OFFCNEDUCATIONTECHNOLOGYCO.,LTD.
2021AnnualReport
StockCode:002607StockAbbr.:OFFCNEDU
April,2022
Chapter1ImportantInformation,TableofContentsandDefinitionsTheCompany’sBoardofDirectors,SupervisoryCommittee,directors,supervisors,andseniormanagementherebyguaranteethatthecontentsoftheannualreportaretrue,accurate,andcomplete,andthattherearenomisrepresentations,misleadingstatements,ormaterialomissions,andshallassumeindividualandjointlegalliabilities.WangZhendong,theCompany’slegalrepresentative,ShiLei,headinchargeofaccountingandLuoXue,headoftheaccountingdepartment(Accountingsupervisor),declarethattheywarrantthetruthfulness,accuracyandcompletenessofthefinancialreportintheannualreport.Alldirectorsattendedtheboardmeetingforreviewingthisreport.Theforward-lookingstatementsonfutureplansanddevelopmentstrategiesinvolvedinthisreportdonotconstituteasubstantialcommitmenttoinvestors.Investorsareadvisedtoinvestrationallyandpayattentiontothepotentialinvestmentrisks.ThepossiblerisksandcountermeasureshavebeendetailedinSectionXIForcastoftheCompany’sfuturedevelopment”ofChapter3ManagementDiscussionandAnalysisofthisreport.Investorsareadvisedtopayattentiontotherelevantcontents.OnDecember25,2021,theCompanywasfiledandinvestigatedbyChinaSecuritiesRegulatoryCommission(CSRC)onsuspicionoffailingtodiscloserelatedpartytransactioninformationandviolatingthelawsandregulationsofinformationdisclosure.OnApril27,2022,theCompanyandtherelevantpartiesreceivedtheofficialDecisionofAdministrativePenalty.TheAnhuiSecuritiesRegulatoryBureauoftheCSRCdecidedtogiveawarningtoandimposeafineontheCompanyandtherelevantparties,andordertheCompanyandtherelevantpartiestorectifythesituation.Specificinformationisstatedintheannouncement(No.2022-032)disclosedonCNINFO(www.cninfo.com.cn)andotherdesignatedmedia.TheCompanyplansnottodistributecashdividends,bonusshares,nortoincreasesharecapitalbyconvertingcapitalreserve.TheEnglishversionofthisreportisprovidedtogetherwiththeChineseversion.ShouldtherebeanyinconsistencybetweentheChineseversionandtheEnglishversion,theChineseversionshallprevail.
Contents
Chapter1ImportantInformation,TableofContentsandDefinitions ...... 1
Chapter2CorporateProfile&KeyFinancialIndicators ...... 5
Chapter3ManagementDiscussionandAnalysis ...... 10
Chapter4CorporateGovernance ...... 37
Chapter5Environmentalandsocialresponsibilities ...... 62
Chapter6SignificantEvents ...... 63
Chapter7ShareChangesandShareholders ...... 93
Chapter8PreferredShares ...... 101
Chapter9CorporateBonds ...... 102
Chapter10FinancialStatements ...... 103
DocumentsAvailableforReference
I.ThefinancialstatementsignedandsealedbythelegalrepresentativeoftheCompany,thepersoninchargeofaccountingworkandthepersoninchargeofaccountingdepartment(accountingsupervisor).II.Theoriginalcopyoftheauditreportsignedandsealedbytheauditorsandsealedbytheaccountingfirm.III.Thefulltextof2021AnnualReportsignedbyWangZhendong,theCompany’slegalrepresentative.IV.TheoriginalcopiesofallthedocumentsoftheCompanywhichhavebeendisclosedinnewspapersdesignatedbytheChinaSecuritiesRegulatoryCommissionduringthereportingperiod.V.Theplacewheretheabove-mentioneddocumentsaremaintained:theofficeoftheCompany’sSecretaryoftheBoardofDirectors.
Definitions
Term(s)
| Term(s) | Definition |
| ThelistedCompany,TheCompany,OffcnEdu | OffcnEducationTechnologyCo.,Ltd. |
| CSRC | ChinaSecuritiesRegulatoryCommission |
| CompanyLaw | CompanyLawofthePeople’sRepublicofChina |
| SecuritiesLaw | SecuritiesLawofthePeople’sRepublicofChina |
| ArticlesofCorporation | ArticlesofCorporationofOffcnEducationTechnologyCo.,Ltd. |
| Yuan,10thousandyuan,100millionyuan | RMByuan,RMB10thousandyuan,RMB100millionyuan |
| 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. |
| YaxiaIndustrial | AnhuiYaxiaIndustrialCo.,Ltd. |
Chapter2CorporateProfile&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 | ||
| ChangedRegisteredAddressoftheCompany(ifany) | / | ||
| 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 | 010-83433688 |
| Fax | 010-83433666 | 010-83433666 |
| ir@offcn.com | ir@offcn.com |
SectionIII.InformationdisclosureandlocationofAnnualReport
| Company’sDesignatedInformationDisclosureMedia | SecuritiesTimes,ShanghaiSecuritiesNewsandChinaSecurities |
Journal
| Journal | |
| 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,LiQiang |
SponsorinstitutionengagedbytheCompanytoperformcontinuoussupervisiondutiesduringthereportingperiod
□Applicable√NotapplicableFinancialadvisorengagedbytheCompanytoperformcontinuoussupervisiondutiesduringthereportingperiod
√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
DoestheCompanyneedtoadjustitsfinancialdataretrospectivelyorrestateitsaccountingdataofpreviousyear?
□Yes√No
| Year2021 | Year2020 | Increase/Decreaseoverthepreviousyear | Year2019 | |
| Operatingincome(RMByuan) | 6,911,723,331.79 | 11,202,494,295.04 | -38.30% | 9,176,129,995.89 |
| NetprofitattributabletoshareholdersofthelistedCompany(RMByuan) | -2,369,509,039.00 | 2,304,357,742.74 | -202.83% | 1,804,548,688.01 |
| Netprofitafterdeductingnon-recurringprofitsandlosses | -2,485,630,452.04 | 1,867,289,479.85 | -233.11% | 1,700,369,663.16 |
attributabletoshareholdersofthelistedCompany(RMByuan)
| attributabletoshareholdersofthelistedCompany(RMByuan) | ||||
| Netcashflowfromoperatingactivities(RMByuan) | -4,097,961,548.90 | 4,882,469,101.91 | -183.93% | 2,473,986,085.19 |
| Basicearningspershare(RMByuan/share) | -0.38 | 0.37 | -202.70% | 0.29 |
| Dilutedearningspershare(RMByuan/share) | -0.38 | 0.37 | -202.70% | 0.29 |
| Weightedaveragereturnonnetassets | -76.88% | 66.15% | -143.03% | 60.71% |
| YearEnd2021 | YearEnd2020 | Increase/DecreaseOverPreviousYearEnd | YearEnd2019 | |
| Totalassets(RMByuan) | 10,305,183,525.70 | 14,418,850,027.27 | -28.53% | 9,960,705,427.94 |
| NetassetsattributabletoshareholdersofthelistedCompany(RMByuan) | 1,888,818,754.20 | 4,275,127,793.20 | -55.82% | 3,431,545,903.82 |
ThelowerofthenetprofitoftheCompanybeforeandafterdeductionofnon-recurringprofitsandlossesforthemostrecentthreefinancialyearsisnegative,andtheauditreportofthemostrecentyearshowsthatthereareuncertaintiesontheCompany’sabilitytocontinueoperations
□Yes√NoThelowerofthenetprofitbeforeandafterdeductionofnon-recurringprofitsandlossesisnegative
√Yes□No
| Item | Year2021 | Year2020 | Note |
| Operatingincome(RMByuan) | 6,911,723,331.79 | 11,202,494,295.04 | None |
| Deductionfromoperatingincome(RMByuan) | 51,440,960.49 | 63,592,576.33 | Inthisreportingperiod,thedeductionsofoperatingincomeinclude:DeductionofhotelincomeRMB28,379,224.72;DeductionofhouseleasingincomeRMB19,285,714.29;DeductionofexhibitionincomeRMB3,364,150.85;DeductionofcustodyincomeRMB226,415.10;DeductionofotherincomeRMB185,455.53. |
| Operatingincomeafterdeduction(RMByuan) | 6,860,282,371.30 | 11,138,901,718.71 | Inthisreportingperiod,thedeductionofoperatingincomeincludes:DeductionofhotelincomeRMB28,379,224.72;DeductionofhouseleasingincomeRMB19,285,714.29;DeductionofexhibitionincomeRMB3,364,150.85;DeductionofcustodyincomeRMB226,415.10;DeductionofotherincomeRMB185,455.53. |
SectionVII.Differencesinaccountingdataunderdomesticandoverseasaccountingstandards
1.DifferencesbetweennetprofitsandnetassetsdisclosedinthefinancialreportsinaccordancewithChineseaccountingstandardsandinternationalaccountingstandards
□Applicable√NotapplicableThereisnodifferencebetweenthenetprofitsandnetassetsdisclosedinaccordancewithChineseaccountingstandardsandthosedisclosedinaccordancewithinternationalaccountingstandardsinthereportingperiod.
2.DifferencesbetweennetprofitsandnetassetsdisclosedinthefinancialreportsinaccordancewithChineseaccountingstandardsandoverseasaccountingstandards□Applicable√NotapplicableThereisnodifferencebetweenthenetprofitsandnetassetsdisclosedinaccordancewithChineseaccountingstandardsandthosedisclosedinaccordancewithoverseasaccountingstandardsinthereportingperiod.SectionVIII.QuarterlyKeyFinancialIndicators
Unit:RMB
TheFirstQuarter
| TheFirstQuarter | TheSecondQuarter | TheThirdQuarter | TheFourthQuarter | |
| Operatingincome | 2,051,691,383.47 | 2,804,306,880.03 | 1,445,195,855.92 | 610,529,212.37 |
| NetprofitattributabletoshareholdersofthelistedCompany | 140,729,639.84 | -237,892,148.87 | -793,735,635.02 | -1,478,610,894.95 |
| Netprofitafterdeductingnon-recurringprofitsandlossesattributabletoshareholdersofthelistedCompany | 92,213,329.43 | -262,118,353.21 | -798,108,362.10 | -1,517,617,066.16 |
| Netcashflowfromoperatingactivities | -246,724,873.67 | -692,366,584.28 | -2,706,728,725.77 | -452,141,365.18 |
DotheabovefinancialindicatorsortheirtotaldiffersignificantlyfromthosestatedintheCompany’sdisclosedquarterlyandsemi-annualreports?
□Yes√No
SectionIX.Non-RecurringProfitsandLosses
√Applicable□Notapplicable
Unit:RMB
| Item | Year2021 | Year2020 | Year2019 | Note |
| Profitsorlossesondisposalofnon-currentassets(includingoffsettingamountfortheprovisionof | -136,455.49 | 162,043.59 | 182,904.69 |
impairmentofassets)
| impairmentofassets) | ||||
| Governmentgrantsincludedincurrentprofitorloss(exceptthosecloselyrelatedtotheCompany'snormalbusinessoperations,whichareinaccordancewithnationalpoliciesandcontinuouslyenjoyedinaccordancewithcertainstandardsorquotas) | 27,496,339.83 | 20,128,697.09 | 472,098.91 | |
| Capitaloccupationfeeschargedtonon-financialenterprisesincludedincurrentprofitandloss | 13,192,187.13 | |||
| Profitorlossfromentrustingotherstoinvestormanageassets | 56,955,660.58 | 180,223,310.57 | 184,130,073.02 | |
| ExcepttheeffectivehedgingbusinessrelatedtotheCompany’snormalbusinessoperations,profitsorlossesonchangesinfairvaluearisingfromthepossessionoftransactionalfinancialassetsandtransactionalfinancialliabilities;andtheinvestmentincomefromthedisposaloftransactionalfinancialassets,transactionalfinancialliabilitiesandfinancialassetsavailableforsale | -21,490,322.52 | 20,984,385.76 | 1,712,787.50 | |
| Custodyincomefromentrustedoperations | 226,415.10 | 226,415.09 | 411,320.75 | |
| Othernon-operatingincomeandexpensesexceptfortheitemsabove | 16,837,313.42 | -629,138.85 | -1,341,412.25 | |
| Otherprofitorlossitemsthatmeetthedefinitionofnon-recurringprofitsandlosses | 60,675,060.38 | 280,283,117.41 | -53,800,000.00 | |
| Less:Impactonincometax | 24,442,598.26 | 76,183,536.19 | 27,588,747.77 | |
| Impactonminorityshareholders’equity(aftertax) | 1,319,218.71 | |||
| Total | 116,121,413.04 | 437,068,262.89 | 104,179,024.85 | -- |
Detailsofotherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitsorlosses.
√Applicable□NotapplicableRMB60,293,558.79ofVATexemptedinaccordancewiththeAnnouncementonTaxPoliciesRelatedtoSupportingthePreventionandControlofPneumoniaOutbreaksofCovid-19(AnnouncementNo.8[2020]oftheMinistryofFinanceandStateTaxationAdministrationofThePeople'sRepublicofChina);RMB355,925.19ofinputtaxcreditsinaccordancewiththeAnnouncementonPoliciesRelatedtoDeepeningVATReform(AnnouncementNo.39[2019]oftheMinistryofFinance,StateTaxationAdministration,andGeneralAdministrationofCustomsofThePeople'sRepublicofChina);RMB25,576.40gainedfromremeasuringtheremainingequityatfairvalueafterthelossofcontrolofBeijingOffcnFutureEducationTechnologyCo.,Ltd..Provideexplanationsforclassifyingitemsofnon-recurringprofitsorlossesdefinedorlistedintheExplanatoryAnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringProfitsandLossesasitemsofrecurringprofitsorlosses.
□Applicable√NotapplicableTheCompanyhasnotclassifiednon-recurringprofitorlossitemsdefinedorlistedintheExplanatory
AnnouncementNo.1forInformationDisclosuresoftheCompanyIssuingSecuritiesPublicly—Non-recurringprofitsandlossesasrecurringprofitorlossitemsinthereportingperiod.
Chapter3ManagementDiscussionandAnalysisSectionI.TheindustrysituationoftheCompanyduringthereportingperiod
1.The“14thFive-YearPlan”requiresthatthequalityandcapacityofeducation,medicalcare,elderlycareandotherservicesbegreatlyimproved.Intermsofeducation,the“14thFive-YearPlan”requirestogreatlyimproveeducationequalityandquality;promotethepopularizationofhighereducation,createmorethan60millionnewjobsincitiesandtowns;build,renovateorexpand20,000kindergartenstoincreaseenrollmentsbyover4millionforordinaryfamilies;andbuild,renovateorexpandmorethan4,000primaryandsecondaryschools.Intermsofmedicalandhealthcare,itrequirestoexpanddiseasepreventionandcontrolbasesandbuildnationalandregionalmedicalcenters,andstrivetoupgrade500county-levelhospitalstomeetthefacilitiesandservicecapabilitiesoftop-tierhospitals.Intermsofelderlycareservice,500districtsandcountieswillbesupportedinbuildingamodelcommunityhomeelderlycareservicenetwork,about300trainingandconvalescentinstitutionswillbesupportedintransformationintoinclusiveelderlycareinstitutions,andmorenursingbedswillbeprovidedforabout1,000publicelderlycareinstitutions.Intermsofchildcareservice,150citieswillbesupportedtodevelopchildcareservicewithsocialresource,andmorethan500,000exemplaryinclusivechildcareenrollmentswillbeadded.Alloftheseinvestmentsmentionedabovewillstronglypromotethesustainablegrowthoftherecruitmentsectors,especiallytherecruitmentsectorsofteachers,medicalstaffandcommunityworkers.
2.Withmorepolicysupport,theoperationofimprovingvocationalskillsspeedsup.
Sincethe“14thFive-YearPlan”started,theneweconomiclayoutofpursuinghigh-qualitydevelopmenthasputforwardhigherdemandfortheupgradingandadjustmentofChina’sindustrialstructure.Industryboundariesareconstantlybroken,andknowledgeandskillsindifferentfieldsintersectwitheachotherincreasingly.Thedemandofallkindsofenterprisesforinter-disciplinary,innovativeandhighlyskilledtalentskeepsincreasing.
Intermsofindustrypolicies,inMay2019,theGeneralOfficeoftheStateCouncilissuedtheCourseofActionforVocationalSkillsImprovement(2019-2021),whichspecifiesthattheoperationofimprovingvocationalskillsisanimportantlivelihoodproject.Afterthat,relevantpolicieswereissuedoneafteranother:
InMarch2021,theOutlineofthePeople’sRepublicofChina14thFive-YearPlanforNationalEconomicandSocialDevelopmentandLong-RangeObjectivesfor2035issuedbytheGeneralOfficeofCentralCommitteeofCPCandtheGeneralOfficeofStateCouncilrequirestoimprovethelife-longskillstrainingsystemandcontinuetocarryoutvocationalskillstrainingonalargescale.TheOutlinealsorequirestocarryouttheactionforvocationalskillsimprovementandspecialtrainingplanforkeygroupsinadeeperlevel,extensivelycarryoutskillstrainingforemployeesfrombusinessofnewformsandnewmodelsandimprovethetrainingqualityeffectively.
InOctober2021,theOpinionsonPromotingtheHigh-qualityDevelopmentofModernVocationalEducationissuedbytheGeneralOfficeofCentralCommitteeofCPCandtheGeneralOfficeofStateCouncilsuggests
promotingtheconstructionofaskill-orientedsociety,improvingthesocialstatusoftechnicalandskilledtalents,andenhancingtheattractivenessandtrainingqualityofvocationaleducation,andmakesitclearthattheenrollmentofvocationalundergraduateeducationshouldn’tbelessthan10%oftheenrollmentofhighervocationaleducation.Listedcompaniesandleadingenterprisesintheindustryareencouragedtotaketheleadinprovidingvocationaleducation,andallkindsofenterprisesareencouragedtoparticipateandplayaroleinvocationaleducationlegally.InDecember2021,the“14thFive-YearPlan”VocationalSkillsTrainingPlanjointlyissuedbytheMinistryofHumanResourcesandSocialSecurity,theMinistryofEducation,theNationalDevelopmentandReformCommissionandtheMinistryofFinancespecifiesagainthatcarryingoutlarge-scaletrainingforvocationalskillsisanimportantmeasuretoimprovetheemploymentandentrepreneurialabilityoflaborers,alleviatestructuralemploymentcontradictionsandpromotetheexpansionofemployment,anditisalsoanessentialsupportforadvancingdevelopmentwithhighquality.
Thisyear’sgovernment’sworkreportalsosuggestscontinuingtocarryoutlarge-scaletrainingforvocationalskills,andjointlybuildingandsharingabatchofpublictrainingbases.100-billion-yuanunemploymentinsurancefundshouldbeusedforstabilizingemploymentandtraining,andacceleratingthetrainingofurgently-neededtalentsforthehigh-qualitydevelopmentofthemanufacturingindustrytomakemorelaborerspossessaprofessionalskillandmoretalentsemergeinallwalksoflife.
3.Mainindustrycharacteristicsandcyclicalcharacteristics
Theinstitutionsofvocationaleducationdistributevastlyalloverthecountry.Suchsituationliftsthebarrierstocompetitioninthisfield.Thedemandofvocationaleducationdistributesvastlyineveryprovinceandeverycity,especiallyintheprefecture-levelcitiesandthecounties.Almosteverycountyhasavocationalhighschool,andeveryprefecture-levelcityhasvocationalcolleges.Therecruitmentdemandforcivilservantsalsocomesinlargenumbersfromprefecture-levelcitiesandcounties.Thishasgivenrisetoalargenumberoflocalsmallandmedium-sizedtraininginstitutions,andprovidedlargeinstitutionswithawidespacetoexpandtheirchannelnetworks,whilemakingmanagementdifficultiesandbarrierstocompetitionsuddenlyhigher.
Thetrainingforcivilservantrecruitmenttestsisseasonal.Fortrainees,the1-2yearsbeforeoraftertheirgraduationarethekeyperiodtotaketrainingclassesfortherecruitmenttests.Thenationalcivilservanttesttakesplaceonceayear,andtheprovincialexaminationsforeachprovincebasicallytakeplaceonceayear,whilefewprovinceswillhaveanotherjointexaminationtorecruitcivilservantsinthesecondhalfyear.Andtherecruitmentofpublicinstitutionemployeesandteachersarecarriedoutaccordingtotheneedsoftheprovincesandcities,whicharedistributedineachmonththroughouttheyearuncertainly.Thedocumentsofrecruitmentplanareofagreatamount.
Thisseasonalfluctuationofrecruitmenthascausedmajorgrowthbottlenecksforsmallandmedium-sizedtraininginstitutionsandhasalsoprovidedlargeinstitutionswithcontinuousmotivationtoconstantlychallengethescaleboundary.Withtherapidincreaseinexaminationcategoriesandbusinesssectors,largeinstitutionswillincreasinglyenjoythebenefitsofscaleeffectsandobtainamoresoundresourceallocationstructure.Inrecentyears,themomentumofrecruitmentexaminationshasswitchedtonewareassuchaspublicinstitutions,teachersandcomprehensiverecruitment,bringingtherapidconcentrationofmarketshareintoleadingenterprises.
SectionII.TheCompany’smainbusinessduringthereportingperiod
OffcnEduisalarge-scalemulti-categoryvocationaleducationinstitution,anditisalsothepioneerandleaderinthefieldofpublicservicerecruitmentexaminationtraininginthecountry.TheCompanybravelyundertakesthemissionofthetimes,continuestocreatenewmarkets,andservesthesocietywithkindnessandaltruism.
OffcnEdumainlyservesknowledge-basedemploymentpopulationincludingcollegestudents,universitygraduates,andvariousprofessionals,aged18to45.Thishugegroupofhundredsofmillionsofpeopleisspreadthroughoutthecountry,citiesandtownsatalllevelsandinallwalksoflife.Employmentandvocationalabilityimprovementaretheirtwocoredemands.
Forhundredsofmillionsofknowledge-basedpeopleandbasedontheirtwocoredemands,theCompany’smainbusinesscoversthreemajorsectorsincludingtrainingforpublicservicerecruitmentexaminations,collegeandhighinstitutionenrollmentexaminationsandvocationalabilityenhancement,anditprovidesmorethan100categoriesofcomprehensivevocationaltrainingservice.TheCompanyhasmorethan1,500outletsacrossthecountry,coveringmorethan300prefecture-levelcities,andissteadilyexpandingintothousandsofcountiesanduniversities.
Afteralong-termexplorationandaccumulation,OffcnEduhasownedalarge-scalefull-timeR&Dteamofmorethan2,000people,alarge-scaleteachingteamofmorethan14,000teachers,andastaffofmorethan36,000people.Relyingonitsoutstandingteamexecutionandnationwideverticalintegratedfastresponsecapability,theCompanyhasdevelopedintoaninnovation-drivenenterpriseplatform.
SectionIII.AnalysisoftheCompany’scorecompetitiveness
TheCompany'scorecompetitivenessliesintheformationofanenterpriseplatformdrivenbythecapabilityofverticallyintegratedfastresponse.Thekeydrivingfactorsareasfollows:
1.ClusteredprofessionalR&DcontinuouslyoutputsmomentumforinnovationAtthebeginningofthecareer,theCompanytooktheleadincarryingoutfull-timeandprofessionalR&D,basedonwhichitcreatedabrand-newmarket.Overthepastdecade,theCompanyhasfosteredanexpertteamwithrichpracticalexperienceinR&DandR&Dmanagementthroughfront-lineteachingpracticeandadaptiontomarketupgrading.Underthejointleadofthefoundingteamandtheexpertteam,afull-timeR&Dteamofmorethan2,000peoplehasformed.Withtheexpansionofcategoriesandtheinvolvementofdifferentsectors,theCompany'sprofessionalR&Dnotonlyachievesthecontinuousdivisionoflaborunderthescaleeffect,butalsoconstantlycreatesR&Dclustereffectofcollaborationbetweencategories,whichgreatlyimprovestheefficiencyofR&D,especiallythegraftingefficiencyofusingstockR&Dresourcesinnewcategoriesandnewbusinesses.
2.VerticalintegratedfastresponsecapabilitysupportstheCompany’ssustainableoperationstructurallyandefficiently.Thehighoperationefficiencyfarbeyondthegeneralindustriesisanecessitytorealizescaleeconomyandestablishcompetitivebarrierinthedecentralizedmarket.Therefore,verticalintegratedfastresponsesystemandcapabilitycanbestadapttothiskindofmarketenvironment.Ineachexam,‘Businessoutlets—Headquarterscommandcenter—Teachingsites’aregivingresponsesandfeedbackwithhighfrequencyeveryday.Thus,managementandlearningeffectfarabovetheaveragecanberealized.
Verticalintegratedcorporatestructurecannotonlyrealizethehighefficiencyofoperation,butalsobeeffectivelycompatiblewiththemanagementimpactbroughtbyrapidbusinesscategoryexpansion.Soinvestment
inandinnovationonthiscorporatestructurehasalwaysbeenacentralpartofthemanagementreform.Atpresent,OffcnEduhasestablishedmorethan1,500businessoutletscovering300prefecture-levelcities.Simultaneously,theheadquarterscommandcentercontinuestoseekthescaleeffectofmanagementwiththehelpofmanagementreformanddigitaloperation.Inrecentyears,OffcnEduhasalsocontinuouslyinvestedintheconstructionoflarge-scaleone-stopbasesforfood,housingandlearningtopromotetherealizationoflarge-scalefactoryoperationontheteachingsites.
3.Digitaloperationformstheenterpriseplatformwith“real-timesituationalawareness”
Theteam’sexplorationfordigitaloperationhaslastedformorethan15years,andinrecentyears,theinvestmentscalefordigitaloperationinfrastructurehasincreasedsignificantly.Onereasonistomeetthemanagementneedsforrapidexpansionofcategories.Theotherreasonliesinthegreatadaptabilityofverticallyintegratedfastresponsesystemtothedigitization.Afterthesystemwasintegratedwiththedigitizationindepth,itgeneratedhigheroperatingefficiencyandsignificantlyimprovedtheforegroundandbackgroundresponsefrequencyfromunitsofdaystoalevelcloseto“real-timesituationalawareness”,whichenhancedtheCompany’scorecompetitivenessbasedonspeedeconomy.
4.ThevaluesofkindnessandaltruismallowtheCompanytomaintainstrongorganizationalcohesioninhighgrowth
Asaknowledgeablestaff-intensivevocationaleducationinstitution,theCompanyhasestablishedaconciseandeffectivecorporatecultureinthelongjourneyofarduousentrepreneurship,withthecorevalueof“BeKind&
DoRight”andadvocatingaltruism.Notonlyhasitbecomeacompanysystem,butalsothefoundingteamhastakentheleadtosetanexample,influencedthestafflevelbylevel,andunswervinglyimplementeditintheoperation,makingthevaluesofOffcnEduubiquitousandflourishingintheenterprise.ThisdistinctiveandtangiblecorporatecultureallowstheCompanytomaintainstrongorganizationalcohesion.
5.OffcnEdustrivestostrengthentheParty'sconstructiontopromotethehealthyandvigorousdevelopmentoftheCompany
FromtheestablishmentofthePartycommitteein2018tothefoundingofthefirstPartyschoolofnon-public-ownedenterprisein2019,thePartycommitteeofOffcnEduhasfullyutilizedtheCompany’sadvantagesofknowledge,theory,andtechnologyandactivelypromotesandimplementstheParty’spoliticalroutes,principles,andpoliciestoemployeesandstudents.Meanwhile,OffcnEdufocusesontheintegrationofthePartybuildingofnon-publicenterprisesandcorporateculturecultivationtopromotethehealthyandvigorousdevelopmentoftheenterprise.
AsofDecember31,2021,theCompanyhadmorethan7,000Partymembers,accountingformorethanone-fifthofthetotalnumberofemployees.SectionIV.Corebusinessanalysis
1.Overview
(1)Impactedbythepandemic,marketdemandhasshrunk,andtheperformanceoftheCompanyinthecurrentperiodhasappearedgreatfluctuation.
In2021,themarketofeducationandtraininghassufferedgreatfluctuations.Attheindustrylevel,impactedbythepandemicandeconomy,thephenomenaofcyclicalfluctuationsofexams,shrinkingmarketdemand,andstudents’weakeningwillingnesstoattendtrainingoccurintheindustryoftalentrecruitmenttraining.Theindustryshowsasignofoverallcontraction,whichchallengesthestabilityofcorporateoperations.IntermsoftheCompany,influencedbytheappearanceofsporadiccasesandclustercasesofCOVID-19insomeareas,theCompany’soutletsandlearningcentersinmorethan20provincesincludingHeilongjiang,Jiangsu,Shaanxi,Jilin,andHenanwereclosedperiodicallyandcouldn’toperatenormallyin2021.Inaddition,becausetheCompany’smanagementteamwastoooptimisticaboutthemarketsituationanddidn’tadjustthebusinessplantimely,thetuitionrefundsincreasedsharplyandthecostremainedhigh,resultinginasubstantialincreaseofrefundrateinyear2021comparedwithyear2020andagreatfluctuationintheCompany’scurrentperiodperformance.
Duringthecurrentreportingperiod,theCompanyachievedatotaloperatingincomeofRMB6.9117233billionyuan,a38.30%year-on-yeardecrease.NetprofitattributabletoshareholdersofthelistedCompanywas
RMB-2.369509billionyuan,adecreaseof202.83%overthesameperiodofthepreviousyear.Afterdeductingnon-recurringprofitsandlosses,netprofitattributabletotheparentcompany’sshareholderswasRMB-2.4856305billionyuan,adecreaseof233.11%onanannualbasis.Inthenextstage,theCompanywillactivelyrectifythesituationandlaunchthe2022businessboostplan.Themeasuresofoptimizinginteriorbyreducingcostandimprovingefficiency,adjustingstructuralproductandacceleratingnewbusinessdevelopmentwillbetakentoleadtheCompanybackontrackassoonaspossible.Thekeyoperatingresourcesandperformanceindicatorsduringthereportingperiodarestatedinthetablebelow:
Item
| Item | Indicators | Attheendofthereportingperiod | Attheendoflastyear | Theincreaseordecreaseattheendofthereportingperiodfromtheendofthepreviousyear |
| Operatingresources | Directly-operatedbranches | 1,508 | 1,669 | -9.65% |
| Employees | 36,143 | 45,066 | -19.80% | |
| R&Dpersonnel | 2,452 | 3,025 | -18.94% | |
| Teachers | 14,590 | 18,863 | -22.65% | |
| Item | Indicators | Attheendofthereportingperiod | Thesameperiodoflastyear | Theincreaseordecreaseinthereportingperiodfromthesameperiodofthepreviousyear |
| Businessandprofits | Revenueofface-to-facetraining(RMByuan) | 4,380,182,147.02 | 8,233,444,798.58 | -46.80% |
| Revenueofonlinetraining(RMByuan) | 2,480,100,224.28 | 2,905,456,920.13 | -14.64% | |
| Numberoftrainingparticipants | 3,849,035 | 4,494,348 | -14.36% | |
| Operatingincome(RMByuan) | 6,911,723,331.79 | 11,202,494,295.04 | -38.30% | |
| NetprofitsattributabletoshareholdersofthelistedCompany(RMByuan) | -2,369,509,039.00 | 2,304,357,742.74 | -202.83% |
(2)Newbusinesssectordevelopssteadilyandthereturnonupfrontinvestmentappears.
Allalong,theCompanyhasbeencontinuouslyinjectingintensiveresourcesintoactivenewbusinesses,especiallyforward-lookingstrategicinvestmentsinkeycategoriessuchasacademicbackgroundsupgrading,trainingformedicalqualifications,andITtraining.Withthecontinuousinvestmentsofresourcesandgrowingmaturityofthetalentpool,therevenueproportionoftrainingsectorforotherpublicserviceexamsandnewbusinessesisincreasinggradually.Duringthereportingperiod,thecomprehensivesectorachievedarevenueof
RMB1.669751billionyuan,whichmadeup24.16%ofthetotalrevenue,anincreasefromthe15.90%ofthesameperiodinthepreviousyear.
2.Revenueandcost
(1)Compositionofrevenue
Unit:RMByuan
2021
| 2021 | 2020 | Increase/Decreaseoverthepreviousyear | |||
| Amount | ProportionofRevenue | Amount | ProportionofRevenue | ||
| Revenue | 6,911,723,331.79 | 100% | 11,202,494,295.04 | 100% | -38.30% |
| Sectors | |||||
| Educationaltraining | 6,860,282,371.30 | 99.26% | 11,138,901,718.71 | 99.43% | -38.41% |
| Others | 51,440,960.49 | 0.74% | 63,592,576.33 | 0.57% | -19.11% |
| Categoriesofproduct | |||||
| TrainingforCivilServantTest | 3,368,861,256.89 | 48.74% | 6,289,564,053.54 | 56.14% | -46.44% |
| TrainingforPublicInstitutionTest | 1,019,282,962.72 | 14.75% | 1,273,504,970.82 | 11.37% | -19.96% |
| TrainingforTeachers’RecruitmentTest | 802,387,194.18 | 11.61% | 1,794,466,441.92 | 16.02% | -55.29% |
| Trainingforotherpublicservicestestandnewbusinesses | 1,669,750,957.51 | 24.16% | 1,781,366,252.43 | 15.90% | -6.27% |
| Others | 51,440,960.49 | 0.74% | 63,592,576.33 | 0.57% | -19.11% |
| Regions | |||||
| NortheastChina | 891,663,394.84 | 12.90% | 1,575,156,348.27 | 14.06% | -43.39% |
| NorthChina | 1,172,797,204.47 | 16.97% | 1,875,752,184.53 | 16.74% | -37.48% |
| EastChina | 1,687,969,176.80 | 24.42% | 2,654,580,800.73 | 23.70% | -36.41% |
| MiddleChina | 850,590,365.27 | 12.31% | 1,349,672,939.31 | 12.05% | -36.98% |
| SouthChina | 571,708,625.26 | 8.27% | 1,016,364,626.14 | 9.07% | -43.75% |
| SouthwestRegion | 907,397,421.66 | 13.13% | 1,403,667,569.50 | 12.53% | -35.36% |
| NorthwestChina | 778,156,183.00 | 11.26% | 1,263,707,250.23 | 11.28% | -38.42% |
| Others | 51,440,960.49 | 0.74% | 63,592,576.33 | 0.57% | -19.11% |
| Salesmodels | |||||
| Directsales | 6,911,723,331.79 | 100.00% | 11,202,494,295.04 | 100.00% | -38.30% |
(2)Particularsofsectors,products,regionsandsalesmodelsthataccountformorethan10%oftheoperatingrevenueorprofits
□Applicable√Notapplicable
(3)IstheCompany’sgoodssalesincomegreaterthanthatoflaborservices?
□Yes√No
(4)FulfillmentofsignificantsalescontractsandpurchasecontractssignedbytheCompanyasofthereportingperiod
□Applicable√Notapplicable
(5)CompositionofoperatingcostCategoriesofindustry
Unit:RMByuan
Industries
| Industries | Items | 2021 | 2020 | Year-on-yearIncrease/Decrease | ||
| Amount | Proportionofoperatingcosts | Amount | Proportionofoperatingcosts | |||
| Educationtraining | Costofoperation | 4,945,732,913.85 | 99.04% | 4,513,636,084.16 | 98.82% | 9.57% |
| Others | Costofoperation | 47,984,449.73 | 0.96% | 53,690,847.28 | 1.18% | -10.63% |
StatementsNone
(6)Didthescopeofconsolidationchangeduringthereportingperiod?
√Yes□No
| Fullnameofthesubsidiary | Proportionofshareholding(%) | Reasonforchanges |
| 1.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | 100 | Acquisition |
| 2.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | 100 | Acquisition |
| 3.WenlingOffcnInformationConsultingCo.,Ltd. | 100 | Newestablishment |
| 4.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 5.DiqingOffcnTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 6.DaliOffcnEducationTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 7.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 8.NujiangOffcnTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 9.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | 100 | Newestablishment |
| 10.BeijingOffcnCenturyEducationTechnologyCo.,Ltd. | 100 | Newestablishment |
| 11.BeijingOffcnFutureEducationTechnologyCo.,Ltd. | 49.00 | Transferred |
(7)MajorchangesoradjustmentstotheCompany’sbusiness,products,orservicesduringthereportingperiod
□Applicable√Notapplicable
(8)MajorcustomersandmajorsuppliersInformationaboutmajorcustomers
Totalsalesamountofthetopfivecustomers(RMByuan)
| Totalsalesamountofthetopfivecustomers(RMByuan) | 605,618.91 |
| Theratioofthetotalsalesamountofthetopfivecustomerstothetotalannualsalesamount | 0.01% |
| Theratioofthesalesamountofrelatedpartiesinthesalesamountofthetopfivecustomerstothetotalannualsalesamount | 0.00% |
Informationaboutthetop5customers
| SN | Customer | Salesamount(RMB) | Ratiotothetotalannualsalesamount |
| 1 | Customer1 | 130,296.72 | 0.00% |
| 2 | Customer2 | 130,019.42 | 0.00% |
| 3 | Customer3 | 119,768.79 | 0.00% |
| 4 | Customer4 | 115,242.72 | 0.00% |
| 5 | Customer5 | 110,291.26 | 0.00% |
| Total | -- | 605,618.91 | 0.01% |
Otherinformationregardingmajorcustomers
□Applicable√NotapplicableInformationregardingmajorsuppliers
| Totalpurchaseamountofthetopfivesuppliers(RMByuan) | 406,493,953.25 |
| Theratioofthetotalpurchaseamountofthetopfivesupplierstothetotalannualpurchaseamount | 9.63% |
| Theratioofthepurchaseamountofrelatedpartiesinthepurchaseamountofthetopfivesupplierstothetotalannualpurchaseamount | 0.00% |
Informationregardingthetop5suppliers
| SN | Supplier | PurchaseAmount(RMB) | Ratiotothetotalannualpurchaseamount |
| 1 | Supplier1 | 194,154,388.30 | 4.60% |
| 2 | Supplier2 | 128,012,500.00 | 3.03% |
| 3 | Supplier3 | 30,901,945.00 | 0.73% |
| 4 | Supplier4 | 27,285,618.00 | 0.65% |
| 5 | Supplier5 | 26,139,501.95 | 0.62% |
| Total | -- | 406,493,953.25 | 9.63% |
Otherinformationaboutmajorsuppliers
□Applicable√Notapplicable
3.Expenses
Unit:RMByuan
| Year2021 | Year2020 | Year-on-yearIncrease/Decrease | Descriptiononmajorchanges | |
| Salesexpenses | 2,105,098,912.06 | 1,811,790,113.16 | 16.19% | Mainlyduetotheexpirationofthesocialinsuranceexemption,theincreaseinemployees'salaries,theopeningofnewworkplace,andtheincreaseintheamortizationofrentalpropertyduringtheepidemicperiod |
| Managementexpenses | 1,315,643,022.03 | 1,279,869,207.37 | 2.80% | Nomajorchanges |
| Financialexpenses | 491,614,471.98 | 430,548,689.17 | 14.18% | Mainlyduetoshort-terminterestonborrowingsandtheamortizationofunrecognizedfinancingexpensestofinancialexpensesaccordingtotheNewLeaseStandard |
| R&Dexpenses | 901,469,538.57 | 1,050,697,333.79 | -14.20% | Mainlyduetotheoperatinglossesinthisperiod,thedecreaseofR&DpersonnelandthereductionofthetotalsalaryduetothepositiontransferofteacherstoR&D |
4.R&Dinvestment
√Applicable□Notapplicable
| NameofProjects | Purposeofprojects | Progressofprojects | Goalstobeachieved | PotentialinfluenceontheCompany’sdevelopment |
| Basicresearchanddevelopmentofcurriculumsystem | EnrichtheCompany'scurriculumsystemtoachieveadiversifiedcurriculumportfolio | Obtainedpartialobjective | EnrichtheCompany'scurriculumsystemtoachieveadiversifiedcurriculumportfolio | Providedifferentproductportfoliostoenhancestudents’learningoutcomeandtoimprovetheCompany’scorecompetitiveness |
| Researchanddevelopmentof | BydevelopingplatformsystemsandclientAPPs, | Obtainedpartial | BydevelopingplatformsystemsandclientAPPs, | Promotethedeepmatchingofdigitalmanagementand |
infrastructurefordigitaloperation
| infrastructurefordigitaloperation | providetechnicalsupportforthetransformationofbusinessdigitization | objective | providetechnicalsupportforthetransformationofbusinessdigitization | verticallyintegratedfastresponsesystem,seekforhigherlevelofefficientfastresponsewiththepowerofdigitalmanagement,andfurtherenhancethecorecompetitivenessoftheCompanybasedonspeedeconomy |
R&Dstaff
| 2021 | 2020 | Year-on-yearIncrease/Decrease | |
| NumbersofR&Dstaff | 2,452 | 3,025 | -18.94% |
| ProportionofR&Dstaff | 6.78% | 6.71% | 0.07% |
| EducationbackgroundofR&Dstaff | —— | —— | —— |
| Bachelordegree | 1,665 | 2,620 | -36.45% |
| Masterdegree | 778 | 400 | 94.50% |
| Others | 9 | 5 | 80.00% |
| AgeofR&Dstaff | —— | —— | —— |
| Below30yearsold | 1,052 | 1,841 | -42.86% |
| 30-40yearsold | 1,344 | 1,128 | 19.15% |
| Above40yearsold | 56 | 56 | 0.00% |
InvestmentsinR&D
| Year2021 | Year2020 | Year-on-yearIncrease/Decrease | |
| R&Dinvestmentamount(RMByuan) | 901,469,538.57 | 1,050,697,333.79 | -14.20% |
| TheproportionofR&Dinvestmentinrevenue | 13.04% | 9.38% | 3.66% |
| AmountofcapitalizedR&Dinvestment(RMByuan) | 0.00 | 0.00 | 0.00% |
| TheproportionofCapitalizedR&DinvestmentinR&Dinvestment | 0.00% | 0.00% | 0.00% |
ReasonsandeffectsofmajorchangesinthecompositionoftheCompany'sR&Dpersonnel
□Applicable√Notapplicable
ReasonforasignificantchangeoftheproportionoftotalR&Dinvestmentinrevenuefromthatofthelastyear
□Applicable√NotapplicableReasonandstatementforthesignificantchangeincapitalizationrateofR&Dinvestment
□Applicable√Notapplicable
5.Cashflow
Unit:RMByuan
Item
| Item | Year2021 | Year2020 | Year-on-yearIncrease/Decrease |
| Sub-totalofcashinflowsfromoperatingactivities | 5,344,505,574.24 | 14,170,455,842.47 | -62.28% |
| Sub-totalofcashoutflowsfromoperatingactivities | 9,442,467,123.14 | 9,287,986,740.56 | 1.66% |
| Netcashflowsfromoperatingactivities | -4,097,961,548.90 | 4,882,469,101.91 | -183.93% |
| Sub-totalofcashinflowsfrominvestingactivities | 9,419,573,425.23 | 41,450,131,085.26 | -77.27% |
| Sub-totalofcashoutflowsfrominvestingactivities | 7,679,034,155.42 | 42,558,772,286.98 | -81.96% |
| Netcashflowsfrominvestingactivities | 1,740,539,269.81 | -1,108,641,201.72 | 257.00% |
| Sub-totalofcashinflowsfromfinancingactivities | 4,569,000,000.00 | 5,270,000,000.00 | -13.30% |
| Sub-totalofcashoutflowsfromfinancingactivities | 6,191,808,200.47 | 5,818,126,412.65 | 6.42% |
| Netcashflowsfromfinancingactivities | -1,622,808,200.47 | -548,126,412.65 | -196.06% |
| Netincreaseincashandcashequivalents | -3,980,230,479.56 | 3,225,701,487.54 | -223.39% |
Maininfluencingfactorsofmajoryear-on-yearchangesinrelevantdata
√Applicable□Notapplicable
(1)ThenetcashflowsfromoperatingactivitiesdecreasedbyRMB8.9804307billionyuan,a183.93%year-on-yeardecrease.Itwasmainlyduetothelower-than-expectedbusinessreceiptsoftheCompany,therapidgrowthofstudents’refundsandthesharpdeclineofbusinessincome.
(2)ThenetcashflowsfrominvestingactivitiesincreasedbyRMB2.8491805billionyuan,a257.00%year-on-yearincrease,whichwasresultedfromtheredemptionoffinancialproductsuponmaturityinthecurrentperiod.
