshareholders’equityattheendoftheperiod |
Explanationforthedifferencesbetweentheratiooftheminorityshareholders’shareholdingandthevotingrightsratio:
None.Otherdescription:
None
(3)Majorfinancialinformationofimportantnon-whollyownedsubsidiaries
Unit:RMB
| Nameofthesubsidiary | Closingbalance | OpeningBalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | TotalLiabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | TotalLiabilities | |
Unit:RMB
| Nameofthesubsidiary | Amountforthecurrentperiod | Amountforthepriorperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowfromoperatingactivities | |
Otherdescription:
None
(4)SignificantrestrictionsontheuseofcorporategroupassetsandthesettlementofcorporategroupdebtsNone
(5)FinancialsupportorothersupportprovidedtostructuredentitiesincludedinthescopeofconsolidatedfinancialstatementsNoneOtherdescription:
None
2.Transactionswithchangesintheownershipequityshareofthesubsidiarybutthesubsidiarystillundercontrol
(1)ExplanationofchangesintheownershipshareofsubsidiariesNone.
(2)Impactofthetransactionontheequityofminorityshareholdersandtheequityattributabletotheparentcompany
Unit:RMBOtherdescription:
None
3.Interestsinjointarrangementsorjointventures
(1)Significantjointventuresandassociates
Nameofjointventuresandassociates
| Nameofjointventuresandassociates | Theprincipalplaceofbusiness | Theplaceofregistration | Businessnature | Shareholdingratio | Accountingtreatmentofinvestmentinjointventuresorassociates | |
| Direct | Indirect | |||||
Explanationofthedifferencesbetweentheshareholdingratioinajointventureoranassociateandthatofthevotingrightsratio:
None.Basisforthecaseofholdinglessthan20%ofthevotingrightsbuthavingsignificantinfluence,orholding20%ormoreofthevotingrightsbutnothavingsignificantinfluence:
None.
(2)Mainfinancialinformationofimportantjointventures
Unit:RMB
Closingbalance/Amountforthecurrent
period
| Closingbalance/Amountforthecurrentperiod | OpeningBalance/Amountforthepriorperiod |
Otherdescription:
None
(3)Mainfinancialinformationofimportantassociates
Unit:RMB
| Closingbalance/Amountforthecurrentperiod | OpeningBalance/Amountforthepriorperiod |
Otherdescription:
None
(4)Summaryfinancialinformationofunimportantjointventuresandassociates
Unit:RMB
| Closingbalance/Amountforthecurrentperiod | OpeningBalance/Amountforthepriorperiod | |
| Jointventure | ||
| Thesumofthefollowingitemsaccordingtoshareholdingratio | ||
| Associatedenterprise | ||
| Thesumofthefollowingitemsaccordingtoshareholdingratio |
Otherdescription:
None
(5)ExplanationofsignificantrestrictionsontheabilityofjointventuresorassociatestotransferfundstotheCompanyNone.
(6)Excesslossesincurredbyjointventuresorassociates
Unit:RMB
Nameofjointventuresor
associates
| Nameofjointventuresorassociates | Unrecognizedlossaccumulatedinthepreviousperiod | Unrecognizedlossinthecurrentperiod(ornetprofitsharedinthecurrentperiod) | Accumulatedunrecognizedlossattheendoftheperiod |
Otherdescription:
None
(7)UnconfirmedcommitmentsrelatedtojointventureinvestmentNone.
(8)ContingentliabilitiesrelatedtoinvestmentinjointventuresorassociatesNone.
4.Importantjointbusiness
| Nameofjointbusiness | Theprincipalplaceofbusiness | Theplaceofregistration | Businessnature | Shareholdingratio/shares | |
| Direct | Indirect | ||||
Explanationofthedifferencesoftheshareholdingratioorthesharesenjoyedinthejointoperationfromthatofthevotingrights:
None.Basisforclassificationasajointoperationifthejointoperationisaseparateentity:
None.Otherdescription:
None
5.EquityinstructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatementsExplanationofstructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatements:
None.
6.OthersNone.SectionX.RisksAssociatedwithFinancialInstruments
TheCompany’smainfinancialinstrumentsincludemonetaryfunds,transactionalfinancialassets,accounts
receivable,otherreceivables,debtinvestments,otherequityinvestment,andothernon-currentfinancialassets,etc.TherisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbytheCompanytoreducetheserisksaredescribedbelow.TheCompany’smanagementmanagesandmonitorstheseriskexposurestoensurethattherisksareconfinedtoadefinedrange.Riskmanagementobjectivesandpolicies:TheCompany’sriskmanagementistostrikeanappropriatebalancebetweenrisksandbenefits,minimizethenegativeimpactofrisksontheCompany’sbusinessperformanceandmaximizetheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementobjective,thebasicstrategyoftheCompany’sriskmanagementistodetermineandanalyzevariousrisksfacedbytheCompany,establishanappropriatebottomlineforrisktolerance,makeriskmanagementandtimelyandreliablysuperviseandconfinevariousriskstoadefinedrange.ThemainriskscausedbytheCompany’sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk..
1.Classificationoffinancialinstruments
1.1Carryingvalueofvariousfinancialassetsonthebalancesheetdate
(1)December31,2020
Item
| Item | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvaluethroughprofitorloss | Financialassetsmeasureatfairvaluethroughothercomprehensiveincome | Total |
| Monetaryfunds | 5,950,395,089.12 | 5,950,395,089.12 | ||
| Transactionalfinancialassets | 983,205,858.25 | 983,205,858.25 | ||
| Accountsreceivable | 21,493,637.66 | 21,493,637.66 | ||
| Otherreceivables | 304,318,966.20 | 304,318,966.20 | ||
| Non-currentassetsduewithinoneyear | 1,985,873,462.75 | 1,985,873,462.75 | ||
| Othercurrentassets | 41,832,345.30 | 41,832,345.30 | ||
| Investmentinotherequityinstruments | 152,800,000.00 | 152,800,000.00 | ||
| Othernon-currentfinancialassets | 208,450,315.01 | 208,450,315.01 |
(2)December31,2019
| Item | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvaluethroughprofitorloss | Financialassetsmeasureatfairvaluethroughothercomprehensiveincome | Total |
| Monetaryfunds | 2,724,335,001.58 | 2,724,335,001.58 |
Transactionalfinancialassets
| Transactionalfinancialassets | 1,754,396,227.54 | 1,754,396,227.54 | ||
| Accountsreceivable | 2,721,638.09 | 2,721,638.09 | ||
| Otherreceivables | 255,013,296.96 | 255,013,296.96 | ||
| Debtinvestments | 1,923,598,909.09 | 1,923,598,909.09 | ||
| Investmentinotherequityinstruments | 162,800,000.00 | 162,800,000.00 | ||
| Othernon-currentfinancialassets | 138,166,559.96 | 138,166,559.96 |
1.2Carryingvalueofvariousfinancialassetsonthebalancesheetdate
(1)December31,2020
| Item | Financialliabilitiesatfairvaluethroughprofitorloss | Otherliabilities | Total |
| Short-termborrowings | 3,976,019,329.22 | 3,976,019,329.22 | |
| Accountspayable | 211,824,402.86 | 211,824,402.86 | |
| Otherpayable | 9,479,383.03 | 9,479,383.03 |
(2)December31,2019
| Item | Financialliabilitiesatfairvaluethroughprofitorloss | Otherliabilities | Total |
| Short-termborrowings | 2,867,000,000.00 | 2,867,000,000.00 | |
| Accountspayable | 236,481,990.86 | 236,481,990.86 | |
| Otherpayable | 88,693,411.98 | 88,693,411.98 |
2.CreditriskThefinancialassetsoftheCompanyincludemonetaryfunds,transactionalfinancialassets,accountsreceivable,otherreceivables,etc.Thecreditriskofthesefinancialassetsiscausedbythedefaultofthecounterparty.Themaximumriskexposureisequaltothebookamountoftheseinstruments,including:
TheCompany’sworkingcapitalisdepositedinbankswithhighcreditrating,sothecreditriskofworkingcapitalislow.
ThebiggestcreditrisktotheCompanyisthebookvalueofaccountsreceivableandotherreceivablesintheconsolidatedbalancesheet.TheCompanycontinuouslymonitorsthebalanceofaccountsreceivableandotherreceivablestoensurethattheoverallcreditriskofthecompanyisundercontrol.ThequantitativedataoftheCompany’screditriskexposurearisingfromaccountsreceivableandotherreceivablescanbefoundinNoteVII
(5)“Accountsreceivable“andNoteVII(8)“Otherreceivables”.
3.LiquidityriskTheCompanyadoptstherevolvingliquidityplantooltomanagetheriskofcapitalshortage.Thefacilityconsidersboththematuritydateofitsfinancialinstrumentsandtheexpectedcashflowgeneratedbythecompany’soperations.ThegoaloftheCompanyistomaintainthebalancebetweenthesustainabilityandflexibilityoffinancingthroughavarietyoffinancinginstruments,includingbankloansandotherinterest-bearingloans.Whenmanagingliquidityrisks,theCompanyshallmaintainsufficientcashandcashequivalentsasdeemedbythemanagementandmonitorthemtomeettheCompany’soperationalneedsandreducetheimpactofcashflowfluctuations.Themanagementsmonitortheuseofbankloansandensurecompliancewithloanagreements.
Maturityanalysisoffinancialliabilitiesbasedonundiscountedcontractcashflow:
Item
| Item | December31,2020 | |||
| Within1year | 1-5years | Over5years | Total | |
| Short-termloan | 3,976,019,329.22 | 3,976,019,329.22 | ||
| Accountspayable | 211,824,402.86 | 211,824,402.86 | ||
| Otherpayable | 9,479,383.03 | 9,479,383.03 | ||
Continuedtable:
| Item | December31,2020 | |||
| Within1year | 1-5years | Over5years | Total | |
| Short-termloan | 2,867,000,000.00 | 2,867,000,000.00 | ||
| Accountspayable | 236,481,990.86 | 236,481,990.86 | ||
| Otherpayable | 88,693,411.98 | 88,693,411.98 | ||
4.MarketriskMarketriskreferstotheriskthatthefairvalueoffinancialinstrumentsorfuturecashflowfluctuatesduetochangesinmarketprices,includinginterestrateriskandforeigncurrencyrisk.
4.1.InterestrateriskNone
4.2.CurrencyriskNone
SectionXI.FairValueDisclosure
1.Theendingfairvalueofassetsandliabilitiesmeasuredatfairvalue
Unit:RMB
Item
| Item | Fairvalueattheendoftheperiod | |||
| Level1 | Level2 | Level3 | Total | |
| I.Continuousfairvaluemeasurement | -- | -- | -- | -- |
| 1.Transactionalfinancialasset | 1,153,606,173.26 | 38,050,000.00 | 1,191,656,173.26 | |
| (1)Financialassetatfairvaluethroughprofitorloss | 1,153,606,173.26 | 38,050,000.00 | 1,191,656,173.26 | |
| ①Debtinstruments | 1,153,606,173.26 | 38,050,000.00 | 1,191,656,173.26 | |
| 3.Otherequityinstruments | 152,800,000.00 | 152,800,000.00 | ||
| Totalassetsmeasuredcontinuouslyatfairvalue | 1,153,606,173.26 | 190,850,000.00 | 1,344,456,173.26 | |
| II.Non-continuousfairvaluemeasurement | -- | -- | -- | -- |
2.Thebasisfordeterminingthemarketpriceofcontinuousandnon-continuousfirst-levelfairvaluemeasurementprojectsNone.
3.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandimportantparametersforcontinuousandnon-continuoussecond-levelfairvaluemeasurementprojectsTheCompany’ssustainablesecond-levelfairvaluemeasurementitemsaremainlyfinancialproducts,Thefairvalueisdeterminedbythediscountedcashflowmethodandtheexpectedrateofreturn.
4.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandimportantparametersforcontinuousandnon-continuousthird-levelfairvaluemeasurementprojectsTheCompany’ssustainablethird-levelfairvaluemeasurementitemsaremainlynon-tradableequityinstrumentinvestmentanddebtinstrumentinvestment.Thefairvalueisdeterminedbymarketmethodandliquiditydiscount.
5.Continuousthird-levelfairvaluemeasurementproject,adjustmentinformationbetweentheopeningandclosingbookvalueandsensitivityanalysisofunobservableparametersNone.
6.Continuousfairvaluemeasurementitems,ifconversionsbetweenvariouslevelsoccurredduringthecurrentperiod,thereasonsfortheconversionsandthepoliciesfordeterminingthetimingoftheconversionpoint.None.
7.ChangesinvaluationtechniquesthatoccurredduringtheperiodandthereasonsforthechangesNone.
8.ThefairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueNone.