(3)NetcashflowsfromfinancingactivitiesdecreasedbyRMB1.0746818billionyuan,a196.06%year-on-yeardecrease.Itwas
mainlyduetotherepaymentofthedueshort-termborrowings,andthepaymentofnew-addedrentexpensesinthecurrentyearlistedin“Paymentofothercashrelatedtofinancingactivities”accordingtothetheNewLeaseStandard.ReasonforsignificantdifferencesbetweenthenetcashflowfromoperatingactivitiesandthenetprofitoftheCompanyduringthereportingperiod
□Applicable√Notapplicable
SectionV.Non-corebusinessanalysis
√Applicable□Notapplicable
Unit:RMByuan
Amount
| Amount | ProportionofTotalProfit | Reason | Sustainableornot | |
| Investmentincome | 79,269,900.92 | -2.86% | Mainlyincludingincomefromfinancialproducts,andinterestontimedeposits | Yes |
| Gainsandlossesfromchangesinfairvalue | -21,490,322.52 | 0.78% | AccordingtoFinancialInstrumentsStandards | Uncertain |
| Non-operatingincome | 18,141,095.89 | -0.66% | Formedduringtheoperatingprocess | Uncertain |
| Non-operatingexpenses | 1,303,782.47 | -0.05% | Formedduringtheoperatingprocess | Uncertain |
SectionVI.Analysisofassetsandliabilities
1.Majorchangesinassetcomposition
Unit:RMByuan
| EndofYear2021 | BeginningofYear2021 | Proportionofincrease/decrease | MajorChanges | |||
| Amount | Proportionoftotalassets | Amount | Proportionoftotalassets | |||
| Monetaryfund | 1,970,361,272.64 | 19.12% | 5,950,395,089.12 | 41.27% | -22.15% | MainlyduetothedecreaseintheCompany'sbusinessreceiptsandtheincreaseinstudents’tuitionrefunds |
| Accountsreceivable | 40,374,842.27 | 0.39% | 21,493,637.66 | 0.15% | 0.24% | Mainlyduetotheincreaseofrentreceivables |
| Investmentproperties | 644,936,541.46 | 6.26% | 668,014,515.82 | 4.63% | 1.63% | Mainlybecausethedeclineoftotalassetswasgreaterthanthedeclineofinvestmentproperty |
Long-termequityinvestment
| Long-termequityinvestment | 46,850,364.40 | 0.45% | 0.45% | MainlyduetotheincreasefromthetransferofBeijingOffcnFutureEducationTechnologyCo.,Ltd.fromawholly-ownedsubsidiarytoanassociatecompanyinthecurrentperiod | ||
| Fixedassets | 1,770,372,338.85 | 17.18% | 1,612,792,592.67 | 11.19% | 5.99% |
MainlyduetotheincreaseofhousesandbuildingsresultedfromtheacquisitionofLiu’anYazhongRealEstateInformationConsultingCo.,Ltd.andLiu'anZhongkeRealEstateInformationConsultingCo.,Ltd.inthecurrentperiod
| Constructioninprogress | 294,785,678.31 | 2.86% | 214,248,125.04 | 1.49% | 1.37% | Mainlyduetothenewly-addedprojectofRizhaoLearningCityinthecurrentperiod |
| Right-of-useasset | 1,342,280,387.08 | 13.03% | 1,491,006,998.14 | 10.34% | 2.69% | Mainlybecausethedeclineoftotalassetswasgreaterthanthedeclineofright-of-useassets |
| Short-termborrowings | 3,152,945,812.59 | 30.60% | 3,976,019,329.22 | 27.58% | 3.02% | Mainlybecausethedeclineoftotalassetswasgreaterthanthedeclineofshort-termborrowings |
| Contractliabilities | 3,063,721,290.28 | 29.73% | 4,925,428,309.33 | 34.16% | -4.43% | MainlyduetothedecreaseintheCompany'sbusinessreceiptsandtheincreaseinstudents’tuitionrefunds |
| Leaseliabilities | 635,691,184.87 | 6.17% | 632,866,068.34 | 4.39% | 1.78% | Nomajorchanges |
Ahighpercentageofoverseasassets
□Applicable√Notapplicable
2.Assetsandliabilitiesmeasuredatfairvalue
√Applicable□Notapplicable
Unit:RMByuan
| Item | Openingbalance | Profitsandlossesfromthechangesinfair | Accumulatedchangesin | Provisionforimpair | Amountofpurchaseinthecurrent | Amountofsalesinthecurrent | Others | Closingbalance |
valueincurrentperiod
| valueincurrentperiod | fairvalueattributedtoequity | mentincurrentperiod | period | period | ||||
| Financialassets | ||||||||
| 1.Transactionalfinancialassets(excludingderivativefinancialassets) | 1,191,656,173.26 | -21,490,322.52 | 6,305,150,000.00 | 7,094,329,229.00 | -4,000,000.00 | 376,986,621.74 | ||
| 4.Otherequityinvestment | 152,800,000.00 | -22,400,000.00 | 130,400,000.00 | |||||
| Sub-totaloffinancialassets | 1,344,456,173.26 | -21,490,322.52 | -22,400,000.00 | 6,305,150,000.00 | 7,094,329,229.00 | -4,000,000.00 | 507,386,621.74 | |
| Total | 1,344,456,173.26 | -21,490,322.52 | -22,400,000.00 | 6,305,150,000.00 | 7,094,329,229.00 | -4,000,000.00 | 507,386,621.74 | |
| Financialliabilities | 0.00 | 0.00 |
OtherchangesNoneWhethertheCompany’smajorassetsmeasurementattributeshavesignificantchangesduringthereportingperiod
□Yes√No
3.Assetswithrestrictedrightsasoftheendofthereportingperiod
Unit:RMB
| Item | Bookvalueattheendoftheperiod | Reasonsforrestriction |
| Monetaryfunds | 84,800.00 | Securitydeposit |
| Monetaryfunds | 470,463.08 | dormantaccount/withoutreconciliation |
| Total | 555,263.08 |
SectionVII.AnalysisofInvestments
1.Generalsituation
√Applicable□Notapplicable
| Investmentamountinthereportingperiod(RMB) | Investmentamountinthesameperiodofthepreviousyear(RMB) | Variation |
7,079,571,718.12
| 7,079,571,718.12 | 43,223,486,027.58 | -83.62% |
2.Significantequityinvestmentobtainedduringthereportingperiod
□Applicable√Notapplicable
3.Significantnon-equityinvestmentongoingduringthereportingperiod
√Applicable□Notapplicable
Unit:RMByuan
| Project | FushunOffcnBuilding | RizhaoLearningCity | ChangpingLandUseRight | Total |
| Investmentmethod | Self-built | Self-built | Self-built | -- |
| Whetheritisafixedassetinvestment | Yes | Yes | Yes | -- |
| Industriesinvolvedininvestmentprojects | Educationaltechnologydevelopment,service,culturalconsulting | Educationaltechnologydevelopment,service,culturalconsulting | Educationaltechnologydevelopment,service,culturalconsulting | -- |
| Amountofinvestmentinthisreportingperiod | 16,812,207.39 | 63,725,345.88 | 2,494,150,000.00 | 2,574,687,553.27 |
| Accumulatedinvestmentasoftheendofthereportingperiod | 157,099,898.91 | 63,725,345.88 | 3,097,058,000.00 | 3,317,883,244.79 |
| Sourcesoffunds | Self-ownedfunds | Self-ownedfunds | Self-ownedfunds | -- |
| Projectprogress | 47.61% | 6.37% | 0.00% | -- |
| Estimatedearning | 0.00 | 0.00 | 0.00 | 0.00 |
| Accumulatedincomeasoftheendofthereportingperiod | 0.00 | 0.00 | 0.00 | 0.00 |
| Reasonsfornotmeetingtheplannedprogressandexpectedincome | Notcompletedyet | Notcompletedyet | Transferred | -- |
4.Financialassetsinvestment
（1）Securitiesinvestment
√Applicable□Notapplicable
Unit:RMByuan
| Securities | Securitiescode | Securitiesabbreviation | Originalinvestment | Accountingmeasurement | Bookvalueatthebeginni | Profitsandlossesfrom | Accumulatedchangesinfair | Purchaseamountforthis | Sellingamountforthisperiod | Profitsandlossesduring | Bookvalueattheendof | Accountingsubjects | Sourcesoffund |
cost
| cost | model | ngoftheperiod | changesinfairvalueforthecurrentperiod | valueincludedinequity | period | thereportingperiod | theperiod | ||||||
| Funds | 010439 | HuitianfuStable-profitHybridSecuritiesFundwithone-yearholdingperiod | 9,999,000.00 | Fairvaluemeasurement | 10,467,953.10 | -468,953.10 | 0.00 | 0.00 | 9,999,000.00 | 735,926.30 | 0.00 | Transactionalfinancialassets | Self-ownedfunds |
| Total | 9,999,000.00 | -- | 10,467,953.10 | -468,953.10 | 0.00 | 0.00 | 9,999,000.00 | 735,926.30 | 0.00 | -- | -- | ||
| Disclosuredateoftheannouncementofsecuritiesinvestmentapprovalbyboardofdirectors | N/A | ||||||||||||
| Disclosuredateoftheannouncementofthesecuritiesinvestmentapprovalbyboardofshareholders(ifany) | N/A | ||||||||||||
(2)Derivativesinvestment
□Applicable√NotApplicableThereisnoderivativesinvestmentduringthereportingperiodoftheCompany.
5.Useofraisedfunds
□Applicable√NotApplicableThereisnouseofraisedfundsduringthereportingperiodoftheCompany.
SectionVIII.Saleofmajorassetsandequity
1.Saleofmajorassets
□Applicable√NotapplicableTheCompanydidnotsellanymajorassetsduringthereportingperiod.
2.Saleofmajorequity
√Applicable□Notapplicable
| Counterparty | BeijingShanghengJiruiCommercialOperationandManagementCo.,Ltd. |
Theamountofsoldequity
| Theamountofsoldequity | 51%equityoftheCompany’swholly-ownedsubsidiary—BeijingOffcnFutureEducationTechnologyCo.,Ltd. |
| Saledate | October12,2021 |
| Transactionvalue(RMB10thousandyuan) | 5,100 |
| NetprofitcontributedbytheequitytotheCompanyfromthebeginningofthecurrentperiodtothesaledate(RMB10thousandyuan) | -5.08 |
| InfluenceofthesaleontheCompany | TheCompanyworkswiththesubsidiaryofthepowerfulLongforGrouptodevelopthetargetcompany’sprojectbytransferringthecontrollinginterestofitswholly-ownedsubsidiary.TheLongforsidedevelopstheresidentialland,whiletheCompanychannelsfundsandeffortsintotheconstructionofpublicprojectswhichisconnectedwiththemainbusiness.ThecooperationpromptstheestablishmentoftheCompany'sonlinetechnologyR&Dcenter,OMOeducationdemonstrationcenter,R&Dandteachingpersonnelintegratedtrainingcenter,nationalmarketverticalintegratedresponsecommandcenterandinnovationeducationheadquarters,whichwilleffectivelyimprovetheCompany’scapacitiesofclusterR&D,massproductionandpopularizationofOMOproducts,verticalintegratedfastresponseinnationalmarket,andagileinnovationofallcategoriesofproducts.Besides,theCompanyplanstocreateaone-stopbaseforfood,housingandlearningwhichcanaccommodatemorethan5,000studentsandprovidethemwithOMOtraining,andwherecanholdmultipleroundsofintensiveinternaltraininginR&Dandteachingforover30,000teachingandR&Dpersonnel.Uponcompletion,thisnewcenter,whichfullyintegrateswithonlinetechnology,willsystematicallyenhancetheCompany'strainingcapabilitiesforinternalstaffandstudents,acceleratethethoroughinnovationandupgradeoftechnology,R&D,training,service,marketandcommandsystemintheindustry,andstronglyenhancetheCompany’sbrandimageandestablishcompetitivebarrier,whichareallinlinewiththeCompany'slong-termdevelopmentstrategyandtheinterestsofallshareholders. |
| ProportionofnetprofitcontributedbythesaletotheCompanyinthetotalnetprofit | 0 |
| Pricingprincipleoftheequitysale | Negotiationbasedonpaid-inregisteredcapital |
| Whetheritisarelatedpartytransaction | No |
| Relationshipwiththecounterparty | N/A |
| Whethertheequityinvolvedhasbeenfullytransferred | Yes |
| Whetheritisimplementedonscheduleornot.Ifnot,thereasonsandthemeasurestheCompanyhastakenshouldbestated. | Implementedonschedule |
Disclosuredate
| Disclosuredate | September27,2021 |
| Disclosureindex | Fordetails,pleaserefertotheAnnouncementontheTransferofPartoftheWholly-ownedSubsidiary’sEquityandCooperativeDevelopment(No.2021-061)disclosedbytheCompanyonwww.cninfo.com.cn. |
SectionIX.Analysisofmajorholdingandparticipatingcompanies
√Applicable□NotApplicableMajorsubsidiariesandshareholdingcompaniesthataffecttheCompany'snetprofitbymorethan10%
Unit:RMByuan
| 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.) |
| Registeredcapital | 90,000,000.00 |
| Totalassets | 8,011,989,972.20 |
| Netassets | 955,658,207.14 |
| Revenue | 6,885,584,429.07 |
| Operatingprofit | -2,691,880,548.00 |
| Netprofit | -2,254,851,259.12 |
Acquisitionanddisposalofsubsidiariesduringthereportingperiod√Applicable□NotApplicable
| Companyname | Methodofacquisitionanddisposalofsubsidiariesduringthereportingperiod | Impactontheoverallbusinessoperationsandperformance |
| 1.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | Acquisition | Nomajorimpact |
| 2.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | Acquisition | Nomajorimpact |
3.WenlingOffcnInformationConsultingCo.,Ltd.
| 3.WenlingOffcnInformationConsultingCo.,Ltd. | Newestablishment | Nomajorimpact |
| 4.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 5.DiqingOffcnTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 6.DaliOffcnEducationTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 7.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 8.NujiangOffcnTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 9.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | Newestablishment | Nomajorimpact |
| 10.BeijingOffcnCenturyEducationTechnologyCo.,Ltd. | Newestablishment | Nomajorimpact |
| 11.BeijingOffcnFutureEducationTechnologyCo.,Ltd. | Transferred | Nomajorimpact |
MajorholdingandparticipatingcompaniesIn2021,theCompany’swholly-ownedsubsidiary,BeijingOffcnEducationTechnologyCo.,Ltd.,achievedarevenueofRMB
6.8855844billionyuan,adecreaseof38.43%fromthepreviousyear,andanetprofitofRMB-2.2548513billionyuanfortheyear,adecreaseof196.39%fromthepreviousyear.SectionX.StructuredentitiescontrolledbytheCompany
□Applicable√NotApplicable
SectionXI.ForecastoftheCompany’sfuturedevelopment
1.Trendsoftheindustry’sfuturedevelopment
(1)Thestatusofvocationaleducationineducationsystemisenhancing.Foralongtime,China’seducationsystemhasbeendominatedbycurriculaeducationandthefoundationofvocationaleducationisrelativelyweak.Thereisaseriousshortageofhigh-endskilledtalentssupplyandinthefuture,theneedformore“skilledcraftsmen”and“greatbuilders”willremainurgent.Inrecentyears,China’sindustrialstructureisundergoingtransformationandupgrading.Thegovernmenthasclearlyproposedthatgreateffortswillbemadetopromotethedevelopmentofemergingindustrieswithstrategicimportance,andtheproportionofmodernserviceindustrywillbefurtherincreased.Withrapidchangesintheindustrialstructure,therequirementsfromenterprisesfortheprofessionalcompetenceandcomprehensivequalityoftechnicalpersonnelhavegraduallyincreased.Newrequirementsfortheirpracticalabilityhavealsobeenputforward.Traditionalacademiceducationcan’tfullymeetthenewrequirements.
Besides,thegovernmentcontinuestoenhancetheeffortstodevelopvocationaleducation.Inadditiontothepertinentdocuments,suchasDecisionoftheStateCouncilonMakingGreatEffortstoDevelopVocationalEducationpublishedin2005,andNationalPlanforVocationalEducationReformandChina’sEducationModernizationPlan2035publishedin2019,the2021NationalVocationalEducationConferencefurtheremphasizedthatvocationaleducationhasabrightfutureandpromisingprospectsinthenewjourneyofbuildingamodernsocialistcountryinallrespects,andputforwardexplicitrequestsforacceleratingtheconstructionofamodernvocationaleducationsystem,andcultivatingmorehigh-calibertechnicalandskilledprofessionals,thus
promotingthestatusofvocationaleducationinthewholeeducationsystemfromboththepolicyandinstitutionallevels.
(2)Thecontinuousincreaseinthenumberofcollegegraduatesisanimportantindicatoroftheemploymentsituation.Usually,afastergrowingeconomywillbringahigherlevelofemployment.Inrecentyears,economicgrowthhassloweddown,butthenumberofuniversitygraduateshascontinuedtogrow.Itwillreach10.76millionthisyear,settinganewhistoricalrecord.Collegegraduatesaccountformorethanhalfoftheannualdemandofover15millionnewjobs,andthebonusperiodfortheexportofcheaprurallaborhascometoanend.Theexpansionofuniversityenrollmenthasobviouslyanddirectlyacceleratedthearrivaloftheturningpoint.Thelaborshortageoffarmerlaborerscoexistswiththedifficultemploymentofcollegegraduates.Thedemandfortrainingforpublicservicerecruitmentexaminationcontinuestorise.
Inaddition,aimingtomaintainsustainedeconomicgrowth,realizetransformationandupgrading,andovercomethe“middle-incometrap”,itisurgentlynecessarytocarryoutindustrialupgradingformiddleandhigh-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.Atpresent,theurbanizationratehasexceeded60%.Urbanizationwillexpandthepublicfinancialexpenditureandthenumberofemployeesinthepublicservicesector.China’surbanizationrateremainsinahigh-speedgrowthrangeof30%to70%.Itislikelytocontinuetodevelopfornearly20yearstoachieveanurbanizationrateofmorethan80%indevelopedcountries.Meanwhile,continuousurbanizationmayalsoleadtomoreseriouslyinadequatepublicservicesupplyincities,whichwillalsoimposehigherrequirementsonthequalityofpublicservices.
Comparedwithpublicproductssuchasinfrastructure,publicservicesarelabor-intensiveinputs,especiallythebasicpublicservicesoflocalgovernments.Alargenumberofemployeescanbehiredwhilepublicservicecapabilitiesarebeingimproved.China’slong-termgoalfor2035andthemaingoalofeconomicandsocialdevelopmentduringthe“14thFive-YearPlan”periodrequireasignificantincreaseinthelevelofequalizationofpublicservices.AccordingtotheresearchbytheNationalAcademyofGovernance,theemployedpopulationinthepublicsectorindevelopedcountriesaccountsforabout10%to20%oftheworkforce,whichisevenhigherthan20%inCanadaandHongKong.However,theemployedpopulationinthecurrentpublicsectoronlyaccountsfor5%inChina.Withthedeepeningofurbanization,theproportionofemployedpopulationinChina’spublicsectorwillgraduallyincrease;andthemarketoftrainingforpublicservicerecruitmentexaminationwillalsomaintainalong-termsteadygrowth,whichhasbeenpartiallyprovedbytheastonishingdemandsonthetrainingforteacherrecruitmentexaminationandrecruitmentexaminationinmedicaltreatmentandpublichealth.
2.StrategicdevelopmentdirectionoftheCompany
(1)Cementtheleadershippositioninrecruitmenttrainingmarketandtakesteadydevelopmentasthefirstpriority
Atpresent,theindustryisfacingmajorchallengesduetotheinfluenceofpandemicandpolicies,butthisdoesnotchangeourviewonlong-termtrends.Urbanization,equalizationofpublicservices,thenaturalrenewalofthein-servicestaffinlargescaleandthestabilizationofemploymentarethemaintrendsoftheeconomicandsocialdevelopment,whichmeansthatthelong-taileffectoftherecruitmentmarketwillcontinuetostrengthen.Underthenewindustrycontext,theCompanywillinnovateandoptimizetheproductsproactively,respondtothedemandofnew-addedemploymentmorequicklyandmeetthedemandmoreproperly,transferfromthepursuitofhighgrowthtosustainableandsounddevelopment,balancebusinessdevelopmentandprofitabilityandcementtheleadershippositioninrecruitmenttrainingmarket
(2)MaintaineffectiveR&Dinvestmentandstrengthentheadvantagesoftheleadingvocationaleducationinnovationplatform.
R&Dshallalwaysberegardedasthefundamentaldrivingforceforallundertakings.TheCompanywillresolutelycarryoutlong-termandheavyinvestmentinR&DandattractoutstandingtalentstoparticipateinR&D.WithR&D,theCompanywilldriveinnovationfromthebottomlevel,makesystematicimprovement,breakthroughindustryboundaries,andestablishcompetitionbarriers,soastoperfectitscurrentmajorbusinesses,expanditsnewbusinesses,andremaintobealeadingvocationaleducationinnovationplatform.
(3)Furtherintegrationoftechnologyandbusinessfordigitaltransformationofoperations
YearsofaccumulationofindependentITdevelopmentistheCompany’svaluablewealth,enablingtheCompanytocalmlycopewiththenewopportunitiesandchallengesbroughtbythedevelopmentofscienceandtechnology.TheCompanywillconstantlyincreaseinvestmentintechnologyinfrastructureandtechnicalteamsandenhanceresponsivenessoftechnologythroughtechnologicalmiddleplatformandagiledevelopmenttoexpanddevelopmentoutput.Onthisbasis,theCompanywillcontinuetoacceleratedigitaltransformationofoperationsandfullyintegratetheproductivityoftechnologywithoperationsystemtofacilitatebusinessinnovation,andimprovethelevelofintelligenceinoperationandteaching,thussupportingverticalintegratedfastresponsecapabilitywithawiderrangeandonalargerscale.
(4)Cutoutredundantcategoriesandfocusoncoremarkets
TheChangeoftheeconomicenvironmentbroughtaboutbythepandemichasmadetheindustrygetreal-lifeinsights,andtreadinginthedeepwaterhasgiventheCompanyamoreobjectiveunderstandingaboutitself.In2022,theCompanywillconformtosocialconsumptiontrends,streamlineandrefinebusinesses,cutoutredundantcategories,focusoncorecategoriesincludingtrainingforpost-graduateentranceexamination,ITandvocationalskill,improvestandardsofservicequality,andtakeadvantageofintelligentinformationsystemtodevelopproductsthatmeetmarketdemand.
(5)Optimizechannelsproactivelyandstrengthenthecoresectors
Afteryearsofbusinessexpansion,theCompanyhasestablishedmorethan1,500outletsandlearningcentersandthechannelnetworkshavecoveredmorethan300citiesacrossthecountry.Next,theCompanywillanalyzenationalmarketdemandthoroughlyandoptimizethechannelnetworksproperlyaccordingtothebusinessdevelopmentstrategy.TheCompanywillchannelsuperiorresourcesintostrengtheningthecoresectorsonthepremisethatthestabilityofthebusinessnetworkmainbodyisensured.
3.MajorbusinessplanoftheCompanyfor2022
(1)Rectifyandreformproactivelyandseektheoptimumbalancebetweenproducts,staffandchannels
Inthepastthreeyears,thevolumeoftheCompanyhasexpandedquicklybytakingtherapid-expansionstrategy,whichhascausedmoredifficultyformanagement,increasedtheoperationcostoftheCompanyobjectivelyandputmorepressureonmaintainingandincreasingthewholeprofitmargin.In2022,undertheseunfavorableoperatingconditions,theCompanywillrectifyandreformproactively.Itwillcontrolthenumberofthestaffinareasonablescaleandconcentrateeffortsonoptimizingperformanceincentivepolicies.Itwilltakeeffectivemeasurestoadjustandoptimizethestructureandchannelsofproductsinaccordancewiththechangesof
users’demandandmarketandfocusonthemanagementandcontrolofcost.Byseekingtheoptimumbalancebetweenproducts,staffandchannels,theCompanymayreversethedeclinetrendofperformanceandpromoteitssteadyandsounddevelopment.
(2)OptimizetheproductstructureandunderlinequalityandprofitabilityTheCompanyhasbeenregardingsteadyandsoundoperationasthebottomline.Duetotheintensifiedmarketcompetition,tostabilizethemarketshare,andtofacilitatethenewchannelsandoutletsexpandingtheirlocalmarkets,theCompany’sproductstructurebecameunbalanced.Thisyear,theCompanywilloptimizetheproductstructuretimely,lowertheproportionofthehigh-tuition-refundagreementcourses,refinetheproductqualityandinnovatetheservicemodelaccordingtothedemandofmarketandtraineestoimprovetheoperatingprofitabilityandperformanceinthepost-pandemicera.
(3)ContinuetofurthertheOnline-Merge-OfflinebusinessIn2022,theCompanywillincreaseinvestmentinonlinebusinessandOMObusiness.Basedonyearsofdigitalpenetrationofthemaincourseproducts,theCompanywillfurtherexpandtheleadingadvantagesofOMOcourses,sothatmoretraineescanobtaintheconvenienceofonlinelearningandtheeffectivenessofface-to-facelearningatthesametime,thusrapidlyincreasingthenumberoflearnersandtherateofparticipation.
(4)ImplementAmoebamanagementtostreamlineproductionmechanismandstimulateimpetusforcostdecreasingandbenefitincreasingfrombottomtotopIn2022,theCompanywilldeepenthemanagementreformandimplementAmoebamanagementthoroughlytostreamlineproductionmechanism.Basedonvaluecreationandprofitassessment,theCompanywillcarryoutdelicacyoperationineveryprojectandsub-center,optimizethehumanresourcesstructureandimproveverticalintegratedfastresponsecapabilitiestomeetthenewdevelopmentrequirementsfortheimplementationoftheCompany’sstrategy.
(5)Steadilyexplorenewbusinessesandexpandthescaleofvocationalskillstrainingbusiness
In2022,theCompanywillcontinuetoexplorenewbusinessofvocationaleducationandestablishvocationaleducationdepartment.Apartfromintegratinginternalresources,theCompanywillcooperatewithgovernment,enterprisesandcollegestocarryoutexplorationsinAI,digitaleconomy,convergencemedia,culturalandcreativeindustriescharacterizedbydigitization,intelligentmanufacturing,intelligentaviationandotherindustriesandtapthefullpotentialoftheexistingresourcestofindnewgrowthpoints.Atthesametime,theCompanylaunchesa
careerpromotionplatformforextensiveprofessionstoprovidetrainingservicesforpart-timejobs,advancementofvocationalskillandcertificateexamsbynewtrainingmodelssuchas“Internet+”and“Intelligence+”tomeetthetrainingdemandofthehigh-qualityprofessionalskilledpersonnelinthecontextofnewtechnologies,newindustries,newbusinessformsandnewmodelsandimprovetheemploymentandentrepreneurialabilityofcollegestudentsandyoungtalents,enhancethere-employmentcapabilityofordinarylaborersafterposttransfer,andpopularizethegeneralvocationalqualitiesanddigitalskills.Bythethoroughimplementationofprofessionalskillimprovementmeasures,theCompanycanseizetheopportunitywhenflexibleemploymentissupportedbythegovernmentandthedemandforskillstrainingsoars.
4.PossibleRisks
(1)IndustryPolicyRisksTheboomofthevocationaleducationindustryhasahighcorrelationwiththepolicyenvironment,andiseasilyinfluencedbythevocationaleducationpolicy.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)MarketRisksWiththepolicysupportfromthegovernment,theindustryofvocationaleducationisexpectedtocontinuetokeepprosperous,whichwillresultinmorecapitalinflowintotheindustryandevermoreintensemarketcompetition.Atthesametime,thecontinuousrecurrenceoftheCovid-19hasputourcountry’seconomic
developmentunderthetriplepressuresofshrinkingdemand,supplyshockandweakeningexpectations.AlthoughthepromotionoftakingvaccinesofCovid-19inallpartsofthecountryhaslaidafoundationforeconomicrecovery,consumerconfidencehasdroppedsignificantlycomparedwiththatinthepre-pandemicperiod,theirwillingnesstospendislowandthedemandfortraininghasshrunkdramatically.Therefore,inthelongrun,themarketdemandwillstillbeonagrowingtrend,butitcannotberuledoutthatintheshortterm,itwilldeclineduetovariousfactors,whichwillaffectthestudents’enthusiasmtotakepartinexamsandleadtoadeclineinmarketdemand.Riskresponse:Inresponsetotheaboverisks,theCompanywillcontinuetomaintaineffectiveinvestmentinresearchanddevelopment,andalsointechnologyinfrastructureandtechnicalteamstointegratetheproductivityoftechnologyintothebusinesssystemandpromotebusinessinnovationandthequalityofproductsandservices.TheCompanywilloptimizetheproductstructuretimely,refinetheproductqualityandinnovatetheservicemodelaccordingtothedemandofmarketandtrainees,toimprovetheoperatingprofitability.Atthesametime,basedontheoperatingconditions,theCompanywillseektheoptimumbalancebetweenproducts,staffandchannelsandstrengthenthecontrolovercosttoenhancetheCompany’scapabilityoffightingagainstmarketrisks.
(3)ManagementRisksWiththecontinuousexpansionoftheCompany’sbusinesscategoriesandbranches,theCompanymustfacetheriskofmismatchbetweenexpansionandmanagementcapabilities.Costssuchasvenueleasingandlaborhavecontinuedtoincrease,andthepursuitofrapiddevelopmenthasledtoadeclineinthecurrentprofitlevelandprofitmargin.Atthesametime,therearerecurrencesofthepandemicinsomepartsofthecountry,whichresultinthatofflinetrainingcannotbecarriedoutsmoothlyinsomeareas.Inaddition,influencedbythepandemic,therecruitmentexamsofpublicserviceinsomeareaswereputofforcanceled,contributingtothedeclineoftrainingdemand.Ifthepandemicworsensorspreadsfurtherinthefuture,itmayhaveamaterialadverseimpactontheCompany’soperatingperformance.
Riskresponse:Inviewoftheaboverisks,theCompanywillcontinuetooptimizeitsmanagementsystemofverticalintegratedfastresponse,enhancethecoordinationbetweenlarge-scaleknowledgeemployees,improvemanagementandoperationefficiency,upgradehumanresourcesstructure,andconformtotheCompany’sbusinessexpansionstrategy.TheCompanyattachesimportancetotalentreserves,makesarrangementsinadvance,andpromotestherealizationofgrowthexpectationsfornewcategories.TheCompanywillcontinuetoinvestinonlinebusinessandOMObusinessandpromotetheintegrationofofflineandonlinebusinesstoalleviatetheshockofthepandemic.
SectionXII.Receptionofresearch,communication,interviewandotheractivities
√Applicable□NotApplicable
Date
| Date | Place | Waysofreception | Typeofreceptionobject | Receptionobject | Discussioncontentandthematerialsprovided | Indexofthesurvey |
| Jul.16,2021 | - | Telephone | Others | 173peoplefrom88publicofferinginstitutions,privateplacementagenciesandinvestors,suchasBankofCommunicationsSchroeder,EFund,InvescoGreatWall,FullgoalFund,PerseveranceAssetManagement,AEGON-IndustrialFund,BankofChinaInvestmentManagement,SouthernAssetManagement,BoseraFunds,AIA,HarvestFund,DachengFund,ManulifeTEDA,PenghuaFund,WesternLeadbank,HSBCJintrust,ABC-CAFund,BlackRock,Fidelity,InforeCapitalManagement,andBarings. | InterpretationoftheCompany'ssemi-annualperformancein2020andintroductionofthebusinessdevelopment | RecordformofinvestorrelationsactivitydisclosedbytheCompanyonwww.cninfo.com.cnonJul.16,2021 |
Chapter4CorporateGovernance
SectionI.BasicInformationofCorporateGovernance
Duringthereportingperiod,instrictaccordancewithrelevantlawsandregulations,andrulesandregulatorydocumentsfromsupervisionauthorities,i.e.CompanyLaw,SecuritiesLaw,CodeofCorporateGovernanceforListedCompaniesinChina,StockListingRulesofShenzhenStockExchange,andListedCompaniesSelf-RegulatoryGuidelinesNo.1—StandardizedOperationoftheListedCompaniesonMainBoard,theCompany,basedonitsactualsituation,consistentlyimproveditscorporategovernancestructureandinternalcontrolsystem,andenhancedthelevelofcorporategovernance.TheCompany’soveralloperation,corporategovernancesystemandinformationdisclosureweresoundandstandardized.Theactualconditionsofcorporate
governancemettherequirementsoftheregulatorydocumentswithrespecttothecorporategovernanceoflistedcompaniesissuedbyCSRC.
1.ShareholdersandtheShareholders’GeneralMeetingInstrictaccordancewithArticlesofCorporationandRulesofProcedureforShareholders’GeneralMeetingaswellasotherapplicableregulationsandrequirements,theCompanystandardizedthegathering,convening,deliberationsandvotingproceduresofitsshareholders’generalmeetingsandhiredlegaladviserstoissuelegalopinionsfortheshareholders’generalmeetings.TheCompanytreatsallshareholdersequallyandespeciallyensuresthattheminorityshareholdersenjoyequalstatus.Duringthereportingperiod,theCompanyconvenedtwoshareholders’generalmeetingsintotal,andallresolutionsoftheshareholders’generalmeetingswerefaithfullyimplementedbytheboardofdirectors.
2.TherelationshipbetweentheCompanyandthecontrollingshareholdersThecontrollingshareholdersoftheCompanyexercisedtherightsandobligationsoftheinvestorsinstrictaccordancewithCompanyLaw.Duringthereportingperiod,therewasneitheranydirectorindirectinterferencewiththeCompany’sdecision-makingandoperationsbeyondtheShareholders’GeneralMeetingbythecontrollingshareholdersnorasituationwherethecontrollingshareholdersdamagedthelegitimaterightsandinterestsofothershareholdersoftheCompany.Therewasn’tanyguaranteeprovidedbythelistedCompanyforthecontrollingshareholdersortheirsubsidiaries.
3.DirectorsandtheBoardofDirectorsTheCompanyelectedcandidatesfortheBoardofDirectorsinstrictaccordancewithrelevantlawsandregulationsi.e.CompanyLawandArticlesofCorporation.ThenumberofdirectorsandcompositionoftheBoardofDirectorsmettherequirementsoflawsandregulations.TheBoardofDirectorsoftheCompanyconvenedBoardsessionsinstrictaccordancewiththerelevantprovisionsofArticlesofCorporation,RegulationsofAppointmentandProceedingsforIndependentDirectorsandRulesofProcedurefortheBoardofDirectors.AlldirectorsoftheCompanyattendedtheBoardsessionsontime,fulfilledtheirdutiesdiligently,scrupulouslyreviewedvariousproposalsandmadescientificandreasonabledecisionsonmajormattersoftheCompanytoeffectivelysafeguardtheinterestsoftheCompanyandthelegitimaterightsandinterestsofallshareholders.UndertheBoardofDirectorsoftheCompanyarefourprofessionalcommittees:StrategyandInvestmentCommittee,NominationCommittee,AuditCommitteeandRemunerationandAppraisalCommittee.Withclearlydefinedpowersandresponsibilitiesandeffectiveoperations,eachcommitteegavefullplaytoitsprofessionalfunctionsandprovidedscientificandprofessionalopinionsforthedecision-makingoftheBoardofDirectors.
4.SupervisorsandtheSupervisoryCommitteeTheCompanyelectedcandidatesfortheSupervisoryCommitteeinstrictaccordancewithrelevantlawsandregulationsi.e.CompanyLawandArticlesofCorporation.ThenumberofsupervisorsandcompositionoftheSupervisoryCommitteemettherequirementsoflawsandregulations.TheSupervisoryCommitteeoftheCompanyconveneditssessionsinstrictaccordancewiththerelevantprovisionsofArticlesofCorporation,RulesofProcedurefortheSupervisoryCommittee,andotherrelatedregulations.AllsupervisorsoftheCompanyattended
thesupervisorysessionsontime,fulfilledtheirdutiesfaithfully,providedsupervisionandopinionsformajorissues,financialstatus,etc.,andsafeguardedthelegitimaterightsandinterestsoftheCompanyandshareholders.
5.RelevantstakeholdersTheCompanyfullyrespectsandsafeguardsthelegitimaterightsandinterestsofrelevantstakeholders,constantlystrengthenstheawarenessofsocialresponsibilityandenhancescommunicationwithallpartiestocoordinateandbalancetheinterestsofthesociety,government,shareholders,theCompanyitself,anditsemployees.TheCompanyadherestotheprincipleofmutualbenefitsandwin-winresultswithrelevantstakeholdersandjointlypromotestheCompany’sharmonious,steadyandsounddevelopment.
6.InformationdisclosureandtransparencyInstrictaccordancewiththerequirementsofRegulationsConcerningInformationDisclosureManagement,RegulationsConcerningInvestorsRelationsManagementandRegulationsofRegistrationandManagementSystemonLearnersofInsiderInformation,theCompanydesignatestheSecretaryoftheBoardtoberesponsibleforinformationdisclosure,receivingshareholders’visitsandconsultationsandtodisclosetherelevantinformationinanauthentic,accurate,complete,timelyandfairmannerinaccordancewithrelevantregulationssoastoensurethatallshareholdersoftheCompanycanhaveequalaccesstotheinformation.
7.PerformanceappraisalandincentivesDuringthereportingperiod,theCompanyconstantlyimprovedworkingperformanceevaluationsystemandincentivemechanism.TheappointmentandremunerationoftheCompany’sdirectors,supervisorsandseniorexecutiveswereopenandtransparent,whichmettherequirementsofrelevantlawsandregulations.TheCompanyregularlyandcomprehensivelyevaluatedemployees’workingskills,valuesandtheirrecognitionofcorporateculturebyanevaluationmethodbasedonquantitativeindicatorsofperformanceandqualitativestandardstoensurethatboththeworkresultsandgrowthofemployeesweregivenattentionto.
8.InvestorrelationsmanagementDuringthereportingperiod,theCompanyconstantlystrengthenedthemanagementofinvestorrelationsandsafeguardedthelegitimaterightsandinterestsoftheCompany’sshareholders.TheCompanydesignatestheSecretaryoftheBoardastheheadofinvestorrelationsmanagementtoorganizeandimplementthedailymanagementofinvestorrelations,andpromptlyanswerinvestors’questionsthroughphonecalls,emails,interactiveplatformandonlinebriefingsofbusinessperformance,whichensuresthatalltheinvestorshaveequalaccesstotheCompany’sinformationandfullyguaranteesinvestors’rightstoknow.
ArethereanymaterialdifferencesbetweentheCompany’sactualgovernancestatusandthelaws,administrativeregulationsandrulesonthegovernanceoflistedcompaniesissuedbyCSRC?
□Yes√No
ThereisnomaterialdifferencebetweentheCompany’sactualgovernancestatusandthelaws,administrativeregulationsandrulesonthegovernanceoflistedcompaniesissuedbyCSRC.SectionII.DetailsoftheCompany’sseparationfromitscontrollingshareholdersandactual
controllerstoensuretheCompany’sindependenceonassets,personnel,finance,organizationandbusinessaffairsTheCompanystandardizeditsoperation,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,managementandallthefunctionaldepartmentsoperateindependentlyfromeachother.TheCompanyaswellestablishedcorrespondinginternalmanagementandcontrolsystemtomakeeachdepartmenthaveclearlydefinedresponsibilities,performitsowndutiesandcooperatewitheachother,thuscomposinganorganicwholeandguaranteeingthelegaloperationoftheCompany.ThereisnosubordinaterelationshipbetweentheCompany’sinstitutionsandthefunctionaldepartmentsofthecontrollingshareholders.
5.Financialindependence:TheCompanyhassetupcompleteandindependentfinancialdepartmentequippedwithadequatefull-timefinancialaccountants,establishedindependentaccountingcalculationsystemandfinancialmanagementsystem,andindependentlyopenedbankaccounts,paidtaxesandmadefinancialdecisions.ThereisnointerferencefromthecontrollingshareholdersinthefinancialmanagementoftheCompany.SectionIII.HorizontalCompetition
□Applicable√NotapplicableSectionIV.Annualgeneralmeetingandextraordinarygeneralmeetingsconvenedduringthereportingperiod
1.Particularsabouttheshareholders’generalmeetingduringthereportingperiod
Session
| Session | Type | InvestorParticipation% | Conveningdate | Disclosuredate | Resolution |
2021FirstExtraordinary
GeneralMeeting
| 2021FirstExtraordinaryGeneralMeeting | ExtraordinaryGeneralMeeting | 78.68% | January25,2021 | January26,2021 | Fordetails,refertotheAnnouncementonResolutionsoftheFirstExtraordinaryGeneralMeetingof2021(No.2021-004)disclosedonwww.cninfo.com.cn. |
| 2020AnnualGeneralMeeting | AnnualGeneralMeeting | 80.10% | June15,2021 | June16,2021 | Fordetails,refertotheAnnouncementonResolutionsoftheAnnualGeneralMeetingof2020(No.2021-044)disclosedonwww.cninfo.com.cn. |
2.Extraordinarygeneralmeetingsrequestedbypreferredshareholderswithrestoredvotingrights:
□Applicable√NotapplicableSectionV.Directors,supervisorsandseniorexecutivesoftheCompany
1.Basicinformation
| Name | Title | Tenurestatus | Gender | Age | Startdate | Enddate | Sharesheldatthebeginningoftheperiod(share) | Quantityofsharesincreasedinthecurrentperiod(share) | Quantityofsharesdecreasedinthecurrentperiod(share) | Otherincreasedordecreasedchanges(share) | Quantityofsharesheldattheendoftheperiod(share) | Reasonsforincreaseordecreaseofshares |
| LiYongxin | ChairmanoftheBoard | Incumbent | Male | 46 | February1,2019 | January27,2025 | 1,131,415,121 | 1,131,415,121 | ||||
| WangZhendong | Director,generalmanager | Incumbent | Male | 46 | February1,2019 | January27,2025 | 962,471,418 | 109,586,000 | 852,885,418 | Reduceshareholding | ||
| ShiLei | Director | Incumbent | Male | 46 | February1,2019 | January27,2025 | ||||||
| YiZiting | Director | Incumbent | Female | 48 | February1,2019 | January27,2025 | ||||||
| WangQiang | Independentdirector | Incumbent | Male | 45 | February1,2019 | January28,2022 | ||||||
| TongYan | Independentdirector | Incumbent | Female | 45 | February1,2019 | January28,2022 | ||||||
| ZhangXuanming | Independentdirector | Incumbent | Male | 44 | February1,2019 | January27,2025 | ||||||
| YuHongwei | Chairmanofthe | Incumbent | Female | 56 | July22,2019 | January27,2025 |
SupervisoryCommittee
| SupervisoryCommittee | ||||||||||||
| HeDi | Supervisor | Incumbent | Male | 45 | February1,2019 | January27,2025 | ||||||
| LiWen | Supervisor | Incumbent | Female | 43 | February1,2019 | January27,2025 | ||||||
| WangXuejun | Deputygeneralmanager | Incumbent | Male | 59 | February1,2019 | January28,2022 | ||||||
| HeYouli | Deputygeneralmanager | Incumbent | Male | 47 | February1,2019 | January27,2025 | ||||||
| LuoXue | ChiefFinancialOfficer | Incumbent | Male | 54 | February1,2019 | January27,2025 | ||||||
| GuiHongzhi | SecretaryoftheBoard,deputygeneralmanager | Incumbent | Male | 51 | February1,2019 | January27,2025 | ||||||
| Total | -- | -- | -- | -- | -- | -- | 2,093,886,539 | 0 | 109,586,000 | 0 | 1,984,300,539 | -- |
Duringthereportingperiod,isthereanyresignationofdirectorsandsupervisorsordismissalofseniorexecutivesduringtheirtermofoffice?
□Yes√NoChangesofdirectors,supervisors,andseniorexecutives
□Applicable√Notapplicable
2.ResumesofkeypersonnelTheprofessionalbackground,mainworkingexperienceandtheirmaindutiesintheCompanyofcurrentdirectors,supervisors,andseniorexecutives.
(1)DirectorsandindependentdirectorsMr.LiYongxin,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedhisbachelor’sdegreeinlawfromtheDepartmentofPoliticalScienceandPublicAdministration,PekingUniversityin1999.Mr.Lifoundedhisowncompanyineducationindustryinthesameyearandstartedtofocushisbusinessontrainingforpublicservicerecruitmentexaminationintheyearof2000.Uptonow,hehasaccumulatednearly20yearsofexperienceinR&D,teachingandbusinessmanagementinthefieldoftrainingforpublicservice
recruitment.From2005to2010,heservedasthegeneralmanagerofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,hewasthepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heservedastheChairmanofBoardofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedastheChairmanofBoardofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedastheChairmanofBoardofOffcnEducationTechnologyStockCo.,Ltd.Mr.WangZhendong,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedhisbachelor’sdegreeinlawfromtheDepartmentofPoliticalScienceandPublicAdministration,PekingUniversityin1999.Intheyearof2001,Mr.WangZhendongstartedhiscareerineducationindustry.From2005to2010,hewasinchargeoftheinternaloperationandmanagementofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,heservedastheexecutivedirectorandgeneralmanagerofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,hewasthedirectorandgeneralmanagerofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasthedirectorandgeneralmanagerofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasthedirectorandgeneralmanagerofOffcnEducationTechnologyStockCo.,Ltd.Mr.ShiLei,bornin1976,isaChinesecitizenandhasnopermanentresidencyabroad.Hestartedhiscareerineducationindustryintheyearof1999.From2005to2010,hewasinchargeofmarketingoperationsandmanagementofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,hewasthevicepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heservedasadirector,theChiefFinancialOfficerandsecretaryoftheBoardofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasadirectorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasadirectorofOffcnEducationTechnologyStockCo.,Ltd.
Ms.YiZiting,bornin1974,isaChinesecitizenandhasnopermanentresidencyabroad.Shehasamaster’sdegree.Ms.YiZitingswitchedhercareerpathtoeducationindustryintheyearof2011.From1994to2004,sheservedsuccessivelyasatechnicianandanassistantengineerinZhuzhouSmeltingGroupCo.,Ltd.From2007to2011,shewastheheadoflegaldepartmentofChinaCropProtectionIndustryAssociation(CCPIA).Startingfrom2011,Ms.YiZitinghasbeensuccessivelyholdingthepostsofheadofTeachingEvaluationandManagementCommittee,assistantpresident,andassociatepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,sheservedasadirectorofBeijingOffcnEducationTechnologyStock
Co.,Ltd.FromDecember2018topresent,shehasservedasthechairmanoftheSupervisoryCommitteeofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,shehasservedasadirectorofOffcnEducationTechnologyStockCo.,Ltd.Ms.ChenYuqin,bornin1965,isaChinesecitizenandhasnopermanentresidencyabroad.SheisasenioreconomistandamemberofCPC.Shegotabachelor’sdegreeineconomicsfromRenminUniversityofChinaasafull-timestudentandwasanon-the-jobgraduatestudentinTsinghuaUniversity.FromAugust1987toMarch1992,sheworkedasateacherinTsinghuaUniversity.FromApril1992toAugust2005,sheworkedinastate-ownedbank,andservedsuccessivelyasthedeputydepartmentmanagerofthesub-branch(inchargeofwork),thedepartmentmanager(creditapproverandtheofficedirectoroftheRiskManagementandInternalControlCommittee),thesub-branchmanager(andthePartybranchsecretary).FromAugust2005toDecember2020,Sheworkedinthejoint-stockbank,andservedsuccessivelyasafull-timeapproverinthebranch,assistantmanagerofthesub-branch(inchargeofwork),managerofthesub-branch(andthePartybranchsecretary)andetc.SheretiredattheendofDecember2020.FromAugust4,2021topresent,shehasbeenworkingasanon-independentdirectorofHengxinShambalaCultureCo.,Ltd.FromJanuary2022topresent,shehasbeenservingasanindependentdirectorofOffcnEducationTechnologyStockCo.,Ltd.
Mr.JiangTao,bornin1974,isaChinesecitizenandhasnopermanentresidencyabroad,apostdoctorineconomicsfromSichuanUniversity.HeiscurrentlyanassociateprofessorofSouthwesternUniversityofFinanceandEconomics,deputydirectoroftheFinanceDepartmentofAccountingInstitute,andfinancialconsultantforSichuanTradePetroleumEnergyCo.,Ltd.andDopplerElevatorCo.,Ltd.FromSeptember2020topresent,hehasbeenservingasanindependentdirectorofChengduXinzhuRoad&BridgeMachineryCo.,Ltd.FromJanuary2022topresent,hehasbeenservingasanindependentdirectorofOffcnEducationTechnologyStockCo.,Ltd.
Mr.ZhangXuanming,bornin1978,isaChinesecitizenandhasnopermanentresidencyabroad.Hehasamaster’sdegreeandisqualifiedasaChineselawyer.From2003to2005,heworkedasafull-timelawyerinBeijingWeizhengLawFirm.From2005to2010,hewasapartnerofBeijingHechuanLawFirm.FromApril2017topresent,hehasservedasthedirectorofBeijingMeixinLawFirm.FromJuly2013topresent,hehasservedasasupervisorofTonglingFriendshipRealEstateCo.,Ltd.FromOctober2015topresent,hehasservedasasupervisorofHebeiXinmiaoTourismDevelopmentCo.,Ltd.FromFebruary2019topresent,hehasservedasanindependentdirectorofOffcnEducationTechnologyStockCo.,Ltd.
(2)Supervisors
Ms.YuHongwei,bornin1966,isaChinesecitizenandhasnopermanentresidencyabroad.Shehasa
bachelor’sdegree.From1985to1995,Ms.YuHongweiservedasaNavalOfficer.From1995to2002,shewasthechiefrepresentativeofGATXBeijingOffice.From2002to2008,sheservedastheadministrativedirectoroftheZhuoyueCollegeintheUniversityofInternationalBusinessandEconomics.From2008to2013,sheworkedfortheChineseAcademyofScienceasthedirectorofSeniorTalentsDepartmentinthePersonnelExchangeandDevelopmentCenter,thenasthedeputyPartysecretary,andchairmanofTradeUnion.From2013toOctober2015,Ms.YuHongweiservedasadepartmentdirectorofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,shesuccessivelyheldthepostsofdepartmentdirector,thesecretaryofPartyBranchandthesecretaryofPartyCommitteeofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,shehasservedasthesecretaryofPartyCommitteeofBeijingOffcnEducationTechnologyCo.,Ltd.FromJuly2019topresent,shehasservedastheChairmanoftheSupervisoryCommitteeofOffcnEducationTechnologyStockCo.,Ltd.Mr.HeDi,bornin1977,isaChinesecitizenandhasnopermanentresidencyabroad.Hereceivedabachelor’sdegree.From2010,heservedasanassistantpresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,heworkedasasupervisorofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,hehasservedasasupervisorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasasupervisorofOffcnEducationTechnologyStockCo.,Ltd.