9.OthersNone.SectionXII.RelatedPartyRelationshipsandTransactions
1.ParentcompanyoftheCompany
NameoftheParent
Company
| NameoftheParentCompany | Placeofregistration | Natureofbusiness | Registeredcapital | Theparentcompany’sshareholdingratiointheCompany | PercentageofvotingrightsoftheparentcompanytotheCompany |
ExplanationoftheparentcompanyTheCompanyisultimatelycontrolledbyLiYongxinandLuZhongfang.Otherexplanation:
TheCompanyisultimatelycontrolledbyLiYongxinandLuZhongfang.AsofDecember31,2020,thecombinedshareholdingofLiYongxinandLuZhongfangaccountedfor61.01%oftheCompany’ssharecapital.
2.SubsidiariesoftheCompanyThedetailsofthesubsidiariesofthecompanyaredetailedinNoteIX(1)“Interestinsubsidiaries”.
3.JointventuresandassociatesoftheCompanyTheimportantjointventuresorassociatesoftheCompanyaredetailedinthenotes.TheinformationofotherjointventuresorassociatesthathaverelatedpartytransactionswiththeCompanyinthecurrentperiodorthathaverelatedpartytransactionswiththeCompanyinthepreviousperiodtoformabalanceisasfollows:
| Nameofjointventuresorassociates | RelationshipwiththeCompany |
Otherexplanation:
None
4.OtherrelatedpartiesoftheCompany
| Otherrelatedpartynames | RelationshipbetweenotherrelatedpartiesandtheCompany |
| LiYongxin | Thecontrollingshareholder |
| BeijingQianqiuIntelligenceBook&MediaCo.,Ltd. | Actualcontroller |
BeijingHaidianOffcnTrainingSchool
| BeijingHaidianOffcnTrainingSchool | Actualcontroller |
| JinanOffcnTrainingSchool | Actualcontroller |
| KunmingWuhuaOffcnTrainingSchool | Actualcontroller |
| BaodingLianchiOffcnTrainingSchool | Actualcontroller |
| BeijingHaidianBaoquanFinancialTrainingCentre | Actualcontroller |
| CangzhouYunheOffcnTrainingSchool | Actualcontroller |
| ChengduWuhouOffcnTrainingSchool | Actualcontroller |
| CifengHongshanOffcnTrainingCentre | Actualcontroller |
| DezhouOffcnTrainingSchool | Actualcontroller |
| HaikouMeilanOffcnTrainingSchool | Actualcontroller |
| HandanCongtaiOffcnTrainingSchool | Actualcontroller |
| HegangOffcnTrainingSchool | Actualcontroller |
| HeiheAihuiOffcnTrainingSchool | Actualcontroller |
| KiamuszeOffcnTrainingSchool | Actualcontroller |
| LeshanShizhongOffcnTrainingSchool | Actualcontroller |
| MudanjiangOffcnTrainingSchool | Actualcontroller |
| QiqiharTiefengOffcnTrainingSchool | Actualcontroller |
| ShaoyangShuangqingOffcnTrainingSchool | Actualcontroller |
| TangshanLunanOffcnTrainingSchool | Actualcontroller |
| WeifangOffcnTrainingSchool | Actualcontroller |
| UrumqiShayibakeOffcnTrainingSchool | Actualcontroller |
| YiyangHeshanOffcnTrainingSchool | Actualcontroller |
| ShenyangLijingPearlHotelManagementCo.,Ltd. | Acompanycontrolledbyourexecutivesandcoreemployees |
| BeijingTaifuHotelManagementCo.,Ltd. | Acompanycontrolledbyourexecutivesandcoreemployees |
| BeijingXingshouFuyuanPlantation | Thecompanycontrolledbythecompany'scontrollingshareholderandactualcontrollerLiYongxin'sspouseXuHua |
| WangZhendong | Thecompany’sdirector/seniormanager/shareholderwhodirectlyholdmorethan5%(including5%)oftheCompany’sshares |
| ShiLei | Directorofthecompany |
| YiZiting | Directorofthecompany |
| WangQiang | Independentdirectorofthecompany |
| TongYan | Independentdirectorofthecompany |
| ZhangXuanming | Independentdirectorofthecompany |
| YuHongwei | SupervisoroftheCompany |
LiWen
| LiWen | SupervisoroftheCompany |
| HeDi | SupervisoroftheCompany |
| WangXuejun | SeniormanagementoftheCompany |
| HeYouli | SeniormanagementoftheCompany |
| ZhangYongsheng | FormerseniormanagementoftheCompany |
| GuiHongzhi | SeniormanagementoftheCompany |
| LuoXue | SeniormanagementoftheCompany |
| LiLin | Thecompany'scoretechnicalstaff |
| LiuYan | Thecompany'scoretechnicalstaff |
| ZhangHongjun | Thecompany'scoretechnicalstaff |
Otherstatements:
None
5.Related-partytransaction
(1)Relatedtransactionsforpurchaseandsaleofgoods,provisionandreceiptoflaborservicesTableoftheprocurementofgoods/acceptanceoflaborservices
Unit:RMB
| Relatedparties | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Transactionamountgranted | Whetheritexceedsthetransactionlimit(Y/N) | Amountforthepreviousperiod |
| BeijingTaifuHotelManagementCo.,Ltd. | Accommodationandcateringservices | 20,569,200.00 | 40,000,000.00 | N | 23,189,480.00 |
| BeijingHaidianOffcnTrainingSchool | Jointschoolrunning | 1,032,000.00 | 1,050,000.00 | N | 73,786.40 |
| UrumqiShayibakeOffcnTrainingSchool | Jointschoolrunning | 504,000.00 | 580,000.00 | N | 58,252.43 |
| ChengduWuhouOffcnTrainingSchool | Jointschoolrunning | 236,000.00 | 260,000.00 | N | 48,543.69 |
| LeshanShizhongOffcnTrainingSchool | Jointschoolrunning | 165,000.00 | 170,000.00 | N | 44,660.20 |
| ShaoyangShuangqingOffcnTrainingSchool | Jointschoolrunning | 124,600.00 | 150,000.00 | N | 97,087.36 |
| QiqiharTiefengOffcnTrainingSchool | Jointschoolrunning | 121,800.00 | 150,000.00 | N | 75,728.16 |
| TangshanLunanOffcnTrainingSchool | Jointschoolrunning | 115,000.00 | 150,000.00 | N | 514,563.11 |
CangzhouYunheOffcnTrainingSchool
| CangzhouYunheOffcnTrainingSchool | Jointschoolrunning | 105,000.00 | 150,000.00 | N | 222,592.25 |
| HandanCongtaiOffcnTrainingSchool | Jointschoolrunning | 100,000.00 | 150,000.00 | N | 48,543.69 |
| YiyangHeshanOffcnTrainingSchool | Jointschoolrunning | 96,000.00 | 100,000.00 | N | 73,786.40 |
| BaodingLianchiOffcnTrainingSchool | Jointschoolrunning | 90,000.00 | 100,000.00 | N | |
| HeiheAihuiOffcnTrainingSchool | Jointschoolrunning | 84,998.00 | 100,000.00 | N | 53,398.06 |
| WeifangOffcnTrainingSchool | Jointschoolrunning | 71,100.00 | 80,000.00 | N | 456,310.67 |
| MudanjiangOffcnTrainingSchool | Jointschoolrunning | 62,800.00 | 80,000.00 | N | 126,213.59 |
| JiamusiOffcnTrainingSchool | Jointschoolrunning | 60,500.00 | 80,000.00 | N | 218,446.62 |
| BeijingHaidianBaoquanFinancialTrainingCentre | Jointschoolrunning | 60,000.00 | 70,000.00 | 150,485.44 | |
| ChifengHongshanOffcnTrainingSchool | Jointschoolrunning | 47,000.00 | 60,000.00 | N | 473,378.94 |
| DezhouOffcnTrainingSchool | Jointschoolrunning | 11,718.00 | 20,000.00 | N | 77,669.91 |
| HaikouMeilanOffcnTrainingSchool | Jointschoolrunning | 82,524.29 | |||
| HegangOffcnTrainingSchool | Jointschoolrunning | 62,135.92 |
Tableofsalesofgoods/provisionofservices
Unit:RMB
| Relatedparties | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Amountforthepreviousperiod |
| BeijingQianqiuIntelligenceBook&MediaCo.,Ltd. | Exhibitionservices | 2,871,698.11 | 2,499,999.93 |
Statementsfortheprocurementandsalesofgoodsandrenderingandreceivingservice:
None.
(2)Relatedfiduciarymanagement/contractingandentrustedmanagement/outsourcing
Thecompany'sentrustedmanagement/contractingsituationtable:
Unit:RMB
Trustee/OutsourcerName
| Trustee/OutsourcerName | Trustee/ContractorName | Type | Entrustment/contractingstartdate | Entrustment/ContractTerminationDate | Custodyincome/contractingincomepricingbasis | Annuallyrecognizedcustodyincome/contractingincome |
| LiYongxin | OffcnLtd. | 33privateschools | November19,2018 | Allreasonablereturnsontheentrustedassets | 226,415.09 | |
| Total | 226,415.09 |
Explanationsforrelatedentrustmentandcontracting:
None.TheCompany’sentrustedmanagementandoutsourcingtable
Unit:RMB
| Trustee/OutsourcerName | Trustee/ContractorName | Type | Entrustment/outsourcingstartdate | Entrustment/outsourcingTerminationDate | Custodyincome/outsourcingincomepricingbasis | Annuallyrecognizedcustodyincome/outsourcingincome |
StatementsforrelatedmanagementandoutsourcingNone.
(3)RelatedleaseTheCompanyasthelessor:
Unit:RMB
| Nameoflessee | Category | Rentalincomerecognizedforthecurrentperiod | Rentalincomerecognizedforthepreviousperiod |
TheCompanyasthelessee:
Unit:RMB
| Nameoflessor | Category | Rentalfeerecognizedinthecurrentperiod | Rentalfeerecognizedinthepreviousperiod |
| ShenyangLijingPearlHotelManagementCo.,Ltd. | Operatinglease | 18,175,675.00 | 23,836,000.00 |
| BeijingXingshouFuyuanPlantation | Operatinglease | 500,000.00 | |
| Total | 18,175,675.00 | 24,336,000.00 |
Statementsofrelatedlease
None.
(4)RelatedpartyguaranteesTheCompanyactastheguarantor
Unit:RMB
Guaranteedparty
| Guaranteedparty | Guaranteeamount | Guaranteestartdate | Guaranteeexpirationdate | Whethertheguaranteehasbeenfulfilled |
TheCompanyactastheguaranteedparty
Unit:RMB
| Guarantor | Guaranteeamount | Guaranteestartdate | Guaranteeexpirationdate | Whethertheguaranteehasbeenfulfilled |
| LiYongxin | 360,000,000.00 | January9,2019 | January9,2020 | Yes |
Explanationsofrelatedguarantees:
OnJanuary9,2019,OffcnLtd.signedaloancontractofRMB360,000,000.00withBeijingSidaokouSub-branchofHuaxiaBankCo.,Ltd.,withthecontractnumberYYB7610120180014,andtheloanperiodwasfromJanuary9,2019toJanuary9,2020.TheloanwassettledonJanuary9,2020.
(5)Borrowingoffundsfromrelatedparties
Unit:RMB
| Relatedparty | Amount | Startdate | Expirationdate | Description |
| Borrowing | ||||
| Lending | ||||
(6)Relatedpartyassetstransferanddebtrestructuring
Unit:RMB
| Relatedparty | related-partytransactioncontent | Amountforthecurrentperiod | Amountforthepriorperiod |
(7)Remunerationforkeymanagementpersonnel
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Remunerationforkeymanagementpersonnel | 14,922,629.18 | 15,130,286.14 |
(8)OtherrelatedtransactionsNone.
6.RelatedpartyReceivablesandpayable
(1)Accountsreceivables
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | ||
| Otherreceivables | ShenyangLijingPearlHotelManagementCo.,Ltd. | 5,675,200.00 | 5,675,200.00 | ||
| Total | 5,675,200.00 | 5,675,200.00 | |||
(2)AccountsPayable
Unit:RMB
| Item | Relatedparty | ClosingCarryingamount | OpeningCarryingamount |
7.RelatedpartycommitmentsFordetailsofthecommitmentsofrelatedparties,pleaserefertoNoteXIV(1)“Importantcommitments”.
无
8.OthersNone.SectionXIII.Share-basedpayment
1.Overviewofshare-basedpayment
√Applicable□Notapplicable
Unit:RMB
| TotalequityinstrumentsgrantedbytheCompanyinthecurrentperiod | 269,000,000.00 |
| TotalequityinstrumentsexercisedbytheCompanyinthecurrentperiod | 0.00 |
| TotalequityinstrumentsinvalidatedbytheCompanyinthecurrentperiod | 0.00 |
Otherstatements
OnMay22,2015,BeijingOffcnLtd.heldashareholders’meetingandagreedthatLuZhongfang,theactualcontrollerofBeijingOffcnLtd.,wouldtransferRMB700,000.00ofcapitalcontributiontotheshareholder,WangZhendong(generalmanagerandlegalrepresentativeofBeijingOffcnLtd.)atthepriceofRMB700,000.00.ShareholdersLiuBin,ZhangYongshengandGuoShihongrespectivelytransferredRMB100,000.00ofcapitalcontributionheldbythemtotheshareholderWangZhendongatthepriceofRMB100,000.00.