Ms.LiWen,bornin1979,isaChinesecitizenandhasnopermanentresidencyabroad.Sheownsamaster’sdegreeandisqualifiedasaChineselawyer.Shestartedherjourneyineducationindustryintheyearof2007.From2007to2010,sheworkedasateacherandR&DstaffinBeijingOffcnOnlineEducationTechnologyCo.,Ltd.Startingfrom2010,shefirstlyservedasateacher,thenthedean’sassistantandsuccessivelythedeanofInterviewTrainingDepartmentinOffcnLtd.FromNovember2015toDecember2018,sheservedasthesupervisorrepresentingemployeesofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromDecember2018topresent,shehasservedasasupervisorofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,shehasservedasasupervisorofOffcnEducationTechnologyStockCo.,Ltd.
(3)SeniorExecutives
PleaseseetheaboveforMr.WangZhendong’sresume.
Mr.HeYouli,bornin1975,isaChinesecitizenandhasnopermanentresidencyabroad.Hestartedworkingineducationindustryintheyearof1999.From2005to2010,hewasinchargeofmarketingoperationsofBeijingOffcnOnlineEducationTechnologyCo.,Ltd.From2010toNovember2015,heservedasanassistantpresidentandsuccessivelythevicepresidentofBeijingOffcnFutureEducationConsultancyCo.,Ltd.FromNovember2015toDecember2018,hewasemployedasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyStock
Co.,Ltd.FromDecember2018topresent,hehasservedasthedeputygeneralmanagerofBeijingOffcnEducationTechnologyCo.,Ltd.FromFebruary2019topresent,hehasservedasthedeputygeneralmanagerofOffcnEducationTechnologyStockCo.,Ltd.
Mr.LuoXue,bornin1968,isaChinesecitizenandhasnopermanentresidencyabroad.Heownsabachelor’sdegreeandisacertifiedpublicaccountant,aregisteredassetappraiserandanintermediateaccountant.FromJuly1991toSeptember2000,heworkedattheZhongyuanOilFieldofSinopec.FromOctober2000toJanuary2011,hewassuccessivelyemployedbyBeijingPan-ChinaCPALtd.,DeloitteToucheTohmatsuCPALtd.andReandaCertifiedPublicAccountantsLLP,whereheheldthepostsfromauditmanagertotechnicalpartner.FromFebruary2011toAugust2014,heservedasthefinancialdirectorandsecretaryoftheBoardofCortechDrillingEquipmentLtd.FromAugust2014toDecember2016,hewasemployedastheCFOofLandOceanEnergyServicesCo.,Ltd.From2017toDecember2018,hewastheheadofthefinancialdepartmentofBeijingOffcnEducationTechnologyStockCo.,Ltd.FromFebruary2019topresent,hehasservedasthefinancialdirectorofOffcnEducationTechnologyStockCo.,Ltd.
Mr.GuiHongzhi,bornin1971,isaChinesecitizenandhasnopermanentresidencyabroad.HeownsanMBAdegree.FromApril2003toAugust2006,heworkedattheCREDHoldingCo.,Ltd.asthemanagerofSecuritiesDepartment.Inthesamecompany,heservedasthedeputygeneralmanagerandsecretaryoftheBoardfromAugust2006toJuly2015.FromSeptember2015toDecember2018,hewasemployedasheadofSecuritiesAffairsDepartmentbyBeijingOffcnEducationTechnologyStockCo.,Ltd.FromFebruary2019topresent,hehasservedasthedeputygeneralmanagerandsecretaryoftheBoardofOffcnEducationTechnologyStockCo.,Ltd.Positionsheldinshareholdersentities:
√Applicable□Notapplicable
Name
| Name | Nameoftheshareholderentity | Positionintheshareholderentity | Startdate | Enddate | Receivingpaymentfromtheshareholderentityornot? |
| WangZhendong | BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | ExecutivePartner | April10,2018 | Todate | N/A |
| Particularsaboutholdingpositioninshareholdersentities | None | ||||
Employmentinothercompanies
√Applicable□Notapplicable
| Name | Nameofthecompany | Positionsheldinthecompany | Startdate | Enddate | Receivingpaymentfromthecompanyor |
not?
| not? | |||||
| LiYongxin | BeijingOffcnEducationTechnologyCo.,Ltd | ChairmanoftheBoard | December27,2018 | Todate | Yes |
| LiYongxin | KunmingWuhuaOffcnTrainingSchool | Presidentofthecouncil | January18,2015 | Todate | N/A |
| LiYongxin | BeijingOffcnFutureGroupCo.,Ltd. | Supervisor | June13,2019 | Todate | N/A |
| LiYongxin | YanyuanAlumniInvestmentManagementCo.,Ltd. | Supervisor | January21,2019 | Todate | N/A |
| LiYongxin | BeijingHaidianOffcnTrainingSchool | Presidentofthecouncil | July22,2009 | Todate | N/A |
| LiYongxin | BeijingHaidianBaoquanFinancialTrainingCenter | Presidentofthecouncil | May19,2014 | Todate | N/A |
| LiYongxin | UrumqiShayibakeOffcnTrainingCenter | ChairmanoftheBoard | January13,2014 | Todate | N/A |
| ShiLei | BeijingOffcnEducationTechnologyCo.,Ltd | Director | December27,2018 | Todate | Yes |
| ShiLei | HainanHuiyouFilm&TVTechnologyCo.,Ltd. | Director | March10,2017 | Todate | N/A |
| ShiLei | TaiyuanHi-TechZoneOffcnTrainingSchool | Councilmember | March4,2013 | Todate | N/A |
| ShiLei | UrumqiShayibakeOffcnTrainingCenter | Councilmember | January13,2014 | Todate | N/A |
| ShiLei | GuangxiOrientalDreamlandTourism&HealthcareInvestmentCo.,Ltd. | Director | February24,2021 | Todate | N/A |
| WangZhendong | BeijingOffcnEducationTechnologyCo.,Ltd. | Director | December27,2018 | Todate | Yes |
| WangZhendong | BeijingOffcnFutureEducationTechnologyCo.,Ltd | Director | March25,2020 | Todate | N/A |
| WangZhendong | Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | Executivedirectorandgeneralmanager | January10,2022 | Todate | N/A |
| WangZhendong | Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | Executivedirectorandgeneralmanager | January10,2022 | Todate | N/A |
| WangZhendong | BeijingOffcnCenturyEducationTechnologyCo.,Ltd | Executivedirectorandgeneral | November11,2021 | Todate | N/A |
manager
| manager | |||||
| WangZhendong | BeijingXindezhiyuanEnterpriseManagementConsultancyCo.,Ltd. | Supervisor | August6,2014 | Todate | N/A |
| WangZhendong | BeijingOffcnXinzhiyuNetworkTechnologyCo.,Ltd. | Supervisor | May8,2012 | Todate | N/A |
| WangZhendong | BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | Executivedirectorandgeneralmanager | December4,2020 | Todate | N/A |
| WangZhendong | TaiyuanHi-TechZoneOffcnTrainingSchool | Presidentofthecouncil | March4,2013 | Todate | N/A |
| WangZhendong | TangshanLunanOffcnTrainingSchool | Presidentofthecouncil | March1,2013 | Todate | N/A |
| WangZhendong | UrumqiShayibakeOffcnTrainingCenter | Councilmember | January13,2014 | Todate | N/A |
| ChenYuqin | ShanghaiYuqinyangdeInformationTechnologyConsultingCo.,Ltd. | Supervisor | March15,2021 | Todate | Yes |
| ChenYuqin | HengxinShambalaCultureCo.,Ltd. | Director | August5,2021 | Todate | Yes |
| JiangTao | ChengduXinzhuRoad&BridgeMachineryCo.,Ltd. | Independentdirector | October16,2019 | Todate | Yes |
| JiangTao | SouthwesternUniversityofFinanceandEconomics | Professor | September1,2008 | Todate | Yes |
| TongYan | BeijingInstituteofTechnology | Professor | July01,2016 | Todate | Yes |
| TongYan | HebeiJinniuChemicalIndustryCo.,Ltd. | Independentdirector | March16,2016 | Todate | Yes |
| TongYan | BeijingInteractiveNetworkTechnologyCo.,Ltd. | Independentdirector | October25,2019 | Todate | Yes |
| TongYan | ChinaFundManagementCo.,Ltd. | Independentdirector | July16,2020 | Todate | Yes |
| TongYan | FinancialStreetPropertyManagementCo.,Ltd. | Independentdirector | June9,2020 | Todate | Yes |
| HeDi | BeijingOffcnEducationTechnologyCo.,Ltd | Supervisor | December27,2018 | Todate | Yes |
| HeDi | BeijingOffcnFutureEducationTechnologyCo.,Ltd. | Supervisor | March25,2020 | Todate | N/A |
| HeDi | TianjinHexiOffcnTrainingSchoolCo.,Ltd. | Director | July15,2019 | Todate | N/A |
| HeDi | YuxiOffcnTrainingSchoolCo.,Ltd. | Director | December24,2018 | Todate | N/A |
HeDi
| HeDi | Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | Supervisor | January10,2022 | Todate | N/A |
| HeDi | Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | Supervisor | January10,2022 | Todate | N/A |
| HeDi | BeijingOffcnCenturyEducationTechnologyCo.,Ltd. | Supervisor | November11,2021 | Todate | N/A |
| HeDi | BeijingOffcnFutureResearchEducationTechnologyCo.,Ltd. | Supervisor | December4,2020 | Todate | N/A |
| ZhangXuanming | HebeiXinmiaoTourismDevelopmentCo.,Ltd | Supervisor | October28,2015 | Todate | Yes |
| YiZiting | BeijingOffcnEducationTechnologyCo.,Ltd | ChairmanoftheSupervisoryCommittee | December27,2018 | Todate | Yes |
| LiWen | BeijingOffcnEducationTechnologyCo.,Ltd | Supervisor | December27,2018 | Todate | Yes |
| Particularsaboutholdingpositionsinothercompanies | None | ||||
Detailsofpenaltiesinthepastthreeyearsfromsecuritiesregulatoryinstitutionstodirectors,supervisors,andseniorexecutiveswhoarecurrentlyholdingthepositionsintheCompanyandthosewhohadresignedfromtheCompanyduringthereportingperiod
√Applicable□NotapplicableOnDecember25,2021,theCompanywasfiledandinvestigatedbyChinaSecuritiesRegulatoryCommission(CSRC)onsuspicionoffailingtodiscloserelatedpartytransactioninformationandviolatingthelawsandregulationsofinformationdisclosure.OnApril27,2022,therelevantpartiesreceivedtheofficialDecisionofAdministrativePenalty.DuetotheCompany’sfailuretotruthfullydiscloserelated-partyrelationshipsandrelated-partytransactionsasrequired,theAnhuiSecuritiesRegulatoryBureauoftheCSRCdecidedtogiveawarningtoandimposeafineofRMB2millionyuanontheCompany’sChairmanoftheBoardofDirectorsLiYongxinandDirectorShiLeirespectively,giveawarningtoandimposeafineofRMB1millionyuanonWangZhendong,theDirectorandGeneralManageroftheCompany,andgiveawarningtoandimposeafineofRMB
0.5millionyuanontheCompany’sCFOLuoXueandtheSecretaryoftheBoardGuiHongzhirespectively.
3.Remunerationfordirectors,supervisorsandseniorexecutivesThedecision-makingprocedure,determinationbasisandactualpaymentofremunerationfordirectors,supervisors
andseniorexecutivesInordertofurtherimprovetheremunerationsystemfortheCompany’sdirectors,supervisors,andseniorexecutives,andfullymotivatetheenthusiasmforworkoftheCompany’sdirectors,supervisors,andseniorexecutives,theCompanyformulatedtheRegulationsofRemunerationSystemofDirectors,Supervisors,andSeniorExecutives.OnJune15,2021,theshareholders’meetingreviewedandapprovedtheProposalonDeterminingtheRemunerationPlanintheyearof2021forDirectors,SupervisorsandSeniorExecutivesoftheCompany,whichfurtherclarifiedtheremunerationplanfordirectors,supervisorsandseniorexecutives.Theallowancesforindependentdirectorsareissuedquarterly.TheCompanydoesnotprovideadditionalallowancesforinternaldirectorsorinternalsupervisors.TheremunerationoftheCompany’sinternaldirectors,internalsupervisorsandseniorexecutivesisissuedaccordingtotheCompany’ssalarysystem.Remunerationofdirectors,supervisors,seniorexecutivesduringthereportingperiod:
Unit:RMB10thousand
Name
| Name | Position | Gender | Age | TenureStatus | Totalbefore-taxremunerationgainedfromtheCompany | WhethergainedremunerationfromtherelatedpartiesoftheCompany |
| LiYongxin | ChairmanoftheBoard | Male | 46 | Incumbent | 48.21 | N/A |
| WangZhendong | Director,generalmanager | Male | 46 | Incumbent | 51.38 | N/A |
| ShiLei | Director | Male | 46 | Incumbent | 62.88 | N/A |
| YiZiting | Director | Female | 48 | Incumbent | 50.23 | N/A |
| WangQiang | Independentdirector | Male | 45 | resigned | 12.00 | N/A |
| TongYan | Independentdirector | Female | 45 | resigned | 12.00 | N/A |
| ZhangXuanming | Independentdirector | Male | 44 | Incumbent | 12.00 | N/A |
| YuHongwei | ChairmanoftheSupervisoryCommittee | Female | 56 | Incumbent | 18.00 | N/A |
| HeDi | Supervisor | Male | 45 | Incumbent | 52.68 | N/A |
| LiWen | Supervisor | Female | 43 | Incumbent | 49.83 | N/A |
| WangXuejun | Deputygeneralmanager | Male | 59 | resigned | 71.62 | N/A |
| HeYouli | Deputygeneralmanager | Male | 47 | Incumbent | 63.34 | N/A |
| LuoXue | Chieffinancialofficer | Male | 54 | Incumbent | 59.07 | N/A |
| GuiHongzhi | SecretaryoftheBoard, | Male | 51 | Incumbent | 48.80 | N/A |
deputygeneralmanager
| deputygeneralmanager | ||||||
| Total | -- | -- | -- | -- | 612.04 | -- |
SectionVI.Performanceofdutiesbydirectorsduringthereportingperiod
1.Boardmeetingsduringthereportingperiod
| Session | Conveningdate | Disclosuredate | Resolution |
| The17thMeetingofthe5thBoardofDirectors | January26,2021 | January27,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe17thMeetingofthe5thBoardofDirectors(No.2021-009)disclosedonwww.cninfo.com.cn. |
| The18thMeetingofthe5thBoardofDirectors | April28,2021 | April29,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe18thMeetingofthe5thBoardofDirectors(No.2021-019)disclosedonwww.cninfo.com.cn. |
| The19thMeetingofthe5thBoardofDirectors | May28,2021 | May29,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe19thMeetingofthe5thBoardofDirectors(No.2021-034)disclosedonwww.cninfo.com.cn. |
| The20thMeetingofthe5thBoardofDirectors | June2,2021 | June3,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe20thMeetingofthe5thBoardofDirectors(No.2021-039)disclosedonwww.cninfo.com.cn. |
| The21stMeetingofthe5thBoardofDirectors | August30,2021 | August31,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe21stMeetingofthe5thBoardofDirectors(No.2021-058)disclosedonwww.cninfo.com.cn. |
| The22ndMeetingofthe5thBoardofDirectors | September26,2021 | September27,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe22ndMeetingofthe5thBoardofDirectors(No.2021-062)disclosedonwww.cninfo.com.cn. |
| The23rdMeetingofthe5thBoardofDirectors | October29,2021 | -- | ReviewedandapprovedtheThirdQuarter2021ReportoftheCompany(No.2021-067) |
| The24thMeetingofthe5thBoardofDirectors | December6,2021 | December7,2021 | Fordetails,refertotheAnnouncementonResolutionsofthe24thBoardMeetingofthe5thBoardofDirectors(No.2021-074)disclosedonwww.cninfo.com.cn. |
2.Attendanceofdirectorsatboardmeetingsandshareholders’meetings
Attendanceofdirectorsatboardmeetingsandshareholders’meetings
| Attendanceofdirectorsatboardmeetingsandshareholders’meetings | |||||||
| Director | Sessionsrequiredtoattendduringthereportingperiod(times) | Attendanceinperson(times) | Attendancebywayoftelecommunication(times) | Entrustedpresence(times) | Absence(times) | Non-attendanceinpersonfortwoconsecutive(times) | Attendanceinshareholders’meetings(times) |
| LiYongxin | 8 | 8 | 0 | 0 | 0 | N/A | 1 |
| WangZhendong | 8 | 8 | 0 | 0 | 0 | N/A | 2 |
| ShiLei | 8 | 8 | 0 | 0 | 0 | N/A | 2 |
| YiZiting | 8 | 8 | 0 | 0 | 0 | N/A | 2 |
| WangQiang | 8 | 6 | 2 | 0 | 0 | N/A | 2 |
| TongYan | 8 | 1 | 7 | 0 | 0 | N/A | 1 |
| ZhangXuanming | 8 | 3 | 5 | 0 | 0 | N/A | 2 |
Explanationofnon-attendanceinpersonfortwoconsecutivetimesNone
3.ParticularsaboutdirectorsobjectingonrelevantissuesoftheCompanyWhethertherewereanyobjectionsonrelevantissuesoftheCompanyfromdirectors
□Yes√NoDuringthereportingperiod,therewerenoobjectionsfromdirectorsonrelevantissuesoftheCompany.
4.OtherexplanationsontheperformanceofdutiesbydirectorsWhetherrelevantadvicetotheCompanyfromdirectorswereadopted
√Yes□NoExplanationofadvicefromdirectorstotheCompanybeingadoptedornotbeingadoptedDuringthereportingperiod,theCompany’sdirectorsscrupulouslyexercisedtheirrightsandperformedtheirdutiesinstrictaccordancewithrelevantregulations.TheycarefullyreviewedtheissuesraisedbytheBoardofDirectorsandtheprofessionalcommitteesandactivelyexpressedopinionsandviews.Withrichprofessionalexperience,theindependentdirectorsoftheCompanyexpressedtheirthoughtful,rationalandindependentopinionsoneachissuethatrequiredtheirjudgements.TheyalsoputforwardmanyinstructiveandreasonablesuggestionsontheCompany’sdevelopmentstrategyandstandardizedoperation,whichplayedacatalyticroleinscientificdecision-makingoftheCompany.Formoredetails,pleaserefertothe2021IndependentDirectors’DebriefingReportpublishedonwww.cninfo.comonthesamedayasthisannualreport.
SectionVII.PerformanceofdutiesbyspecialcommitteesundertheBoardduringthereportingperiod
Committee
| Committee | Member | Timesofmeetings | Conveningdate | Contentsofmeetings | Importantcommentsandsuggestionsputforward | Otherparticularsabouttheperformanceofduties | Detailsofobjections（ifany） |
| AuditCommittee | TongYan,WangQiang,ShiLei | 7 | January29,2021 | 2020FourthQuarterInternalAuditReport | Aftercarefulreviewofthe2020FourthQuarterInternalAuditReportissuedbytheinternalauditdepartment,itisbelievedthatthepreparationoftheCompany'sfinancialreportforthisperiodcomplieswiththerelevantprovisionsoflawsandregulations,ArticlesofCorporationandtheCompany'sinternalmanagementregulations.Internalcontrolprocessescaneffectivelypreventoperationalrisksandregulatefinancialprocesses. | Performingdutiesinstrictaccordancewithlawsandregulations | None |
| February26,2021 | 2020AnnualInternalAuditReport | The2020AnnualInternalAuditReportpreparedbytheCompany'sinternalauditdepartmentscreenedtheinternalcontrolnodes,i.e.theapplicationsandapprovalsofvariousbusinessprocesses.Theoperationsbasicallycompliedwiththerequirementsofinternalcontrolregulations. | Performingdutiesinstrictaccordancewithlawsandregulations | None | |||
| April26,2021 | 1.2020AnnualSelf-evaluationReportonInternalControl | 1.The2020AnnualSelf-evaluationReportonInternalControlobjectivelyevaluatedtheeffectivenessofinternalcontrolonthereportingbasedateonthe | Performingdutiesinstrictaccordancewithlawsand | None |
2.Reviewon2020AnnualAuditReport
3.ProposalontheEstimatedAmountofDailyRelated-PartyTransactionsin2021
4.StatementontheDifferenceBetweentheActualNetProfitandthePromisedNetProfitin2020ofBeijingOffcnEducationTechnologyCo.,Ltd
5.ProposalonappointmentoftheAuditInstitutionin2021
6.JobEvaluationoftheAuditInstitutionin2020
7.FullTextandMainBodyofthe2021FirstQuarter
| 2.Reviewon2020AnnualAuditReport3.ProposalontheEstimatedAmountofDailyRelated-PartyTransactionsin20214.StatementontheDifferenceBetweentheActualNetProfitandthePromisedNetProfitin2020ofBeijingOffcnEducationTechnologyCo.,Ltd5.ProposalonappointmentoftheAuditInstitutionin20216.JobEvaluationoftheAuditInstitutionin20207.FullTextandMainBodyofthe2021FirstQuarter | basisofinternalcontrol,dailysupervisionandspecialsupervision,andfoundnomaterialweaknessofinternalcontrolovertheCompany'sfinancialreportsornon-financialreports.TheCompanyhasmaintainedeffectiveinternalcontrolinallmajoraspectsinaccordancewiththeenterpriseinternalcontrolstandardsystemandrelatedregulations.2.There-appointmentofBakerTillyChinaCertifiedPublicAccountants(LLP)toaudittheCompany’s2021FinancialReportandInternalControlReportguaranteesthecontinuityoftheCompany’sauditwork.3.Afterconductingsufficientcommunicationanddiscussions,theauditcommitteeprovidedreasonablesuggestionsforthe2021firstquarterinternalauditworkinstrictaccordancewiththeWorkingRulesoftheAuditCommitteeandrelevantlawsandregulations. | regulations |
Report
8.2021FirstQuarterInternalAuditReport
| Report8.2021FirstQuarterInternalAuditReport | |||||||
| August20,2021 | 1.FullTextandAbstractof2021Semi-annualReport2.2021SecondQuarterInternalAuditReport | 1.TheCompany'ssemi-annualreportobjectivelyandfaithfullyreflectstheCompany'sfinancialstatusandoperatingresults.2.The2021SecondQuarterInternalAuditReportwasreviewedandconfirmedtobeeffectiveforpreventingoperationalrisksandstandardizingfinancialprocesses. | Performingdutiesinstrictaccordancewithlawsandregulations | None | |||
| October25,2021 | 1.FullTextandMainBodyof2021ThirdQuarterReport2.2021ThirdQuarterInternalAuditReport | 1.TheCompany'sthirdquarterreportobjectivelyandfaithfullyreflectstheCompany'sfinancialstatusandoperatingresults.2.TheinternalauditworkoftheCompanyshouldbecarriedoutbasedontheCompany’sactualsituation. | Performingdutiesinstrictaccordancewithlawsandregulations | None | |||
| December30,2021 | 2022AnnualInternalAuditPlan | Aimingatpreventingoperationalrisks,standardizingfinancialprocesses,andimprovingmanagementlevels,the2022AnnualInternalAuditPlanpreparedbytheinternalauditdepartmentmeetstheneedsoftheCompany'sdevelopment. | Performingdutiesinstrictaccordancewithlawsandregulations | None | |||
| RemunerationandAppraisalCommittee | WangQiang,TongYan,WangZhendong | 1 | April16,2021 | Proposalonthe2021RemunerationPlanfor | Aftercarefuldiscussion,thecommitteebelievesthattheremunerationplanfortheCompany'sdirectors, | Performingdutiesinstrictaccordance | None |
theCompany’sDirectors,SupervisorsandSeniorExecutives
| theCompany’sDirectors,SupervisorsandSeniorExecutives | supervisorsandseniorexecutivesin2021isformulatedbasedontheremunerationleveloftheCompany'sindustryandtheitsactualoperatingconditions,whichisbeneficialtotheCompany’ssustainabledevelopment. | withlawsandregulations | |||||
| NominationCommittee | ZhangXuanming,TongYan,LiYongxin | 1 | April15,2021 | ProposalonthePerformanceofDutiesofProfessionalCommitteesUndertheBoardofDirectors | ThecommitteereviewedtheperformanceofdutiesofthefourprofessionalcommitteesundertheBoardofDirectorsduringthereportingperiod. | Performingdutiesinstrictaccordancewithlawsandregulations | None |
| StrategyandInvestmentCommittee | LiYongxin,ShiLeiandWangQiang | 1 | December1,2021 | ProposalonTerminationoftheNon-publicIssuanceofASharesandWithdrawalofApplicationDocuments | Afterfulldiscussionbytheparticipatingmembers,itisconsideredthattheterminationofthenon-publicissuanceofAsharesisaprudentdecisionmadebytheCompanyaftercomprehensiveconsiderationofthecapitalmarketenvironment,thedevelopmentofthefund-raisingproject,theactualsituationoftheCompanyandthetimingoffinancing,whichwillnothaveasignificantimpactonthenormaloperationandsustainableandstabledevelopmentoftheCompanyandwillnotbedetrimentaltotheinterestsoftheCompany. | Performingdutiesinstrictaccordancewithlawsandregulations | None |
SectionVIII.PerformanceofdutiesbytheSupervisoryCommittee
WerethereanyrisksintheCompanyaccordingtothesupervisionoftheSupervisoryCommitteeduringthereportingperiod?
□Yes√NoTheSupervisoryCommitteeraisednoobjectiontomattersundersupervisionduringthereportingperiod.SectionIX.EmployeesoftheCompany
1.Numberofemployees,roletype,andeducationalbackground
Numberofcurrentemployeesoftheparentcompanyattheendofthereportingperiod(person)
| Numberofcurrentemployeesoftheparentcompanyattheendofthereportingperiod(person) | 0 |
| Numberofcurrentemployeesofthemajorsubsidiariesattheendofthereportingperiod(person) | 36,143 |
| Totalnumberofcurrentemployeesattheendofthereportingperiod(person) | 36,143 |
| TotalnumberofemployeesreceivingremunerationfromtheCompanyduringthereportingperiod(person) | 36,143 |
| Numberofretiredemployeesforwhichtheparentcompanyandmajorsubsidiariesneedtobeartheexpenses(person) | 0 |
| Roletype | |
| Category | Number(person) |
| Managementpersonnel | 3,619 |
| R&Dstaff | 2,452 |
| Teachers | 14,590 |
| Customerservicestaff | 4,599 |
| Marketingstaff | 10,883 |
| Total | 36,143 |
| Educationalbackground | |
| Category | Number(person) |
| Master’sdegreeandabove | 6,537 |
| Bachelor’sdegree | 26,950 |
| Postsecondaryspecialisedcollege | 2,634 |
| Secondaryspecialisedschoolandbelow | 22 |
| Total | 36,143 |
2.RemunerationpolicyDuringthereportingperiod,theCompany,basedonthepostvalue,setsalarydifferencescientificallyandfurtherimprovedtheperformanceappraisalsystemofhumanresources.TheCompanyregularlyandcomprehensively
evaluatedemployees’workingskillsandtheirrecognitionofcorporateculturebyanevaluationmethodbasedonquantitativeindicatorsofperformanceandqualitativestandardstoensurethatboththeworkresultsandgrowthofemployeesweregivenattentionto.TheCompanyattractsandretainsitscoretalentsthroughadiversifiedperformance-orientedincentivemechanism,sothatthecorepersonnelcanbemorecloselyalignedwiththeinterestsoftheCompanyanditsshareholders.Inthisway,theCompany'slong-termoperatingperformancewillbedriventogrowcontinuously.
3.TrainingplanDuringthereportingperiod,theCompanycontinuouslyinvestedhigh-qualityresourcesinoptimizingthetrainingsystemandenhancingthecapabilitiesoftheteachingteam.Employeesarewellsupportedwithknowledgeresourcesandabundantlearningchoicestodeveloptheirtalentsandcareers.UnderthenormalizationofCOVID-19preventionandcontrol,theCompanyacceleratedthetrendofonlinelearningforallstaff.Byintegratingonlineandofflineresources,theCompanyhasrealizedtheplanofthewholecurriculumsystemsharing,empoweringemployeeswithmoreopportunitiestolearnandgrow.Intermsoftrainingorganizing,theCompanymobilizedhumanresourcesdepartmentbothattheheadquarterandbranchesaswellasmanagementpersonneltoensurethatthestafftrainingsarewellorganized.Thehumanresourcesdepartmentattheheadquarterareresponsibleforthe“planning,researchandcoordination”oftheCompany’soveralltraining,focusingontheconstructionoftrainingresourcesandtrainingplatformaswellasthedesignandimplementationofkeytalenttrainingprojects.Thehumanresourcesdepartmentsofbranchesareresponsibleforexploringthetrainingneedsofemployees,providingtrainingsolutions,executingthetrainingplans,andfocusingonthedaily-basisoperationandtraining.Managementpersonnelareresponsibleforemployees’ability-building,takingtrainingofteammembersaspartoftheirworktasks,soastodevelopmoretalentsfortheCompany.
4.Laboroutsourcing
□Applicable√NotapplicableSectionX.ProfitdistributionoftheCompanyandconversionofcapitalreserveintosharecapitalTheformulation,implementationandadjustmentoftheprofitsdistributionpolicy,especiallythecashdividendspolicy,duringthereportingperiod.
□Applicable√Notapplicable
TheCompanywasprofitableduringthereportingperiodandtheparentcompany’sprofitavailablefordistributiontoshareholderswaspositivebutdidnotproposeaplanforthedistributionofcashdividend.
□Applicable√Notapplicable
Profitdistributionandconversionofcapitalreserveintosharecapitalduringthereportingperiod
□Applicable√NotapplicableTheCompanyplansnottodistributecashdividendsorbonusshares,nortoincreasesharecapitalbyconvertingcapitalreserve.SectionXI.ImplementationoftheCompany’sequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresApplicable√NotapplicableTherewerenoequityincentiveplan,employeestockownershipplanorotheremployeeincentivemeasuresbeingimplementedduringthereportingperiodoftheCompany.SectionXII.EstablishmentandimplementationoftheCompany’sinternalcontrolsystemduringthereportingperiod
1.TheestablishmentandimplementationoftheCompany’sinternalcontrolDuringthereportingperiod,inaccordancewiththeBasicStandardsforEnterpriseInternalControlaswellasitscorrespondingsupportingregulations,andtheCompany’sRegulationsofInternalAudit,basedonregularsupervisionandspecialsupervisionofinternalcontrol,theCompany,adheringtotherisk-orientedprinciple,continuouslyimprovesandoptimizesitsinternalcontrolsystemtoadapttotheever-changingexternalenvironmentandmeettheinternalmanagementrequirements.TheCompany’sBoardofDirectorsestablishes,improvesandeffectivelyimplementsinternalcontrol,evaluatesitseffectiveness,andtruthfullydisclosestheevaluationreportoninternalcontrol,inaccordancewiththeregulationsoftheCompany’sinternalcontrolstandardsystem;theSupervisoryCommitteesupervisestheBoardofDirectorsontheestablishmentandimplementationofinternalcontrol.TheCompany’smanagementpersonneltakeresponsibilityfororganizingandleadingtheregularoperationoftheCompany’sinternalcontrol.TheCompanyestablishedaninternalauditdepartmentequippedwithfull-timeauditorsandformulatedinternalaudit-relatedmanagementregulations.TheinternalauditdepartmentisresponsibleforandreportstotheAuditCommitteeoftheBoardofDirectors;inaccordancewiththerequirementsofnationallaws,rulesandregulations,theinternalauditdepartmentindependentlyandobjectivelyexercisesitspowersofinternalaudit,inspectsandsupervisestheinternalcontroloftheCompanyanditscontrolledsubsidiaries,conductsinternalauditfortheirfinanceandoperations,providesauditsuggestions,,andimplementstheinternalcontrolrectification.
2.ParticularsaboutmaterialweaknessfoundintheCompany’sinternalcontrolduringthereportingperiod
□Yes√NoSectionXIII.TheCompany’smanagementandcontrolofsubsidiariesduringthereportingperiodNotapplicable
SectionXIV.Self-evaluationreportorauditreportoninternalcontrols
1.Self-evaluationreportoninternalcontrols
Disclosuredateoffulltextofself-evaluationreportoninternalcontrol
| Disclosuredateoffulltextofself-evaluationreportoninternalcontrol | April29,2022 | |
| Disclosureindexoffulltextofself-evaluationreportoninternalcontrol | CNINFO(www.cninfo.com.cn)OffcnEducationTechnologyCo.,Ltd.2021Self-evaluationReportonInternalControl | |
| ProportionofassetsevaluatedintotalassetsstatedintheconsolidatedfinancialstatementoftheCompany | 100.00% | |
| ProportionofoperatingincomeevaluatedintotaloperatingincomestatedintheconsolidatedfinancialstatementoftheCompany | 100.00% | |
| DeficiencyStandards | ||
| Category | FinancialReport | Non-FinancialReport |
| Qualitativecriteria | MaterialWeakness:onedeficiency,oracombinationofdeficienciesininternalcontrolthatmayresultinasignificantdeviationfromthecontrolobjectivesoftheCompany.Thosewiththefollowingcharacteristicsshouldberecognizedasmaterialweakness:①Fraudofdirectors,supervisorsandseniorexecutives;②Correctionofmisstatementinpreviouslyissuedfinancialstatements;③MaterialmisstatementincurrentfinancialstatementsthatarenotdetectedbytheCompany’sinternalcontrol;④InvalidsupervisionofinternalcontroloverfinancialreportingbytheCompany’sAuditCommitteeandinternalauditdepartment.SignificantDeficiency:onedeficiency,oracombinationofdeficienciesininternalcontrolthatislessseverethanamaterialweakness,yetmaystillresultinadeviationfromcontrolobjectivesoftheCompany.ControllableDeficiency:Otherinternalcontroldeficienciesthatdonotmeetthestandardsofmaterialweaknessorsignificantdeficiency. | MaterialWeakness:①SevereviolationsofnationallawsandregulationsintheCompany’soperation;②Negativenewsfrequentlydisclosedbythemediaandthenegativeimpacthasnotbeeneliminated;③Seriouslossofmiddleandseniormanagementpersonnelandseniortechnicalpersonnel;④Lackorineffectivenessofpolicyformajorbusiness;⑤RectificationsarenotmadeforthematerialweaknessesorsignificantdeficienciesintheCompany’sinternalcontrol.SignificantDeficiency:onedeficiency,oracombinationofdeficienciesininternalcontrolthatislesssevereorhasminoreconomicconsequencesthanamaterialweakness,yetmaystillresultinadeviationfromcontrolobjectivesoftheCompany.ControllableDeficiency:Otherinternalcontroldeficienciesthatdonotmeetthestandardsofmaterialweaknessorsignificantdeficiency. |
| Quantitativecriteria | MaterialWeakness:Misstatementsaccountformorethan5%oftotalprofits. | Refertothequantitativecriteriafortheevaluationofinternalcontrol |
SignificantDeficiency:Misstatementsaccountfor2%to5%(including5%)oftotalprofits.ControllableDeficiency:Misstatementsaccountforlessthan2%(including2%)oftotalprofits.
| SignificantDeficiency:Misstatementsaccountfor2%to5%(including5%)oftotalprofits.ControllableDeficiency:Misstatementsaccountforlessthan2%(including2%)oftotalprofits. | deficienciesinfinancialreports. | |
| Numberofmaterialweaknessesinthefinancialreport | 0 | |
| Numberofmaterialweaknessesinthenone-financialreport | 0 | |
| Numberofsignificantdeficienciesinthefinancialreport | 0 | |
| Numberofsignificantdeficienciesinthenon-financialreport | 0 | |
2.Auditreportoninternalcontrol
Applicable√Notapplicable
SectionXV.Specialactionsonself-examinationandrectificationofthelistedCompany’sgovernanceNotapplicable
Chapter5Environmentalandsocialresponsibilities
SectionI.Environmentalprotection
DothelistedCompanyanditssubsidiariesbelongtothemajorpollutantdischargeunitsannouncedbytheMinistryofEcologyandEnvironment？
□Yes√NoSituationsofreceivingadministrativepenaltyduetoenvironmentalissuesduringthereportingperiodNotapplicableOtherenvironmentalinformationdisclosedinreferencewithmajorpollutantdischargeunitsTheCompanyalwayspracticesitscorporatesocialresponsibilities,complieswithnationalandlocallawsandregulationsonenvironmentalprotectionandemissiontargets,conscientiouslyimplementsvariousenvironmentalprotectionmanagementregulations,andcontinuouslypromotesenergyconservation,emissionreductionandenvironmentalprotectionbypromotingpaperlessoperations.Atthesametime,theCompanyalsointegratesandimplementstheconceptofenvironmentalprotectionintoalllevelsofstrategicdecision-makingandbusiness,andencouragesitsemployeestocarryoutgreenvolunteeractivitiestojointlycontributetotheharmoniousdevelopmentofsociety.Duringthereportingperiod,theCompanyhadnoviolationsofenvironmentalprotectionlawsandregulationsandnodisputesoverpollutionaccidents,andwasnotsubjecttoadministrativepenaltiesforviolatingrelevantenvironmentalprotectionlawsandregulations.Measurestakentoreducecarbonemissionsduringthereportingperiodandtheireffects
□Applicable√NotapplicableReasonsofnotdisclosingotherenvironmentalinformation
□Applicable√Notapplicable
SectionII.SocialResponsibilitiesFordetailsoftheCompany'sperformanceofsocialresponsibilities,pleaserefertothe2021AnnualReportonSocialResponsibilitiesofOFFCNEDUdisclosedbytheCompanyonCNINFO(www.cninfo.com)onthesameday.
SectionIII.Conductstoconsolidateandexpandtheachievementsofpovertyalleviationandruralrevitalization
□Applicable√Notapplicable
Chapter6SignificantEvents
SectionI.Fulfillmentofcommitments
1.CommitmentsthattheCompany’sactualcontrollers,shareholders,relatedparties,acquirers,theCompanyitselfandotherrelevantpartieshavefulfilledduringthereportingperiodandhavenotfulfilledasoftheendofthereportingperiod
√Applicable□Notapplicable
CommitmentParty
| CommitmentParty | CommitmentType | Maincontentsofcommitment | Commitmenttime | Commitmentperiod | Performance |
| YaxiaIndustrial,ZhouXiayun,ZhouHui,ZhouLi,Phase-Iemployeestockownershipplan | Letterofcommitmentonlock-upperiod | 1.Within36monthsafterthecompletionofthetransaction(startingfromthedateofthelistingofsharesissuedinthistransaction),thesharesofYaxiaAutothatheldbythecompany/myself/theplanwithrightsandinterestsshallnotbetransferred.2.Afterthecompletionofthetransaction,thesharesheldbythecompany/myself/theplan,derivedfromYaxiaAutosharesduetothedistributionofstockdividendsandtheconversionofcapitalreservetosharecapital,shallalsocomplywiththeabove-mentionedarrangementofrestrictedsaleofshares.3.IftheChinaSecuritiesRegulatoryCommission(CSRC)and/orShenzhenStockExchange(SSE)have/hasotherprovisionsfortheabove-mentionedlock-upperiodarrangement,thecompany/I/theplanwilladjustandimplementtheabove-mentionedlock-upperiodarrangementaccordingtothelatestregulationsoftheCSRCand/orSSE.Ifviolatingtheabovecommitments,thecompany/I/theplanwillbearalllossescausedtoYaxiaAuto. | May4,2018 | Jan.31,2022 | Fulfilled |
| LiYongxin | LetterofCommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbymyselfinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedCompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissue | Apr.27,2018 | Jan.31,2022 | Undernormalimplementation |
price,thelock-upperiodofconsiderationsharesacquiredbymyselfshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedCompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)
2.Asthetransfereeof72,696,561YaxiaAutosharesheldbyAnhuiYaxiaIndustrialCo.,Ltd.,Ishallnottransfersuchshareswithin36monthsfromtheregistrationdateofsuchsharesinmysecuritiesaccount.
3.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedCompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.
4.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorCSRConsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
5.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
6.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution.
7.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsofCSRCandSSE.
LuZhongfang
| LuZhongfang | 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:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorCSRConsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution. | April27,2018 | Jan31,2022 | Undernormalimplementation |
6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsofCSRCandSSE.
| 6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsofCSRCandSSE. | |||||
| KeruiTechnologyInnovation | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbyKeruiTechnologyInnovationinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedCompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbyKeruiTechnologyInnovationshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedCompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)2.Theenterprisepromisestoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorCSRConsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.3.Afterthecompletiondateofthistransaction,theenterprise’sincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution.5.Afterthelock-upperiodexpires,itwillbe | July27,2018 | Jan.31,2022 | ThesharesoftheCompanyheldbyKeruiTechnologyInnovationwerelistedandcirculatedonFebruary11,2022,andtheshareholders'sharelock-upcommitmenthasbeenfulfilled. |
implementedinaccordancewiththerelevantregulationsofCSRCandSSE.
| implementedinaccordancewiththerelevantregulationsofCSRCandSSE. | |||||
| AerospaceIndustry,GuangyinVenture | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbyAerospaceIndustryandGuangyinVentureinthistransactionshallnotbetransferredordealtwithinanyotherformswithin36monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedCompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbyKeruiTechnologyInnovationshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedCompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)2.Theenterprisepromisestoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorCSRConsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelistedCompanyacquiredinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.3.Afterthecompletiondateofthistransaction,theenterprise’sincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.4.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,theenterpriseagreestoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution.5.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevant | July27,2018 | Jan31,2021 | ThesharesoftheCompanyheldbyAerospaceIndustryandGuangyinVenturewerelistedandcirculatedonFebruary1,2021,andtheshareholders'sharelock-upcommitmentshavebeenfulfilled. |
regulationsofCSRCandSSE.
| regulationsofCSRCandSSE. | |||||
| WangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofeng,ZhangZhi’an | Letterofcommitmentonlock-upperiodforsubscriptionofshares | 1.ThesharesofthelistedCompanysubscribedbymyselfinthistransactionshallnotbetransferredordealtwithinanyotherformswithin24monthsfromthedateofthelistingoftheshares.Within6monthsafterthelistingoftheshares,iftheclosingpriceofthelistedCompanystockislowerthantheissuepriceforconsecutive20tradingdays,ortheclosingpriceofthestockattheendofthe6monthsafterthelistingofthesharesislowerthantheissueprice,thelock-upperiodofconsiderationsharesacquiredbymyselfshallbeautomaticallyextendedfor6months.(Ifdividendorbonussharesdistribution,conversionofcapitalreserveorallotmentbythelistedCompanyoccurredduringtheabove-mentionedperiod,theaforementionedissuepriceshallbecalculatedbasedonthepriceadjustedbyfactorsasex-dividendandex-rights,etc.)IftheactualperformanceofOffcnLtd.Inyear2018oryear2019islowerthanthecommittedperformancestatedintheProfitForecastCompensationAgreement,thelock-upperiodofthelistedCompany’ssharesacquiredbymyselfinthistransactionshallbeextendedto36months.Upontheexpirationof36monthsfromthedateofregistrationoftheabovesharesintomysecuritiesaccount,iftheprofitcompensationobligationsundertheProfitForecastCompensationAgreementhavenotbeenfulfilled,theabovelock-upperiodwillbeextendeduntilthedateoffulfillmentofthecompensationobligations.2.Theaforesaidarrangementofsharelock-updoesnotaffecttheimplementationofprofitcompensationforthistransaction,thatis,whenIneedtomakeprofitcompensation,thelistedCompanyhastherighttorelievethelock-upofsharesincorrespondingamountinadvanceforprofitcompensation.3.Ipromisetoabidebythefollowingprovision:ifthetransactionisinvestigatedbyjudiciaryauthoritiesorCSRConsuspicionofmisrepresentations,misleadingstatements,ormaterialomissionsinregardtotheinformationprovidedordisclosed,thesharesofthelisted | July27,2018 | Jan31,2021 | ThesharesoftheCompanyheldbyWangZhendong,GuoShihong,LiuBin,ZhangYongsheng,YangShaofengandZhangZhi’anwerelistedandcirculatedonFebruary1,2021,andtheshareholders'sharelock-upcommitmentshavebeenfulfilled. |
Companyacquiredbymyselfinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.
4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.
5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution.
6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsofCSRCandSSE.
| Companyacquiredbymyselfinthistransactionshallnotbetransferreduntiltheconclusionoftheinvestigationisclarified.4.Afterthecompletiondateofthistransaction,myincreasedsharesduetobonussharesdistributionorconversionofcapitalreserveofthelistedCompanyshallalsocomplywiththeforegoingrequirements.5.Iftheaforementionedlock-upperiodarrangementdoesnotcomplywiththelatestlawsandregulationsorthelatestregulatoryrequirementsofthesecuritiesregulatoryinstitution,Iagreetoimplementthearrangementinaccordancewiththelatestlawsandregulationsandtherequirementsofthesecuritiesregulatoryinstitution.6.Afterthelock-upperiodexpires,itwillbeimplementedinaccordancewiththerelevantregulationsofCSRCandSSE. | |||||
| OffcnPartnership | Letterofcommitmentonthelock-upofshares | Within36monthsfromthedateofthetransferof80,000,000sharesofYaxiaAutoheldbyAnhuiYaxiaIndustrialCo.,Ltd.totheenterprise,thesharesshallnotbetransferred.Thelock-upperiodofthesharesincreasedduringtheaboveperiodduetobonussharesdistribution,conversionofcapitalreserveorallotmentofsharesbyYaxiaAuto,shallalsocomplywiththeforegoingrequirements.Iftheenterpriseviolatescommitmentslistedabove,itwillbearalllossescausedtoYaxiaAuto. | April27,2018 | Jan31,2022 | Undernormalimplementation |
| LiYongxinandother10counterparties | Letterofcommitmentonthelock-upofOffcnPartnership’scontributionshares | Within36monthsfromthedateofthetransferof80,000,000sharesofYaxiaAutoheldbyAnhuiYaxiaIndustrialCo.,Ltd.toBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership),IortheenterpriseshallnotinanywaytransferthesharesofBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)orwithdrawfromthepartnershipwithBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership),nordowetransfer,assignorauthorizeotherentitiesinanywaytofullyorpartiallyhavetherightsandinterestsindirectlyrelatedtothesharesofYaxiaAutoheldbyBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership). | July27,2018 | Jan31,2022 | Fulfilled |
| LiYongxin, | Letterof | 1.Guaranteetheindependenceofthelisted | April27, | Long-ter | Undernormal |
LuZhongfang,WangZhendong,OffcnPartnership
| LuZhongfang,WangZhendong,OffcnPartnership | commitmentonmaintainingindependenceofthelistedCompany | Company’spersonnel(1)Itisguaranteedthatafterthecompletionofthistransaction,thepersonnel,humanresourcesandremunerationmanagementofthelistedCompanyshallbecompletelyindependentfrommyself/OffcnPartnership,andfromotherrelatedparties,suchascompanies,enterprisesoreconomicorganizations,controlledbymyself/OffcnPartnership.(2)Itisguaranteedthatafterthecompletionofthistransaction,seniorexecutivesshallworkasfull-timeemployeesandreceiveremunerationinthelistedCompany.Theyshallnotholdanypositionsotherthandirectorsorsupervisorsinothercompanies,enterprises,oreconomicorganizationscontrolledbymyself/OffcnPartnership.(3)Itisguaranteedthatafterthecompletionofthistransaction,theofficialpowersoftheshareholders’meetingandboardofdirectorsonpersonnelappointmentsanddismissalsshallnotbeinterfered.2.GuaranteetheindependenceofinstitutesofthelistedCompany(1)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallbuildasoundstructureofcorporategovernanceanddevelopanindependentandcompleteorganizationalstructure.(2)Itisguaranteedthatafterthecompletionofthistransaction,thegeneralmeetingofshareholders,theboardofdirectors,andthesupervisorycommitteeshallindependentlyexercisetheirpowersinaccordancewithlaws,regulationsandtheCompany’sArticlesofCorporation.3.GuaranteetheindependenceandcompletenessoftheassetsofthelistedCompany.(1)Itisguaranteedthatafterthetransaction,thelistedCompanyshallhaveindependentandcompleteassetsrelatedtoproductionandoperation.(2)Itisguaranteedthatafterthecompletionofthistransaction,thebusinesspremisesofthelistedCompanyshallbeindependentfrommyself/OffcnPartnership,andotherrelatedparties,suchascompanies,enterprises,orothereconomicorganizationscontrolledbymyself/OffcnPartnership.(3)Itisguaranteedthatafterthecompletionofthis | 2018 | m | implementation |
transaction,exceptfornormalbusinessdealings,thereshallbenocapitalandassetsofthelistedCompanyoccupiedbymyself/OffcnPartnership,orotherrelatedparties,suchascompanies,enterprisesoreconomicorganizations,controlledbymyselforOffcnPartnership.