OnAugust11,2015,accordingtotheCompany’sshareholders’committeeresolution,theCompanyregisteredcapitalwasincreasedfromRMB10,000,000.00toRMB11,111,111.11,andthenewly-addedregisteredcapitalofRMB1,111,111.11shallbecontributedbyBeijingAerospaceIndustryInvestmentFund(limitedpartnership),BeijingGuangyinVentureCapitalInvestmentCenter(limitedpartnership)andBeijingJiruiTechnologyInnovationInvestmentCenter(limitedpartnership)inatotallyRMB300,000,000.00,withthecorrespondingconsiderationatRMB270pershare.
FromMaytoAugust2015,theCompany’sbusinessmodelandbusinessdidnotchangesignificantly,sotheinvestmentpriceofRMB270pershareofBeijingaerospaceindustryinvestmentfund(limitedpartnership),BeijingGuangyinVentureCapitalInvestmentCenter(limitedpartnership)andBeijingJiruiTechnologyInnovationInvestmentCenter(limitedpartnership)canberegardedasthefairvalueofthemarket.
Accordingtotherelevantprovisionsoftheaccountingstandardsforenterprises,theadministrativeexpensesatRMB26,900,000.00,RMB53,800,000.00,RMB53,800,000.00,RMB53,800,000.00,RMB53,800,000.00andRMB26,900,000.00arerespectivelyrecognizedaccordingtothelimitationyearsofequityincentiveof2015,2016,2017,2018,2019and2020.TheadministrativeexpensesofRMB269,000,000.00areaccumulativelyrecognizedandthecapitalreserveofRMB269,000,000.00areincreasedcorrespondingly.
2.Equity-settledsharepayments
√Applicable□Notapplicable
Unit:RMB
Determinationofthefairvalueofequityinstrumentsonthegrantdate
| Determinationofthefairvalueofequityinstrumentsonthegrantdate | Basedonthelatestissueofnewshares,itisdeterminedtobeRMB270pershare. |
| Basisfordeterminingthenumberofvestedequityinstruments | Estimatethenumberofrestrictedstocksthatcanbeunlockedbasedontheturnoverrate |
| Reasonsforsignificantdifferencesbetweenthecurrentperiod’sestimatesandthepreviousperiod’sestimates | None |
| Accumulatedamountofequity-settledshare-basedpaymentsincludedincapitalreserve | 269,000,000.00 |
| Totalexpensesrecognizedforequity-settledshare-basedpaymentsinthecurrentperiod | 26,900,000.00 |
Otherstatement
Equity-settledshare-basedpayments:Thegrantdateoftheequityincentiveplanwasaftertheshareholders’meetingreviewedandapprovedtheincentiveplan(May22,2015),theincentivecontracttransfersharestoWang
Zhendong,andpubliclimitedcompletestheindustrialandcommercialregistrationofchangeinthedate(23July2015),whichisthefinishedawardedequitygrant.TheequityincentiverequiresWangZhendongtocommittoworkinginthecompanyforacontinuousperiodoffiveyearsfromthedateofthegrant.IfWangZhendongtransfershislimitedshareinOffcnLtdLimitedwithinfiveyears,itshallbetransferredtoLuzhongfangandthepersondesignatedbyLuZhongfang.ThepriceofWangZhendong'sresignationortransferofhislimitedsharesinOffcnLtdLimitedduringtheaboveperiodshallbebasedontheoriginalcostofWangZhendong'sacquisitionofthelimitedsharesinOffcnLtdLimited,plustheinterestrateof6%peryear,excludingalldividendsaccumulatedovertheyears(calculatedastheamountexcludingtax).Priortothereleaseoftherestriction,WangZhendongshallnothavetherighttovoteordisposeofthecompany'ssharesindirectlyheldbyhim(includingtherighttomortgage,pledgeandtransfer).Ifitsvotingrightisirrevocable,itshallentrustOffcnLtdLimitedtoexerciseit;ThepartofthedividendinitsincomeshallbepaidbyOffcnLtdLimitedtoWangZhendongattheappropriatetime.AfterthemajorassetrestructuringoftheCompany,allshareholdersofOffcnLtd.becameshareholdersoftheCompany,andWangZhendongalsobecametheshareholderoftheCompany.Therefore,WangZhendong,LuZhongfangandOffcnLtd.Signedthesupplementaryagreementaftercompletionofthereorganization,agreeingthatafterthecompletionofthetransactionWangZhendongwouldbecomeashareholderoftheCompany.InthenextfiveyearsstartingfromJune1,2015,WangZhendongshouldcontinuetoservetheOffcnLtd.,andshouldnotresign,nortransferanysharesoftheCompanytootherparties.IfWangZhendongresignsfromtheCompanyduringthatperiod,heshallpayatotalofRMB269millionasthepricedifferencearisingfromequitytransfertoLuZhongfang,LiuBin,ZhangYongshengandGuoShihong.AsofDecember31,2020,thesharepaymenthasbeenexercised.
3.Share-basedpaymentthroughcashsettlements
□Applicable√Notapplicable
4.Modificationandterminationofshare-basedpaymentNone
5.OthersNoneSectionXIV.Commitmentsandcontingencies
1.ImportantcommitmentsImportantcommitmentsonbalancesheetdateAccordingtothecompanyand8naturalpersonshareholders(LuZhongfang,LoYongxin,WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhian)on4May2018,ProfitForecastandCompensationAgreement,signedcompensationobligorconfirmedandpromisedafterthecompletionofexecutionofthematerialassetsreorganization,theOffcnLtdLimited2018,2019and2020annualconsolidatedscopeafterdeductingnon-recurringgainsandlossesofthenumberofnetprofitattributabletoparentcompanyownerswerenotlessthanRMB930million,RMB1.3billion,andRMB1.65billion.Ifconfirmedbythecertified
publicaccountantsaudit,OffcnLtdwithinthethreefiscalyearsasoftheactualnetprofitofthefinalcumulativenumberofthecurrentperiodfailedtoachievecompensationbythecurrentfinalcumulativecommitmentnetprofitforthetaxpayer'scommitment,shouldbytheobligortocompensationaccordingtothetransactionbeforetheholdingofOffcnLtdLimitednumberofsharesofallcompensationobligorinthistransactionbeforethePercentageoftotalsharesheldinOffcnLtdLimitedobligationofcompensation.Allthecompensationagentsshallhavetheprioritytocompensatebyshares.Whenthetotalamountofthecompensationforsharesreaches
90.00%ofthetotalnumberofsharesissuedbythepurchaseassetsoftheissuedshares,allthecompensationagentsshallcompensatebycash.
2.Contingencies
(1)ImportantcontingenciesonbalancesheetdateNone
(2)WhethertheCompanyhasimportantcontingenciesthatneedtobedisclosed,andtheexplanationsareneeded:
TheCompanyhasnoimportantcontingenciesthatneedtobedisclosed.
3.OthersNone.SectionXV.Eventsafterbalancesheetdate
1.Significantnon-adjustingevents
Unit:RMB
Item
| Item | Content | Impactsonthefinancialstatusandoperatingresults | Causeoffailureinmeasuringimpacts |
2.Profitdistribution
Unit:RMB
| Profitsordividendstobedistributed |
| Profitsordividendsdeclaredafterdeliberationandapproval |
3.SalesreturnNone
4.OthereventsafterbalancesheetdateNone
SectionXVI.Othersignificantevents
1.Correctionsofaccountingerrorsofpreviousperiod
(1)Retrospectiverestatement
Unit:RMB
| Correctionsofaccounting | Processing | statementsitemoftheaffected | Accumulated |
errors
| errors | procedures | comparisonperiod | impact |
(2)Prospectiveapplication
| Correctionsofaccountingerrors | Approvalprocedure | Reasonsforadoptingprospectiveapplication |
2.DebtrestructuringNone
3.Assetsexchange
(1)Non-monetaryassetexchangeNone
(2)OtherassetsexchangeNone
4.AnnuityplanNone
5.Discontinuedoperations
Unit:RMB
| Item | Revenue | Expense | Totalprofit | Incometaxexpenses | Netprofit | Profitofdiscontinuedoperationsattributabletotheowneroftheparentcompany |
OtherstatementsNone
6.Segmentinformation
(1)Determinationbasisandaccountingpoliciesofreportablesegment
TheCompany’smainproductionandoperationactivitiesaredecidedbytheCompany,whichismainlyengagedineducationtrainingbusiness.Therefore,theCompanyismanagedasanoperatingsegment.Foraccountingpolicies,pleaserefertoNoteVofthisreport—TheCompany’sSignificantAccountingPoliciesandAccountingEstimates.
(2)Financialinformationofthereportablesegment
Unit:RMB
| Item | Inter-segmentoffset | Total |
(3)IftheCompanyhasnoreportingsegment,orcannotdisclosethetotalassetsandliabilitiesofeachsegment,thereasonsshallbeclarified.None
(4)Otherstatements
①Revenuefromexternaltransactionsforeachproductandserviceoreachsimilarproductandservice.
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Mainbusiness | 11,138,901,718.71 | 9,119,325,741.43 |
| Including:Educationandtraining | 11,138,901,718.71 | 9,119,325,741.43 |
Otherbusiness
| Otherbusiness | 63,592,576.33 | 56,804,254.46 |
| Total | 11,202,494,295.04 | 9,176,129,995.89 |
②Thetotalamountofforeigntransactionincomeobtainedbytheenterprisefromitsowncountryandfromothercountriesorregions.
| AreaName | Amountforthecurrentperiod | Amountforthepriorperiod |
| Domesticarea | 11,202,494,295.04 | 9,176,129,995.89 |
| Total | 11,202,494,295.04 | 9,176,129,995.89 |
③Theextentofdependentonitsmajorcustomers.
TheCompany'scustomersarerelativelyscattered,consistingofalargenumberofcustomers,andthereisnodependenceonmajorcustomers.
7.OtherimportanttransactionsandeventshavingimpactsondecisionsofinvestorsNone
8.OthersNone
SectionXVII.NotesOfMainItemsintheFinancialStatementsoftheParentCompany
1.Accountsreceivables
(1)Classifieddisclosureofreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||||||
| Bookbalance | Baddebtprovision | Bookvalue | Carryingamount | Baddebtprovision | Bookvalue | |||||
| Amount | Percentage | Amount | Percentageofprovision | Amount | Percentage | Amount | Percentageofprovision | |||
| Including | ||||||||||
| Accountsreceivableforwhichbaddebtprovisionhasbeenassessedbycredit | 15,570,863.56 | 100.00% | 778,543.18 | 5.00% | 14,792,320.38 | |||||
riskportfolios
| riskportfolios | |||||
| Including | |||||
| Combination3 | 15,570,863.56 | 100.00% | 778,543.18 | 5.00% | 14,792,320.38 |
| Total | 15,570,863.56 | 100.00% | 778,543.18 | 14,792,320.38 |
Baddebtsprovisiononasingleitembasis:
Unit:RMB
| Item | Closingbalance | |||
| Bookbalance | Baddebtprovision | Percentageofprovision | Reasons | |
Baddebtprovisionassessedbycreditriskportfolios:778,543.18
Unit:RMB
| Item | Closingbalance | ||
| Bookbalance | Baddebtprovision | Percentageofprovision | |
| Combination3 | 15,570,863.56 | 778,543.18 | 5.00% |
| Total | 15,570,863.56 | 778,543.18 | -- |
Explanationsforthedeterminingbasisoftheportfolios:
Baddebtprovisionassessedbycreditriskportfolios:
Unit:RMB
| Item | Closingbalance | ||
| Bookbalance | Baddebtprovision | Percentageofprovision | |
ExplanationsofthebasisfordeterminingtheportfoliosIfthebaddebtprovisionofaccountsreceivableisbasedonthegeneralmodelofexpectedcreditloss,pleaserefertothedisclosuremethodsofotherreceivablestodisclosetherelevantinformationofbaddebtprovision:
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Closingbalance |
| Within1year(inclusive) | 15,570,863.56 |
| Less:provisionforcreditimpairment | 778,543.18 |
| Total | 14,792,320.38 |
(2)Provision,recoveryorreversalofbaddebtsincurrentperiodProvisionofbaddebtsincurrentperiod:
Unit:RMB
Item
| Item | Openingbalance | Changesinthecurrentperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Written-off | Others | |||
| Provisionforbaddebtsofaccountsreceivable | 778,543.18 | 778,543.18 | ||||
| Total | 778,543.18 | 778,543.18 | ||||
Significantamountofprovision,recoveryorreversalofbaddebtsincurrentperiod:
Unit:RMB
| Nameofinstitutions | Amountofrecoveryorreversal | Recoverymethod |
(3)Receivableswritten-offincurrentperiod
Unit:RMB