4.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-orientedandfairwayandperformrelevantapprovalprocessesandinformationdisclosureobligationsinaccordancewithrelevantlaws,regulationsandregulatorydocuments.
5.GuaranteethefinancialindependenceofthelistedCompany.
(1)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallestablishanindependentfinancialdepartmentwithindependentfinancialaccountingsystemsandstandardizedandindependentfinancialaccountingrules.
(2)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanyshallopenbankaccountsindependentlyandshallnotsharebankaccountswithmyself/OffcnPartnership/other
relatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership.
(3)Itisguaranteedthatafterthecompletionofthistransaction,financialpersonnelhiredbythelistedCompanyshallnotholdanypart-timepositionsinotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership
(4)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanycanmakefinancialdecisionsindependently.I/OffcnPartnershipshallnotinterferewiththeuseoffundsbythelistedCompany.
(5)Itisguaranteedthatafterthecompletionofthistransaction,thelistedCompanywillpaytaxesindependentlyaccordingtolaws.I/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditssubsidiariesduetomy/OffcnPartnership’sfailureinfulfillingtheabovecommitments.
| relatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership.(3)Itisguaranteedthatafterthecompletionofthistransaction,financialpersonnelhiredbythelistedCompanyshallnotholdanypart-timepositionsinotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselforOffcnPartnership(4)Itisguaranteedthatafterthecompletionofthistransaction,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.ExceptforLiYongxinservingasadirectorinKunmingWuhuaOffcntrainingschool,whichisaffiliatedtoOffcnOnline,Ineitherholdanyfull-timeorpart-timepositionsnorprovideconsultancyatanycompaniesorenterprises,whichconductscompetitivebusinesseswiththelistedCompany,OffcnLtd.andtheiraffiliates.Ialsodonotdirectlyorindirectlyholdanyequityorsharesofcompaniesorenterprisesconductingthesame,similarorrelatedbusinessesasthelistedCompany,OffcnLtd.anditsaffiliates. | September20,2018 | 1.ThetransferofKairuierTrainingSchoolinHaidianDistrictofBeijing:within24monthsfromthedateofthesigningofthisletterofcommitment2.The | Asoftheendofthereportingperiod,KairuierTrainingSchoolinHaidianDistrictofBeijinghadbeentransferredtoanunrelatedthirdparty.Othercommitmentsareundernormalimplementation |
2.Asofthedateofsigningthiscommitmentletter,OffcnOnlineanditstwosubordinatetrainingschools’disposalsareasfollow:OffcnOnlineconductsnoeducationbusinesses(tobecanceledaftersubordinateschoolstransferred).KairuierTrainingSchoolinHaidianDistrictofBeijingistobetransferredtoanunrelatedthirdpartyandthetransferagreementhasbeensigned.Ifthetransferisnotcompletedwithin24monthssincethedateofsigningthiscommitmentletter,IwillurgeOffcnOnlinetocancelKairuierTrainingSchoolinHaidianDistrictofBeijing.KunmingWuhuaOffcnTrainingSchool,associatedwithOffcnOnline,hasbeenclosedanditwillbetransferredtoanunrelatedthirdpartyorwillbecanceledwithin12monthsaftertheformalpromulgationandimplementationoftheamendedImplementingRegulationsoftheLawonthePromotionofPrivateEducationofthePeople’sRepublicofChina(hereinafterreferredtoasImplementingRegulations)andthepromulgationandimplementationofthesupportingregulationsformulatedbytherelevantlocaleducationauthoritiesinaccordancewiththeamendedImplementingRegulations.
3.Asofthedateofsigningthiscommitmentletter,OffcnLtd.astheorganizerintendstotransferits100%oftheorganizer’srightsof33privateschoolsfornon-academicqualificationstoLiYongxinandsingedtheAgreementonTransferofOrganizer’sRightsofPrivateNon-enterpriseSchoolsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd.LiYongxiniswillingtoentrustthetransferred33privatenon-enterpriseschoolstoOffcnLtd.andsignedtheTrusteeshipAgreementofPrivateNon-enterpriseSchools.
4.Afterthecompletionofthistransaction,exceptfortheabove-mentionedcases,IpromisethatduringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyselformycloserelativesshallnotinanyway(includingbutnotlimitedtoselfoperatedorwith
| 2.Asofthedateofsigningthiscommitmentletter,OffcnOnlineanditstwosubordinatetrainingschools’disposalsareasfollow:OffcnOnlineconductsnoeducationbusinesses(tobecanceledaftersubordinateschoolstransferred).KairuierTrainingSchoolinHaidianDistrictofBeijingistobetransferredtoanunrelatedthirdpartyandthetransferagreementhasbeensigned.Ifthetransferisnotcompletedwithin24monthssincethedateofsigningthiscommitmentletter,IwillurgeOffcnOnlinetocancelKairuierTrainingSchoolinHaidianDistrictofBeijing.KunmingWuhuaOffcnTrainingSchool,associatedwithOffcnOnline,hasbeenclosedanditwillbetransferredtoanunrelatedthirdpartyorwillbecanceledwithin12monthsaftertheformalpromulgationandimplementationoftheamendedImplementingRegulationsoftheLawonthePromotionofPrivateEducationofthePeople’sRepublicofChina(hereinafterreferredtoasImplementingRegulations)andthepromulgationandimplementationofthesupportingregulationsformulatedbytherelevantlocaleducationauthoritiesinaccordancewiththeamendedImplementingRegulations.3.Asofthedateofsigningthiscommitmentletter,OffcnLtd.astheorganizerintendstotransferits100%oftheorganizer’srightsof33privateschoolsfornon-academicqualificationstoLiYongxinandsingedtheAgreementonTransferofOrganizer’sRightsofPrivateNon-enterpriseSchoolsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd.LiYongxiniswillingtoentrustthetransferred33privatenon-enterpriseschoolstoOffcnLtd.andsignedtheTrusteeshipAgreementofPrivateNon-enterpriseSchools.4.Afterthecompletionofthistransaction,exceptfortheabove-mentionedcases,IpromisethatduringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyselformycloserelativesshallnotinanyway(includingbutnotlimitedtoselfoperatedorwith | transferofKunmingWuhuaOffcnTrainingSchool:within12monthsaftertheformalpromulgationandimplementationoftheImplementingRegulationsandthepromulgationandimplementationofthesupportingregulationsformulatedbytherelevantlocaleducationauthoritiesinaccordancewiththeamendedImpleme |
otherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedorcompetitivebusinesseswiththelistedCompany,including:
(1)Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliates.
(2)IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.
(3)IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;
(4)Iwillnotinstigate,mislead,encourageorotherwiseinduce,persuade,orcoercetheemployeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.
(5)IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.
5.IpromisethatifI,mycloserelativesorotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelativesobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,IwillnotifythelistedCompanyanditsaffiliatesinwritingwithin5workingdays.Afterobtainingthethirdparty’sagreement,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.
6.IguaranteethatIwillneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiesto
| otherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedorcompetitivebusinesseswiththelistedCompany,including:(1)Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliates.(2)IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.(3)IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;(4)Iwillnotinstigate,mislead,encourageorotherwiseinduce,persuade,orcoercetheemployeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.(5)IwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.5.IpromisethatifI,mycloserelativesorotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyselfandmycloserelativesobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,IwillnotifythelistedCompanyanditsaffiliatesinwritingwithin5workingdays.Afterobtainingthethirdparty’sagreement,IwillattempttotransferthesebusinessopportunitiestothelistedCompanyanditsaffiliates.6.IguaranteethatIwillneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiesto | ntingRegulations. |
engage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.
7.IfIviolatetheabovecommitments,thebenefitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompanyandIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewritingnoticefromthelistedCompany,compensationshallbemadeincash.
8.Iwilldiscloserelevantinformationinatimelymannerifcommitmentsfailtobefulfilledortobefulfilledonschedulebecauseofobjectivereasons,suchaschangesinrelevantlaws,regulationsandpolicies,ornaturaldisasters.Exceptfortheabove-mentionedobjectivereasons,ifthecommitmentisanyhowunabletobefulfilledorfulfillingthecommitmentisnotconducivetosafeguardingtherightsandinterestsofthelistedCompany,IshouldfullydisclosethereasonsandeitherprovideanewcommitmenttothelistedCompanyandrelatedinvestorstoreplacetheoriginalone,orproposeanexemptionfromfulfillingthecommitment.
9.Thecommitmentisvalidstartingfromthesigningdateofthecommitmentletter,tothetimewhenIceasetobetheactualcontrollerofthelistedCompany.
| engage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedcompaniesanditsaffiliates.7.IfIviolatetheabovecommitments,thebenefitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompanyandIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewritingnoticefromthelistedCompany,compensationshallbemadeincash.8.Iwilldiscloserelevantinformationinatimelymannerifcommitmentsfailtobefulfilledortobefulfilledonschedulebecauseofobjectivereasons,suchaschangesinrelevantlaws,regulationsandpolicies,ornaturaldisasters.Exceptfortheabove-mentionedobjectivereasons,ifthecommitmentisanyhowunabletobefulfilledorfulfillingthecommitmentisnotconducivetosafeguardingtherightsandinterestsofthelistedCompany,IshouldfullydisclosethereasonsandeitherprovideanewcommitmenttothelistedCompanyandrelatedinvestorstoreplacetheoriginalone,orproposeanexemptionfromfulfillingthecommitment.9.Thecommitmentisvalidstartingfromthesigningdateofthecommitmentletter,tothetimewhenIceasetobetheactualcontrollerofthelistedCompany. | |||||
| WangZhendong,OffcnPartnership | LetterofCommitmentonavoidinghorizontalcompetition | 1.Asofthedateofsigningthiscommitmentletter,myself,mycloserelativesandothercompanies,enterprisesoreconomicorganizationscontrolledbymyself,mycloserelativesorOffcnPartnership,arenotinvolvedinanysame,similarorrelatedbusinessesconductedbythelistedCompany,OffcnLtd.anditsaffiliatedcompaniesandschools.ExceptforWangZhendongservingasadirectorinKairuierTrainingSchoolinHaidianDistrictofBeijing,whichisaffiliatedtoOffcnOnline(OffcnOnlinetendstotransfertherightsofKairuierTrainingSchooltoanunrelatedthirdpartyandafterthistransfer,WangZhendongwillnolongerholdthepostasadirectorintheschool),Ineitherholdanyfull-timeorpart-timepositionsnorprovideconsultancyatanycompaniesorenterprises,which | April27,2018 | Long-term | Undernormalimplementation |
conductscompetitivebusinesseswiththelistedCompany,OffcnLtd.andtheiraffiliates.Ialsodonotdirectlyorindirectlyholdanyequityorsharesofcompaniesorenterprisesconductingthesame,similarorrelatedbusinessesasthelistedCompany,OffcnLtd.anditsaffiliates.
2.Afterthecompletionofthistransaction,I/OffcnPartnershippromise(s)thatduringthetimeofbeingshareholdersofthelistedCompany,I,mycloserelativesandotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizations,controlledbymyself,mycloserelativesorOffcnPartnershipshallnotinanyway(includingbutnotlimitedtoselfoperatedorwithotherpartiestooperatejointventure,cooperation,jointoperation,investment,mergence,andtrusteeoperationhomeandaboard)engageinthesame,similar,relatedorcompetitivebusinesseswiththelistedCompany,including:
(1)Iwillnotdirectlyorindirectlyoperate,participateinorassistotherstoconductsame,similarbusinessesorothereconomicactivitieswhichdirectlyorindirectlyconstituteacompetitiverelationshipwithbusinessescurrentlyoperatedbythelistedCompanyanditsaffiliates.
(2)IwillnotdirectlyorindirectlyinvestonanyeconomicentitieswhosebusinessesconstituteadirectorindirectcompetitiverelationshipwiththelistedCompanyanditsaffiliates.
(3)IwillnotbehiredbyanycompetitorsthatdirectlyorindirectlycompetewiththelistedCompanyanditsaffiliates,orprovideanyadvice,assistanceorbusinessopportunitiesdirectlyorindirectlytosuchcompetitors;
(4)I/OffcnPartnershipwillnotinstigate,mislead,encourageorotherwiseinduce,persuade,orcoercetheemployeesormanagementpersonnelinthelistedCompanyanditsaffiliatestoterminatetheirlabororemploymentrelationshipwiththeCompanyanditsaffiliates.
(5)I/OffcnPartnershipwillnoturgeotherstohireemployeesormanagementpersonnelfromthelistedCompanyanditsaffiliates.
3.I/OffcnPartnershippromisethatifI,mycloserelativesorotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyself,mycloserelativesorOffcnPartnershipobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,I/OffcnPartnershipwillnotifythelistedCompanyimmediately,andtransferthesebusinessopportunitiestothelistedCompanyanditsaffiliatesafterobtainingthethirdparty’sagreement.
4.I/OffcnPartnershipguarantee(s)thatI/OffcnPartnershipwillneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedCompanyanditsaffiliates.I/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/OffcnPartnership’sfailureinfulfillingtheabove-mentionedcommitments.
| 3.I/OffcnPartnershippromisethatifI,mycloserelativesorotherrelatedparties,suchascompanies,enterprisesorothereconomicorganizationscontrolledbymyself,mycloserelativesorOffcnPartnershipobtainanybusinessopportunitiesfromanythirdparty,whichcanormaycompetewiththelistedCompanyanditsaffiliatesinthefuture,I/OffcnPartnershipwillnotifythelistedCompanyimmediately,andtransferthesebusinessopportunitiestothelistedCompanyanditsaffiliatesafterobtainingthethirdparty’sagreement.4.I/OffcnPartnershipguarantee(s)thatI/OffcnPartnershipwillneverusemyknowledgeaboutandtheinformationI’mawareofthelistedCompanyanditsaffiliatestoassistthirdpartiestoengage,participate,orinvestinbusinessesorprojectsthatcompetewiththelistedCompanyanditsaffiliates.I/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/OffcnPartnership’sfailureinfulfillingtheabove-mentionedcommitments. | |||||
| LiYongxin,LuZhongfang | LetterofCommitmentonreducingandregulatingrelated-partytransactions | 1.Afterthecompletionofthistransaction,duringthetimeofbeingtheactualcontrollerofthelistedCompany,I,mycloserelativesandothercompanies,enterprisesorothereconomicorganizationscontrolledbymyselformycloserelativeswilltrytoavoidandreducetherelated-partytransactionswiththelistedCompanyanditsaffiliates;unlessitisnecessaryforthebusinessdevelopmentofthelistedCompany,anyrelated-partytransactionswiththelistedCompanyanditsaffiliateswillnotbeconducted.2.Afterthecompletionofthistransaction,fortherelated-partytransactionswhichareunavoidableorreasonabletohappenwiththelistedCompanyanditsaffiliates,I,mycloserelativesandothercompanies,enterprisesoreconomicorganizationscontrolledbymyselformycloserelatives,willsignrelated-partytransactionagreementswiththelistedCompanyanditsaffiliatesinaccordancewiththerelevantlaws,regulationsandregulatorydocumentsandfollowthegeneralbusinessprinciplesofequality,willingness,equivalenceandpaid-use.Thepricesofrelated-partytransactionsshallbefair. | July27,2018 | Long-term | Undernormalimplementation |
Decision-makingprocedures,lawfulinformationdisclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactions,shallbefollowed.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.
3.Afterthecompletionofthistransaction,Iwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedCompany.
4.Iwillurgemycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselformycloserelativestofulfilltheaforementionedcommitments.
5.IfI,mycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselformycloserelativesviolatetheabovecommitments,theprofitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompany,andIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewrittennoticefromthelistedCompany,compensationshallbemadeincash.
6.Thecommitmentisvalidstartingfromthesigningdateofthecommitmentletter,tothetimewhenIceasetobetheactualcontrollerofYaxiaAutoorhaveanyotherrelatedrelationshipwithYaxiaAuto.
| Decision-makingprocedures,lawfulinformationdisclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactions,shallbefollowed.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.3.Afterthecompletionofthistransaction,Iwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedCompany.4.Iwillurgemycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselformycloserelativestofulfilltheaforementionedcommitments.5.IfI,mycloserelativesandothercompanies,enterprisesandothereconomicorganizationscontrolledbymyselformycloserelativesviolatetheabovecommitments,theprofitsobtainedbytheviolationofcommitmentsshallbelongtothelistedCompany,andIshallbeliableforalllossescausedtothelistedCompanyanditsaffiliates.Within30workingdayssincereceivingthewrittennoticefromthelistedCompany,compensationshallbemadeincash.6.Thecommitmentisvalidstartingfromthesigningdateofthecommitmentletter,tothetimewhenIceasetobetheactualcontrollerofYaxiaAutoorhaveanyotherrelatedrelationshipwithYaxiaAuto. | |||||
| WangZhendong,AerospaceIndustry,OffcnPartnership | LetterofCommitmentonreducingandregulatingrelated-partytransactions | 1.Afterthecompletionofthistransaction,duringthetimeofbeingtheactualcontroller/shareholderofthelistedCompany,I,mycloserelatives,AerospaceIndustry,OffcnPartnershipandothercompanies,enterprisesorothereconomicorganizationscontrolledbymyself,mycloserelatives,AerospaceIndustryorOffcnPartnershipwilltrytoavoidandreducetherelated-partytransactionswiththelistedCompanyanditsaffiliates. | April27,2018 | Long-term | Undernormalimplementation |
2.Afterthecompletionofthistransaction,fortherelated-partytransactionswhichareunavoidableorreasonabletohappenwiththelistedCompanyanditsaffiliates,I,mycloserelatives,AerospaceIndustry,OffcnPartnershipandothercompanies,enterprisesoreconomicorganizationscontrolledbymyself,mycloserelatives,AerospaceIndustryorOffcnPartnership,willfollowthegeneralbusinessprinciplesofequality,willingness,equivalenceandpaid-use.Thepricesofrelated-partytransactionsshallbefair.Decision-makingprocedures,lawfulinformationdisclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactionsshallbefollowedandfulfilledinaccordancewiththerelevantlaws,regulationsandregulatorydocuments.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.
3.Afterthecompletionofthistransaction,I/AerospaceIndustry/OffcnPartnershipwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedCompany.I/AerospaceIndustry/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/AerospaceIndustry’s/OffcnPartnership’sfailuresinfulfillingcommitments.
| 2.Afterthecompletionofthistransaction,fortherelated-partytransactionswhichareunavoidableorreasonabletohappenwiththelistedCompanyanditsaffiliates,I,mycloserelatives,AerospaceIndustry,OffcnPartnershipandothercompanies,enterprisesoreconomicorganizationscontrolledbymyself,mycloserelatives,AerospaceIndustryorOffcnPartnership,willfollowthegeneralbusinessprinciplesofequality,willingness,equivalenceandpaid-use.Thepricesofrelated-partytransactionsshallbefair.Decision-makingprocedures,lawfulinformationdisclosureobligationsandrelevantreportingandapprovalproceduresregardingtherelated-partytransactionsshallbefollowedandfulfilledinaccordancewiththerelevantlaws,regulationsandregulatorydocuments.ThestatusofshareholdersshallnotbeusedtodamagethelegitimaterightsandinterestsofthelistedCompanyandothershareholders.3.Afterthecompletionofthistransaction,I/AerospaceIndustry/OffcnPartnershipwillnotusetheshareholders’rightsofthelistedCompanytomanipulateorinstructthelistedCompanyoritsdirectors,supervisorsandseniorexecutivestomakethelistedCompanyprovideoracceptfunds,commodities,servicesorotherassetsunderinequalconditionsorengageinanybehaviorsthatwoulddamagetheinterestsofthelistedCompany.I/AerospaceIndustry/OffcnPartnershipshallbeliableforalllossescausedtothelistedCompanyanditsaffiliatesduetomy/AerospaceIndustry’s/OffcnPartnership’sfailuresinfulfillingcommitments. | |||
| Whetherthecommitmentsarefulfilledontime | Yes | ||
2.ShouldtherebeanyprofitforecastforanyoftheCompany’sassetsorprojectsandthecurrentreportingperiodisstillwithintheforecastperiod,theCompanyshallexplainwhethertheperformanceoftheassetorprojectmatcheswiththeprofitforecastandwhy.
□Applicable√Notapplicable
SectionII.ThecapitaloccupationofthelistedCompanyfornon-operatingpurposesbythe
controllingshareholderanditsrelatedparties
□Applicable√NotapplicableDuringthereportingperiod,therewasnosuchsituationfortheCompany.SectionIII.Illegalexternalguarantee
□Applicable√NotapplicableThereisnoillegalexternalguaranteeintheCompanyduringthereportingperiod.
SectionIV.StatementoftheBoardofDirectorsonthelatest"non-standardauditreport"
□Applicable√Notapplicable
SectionV.StatementoftheBoardofDirectors,SupervisoryCommittee,andindependentdirectors(ifany)ontheaccountingfirm's"non-standardauditreport"duringthereportingperiod
□Applicable√Notapplicable
SectionVI.Particularsofchangesinaccountingpoliciesandaccountingestimatesorcorrectionsofmajoraccountingerrorscomparedwiththefinancialreportofthepreviousyear
√Applicable□Notapplicable
1.ChangesinaccountingpoliciesOnApril28,2021,the18thmeetingofthefifthBoardofDirectorsoftheCompanyapprovedthatsinceJanuary1,2021,theCompanyshalladopttherelevantstipulationsoftheAccountingStandardsforBusinessEnterprisesNo.
—Leasing(Accounting[2018]No.35).Accordingtotheaccumulatedimpact,right-of-useassets,leaseliabilityandtheamountofretainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsshallbeadjusted,whilethedatainthecomparableperiodshallnot.Fortheinfluencebroughtupbythechangesinaccountingpolicies,pleaserefertoNoteV“Importantaccountingpoliciesandaccountingestimates”;
44.“Adjustmentstothefinancialstatementsatthebeginningofthefirstexecutionyearofthenewrevenuestandardsinitiallyimplemented”and“Retroactiveadjustmentsofcomparativedataintheearlystagebythenewrevenuestandardsinitiallyimplemented”inthisannualreport.Accordingtothenewstandardsgoverninglease,forcontractscomingintoforcebeforethedateofinitialexecutionofthenewstandards,theCompanychoosesnottoreassesswhethertheyareleasecontractsorcontractscontaininglease.
(1)TheCompanyasthelesseeTheCompanychosetoadjustonlytheaccumulatedimpactofleasecontractsthathavenotbeencompletedasofJanuary1,2021.Accordingtotheamountofthefirstexecution’saccumulatedimpact,theamountofretainedearningsatthebeginningoftheperiodwhentheexecutionofnewstandardswereinitiallycarriedout(namelyJanuary1,2021)andotherrelateditemsinthefinancialstatementsshallbeadjusted,whilethedatainthecomparableperiodshallnot.Accordingtothenewstandardsgoverninglease,theCompanywillnotdistinguishbetweenfinanceleasesandoperatingleases.Forallleases(excepttheshort-termleasesandleasesoflow-valueassetswiththesimplifiedtreatment),theCompanywillrecognizeright-of-useassetsandleaseliabilities.
Foroperatingleasespriortothedateofinitialexecution,theCompanymeasurestheleaseliabilitybasedonthepresentvalueoftheremainingleasepaymentsdiscountedattheincrementalborrowingrateonthedateofinitialexecution,andtheright-of-useassetsofeachleaseisdeterminedbasedontheequalamountofleaseliabilityandtheprepaidrentafternecessaryadjustment.TheCompanyconductsimpairmenttestonright-of-useassetsandperformscorrespondingaccountingtreatmentinaccordancewithrelevantregulationsonassetimpairment.TheCompanyhasadoptedthefollowingsimplifiedtreatmentsforoperatingleasespriortothedateofinitialexecution:
1)Whenmeasuringleaseliabilities,thesamediscountratecanbeusedforleaseswithsimilarcharacteristics;themeasurementofright-of-useassetsdoesn’thavetotaketheinitialdirectcostsintoconsideration;
2)Shouldtherebealeaserenewaloptionoraleaseterminationoption,theCompanydeterminestheleasetermbasedontheactualexerciseoftheoptionpriortothedateofinitialexecutionandotherlatestinformation;
3)Asanalternativetotheimpairmenttestforright-of-useassets,theCompanyassesseswhetherthecontractcontainingtheleasewasindeficitbeforethedateofinitialexecution,andadjuststheright-of-useassetsbasedontheamountofthelossprovisionincludedinthebalancesheetbeforethedateofinitialexecution;
4)Theleasechangesbeforethedateofinitialexecutionwillnotbeadjustedretrospectively.Theaccountingtreatmentwillbecarriedoutbasedonthefinalarrangementsofleasechangesandthenewleasestandards.
(2)TheCompanyasthelessorTheCompanydoesnotneedanytransitionaladjustmentfortheleasesasthelessor,andwillcarryoutaccountingtreatmentinaccordancewiththenewleasestandardsfromthedateofinitialexecution.
2.ChangesinaccountingestimatesNone.
3.CorrectionsofpreviousaccountingerrorsNone.
SectionVII.Explanationofthechangesinthescopeoftheconsolidatedstatementcomparedwiththefinancialstatementsofthepreviousyear
√Applicable□Notapplicable
Fullnameofsubsidiary
| Fullnameofsubsidiary | Ratioofshareholding(%) | Reasonsforchanges |
| 1.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | 100.00 | Acquired |
| 2.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | 100.00 | Acquired |
| 3.WenlingOffcnInformationConsultingCo.,Ltd. | 100.00 | Newlyestablished |
| 4.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 5.DiqingOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 6.DaliOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 7.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 8.NujiangOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
9.WeixiOffcnEducationTrainingSchoolCo.,Ltd.
| 9.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newlyestablished |
| 10.BeijingOffcnCenturyEducationTechnologyCo.,Ltd. | 100.00 | Newlyestablished |
| 11.BeijingOffcnFutureEducationTechnologyCo.,Ltd. | 49.00 | Transferred |
SectionVIII.AppointmentanddismissaloftheCPAfirm
CPAfirmappointedatpresent
| NameofthedomesticCPAfirm | BakerTillyChinaCertifiedPublicAccountantsLLP |
| RemunerationofdomesticCPAfirm(MillionYuan) | 1.80 |
| ConsecutiveyearsoftheauditserviceofdomesticCPAfirm | 4years |
| NameoftheCPAsindomesticCPAfirm | ZhouBaiming,LiQiang |
| ConsecutiveyearsofauditserviceoftheCPAsofdomesticCPAfirm | 4consecutiveyearsforZhouBaimingand1yearforLiQiang |
WhethertoreappointanotherCPAfirminthecurrentperiodYes√NoAppointmentofinternalcontrolauditingCPAfirms,financialconsultantsorsponsors
□Applicable√NotapplicableSectionIX.Facingdelistingafterthedisclosureoftheannualreport
□Applicable√Notapplicable
SectionX.Bankruptcyandreorganizationrelatedmatters
□Applicable√NotapplicableThereisnosuchsituationofbankruptcyandreorganizationoftheCompanyduringthereportingperiod.
SectionXI.Majorlitigationandarbitrationmatters
□Applicable√NotapplicableThereisnomajorlitigationormajorarbitrationduringthereportingperiod.Duringthereportingperiod,otherlitigationandarbitrationmattersoftheCompanyanditssubsidiariesareasfollows:
1.Duringthereportingperiod,theamountoflitigationinvolvedinclosedcaseswasRMB17.4338millionyuan,andtheactualamountofjudgmentsineffectivelegaldocumentswasapproximatelyRMB1.086millionyuan.TheresultsofthelitigationcaseshadnosignificantimpactontheCompany'soperations;
2.Attheendofthereportingperiod,theamountoflitigationinvolvedinunsettledcaseswasRMB14.8006millionyuan,andtheamountoflitigationinvolvedinthesependingcasesaccountedfor0.78%oftheunauditednetassets
attributabletoshareholdersofthelistedCompanyin2021,whichhadnosignificantimpactontheCompany'soperations.
SectionXII.Penaltiesandrectifications
□Applicable√NotapplicableThereisnopenaltyorrectificationoftheCompanyduringthereportingperiod
SectionXIII.IntegrityoftheCompanyanditscontrollingshareholdersandactualcontrollers:
□Applicable√NotapplicableSectionXIV.Significantrelated-partytransactions
1.Related-partytransactionsrelevanttodailyoperations
√Applicable□Notapplicable
Relatedparty
| Relatedparty | Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd./ShanghaiBeidingNetworkTechnologyCo.,Ltd. | BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | Total |
| Relationship | Enterpriseactual-controlledbythedirectoroftheCompany | Enterpriseactual-controlledbythedirectoroftheCompany | |
| Typeofrelated-partytransaction | Purchasingproductsandgoodsfromtherelatedparty | Purchasingproductsandgoodsfromtherelatedparty | |
| Contentofrelated-partytransaction | Commissionfee | Decorationfee | |
| Pricingprincipleforrelated-partytransaction | Fairmarketpricing | Fairmarketpricing | -- |
| Priceofrelated-partytransaction | Fairmarketpricing | Fairmarketprice | -- |
| Amountofrelated-partytransaction(RMB10thousandyuan) | 18,314.42 | 3,597.24 | 21,911.66 |
| Proportionoftheamountofsimilartransactions | 4.34% | 2.63% | -- |
| Approvedtransactionlimit(RMB10thousandyuan) | 0 | 0 | 0 |
| Whetherexceedingtheapprovedtransactionlimit | Yes | Yes | -- |
| Settlementmethodofrelated-partytransaction | Wiretransfer | Wiretransfer | -- |
| Availablemarketpriceforsimilartransactions | None | None | -- |
| Dateofdisclosure | -- | ||
| Indexofdisclosure | CNINFO(http://www.cninfo.com.cn)AnnouncementontheEstimatedLimitofDailyRelated-partyTransactionsin | -- | |
theYearof2022(No.2022-035)
| theYearof2022(No.2022-035) | ||
| Detailsoflargesalesreturns | N/A | |
| Actualperformanceduringthereportingperiodofthetotalamountofthedailyrelated-partytransactionsestimatedbycategoriesinthisperiod(ifany) | N/A | |
| Reasonsforlargedifferencesbetweentransactionpricesandmarketreferenceprices(ifapplicable) | N/A | |
2.Related-partytransactionsarisingfromacquisitionandsaleofassetsorequity
□Applicable√NotapplicableThereisnorelated-partytransactionarisingfromacquisitionandsaleofassetsorequityoftheCompanyduringthereportingperiod.
3.Relatedpartytransactionsofjointforeigninvestments
□Applicable√NotapplicableThereisnorelated-partytransactionofjointforeigninvestmentsoftheCompanyduringthereportingperiod.
4.Relatedcreditanddebttransactions
□Applicable√NotapplicableThereisnorelatedcreditanddebttransactionoftheCompanyduringthereportingperiod.
5.Transactionswithrelatedfinancialcompanies
□Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweentheCompanyanditsrelatedfinancialcompaniesorotherrelatedparties.
6.TransactionsbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties
□Applicable√NotapplicableThereisnodeposit,loan,creditorotherfinancialbusinessbetweenthefinancialcompanycontrolledbytheCompanyandrelatedparties.
7.Othersignificantrelated-partytransactions
□Applicable√NotapplicableThereisnoothersignificantrelated-partytransactionintheCompanyduringthereportingperiod.
SectionXV.Majorcontractsandtheirperformance
1.Trusteeship,contractingandleasingmatters
(1)Trusteeship
√Applicable□Notapplicable
DetailsoftrusteeshipOnSeptember20,2018,OffcnLtd.andLiYongxinsignedAgreementonTransferofOrganizer’sRightsofNon-enterprisePrivateSchoolsAffiliatedtoBeijingOffcnEducationTechnologyCo.,Ltd..All100%rightsoforganizersasofSeptember20,2018weretobetransferredtoLiYongxin.Onthesameday,LiYongxinandOffcnLtd.signedtheTrusteeshipAgreementofPrivateNon-enterpriseSchoolsstipulatingthatLiYongxinwouldentrustthetransferredprivatenon-enterpriseschoolstoOffcnLtd.formanagement.TheperiodoftrusteeshipstartedfromthedatewhenLiYongxinpaidallthetransferpricetothedatewhentheprivatenon-enterpriseschools’100%rightsoforganizersweretransferredtotheunrelatedthirdpartyorcanceled(Note:within12monthsaftertherevisedImplementationRegulationswasofficiallypromulgatedandtherelevantlocaleducationauthoritiespassedthesupportingregulationsinaccordancewiththerevisedImplementationRegulations,LiYongxintransferred100%oftheowner’srightstotheunrelatedthirdpartyorcanceledthem.)Projectswithtrusteeshipthatprofitsorlossesreachedmorethan10%ofthetotalprofitsoftheCompanyofthereportingperiod□Applicable√Notapplicable
Therewasnoprojectwithtrusteeshipthatprofitorlossreachedmorethan10%ofthetotalprofitsoftheCompanyduringthereportingperiod.
(2)Contracting
□Applicable√Notapplicable
TherewasnocontractingoftheCompanyduringthereportingperiod.
(3)Leasing
□Applicable√Notapplicable
TherewasnoleasingoftheCompanyduringthereportingperiod.
2.Majorguarantee
□Applicable√Notapplicable
TherewasnomajorguaranteeoftheCompanyduringthereportingperiod.
3.Particularsaboutentrustedcashassets
(1)Particularsaboutentrustedfinancialmanagement
√Applicable□Notapplicable
Particularsaboutentrustedfinancialmanagementduringthereportingperiod
Unit:RMB10thousands
Type
| Type | Sourceofentrustedfinancing | Amountofentrustedfinancing | Unduebalance | Overdueamountyettoberecovered | Impairmentaccruedoftheoverduefinancial |
productyettobe
recovered
| productyettoberecovered | |||||
| Bankfinancialproduct | Self-ownedfund | 126,155 | 34,327.98 | 0 | 0 |
| Trustfinancialproducts | Self-ownedfund | 27,000 | 0 | 0 | 0 |
| Others | Self-ownedfund | 999.9 | 0 | 0 | 0 |
| Total | 154,154.9 | 34,327.98 | 0 | 0 | |
Particularsofhigh-riskentrustedfinancialmanagementwithalargesingleamount,lowsecurityorpoorliquidity
□Applicable√NotapplicableItisestimatedthattheprincipaloftheentrustedfinancingcannotberecoveredorthereareothercasesthatmaycauseimpairmentstotheentrustedfinancing.
□Applicable√Notapplicable
（2）Entrustedloans
□Applicable√NotapplicableThereisnoentrustedloanoftheCompanyduringthereportingperiod.
4.Othersignificantcontracts
√Applicable□Notapplicable
SectionXVI.Othersignificantevents
√Applicable□Notapplicable
1.TheprogressoftheCompany’snon-publicissuanceofAShares:
TheCompanyheldthemeetingsofCompany’sboardofdirectorsandsupervisorycommittee,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.
OnMay18,2021,theCompanyissuedtheAnnouncementontheRevisedReplytotheFirstFeedbackNoticefromtheChinaSecuritiesRegulatoryCommissionAdministrativeLicensingProjectReviewandtheAnnouncementonReceivingtheSecondFeedbackfromtheChinaSecuritiesRegulatoryCommission'sAdministrativeLicensingProjectReview.OnMay29,2021,theCompanyissuedtheReportontheReplytotheSecondFeedbackNoticefromtheChinaSecuritiesRegulatoryCommissionAdministrativeLicensingProjectReviewandotherdocuments.Onthesameday,theCompanyalsoissuedtheAdjustmentstothenon-publicissuanceplanincludingtheSecondRevisedProposalforNon-publicIssuanceofASharesreviewedandapprovedatthe19thmeetingoftheFifthBoardofDirectorsandthe16thmeetingoftheFifthSupervisoryCommittee.OnJune5,2021,theCompanyissuedtheAnnouncementontheRevisedReplytotheSecondFeedbackNoticefromtheChinaSecuritiesRegulatoryCommissionAdministrativeLicensingProjectReviewandotherdocuments.OnJune16,2021,theCompany’snon-publicissuancewerereviewedandapprovedbytheIssuanceReviewCommitteeoftheChinaSecuritiesRegulatoryCommission.
OnAugust24,2021,theCompanyissuedtheAnnouncementonNoticeoftheSuspensionoftheChinaSecuritiesRegulatoryCommissionAdministrativeLicensingApplicationReview.BecausethelawfirmhiredforthisissuancewasfiledandputunderinvestigationbytheChinaSecuritiesRegulatoryCommissionforitsservicesforothercompanies,theChinaSecuritiesRegulatoryCommissionsuspendedthereviewoftheCompany'sapplicationforadministrativelicenseforthisnon-publicissuanceofshares.OnDecember7,2021,theCompanyissuedtheAnnouncementonTerminationoftheNon-publicIssuanceofSharesandWithdrawalofApplicationDocuments.Consideringthecapitalmarketenvironment,thedevelopmentoffundraisingprojects,theactualsituationoftheCompany,andthetimingoffinancing,afterprudentanalysisandconstantdiscussionswithintermediaries,theCompanydecidedtoterminatethenon-publicissuanceofAsharesandwithdrawtheapplicationdocuments.
2.TheprogressoftheinvestigationlaunchedbytheChinaSecuritiesRegulatoryCommissionintotheCompany:
OnDecember15,2021,theCompanyreceivedtheNoticeofFiling(No.SRFiling0232021010)fromtheCSRC.AccordingtotheSecuritiesLawofthePeople'sRepublicofChina,LawofthePeople’sRepublicofChinaonAdministrativePunishmentandotherlawsandregulations,theCompanyissuspectedoffailingtodiscloserelatedpartytransactioninformationandviolatingthelawsandregulationsofinformationdisclosure.TheCSRCdecidedtofileacaseagainsttheCompany.OnJanuary15,2022,theCompanyissuedtheAnnouncementontheProgressoftheInvestigationandRiskWarning(No.2022-006).OnFebruary15,2022,theCompanyissuedtheAnnouncementontheProgressoftheInvestigationandRiskWarning(No.2022-019).OnMarch15,2022,theCompanyissuedtheAnnouncementontheProgressoftheInvestigationandRiskWarning(No.2022-022).OnApril24,2022,theCompanyandtherelevantpartiesreceivedthePriorNoticeofAdministrativePenalty.TheAnhuiSecuritiesRegulatoryBureauoftheCSRCdecidedtogiveawarningtoandimposeafineontheCompanyandtherelevantparties.Specificinformationisstatedintheannouncement(No.2022-031)disclosedonCNINFO(www.cninfo.com.cn)andotherdesignatedmedia.OnApril27,2022,theCompanyandtherelevantpartiesreceivedtheofficialDecisionofAdministrativePenaltyfromtheAnhuiSecuritiesRegulatoryBureau,whichdeterminesOffcnEdu,itssubsidiariesBeijingOffcnEducationTechnologyCo.,Ltd.andLiaoningZhongchengRealEstateDevelopmentCo.,Ltd.constitutea
related-partyrelationshipwithShaanxiGuanchengIndustrialCo.,Ltd.,BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd.,ShanghaiBeidingNetworkTechnologyCo.,Ltd.,Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd.andLiaoningHanhuiIndustrialCo.,Ltd..ThetotalamountinvolvedinrelatedtransactionswasRMB1232.395millionyuan,includingRMB196.335millionyuaninyear2019andRMB1036.060millionyuaninyear2020,whichaccountfor6.65%and30.19%ofthenetassetsofOffcnEduinthelatestperiodrespectively.TheCompanydidnotdisclosetheabove-mentionedinformationinaccordancewithrelevantlawsandregulationsandtherewasamaterialomissionoftheCompany’sinformationdisclosure.AwarningwasgiventoandafinewasimposedontheCompanyandtherelevantpersonsresponsibleforthesituation,andcorrespondingrectificationisrequired.Specificinformationisstatedintheannouncement(No.2022-032)disclosedbytheCompanyonCNINFO(www.cninfo.com.cn)andotherdesignatedmediaforinformationdisclosure.
Type
ofrelated-partytransaction
| Typeofrelated-partytransaction | Relatedparty | Contentofrelated-partytransaction | Amountofrelated-partytransactionsinyear2019(RMB) | Amountofrelated-partytransactionsinyear2020(RMB) | Amountofrelated-partytransactionsinyear2021(RMB) | Total(RMB) |
| Acceptingtheentrustmentofrelatedpartyfordecoration | BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | Decorationfee | 161,747,000.00 | 242,000,000.00 | 0.00 | 403,747,000.00 |
| Acceptingthetransferofassetsfromrelatedparty | ShaanxiGuanchengIndustrialCo.,Ltd. | Assetacquisition | 0.00 | 383,060,000.00 | 0.00 | 383,060,000.00 |
| Acceptingthetransferofassetsfromrelatedparty | LiaoningHanhuiIndustrialCo.,Ltd. | Assetacquisition | 0.00 | 200,000,000.00 | 0.00 | 200,000,000.00 |
Purcha
singproductsandgoodsfromtherelatedparty
| Purchasingproductsandgoodsfromtherelatedparty | Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd./ShanghaiBeidingNetworkTechnologyCo.,Ltd. | Commissionfee | 34,588,038.03 | 210,728,611.86 | 183,144,220.00 | 428,460,869.89 |
| Total | 196,335,038.03 | 1,035,788,611.86 | 183,144,220.00 | 1,415,267,869.89 | ||
SectionXVII.SignificanteventsoftheCompany’ssubsidiaries
√Applicable□Notapplicable
1.Thecaseoftransferringpartofthewholly-ownedsubsidiary’sequityandcooperativedevelopmentOnDecember2,2020,thewholly-ownedsubsidiaryoftheCompany,BeijingOffcnFutureEducationTechnologyCo.,Ltd.(hereinafterreferredtoasthetargetcompany),wonthebidforthefirst-leveldevelopmentproject-CP00-1804-0002residentiallandandCP00-1804-0012publicconstructionlandinQiliquNanbeiVillage,ShaheTown,ChangpingDistrict,Beijing,andtheCompanyprovidedaloanofRMB3.098billionyuantothetargetcompanytopayfortheprice,deedtaxandotherexpensesoftheabove-mentionedlands.OnSeptember26,2021,theCompanyheldthe22ndMeetingoftheFifthBoardofDirectorswhichreviewedandapprovedtheProposalonTransferringPartoftheWholly-ownedSubsidiary’sEquityandCooperativeDevelopment.TheBoardofDirectorsagreedtotransfer51%equityoftheCompany’swholly-ownedsubsidiary,namelyBeijingOffcnFutureEducationTechnologyCo.,Ltd.,toBeijingShanghengJiruiCommercialOperationandManagementCo.,Ltd.(hereinafterreferredtoasLonghuParty).Afterfriendlynegotiationbetweenthetwoparties,basedonthetargetcompany’spaid-inregisteredcapital,theCompanypricedthetransferofthetargetcompany’s51%equityatRMB51millionyuan.Atthesametime,LonghuPartyinvestedRMB1.379billionyuaninthetargetcompanyasshareholderloans,allofwhichwereusedtorepaythetargetcompany’sborrowingfromtheCompany.Forspecificinformationofthismatter,pleaserefertotheCompany’sAnnouncementontheTransferofPartoftheWholly-ownedSubsidiary’sEquityandCooperativeDevelopment(AnnouncementNo.:2021-061)releasedonCNINFO(www.cninfo.com),September27,2021.AccordingtothecustomizeddevelopmentagreementandsupplementaryagreementsignedbetweenthetargetcompanyandtheCompany,theCompany’sRMB1.618billionyuan’sworthofloantothetargetcompanyhasbeen
convertedintotheadvancepaymentfortheconstructionofCP00-1804-0012publicconstructionland.ThetargetcompanywillconstructanonlinetechnologyR&Dcenter,anOnline-Merge-Offlineeducationdemonstrationcenter,anintegratedtrainingcenterforR&Dandteachingpersonnel,averticalintegratedfast-responsecommandcenterfornationwidemarket,andaninnovativeeducationheadquarterinaccordancewiththeCompany’sdesignandplanning.Atpresent,thetargetcompanyhaspaidoffallitsloanstotheCompany.
2.ThecooperationwithLiaoningHanhuiIndustrialCo.,Ltd.OnJanuary13,2020,thewholly-ownedsubsidiaryoftheCompany,BeijingOffcnandLiaoningHanhuiIndustrialCo.,Ltd.(hereinafterreferredtoasLiaoningHanhui)signedtheFutureLearningCityProjectCooperativeAgreementandthetwopartiesdecidedtocooperateinthedevelopmentofthefuturelearningcityproject.OnJanuary17,2020,accordingtotheagreement,theCompanypaidRMB200millionyuantoLiaoningHanhuiasasecuritydeposit.LiaoningHanhuishouldcompletetheprojectconstructionandobtainthecorrespondingpropertyrightsbeforeJuly31,2021.Afterthecompletionoftheconstruction,theCompanywilltransfer100%equityofLiaoningHanhuibasedonitsassessednetassets,andtheshareholdersofLiaoningHanhuishouldcooperatewiththeCompanytotransfertheirequityofLiaoningHanhuitoOffcnEDUoritsdesignatedsubsidiary.OnMarch10,2021,thetwopartiessignedtheSupplementaryAgreement,whichchangedthestipulationfrom“theprojectconstructionshouldbecompletedandpropertyownershipcertificateshouldbeobtainedbeforeJuly31,2021”to“theprojectconstructionshouldbecompletedandpasstheacceptancetest,andpropertyownershipcertificateshouldbeobtainedbeforeDecember31,2021.Affectedbythepandemicandotherfactors,LiaoningHanhuicouldn’tcompletetheconstructionandobtainthepropertyownershipcertificatebeforeDecember31,2021.Inviewoftheabovesituation,andconsideringthatthiscooperationhaslastedforalongtime,andthemarketenvironmenthaschangedalotcomparedwiththatatthebeginningofthecooperation,afterfriendlynegotiationbetweentheCompanyandLiaoningHanhui,thetwopartiessignedtheTerminationAgreementoftheOffcnFutureLearningCityProjectCooperativeAgreementBetweenBeijingOffcnEducationTechnologyCo.,LtdandLiaoningHanhuiIndustrialCo.,Ltd.onDecember9,2021.LiaoningHanhuishallreturnthedepositRMB200millionyuanpaidbytheCompanywithin10daysaftertheterminationoftheagreementtakeseffectandpaytheliquidateddamagesatthebankloaninterestrateof4.75%inthesameperiod.Bothpartiesconfirmthattherearenootherdisputes.Uptonow,LiaoningHanhuihasreturnedtheabove-mentioneddepositandpaidliquidateddamagestotheCompany.TheabovemattershavebeenreviewedandapprovedbytheCompany’sgeneralmanager'sofficemeeting.