| Item | Written-offamount |
Importantreceivableswritten-off:
Unit:RMB
| Creditor | Nature | Written-offamount | Reasonsforwritten-off | Implementedwritten-offprocedure | Whethergeneratedfromrelatedtransactions |
Statementofreceivableswritten-off:
None
(4)Accountsreceivablesofthetopfivedebtorsbasedontheendingbalance
Unit:RMB
| Creditor | Closingbalancereceivables | Percentageintotalclosingbalancereceivables | Closingbalanceofbaddebtprovision |
| YaxiaIndustrial | 15,570,863.56 | 100.00% | 778,543.18 |
| Total | 15,570,863.56 | 100.00% |
(5)Receivablesderecognizedduetothetransferoffinancialassets
(6)AssetsorliabilitiesarisingfromtransferringreceivablesandcontinuingtobeinvolvedNoneOtherstatements:
None
2.Otherreceivables
Unit:RMB
Item
| Item | Closingbalance | Openingbalance |
| Dividendsreceivables | 1,700,000,000.00 | |
| Otherreceivables | 621,900,443.29 | 17,949,520.99 |
| Total | 621,900,443.29 | 1,717,949,520.99 |
(1)Interestreceivables
1)Classificationofinterestreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance |
2)Importantoverdueinterest
| Borrower | Closingbalance | Time | Reason | Whetherimpairmentoccursandthejudgmentbasis |
Otherstatements:
None
3)Baddebtprovision
□Applicable√Notapplicable
(2)Dividendsreceivables
1)Classificationofdividendsreceivables
Unit:RMB
| Project(orinvestee) | Closingbalance | Openingbalance |
| OffcnLtd. | 1,700,000,000.00 | |
| Total | 1,700,000,000.00 |
2)Importantdividendreceivableover1year
Unit:RMB
| Project(orinvestee) | Closingbalance | Aging | Reasonofrecoveryfailure | Whetherimpairmentoccursandthejudgmentbasis |
3)Baddebtprovision
□Applicable√NotapplicableOtherstatements:
None
(3)Otherreceivables
1)Classificationofotherreceivablesbynature
Unit:RMB
Natureofpayment
| Natureofpayment | Closingbalance | Openingbalance |
| Currentpayment | 621,894,843.29 | 17,943,920.99 |
| Depositsandguarantees | 5,600.00 | 5,600.00 |
| Total | 621,900,443.29 | 17,949,520.99 |
3)Baddebtprovision
Unit:RMB
| Baddebtprovision | Firststage | Secondstage | Thirdstage | Total |
| Expectedcreditlossinthenext12months | Expectedcreditlossinthewholeduration(nocreditimpairment) | Expectedcreditlossinthewholeduration(creditimpairmenthasoccurred) | ||
| BalanceatJanuary1,2020 | —— | —— | —— | —— |
ChangesintheCarryingamountwithsignificantchangesinthelossprovisionforthecurrentperiod
□Applicable√NotapplicableDisclosurebyaging
Unit:RMB
| Aging | Closingbalance |
| Within1year(inclusive) | 603,950,922.30 |
| 1to2years | 17,949,520.99 |
| Less:provisionforcreditimpairment | |
| Total | 621,900,443.29 |
3)Provision,recoveryorreversalofbaddebtincurrentperiodBaddebtprovisionincurrentperiod:
Unit:RMB
| Item | Openingbalance | Changesinthecurrentperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Written-off | Others | |||
NoneImportantrecoveryorreversalofbaddebtprovisionincurrentperiod:
Unit:RMB
| Creditor | Amountofrecoveryorreversal | Recoverymethod |
None
4)Otherreceivableswrittenoffincurrentperiod
Unit:RMB
Item
| Item | Written-offamount |
Importantotherreceivableswritten-off:
Unit:RMB
| Creditor | Natureofotherreceivables | Written-offamount | ReasonforWritten-off | Implementedwritten-offprocedure | Whethergeneratedfromrelatedtransactions |
Statementsofotherreceivableswritten-off:
None
5)Otherreceivablesoftopfiveclosingbalancecollectedbydebtors
Unit:RMB
| Creditor | Natureofpayment | Closingbalance | Aging | Percentageoftotalotherreceivables(%) | Baddebtprovision |
| OffcnLtd. | Currentaccount | 602,959,000.00 | Within1year | 96.95% | |
| YaxiaAutomobileBozhouDriverTrainingSchool | Currentaccount | 10,112,883.52 | 1-2years | 1.63% | |
| YaxiaAutomobileWuhuYaweiServicesCo.,Ltd. | Currentaccount | 3,440,252.77 | 1-2years | 0.55% | |
| YaxiaAutomobileSuzhouBokaiServicesCo.,Ltd. | Currentaccount | 3,144,479.02 | 1-2years | 0.51% | |
| YaxiaAutomobileHuangshanFudiServicesCo.,Ltd. | Currentaccount | 1,947,595.41 | 1-2years | 0.31% | |
| Total | -- | 621,604,210.72 | -- | 99.95% |
6)Receivablesrelatedtogovernmentsubsidies
Unit:RMB
| Nameofinstitutions | Governmentsubsidies | Closingbalance | Closingaging | Time,amountandbasisofexpectedcollection |
None
7)OtherreceivablesderecognizedduetothetransferoffinancialassetsNone
8)AssetsandliabilitiesarisingfromtransferringotherreceivablesandcontinuingtobeinvolvedNoneOtherstatements:
None
3.Long-termequityinvestment
Unit:RMB
Item
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Investmentinsubsidiaries | 18,582,307,907.14 | 18,582,307,907.14 | 18,582,307,907.14 | 18,582,307,907.14 | ||
| Total | 18,582,307,907.14 | 18,582,307,907.14 | 18,582,307,907.14 | 18,582,307,907.14 | ||
(1)Investmentinsubsidiaries
Unit:RMB
| Investee | Openingbalance(Bookvalue) | Increaseanddecreaseincurrentperiod | Closingbalance(Bookvalue) | Closingbalanceofprovisionforimpairment | |||
| Additionalinvestment | Investmentreduction | Provisionforimpairment | Others | ||||
| OffcnLtd. | 18,500,000,000.00 | 18,500,000,000.00 | |||||
| YaxiaAutomobileWufuYaweiServicesCo.,Ltd. | 23,000,000.00 | 23,000,000.00 | |||||
| YaxiaAutomobileNingguoDriverTrainingSchool | 17,474,782.14 | 17,474,782.14 | |||||
| YaxiaAutomobileHuangshanFudi | 5,000,000.00 | 5,000,000.00 | |||||
ServicesCo.,Ltd.
| ServicesCo.,Ltd. | |||
| YaxiaAutomobileChaohuKaixuanServicesCo.,Ltd | 5,000,000.00 | 5,000,000.00 | |
| YaxiaAutomobileBozhouDriverTrainingSchoolCo.,Ltd. | 20,000,000.00 | 20,000,000.00 | |
| YaxiaAutomobileSuzhouBokaiServicesCo.,Ltd. | 11,833,125.00 | 11,833,125.00 | |
| Total | 18,582,307,907.14 | 18,582,307,907.14 |
（2）Investmentinassociatedenterprisesandjointventures
Unit:RMB
| Investor | Openingbalance(Bookvalue) | Increaseanddecreaseincurrentperiod | Closingbalance(Bookvalue) | Closingbalanceofprovisionforimpairment | |||||||
| Additionalinvestment | Investmentreduction | Investmentgainsandlossesrecognizedundertheequitymethod | OtherComprehensiveincomeadjustment | OtherEquitychanges | Declaredcashdividendsorprofits | Provisionforimpairment | Others | ||||
| 1.Jointventures | |||||||||||
| 2.Associatedenterprises | |||||||||||
(3)OtherstatementsNone
4.Revenueandcostofrevenue
Unit:RMB
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Revenue | Costofrevenue | Revenue | Costofrevenue | |
| Otherbusinesses | 14,829,393.86 | 11,336,628.27 | 14,647,786.07 | 11,332,163.09 |
| Total | 14,829,393.86 | 11,336,628.27 | 14,647,786.07 | 11,332,163.09 |
Incomerelatedinformation:
Unit:RMB
| ContractClassification | Segment1 | Segment2 | Total | |
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: | ||||
| Including: |
Obligationperformancerelatedinformation:
NoneInformationrelatedtothetransactionpriceallocatedtotheremainingperformanceobligations:
Theincomefromtheunfulfilledoruncompletedobligationwithsignedcontractsattheendofthereportingperiod:
RMB0.00.OtherstatementsNone
5.Investmentincome
Unit:RMB
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Incomefromlong-termequityinvestmentsundercostmethod | 1,700,000,000.00 | |
| Dividendincomefromholdingotherequityinstrumentinvestments | 249,600.00 | |
| Financingincome | 30,534.61 | |
| Total | 249,600.00 | 1,700,030,534.61 |
6.OthersNoneSectionXVIII.Supplementaryinformation
1.Detailsofcurrentnon-recurringgainsandlossesduringthereportingperiod
√Applicable□Notapplicable
Unit:RMB
Item
| Item | Amount | Statement |
| Profitsandlossesfromthedisposalofnon-currentassets | 162,043.59 | |
| Governmentsubsidiesincludedinthecurrentprofitandloss(exceptthegovernmentsubsidiescloselyrelatedtothebusinessoftheenterprise,andfixedorquantifiedinaccordancewithnationalunifiedstandards) | 20,128,697.09 | |
| Capitaloccupationfeeschargedtonon-financialenterprisesincludedinthecurrentprofitandloss | 13,192,187.13 | |
| Profitorlossfromentrustingotherstoinvestormanageassets | 180,223,310.57 | |
| InadditiontotheeffectivehedgingbusinessrelatedtotheCompany’snormalbusinessoperations,gainsandlossesfromthechangesinthefairvalueoftheholdingoftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,andderivativefinancialliabilities,andtheinvestmentincomefromthedisposaloftransactionalfinancialassets,derivativefinancialassets,transactionalfinancialliabilities,derivativefinancialliabilitiesandotherdebtinvestments | 20,984,385.76 | |
| Custodyfeeincomefromentrustedoperations | 226,415.09 | |
| Non-operatingincomeandexpensesotherthantheabove | -629,138.85 | |
| Otherprofitandlossitemsinlinewiththedefinitionofnon-recurringprofitandloss | 280,283,117.41 | |
| Less：Amountimpactedbyincometax | 76,183,536.19 | |
| equityattributabletominority | 1,319,218.71 |
shareholders
| shareholders | ||
| Total | 437,068,262.89 | -- |
Providestatementsforclassifyingnon-recurringprofitandlossitemsdefinedorlistedintheExplanatoryAnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringProfitsandLosses,andforclassifyingnon-recurringprofitandlossitemslistedintheExplanatoryAnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringProfitsandLossesasrecurringprofitandlossitems.
□Applicable√Notapplicable
2.Returnonnetassetsandearningspershare
| Profitinthereportingperiod | Weightedaveragereturnonnetassets(%) | Earningspershare | |
| Basicearningspershare(RMB/share) | Dilutedearningspershare(RMB/share) | ||
| NetprofitattributabletoordinaryshareholdersoftheCompany | 66.15% | 0.37 | 0.37 |
| NetprofitattributabletoordinaryshareholdersoftheCompanyafterdeductingnon-recurringgainsandlosses | 53.61% | 0.30 | 0.30 |
3.DifferencesinaccountingdataunderDomesticandOverseasAccountingStandards
(1)DifferencesinnetprofitandnetassetsinfinancialreportsdisclosedinaccordancewithbothinternationalaccountingstandardsandChineseaccountingstandards
□Applicable√Notapplicable
(2)DifferencesinthefinancialreportofnetprofitsandnetassetsdisclosedbyOverseasAccountingStandardsandChinaAccountingStandards
□Applicable√Notapplicable
(3)Explanationofthedifferencesinaccountingdataunderdomesticandoverseasaccountingstandards.NamesofoverseasinstitutionsshallbeindicatedifdifferenceadjustmentsofdatafromoverseasauditinstitutionsareconductedNone
4.OthersNone
ChapterXIII.DocumentsAvailableforReference
I.Thefulltextof2020AnnualReportsignedbyWangZhendong,theCompany’slegalrepresentative.II.ThefinancialstatementsignedandsealedbythelegalrepresentativeoftheCompany,thepersoninchargeofaccountingworkandthepersoninchargeofaccountingdepartment(accountingsupervisor).III.Theoriginalauditreportwiththesealoftheaccountingfirmandthesignatureandsealofthecertifiedpublicaccountant.IV.TheoriginalcopiesofallthedocumentsoftheCompanywhichhavebeendisclosedinnewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringthereportingperiod.V.Theplacewheretheabove-mentioneddocumentsaremaintained:theofficeoftheCompany’sSecretaryoftheBoardofDirectors.