3.Theprogressintheacquisitionof100%equityofLu’anYazhongRealEstateInformationConsultingCo.,Ltd.andLu’anZhongkeRealEstateInformationConsultingCo.,Ltd.(hereinafterreferredtoasthe"targetcompanies")Thepurposeoftheacquisitionsistotakeadvantageofthepropertyassetsfromthetargetcompaniestobuildalarge-scaleregionallearningbasethatcanbeputintouseinashortperiodoftime.Andwithitsexcellentgeographicallocationandtheconveniencebroughtbythehigh-speedrail,thelearningbasecanbenefitotherareasofAnhuiProvinceandtheadjacentcentralChinaregion,thusquicklyrelievingtheproblemofinsufficientsupplyofsupportinghardwareformulti-categoryteachinginthecentralregionandsteadilypromotingtheimplementation
oftheCompany’sstrategicplan.BasedontheassessedvalueoftherealestatebyBeijingZhuoxindahuaAppraisalCo.,Ltd.onOctober31,2020(thebasedate),theCompanynegotiatedanddeterminedthatthetotalpriceoftheequitytransfertransactionofthetargetcompaniesisRMB561.2833millionyuan,includingRMB72.1516millionyuanasthe100%equitytransferpriceofLu’anYazhongandRMB489.1317millionyuanasthe100%equitytransferpriceofLu’anZhongke.Theabove-mentionedmattershavebeenreviewedandapprovedatthe16thmeetingofthefifthBoardofDirectorsoftheCompany.Fordetailsofthismatter,pleaserefertotheAnnouncementonAcquisitionoftheEquityFromLu’anYaxiaRunnan'sWholly-ownedSubsidiary(No.2020-048)publishedbytheCompanyonCNINFO(www.cninfo.com.cn).onDecember10,2020.InApril2021,thetargetcompaniesobtainedtherealestatecertificateofthepropertyassets,andinJanuary2022,thetargetcompaniescompletedtheequitytransferofequityandthechangeoflegalrepresentativeandseniorexecutives.
Chapter7ShareChangesandShareholdersSectionI.ChangesinShares
1.ChangesinShares
Unit:share(s)
BeforeChange
| BeforeChange | IncreaseorDecrease(+or-) | AfterChange | |||||||
| Numberofshares | Proportion | Newsharesissued | Bonusshares | Conversionofequityreservesintosharecapital | Other | Subtotal | Numberofshares | Proportion | |
| 1.Shareswithtradingrestrictions | 5,419,759,990 | 87.88% | -854,983,969 | -854,983,969 | 4,564,776,021 | 74.01% | |||
| (1)Sharesheldbystate | |||||||||
| (2)Sharesheldbystate-ownedlegalperson | |||||||||
| (3)Othersharesheldbydomesticcapital | 5,419,759,990 | 87.88% | -854,983,969 | -854,983,969 | 4,564,776,021 | 74.01% | |||
| Ofwhich:sharesheldbydomesticlegalperson | 534,706,341 | 8.67% | -534,706,341 | -534,706,341 | 0 | 0.00% | |||
| Sharesheldbydomesticnaturalperson | 4,885,053,649 | 79.21% | -320,277,628 | -320,277,628 | 4,564,776,021 | 74.01% | |||
| (4)Sharesheldbyoverseascapital | |||||||||
| Ofwhich:sharesheldbyoverseaslegalperson | |||||||||
Sharesheldbyoverseasnaturalperson
| Sharesheldbyoverseasnaturalperson | |||||||
| 2.Shareswithouttradingrestrictions | 747,639,399 | 12.12% | 854,983,969 | 854,983,969 | 1,602,623,368 | 25.99% | |
| (1)RMBordinaryshares | 747,639,399 | 12.12% | 854,983,969 | 854,983,969 | 1,602,623,368 | 25.99% | |
| (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√Notapplicable
Approvalofchangesinshares
□Applicable√NotapplicableTransferofsharechanges
□Applicable√NotapplicableTheimpactofsharechangesonfinancialindicatorssuchasbasicearningspershareanddilutedearningspershare,netassetspershareattributabletotheCompany’sordinaryshareholders,etc.inthemostrecentyearandthemostrecentperiod
□Applicable√NotapplicableOthercontentthattheCompanydeemsnecessaryorrequiredbythesecuritiesregulatoryagencytodisclose
□Applicable√Notapplicable
2.Changesinshareswithsalesrestrictions
√Applicable□Notapplicable
Unit:share(s)
| Nameofshareholder | Numberofshareswithsalesrestrictionsatthebeginningoftheperiod | Numberofshareswithsalesrestrictionsincreasedintheperiod | Numberofshareswithsalesrestrictionsreleasedintheperiod | Numberofshareswithsalesrestrictionsattheendoftheperiod | Reasonsforsalesrestrictions | Dateofreleasingrestrictionsonsales |
LiYongxin
| LiYongxin | 1,131,415,121 | 345,000 | 1,131,070,121 | Keyexecutive’slock-upshares | Accordingtotherelevantregulationsofkeyexecutive’slock-upshares | |
| WangZhendong | 962,471,418 | 721,853,563 | 240,617,855 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase;Keyexecutive’slock-upshares | February1,2021 | |
| ZhangYongsheng | 48,123,570 | 12,030,893 | 36,092,677 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase;Keyexecutive’slock-upshares | February1,2021 | |
| ZhangZhi’an | 48,123,570 | 48,123,570 | 0 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase | February1,2021 | |
| YangShaofeng | 48,123,570 | 48,123,570 | 0 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase | February1,2021 | |
| GuoShihong | 48,123,570 | 12,030,893 | 36,092,677 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase;Keyexecutive’slock-upshares | February1,2021 | |
| LiuBin | 48,123,570 | 48,123,570 | 0 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase | February1,2021 | |
| BeijingAerospaceIndustryInvestmentFund(LimitedPartnership) | 267,353,171 | 267,353,171 | 0 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase | February1,2021 | |
| BeijingGuangyinVentureCapitalCenter(LimitedPartnership) | 178,235,447 | 178,235,447 | 0 | Releasingsalesrestrictiononsharesfrommajorassetsreplacementandsharesissuedforassetspurchase | February1,2021 | |
| Total | 2,780,093,007 | 0 | 1,336,219,677 | 1,443,873,330 | — | — |
SectionII.Issuanceandlistingofsecurities
1.Issuanceofsecurities(excludingpreferredshares)duringthereportingperiod
□Applicable√Notapplicable
2.ExplanationofchangesintheCompany’stotalsharesandshareholderstructure,andchangesintheCompany’sassetandliabilitystructure
□Applicable√Notapplicable
3.Existinginternalemployeeshares
□Applicable√NotapplicableSectionIII.Shareholdersandactualcontrollers
1.NumbersofShareholdersandShareholdings
Unit:Share(s)
Totalnumberofshareholderswithordinarysharesattheendofthereportingperiod
| Totalnumberofshareholderswithordinarysharesattheendofthereportingperiod | 158,831 | Totalnumberofshareholderswithordinarysharesattheendofthepreviousmonthbeforethedisclosuredateoftheannualreport | 153,843 | Totalnumberofpreferredshareholderswithvotingrightsrestoredattheendofthereportingperiod(ifany)(SeeNote8) | 0 | Totalnumberofpreferredshareholderswhosevotingrightshavebeenrestoredattheendofthepreviousmonthbeforethedisclosuredateoftheannualreport(ifany)(SeeNote8) | 0 | ||||||||
| Shareholderswithover5%sharesortop10shareholders | |||||||||||||||
| NameofShareholder | Natureofshareholder | ShareholdingPercentage(%) | Totalsharesheldattheendofthereportingperiod | Increase/decreaseofsharesduringthereportingperiod | Numberofsharesheldwithsalesrestrictions | Numberofsharesheldwithoutsalesrestrictions | Pledged,markedorFrozen | ||||||||
| Statusofshares | Numberofshares | ||||||||||||||
| LuZhongfang | Domesticnaturalperson | 41.36% | 2,550,549,260 | 0 | 2,550,549,260 | 0 | Pledged | 770,000,000 | |||||||
| LiYongxin | DomesticnaturalPerson | 18.35% | 1,131,415,121 | 0 | 1,131,070,121 | 345,000 | Pledged | 476,150,000 | |||||||
| WangZhendong | Domesticnaturalperson | 13.83% | 852,885,418 | 0 | 721,853,563 | 131,031,855 | Pledged | 431,013,878 | |||||||
| BeijingAerospaceIndustryInvestmentFund(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 4.24% | 261,280,477 | 0 | 0 | 261,280,477 | |||||||||
BeijingKeruiTechnologyInnovationInvestmentCenter(LimitedPartnership)
| BeijingKeruiTechnologyInnovationInvestmentCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 1.44% | 89,117,723 | 0 | 89,117,723 | 0 | ||
| BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 1.30% | 80,000,000 | 0 | 0 | 80,000,000 | ||
| ZhouXiayun | Domesticnaturalperson | 1.28% | 78,848,640 | 0 | 0 | 78,848,640 | Pledged | 64,000,000 |
| ZhouHui | Domesticnaturalperson | 1.17% | 72,277,920 | 0 | 0 | 72,277,920 | Pledged | 25,480,000 |
| BeijingGuangyinVentureCapitalCenter(LimitedPartnership) | Domesticnon-state-ownedlegalperson | 1.04% | 64,355,896 | 0 | 0 | 64,355,896 | ||
| ZhouLi | Domesticnaturalperson | 0.78% | 48,185,280 | 0 | 0 | 48,185,280 | ||
| Strategicinvestorsorordinarylegalpersonbecomethetop10shareholdersbytheplacementofnewshares(ifany)(SeeNote3) | No | |||||||
| Descriptionoftheabove-mentionedshareholders’relationshiporconcertedactions | TheCompany’scontrollingshareholderandactualcontrollerLuZhongfangandLiYongxinareinaparent-childrelationship.LuZhongfang,LiYongxin,andBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)constitutepersonsactinginconcert.ZhouXiayunandZhouHuihaveafather-sonrelationship.ZhouXiayunandZhouLihaveafather-daughterrelationship.Itisunknownwhetherthereisanassociatedrelationshipamongtheabove-mentionedothershareholders,andwhethertheabove-mentionedshareholdersbelongtothepartiesactinginconcertasstipulatedintheAdministrativeMeasuresonDisclosureofInformationDisclosureofShareholdingChangesinListedCompanies. | |||||||
| Explanationoftheabove-mentionedshareholders’entrusting/entrustedvotingrightsandwaiverofvotingrights | N/A | |||||||
| Explanationoffortheexistenceofaspecialrepurchaseaccountamongthetop10shareholders(ifany)(SeeNote10) | N/A | |||||||
| Descriptionoftop10shareholderswithoutsalesrestrictions | ||||||||
NameofShareholder
| NameofShareholder | Numberofshareswithoutsalesrestrictionsattheendofthereportingperiod | Type | |
| Type | Quantities | ||
| BeijingAerospaceIndustryInvestmentFund(LimitedPartnership) | 261,280,477 | RMBordinaryshares | 261,280,477 |
| WangZhendong | 131,031,855 | RMBordinaryshares | 131,031,855 |
| BeijingOffcnFutureInformationConsultingCenter(LimitedPartnership) | 80,000,000 | RMBordinaryshares | 80,000,000 |
| ZhouXiayun | 78,848,640 | RMBordinaryshares | 78,848,640 |
| ZhouHui | 72,277,920 | RMBordinaryshares | 72,277,920 |
| BeijingGuangyinVentureCapitalCenter(LimitedPartnership) | 64,355,896 | RMBordinaryshares | 64,355,896 |
| ZhouLi | 48,185,280 | RMBordinaryshares | 48,185,280 |
| HongKongSecuritiesClearingCo.,Ltd. | 25,004,586 | RMBordinaryshares | 25,004,586 |
| YangShaofeng | 24,062,680 | RMBordinaryshares | 24,062,680 |
| SequoiaJincheng(Xiamen)EquityInvestmentPartnership(LimitedPartnership) | 18,800,000 | RMBordinaryshares | 18,800,000 |
| Descriptionoftherelationshiporconcertedactionsamongthetop10shareholderswithoutsalesrestrictions,andbetweenthetop10shareholderswithoutsalesrestrictionsandthetop10shareholders | TheCompany’scontrollingshareholderandactualcontrollerLuZhongfangandLiYongxinareinaparent-childrelationship.LuZhongfang,LiYongxin,andBeijingOffcnFutureInformationConsultingCenter(LimitedPartnership)constitutepersonsactinginconcert.ZhouXiayunandZhouHuihaveafather-sonrelationship.ZhouXiayunandZhouLihaveafather-daughterrelationship.Itisunknownwhetherthereisanassociatedrelationshipamongtheabove-mentionedothershareholders,andwhethertheabove-mentionedshareholdersbelongtothepartiesactinginconcertasstipulatedintheAdministrativeMeasuresonDisclosureofInformationDisclosureofShareholdingChangesinListedCompanies. | ||
| Descriptionofthetop10ordinaryshareholdersparticipatinginthemargintradingorshortsellingbusiness(ifany) | N/A | ||
WhethertheCompany’stop10ordinaryshareholdersandtop10ordinaryshareholderswithoutsalesrestrictionsconductedagreedrepurchasetransactionsduringthereportingperiod
□Yes√No
TheCompany’stop10ordinaryshareholdersandtop10ordinaryshareholderswithoutsalesrestrictionsdidn’tconductagreedrepurchasetransactionsduringthereportingperiod
2.ThecontrollingshareholdersoftheCompany
Natureofcontrollingshareholders:naturalpersonholdingTypeofcontrollingshareholders:naturalperson
Nameofcontrollingshareholder
| Nameofcontrollingshareholder | Nationality | Whetherobtainedanypermanentresidencyabroad |
| LuZhongfang | China | No |
| LiYongxin | China | No |
| Majoroccupationsandjobs | LiYongxinistheChairmanoftheBoardoftheCompany. | |
| Particularsaboutcontrollingorholdingsharesofothercompanieslistedathomeand/orabroadduringthereportingperiod | N/A | |
Changeofcontrollingshareholderduringthereportingperiod
□Applicable√NotapplicableControllingshareholdersoftheCompanydidnotchangeduringthereportingperiod.
3.TheactualcontrollersoftheCompanyandthepersonactinginconcertNatureofactualcontrollers:domesticnaturalpersonTypeofactualcontrollers:naturalperson
| Nameofactualcontroller | Relationshipwiththeactualcontroller | Nationality | Whetherobtainedanypermanentresidencyabroad |
| LuZhongfang | herself | China | No |
| LiYongxin | himself | China | No |
| BeijingOffcnFutureInformationConsultingCenter(Limitedpartnership) | Actinginconcert（includingagreements,relatives,orundercommoncontrol） | China | No |
| Majoroccupationsandjobs | LiYongxin,thefounderandactualcontrolleroftheCompany,isthecurrentChairmanoftheBoardoftheCompany. | ||
| Particularsaboutcontrollingsharesofothercompanieslistedathomeand/orabroadinpast10years | N/A | ||
Changeofactualcontrollerduringthereportingperiod
□Applicable√NotapplicableTheactualcontrollersoftheCompanydidnotchangeduringthereportingperiod.
BlockdiagramofthepropertyrightsandcontrolrelationshipbetweentheCompanyandtheactualcontrollers
TheactualcontrollercontrolstheCompanythroughtrustorotherassetmanagementmethods
□Applicable√Notapplicable
4.TheCompany’scontrollingshareholderorthelargestshareholderanditsconcertpartieshavepledged80%ofthenumberofsharesheldbythem
□Applicable√Notapplicable
5.Otherlegalpersonshareholdersholdingmorethan10%oftheshares
□Applicable√Notapplicable
6.Controllingshareholders,actualcontrollers,restructuringpartiesandothercommittedentitieswithrestrictedshareholdingreductions
□Applicable√Notapplicable
SectionIV.Detailsofimplementationofsharerepurchaseduringthereportingperiod
Implementationprogressofsharerepurchase
□Applicable√Notapplicable
Implementationprogressofreducingrepurchasedsharesbymeansofcentralizedbidding
□Applicable√Notapplicable
Chapter8PreferredShares
□Applicable√NotapplicableTherewerenopreferredsharesduringthereportingperiod.
Chapter9CorporateBonds
□Applicable√Notapplicable
Chapter10FinancialStatements
SectionI.AUDITOR’SREPORT
BakerTillyChina[2022]No.15311TotheShareholdersofOffcnEducationTechnologyCo.,Ltd.I.Opinion
WehaveauditedtheaccompanyingfinancialstatementsofOffcnEducationTechnologyCo.,Ltd.(“OffcnEducation”or“theCompany”),whichcomprisetheconsolidatedandparent'sbalancesheetsasat31December2021,andthe2021consolidatedandparent'sincomestatements,theconsolidatedandparent'sstatementofcashflowsandtheconsolidatedandparent'sstatementsofchangesinowners'equityfortheyearthenended,andthenotestothefinancialstatements.Inouropinion,thefinancialstatementsofOffcnEducationpresentfairly,inallmaterialrespects,theconsolidatedandparent'sfinancialpositionasat31December2021,andthe2021consolidatedandparent'sresultofoperationsandcashflowsfortheyearendedinaccordancewiththerequirementsoftheAccountingStandardsforBusinessEnterprises.
II.Basisofopinion
WeconductedourauditinaccordancewithChinaStandardsonAuditing(“CAS”).OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’sresponsibilitiessectionofourreport.WeareindependentofOffcnEducationinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants(the“Code”),andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
Ⅲ.KeyAuditMatters
Keyauditmattersarethosemattersthat,inourprofessionaljudgement,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentperiod.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.
KeyAuditMatters
| KeyAuditMatters | HowourauditaddressedtheKeyAuditMatter |
| recognitionofrevenue | |
| Forexample,inthenotestothefinancialstatements"Ⅲ.Notesonimportantaccountingpoliciesand | Inresponsetothekeyauditmatter,weperformedproceduresasfollows: |
accountingestimates(32)”andVI.Notestoimportantitemsinconsolidatedfinacialstatements(35)”,educationandtrainingincomeaccountedfor99.26%ofthecompany’soperatingincomein2021.Thecompany'srevenuemainlyincludesordinaryclassrevenueandagreementclassrevenue.Whentheordinaryclassface-to-facetrainingserviceiscompleted,allthetrainingfeesreceivedinadvancearerecognizedasrevenue.Revenuefromonlinetraininginordinaryclassesisrecognizedonastraight-linebasisduringthevalidityperiodoftheserviceprovided.Non-refundableportionofrevenuefromagreementclassisrecognizedasrevenueuponcompletionoftrainingservices;Accordingtotheagreement,therefundpartisrecognizedasrevenuewhenthenon-refundableconditionsaremet.
Inviewofthesignificantamountofeducationandtrainingrevenue,whichisthemainsourceofcompany'sprofits.Andthefrequentoccurrenceoftransactions,theriskofmisstatementishigh.Therefore,weidentifiedthecompany'seducationandtrainingrevenueasakeyauditmatter.
| accountingestimates(32)”andVI.Notestoimportantitemsinconsolidatedfinacialstatements(35)”,educationandtrainingincomeaccountedfor99.26%ofthecompany’soperatingincomein2021.Thecompany'srevenuemainlyincludesordinaryclassrevenueandagreementclassrevenue.Whentheordinaryclassface-to-facetrainingserviceiscompleted,allthetrainingfeesreceivedinadvancearerecognizedasrevenue.Revenuefromonlinetraininginordinaryclassesisrecognizedonastraight-linebasisduringthevalidityperiodoftheserviceprovided.Non-refundableportionofrevenuefromagreementclassisrecognizedasrevenueuponcompletionoftrainingservices;Accordingtotheagreement,therefundpartisrecognizedasrevenuewhenthenon-refundableconditionsaremet.Inviewofthesignificantamountofeducationandtrainingrevenue,whichisthemainsourceofcompany'sprofits.Andthefrequentoccurrenceoftransactions,theriskofmisstatementishigh.Therefore,weidentifiedthecompany'seducationandtrainingrevenueasakeyauditmatter. | 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
ManagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisesalloftheinformationincludedin2021annualreportoftheCompanyotherthanthefinancialstatementsandourauditor’sreportthereon.
Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusionthereon.
Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.
If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.
Ⅴ.ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementisresponsibleforthepreparationofthefinancialstatementsthatgiveatrueandfairviewinaccordancewithAccountingStandardsforBusinessEnterprisesanddesigning,implementingandmaintaininginternalcontrolasthemanagementdeterminesisnecessarytoenablethepreparationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany’sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendtoliquidateOffcnEducationortoceaseoperationsorhavenorealisticalternativebuttodoso.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)Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances.However,ourpurposeisnottoexpressanopinionontheeffectivenessofinternalcontrol.
3)Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebythemanagement.
4)Concludeontheappropriatenessofthemanagement’suseofthegoingconcernbasisofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheCompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosures
areinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
5)Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
6)AcquiresufficientandappropriateauditevidencebasedonthefinancialinformationoftheCompanyorbusinessactivitiestoexpressitsauditopinionontheconsolidatedfinancialstatements.Weareresponsibleforthedirection,supervision,andexecutionofthegroupauditandassumefullresponsibilityfortheauditopinion.
Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Wealsoprovidethosechargedwithgovernancewithastatementthatwehavecompliedwithrelevantethicalrequirementsregardingindependence,andtocommunicatewiththemallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
Fromthematterscommunicatedwiththosechargedwithgovernance,wedeterminethosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentperiodandarethereforethekeyauditmatters.Wedescribethesemattersinourauditor’sreportunlesslaworregulationprecludespublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminethatamattershouldnotbecommunicatedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.
Beijing,China28April,2022
| Beijing,China28April,2022 | ChineseCertifiedPublicAccountant:(Engagementpartner) | ZhouBaiming |
| ChineseCertifiedPublicAccountant: | LiQiang |
SectionII.FinancialStatements
Theunitofthestatementinthefinancialnotes:RMB
1.ConsolidatedbalancesheetPreparedby:OffcnEducationTechnologyCo.,Ltd.
December31,2021
Unit:RMB
Items
| Items | December31,2021 | December31,2020 |
| Currentassets: | ||
| Monetaryfunds | 1,970,361,272.64 | 5,950,395,089.12 |
| Settlementreserve | ||
| Lendings | ||
| Transactionalfinancialassets | 346,726,621.74 | 983,205,858.25 |
| Derivativefinancialassets | ||
| Notesreceivable | ||
| Accountsreceivable | 40,374,842.27 | 21,493,637.66 |
| Receivablesfinancing | ||
| Prepayments | 1,438,350.00 | 2,204,120.00 |
| Premiumreceivable | ||
| Accountsreceivablereinsurance | ||
| ReserveforreinsuranceReceivablecontracts | ||
| Otherreceivables | 219,501,061.83 | 304,318,966.20 |
| Inc：Interestreceivables | ||
| Dividendsreceivables | ||
| Buyingbackthesaleoffinancialassets | ||
| Inventory | ||
| Contractassets | ||
| Assetsheld-for-sale | ||
| Non-currentassetsduewithinoneyear | 1,985,873,462.75 | |
| Othercurrentassets | 36,959,129.80 | 175,179,650.61 |
Totalcurrentassets
| Totalcurrentassets | 2,615,361,278.28 | 9,422,670,784.59 |
| Non-currentassets: | ||
| Loansandadvances | ||
| Debtinvestment | 7,058,993.55 | |
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 46,850,364.40 | |
| Otherequityinvestment | 130,400,000.00 | 152,800,000.00 |
| Othernon-currentfinancialassets | 30,260,000.00 | 208,450,315.01 |
| Investmentproperty | 644,936,541.46 | 668,014,515.82 |
| Fixedassets | 1,770,372,338.85 | 1,612,792,592.67 |
| Constructioninprogress | 294,785,678.31 | 214,248,125.04 |
| Productivebiologicalassets | ||
| Oilandgasassets | ||
| Right-of-useasset | 1,342,280,387.08 | |
| Intangibleassets | 866,627,549.85 | 426,352,455.75 |
| Developmentexpenditure | ||
| Goodwill | 99,867,720.38 | 99,867,720.38 |
| Long-termprepaidexpenses | 380,191,006.38 | 440,955,377.93 |
| Deferredtaxassets | 424,027,271.38 | 21,606,436.77 |
| Othernon-currentassets | 1,652,164,395.78 | 1,151,091,703.31 |
| TotalNon-currentAssets | 7,689,822,247.42 | 4,996,179,242.68 |
| TotalAssets | 10,305,183,525.70 | 14,418,850,027.27 |
| Currentliabilities: | ||
| Short-termloan | 3,152,945,812.59 | 3,976,019,329.22 |
| Borrowingfromthecentralbank | ||
| Borrowingsfrombanksandotherfinancialinstitutions | ||
| Transactionalfinancialliabilities | ||
| DerivativeFinancialliabilitiels |
Notespayable
| Notespayable | ||
| Accountspayable | 282,032,916.52 | 211,824,402.86 |
| Depositreceived | ||
| Contractliabilities | 3,063,721,290.28 | 4,925,428,309.33 |
| Financialassetssoldforrepurchase | ||
| Absorbingdepositsandinterbankdeposits | ||
| Actingtradingsecurities | ||
| Actingunderwritingsecurities | ||
| Payrollpayable | 422,886,856.60 | 637,448,433.99 |
| Taxespayable | 12,566,751.84 | 131,111,770.78 |
| Otherpayable | 129,043,599.22 | 9,479,383.03 |
| Inc：Interestpayable | ||
| Dividendpayable | ||
| Feesandcommissionspayable | ||
| Reinsuranceamountspayable | ||
| Liabilitiesheld-for-sale | ||
| Non-currentLiabilitiesduewithinoneyear | 531,876,007.31 | |
| Othercurrentliabilities | 91,925,853.39 | 147,765,156.66 |
| TotalCurrentLiabilities | 7,686,999,087.75 | 10,039,076,785.87 |
| Non-currentLiabilities: | ||
| Insurancecontractreserve | ||
| Long-termloan | ||
| Bondspayable | ||
| Inc:Bondspayable_preferredstock | ||
| Bondspayable_perpetualbond | ||
| Leaseliability | 635,691,184.87 | |
| Long-termpayables | ||
| Long-termsalarypayable | ||
| Estimatedliabilities |
DeferredIncome
| DeferredIncome | ||
| Deferredtaxliability | 93,712,172.62 | 104,677,444.59 |
| Othernon-currentliabilities | ||
| TotalNon-currentLiabilities | 729,403,357.49 | 104,677,444.59 |
| TotalLiabilities | 8,416,402,445.24 | 10,143,754,230.46 |
| Owners'equity: | ||
| Sharecapital | 103,807,623.00 | 103,807,623.00 |
| Otherequityinstruments | ||
| Inc:Otherequityinstruments_preferredstock | ||
| Otherequityinstruments_perpetualbond | ||
| Capitalreserve | 1,225,481,049.50 | 1,225,481,049.50 |
| less:Treasurystock | ||
| Othercomprehensiveincome | 13,200,000.00 | 30,000,000.00 |
| Specialreserve | ||
| Surplusreserves | 45,000,000.00 | 45,000,000.00 |
| Generalriskpreparation | ||
| Undistributedprofits | 501,330,081.70 | 2,870,839,120.70 |
| TotalOwners'EquityAttributableTotheParentCompany | 1,888,818,754.20 | 4,275,127,793.20 |
| Minorityshareholders'equity | -37,673.74 | -31,996.39 |
| TotalOwners'Equity | 1,888,781,080.46 | 4,275,095,796.81 |
| TotalLiabilitiesandOwners'Equity | 10,305,183,525.70 | 14,418,850,027.27 |
Legalrepresentative:WangZhendongPersoninchargeofaccounting:ShiLeiHeadofaccountingdepartment:LuoXue
2.Parentcompanybalancesheet
Unit:RMB
| Items | December31,2021 | December31,2020 |
| Currentassets: | ||
| Monetaryfunds | 59,197,879.74 | 56,138,356.37 |
| Transactionalfinancialassets | 1,573,219.32 | 1,630,453.37 |
| Derivativefinancialassets | ||
| Notesreceivable |
Accountsreceivable
| Accountsreceivable | 28,806,097.45 | 14,792,320.38 |
| Receivablesfinancing | ||
| Prepayments | ||
| Otherreceivables | 20,699,731.33 | 621,900,443.29 |
| Including:interestreceivable | ||
| Dividendreceivable | ||
| Inventory | ||
| Contractassets | ||
| Assetsheld-for-sale | ||
| Non-currentassetsduewithinoneyear | ||
| Othercurrentassets | ||
| Totalcurrentassets | 110,276,927.84 | 694,461,573.41 |
| Non-currentassets: | ||
| Debtinvestment | ||
| Otherdebtinvestment | ||
| Long-termreceivables | ||
| Long-termequityinvestment | 19,190,415,995.14 | 18,582,307,907.14 |
| Otherequityinvestment | 130,400,000.00 | 152,800,000.00 |
| Othernon-currentfinancialassets | ||
| Investmentproperty | 370,687,463.01 | 384,641,527.88 |
| Fixedassets | 371,414,975.96 | 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 |
Othernon-currentassets
| Othernon-currentassets | 1,618,391,145.38 | 501,095,111.10 |
| Totalnon-currentassets | 21,753,878,683.06 | 20,097,002,801.13 |
| Totalassets | 21,864,155,610.90 | 20,791,464,374.54 |
| Currentliabilities: | ||
| Short-termloan | 1,201,317,569.59 | 871,083,875.00 |
| Transactionalfinancialliabilities | ||
| Derivativefinancialliabilities | ||
| Notespayable | ||
| Accountspayable | 83,621,752.26 | 83,621,752.26 |
| Depositreceived | ||
| Contractliabilities | ||
| Payrollpayable | ||
| Taxespayable | 1,600,302.00 | 1,437,291.71 |
| Otherpayable | 1,307,916,006.49 | 446,606,530.72 |
| Including:interestpayable | ||
| Dividendpayable | ||
| Liabilitiesheld-for-sale | ||
| Non-currentliabilitiesduewithinoneyear | ||
| Othercurrentliabilities | ||
| Totalcurrentliabilities | 2,594,455,630.34 | 1,402,749,449.69 |
| Non-currentliabilities: | ||
| Long-termloan | ||
| Bondspayable | ||
| Bondspayablepreferredstock | ||
| Bondspayableperpetualbond | ||
| Leaseliability | ||
| Long-termpayables | ||
| Long-termsalarypayable | ||
| Estimatedliabilities | ||
| Deferredincome |
Deferredtaxliability
| Deferredtaxliability | 4,418,304.83 | 10,007,613.34 |
| Othernon-currentliabilities | ||
| Totalnon-currentliabilities | 4,418,304.83 | 10,007,613.34 |
| TotalLiabilities | 2,598,873,935.17 | 1,412,757,063.03 |
| 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 | 13,200,000.00 | 30,000,000.00 |
| Specialreserve | ||
| Surplusreserves | 387,458,806.65 | 387,458,806.65 |
| Undistributedprofits | -78,102,890.25 | 18,522,745.53 |
| Owners’equity | 19,265,281,675.73 | 19,378,707,311.51 |
| Liabilitiesandowner’sequity | 21,864,155,610.90 | 20,791,464,374.54 |
3.Consolidatedincomestatement
Unit:RMB
| Items | 2021 | 2020 |
| I.Totaloperatingincome | 6,911,723,331.79 | 11,202,494,295.04 |
| Inc:Operatingincome | 6,911,723,331.79 | 11,202,494,295.04 |
| Interestincome | ||
| Premiumearned | ||
| Feeandcommissionincome | ||
| II.Totaloperatingcosts | 9,842,898,477.96 | 9,152,970,989.56 |
| Inc:Operatingcosts | 4,993,717,363.58 | 4,567,326,931.44 |
| Interestexpense |
Feeandcommissionexpenses
| Feeandcommissionexpenses | ||
| Surrendermoney | ||
| Netreimbursementexpenditure | ||
| Withdrawalofnetinsuranceliabilitycontractreserves | ||
| Policyholderdividendexpenses | ||
| Reinsuranceexpenses | ||
| Taxesandsurcharges | 35,355,169.74 | 12,738,714.63 |
| Salesexpenses | 2,105,098,912.06 | 1,811,790,113.16 |
| Managementexpenses | 1,315,643,022.03 | 1,279,869,207.37 |
| Researchanddevelopmentexpenses | 901,469,538.57 | 1,050,697,333.79 |
| Financialexpenses | 491,614,471.98 | 430,548,689.17 |
| Inc:Interest | 274,734,405.81 | 172,114,852.12 |
| Interestincome | 58,235,304.20 | 33,148,136.69 |
| Add:Otherincome | 96,084,140.34 | 335,711,072.77 |
| Investmentincome(Lossislistedwith"-") | 79,269,900.92 | 256,543,458.65 |
| Including:investmentincomefromassociatesandjointventures | -2,149,635.60 | |
| Derecognitionincomeoffinancialassetsmeasuredatamortizedcost | ||
| Exchangeearnings((Lossislistedwith"-") | ||
| Netexposurehedgeincome(Lossislistedwith"-") | ||
| Fairvaluechangeincome(Lossislistedwith"-") | -21,490,322.52 | 20,984,385.76 |
| Expectedcreditloss(Lossislistedwith"-") | -8,529,849.40 | -1,171,052.83 |
| Assetimpairmentloss(Lossislistedwith"-") | ||
| Assetdisposalincome(Lossislistedwith"-") | -163,075.82 | 162,043.59 |
| III.Operatingprofit(Lossislistedwith"-") | -2,786,004,352.65 | 2,661,753,213.42 |
| Add:non-operatingincome | 18,141,095.89 | 65,303.00 |
| Less:non-operatingexpenses | 1,303,782.47 | 674,641.85 |
| IV.Totalprofit(Thetotallossislistedwith"-") | -2,769,167,039.23 | 2,661,143,874.57 |
| Less:Incometaxexpenses | -399,652,322.88 | 356,812,108.72 |
V.Netprofit(Netlossislistedwith"-")
| V.Netprofit(Netlossislistedwith"-") | -2,369,514,716.35 | 2,304,331,765.85 |
| i.Classifiedbybusinesscontinuity | ||
| 1.Netprofitfromcontinuingoperations(Netlossislistedwith"-") | -2,369,514,716.35 | 2,304,331,765.85 |
| 2.Netprofitfromdiscontinuedoperations(Netlossislistedwith"-") | ||
| ii.Classificationbyownership | ||
| 1.Netprofitattributabletotheowneroftheparentcompany | -2,369,509,039.00 | 2,304,357,742.74 |
| 2.Netprofitattributabletominorityshareholders | -5,677.35 | -25,976.89 |
| VI.Netothercomprehensiveincome | -16,800,000.00 | -7,500,000.00 |
| Netothercomprehensiveincomeaftertaxattributabletotheparentcompanyowner | -16,800,000.00 | -7,500,000.00 |
| i.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss | -16,800,000.00 | -7,500,000.00 |
| 1.Inc:Changesfromtheremeasurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinthefairvalueofotherequityinstruments | -16,800,000.00 | -7,500,000.00 |
| 4.Changesinfairvalueofthecompany'sowncreditrisk | ||
| 5.Other | ||
| ii.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | ||
| 1.Othercomprehensiveincomeofconvertibleprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Financialassetsreclassifiedintoothercomprehensiveincome | ||
| 4.Othercreditimpairmentprovisionsforinvestmentofcreditor'srights | ||
| 5.Effectiveportionofprofitorlossoncashflowhedging | ||
| 6.Foreigncurrencyfinancialstatementtranslationdifference | ||
| 7.Other | ||
| Netothercomprehensiveincomeaftertaxattributabletonon-controllinginterest | ||
| VIII.Totalcomprehensiveincome | -2,386,314,716.35 | 2,296,831,765.85 |
Totalcomprehensiveincomeattributabletoownersoftheparent
| Totalcomprehensiveincomeattributabletoownersoftheparent | -2,386,309,039.00 | 2,296,857,742.74 |
| Totalcomprehensiveincomeattributabletominorityshareholders | -5,677.35 | -25,976.89 |
| IX.Earningspershare | ||
| Basicearningspershare | -0.38 | 0.37 |
| Dilutedearningspershare | -0.38 | 0.37 |
Ifabusinesscombinationunderthesamecontroloccursinthecurrentperiod,thenetprofitrealizedbythecombinedpartybeforethecombinationis:RMB0.00.Thenetprofitrealizedbythecombinedpartyinthepreviousperiodwas:RMB0.00.Legalrepresentative:WangZhendongPersoninchargeofaccounting:ShiLeiHeadofaccountingdepartment:LuoXue
4.Parentcompanyincomestatement
Unit:RMB
| Items | 2021 | 2020 |
| I.Operatingincome | 14,831,488.06 | 14,829,393.86 |
| Less:operatingcost | 11,230,514.83 | 11,336,628.27 |
| Taxesandsurcharges | 4,240,824.77 | 4,239,288.81 |
| Salesexpenses | ||
| Managementexpenses | 25,966,438.27 | 6,007,122.13 |
| R&Dexpenses | ||
| Financialexpenses | 47,042,556.34 | 32,313,823.38 |
| Including:interestexpenses | 47,157,530.56 | 32,029,291.66 |
| Interestincome | 134,790.30 | 63,868.28 |
| Add:otherincome | 138,234.55 | 919,605.04 |
| Investmentincome(Lossislistedwith“-”) | -836,172.91 | 249,600.00 |
| Including:investmentincomefromassociatesandjointventures | -2,174,511.83 | |
| Derecognitionincomeoffinancialassetsmeasuredatamortizedcost | ||
| Netexposurehedgeincome(Lossislistedwith“-”) | ||
| Fairvaluechangeincome(Lossislistedwith | 42,765.95 | 28,771.73 |
“-”)
| “-”) | ||
| Expectedcreditloss(Lossislistedwith“-”) | -1,557,086.35 | -778,543.18 |
| Assetimpairmentloss(Lossislistedwith“-”) | ||
| Assetdisposalincome(Lossislistedwith“-”) | -223,987.77 | |
| II.Operatingprofit(Lossislistedwith“-”) | -76,085,092.68 | -38,648,035.14 |
| Add:non-operatingincome | ||
| Less:non-operatingexpenses | ||
| III.Totalprofit(Thetotallossislistedwith“-”) | -76,085,092.68 | -38,648,035.14 |
| Less:incometaxexpenses | 20,539,842.93 | -9,717,029.89 |
| IV.Netprofit(Netlossislistedwith“-”) | -96,624,935.61 | -28,931,005.25 |
| i.Netprofitfromcontinuingoperations(Netlossislistedwith“-”) | -96,624,935.61 | -28,931,005.25 |
| ii.Netprofitfromdiscontinuedoperations(Netlossislistedwith“-”) | ||
| V.Netothercomprehensiveincome | -16,800,000.00 | -7,500,000.00 |
| i.Othercomprehensiveincomethatcannotbereclassifiedintoprofitorloss | -16,800,000.00 | -7,500,000.00 |
| 1.Changesfromtheremeasurementofthedefinedbenefitplan | ||
| 2.Othercomprehensiveincomethatcannotbetransferredtoprofitorlossundertheequitymethod | ||
| 3.Changesinfairvalueofotherequityinstruments | -16,800,000.00 | -7,500,000.00 |
| 4.Changesinfairvalueofthecompany'sowncreditrisk | ||
| 5.Other | ||
| ii.Othercomprehensiveincomethatwillbereclassifiedintoprofitorloss | ||
| 1.Othercomprehensiveincomeofconvertibleprofitandlossundertheequitymethod | ||
| 2.Changesinfairvalueofotherdebtinvestments | ||
| 3.Financialassetsreclassifiedintoothercomprehensiveincome |
4.Creditimpairmentprovisionsofotherdebtinvestment
| 4.Creditimpairmentprovisionsofotherdebtinvestment | ||
| 5.Cashflowhedgereserve | ||
| 6.Foreigncurrencyfinancialstatementtranslationdifference | ||
| 7.Other | ||
| VI.Totalcomprehensiveincome | -113,424,935.61 | -36,431,005.25 |
| VII.Earningspershare: | ||
| ⅰBasicearningspershare | ||
| ⅱDilutedearningspershare |
5.Consolidatedcashflowstatement
Unit:RMB
| Items | 2021 | 2020 |
| I.CashFlowsfromOperatingActivities: | ||
| Cashreceivedfromthesaleofgoodsandtheservices | 5,172,563,759.32 | 13,887,896,355.44 |
| Netincreaseincustomerdepositsandinterbankdeposits | ||
| Netincreaseinborrowingfromcentralbank | ||
| Netincreaseinfundsborrowfromotherfinancialinstitutions | ||
| Cashreceivedfromtheoriginalinsurancecontractpremium | ||
| Netcashreceivedfromreinsurancebusiness | ||
| Netincreaseinpolicyholders’depositsandinvestmentfunds | ||
| Cashchargedwithinterest,handlingfeesandcommissions | ||
| Netincreaseinfundsborrowedin | ||
| Netincreaseinrepurchasefunds | ||
| Netcashreceivedfromagentbuyingandsellingofsecurities | ||
| Taxesrefund | ||
| Othercashreceivedrelatedtootherbusinessactivities | 171,941,814.92 | 282,559,487.03 |
| Subtotalofcashinflowfromoperatingactivities | 5,344,505,574.24 | 14,170,455,842.47 |
| Cashpaidforthepurchaseofgoodsandservices | 1,687,330,079.68 | 1,992,245,380.72 |
| Netincreaseincustomerloansandadvances | ||
| Netincreaseindepositofcentralbankandinterbank |
Cashpaidfortheoriginalinsurancecontract
| Cashpaidfortheoriginalinsurancecontract | ||
| Netincreaseinborrowedfunds | ||
| Cashpaidforinterest,handlingfeesandcommissions | ||
| Cashpaidforpolicydividends | ||
| Cashpaidtoandforemployees | 6,340,168,377.45 | 5,483,601,700.80 |
| Varioustaxespaid | 295,559,702.01 | 428,071,845.08 |
| Othercashpaidforbusinessactivities | 1,119,408,964.00 | 1,384,067,813.96 |
| Subtotalofcashoutflowsfrombusinessactivities | 9,442,467,123.14 | 9,287,986,740.56 |
| NetCashFlowfromOperatingActivities | -4,097,961,548.90 | 4,882,469,101.91 |
| II.CashFlowsfromInvestingActivities: | ||
| Cashreceivedfrominvestmentrecovery | 8,918,329,229.00 | 41,255,088,090.00 |
| Cashreceivedfrominvestmentincome | 247,231,808.99 | 194,836,246.67 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 3,012,387.24 | 206,748.59 |
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | 51,000,000.00 | |
| Othercashreceivedrelatedtoinvestingactivities | 200,000,000.00 | |
| Subtotalofcashinflowsfrominvestingactivities | 9,419,573,425.23 | 41,450,131,085.26 |
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 1,366,834,155.42 | 1,325,074,196.98 |
| Cashpaidforinvestment | 6,312,200,000.00 | 41,033,698,090.00 |
| Netincreaseinpledgeloans | ||
| Netcashpaidforaquiringsubsidiariesandotherbusinessunits | ||
| Othercashpaidrelatedtoinvestingactivities | 200,000,000.00 | |
| Subtotalofcashoutflowsfrominvestmentactivities | 7,679,034,155.42 | 42,558,772,286.98 |
| NetCashFlowfromInvestingActivities | 1,740,539,269.81 | -1,108,641,201.72 |
| III.CashFlowsfromFinancingActivities: | ||
| Cashreceivedfrominvestmentabsorption | ||
| Including:cashreceivedfromsubsidiariesinabsorbingminorityshareholders'investment | ||
| Cashreceivedfromloans | 4,569,000,000.00 | 5,269,000,000.00 |
| Othercashreceivedrelatedtofundraisingactivities | 1,000,000.00 |
Sub-totalofcashinflowsfromfinancingactivities
| Sub-totalofcashinflowsfromfinancingactivities | 4,569,000,000.00 | 5,270,000,000.00 |
| Cashpaidfordebtrepayment | 5,389,000,000.00 | 4,167,000,000.00 |
| Cashpaidfordividends,profitsorinterestpayments | 196,236,215.13 | 1,649,792,933.80 |
| Including:dividendsandprofitspaidbysubsidiariestominorityshareholders | ||
| Othercashpaidrelatedtofinancingactivities | 606,571,985.34 | 1,333,478.85 |
| Subtotalofcashoutflowsfromfinancingactivities | 6,191,808,200.47 | 5,818,126,412.65 |
| NetCashFlowfromFinancingActivities | -1,622,808,200.47 | -548,126,412.65 |
| IV.Effectofthechangesoftheexchangerateoncashandtheequivalents | ||
| V.NetIncreaseinCashandCashEquivalents | -3,980,230,479.56 | 3,225,701,487.54 |
| Add:balanceofcashandcashequivalentsatthebeginningoftheperiod | 5,950,036,489.12 | 2,724,335,001.58 |
| VI.Balanceofcashandcashequivalentsattheendoftheperiod | 1,969,806,009.56 | 5,950,036,489.12 |
6.Parentcompanycashflowstatement
Unit:RMB
| Items | 2021 | 2020 |
| I.Cashflowfromoperatingactivities: | ||
| Cashreceivedfromthesaleofgoodsandservices | ||
| Taxrefund | ||
| Othercashreceivedrelatedtootherbusinessactivities | 800,735,886.99 | 407,436,454.23 |
| Subtotalofcashinflowfromoperatingactivities | 800,735,886.99 | 407,436,454.23 |
| Cashpaidforthepurchaseofgoodsandservices | ||
| Cashpaidtoandforemployees | ||
| Varioustaxespaid | 4,860,974.71 | 5,086,642.85 |
| Othercashpaidforbusinessactivities | 1,030,790,404.92 | 610,796,109.47 |
| Subtotalofcashoutflowsfrombusinessactivities | 1,035,651,379.63 | 615,882,752.32 |
| Netcashflowfromoperatingactivities | -234,915,492.64 | -208,446,298.09 |
| II.Cashflowsfrominvestingactivities: | ||
| Cashreceivedfrominvestmentrecovery | 82,700,000.00 | |
| Cashreceivedfrominvestmentincome | 1,338,338.92 | 1,700,249,600.00 |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 2,507,345.00 |
Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits
| Netcashreceivedfromdisposalofsubsidiariesandotherbusinessunits | ||
| Othercashreceivedrelatedtoinvestingactivities | ||
| Subtotalofcashinflowsfrominvestmentactivities | 86,545,683.92 | 1,700,249,600.00 |
| Cashpaidforthepurchaseandconstructionoffixedassets,intangibleassetsandotherlong-termassets | 55,497.58 | 300,000,000.00 |
| Cashpaidforinvestment | 131,600,000.00 | 501,500,000.00 |
| Netcashpaidforacquiringsubsidiariesandotherbusinessunits | ||
| Othercashpaidrelatedtoinvestingactivities | ||
| Subtotalofcashoutflowsfrominvestmentactivities | 131,655,497.58 | 801,500,000.00 |
| Netcashflowsfrominvestingactivities | -45,109,813.66 | 898,749,600.00 |
| III.Cashflowfromfinancingactivities: | ||
| Cashreceivedfrominvestmentabsorption | ||
| Cashreceivedfromtheloan | 1,200,000,000.00 | 1,100,000,000.00 |
| Othercashreceivedrelatedtofundraisingactivities | 1,000,000.00 | |
| Subtotalofcashinflowsfromfinancingactivities | 1,200,000,000.00 | 1,101,000,000.00 |
| Cashpaidfordebtrepayment | 870,000,000.00 | 230,000,000.00 |
| Cashpaidfordividends,profitsorinterestpayments | 46,923,835.97 | 1,511,121,270.02 |
| Othercashpaidrelatedtofinancingactivities | 1,333,478.85 | |
| Subtotalofcashoutflowsfromfinancingactivities | 916,923,835.97 | 1,742,454,748.87 |
| Netcashflowfromfinancingactivities | 283,076,164.03 | -641,454,748.87 |
| IV.Effectofthechangesoftheexchangerateoncashandtheequivalents | ||
| V.Netincreaseincashandcashequivalents | 3,050,857.73 | 48,848,553.04 |
| Add:balanceofcashandcashequivalentsatthebeginningoftheperiod | 55,780,356.37 | 6,931,803.33 |
| VI.Balanceofcashandcashequivalentsattheendoftheperiod | 58,831,214.10 | 55,780,356.37 |
7.ConsolidatedStatementofChangesinOwners'Equity
Unit:RMB
Unit:RMB
8.StatementofChangesinOwners'Equity
Unit:RMB
Unit:RMB
SectionIII.GeneralInformation
1.OverviewofthecompanyOffcnEducationTechnologyCo.,Ltd.（referredtoasthe“company”or“thecompany”）wasformerlyknownasYaxiaAutomobileCo.,Ltd.（referedtoas“YaxiaAutomobile”），YaxiaAutomobile,alimitedcompanyestablishedbyWuhuYaxiaIndustrialCo.,Ltd.On30November302006,obtainedtheEnterpriseBusinesslicenseofEnterpriseLegalPersonNO.3402012104768issuedbyWuhuAdministrationforindustryandcommerce.YaxiaAutomobilewasapprovedbytheChinaSecuritiesRegulatoryCommission(referredtoasthe"CSRC")fortheapprovaloftheinitialpublicofferingofWuhuYaxiaAutomobileCo.,Ltd.(CSRCLicense[2011]No.1046)andissued22millionRMBordinarysharestothepublicandtradedontheShenzhenStockExchangeinAugust2011.ThecontrollingshareholderisAnhuiYaxiaIndustrialCo.,Ltd.(referredtoas“YaxiaIndustrial”).On1July2016,thecompanyobtainedtheNo.91340200711040703A“EnterpriseBusinesslicenseofEnterpriseLegalPerson”issuedbytheWuhuAdministrationforIndustryandCommerce.Asof31December2021,thecompany'ssharecapitalisRMB6,167,399,389.00.
InaccordancewiththeresolutionofthethirdextraordinarygeneralmeetingofshareholdersofYaxiaAutomobilein2018andtheresolutionofthe24thmeetingofthe4thBoardofDirectors,andapprovedbytheChinaSecuritiesRegulatoryCommission'sSecuritiesRegulatoryCommission(2018)1975,“OntheapprovalofthemajorassetrestructuringofYaxiaAutomobileCo.,Ltd.andtheissuanceofsharestoLuZhongfangandotherassetsoftheapprovalofassets”thatYaxiaAutomobileswappedallassetsandliabilities(“exchange-outassets”)otherthantheretainedassetsthatdonotconstitutebusinessasofthedateoftheassessmentofthebenchmarkfortheequivalentportion(“exchange-inassets”)of100.00%oftheequityinBeijingZhonggongEducationTechnologyCo.,Ltd.(referredtoas"ZhonggongLimited")respectivelyheldby11counterparts,includingLiYongxin.Andpaythedifferencebetweentheexchange-outassetsandtheexchange-inassetsbyissuingshares.On27December2018,YaxiaAutomobileandthecounterpartYaxiaIndustrialsignedtheConfirmationofDeliveryofAssets.Theclosingdateoftheexchange-outassetsis27December2018,fromthedateofdelivery,YaxiaAutomobile,thecounterpartywillcompletethedeliveryobligations,regardlessofwhethertheexchange-outassets(includingbutnotlimitedtolanduserights,homeownership,intellectualpropertyrightsandqualifications,permits,otherintangibleassets,etc.)isactuallycompleted,theownershipoftheassetsbelongstoYaxiaIndustrial,andalltherights,obligations,responsibilitiesandrisksrelatedtothedisposedassets(includingcontingentliabilities,hiddenliabilities)areownedandundertakenbyYaxiaIndustrial,whichhastheactualcontrolanddisposalrightsovertheexchange-outassets,andYaxiaAutomobilenolongerhasanyactualrights.Onthesameday,ZhonggongLimitedcompletedtheregistrationproceduresforindustrialandcommercialchangesonshareholderchangematters.Afterthecompletionofthisalteration,YaxiaAutomobileholdsa
100.00%stakeinZhonggongLimited,accordingly,thecontrollingshareholderandactualcontrollerofthecompanywillbechangedtoLiYongxinandLuZhongfang.On2February2019,YaxiaAutomobilechangeditsnameandchangeditsscopeofbusiness.
On23January2019,theregistrationproceduresforthetransferofsharesofthecompanyandthenewsharesofthecompanyrelatedtotherestructuringtransactionwerecompleted.
Unifiedsocialcreditcode：91340200711040703ACompanyresidence：WujiangDistrict,WuhuCity,AnhuiProvince,YaxiaAutomobileCity,BeijiangNorthRoad.
HeadquartersAddress：23HanhuaCenturyBuildingB,XueqingRoad,HaidianDistrict,BeijingThenatureoftheindustry：EducationCustomernature：MainlynaturalpersonsScopeofbusiness:technologydevelopment,technicalservices,technologypromotion,technologytransfer,technicalconsultingandtechnologyeducationandtraining(onlybranchtocarryoutthisbusiness)inthefieldofeducationandscience;offeringexhibitionservices,organizingculturalandartisticexchangeactivities(excludingperformances),conferenceservices,andconsultbusinessmanagement.(Projectssubjecttoapprovalaccordingtolawcanonlycarryoutbusinessactivitiesafterapprovalbytherelevantdepartments)
ThefinancialreportingwasapprovedbytheBoardofDirectorsoftheCompanyon28April2022.
2.ThescopeoftheconsolidatedfinancialstatementsTheconsolidatedscopeoftheconsolidatedfinancialstatementsofthecompanyisdeterminedonacontrolbasis,includingthefinancialstatementsofthecompanyandallsubsidiaries.Asubsidiaryisanenterpriseorentitycontrolledbythecompany.ThescopeoftheconsolidatedfinancialstatementsisdetailedinnoteVIII(1)“Interestinsubsidiaries”ofthisreport.ChangesinthescopeofconsolidatedfinancialstatementsaredetailedinNoteVII“ChangesInTheConsolidatedScope”ofthisreport.
SectionIV.BasisOfPreparationOfFinancialStatements
1.BasisofpreparationThefinancialstatementsarepreparedonagoingconcernbasis，accordingtothepracticaltransactions，inaccordancewiththerelevantprovisionsoftheAccountingStandardsforBusinessEnterprises,andbasedontheimportantaccountingpoliciesandaccountingestimatesdescribedbelow.
2.GoingconcernThecompanyevaluatedtheabilitytocontinueoperationsfor12monthsfrom31December2021.Afterusingallavailableinformationtomakeanassessment,itdidnotfindanymattersandsituationsthathavesignificantdoubtsabouttheabilitytocontinueoperations.Itisreasonabletopreparefinancialstatementsbasedonagoingconcernbasis.
SectionV.TheCompany’sSignificantAccountingPoliciesAndAccountingEstimates
1.StatementofcompliancewiththeAccountingStandardsforBusinessEnterprises.Thefinancialstatementsbasedontheabove-mentionedpreparationbasismeettherequirementsofthelatestAccountingStandardsforBusinessEnterprisesanditsapplicationguidelines,interpretations,andotherrelevantregulations(collectivelyreferredtoas"EnterpriseAccountingStandards")issuedbytheMinistryofFinance,whichtrulyandcompletelypresentthecompany'sfinancialposition,financialperformance,cashflowsandotherinformationfortheyearthenended.
Inaddition,thefinancialreportcompiledbyreferencetothelistinganddisclosurerequirementsofthedisclosureprovisionsoftheRulesfortheInformationDisclosureandCompilationofCompaniesPubliclyIssuingSecuritiesNO.15:--GeneralProvisionsforFinancialReport(Revisedin2014)ofCSRCaswellastheNoticeonImplementationoftheNewAccountingStandardsforListedCompanies(Letteroftheaccountingdepartment[2018]no.453).
2.Accountingperiodandbusinesscycle
TheCompany’saccountingperiodstartsfrom1Januaryandendson31December.
3.Recordingcurrency
TheCompanyadoptsRenminbi(RMB)astheirrecordingcurrency.
4.Measurementattributesofthereportitemschangeandusedinthecurrentperiod
Measurementattributesareadoptedbythecompanyincludinghistorycost，replacementcost，netrealizablevalue，presentvalue，andfairvalue.
5.Businesscombinations
5.1Theaccountingtreatmentofbusinesscombinationsinvolvingenterprisesundercommoncontrol
Thecompanyrealizeachieveamergerunderthesamecontrolinonetransactionorthroughstep-by-stepmultipletransactions.Assetsandliabilitiesobtainingfromthemergerofenterpriseismeasuredaccordingtotheshareofbookvalueofconsolidatedfinancialstatementsoffinalcontrollingpartyundertheowner’sequityofcombinedpartywithincombiningdate.Thedifferencebetweenthebookvalueofthenetassetsobtainedfromcompanyandthebookvalueoftheconsiderationthecombinationofpayment(ortheaggregatefacevalueofsharesissuedasconsideration)isadjustedtothecapitalreserve.Ifthecapitalreserveisinsufficienttooffset,theretainedearningsshallbeadjusted.
5.2Theaccountingtreatmentofbusinesscombinationsinvolvingenterprisesunderuncommoncontrol
Wherethecostofcombinationexceedstheacquirer’sinterestinthefairvalueoftheacquiree’sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Ifthecombinationcostislessthantheshareofidentifiablefairvalueofnetassetsofacquiree,firstly,conductingthereviewofmeasurementisnecessarytoachievetheacquireetheidentifiableassets,liabilitiesandthefairvalueofcontingentliabilitiesaswellasthecombinationcosts.Theacquireecombinationcostsafterreviewsarestilllessthanthefairvalueofidentifiablenetasset,thedifferencewillbeincludedintothecurrentprofitsandlosses.
Bystep-by-stepmultipletransactiontoachievebusinesscombinationsnotundercommoncontrolshouldbehandledinthefollowingorder：
（1）Adjusttheinitialinvestmentcostoflong-termequityinvestments.Iftheequityheldbeforethepurchasedateisaccountedforusingtheequitymethod,itisremeasuredatthefairvalueoftheequityonthepurchasedate,andthedifferencebetweenthefairvalueanditsbookvalueisincludedinthecurrentinvestmentincome;Changesinothercomprehensiveincomeandotherowners'equityundertheequitymethodshallbeconvertedtothecurrentincomeattheacquisitiondate,exceptforothercomprehensiveincomearisingfromthenetliabilitiesornetassets’changesofthebenefitplanremeasuredbytheinvesteeand.arisingfromchangesinthefairvalueofinvestmentinotherequityinstrumentsheld.
（2）Recognizegoodwill(ortheamountincludedinthecurrentprofitorloss).Comparetheinitialinvestmentcostoftheadjustedlong-termequityinvestmentwiththefairvalueoftheidentifiablenetassetsofthesubsidiarythatshouldbeenjoyedonthepurchasedate.Iftheformerisgreaterthanthelatter,thedifferenceisrecognizedasgoodwill;Theformerislessthanthelatter,andthedifferenceisbookedintothecurrentprofitandloss.
Circumstancesofdisposingofequitythroughmultipletransactionstothelossofcontrolofsubsidiaries
(1)Determinewhetherthevarioustransactionsintheprocessofstep-by-stepdisposalofequitytothelossofcontrolofsubsidiariesbelongtothe"packagedeal"principle
Generallytransactionsinstagesaretreatmentasapackagedealinaccountingifthetransactionterms,conditions,andeconomicimpactofdisposalofthesubsidiary'sequityinterestscomplywithoneormoreofthefollowing:
1）Thesetransactionsaremadesimultaneouslyorwithconsiderationofinfluenceoneachother;
2）Thesetransactionscanonlyachieveacompletebusinessoutcomewhentreatedasawhole;
3）Theoccurrenceofatransactiondependsontheoccurrenceofatleastoneoftheothertransactions;
4）Atransactionisuneconomicalwhentreatedalone,butiseconomicalwhenconsideredtogetherwithothertransactions.
(2)Eachtransactionintheprocessofdisposingoftheequityinstagestothelossofcontrolofthesubsidiarybelongstothe"packagedeal"accountingmethod
Disposalofvarioustransactionsintheequityinvestmentofthesubsidiaryuntilthelossofcontrolbelongstoapackageoftransactions,eachtransactionshouldbeaccountedforasatransactionthatdisposesofthesubsidiaryandlosescontrol;however,Beforelosinghecontroleachtime,thedifferencebetweenthepriceandtheshareofthesubsidiary'snetassetsharecorrespondingtothedisposaloftheinvestmentshallberecognizedasothercomprehensiveincomeintheconsolidatedfinancialstatements,andshallbetransferredtotheprofitandlossfortheperiodwhencontrolislost.
Intheconsolidatedfinancialstatements,theremainingequityshouldberemeasuredatitsfairvalueonthedatewhencontrolislost.Thesumoftheconsiderationobtainedfromthedisposaloftheequityandthefairvalueoftheremainingequity,minusthedifferencebetweenthesharesofthenetassetsthatshouldbecontinuouslycalculatedbytheatomiccompanysincethepurchasedatebasedontheoriginalshareholdingratio,shallbeincludedintheinvestmentincomeof
theperiodwhenthecompanylosescontrol..Othercomprehensiveincomerelatedtotheoriginalsubsidiary'sequityinvestmentshallbeconvertedtocurrentinvestmentincomeorretainedearningswhencontrolislost.
（3）Eachtransactionintheprocessofdisposingofequityinstepstothelossofcontrolofasubsidiaryisnotanaccountingtreatmentof“packagedeal”Ifthedisposaloftheinvestmentinthesubsidiarydoesnotlosecontrol,thedifferencebetweenthedisposalpriceintheconsolidatedfinancialstatementsandtheshareofthesubsidiary’snetassettothedisposalinvestmentisincludedinthecapitalreserve(capitalpremiumorequitypremium).Ifthecapitalpremiumisinsufficienttooffset,theretainedearningsshouldbeadjusted.
Whendisposingofthelossofcontrolovertheinvestmentinasubsidiary,intheconsolidatedfinancialstatements,theremainingequityshouldberemeasuredatitsfairvalueonthedatewhencontrolislost.ThesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequityminustheshareofthenetassetsthatshouldhavebeencalculatedbytheoriginalsubsidiaryfromthedateofpurchasebasedontheoriginalshareholdingratioisincludedintheInvestmentincome.Othercomprehensiveincomerelatedtotheequityinvestmentoftheoriginalsubsidiaryshallbeconvertedtocurrentinvestmentincomeorretainedearningswhencontrolislost.
6.Preparationofconsolidatedfinancialstatements
ConsolidatedfinancialstatementsarebasedontheParent’sanditssubsidiaries’financialstatementsinaccordencewithAccountingStandardsforBusinessEnterprisesNo.33–Consolidatedfinancialstatement.
7.Classificationofjointarrangementandaccountingmethodsofjointoperations
7.1JointventurearrangementsclassificationandCo-operationaccountingtreatment
Ajointarrangementreferstoanarrangementjointlybytwoormoreparties.Thejointarrangementhasthefollowingcharacteristics:(1)allparticipantsareboundbythearrangement;(2)twoormoreparticipantsexercisejointcontroloverthearrangement.Nosinglepartyshallbeabletocontrolthearrangement,andanypartythathasjointcontroloverthearrangementshallbeabletopreventanyotherpartyorcombinationofpartiesfromcontrollingthearrangementalone.
Jointcontrolreferstothesharedcontroloveracertaineconomicactivityasrequiredinthecontract,andonlyexistswhenallinvestorssharingsuchcontrolrelatedtotheactivityhaveconsented.
Ajointarrangementisclassifiedaseitherajointoperationorajointventure.Ajointoperationisajointarrangementwherebythejointoperatorshaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythejointventuresonlyhavetherightstothenetassetsunderthisarrangement.
7.2Accountingtreatmentofjointventurearrangement
Ajointoperatorshallrecognizethefollowingitemsinrelationtoitsinterestinajointoperation,andaccountfortheminaccordancewithrelevantaccountingstandards:1)Itssolely-heldassets,anditsshareofanyassetsheldjointly;2)Itssolely-assumedliabilities,anditsshareofanyliabilitiesincurredjointly;3)Itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;4)Itsshareoftherevenuefromsaleoftheoutputbythejointoperation;5)Its
solely-incurredexpensesanditsshareofanyexpensesincurredjointly.Theparticipantsinajointventureshall,inaccordancewiththeAccountingStandardsforEnterprisesNo.2long-termequityinvestment,makeaccountingarrangementsfortheinvestment.
8.CriteriaforthedeterminationofcashandcashequivalentsTheterm"cash"ofcashflowstatementreferstocashonhandanddepositsthatareavailableforpaymentatanytime.Thetermof“cashequivalents”referstoshort-term(usuallyduewithin3monthsfromtheacquisitiondate)andhighlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
9.Foreigncurrencytransactionandforeigncurrencystatementtranslation
9.1TransactionsdenominatedinforeigncurrenciesOninitialrecognition,aforeigncurrencyamount,includingsharecapitalandcapitalreserves,istranslatedintofunctionalcurrencybyapplyingthespotexchangerateonthedateofthetransactionannouncedbyPeople’sBankofChina.Atthebalancesheetdate,foreigncurrencybalancecomprisedofforeigncurrencymonetaryitemsandforeigncurrencynon-monetaryitems,shallbeadjusted:foreigncurrencymonetaryitems,ofwhichtheexchangedifferencebetweeninitialexchangerateandthespotexchangerateattheendoftheperiod,shallberecognizedintoprofitandlossfortheperiod;exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencyforconstructinganassetthatqualifiesforcapitalizationshallbecapitalizedbeforeit’sreadyforintendeduseandrecognizedintocostofconstructioninprogress;foreigncurrencynon-monetaryitemsmeasuredatfairvalue,thedifferenceofwhichshallberecognizedintoprofitandlossfortheperiodasfairvaluechanges.
9.2TranslationoffinancialstatementsdenominatedinforeigncurrenciesTheassetsandliabilitiesofthebalancesheetaretranslatedusingthespotexchangerateatthebalancesheetdate;allitemsexceptfor'undistributedprofits'oftheowner'sequityaretranslatedatthespotexchangerateonthetransactiondate.Therevenueandexpensesintheincomestatementaretranslatedusingtheapproximaterateofthespotexchangerateonthetransactiondate.Differencesarisingfromthetranslationofforeigncurrencyfinancialstatementsarerecognisedastheothercomprehensiveincome.
10.Financialinstruments
10.1RecognitionandderecognitionoffinancialinstrumentsThecompanyrecognizesafinancialassetorafinancialliabilitywhenitbecomesonepartytothecontractualprovisionsoftheinstrument.Allregularwayspurchasingorsellingoffinancialassetsarerecognizedandderecognizedonatradedatebasis.Regularwaypurchasingorselling,meansthatreceiveordeliverfinancialassetswithinthetimelimitstipulatedbyregulationsorcommonpractices,asagreedinthetermsofthecontract.Tradedate,isthedatethecompanypromisestobuyinorselloutthefinancialassets.
Thecompanyderecognizethefinancialassets(eitherapart,orapartofasimilargroup),whichiswritingitoffthebalancesheet,iffollowingconditionsaremet:
（1）Expirationoftherighttoreceivecashflowfromfinancialassets;
（2）Therighttoreceivecashflowfromfinancialassetshasbeentransferred,orbeartheobligationtopayallcashreceivedtothirdpartyintimedueto“Hand-Overarrangement”;and(a)allrisksandbenefitsofthefinancialassetshasbeentransferredvirtually,or(b)thoughnotallrisksandbenefitsofthefinancialassetshasbeentransferred,butlosethecontrolofthefinancialassets.
10.2Classificationandmeasurementoffinancialassets
Accordingtothebusinessmodelformanagingfinancialassetsandthecontractualcashflowcharacteristicsoffinancialassets,thecompany’sfinancialassetshasinitiallybeenclassifiedasfollows:financialassetsatamortizedcost,andfinancialassetsatfairvaluethroughothercomprehensiveincome,financialassetsatfairvaluethroughprofitorloss.Subsequentmeasurementoffinancialassetsdependsonitscategories.
Thecompany'sclassificationoffinancialassetsisbasedonthecompany'sbusinessmodelanditscharacteristicsofcashflow.
（1）Financialassetsatamortizedcost
Financialassetsareclassifiedasfinancialassetsatamortizedcostwhenfollowingconditionsaremet:thecompany’sbusinessmodelformanagingfinancialassetstargetstoreceivecontractualcashflow;Thecontractualtermsofthefinancialassetstipulatethatthecashflowgeneratedonaspecificdateisonlythepaymentoftheprincipalandtheinterestbasedontheoutstandingprincipalamount.Forsuchfinancialassets,usingeffectiveinterestratemethodandsubsequentlymeasureatamortizedcost,gainsorlossesarisingfromamortizationorimpairmentarerecognizedincurrentprofitorloss.
（2）Liabilityinvestmentatfairvaluethroughothercomprehensiveincome
Financialassetsareclassifiedasliabilityinvestmentatfairvaluethroughothercomprehensiveincomewhenfollowingconditionsaremet:thecompany’sbusinessmodelformanagingfinancialassetstargetsboththecollectionofcontractualcashflowsandthesaleoffinancialassets;Thecontractualtermsofthefinancialassetstipulatethatthecashflowgeneratedonaspecificdateisonlythepaymentoftheprincipalandtheinterestbasedontheoutstandingprincipalamount.Forsuchfinancialassets,subsequentlymeasureatfairvalue.Thediscountorpremiumisamortizedusingtheeffectiveinterestmethodandrecognizedasinterestincomeorexpense.Exceptfortheimpairmentlossandtheexchangedifferencesofforeignmonetaryfinancialassetsarerecognizedasprofitorlossfortheperiod,thechangesinthefairvalueofsuchfinancialassetsarerecognizedinothercomprehensiveincome,theaccumulatedgainsorlossesistransferredtoprofitorlossuntilit’sderecognized.Interestincomerelatedtosuchfinancialassetsisincludedinthecurrentprofitandloss.
（3）Equityinvestmentatfairvaluethroughothercomprehensiveincome
Thecompanyirrevocablydesignatedthenon-tradingequityinvestmentasfinancialassetsatfairvaluethroughother
comprehensiveincome,andonlytherelateddividendincomeisrecognizedinprofitorloss.Theaccumulatedgainsorlossesistransferredtoretainedearningsuntilit’sderecognized.
（4）FinancialassetsatfairvaluethroughprofitorlossAnyfinancialassetsthatarenotheldinoneofthetwobusinessmodelsmentionedabovearemeasuredatfairvaluethroughprofitorloss.Atthetimeofinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatches,financialassetscanbedesignatedasfinancialassetsatfairvaluethroughprofitorloss.Forsuchfinancialassets,subsequentlymeasuredatfairvalue,andallchangesinfairvaluearerecognizedinprofitorloss.
Whenandonlywhen,thecompanychangesitsbusinessmodelformanagingfinancialassetsitmustreclassifyallaffectedfinancialassets.
Forfinancialassetsatfairvaluethroughprofitorloss,therelatedtransactionexpenseisdirectlyrecognizedincurrentprofitorlossasincurred,andotherfinancialassets’transactionexpenseisincludedintheinitialrecognitionamount.
10.3Classificationandmeasurementoffinancialliabilities
Thecompany’sfinancialassetshaveinitiallybeenclassifiedasfollows:financialliabilitiesatamortizedcostandfinancialliabilitiesatfairvaluethroughprofitorloss.
Thefinancialliabilitiesmeetinganyofthefollowingconditionscanbedesignatedasthefinancialliabilitiesatfairvaluethroughprofitandloss：（1）Suchdesignationcaneliminateorsignificantlyreduceaccountingmismatches.（2）Accordingtocorporateriskmanagementorinvestmentstrategiesasstatedinformalwrittendocuments,themanagementandperformanceevaluationoffinancialliabilityportfoliosorcombinationsoffinancialassetsandfinancialliabilitiesarebasedonfairvalue,andreportedtokeymanagementpersonnelonthisbasiswithintheenterprise.（3）Suchfinancialliabilitiesincludeembeddedderivativesthatneedtobesplitseparately.
Thecompanydeterminestheclassificationoffinancialliabilitiesatinitialrecognition.Forfinancialliabilitiesmeasuredatfairvaluethroughprofitorloss,therelatedtransactionexpenseisdirectlyrecognizedincurrentprofitorloss.Therelatedtransactionexpenseofotherfinancialliabilitiesisincludedintheinitialrecognitionamount.
Subsequentmeasurementoffinancialliabilitiesdependsonitscategories:
（1）Financialliabilitiesatamortizedcost
Basedonamortizedcost,subsequentlymeasureitusingtheeffectiveinterestratemethod.
（2）Financialliabilitiesatfairvaluethroughprofitorloss
Itincludesfinancialliabilities(includingderivativesthatarefinancialliabilities)andfinancialliabilitiesthataredesignatedatfairvaluethroughprofitorloss.
10.4Offsettingoffinancialinstruments
Ifthefollowingconditionsaremetatthesametime,thenetamountofthefinancialassetsandfinancialliabilitiesoffseteachothershallbeshowninthebalancesheet:thereisalegalrighttooffsettherecognizedamount,andsuchlegalrightis
currentlyenforceable;Planstoliquidatethefinancialassetonanetbasisorsimultaneouslyliquidatethefinancialliability.
10.5ImpairmentoffinancialassetsBasedonexpectedcreditlosses,theCompanyundertakesimpairmenttreatmentandconfirmslossprovisionsoffinancialassetsatamortisedcost,debtinstrumentinvestmentsatfairvaluethroughothercomprehensiveincomeandfinancialguaranteecontracts.Creditlossreferstothedifferencebetweenthecashflowofallcontractsdiscountedattheoriginaleffectiveinterestrateandtheexpectedcashflowofallcontractsreceivables,i.e.thepresentvalueofallcashshortages.Thecompanyestimates,individuallyorincombination,theexpectedcreditlossesoffinancialassetsmeasuredatamortizedcostandfinancialassets(debtinstruments)measuredatfairvalueandwhosechangesareaccountedforinothercomprehensiveincome,takingintoaccountallreasonableandevidence-basedinformation,includingforward-lookinginformation.
(1)GeneralmodelofexpectedcreditlossIfthecreditriskofthefinancialinstrumenthasincreasedsignificantlysincetheinitialrecognition,thecompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentfortheentirelifeoftheinstrument;Ifthecreditriskofthefinancialinstrumenthasnotincreasedsignificantlysincetheinitialrecognition,thecompanyshallmeasurethelossprovisionattheamountequivalenttotheexpectedcreditlossofthefinancialinstrumentinthenext12months.Theincreaseorrolloveramountofthelossprovisionshallberecordedinthecurrentprofitandlossasanimpairmentlossorgain.Forthecompany'sspecificassessmentofcreditrisk,pleaserefertoNoteIXofthisreportfordetails.“RisksAssociatedWithFinancialInstruments”.
Thecreditriskoftheinstrumentisgenerallydeemedtohaveincreasedsignificantlyifthedefaultismorethan30days,unlessthereisconclusiveevidencethatthecreditriskoftheinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.
Specifically,thecompanydividestheprocessofcreditimpairmentoffinancialinstrumentswithoutcreditimpairmentatthetimeofpurchaseororiginationintothreestages.Therearedifferentaccountingtreatmentsfortheimpairmentoffinancialinstrumentsatdifferentstages:
Stage1:creditriskhasnotincreasedsignificantlysinceinitialrecognition.
Forthefinancialinstrumentatthisstage,theenterpriseshallmeasurethelossprovisionaccordingtotheexpectedcreditlossinthenext12months,andcalculatetheinterestincomeaccordingtoitsbookbalance(thatis,theimpairmentprovisionisnotdeducted)andtheactualinterestrate(iftheinstrumentisafinancialasset,thesamebelow).
Stage2:creditriskhasincreasedsignificantlysincetheinitialrecognition,butcreditimpairmenthasnotyetoccurred.
Forafinancialinstrumentatthisstage,theenterpriseshallmeasurethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslife,andcalculateinterestincomeaccordingtoitsbookbalanceandactualinterestrate.
Stage3:creditimpairmentoccursafterinitialrecognitionForthefinancialinstrumentinthisstage,theenterpriseshallcalculatethelossprovisionaccordingtotheexpectedcreditlossoftheinstrumentthroughoutitslifetime,butthecalculationofinterestincomeisdifferentfromthatofthefinancialassetinthefirsttwostages.Forthefinancialassetswhosecreditimpairmenthasoccurred,theenterpriseshallcalculatetheinterestincomeatitsamortizedcost(bookbalancelesstheimpairmentprovision,thatis,bookvalue)andtheactualinterestrate.Forfinancialassetswhosecreditimpairmenthasoccurredatthetimeofpurchaseororigin,theenterpriseshallonlyrecognizethechangesintheexpectedcreditlossduringthewholedurationaftertheinitialrecognitionaslossprovision,andcalculateinterestincomeatitsamortizedcostandtheactualinterestrateadjustedbycredit.
（2）Thecompanychoosesnottocomparethecreditriskofafinancialinstrumentwithalowercreditriskonthebalancesheetdatewiththecreditriskatthetimeoftheinitialrecognition,butdirectlyassumesthatthecreditriskoftheinstrumenthasnotincreasedsignificantlysincetheinitialrecognition.Iftheenterprisedeterminefinancialinstruments,thelowertheriskofdefaultintheborrowersintheshort-termabilitytofulfillitsobligationtopaythecontractcashflowisverystrong,andeventheeconomicsituationandbusinessenvironmentinalongtermadversechange,alsowillnotnecessarilyreducetheborrower'sabilitytofulfillitsobligationtopaythecontractcashflow,thenthefinancialinstrumentscanbeseenasalowercreditrisk.
（3）Receivablesandleasereceivables
Thecompanyfortheaccountingstandardsforenterprisesno.14-revenues,excludingprovisionsbymajorfinancingelements(includingaccordingtothecriteriadoesnotconsidernomorethanayearoffinancingelements)inthecontractofreceivables,thesimplifiedmodelofcreditlosses,alwaysinaccordancewiththeexpectedamountofcreditlossesthroughoutthedurationofmeasuringitslosses.
Forreceivablescontainingsignificantfinancingelementsandleasereceivablesspecifiedintheaccountingstandardsforbusinessenterprisesno.21--leasing,thecompanymakesanaccountingpolicychoiceandchoosestoadoptasimplifiedmodelofexpectedcreditloss,thatis,tomeasurethelossprovisionaccordingtotheamountequivalenttotheexpectedcreditlossinthewholeduration.
10.6Financialassettransfer
Ifalmostalltherisksandrewardsofownershipoffinancialassetshavebeentransferredtothetransferee,thefinancialassetsarederecognized;ifalmostalltherisksandrewardsofownershipofthefinancialassetsareretained,thefinancialassetsarenotderecognized.
Neithertransfernorretainalmostallrisksandrewardsofownershipoffinancialassets,whicharedealtwithasfollows:
Ifthefinancialassetsareabandoned,derecognizethefinancialassetsandrecognizetheassetsandliabilities;Ifnotabandoned,recognizetherelevantfinancialassetsaccordingtotheextenttowhichtheycontinuetobeinvolvedinthetransferredfinancialassets,andrecognizetherelatedliabilities.
Ifthetransferredfinancialassetsarecontinuedtobeinvolvedbyfinancialwarranty,theassetsshouldberecognizedat
lowerofthebookvalueofthefinancialassetsandthefinancialwarrantyamount.Thefinancialwarrantyamountreferstothemaximumamountoftheconsiderationreceivedthatwillberequiredtoberepaid.
11.AccountsreceivableForaccountsreceivable,whethersignificantfinancingisinvolvedornot,thesimplifiedmodelofexpectedcreditlossisadopted.theCompanywillalwaysmeasureitsprovisionforlossbasedontheamountequivalenttotheexpectedcreditlossofitsentireduration,andtheincreaseorreversalamountoftheprovisionforlossresultingtherefromisincludedintheprofitandlossoftheperiodasanimpairmentlossorgain.Thecompanyconsidersallreasonableandevidence-basedinformation,includingforward-lookinginformation,toestimatetheexpectedcreditlossoftheaccountsreceivablesindividuallyorincombination.
Whenasinglefinancialassetcanevaluatetheexpectedcreditlossinformationatareasonablecost,thecompanychoosestocalculatethecreditlossindividually.Whenasinglefinancialassetcannotevaluatetheexpectedcreditlossinformationatareasonablecost,thecompanywilldividetheaccountsreceivablesintoseveralcombinationsinaccordancewiththecharacteristicsofcreditrisk,andtheexpectedcreditlossiscalculatedonthebasisofthecombination.Thebasisfordeterminingthecombinationisasfollows:
CombinationType
| CombinationType | Thebasisfordeterminingthecombination |
| Combination1 | Receivablesfromrelatedcompanies |
| Combination2 | Receivablesfromhotelservices |
| Combination3 | Otherreceivables |
Fortheaccountsreceivableclassifiedasacombination,thecompanyreferstothehistoricalcreditlossexperience,combinesthecurrentsituationandtheforecastoffutureeconomicconditions,andpreparedacomparisontablebetweentheageofaccountsreceivableandtheexpectedcreditlossratefortheentiredurationtocalculatetheexpectedcreditloss.
12.Receivablesfinancing
Ifafinancialassetmeetsthefollowingconditionsatthesametime,itisclassifiedasafinancialassetsatfairvaluethroughothercomprehensiveincome:Thecompany'sbusinessmodelformanagingthefinancialassetistobothcollectcontractcashflowsandsellfinancialassets;Thecontractualtermsofthefinancialassetstipulatethatthecashflowsgeneratedonaparticulardateareonlypaymentsofprincipalandinterestbasedontheamountofoutstandingprincipal.
Thecompanywilltransferthereceivablesheldintheformofdiscountorendorsement,andthistypeofbusinessismorefrequentandtheamountinvolvedislargerwhosemanagementbusinessmodelisessentiallytoreceivebothcontractcashflowsandsell.Inaccordancewiththerelevantprovisionsoffinancialinstruments.thecompanyclassifiesthemas
financialassetsthatmeasurechangesatfairvalueandaccountforchangesinothercomprehensiveincome.
13.Otherreceivables
Thecompanyadoptsthegeneralmodelofexpectedcreditlosstodealwithotherreceivables,asdetailedinNoteIII
(10)“FinancialInstruments”.
Thecompanyconsidersallreasonableandsubstantiatedinformation,includingforward-lookinginformation,toestimatetheexpectedcreditlossesofotherreceivablesindividuallyorincombination.Whenindividualfinancialassetscanexpectcreditlossesatareasonablecostevaluationofinformation,thecompanychooseindividualcreditlosses,whenindividualfinancialassetsnotcreditlossesatareasonablecostevaluationofinformation,thecompanyonthebasisofcreditriskcharacteristicscouldbedividedintoseveralotherreceivablesportfolio,basedonthecombinationofcomputingexpectedcreditlosses,determinethebasisofacombinationisasfollows:
Type
| Type | Basis |
| Combination1 | Amountsduefromrelatedparties |
| Combination2 | Staffreceivables,deposits,securitydeposits |
| Combination3 | ReceivablesotherthanPortfolio1,Portfolio2 |
Forotherreceivablesdividedintoportfolios,thecompanycalculatestheexpectedcreditlossthroughdefaultriskexposureandexpectedcreditlossrateinthenext12monthsorthewholeduration,byreferringtothehistoricalcreditlossexperienceandcombiningthecurrentsituationwiththeforecastoffutureeconomicconditions.
14.Inventory
14.1Classificationofinventories
Inventoriesrefertothefinishedgoodsorcommoditiesheldforsaleindailyactivities,goodsinprogressintheproductionprocess,consumedmaterialsandsuppliesintheproductionprocessorprovidingservicesoftheCompany.
14.2Measurementofinventoriestransferredout
Finishedgoodsareaccountedforusingtheweightedaverageattheendofthemonthmethoduponissuance.
14.3Basisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueofinventories.
Atthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthenetrealizablevalueisbelowthecostofinventories,aprovisionfordeclineinvalueofinventoriesismade.Forinventoriesofgoodsdirectlyusedforsale,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheamountoftheestimatedsellingpriceoftheinventorylesstheestimatedsalescostandrelevanttaxesandfees;formaterialinventoriesthatneedtobeprocessed,inthenormalproductionandoperationprocess,thenetrealizablevalueisdeterminedbytheamountoftheestimatedsellingpriceoffinishedproductsproducedlesstheestimatedcosttobeoccurredatthetimeofcompletion,theestimatedsellingexpensesandrelatedtaxes;onthebalancesheetdate,someofthesameinventoryhasifthecontractpriceisagreedandthereisnocontractpriceinotherparts,thenetrealizablevalueisdeterminedseparatelyandcomparedwithitscorrespondingcosttodeterminetheamountoftheprovisionforinventorydepreciationorreversal.
14.4Inventorycountsystem
Theperpetualinventorysystemismaintainedforstocksystem.
14.5Amortizationoflow-valueconsumablesandpackages
（1）Low-valueconsumablesLow-valueconsumablesareamortizedbyone-timewrite-off.
（2）PackagesPackagesareamortizedbyone-timewrite-off.
15.Contractasset
1.ConfirmationmethodsandstandardsofcontractassetsThecompanypresentedascontractassetsorcontractliabilitiesinthestatementoffinancialpositionbasedontherelationshipbetweenperformanceobligationsandcustomerpayments.Therightthatthecompanyareentitledtocollecttheconsiderationforhavingtransferredgoodsorservicestotheclient（exceptreceivables）ispresentedascontractasset.
2.DeterminationmethodsandaccountingtreatmentmethodsofexpectedcreditlossofcontractassetsThecompanyadoptsthesimplifiedexpectedcreditlossmodelforcontractassets,regardlessofwhetheritcontainsmajorfinancingcomponents,thatis,thelossreservesarealwaysmeasuredaccordingtotheamountofexpectedcreditlossesduringtheentirelifetime,andtheresultingincreaseorreversalofthelossreservesareincludedinthecurrentprofitandlossasanimpairmentlossorgain.
16.Assetsheld-for-saleThecompanydividesthecorporatecomponents（ornon-currentasset）thatmeetallofthefollowingconditionsintoholdingforsale:（1）Basedontheusualpracticeofsellingsuchassetsordisposalgroupsinsimilartransactions,theycanbesoldimmediatelyundercurrentconditions;（2）Thesaleishighlyprobable,aresolutionhasbeenmadeonasaleplanandafirmpurchasecommitmenthasbeenobtainedanditisexpectedthatthesalewillbecompletedwithinoneyear.Approvalsfromrelevantauthoritiesorregulatoryauthoritieshavebeenobtainedinaccordancewithrelevantregulations.TheCompanyadjuststheexpectednetsalvagevalueheldforsaletoreflectthenetamountofitsfairvaluelesscoststosell(notoveritscarryingamount).Thedifferencebetweentheoriginalbookvalueandtheadjustednetresidualvalueisincludedintheprofitorlossofthecurrentperiodasanassetimpairmentloss.Atthesametime,provisionforimpairmentofassetsheldforsalewasmade.Fortheamountofimpairmentlossofassetsconfirmedbythedisposalgroupheldforsale,thebookvalueofgoodwillinthedisposalgroupshouldbeoffsetfirst,andthentheproportionofthebookvalueofvariousnon-currentassetsmeasuredinthedisposalgroupaccordingtotheapplicationofthisstandardmeasurement.Proportionatelydeductsitsbookvalue.
Ifthefairvalueofthenon-currentassetsheldforsaleonthebalancesheetdateislessthanthenetvalueofthesellingexpenses,theamountofthepreviouswrite-downshallberestoredandtheimpairmentofassetsrecognizedafterbeingclassifiedasheldforsaleshallbemade.Theamountofthelossisreversedandtheamountreversedisincludedinthecurrentprofitorloss.Impairmentlossesonassetsrecognizedpriortoclassificationasheldforsaleshallnotbereversed.Ifthefairvalueofthedisposalgroupheldforsaleonthesubsequentbalancesheetdayisincreased,thenetamountafterthe
saleexpenseisincreased,theamountofthepreviouslywrittendownamountshallberestored,andshallapplytothemeasurementrequirementsofthisstandardafterbeingclassifiedasheldforsale.Theimpairmentlossofassetsconfirmedbynon-currentassetsisreversedwithintheamount,andthereversedamountisincludedinthecurrentprofitorloss.Thecarryingamountofthegoodwillthathasbeeneliminatedandthenon-currentassetsapplicabletothemeasurementofthisstandardwillnotbereversedifitisrecognizedbeforetheassetsareclassifiedasheldforsale.Thesubsequentreversaloftheassetimpairmentlossconfirmedbythedisposalgroupheldforsaleshallbebasedontheproportionofthebookvalueofvariousnon-currentassetsmeasuredandappliedinthedisposalgroupinadditiontogoodwill,andshallincreaseitsbookvalueproportionately.Thecompanyiscommittedtoasaleplaninvolvinglossofcontrolofsubsidiaryshallclassifyalltheassetsandliabilitiesofthatsubsidiaryheldforsaleinconsolidatedbalancesheetswhentheabovecriteriaaremet,regardlessofwhethertheCompanyretainanon-controllinginterestsinitsformersubsidiaryafterthesale.Inthebalancesheetsofparentcompanytheinvestmentshouldbeclassifiedasheldforsaleinfull.
17.DebtinvestmentTheCompanyusesthegeneralmodelofexpectedcreditlossesfordebtinvestment.Fordetails,pleaserefertoNoteIII.(10).“FinancialInstruments”.
18.Long-termequityinvestment
18.1Determinationofinvestmentcosts
（1）Thebusinesscombinationsundercommoncontrol,thecombinedpartytopayincash,transfersnon-cashassets,assumeddebtorequitysecuritiesascombinedconsideration,onthecombiningdateaccordingtotheowner'sequityinthecombinedpartyonthefinalcontrolparty'sshareofthebookvalueoftheconsolidatedfinancialstatementsasitsinitialinvestmentcost.Thedifferencebetweeninitialinvestmentcostinthelong-termequityinvestmentandbookvalueofthepaidmergerconsiderationofthetotalamountofthefacevalueoftheissuedsharestoadjustcapitalreserves;ifcapitalreservesareinsufficienttowrite-downs,itneedstoadjusttheretainedearnings.
Whereabusinesscombinationunderthesamecontrolisrealizedstepbystep,thecombinationdatecalculatedonthebasisoftheshareholdingratioshallenjoytheshareofthebookowner’sequityofthecombinedpartyastheinitialinvestmentcostoftheinvestment.Thedifferencebetweentheinitialinvestmentcostandthebookvalueoftheoriginallong-termequityinvestmentplusthesumofthebookvaluesoffurtherconsiderationpaidforthenewsharespaidonthemergerdateisadjustedforcapitalreserve(capitalpremiumorequitypremium).ifcapitalreserveinsufficienttooffset,thenadjustretainedearnings.
（2）Thebusinesscombinationsnotundercommoncontrol,inaccordancewiththepaymentofthefairvalueofthemergerconsiderationisitsinitialinvestmentcostontheacquisitiondate.
（3）Exceptfortheformationofenterprisemerger:ifthepurchasepriceispaidincash,theinitialinvestmentcostshallbethepurchasepriceactuallypaid;Whereequitysecuritiesareissued,thefairvalueofequitysecuritiesissuedshallbetakenastheinitialinvestmentcost;Whereaninvestorinvests,theinitialinvestmentcostshallbethevalueagreeduponintheinvestmentcontractoragreement(exceptwherethevalueagreeduponinthecontractoragreementisnotfair).
17.2SubsequentmeasurementandrecognitionmethodsofprofitsandlossesForthelong-termequityinvestmentcontrolledbythecompanytotheinvestee,thecompanyshalladoptthecostmethodintheindividualfinancialstatementsofthecompany;Long-termequityinvestmentswithjointcontrolorsignificantinfluenceshallbeaccountedforusingtheequitymethod.
Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Exceptforcashdividendsorprofitsalreadydeclaredbutnotyetpaidthatareincludedinthepriceorconsiderationactuallypaiduponacquisitionoftheinvestment,investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee,andatthesametimewhetherlong-terminvestmentinaccordancewiththerelevantpolicyconsiderationsofthedeclinedvalueofassetimpairment.Forcheckingbytheequitymethod,theinitialinvestmentcostofthelong-termequityinvestmentisnotadjustedifitisgreaterthanthefairvalueshareofthenetidentifiableassetsoftheinvesteeintheinvestment;iftheinitialinvestmentcostofthelong-termequityinvestmentissmallerthanthefairvalueshareofthenetidentifiableassetsoftheinvesteeintheinvestment,thebalanceischargedtocurrentprofitandlossandthecostofthelong-termequityinvestmentisadjusted.
Whentheequitymethodisadopted,aftertheacquisitionoflong-termequityinvestment,theinvestmentprofitandlossshallberecognizedandthebookvalueoflong-termequityinvestmentshallbeadjustedaccordingtotheshareofnetprofitandlossrealizedbytheinvesteethatshouldbeenjoyedorShared.Uponconfirmationoftheinvestedentityshallbeaccordedtothenetprofitsandlossesoftheshare,inordertoobtaintheinvestedentity,whenthefairvalueoftheidentifiableassetssuchasbasis,accordingtothecompany'saccountingpoliciesandaccountingperiods,andoffsetandassociatedenterprisesandjointventuresbetweeninsidertradingprofitsandlossesaccordingtotheshareholdingcalculationbelongstopartoftheinvestmententerprise(butinsidertradinglossbelongstotheassetimpairmentloss,shouldbeafullconfirmation),netincomeoftheinvestedentityafteradjustmentforconfirmation.Accordingtotheprofitorcashdividenddeclaredtobedistributedbytheinvestee,calculatethesharepayable,andcorrespondinglyreducethebookvalueofthelong-termequityinvestment.Thecompanyshallrecognizethenetlossincurredbytheinvesteetotheextentthatthebookvalueofthelong-termequityinvestmentandotherlong-termrightsandinterestssubstantiallyconstitutingthenetinvestmentoftheinvesteeshallbewrittendowntozero,exceptwherethecompanyisobligatedtobearadditionallosses.Forthechangesofowners'equityotherthanthenetprofitandlossoftheinvestee,thebookvalueofthelong-termequityinvestmentshallbeadjustedandincludedintheowners'equity.
17.3Determinethebasisofcontrollingandsignificantinfluenceontheinvestedentity
Controlreferstohavingthepowerovertheinvestee,enjoyingthevariablereturnthroughparticipatingintheinvestee'srelevantactivities,andhavingtheabilitytousethepowerovertheinvesteetoaffectthereturnamount;Majorinfluencemeansthattheinvestorhastherighttoparticipateinthedecision-makingofthefinancialandbusinesspoliciesoftheinvestee,butcannotcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.
17.4Disposaloflong-termequityinvestments
（1）Partialdisposalofalong-termequityinvestmentinasubsidiarywithoutlossofcontrol
Ifpartofthelong-termequityinvestmentinthesubsidiaryisdisposedofwithoutlosingcontrol,thedifferencebetweenthedisposalpriceandthebookvaluecorrespondingtothedisposalinvestmentshallberecognizedasthecurrentinvestmentincome.
（2）Lossofcontroloverasubsidiarybypartialdisposalofanequityinvestmentorotherreasons
Ifthecompanylosescontroloverthesubsidiaryduetothedisposalofequityinvestmentorotherreasons,thebookvalueofthelong-termequityinvestmentcorrespondingtothesoldequityshallbecarriedforward,andthedifferencebetweenthesalepriceandthebookvalueofthedisposallong-termequityinvestmentshallberecognizedasinvestmentincome(loss);Meanwhile,theremainingequityshallberecognizedaslong-termequityinvestmentorotherrelevantfinancialassetsaccordingtoitsbookvalue.Iftheremainingequityafterdisposalisabletoexertjointcontrolorsignificantinfluenceonthesubsidiary,accountingtreatmentshallbeconductedaccordingtotherelevantprovisionsoftheconversionfromcostmethodtoequitymethod.
17.5Methodsofimpairmentassessmentanddeterminingtheprovisionforimpairmentloss
Forthelongterminvestmentinsubsidiaries,jointventureandassociates,TheCompanyreviewsthelong-termequityinvestmentsateachbalancesheetdatetodeterminewhetherthereisanyindicationthattheyhavesufferedanimpairmentloss.Ifanimpairmentindicationexists,therecoverableamountisestimated.Ifsuchrecoverableamountislessthanitscarryingamount,aprovisionforimpairmentlossesinrespectofthedeficitisrecognizedinprofitorlossfortheperiod.
19.Investmentproperty
19.1TheCompany’sinvestmentpropertiesincludealanduserightthatisleasedout;alanduserightheldfortransferuponcapitalappreciation;andabuildingthatisleasedout.
19.2TheCompanyusesthecostmodelforsubsequentmeasurementofinvestmentproperty,andadoptsadepreciationoramortizationpolicyfortheinvestmentproperty,whichisconsistentwiththatforfixedassetsorintangibleassets.TheCompanyreviewstheinvestmentpropertiesateachbalancesheetdatetodeterminewhetherthereisanyindicationthattheyhavesufferedanimpairmentloss.Ifthereisanyindicationthatsuchassetsmaybeimpaired,therecoverableamountsareestimatedforsuchassets.IftherecoverableamountofanassetoranassetCompanyislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorlossfortheperiod.
20.Fixedasset
20.1Recognition,measurementanddepreciationcriteriaforfixedassets
Fixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.
Fixedassetsareinitiallymeasuredatacquisitioncost,anddepreciatedoveritsusefullifeusingthestraight-linemethodsincethemonthsubsequenttotheoneinwhichitisreadyforintendeduse.
20.2Deprecationmethodsforeachcategoryoffixedassets
Category
| Category | Deprecationmethods | Depreciationperiod(years) | Residualvaluerate(%) | Annualdepreciationrate(%) |
| Housesandbuildings | Straight-linedepreciationmethod | 20-40 | 5 | 2.38-4.75 |
| Decorationoffixedassets | Straight-linedepreciationmethod | 4-10 | -- | 10.00-25.00 |
| Transportationequipment | Straight-linedepreciationmethod | 4 | 5 | 23.75 |
| Electronicequipment | Straight-linedepreciationmethod | 3-5 | 5 | 19.00-31.67 |
| Officeequipment | Straight-linedepreciationmethod | 3-5 | 5 | 19.00-31.67 |
20.3Impairmentmethodoffixedassets,impairmentpreparationprovisionmethodThedateofbalancesheet,someindicationsstateclearlythatthefixedassetsconductimpairment,accordingtothedifferencebetweenthebookvalueandrecoverableamountprovisionthecorrespondingimpairmentloss.
21.Constructioninprogress
21.1Constructioninprogressshouldbetransferredintofixedassetsatitsactualcostsafterithasreachedtheworkingconditionforitsintendeduse.Constructioninprogressthathasreachedtheworkingconditionbutnotcompleted,shallbetransferredatitsestimatedcosts.Theestimatedcostofconstructioninprogressshouldbeadjustedagainsttheactualcostsaftercompletionofsettlement,whilethedepreciationalreadyprovidedwillnotbeadjusted.
21.2TheCompanyassessesateachbalancesheetdatewhetherthereisanyindicationthatconstructioninprogressmaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.
22.Borrowingcost
22.1Recognitioncriteriaofcapitalization
Borrowingcostsarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.
22.2Periodofcapitalization
（1）Borrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.
（2）Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetissuspendedabnormallyandwhenthesuspensionisforacontinuousperiodofmorethan3months.Capitalizationissuspendeduntiltheacquisition,constructionorproductionofthe
assetisresumed.
（3）Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale，theborrowingcostsstopcapitalization.
22.3Capitalizationamountofborrowingcosts
Wherefundsareborrowedunderaspecific-purposeborrowing,theamountofinteresttobecapitalizedistheactualinterestexpenseincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowings,theCompanydeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetotheweightedaverageoftheexcessofcumulativeexpendituresontheassetovertheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.
23.Right-of-useassets
Exceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theCompanyrecognizesaright-of-useassets.
TheCompanymeasurestheright-of-useassetsatcost.Thecostoftheright-of-useassetscomprises:
23.1Theamountoftheinitialmeasurementoftheleaseliabilities.
23.2Anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentives.
23.3AnyinitialdirectcostsincurredbytheCompany.
23.4Anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlyingasset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.
Thecompanyrecognizesandmeasuresthecostsmentionedinitem4aboveinaccordancewiththeASBENo.13-Contingencies.
Initialdirectcostsaretheincrementalcostsincurredtoachievethelease.Incrementalcostsarethosecoststhatwouldnothavebeenincurrediftheenterprisehadnotacquiredthelease.
Right-of-useassetsaredepreciatedbytheCompanyinaccordancewiththeASBENo.4FixedAssets.IftheCompanyisreasonablycertain,thattheleasewilltransferownershipoftheunderlyingassettotheCompanybytheendoftheleaseterm,theright-of-useassetsisdepreciatedfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theright-of-useassetsisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetsortheendoftheleaseterm.
TheCompanyappliesASBENo.8ImpairmentofAssets,todeterminewhethertheright-of-useassetsareimpairedandperformaccountingtreatmenttoidentifiedimpairmentloss.
24.Intangibleassets
24.1Intangibleassets,includinglanduserightsetc.arerecognizedatcosts.
24.2Intangibleassetswithfiniteusefullivesareamotizedinaccordancewiththeexpectedrealizationmethodoftheeconomicbenefitsrelatedtotheintangibleassetoveritsestimatedusefullife.Ifitisnotpossibletoreliablydeterminetheexpectedrealizationmethod,usethestraight-linemethod.Thespecificyearsareasfollows:
Item
| Item | Usefullife(Year) |
| Landuserights | 40 |
| Softwareuserights | 5-10 |
| Trademarkrights | 10 |
24.3TheCompanyassessesateachbalancesheetdatewhetherthereisanyindicationthattheintangibleassetswithdefinitelifemaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Iftherecoverableamountofanassetoranassetgroupislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorlossfortheperiod.Foranintangibleassetwithinfiniteusefullife,theCompanyreviewstheusefullifeandamortizationmethodattheendoftheperiod.
24.4Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognizedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognizedinprofitorlossfortheperiod.(1)Itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuseorsale;(2)TheCompanyhastheintentiontocompletetheintangibleassetanduseorsellit;(3)TheCompanycandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomicbenefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;(4)Theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandtheabilitytouseorselltheintangibleasset;and(5)Theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbereliablymeasured.
25.Long-termassetimpairment
Theenterpriseshouldjudgewhetherthereisanyindicationthattheassetmaybeimpairedatthebalancesheetdate.
Thegoodwillandintangibleassetswithanuncertainusefulliferesultingfromabusinesscombinationshouldbetestedforimpairmentannually,regardlessofwhetherthereisanyindicationofimpairment.
Ifthefollowingsignsexist,theassetsmaybeimpaired:
(1)Themarketpriceofassetsfellsharplyinthecurrentperiod,andthedeclinewassignificantlyhigherthantheexpecteddeclineduetothepassageoftimeornormaluse;(2)Significantchangesoftheeconomic,technicalorlegalenvironmentinwhichtheenterpriseoperatesandthemarketinwhichtheassetsarelocatedwilloccurinthecurrentperiodorinthenearfuture,whichwilladverselyaffectthecompany;(3)Themarketinterestrateorothermarketinvestment
returnshaveincreasedduringthecurrentperiod,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.
26.Long-termprepaidexpenses
Long-termprepaidexpensesarerecordedaccordingtotheactualamountincurredandamortizedintheperiodofbenefitorwithintheprescribedperiod.Ifthelong-termdeferredexpenseitemcannotbenefitthesubsequentaccountingperiod,theamortizedvalueoftheitemthathasnotbeenamortizedwillbetransferredintothecurrentprofitandloss.
27.Contractliabilities
Thecompanypresentedascontractassetsorcontractliabilitiesinthestatementoffinancialpositionbasedontherelationshipbetweenperformanceobligationsandcustomerpayments.Thecompany'sobligationtotransfergoodsorprovideservicestocustomersforconsiderationreceivedorreceivablefromcustomersispresentedascontractliabilities.
28.Employee'ssalary
EmployeesalaryistopointtotheallformsofremunerationorcompensationthatCompanyreceiveservicesrenderedbyemployeesorgiveexceptshare-basedpaymentinordertoterminatethelaborrelationship.Employeesalaryincludesshort-termsalary,severancewelfare,dismissalbenefitsandotherlong-termemployeebenefits.ThesalarythatCompanyofferedtotheworkerspouse,children,dependents,thedeceasedemployeesurvivorsandotherbeneficiaries,alsobelongtoemployee’ssalary.
28.1Short-termemployeebenefitsDuringtheaccountingperiodwhentheemployeesprovideservices,thecompanyshallrecognizetheactualshort-termcompensationasliabilitiesandrecorditintothecurrentprofitandlossorthecostofrelatedassets.Amongthem,non-monetarywelfareismeasuredaccordingtofairvalue.
28.2Terminationbenefits
WhentheCompanyterminatestheemploymentrelationshipwithemployeesbeforetheexpirationoftheemploymentcontractsorprovidescompensationasanoffertoencourageemployeestoacceptvoluntaryredundancy,iftheCompanyhasaformalplanforterminationofemploymentrelationshiporhasmadeanofferforvoluntaryredundancywhichwillbeimplementedimmediately,andtheCompanycannotunilaterallywithdrawfromtheterminationplanortheredundancyoffer,aprovisionforthecompensationpayablearisingfromtheterminationofemploymentrelationshipwithemployeesisrecognizedwithacorrespondingchargetotheprofitorlossfortheperiod,andincludeincurrentprofitsorlosses.
28.3Definedcontributionplan
PursuanttotherelevantlawsandregulationsofthePRC,employeesoftheCompanyparticipateinthesocialinsurancesystemestablishedandmanagedbygovernmentorganization.TheCompanymakessocialinsurancecontributions,includingcontributionstobasicpensioninsuranceattheapplicablebenchmarksandratesstipulatedbythegovernmentforthebenefitofitsemployees.Thepensioninsurancecontributionsarerecognizedaspartofthecostofassetsorchargedtoprofitorlossonanaccrualbasis.
29.Leaseliabilities
SubstantialOnthecommencementdateoftheleaseterm,theCompanyrecognizesthepresentvalueoftheunpaidleasepaymentsasleaseliabilities.
Theleaseliabilitiesareinitiallymeasuredatthepresentvalueoftheleasepaymentnotyetpaidonthestartdateoftheleaseterm.
Leasepaymentsincludethefollowingfiveitems:
29.1Fixedpaymentsandin-substancefixedpayments,ifthereisaleaseincentive,deducttheamountrelatedtotheleaseincentive.
29.2Variableleasepaymentsthatdependonanindexorrate,whichisdeterminedatthetimeofinitialmeasurementbasedontheindexorrateatthecommencementdateoftheleaseterm.
29.3Exercisepriceforapurchaseoptionprovidedthatthelesseeisreasonablycertainthattheoptionshallbeexercised.
29.4Paymentsforexercisingtheoptiontoterminatetheleaseprovidedthattheleasetermreflectsthatthelesseeshallexercisetheoptiontoterminatetheleaseoption.
29.5Estimatedpaymentsduebasedonguaranteedresidualvalueprovidedbythelessee.
Whencalculatingthepresentvalueofleasepayments,theCompanyadoptstheinterestrateimplicitintheleaseasthediscountrate;iftheinterestrateimplicitintheleasecannotbedetermined,theCompanyadoptstheincremental
borrowingrateasthediscountrate.
30.Estimatedliabilities
30.1Thecompanyshallrecognizethisobligationascontingentliabilitywhentheobligationsarisingfromtheprovisionofexternalguarantees,litigationmatters,productqualityguarantees,losscontractsandothercontingenciesbecomethecurrentobligationsassumedbythecompanyandthefulfillmentofsuchobligationsislikelytoresultintheoutflowofeconomicbenefitsfromthecompanyandtheamountofsuchobligationscanbereliablymeasured.
30.2Thecompanyshallinitiallymeasuretheprovisionsaccordingtothebestestimateoftheexpensesrequiredtoperformtherelevantcurrentobligations,andshallreviewthebookvalueoftheestimatedliabilitiesonthebalancesheetdate.
31.Share-basedpayment
31.1Categoriesofshare-basedpayments
Share-basedpaymentscompriseequity-settledandcash-settledpayments.
31.2Determinationoffairvalueofequityinstruments
（1）Ifthereisanactivemarket,itshouldbedeterminedbasedonthequotedpriceintheactivemarket.
（2）Ifthereisnoactivemarket,itisdeterminedbyusingvaluationtechniques,includingconsideringthepricesusedinrecentmarkettransactionsmadebypartiesfamiliarwiththesituationandtakingtransactionsvoluntarily,andconsideringthecurrentfairvaluesandcashflowsofotherfinancialinstrumentsthataresubstantiallythesamediscountmethodandoptionpricingmodel.
31.3Basisfordeterminingthebestestimateofexercisableequityinstruments
TheCompanywouldmakebestestimateinaccordancewiththenewlyacquiredinformationsuchaschangesinthenumberofemployeesentitledtoequityinstruments.
31.4Relevantaccountingtreatmentofimplementation,modificationandterminationofshare-basedpaymentplan
（1）Equity-settledshare-basedpayments
Equity-settledshare-basedpaymentsthatareimmediatelyavailableafterthegrantinexchangeforemployeeservicesareincludedinrelatedcostsorexpensesbasedonthefairvalueoftheequityinstrumentsonthegrantdate,andthecapitalreserveisadjustedaccordingly.Equity-settledshare-basedpaymentsforservicesthathavebeencompletedduringthewaitingperiodorthatareexercisableonlyiftherequiredperformanceconditionsaremetareexchangedforemployeeservices.Ateachreportingdateduringthewaitingperiod,thebestestimateofthenumberofexercisableequityinstrumentsisbasedonthefairvalueoftheequityinstrumentgrantdate,theservicesobtainedinthecurrentperiodareincludedinrelatedcostsorexpenses,andthecapitalreserveisadjustedaccordingly.
Forequity-settledshare-basedpaymentsinexchangeforservicesprovidedbyotherparties,ifthefairvalueofservicesprovidedbyotherpartiescanbereliablymeasured,theyshouldbemeasuredatthefairvalueoftheservicesof
otherpartiesontheacquisitiondate;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(exceptforthosethatarecancelledbecausetheconditionsoftheexercisablerightsarenotmet),thecancellationorsettlementistreatedasanexpeditedexercisablerightandtheoriginalAmountrecognizedduringtheremainingwaitingperiod
32.Income
32.1RecognitionofincomeThecompany'sincomeismainlyeducationandtrainingincome.Thecompanyrecognizestheincomeuponfulfillmentofitsperformanceobligationswithinthecontract,thatis,whentheclientobtainscontroloftherelevantgoods.
32.2Thecompanyclassifiesthenatureoftherelevantperformanceobligationsinaccordancewiththerelevantprovisionsoftheincomestandardstobe"performanceobligationsperformedwithinaspecifiedperiod"or"performanceobligationsperformedataspecifiedtimepoint",andincomerecognitioniscarriedoutinaccordancewiththefollowingprinciples.
（1）Theperformanceobligationsaretobeperfomedwithinaspecifiedperiodoncethecompanymeetsoneofthefollowingconditions:
①Theclientobtainsandconsumestheeconomicbenefitswhilethecompanyisfulfillingtheperformanceobligations;
②Theclientcancontrolassetsunderconstructionwhilethecompanyisstillintheprocessoffulfillingtheperformanceobligations.
③Theassetgeneratedwhilethecompanyisintheprocessofperformingthecontractareindispensable,andthecompanyhastherighttocollectpartialpaymentsforthecumulativeperformanceobligationsthathavebeenfulfilledsofarwhthinthecontractperiod.
Iftheperformanceobligationsareperformedwithinthespecifiedperiod,thecompanywillrecognizetheincomewithinthisperiodinaccordancewiththeprogressofthecontract’sperformance,however,excepttheperformanceprogresscannotbereasonablydetermined.Thecompanyconsidersthenatureofthegoodsandadoptstheoutputmethodorinputmethodtodeterminetheappropriateperformanceprogress.
（2）Iftheperformanceobligationsareperformedatthespecifiedtimepoint,thecompanywillrecognizetheincomeatthetimewhentheclientobtainscontrolovertherelevantgoods.
Injudgingwhethertheclienthasobtainedcontrolovergoodsorservices,thecompanyshallconsiderthefollowingsigns:
①Thecompanyhasthecurrentrighttocollectpaymentforthegoods,thatis,thecustomerhasthecurrentobligationstopayforthegoods.
②Thecompanyhastransferredlegalownershipofthegoodstothecustomer,thatis,thecustomeralreadyhasthelegalownershipofthegoods.
③Thecompanyhastransferredphysicalpossessionofthegoodstothecustomer,thatis,thecustomerhastakenphysicalpossessionofthegoods.
④Thecompanyhastransferredthemainrisksandrewardsoftheownershipofthegoodstothecustomer,thatis,thecustomerhasobtainedthemainrisksandrewardsoftheownershipofthegoods.
⑤Thecustomerhasacceptedthegoods.
⑥Othersignsthatthecustomerhasobtainedcontroloftheproduct.
Thespecificpolicyofthecompany'sincomerecognition:
Thecompany'sincomemainlyincludesordinaryclassincomeandagreementclassincome.Theincomefrom
face-to-facetrainingofordinaryclassesisrecognizedasincomeforallpre-collectedtrainingfeesuponcompletionoftrainingservices;incomefromonlinetrainingofordinaryclassesisrecognizedonastraight-linebasisduringtheeffectiveperiodofserviceprovision.Thenon-refundableportionoftheincomefromtheagreementclassisrecognizedasrevenuewhenthetrainingserviceiscompleted;therefundableportionisrecognizedasrevenuewhenthenon-refundableconditionsaremetaccordingtotheagreement.
32.3MeasurementofincomeThecompanyshallmeasurerevenuebasedonthetransactionpriceallocatedtoeachindividualperformanceobligation.Whendeterminingthetransactionprice,thecompanyconsiderstheinfluenceoffactorssuchasvariableconsideration,majorfinancingcomponentsinthecontract,non-cashconsideration,andconsiderationpayabletocustomers.
（1）VariableconsiderationThecompanydeterminesthebestestimateofthevariableconsiderationbasedontheexpectedvalueorthemostlikelyamount,butthetransactionpriceincludingthevariableconsiderationshouldnotexceedtheamountoftheaccumulatedrecognizedrevenuethatitisverylikelythatasignificantreversalnotoccurwhentherelevantuncertaintyiseliminated.Whenanenterpriseassesseswhetheritisverylikelythatasignificantreversalofaccumulatedrecognizedrevenuewillnotoccur,itshouldalsoconsiderthepossibilityofreversalofrevenueanditsproportion.
（2）MajorfinancingcomponentsWhenthereisasignificantfinancingcomponentinthecontract,thecompanyshalldeterminethetransactionpricebasedontheamountpayableincashwhenthecustomerisassumedtoobtaincontrolofthegoods.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedusingtheeffectiveinterestmethodduringthecontractperiod.
（3）Non-cashconsiderationIfthecustomerpaysanon-cashconsideration,thecompanyshalldeterminethetransactionpricebasedonthefairvalueofthenon-cashconsideration.Ifthefairvalueofthenon-cashconsiderationcannotbereasonablyestimated,thecompanydeterminesthetransactionpriceindirectlybyreferringtothestand-alonesellingpriceofthegoodsitpromisestotransfertothecustomer.
（4）ConsiderationpayabletocustomersFortheconsiderationpayabletothecustomer,theconsiderationpayableshallbeoffsetbythetransactionprice,andthecurrentincomeisoffsetatthelaterpointwhentherelevantincomeisrecognizedandthecustomer'sconsiderationispaid,exceptwhenthecustomer'sconsiderationispayabletoobtainotherclearlydistinguishableproductsfromthecustomer.
Iftheenterprisepaysthecustomerconsiderationtoobtainotherclearlydistinguishablegoodsfromthecustomer,itshallconfirmthepurchasedgoodsinamannerconsistentwithotherpurchasesbytheenterprise.Iftheconsiderationpayablebytheenterprisetothecustomerexceedsthefairvalueoftheclearlydistinguishablecommodityobtainedfromthe
customer,theexceedingamountshallbeoffsetagainstthetransactionprice.Ifthefairvalueoftheclearlydistinguishablegoodsobtainedfromthecustomercannotbereasonablyestimated,theenterpriseshalloffsettheconsiderationpayabletothecustomerinfullfromthetransactionprice.
33.ContractcostContractcostsaredividedintocontractperformancecostsandcontractacquisitioncosts.Ifthecostincurredbythecompanytofulfillthecontractmeetsthefollowingconditionsatthesametime,itshallberecognizedasanassetasthecontractperformancecost:
（1）Thecostisdirectlyrelatedtoacurrentorexpectedcontract,includingdirectlabor,directmaterials,manufacturingexpenses(orsimilarexpenses),clearlythecostbornebythecustomer,andothercostsincurredonlyduetothecontract;
（2）Thiscostincreasesthecompany'sfutureresourcesforfulfillingitsperformanceobligations;
（3）Thecostisexpectedtoberecovered.
Theincrementalcostincurredbythecompanytoobtainthecontractisexpectedtoberecovered,andrecognizedasanassetasthecontractacquisitioncost;however,iftheassetamortizationdoesnotexceedoneyear,itcanbeincludedinthecurrentprofitandlosswhenitoccurs.
Assetsrelatedtocontractcostsareamortizedonthesamebasisastherecognitionoftherevenueofgoodsorservicesrelatedtotheasset.
Ifthebookvalueofassetsrelatedtocontractcostsishigherthanthedifferencebetweenthefollowingtwoitems,thecompanywillmakeprovisionforimpairmentoftheexcesspartandrecognizeitasanassetimpairmentloss:
（1）Theremainingconsiderationexpectedtobeobtainedduetothetransferofgoodsorservicesrelatedtotheasset;
（2）Estimatethecoststhatwillbeincurredforthetransferoftherelatedgoodsorservices.
Iftheaforementionedassetimpairmentprovisionissubsequentlyreversed,thebookvalueoftheassetafterthereversalshallnotexceedthebookvalueoftheassetonthedateofreversalundertheassumptionthatnoimpairmentprovisionismade.
34.Governmentsubsidy
34.1Governmentgrantsincludeassetrelatedgovernmentgrantsandincomerelatedgovernmentgrants.
34.2Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofanon-monetaryasset,itismeasuredatfairvalue.Ifthefairvaluecannotbereliablydetermined,itismeasuredatanominalamount.
34.3Thegovernmentgrantadoptsthetotalmethod
（1）Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andamortizedtoprofitorlossonareasonableandsystematicbasisovertheusefullifeoftherelatedasset.Iftherelevantassetsaresold,transferred,
scrappedordamagedbeforetheendoftheirusefullives,theundistributedbalanceofrelateddeferredincomewillbetransferredtotheprofitorlossoftheassetdisposalinthecurrentperiod.
（2）Ifagovernmentgrantrelatedtoincomeisusedtocompensatefortherelatedexpensesorlossesinthesubsequentperiod,itshallberecognizedasdeferredincomeandshallberecordedinthecurrentprofitorlossinwhichtherelevantexpensesarerecognized;Forthecompensationofrelatedexpensesorlossesthathaveoccurred,theyshallbedirectlyincludedinthecurrentprofitsandlosses.
Forgovernmentgrantsthatincludeboththeasset-relatedportionandtheincome-relatedportion,thedifferentpartsareseparatelyaccountedfor;ifitisindistinguishable,theoverallclassificationisrevenue-relatedgovernmentsubsidies.
34.4Governmentgrantsrelatedtothecompany'sdailyactivitiesinaccordancewiththenatureoftheeconomicbusinessareincludedinotherincomeorwrittendowntherelatedcosts;governmentgrantsthatareunrelatedtothedailyactivitiesofthecompanyshallbeincludedinnon-operatingincomeandexpenditure.
35.Deferredincometaxassetsandthedeferredincometaxliabilities
35.1Accordingtothebookvalueoftheassets,liabilitiesanditstaxbasethedifferencebetweenthe(notconfirmedprojectasassetsandliabilitiesofitstaxbasecanbedeterminedinaccordancewiththeprovisionsofthetaxlaw,thetaxbaseandthedifferencebetweenthebooknumber),accordingtotheforecastoftheassetisrecoveredortheapplicabletaxratecalculationduringthedebtconfirmeddeferredincometaxassetsanddeferredincometaxliabilities.
35.2Confirmthedeferredincometaxassetstoprobablygetusedtomakingthedeductibletemporarydifferencesarelimitedtotheamountoftaxableincome.Duringthebalancesheetdate,thereisstrongevidencethatthefutureislikelytoobtainsufficienttaxableincometooffsetthedeductibletemporarydifference,confirmtheunconfirmeddeferredincometaxassetsinpreviousaccountingperiods.
35.3Onthebalancesheetdate,reviewthebookvalueofthedeferredincometaxassets,andifduringtheperiodofthefuturemaynotbeabletoobtainsufficienttaxableincometooffsetthebenefitofthedeferredincometaxassets,thewrite-downsonthebookvalueofthedeferredincometaxassets.Ifitislikelytoobtainsufficienttaxableincome,returntheamountofwrite-downs.
35.4TheCompany'scurrentincometaxanddeferredincometaxasrecordedintotheprofitsandlossesofthecurrentincometaxexpenses,orearnings,butdoesnotincludetheincometaxinthefollowingcircumstances:(1)Thebusinesscombination;(2)Directconfirmationoftransactionsoreventsintheowner'sequity.
36.Lease
36.1Lessee
WhentheCompanyisthelessee,onthecommencementdateoftheleaseperiod,exceptforshort-termleasesandlow-valueassetleasesthatareselectedforsimplifiedtreatment,theright-of-useassetsandleaseliabilitiesarerecognizedforleases.
Afterthecommencementdateoftheleaseperiod,theCompanyadoptsthecostmodelforsubsequentmeasurement
oftheright-of-useasset.Withreferencetotherelevantdepreciationprovisionsof"ASBENo.4-FixedAssets",depreciationisprovidedforright-of-useassets.Ifthelesseecanreasonablydeterminethatitwillobtaintheownershipoftheleasedassetattheexpirationoftheleaseterm,itshallaccruedepreciationovertheremainingusefullifeoftheleasedasset.Ifitcannotbereasonablydeterminedthattheownershipoftheleasedassetcanbeobtainedattheexpirationoftheleaseterm,depreciationshallbeaccruedintheshorterperiodbetweentheleasetermandtheremainingusefullifeoftheleasedasset.TheCompanydetermineswhethertheright-of-useassetisimpairedinaccordancewiththe"ASBENo.8-ImpairmentofAssets",andperformsaccountingtreatmentontheidentifiedimpairmentlosses.Thecompanycalculatestheinterestexpenseoftheleaseliabilityduringtheleasetermatafixedinterestrateandincludesitinthecurrentprofitandloss.Accordingtothe"ASBENo.17-BorrowingExpenses"andotherstandardsthatshouldbeincludedinthecostofrelevantassets,suchprovisionsshallapply.
36.2Lessor
（1）Financelease
Asthelessor,onthecommencementdateoftheleaseterm,theCompanyrecognizesthefinanceleasereceivablesforthefinancelease,derecognizesthefinanceleaseassets,andcalculatesandrecognizestheinterestincomeineachperiodoftheleasetermaccordingtothefixedperiodicinterestrate.
（2）OperatingleaseAsthelessor,theCompanyshall,ineachperiodoftheleaseterm,adoptthestraight-linemethodorothersystematicandreasonablemethodtorecognizetheleasereceiptsfromoperatingleasesasrentalincome.Capitalizetheinitialdirectexpensesrelatedtooperatingleases,amortizethemonthesamebasisasrentalincomerecognitionduringtheleaseterm,andincludetheminthecurrentprofitandlossbyinstallments.
Forthefixedassetsintheoperatingleaseassets,thecompanyshalladoptthedepreciationpolicyforsimilarassetstoaccruedepreciation;forotheroperatingleaseassets,itshalluseasystematicandreasonablemethodforamortizationaccordingtotheenterpriseaccountingstandardsapplicabletotheassets.Inaccordancewiththeprovisionsof"ASBENo.8-ImpairmentofAssets",thecompanydetermineswhethertheoperatingleaseassetsareimpairedandperformscorrespondingaccountingtreatment.
SectionIV.Taxation
1.Majorcategoriesoftaxesandtaxrates
Categoryoftax
| Categoryoftax | Basisoftaxcomputation | Taxrate |
| Value-addedtax | Taxablerevenueforsalesofgoodsandsupplyofservices | 3%、5%、6% |
| Citymaintenanceandconstructiontax | CirculationTaxespayable | 5%、7% |
Categoryoftax
| Categoryoftax | Basisoftaxcomputation | Taxrate |
| Corporateincometax | Taxableincome | 15%、20%、25% |
| Educationsurcharge | CirculationTaxespayable | 3% |
| Localeducationsurcharge | CirculationTaxespayable | 2% |
1.1Value-addedtaxAccordingtothe"NoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonComprehensivelyLaunchingthePilotProjectofChangingBusinessTaxtoValue-addedTax"(CaiShui[2016]No.36)andthe"MinistryofFinanceandStateAdministrationofTaxationonClarifyingtheReinsurance,NoticeoftheRealEstateLeasingandNon-CertificateEducationPolicy(CaiShui[2016]No.68)relatedprovisions,thecompany'ssubsidiariesandaffiliates'incomefromnon-degreeeducationservicesaresubjecttoVATat3%and6%taxrates.
Thecompanyanditssubsidiariesoperateleasedbuildingsandbuildingsinaccordancewiththerelevantprovisionsofthe“StatementoftheStateAdministrationofTaxationonIssuingtheInterimMeasuresfortheAdministrationofValue-addedTaxLevyofRealEstateOperatingLeasingServicesProvidedbyTaxpayers”(StateAdministrationofTaxationAnnouncement2016No.16)YoucanchoosetoapplythesimpletaxcalculationmethodandcalculatetheamountofVATpayableaccordingtothe5%levyrate.
1.2Corporateincometax
（1）Thecompany'ssubsidiary,ZhonggongLimitedIncomeTax,ispaidinadvancebyeachbranchattheplaceofregistration,andtheheadofficeissettledandpaid.
（2）Thecompanyhasdifferenttaxpayerswithdifferentcorporateincometaxrates,asdetailedbelow：
| Nameofthecompany | Taxrate |
| 1.TheCompany | 25% |
| 2.OffcnLtd. | 15% |
| 3.WuhuYaweiAutomobileSalesServiceCo.,Ltd | 20% |
| 4.NingguoYaxiaMotorVehicleDriverTrainingSchool(Co.,Ltd.) | 20% |
| 5.HuangshanYaxiaFudiAutomobileSalesServicesCo.,Ltd. | 20% |
| 6.ChaohuYaxiaKaixuanAutomobileSalesServiceCo.,Ltd. | 20% |
| 7.BozhouYaxiaMotorVehicleDriverTrainingSchoolCo.,Ltd. | 20% |
| 8.SuzhouBokaiAutomobileSalesServiceCo.,Ltd. | 20% |
| 9.ShaanxiOffcnEducationTechnologyCo.Ltd. | 25% |
| 10.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | 25% |
| 11.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | 25% |
Nameofthecompany
| Nameofthecompany | Taxrate |
| 12.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | 25% |
| 13.ZhejiangOffcnEducationTechnologyCo.Ltd.. | 20% |
| 14.TaizhouOffcnFutureEnterpriseManagementConsultingCo.,Ltd. | 20% |
| 15.WenlingOffcnInformationConsultingCo.,Ltd | 20% |
| 16.BeijingOffcnXinzhiyuOnlineTechnologyCo.,Ltd. | 20% |
| 17.HulunBuirHailarOffcnEducationInformationConsultingCo.,Ltd.. | 20% |
| 18.XilinhotOffcnFutureEducationConsultingCo.,Ltd | 20% |
| 19.YueqingLechengOffcnTrainingCenterCo.,Ltd.. | 20% |
| 20.JiaozuoOffcnFutureEducationServiceCo.,Ltd | 20% |
| 21.XinzhengOffcnCulturalCommunicationCo.,Ltd.. | 20% |
| 22.ChongqingJiangbeiOffcnVocationalExaminationTrainingCo.,Ltd. | 20% |
| 23.NanningOffcnFutureEducationConsultingCo.,Ltd. | 20% |
| 24.BaiyinOffcnFutureEducationConsultingCo.,Ltd. | 20% |
| 25.BeijingXindeZhiyuanEnterpriseManagementConsultingCo.,Ltd.. | 20% |
| 26.NanjingHuiyueHotelManagementCo.,Ltd. | 20% |
| 27.ShandongKunzhongRealEstateCo.,Ltd. | 20% |
| 28.SanmenxiaOffcnCulturalCommunicationCo.,Ltd. | 20% |
| 29.LiaoningOffcnAcademic&CulturalExchangeCo.,Ltd. | 20% |
| 30.LiaoningOffcnEducationTechnologyCo.,Ltd. | 25% |
| 31.ShandongOffcnEducationTechnologyCo.,Ltd. | 25% |
| 32.JilinChangyiOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 33.YuxiOffcnTrainingSchoolCo.,Ltd. | 20% |
| 34.TonghuaOffcnTrainingSchoolCo.,Ltd. | 15% |
| 35.HunanLightsaltOffcnEducationTechnologyCo.,Ltd.. | 20% |
| 36.TianjinHexiOffcnTrainingSchoolCo.,Ltd. | 20% |
| 37.ChengduOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 38.ShandongZhuodaBusinessManagementCo.,Ltd. | 20% |
| 39.LiaoningZhongchengRealEstateDevelopmentCo.,Ltd. | 20% |
| 40.WuhuOffcnTrainingSchoolCo.Ltd. | 20% |
| 41.WuhanGuoshangHumanResourceServiceCo.,Ltd. | 25% |
Nameofthecompany
| Nameofthecompany | Taxrate |
| 42.JinanZhangqiuOffcnTrainingSchoolCo.,Ltd. | 20% |
| 43.MengziOffcnEducationTrainingCo.Ltd.. | 20% |
| 44.BeijingOffcnTechnologyDevelopmentCo.Ltd.. | 20% |
| 45.ShanghaiOffcnEducationTechnologyCo.Ltd. | 20% |
| 46.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | 20% |
| 47.PingshanOffcnEducationTechnologyCo.Ltd. | 20% |
| 48.ShandongOffcnEducationTrainingSchoolCo.Ltd. | 20% |
| 49.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | 20% |
| 50.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 51.DiqingOffcnTrainingSchoolCo.,Ltd. | 20% |
| 52.DaliOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 53.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 54.NujiangOffcnTrainingSchoolCo.,Ltd. | 20% |
| 55.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | 20% |
| 56.BeijingOffcnCenturyEducationTechnologyCo.,Ltd | 25% |
2.Policiesandbasisoftheimportanttaxincentives
2.1Value-addedtax
（1）Accordingtothe"AnnouncementoftheMinistryofFinanceandtheStateAdministrationofTaxationonClarifyingtheVATExemptionPolicyforSmall-scaleVATTaxpayers"(CaiShui[2021]No.11),inordertofurthersupportthedevelopmentofsmallandmicroenterprises,from1April2021to31December2022,small-scalevalue-addedtaxpayerswithmonthlysalesoflessthanRMB150,000(includingtheprincipal)areexemptfromvalue-addedtax.Thecompany'ssubsidiariesandsubsidiariesthatmeettheexemptionconditionsareexemptfromVAT.
（2）AccordingtotheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationontheRelevantPoliciesonDeductionofValueAddedTaxforSpecialEquipmentandTechnicalMaintenanceCostsofValueAddedTaxControlSystem(CaiShui[2012]No.15),theVATtaxpayersin2011forthefirstpurchaseofspecialequipmentfortheVATtaxcontrolsystem(includingseparateticketmachines)afterDecember1(includingthesamebelow),theVATinvoiceobtainedfromthepurchaseofspecialequipmentfortheVATtaxcontrolsystemcanbeusedforthefullamountoftheVATpayableisdeducted(thedeductionisthetotalamountofpriceandtax),andthedeductionthatisinsufficientcanbecarriedforwardtothenextperiodtocontinuethededuction.TheVATtaxpayer'stechnicalmaintenancefeepaidafter1December2011(excludingthetechnicalmaintenancefeepaidbefore30November2011)canbeaddedtothevalueofthetechnicalmaintenancefeeinvoiceissuedbythetechnicalmaintenanceserviceunit.Thefullamountofthetaxpayableisdeductible,andthosethatareinsufficientfordeductioncanbecarriedforwardtothenextperiodtocontinuethededuction.The
companyandthequalifiedsubsidiariesandsubsidiariesshoulddeducttheVATpayableamountinfullaccordingtotheregulations.
（3）Inaccordancewiththe"AnnouncementonSupportingTaxPoliciesforthePreventionandControlofPneumoniaEpidemicCausedbytheNovelCoronavirusInfection"(AnnouncementNo.8of2020bytheMinistryofFinanceandtheStateAdministrationofTaxation),incomefromprovidingwithpublictransportationservices,dailylifeservices,anddeliveringservicesforresidentswithessentiallivingmaterialsbythetaxpayerisexemptfromvalue-addedtax.Thespecificscopeofpublictransportationservicesshallbeimplementedinaccordancewiththe"RegulationsonIssuesRelatedtothePilotProgramofChangingSalesTaxtoValue-AddedTax"(PublishedandissuedbyCaishui[2016]No.36).Thespecificscopeoflifeservicesandexpressdeliveryservicesshallbeimplementedinaccordancewiththe"SalesServices,IntangibleAssets,andRealEstateNotes"(issuedbyCaishui[2016]No.36).Thecompany’squalifiedsubordinatebranchesandsubsidiariesthatmeettheexemptionconditionsareexemptfromthevalue-addedtax.
（4）Accordingtothe"AnnouncementonDeepeningtheRelevantPoliciesofValue-AddedTaxReform"(AnnouncementNo.39,2019oftheStateAdministrationofTaxation,MinistryofFinance),fromApril1,2019toDecember31,2021,productionandlivingareallowedTaxpayersintheproductionandlivingserviceindustryadd10%tothedeductibleinputtaxforthecurrentperiodtodeductthetaxpayable.Thecompany’squalifiedsubordinatebranchesandsubsidiarieswilladditionallydeductthevalue-addedtaxpayableaccordingtothispreferentialpolicy.
2.2Educationsurcharge,localeducationsurcharge
AccordingtotheNoticeoftheMinistryofFinanceandtheStateAdministrationofTaxationonExpandingtheExemptionScopeofGovernmentFunds(CaiShui[2016]No.12),startingfrom1February2016,additionaleducationfeeswillbeexempted,ThescopeofthelocaleducationsupplementandwaterconservancyconstructionfundshouldbeexpandedbythecurrentobligeeswhopaymonthlytaxesormonthlysalesorturnoverofnotmorethanRMB30,000(quarterlytaxationofquarterlysalesorturnoverofnotmorethanRMB90,000).TotheobligorwhopaysthemonthlysalesorturnoverofnotmorethanRMB100,000(thequarterlysalesorturnoverofthequarterlytaxdoesnotexceedRMB300,000).Subsidiariesandsubsidiariesofthecompanythatmeettheconditionsforexemptionareexemptedfromeducationsurchargeandlocaleducationsurcharge.
2.3Corporateincometax
（1）OnOctober21,2020,ZhonggongCo.,Ltd.passedthehigh-techenterprisecertificationorganizedbytheBeijingStateTaxationBureau,BeijingLocalTaxationBureau,BeijingFinanceBureau,andBeijingScienceandTechnologyCommission,andobtainedthehigh-techenterprisecertificatenumberedGR202011002730.ThecertificateisvalidfromOctober21,2020toOctober20,2023.ZhongGongCo.,Ltd.anditssubordinatebranchcalculatedandpaidcorporateincometaxatataxrateof15%.
（2）OnSeptember28,2021,TonghuaZhonggongTrainingSchoolCo.,Ltd.,asubsidiaryofthecompany,wasrecognizedbytheJilinProvincialTaxationBureauoftheStateAdministrationofTaxation,theJilinProvincialDepartmentofFinance,andtheJilinProvincialDepartmentofScienceandTechnology,andobtainedthehigh-techenterprisecertificateNo.GR202122000472.Thecertificateisvalid.FromSeptember28,2021toSeptember27,2024,TonghuaZhonggong
TrainingSchoolCo.,Ltd.calculatesandpayscorporateincometaxatarateof15%.
（3）AccordingtotheAnnouncementoftheStateAdministrationofTaxationonMattersConcerningtheImplementationofIncomeTaxPreferentialPoliciesSupportingtheDevelopmentofSmallandLow-profitEnterprisesandIndividualIndustrialandCommercialHouseholds(StateAdministrationofTaxationAnnouncementNo.8[2021]),fromJanuary1,2021toDecember2022OnMarch31,theannualtaxableincomeofsmallandlow-profitenterprisesdoesnotexceed1millionyuan,whichwillbeincludedinthetaxableincomeatareducedrateof12.5%,andtheenterpriseincometaxwillbepaidatthetaxrateof20%.QualifiedsubsidiariesoftheCompanyapplythispolicytocalculateandpaycorporateincometax.
（4）Accordingtothe"NoticeonClearlyEnjoyingtheScopeofSmallandLow-ProfitEnterprisesthatAreExemptedfromtheLocalShareofCoporateIncomeTaxofthe"NoticeofthePeople’sGovernmentoftheInnerMongoliaAutonomousRegionPartyCommitteeandAutonomousRegion"(StateAdministrationofTaxationAnnouncementNo.8[2021])Forsmallandlow-profitenterpriseswithataxableincomeofnomorethan1millionyuan,inaccordancewiththe"AnnouncementoftheStateAdministrationofTaxationonMattersConcerningtheImplementationofIncomeTaxPreferentialPoliciesSupportingtheDevelopmentofSmallandLow-profitEnterprisesandIndividualIndustrialandCommercialHouseholds"(Caishui[2019]No.13),theannualtaxableincomeisreducedby12.5%.Aftercalculatingthecorporateincometaxatataxrateof20%,thetaxableincomeisexemptedfromthelocalshareofcorporateincometax(ie40%)inaccordancewiththe"NoticeissuedbythePeople’sGovernmentoftheInnerMongoliaAutonomousRegionPartyCommitteeandAutonomousRegion"(NeiDangfa[2018]No.23)section).Thecompany'squalifiedsubsidiariesshallapplythispolicytocalculateandpaycorporateincometax.SectionV.ChangesInAccountingPoliciesAndAccoutingEstimates,And
CorrectionsofAccountingErrors
1.ChangesinAccountingPolicies
1.1Thecompany'seighteenthmeetingofthefifthboardofdirectorsheldonApril28,2021approvedtheadoptionoftherelevantprovisionsofthe"ASBENo.21-Leasing"(CaiKuai[2018]No.35)fromJanuary1,2021.Itisstipulatedthattheamountofright-of-useassets,leaseliabilities,retainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsshouldbeadjustedaccordingtothecumulativeimpact,andnoadjustmentwillbemadetotheinformationofcomparableperiods.Theimpactofaccountingpolicyseenote.V.4andV.5.
Accordingtotheprovisionsofthenewleasestandards,thecompanychoosesnottore-evaluatewhetheracontractisaleaseorcontainsaleaseforacontractthatexistedbeforethedateofinitialapplication.
（1）Thecompanyasthelessee
TheCompanyhaselectedtoadjustonlythecumulativeimpactofleasecontractsthathavenotbeencompletedasofJanuary1,2021.Thecumulativeeffectamountofthefirstexecutionadjuststheamountofretainedearningsandotherrelateditemsinthefinancialstatementsatthebeginningofthecurrentperiodofthefirstexecution(i.e.January1,2021),andnoadjustmentismadetothecomparableperiodinformation.
Underthenewleasestandards,theCompanynolongerdistinguishesbetweenfinanceleasesandoperatingleases.
TheCompanyrecognizesright-of-useassetsandleaseliabilitiesforallleases(exceptshort-termleasesandleasesoflow-valueassetsforwhichthesimplifiedtreatmentmethodisselected).Foroperatingleasespriortothedateofinitialapplication,theCompanymeasurestheleaseliabilitybasedonthepresentvalueoftheremainingleasepaymentsdiscountedattheincrementalborrowingrateonthedateofinitialapplication,whileeachleaseisbasedonanamountequaltotheleaseliabilityandbasedonprepaidrentMakethenecessaryadjustmentstodeterminetheright-of-useasset.TheCompanyconductsimpairmenttestonright-of-useassetsandperformscorrespondingaccountingtreatmentinaccordancewithrelevantregulationsonassetimpairment.TheCompanyhasadoptedthefollowingsimplifiedtreatmentforoperatingleasespriortothedateofinitialexecution:
1）Whenmeasuringleaseliabilities,thesamediscountratemaybeusedforleaseswithsimilarcharacteristics;themeasurementofright-of-useassetsmaynotincludeinitialdirectcosts;2）Ifthereisanoptiontorenewtheleaseortoterminatethelease,thecompanywilldeterminetheleasetermaccordingtotheactualexerciseoftheoptionbeforethefirstexecutiondateandotherlatestinformation;3）Asanalternativetotheright-of-useassetimpairmenttest,theCompanyassesseswhetheracontractcontainingaleaseisonerousbeforethedateofinitialapplication,andadjuststheright-of-useassetbasedontheamountofthelossprovisionincludedinthebalancesheetbeforethedateofinitialapplication;
4）Noretrospectiveadjustmentwillbemadeforleasechangesbeforethefirstimplementationdate,andaccountingtreatmentwillbecarriedoutinaccordancewiththenewleasestandardsaccordingtothefinalarrangementsforleasechanges.
（2）Thecompanyasthelessor
TheCompanydoesnotneedanytransitionaladjustmentfortheleaseasthelessor,andwillcarryoutaccountingtreatmentinaccordancewiththenewleasestandardsfromthedateofinitialimplementation.
1.2TheCompanyhasadoptedtherelevantprovisionsoftheInterpretationNo.14ofASBE(CaiKuai[2021]No.1)fromJanuary1,2021.Adjusttheamountofretainedearningsatthebeginningoftheperiodandotherrelateditemsinthefinancialstatementsaccordingtothecumulativeimpact,anddonotadjusttheinformationforcomparableperiods.ChangesinaccountingpolicieshavenoimpactontheCompany.
1.3FromJanuary1,2021,thecompanyadoptstherelevantprovisionsof"RelatedPresentationofCentralizedFundManagement"in"AccountingStandardsforBusinessInterpretationNo.15"(CaiKuai[2021]No.35).Forthefinancialstatementsoftheenterprisethathavenotbeenpresentedinaccordancewiththeaboveprovisionsbeforetherelease,thefinancialstatementdataofthecomparableperiodshallbeadjustedaccordinglyinaccordancewiththisInterpretation.ChangesinaccountingpolicieshavenoimpactontheCompany.
2.ChangesinAccountingEstimates
None.
3.CorrectionsofAccountingErrorsofPriorPeriod
None.
4.Implementedthenewleasestandardsforthefirsttimeandadjustedtherelevantitemsinthefinancialstatementsatthebeginningoftheyear.
ConsolidatedBalanceSheetUnit：RMB
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| CurrentAssets: | |||
| Cashandcashequivalents | 5,950,395,089.12 | 5,950,395,089.12 | |
| △Settlementreserve | |||
| △Duefrombanksandotherfinancialinstitutions | |||
| Financialassetsheldfortrading | 983,205,858.25 | 983,205,858.25 | |
| DerivativeFinancialassets | |||
| NotesReceivable | |||
| AccountsReceivable | 21,493,637.66 | 21,493,637.66 | |
| Financingreceivables | |||
| Prepayments | 2,204,120.00 | 2,204,120.00 | |
| △Premiumreceivable | |||
| △Reinsurancepremiunreceivable | |||
| △Reservereceivableforreinsurance | |||
| Otherreceivables | 304,318,966.20 | 304,318,966.20 | |
| Inc:interestreceivables | |||
| Dividendsreceivables | |||
| △Financialassetspurchasedunderresaleagreements | |||
| Inventories | |||
| Contractassets | |||
| Availableforsaleassets | |||
| Non-currentassetsduewithinoneyear | 1,985,873,462.75 | 1,985,873,462.75 | |
| Othercurrentassets | 175,179,650.61 | 44,858,022.80 | -130,321,627.81 |
| Totalcurrentassets | 9,422,670,784.59 | 9,292,349,156.78 | -130,321,627.81 |
| Non-currentassets: |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| △LoansAndAdvances | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables | |||
| Long-termequityinvestments | |||
| Otherequityinstruments | 152,800,000.00 | 152,800,000.00 | |
| Othernon-currentfinancialassets | 208,450,315.01 | 208,450,315.01 | |
| Investmentproperties | 668,014,515.82 | 668,014,515.82 | |
| Fixedassets | 1,612,792,592.67 | 1,612,792,592.67 | |
| Constructioninprogress | 214,248,125.04 | 214,248,125.04 | |
| Bearerbiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | 1,491,006,998.14 | 1,491,006,998.14 | |
| Intangibleassets | 426,352,455.75 | 426,352,455.75 | |
| Developmentexpenditure | |||
| Goodwill | 99,867,720.38 | 99,867,720.38 | |
| Long-termprepaidexpenses | 440,955,377.93 | 412,508,666.20 | -28,446,711.73 |
| Deferredtaxassets | 21,606,436.77 | 21,606,436.77 | |
| Othernon-currentassets | 1,151,091,703.31 | 1,151,091,703.31 | |
| TotalNon-currentAssets | 4,996,179,242.68 | 6,458,739,529.09 | 1,462,560,286.41 |
| TotalAssets | 14,418,850,027.27 | 15,751,088,685.87 | 1,332,238,658.60 |
| Currentliabilities: | |||
| Short-termborrowings | 3,976,019,329.22 | 3,976,019,329.22 | |
| △Borrowingsfromcentralbank | |||
| △Placementfrombanksandotherfinancialinstitutions | |||
| Financialliabilitiesheldfortrading | |||
| DerivativeFinancialliabilitiels | |||
| Notespayable | |||
| accountspayable | 211,824,402.86 | 211,824,402.86 |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| Receiptsinadvance | |||
| Contractliabilities | 4,925,428,309.33 | 4,925,428,309.33 | |
| △Financialassetssoldunderrepurchaseagreements | |||
| △Absorbingdepositanddepositininter-bankmarket | |||
| △Customerdepositsfortradinginsecurities | |||
| △Amountsduetoissuerforsecuritiesunderwriting | |||
| Employeebenefitspayable | 637,448,433.99 | 637,448,433.99 | |
| Taxespayable | 131,111,770.78 | 131,111,770.78 | |
| Otherpayable | 9,479,383.03 | 9,479,383.03 | |
| Inc:Interestpayables | |||
| Dividendspayables | |||
| △Feesandcommissionspayable | |||
| △Reinsuranceaccountspayable | |||
| Held-for-saleliabilities | |||
| Non-currentLiabilitiesduewithinOneYear | 699,372,590.26 | 699,372,590.26 | |
| Othercurrentliabilities | 147,765,156.66 | 147,765,156.66 | |
| TotalCurrentLiabilities | 10,039,076,785.87 | 10,738,449,376.13 | 699,372,590.26 |
| Non-currentLiabilities: | |||
| △Depositsforinsurancecontracts | |||
| Long-termborrowings | |||
| Bondspayable | |||
| Inc:preferenceshare | |||
| Perpetualbond | |||
| Leaseliabilities | 632,866,068.34 | 632,866,068.34 | |
| Long-termpayables | |||
| Long-termemployeebenefitspayable | |||
| Provisions |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| DeferredIncome | |||
| Deferredtaxliabilities | 104,677,444.59 | 104,677,444.59 | |
| Othernon-currentliabilities | |||
| TotalNon-currentLiabilities | 104,677,444.59 | 737,543,512.93 | 632,866,068.34 |
| TotalLiabilities | 10,143,754,230.46 | 11,475,992,889.06 | 1,332,238,658.60 |
| Owners'equity: | |||
| Paid-incapital(sharecapital) | 103,807,623.00 | 103,807,623.00 | |
| Otherequityinstrument | |||
| Inc:preferenceshare | |||
| Perpetualbond | |||
| Capitalreserve | 1,225,481,049.50 | 1,225,481,049.50 | |
| Deduct:Treasuryshares | |||
| Othercomprehensiveincome | 30,000,000.00 | 30,000,000.00 | |
| Specialreserve | |||
| Surplusreserve | 45,000,000.00 | 45,000,000.00 | |
| △Generalriskreserve | |||
| Retainedearnings | 2,870,839,120.70 | 2,870,839,120.70 | |
| TotalOwners'EquityAttributableTotheCompany | 4,275,127,793.20 | 4,275,127,793.20 | |
| Minorityinterests | -31,996.39 | -31,996.39 | |
| TotalOwners'Equity | 4,275,095,796.81 | 4,275,095,796.81 | |
| TotalLiabilitiesandOwners'Equity | 14,418,850,027.27 | 15,751,088,685.87 | 1,332,238,658.60 |
Descriptionoftheadjustmentofeachitem:
OnJanuary1,2021,theCompanyadoptedtherelevantprovisionsofASBENo.21-Leases(CaiKuai[2018]No.35).Adjusttheamountofright-of-useassets,leaseliabilities,retainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsaccordingtothecumulativeimpact,anddonotadjusttheinformationforcomparableperiods.ChangesinaccountingpoliciesresultedinthefollowingchangesintheconsolidatedbalancesheetdataonJanuary1,2021:othercurrentassetsdecreasedbyRMB130,321,627.81;right-of-useassetsincreasedbyRMB1,491,006,998.14;long-termdeferredexpensesdecreasedbyRMB28,446,711.73;othernon-currentliabilitiesduewithinoneyearincreasedbyRMB699,372,590.26;leaseliabilitiesincreasedbyRMB632,866,068.34.
Parent’sBalanceSheetUnit：RMB
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| CurrentAssets: | |||
| Cashandcashequivalents | 56,138,356.37 | 56,138,356.37 | |
| △Settlementreserve | |||
| △Duefrombanksandotherfinancialinstitutions | |||
| Financialassetsheldfortrading | 1,630,453.37 | 1,630,453.37 | |
| DerivativeFinancialassets | |||
| NotesReceivable | |||
| AccountsReceivable | 14,792,320.38 | 14,792,320.38 | |
| Financingreceivables | |||
| Prepayments | |||
| △Premiumreceivable | |||
| △Reinsurancepremiunreceivable | |||
| △Reservereceivableforreinsurance | |||
| Otherreceivables | 621,900,443.29 | 621,900,443.29 | |
| Inc:interestreceivables | |||
| Dividendsreceivables | |||
| △Financialassetspurchasedunderresaleagreements | |||
| Inventories | |||
| Contractassets | |||
| Availableforsaleassets | |||
| Non-currentassetsduewithinoneyear | |||
| Othercurrentassets | |||
| Totalcurrentassets | 694,461,573.41 | 694,461,573.41 | |
| Non-currentassets: | |||
| △LoansAndAdvances | |||
| Debtinvestments | |||
| Otherdebtinvestments | |||
| Long-termreceivables |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| Long-termequityinvestments | 18,582,307,907.14 | 18,582,307,907.14 | |
| Otherequityinstruments | 152,800,000.00 | 152,800,000.00 | |
| Othernon-currentfinancialassets | |||
| Investmentproperties | 384,641,527.88 | 384,641,527.88 | |
| Fixedassets | 383,060,000.00 | 383,060,000.00 | |
| Constructioninprogress | 72,569,103.57 | 72,569,103.57 | |
| Bearerbiologicalassets | |||
| Oilandgasassets | |||
| Right-of-useassets | |||
| Intangibleassets | |||
| Developmentexpenditure | |||
| Goodwill | |||
| Long-termprepaidexpenses | |||
| Deferredtaxassets | 20,529,151.44 | 20,529,151.44 | |
| Othernon-currentassets | 501,095,111.10 | 501,095,111.10 | |
| TotalNon-currentAssets | 20,097,002,801.13 | 20,097,002,801.13 | |
| TotalAssets | 20,791,464,374.54 | 20,791,464,374.54 | |
| Currentliabilities: | |||
| Short-termborrowings | 871,083,875.00 | 871,083,875.00 | |
| △Borrowingsfromcentralbank | |||
| △Placementfrombanksandotherfinancialinstitutions | |||
| Financialliabilitiesheldfortrading | |||
| DerivativeFinancialliabilitiels | |||
| Notespayable | |||
| accountspayable | 83,621,752.26 | 83,621,752.26 | |
| Receiptsinadvance | |||
| Contractliabilities | |||
| △Financialassetssoldunderrepurchaseagreements |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| △Absorbingdepositanddepositininter-bankmarket | |||
| △Customerdepositsfortradinginsecurities | |||
| △Amountsduetoissuerforsecuritiesunderwriting | |||
| Employeebenefitspayable | |||
| Taxespayable | 1,437,291.71 | 1,437,291.71 | |
| Otherpayable | 446,606,530.72 | 446,606,530.72 | |
| Inc:Interestpayables | |||
| Dividendspayables | |||
| △Feesandcommissionspayable | |||
| △Reinsuranceaccountspayable | |||
| Held-for-saleliabilities | |||
| Non-currentLiabilitiesduewithinOneYear | |||
| Othercurrentliabilities | |||
| TotalCurrentLiabilities | 1,402,749,449.69 | 1,402,749,449.69 | |
| Non-currentLiabilities: | |||
| △Depositsforinsurancecontracts | |||
| Long-termborrowings | |||
| Bondspayable | |||
| Inc:preferenceshare | |||
| Perpetualbond | |||
| Leaseliabilities | |||
| Long-termpayables | |||
| Long-termemployeebenefitspayable | |||
| Provisions | |||
| DeferredIncome | |||
| Deferredtaxliabilities | 10,007,613.34 | 10,007,613.34 | |
| Othernon-currentliabilities | |||
| TotalNon-currentLiabilities | 10,007,613.34 | 10,007,613.34 |
Item
| Item | 31December2020 | 1January2021 | Ajustment |
| TotalLiabilities | 1,412,757,063.03 | 1,412,757,063.03 | |
| Owners'equity: | |||
| Paid-incapital(sharecapital) | 6,167,399,389.00 | 6,167,399,389.00 | |
| Otherequityinstrument | |||
| Inc:preferenceshare | |||
| Perpetualbond | |||
| Capitalreserve | 12,775,326,370.33 | 12,775,326,370.33 | |
| Deduct:Treasuryshares | |||
| Othercomprehensiveincome | 30,000,000.00 | 30,000,000.00 | |
| Specialreserve | |||
| Surplusreserve | 387,458,806.65 | 387,458,806.65 | |
| △Generalriskreserve | |||
| Retainedearnings | 18,522,745.53 | 18,522,745.53 | |
| TotalOwners'Equity | 19,378,707,311.51 | 19,378,707,311.51 | |
| TotalLiabilitiesandOwners'Equity | 20,791,464,374.54 | 20,791,464,374.54 |
5.ExplanationonretrospectiveadjustmentofpriorperiodcomparativedataunderthenewleasestandardforthefirsttimeTheCompanyadjustedtheretainedearningsatthebeginningoftheyearandotherrelateditemsinthefinancialstatementsbasedonthecumulativeimpactsinaccordancewiththenewleasestandards.Noadjustmentsweremadetothepreviouscomparativedata.
SectionVI.ConsolidatedFinancialStatementProjectNotes
“Theopeningbalance”referstothebalanceon1January2021and“theclosingbalance”referstothebalanceon31December2021.“Thepriorperiod”istheyearof2020and“Thecurrentperiod”istheyearof2021.
1.Monetaryfunds
| Item | Closingbalance | Openingbalance |
| Cash | 62,362.45 | 67,906.76 |
Item
| Item | Closingbalance | Openingbalance |
| Bankbalances | 1,756,140,584.62 | 5,882,201,630.73 |
| Othercurrencyfunds | 214,158,325.57 | 68,125,551.63 |
| Total | 1,970,361,272.64 | 5,950,395,089.12 |
Note:1.Othercurrencyfundsmainlyincludethebalanceofthird-partypaymentplatformssuchasPOS,TenpayandAlipayandsoon
2.Attheendoftheperiod,therearemortgages,pledges,freezing,andotherrestrictedfunds.Fordetails,pleaserefertoNoteVI(52)“Assetswithrestrictedownershiporuserights”.
3.Therewerenofundsdepositedoverseasattheendoftheperiod.
2.Transactionalfinancialassets
| Item | Closingbalance | Openingbalance |
| Financialassetsclassifiedasatfairvaluethroughprofitorloss | 346,726,621.74 | 983,205,858.25 |
| Including:Debtinstrumentinvestment | 346,726,621.74 | 983,205,858.25 |
| Total | 346,726,621.74 | 983,205,858.25 |
3.Accountsreceivable
3.1Disclosurebyaging
| Aging | Closingbalance | Openingbalance |
| Within1year(inclusive) | 23,537,021.54 | 22,622,309.65 |
| 1-2years(inclusive) | 20,016,302.00 | 2,715.00 |
| Less:Provisionforbaddebts | 3,178,481.27 | 1,131,386.99 |
| Total | 40,374,842.27 | 21,493,637.66 |
3.2Classifieddisclosurebybaddebtaccrualmethod
| Item | Closingbalance | ||||
| Bookbalance | Baddebtprovision | Bookvalue | |||
| Amount | Proportion(%) | Amount | Proportion(%) | ||
| Accountsreceivablesforwhichbaddebtprovision | 43,553,323.54 | 100.00 | 3,178,481.27 | 7.30 | 40,374,842.27 |
Item
| Item | Closingbalance | ||||
| Bookbalance | Baddebtprovision | Bookvalue | |||
| Amount | Proportion(%) | Amount | Proportion(%) | ||
| hasbeenassessedbycreditriskportfoliosTotal | |||||
| Inc:Combination2 | 3,530,335.54 | 8.11 | 176,985.38 | 5.01 | 3,353,350.16 |
| Combination3 | 40,022,988.00 | 91.89 | 3,001,495.89 | 7.50 | 37,021,492.11 |
| Total | 43,553,323.54 | 100.00 | 3,178,481.27 | -- | 40,374,842.27 |
Continued:
| Item | Openingbalance | ||||
| Bookbalance | Baddebtprovision | Bookvalue | |||
| Amount | Proportion(%) | Amount | Proportion(%) | ||
| AccountsreceivablesforwhichbaddebtprovisionhasbeenassessedbycreditriskportfoliosTotal | 22,625,024.65 | 100.00 | 1,131,386.99 | 5.00 | 21,493,637.66 |
| Inc:Combination2 | 2,618,094.65 | 11.57 | 131,040.49 | 5.01 | 2,487,054.16 |
| 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 |
Accountsreceivablesforwhichbaddebtprovisionhasbeenassessedbycreditriskportfoliostotal：
| Item | Closingbalance | ||
| AccountsReceivable | Baddebtprovision | Proportion(%) | |
| Inc:Combination2 | 3,530,335.54 | 176,985.38 | 5.01 |
| Inc:Combination3 | 40,022,988.00 | 3,001,495.89 | 7.50 |
| Total | 43,553,323.54 | 3,178,481.27 | -- |
3.3Baddebtprovision
| Item | Openingbalance | Changesintheperiod | Closingbalance |
Provision
| Provision | recoveryorreversal | Write-off | Otherchanges | |||
| Provisionforbaddebtsofaccountsreceivable | 1,131,386.99 | 2,047,094.28 | 3,178,481.27 | |||
| Total | 1,131,386.99 | 2,047,094.28 | 3,178,481.27 |
3.4Top5accountsreceivableattheendoftheperiod
| Creditor | Natureofpayment | Closingbalance | Baddebtprovision | Aging | Percentageoftotalaccountsreceivable（%） |
| YaxiaIndustrial | Leasepayments | 40,000,000.00 | 2,999,999.99 | Within2year | 91.84 |
| Customer1 | Hotelservice | 1,424,677.50 | 71,233.88 | Within1year | 3.27 |
| Customer2 | Hotelservice | 1,292,261.00 | 64,613.05 | Within1year | 2.97 |
| Customer3 | Hotelservice | 244,856.00 | 12,242.80 | Within1year | 0.56 |
| Customer4 | Hotelservice | 115,703.00 | 5,785.15 | Within1year | 0.27 |
| Total | 43,077,497.50 | 3,153,874.87 | 98.91 |
4.Prepayments
4.1Disclosurebyaging
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion | Amount | Proportion | |
| Within1year(inclusive) | 1,438,350.00 | 100.00 | 2,204,120.00 | 100.00 |
| Total | 1,438,350.00 | 100.00 | 2,204,120.00 | 100.00 |
4.2Topfiveentitieswiththelargestbalancesofprepayments
| Creditor | Natureofpayment | Closingbalance | Aging | Percentageoftotaladvances（%） | Baddebtprovision |
| NanjingEurasianAirPassengerTransportAgentCo.,Ltd | Ticket | 798,055.00 | Within1year | 55.48 | |
| NanjingTuniuInternationalTravelServiceCo.,L | Ticket | 640,295.00 | Within1year | 44.52 | |
| Total | 1,438,350.00 | 100.00 |
5.Otherreceivables
5.1Classifiedlisting
Item
| Item | Closingbalance | Openingbalance |
| Otherreceivables | 219,501,061.83 | 304,318,966.20 |
| Total | 219,501,061.83 | 304,318,966.20 |
5.2Otherreceivables
5.2.1Disclosurebyaging
| Aging | Closingbalance | Openingbalance |
| Within1year(inclusive) | 185,478,538.64 | 267,173,451.40 |
| 1-2years(inclusive) | 8,746,012.76 | 12,454,633.59 |
| 2-3years(inclusive) | 11,575,869.13 | 6,657,947.72 |
| 3-4years(inclusive) | 5,104,417.72 | 1,787,284.88 |
| 4-5years(inclusive) | 1,769,524.36 | 9,138,241.31 |
| Over5years | 13,686,855.19 | 7,995,108.15 |
| Less:Provisionforbaddebts | 6,860,155.97 | 887,700.85 |
| Total | 219,501,061.83 | 304,318,966.20 |
5.2.2Otherreceivablesbynatureofthepayment
| Item | Closingbalance | Openingbalance |
| Depositsandguarantees | 217,158,729.61 | 302,437,947.35 |
| Reserve | 265,275.00 | 120.00 |
| Disbursementfeeandother | 2,077,057.22 | 1,880,898.85 |
| Total | 219,501,061.83 | 304,318,966.20 |
5.2.3Withdrawingprocessofbaddebtprovision
| Baddebtprovision | Thefirststage | secondstage | Thethirdstage | Total |
| Expectedcreditlossesinthenext12months | Expectedcreditlossfortheentireduration(nocreditimpairment | Expectedcreditlossesfortheentireduration(creditimpairmentlosshas |
loss)
| loss) | occurred) | |||
| Balanceasof1January2021 | 377,400.85 | 510,300.00 | 887,700.85 | |
| Balanceofotherreceivableson1January2021duringthecurrentperiod | ||||
| ——transferredtostage2 | ||||
| ——transferredtostage3 | ||||
| ——transferredbackstage2 | ||||
| ——transferredbacktostage1 | ||||
| Provisionduringthecurrentperiod | 6,482,755.12 | 6,482,755.12 | ||
| Reversalduringthecurrentperiod | ||||
| Resaleduringthecurrentpeirod | ||||
| Wrtie-offduringthecurrentperiod | 510,300.00 | 510,300.00 | ||
| Otherchanges | ||||
| Balanceasof31December2021 | 6,860,155.97 | 6,860,155.97 |
5.2.4Situationofbaddebtprovision
| Item | Openingbalance | Changesintheperiod | Closingbalance | |||
| Provision | recoveryorreversal | Write-off | Otherchanges | |||
| Provisionforbaddebtsofotherreceivables | 887,700.85 | 6,482,755.12 | 510,300.00 | 6,860,155.97 | ||
| Total | 887,700.85 | 6,482,755.12 | 510,300.00 | 6,860,155.97 | ||
5.2.5Otherreceivablesactuallywritten-offduringthereportingperiod
| Item | Amountchargeoff |
| Otherreceivablesactuallywritten-off | 510,300.00 |
5.2.6Top5otherreceivableattheendoftheperiod
Creditor
| Creditor | Natureofpayment | Closingbalance | Aging | Percentageoftotalotherreceivables(%) | Closingbalanceofbaddebtprovision |
| BeijingConstructionEngineeringRealEstateCo.,Ltd | Depositsandguarantees | 124,498,000.00 | Within1year | 55.00 | 6,224,900.00 |
| BeijingHuaxiaShunxinPropertyManagementCo.,Ltd | Depositsandguarantees | 25,000,000.00 | Within1year | 11.04 | |
| HainanGahexinTechnologyCo.,Ltd | Depositsandguarantees | 15,000,000.00 | Within1year | 6.63 | |
| ShenyangLijingPearlHotelManagementCo.,Ltd | Depositsandguarantees | 5,675,200.00 | Over5years | 2.51 | |
| HarbinYuhengPharmaceuticalCo.,Ltd | Depositsandguarantees | 3,961,093.75 | Within1yearOver5years | 1.75 | |
| Total | 174,134,293.75 | 76.93 | 6,224,900.00 |
6.Non-currentassetsduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Debtinvestmentduewithinoneyear | 1,985,873,462.75 | |
| Total | 1,985,873,462.75 |
7.Othercurrentassets
| Item | Closingbalance | Openingbalance |
| Pendingpayment | 12,833,701.81 | 41,832,345.30 |
| Advancetax | 13,869,795.74 | |
| Prepaidexpenses | 10,255,632.25 | 3,025,677.50 |
| Total | 36,959,129.80 | 44,858,022.80 |
8.Debtinvestment
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Timedeposit | 7,058,993.55 | 7,058,993.55 | ||||
| Total | 7,058,993.55 | 7,058,993.55 | ||||
9.Long-termequityinvestment
Theinvested
entity
| Theinvestedentity | Openingbalance | Changesfortheyear | Closingbalance | Closingbalanceofprovisionforimpairment | |||||||
| Increase | Decrease | Investmentprofitunderequitymethod | Othercomprehensiveincomeadjustment | Otherequitychange | Cashdividendsorprofitsannouncedofissuance | Provisionforimpairment | Others | ||||
| II.Associates | |||||||||||
| BeijingZhongwangFutureEducationTechnologyCo.,Ltd | 100,000,000.00 | 51,000,000.00 | -2,149,635.60 | 46,850,364.40 | |||||||
| Total | 100,000,000.00 | 51,000,000.00 | -2,149,635.60 | 46,850,364.40 | |||||||
10.Otherequityinvestment
10.1Otherequityinvestment
Item
| Item | Closingbalance | Openingbalance |
| ShanghaiZuihuibaoNetworkTechnologyCo.,Ltd. | 103,600,000.00 | 126,000,000.00 |
| AnhuiNingguoRuralCommercialBankCo.,Ltd. | 26,800,000.00 | 26,800,000.00 |
| Total | 130,400,000.00 | 152,800,000.00 |
10.2Investmentinnon-tradingequityinstruments
| Item | Recognizeddividendincome | Cumulativegain | Accumulatedloss | Amountofothercomprehensiveincometransferredtoretainedearnings | Reasonsforthedesignationasbeingmeasuredatfairvalueandthechangeincludedinothercomprehensiveincome | Reasonsfortransferringothercomprehensiveincometoretainedearnings |
| ShanghaiZuihuibaoNetworkTechnologyCo.,Ltd. | 17,600,000.00 | Planforlong-termholding | ||||
| AnhuiNingguoRuralCommercialBankCo.,Ltd. | 1,327,872.00 | Planforlong-termholding | ||||
| Total | 1,327,872.00 | 17,600,000.00 |
11.Othernon-currentfinancialassets
| Item | Closingbalance | Openingbalance |
| BeijingJinwuVentureCapitalCenter(LimitedPartnership) | 30,260,000.00 | 38,050,000.00 |
| Financialproduct | 170,400,315.01 | |
| Total | 30,260,000.00 | 208,450,315.01 |
12.Investmentproperty
12.1InvestmentrealestatemeasurementmodelInvestmentrealestatewithcostmeasurementmodel:
| Item | Housesandbuildings | Landuserights | Total |
| 1.Originalcarryingamount |
Item
| Item | Housesandbuildings | Landuserights | Total |
| 1.1Openingbalance | 377,111,222.22 | 473,825,849.87 | 850,937,072.09 |
| 1.2Increaseinthecurrentperiod | |||
| 1.3Decreaseinthecurrentperiod | 3,201,828.13 | 3,201,828.13 | |
| 1.3.1Disposal | 3,201,828.13 | 3,201,828.13 | |
| 1.4Closingbalance | 377,111,222.22 | 470,624,021.74 | 847,735,243.96 |
| 2.Accumulateddepreciationandamortization | |||
| 2.1Openingbalance | 50,891,399.79 | 71,833,552.56 | 122,724,952.35 |
| 2.2Increaseinthecurrentperiod | 9,000,262.93 | 11,354,161.39 | 20,354,424.32 |
| 2.2.1Accrualoramortization | 9,000,262.93 | 11,354,161.39 | 20,354,424.32 |
| 2.3Decreaseinthecurrentperiod | 478,278.09 | 478,278.09 | |
| 2.3.1Disposal | 478,278.09 | 478,278.09 | |
| 2.4Closingbalance | 59,891,662.72 | 82,709,435.86 | 142,601,098.58 |
| 3.Provisionforimpairment | |||
| 3.1Openingbalance | 6,556,268.55 | 53,641,335.37 | 60,197,603.92 |
| 3.2Increaseinthecurrentperiod | |||
| 3.3Decreaseinthecurrentperiod | |||
| 3.4Closingbalance | 6,556,268.55 | 53,641,335.37 | 60,197,603.92 |
| 4.Bookvalue | |||
| 4.1Closingbalance | 310,663,290.95 | 334,273,250.51 | 644,936,541.46 |
| 4.2Openingbalance | 319,663,553.88 | 348,350,961.94 | 668,014,515.82 |
12.2Thesituationofinvestmentrealestatethathasnotcompletedthepropertyrightcertificate
| Item | Closingbalance | Reasonsfornotcompletingthepropertyrightcertificate |
| Housesandbuildings | 263,850,928.19 | Inprogress |
| Landuserights | 5,149,979.01 | Inprogress |
13.Fixedassets
13.1Presentation
| Item | Closingbalance | Openingbalance |
| Fixedassets | 1,770,372,338.85 | 1,612,792,592.67 |
| Total | 1,770,372,338.85 | 1,612,792,592.67 |
13.2Fixedassets
13.2.1Fixedassetssituation
Item
| Item | Housesandbuildings | Decorationoffixedassets | Transportationequipment | Electronicequipment | Officeequipment | Total |
| I.Originalcarryingamount | ||||||
| 1.Openingbalance | 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 |
| 1.2Increaseinthecurrentperiod | 243,690,788.14 | 733,750.00 | 13,566,679.73 | 39,376.40 | 258,030,594.27 | |
| 1.2.1Purchase | 9,798,328.75 | 733,750.00 | 13,566,679.73 | 39,376.40 | 24,138,134.88 | |
| 1.2.2Otherincreases | 233,892,459.39 | 233,892,459.39 | ||||
| 1.3Decreaseinthecurrentperiod | 632,059.91 | 632,059.91 | ||||
| 1.3.1Disposalorscrap | 632,059.91 | 632,059.91 | ||||
| 1.4Closingbalance | 1,798,288,071.53 | 64,708,424.02 | 79,966,146.51 | 235,284,975.20 | 12,081,043.61 | 2,190,328,660.87 |
| II.Accumulateddepreciation | ||||||
| 2.1Openingbalance | 95,350,935.18 | 23,777,361.06 | 67,037,779.49 | 123,219,503.77 | 10,672,970.00 | 320,058,549.50 |
| 2.2Increaseinthecurrentperiod | 53,479,752.98 | 9,836,387.16 | 4,203,652.49 | 32,178,961.58 | 359,845.02 | 100,058,599.23 |
| 2.2.1Provision | 53,479,752.98 | 9,836,387.16 | 4,203,652.49 | 32,178,961.58 | 359,845.02 | 100,058,599.23 |
| 2.3Decreaseinthecurrentperiod | 239,811.05 | 239,811.05 | ||||
| 2.3.1Disposalorscrap | 239,811.05 | 239,811.05 | ||||
| 2.4Closingbalance | 148,830,688.16 | 33,613,748.22 | 71,001,620.93 | 155,398,465.35 | 11,032,815.02 | 419,877,337.68 |
| III.Provisionforimpairment | ||||||
| 3.1Openingbalance | 4,309.80 | 74,674.54 | 78,984.34 | |||
| 3.2Increaseinthecurrentperiod | ||||||
| 3.3Decreaseinthecurrentperiod | ||||||
| 3.4Closingbalance | 4,309.80 | 74,674.54 | 78,984.34 | |||
| IV.Bookvalue | ||||||
| 4.1Closingbalance | 1,649,457,383.37 | 31,094,675.80 | 8,964,525.58 | 79,882,200.05 | 973,554.05 | 1,770,372,338.85 |
Item
| Item | Housesandbuildings | Decorationoffixedassets | Transportationequipment | Electronicequipment | Officeequipment | Total |
| 4.2Openingbalance | 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 |
Note:OtherincreasesareduetotheacquisitionofLu'anYazhongRealEstateInformationConsultingCo.,Ltd.andLu'anZhongkeRealEstateInformationConsultingCo.,Ltd.inthecurrentperiod.
13.2.2Thesituationoffixedassetsthathavenotcompletedthetitlecertificate
| Item | Carryingamount | Reasonsfornotcompletingthepropertyrightcertificate |
| Housesandbuildings | 371,414,975.96 | Inprogress |
14.Constructioninprogress
14.1Masterlist
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 294,785,678.31 | 214,248,125.04 |
| Total | 294,785,678.31 | 214,248,125.04 |
14.2Constructioninprogress
14.2.1Constructioninprogress
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| OffcnFushunBuilding | 157,099,898.91 | 157,099,898.91 | 140,287,691.52 | 140,287,691.52 | ||
| RizhaoLearningCity | 63,725,345.88 | 63,725,345.88 | ||||
| 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 | 1,391,329.95 | 1,391,329.95 | ||
| Total | 294,785,678.31 | 294,785,678.31 | 214,248,125.04 | 214,248,125.04 | ||
14.2.2Changesinimportantconstructionprojectsinthecurrentperiod
Continued：
Amountinjectedasaproportionofbudget
amount(%)
| Amountinjectedasaproportionofbudgetamount(%) | Constructionprogress(%) | Amountofaccumulatedcapitalizedinterest | Including:capitalizedinterestfortheperiod | Interestcapitalizationratefortheperiod(%) | Sourceoffunds |
| 47.61 | 47.61 | self-funds | |||
| 6.37 | 6.37 | self-funds | |||
| -- | -- |
15.Right-of-useassets
| Item | Housesandbuildings | Total |
| 1.Originalcarryingamount | ||
| 1.1Openingbalance | 1,491,006,998.14 | 1,491,006,998.14 |
| 1.2Increaseinthecurrentperiod | 368,668,630.21 | 368,668,630.21 |
| 1.2.1Addaleasecontract | 368,668,630.21 | 368,668,630.21 |
| 1.3Decreaseinthecurrentperiod | 73,601,114.44 | 73,601,114.44 |
| 1.3.1Leaseexpiry | 58,175,992.36 | 58,175,992.36 |
| 1.3.2Expiresearly | 15,425,122.08 | 15,425,122.08 |
| 1.4Closingbalance | 1,786,074,513.91 | 1,786,074,513.91 |
| 2.Accumulatedamortization | ||
| 1.Openingbalance | 503,643,895.04 | 503,643,895.04 |
| 2.2Increaseinthecurrentperiod | 503,643,895.04 | 503,643,895.04 |
| 2.2.1Provision | 59,849,768.21 | 59,849,768.21 |
| 2.3Decreaseinthecurrentperiod | 58,175,992.36 | 58,175,992.36 |
| 2.3.1Leaseexpiry | 1,673,775.85 | 1,673,775.85 |
| 2.3.2Expiresearly | 443,794,126.83 | 443,794,126.83 |
| 2.4Closingbalance | 503,643,895.04 | 503,643,895.04 |
Item
| Item | Budgetamount | Openingbalance | Increaseinthecurrentperiod | Transfertofixedassets | Otherdecreases | Closingbalance |
| OffcnFushunBuilding | 330,000,000.00 | 140,287,691.52 | 16,812,207.39 | 157,099,898.91 | ||
| RizhaoLearningCity | 1,000,000,000.00 | 63,725,345.88 | 63,725,345.88 | |||
| Total | 1,330,000,000.00 | 140,287,691.52 | 80,537,553.27 | 220,825,244.79 |
Item
| Item | Housesandbuildings | Total |
| 3.Impairmentprovision | ||
| 3.1Openingbalance | ||
| 3.2Increaseinthecurrentperiod | ||
| 3.3Decreaseinthecurrentperiod | ||
| 3.4Closingbalance | ||
| 4.Bookvalue | ||
| 4.1Closingbalance | 1,342,280,387.08 | 1,342,280,387.08 |
| 4.2Openingbalance | 1,491,006,998.14 | 1,491,006,998.14 |
16.Intangibleassets
16.1Intangibleassets
| Item | Landuserights | Softwareuserights | Trademarkrights | Total |
| 1.Originalcarryingamount | ||||
| 1.1Openingbalance | 446,725,693.93 | 7,774,286.02 | 7,140,521.53 | 461,640,501.48 |
| 1.2Increaseinthecurrentperiod | 463,327,047.50 | 463,327,047.50 | ||
| 1.2.1Purchase | 136,098,747.50 | 136,098,747.50 | ||
| 1.2.2Otherincreases | 327,228,300.00 | 327,228,300.00 | ||
| 1.3Decreaseinthecurrentperiod | ||||
| 1.4Closingbalance | 910,052,741.43 | 7,774,286.02 | 7,140,521.53 | 924,967,548.98 |
| 2.Accumulatedamortization | ||||
| 1.Openingbalance | 29,028,132.73 | 3,810,053.83 | 2,446,748.17 | 35,284,934.73 |
| 2.2Increaseinthecurrentperiod | 21,616,899.76 | 706,888.17 | 728,165.47 | 23,051,953.40 |
| 2.2.1Provision | 21,616,899.76 | 706,888.17 | 728,165.47 | 23,051,953.40 |
| 2.3Decreaseinthecurrentperiod | ||||
| 2.4Closingbalance | 50,645,032.49 | 4,516,942.00 | 3,174,913.64 | 58,336,888.13 |
| 3.Impairmentprovision | ||||
| 3.1Openingbalance | 3,111.00 | 3,111.00 | ||
| 3.2Increaseinthecurrentperiod | ||||
| 3.3Decreaseinthecurrentperiod | ||||
| 3.4Closingbalance | 3,111.00 | 3,111.00 | ||
| 4.Bookvalue | ||||
| 4.1Closingbalance | 859,407,708.94 | 3,254,233.02 | 3,965,607.89 | 866,627,549.85 |
| 4.2Openingbalance | 417,697,561.20 | 3,961,121.19 | 4,693,773.36 | 426,352,455.75 |
Note:OtherincreasesareduetotheacquisitionofLu'anYazhongRealEstateInformationConsultingCo.,Ltd.andLu'anZhongkeRealEstateInformationConsultingCo.,Ltd.inthecurrentperiod.
16.2Landuserightwithoutpropertycertificationheld
Item
| Item | Closingbalance | Reasonsfornotcompletingthepropertyrightcertificate |
| Landuserights | 257,463,145.70 | Inprogress |
17.Goodwill
17.1Originalbookvalueofgoodwill
| Nameoftheinvesteeanditemresultingingoodwill | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | ||
| Formedbybusinesscombination | others | Dispose | others | |||
| 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 | ||||
17.2Goodwillimpairmentprovision
None.
17.3Relevantinformationofassetgrouporcombinationofassetgroupwheregoodwillislocated
ThecompanyacquiredShandongKunzhongRealEstateCo.,Ltd.in2016andgeneratedgoodwillofRMB39,378,573.51.ThegoodwillwasdividedintocorrespondingassetgroupswithabookvalueofRMB178,960,953.83.Therecoverableamountoftheassetgroupisdeterminedbasedonthenetamountofthefairvalueminusthedisposalexpenses.
Thecompany'sacquisitionofNanjingHuiyueHotelManagementCo.,Ltd.in2018generatedgoodwillofRMB60,489,146.87,whichwasdividedintocorrespondingassetgroupswithabookvalueofRMB188,191,547.68.Therecoverableamountoftheassetgroupisdeterminedbasedonthenetamountofthefairvalueminusthedisposalexpenses.
17.4.Goodwillimpairmenttestingprocess,keyparametersandconfirmationmethodofgoodwillimpairmentloss
ThemethodofprovisionforimpairmentisdetailedinNoteIII(25)Impairmentoflong-termassets.
Therecoverableamountofthecompany'sassetgroupincludinggoodwillisestimatedbyusingthenetamountofthefairvalueoftheassetgroupinwhichthegoodwillislocatedlessthedisposalcosts.Asthemainassetshaveafairvaluethatcanbereferredtointhemarket,themarketcomparisonmethodisusedtoestimatethefairvalueofthebasedateoftheassetstobeestimated,takingintoaccountdifferencesintime,transaction,regionalandindividualfactors.Forotherassets,combinedwiththeactualsituationofassets,thecostmethodisadoptedtodeterminethefairvalueoftheassetstobeappraisedonthebasedate.Thecompanyentrustedanassetassessmentcompanytoconductanimpairmenttestongoodwill.Aftertesting,nogoodwillwasfoundtobeimpaired,andnoprovisionforimpairmentwasmade.
18.Long-termprepaidexpenses
Item
| Item | Openingbalance | Increaseintheperiod | Amortizationfortheperiod | Otherreductions | Closingbalance |
| Decorationexpenditure | 400,291,298.64 | 35,524,590.00 | 66,684,829.78 | 369,131,058.86 | |
| Other | 12,217,367.56 | 1,402,059.83 | 2,559,479.87 | 11,059,947.52 | |
| Total | 412,508,666.20 | 36,926,649.83 | 69,244,309.65 | 380,191,006.38 |
19.DeferredincometaxassetsandDeferredincometaxliabilities
19.1Unoffsetdeferredincometaxassets
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Provisionforimpairmentlossesofassets | 7,097,408.69 | 1,143,919.39 | 1,879,621.51 | 412,811.14 |
| Deductiblelosses | 2,816,982,346.58 | 422,547,351.99 | 84,774,502.49 | 21,193,625.63 |
| Changesinfairvalueofheld-for-tradingfinancialassets | 2,240,000.00 | 336,000.00 | ||
| Total | 2,826,319,755.27 | 424,027,271.38 | 86,654,124.00 | 21,606,436.77 |
19.2Unoffsetdeferredincometaxliabilities
| Item | Closingbalance | Openingbalance |
Taxabletemporarydifference
| Taxabletemporarydifference | Deferredincometaxliabilities | Taxabletemporarydifference | Deferredincometaxliabilities | |
| AppraisalandAppreciationofConsolidatedAssetsofNon-identicalControlledEnterprises | 355,061,963.00 | 88,765,490.76 | 365,183,429.96 | 91,295,857.49 |
| Changesinfairvalueofotherequityinstrumentinvestments | 17,600,000.00 | 4,400,000.00 | 40,000,000.00 | 10,000,000.00 |
| Changesinfairvalueoffinancialassetsheldfortrading | 3,446,850.74 | 546,681.86 | 22,697,173.26 | 3,381,587.10 |
| Total | 376,108,813.74 | 93,712,172.62 | 427,880,603.22 | 104,677,444.59 |
19.3Unrecognizeddeferredincometaxassetdetails
| Item | Closingbalance | Openingbalance |
| Deductiblelosses | 261,754,607.89 | 55,733,407.18 |
| Deductibletemporarydifference | 2,801,762.22 | 221,561.67 |
| Total | 264,556,370.11 | 55,954,968.85 |
19.4Thedeductiblelossesofunrecognizeddeferredincometaxassetswillexpireinthefollowingyears
| Year | Closingbalance | Openingbalance |
| 2021 | 10,989,030.45 | |
| 2022 | 14,669,961.10 | 119,383.82 |
| 2023 | 11,480,964.23 | 11,480,964.23 |
| 2024 | 38,853,304.84 | 9,975,369.01 |
| 2025 | 57,109,818.13 | 23,168,659.67 |
| 2026 | 139,640,559.59 | |
| Total | 261,754,607.89 | 55,733,407.18 |
20.Othernon-currentassets
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| PrepaymentforFixedAssets | 1,630,946,885.38 | 1,630,946,885.38 | ||||
Item
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Inputtaxtobededucted/tobecertified | 11,962,352.40 | 11,962,352.40 | 13,707,312.81 | 13,707,312.81 | ||
| Prepaidconstructionpayments | 8,455,158.00 | 8,455,158.00 | 35,584,390.50 | 35,584,390.50 | ||
| Investmentfunds | 800,000.00 | 800,000.00 | 500,800,000.00 | 500,800,000.00 | ||
| Prepaidlandpayments | 601,000,000.00 | 601,000,000.00 | ||||
| Total | 1,652,164,395.78 | 1,652,164,395.78 | 1,151,091,703.31 | 1,151,091,703.31 | ||
21.Short-termloanShort-termloanclassification
| Item | Closingbalance | Openingbalance |
| Creditloans | 3,152,945,812.59 | 3,496,251,279.22 |
| Pledgeloans | 479,768,050.00 | |
| Total | 3,152,945,812.59 | 3,976,019,329.22 |
22.AccountspayableListofaccountspayable
| Item | Closingbalance | Openingbalance |
| Startclassfees | 109,756,452.70 | 47,005,391.45 |
| Fixedassets | 83,112,000.00 | 83,112,000.00 |
| Projectpayments | 51,080,172.01 | 53,138,461.93 |
| Renovationcosts | 22,461,110.93 | 11,312,336.01 |
| Marketpromotionfees | 15,623,180.88 | 12,918,597.97 |
| Rentandpropertyfees | 4,337,615.50 | |
| Total | 282,032,916.52 | 211,824,402.86 |
23.ContractliabilitiesSummaryofcontractliabilities
| Item | Closingbalance | Openingbalance |
| Trainingfeesreceivedinadvance | 3,063,247,467.84 | 4,925,351,396.44 |
| Other | 473,822.44 | 76,912.89 |
Item
| Item | Closingbalance | Openingbalance |
| Total | 3,063,721,290.28 | 4,925,428,309.33 |
24.payrollpayable
24.1Listofemployeesalariespayable
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| I.Short-termsalary | 636,827,645.79 | 5,753,275,600.55 | 5,983,922,630.72 | 406,180,615.62 |
| II.Post-employmentwelfare-definedcontributionplanliability | 620,788.20 | 372,679,188.11 | 356,633,735.33 | 16,666,240.98 |
| III.Dismissedwelfare | 885,604.94 | 845,604.94 | 40,000.00 | |
| Total | 637,448,433.99 | 6,126,840,393.60 | 6,341,401,970.99 | 422,886,856.60 |
24.2Short-termsalarylist
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| I.Wagesorsalaries,bonuses,allowancesandsubsidies | 628,829,674.62 | 5,373,626,145.61 | 5,602,712,023.21 | 399,743,797.02 |
| II.Staffwelfare | 11,990,933.07 | 11,990,933.07 | ||
| III.Socialsecuritycontributions | 6,950,840.17 | 220,714,436.79 | 221,895,581.98 | 5,769,694.98 |
| Inc:1.Medicalinsurance | 6,934,136.71 | 206,998,124.98 | 208,552,743.83 | 5,379,517.86 |
| 2.Workinjuryinsurance | 3,575.24 | 7,945,142.66 | 7,558,746.97 | 389,970.93 |
| 3.Maternityinsurance | 13,128.22 | 5,771,169.15 | 5,784,091.18 | 206.19 |
| IV.Housingfund | 1,041,581.00 | 146,786,598.68 | 147,161,297.68 | 666,882.00 |
| V.Laborunionexpenditureandemployeeeducationexpenditure | 5,550.00 | 157,486.40 | 162,794.78 | 241.62 |
| Total | 636,827,645.79 | 5,753,275,600.55 | 5,983,922,630.72 | 406,180,615.62 |
24.3Setdepositplanlisting
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| I.Basicendowmentinsurance | 600,449.08 | 359,511,711.59 | 344,052,854.92 | 16,059,305.75 |
Item
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| II.Unemploymentinsurance | 20,339.12 | 13,167,476.52 | 12,580,880.41 | 606,935.23 |
| Total | 620,788.20 | 372,679,188.11 | 356,633,735.33 | 16,666,240.98 |
24.4Dismissedwelfare
| Item | Amountofcurrentpayments | Amountduebutnotyetpaid |
| Compensationforterminationofemployment | 845,604.94 | 40,000.00 |
| Total | 845,604.94 | 40,000.00 |
25.Taxespayable
| Item | Closingbalance | Openingbalance |
| 1.Corporateincometax | 7,200,408.21 | 119,249,068.60 |
| 2.Landusetax | 2,064,992.60 | 806,176.59 |
| 3.Propertytax | 1,604,934.51 | 1,251,091.59 |
| 4.Value-addedtax | 1,258,114.36 | 8,571,895.29 |
| 5.Withholdingindividualincometax | 227,163.18 | 160,427.08 |
| 6.Citymaintenanceandconstructiontax | 84,830.67 | 549,182.28 |
| 7.Educationsurcharge | 37,072.06 | 238,219.17 |
| 8.Other | 89,236.25 | 285,710.18 |
| Total | 12,566,751.84 | 131,111,770.78 |
26.Otherpayable
26.1Masterlist
| Item | Closingbalance | Openingbalance |
| Otherpayable | 129,043,599.22 | 9,479,383.03 |
| Total | 129,043,599.22 | 9,479,383.03 |
26.2Otherpayables
| Item | Closingbalance | Openingbalance |
| Equitytransfer | 61,283,300.00 | |
| Dailyexpenses | 58,363,407.47 | 1,597,271.61 |
Item
| Item | Closingbalance | Openingbalance |
| SocialSecurityandProvidentFund | 683,275.40 | 924,969.11 |
| Advancesandothers | 8,713,616.35 | 6,957,142.31 |
| Total | 129,043,599.22 | 9,479,383.03 |
27.Non-currentliabilitiesduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Leaseliabilitiesduewithinoneyear | 531,876,007.31 | 699,372,590.26 |
| Total | 531,876,007.31 | 699,372,590.26 |
28.Othercurrentliabilities
| Item | Closingbalance | Openingbalance |
| Value-addedtaxreceivedinadvance | 91,925,853.39 | 147,765,156.66 |
| Total | 91,925,853.39 | 147,765,156.66 |
29.Leaseliabilities
| Item | Closingbalance | Openingbalance |
| Housesandbuildings | 635,691,184.87 | 632,866,068.34 |
| Total | 635,691,184.87 | 632,866,068.34 |
30.Sharecapital
| Item | Openingbalance | Changesinthecurrentperiod（+、-） | Closingbalance | ||||
| Issuenewshares | Bonusshare | Providentfundtransfertosharecapital | other | Total | |||
| Sharecapital | 103,807,623.00 | 103,807,623.00 | |||||
31.Capitalreserve
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Equitypremium | 1,225,481,049.50 | 1,225,481,049.50 | ||
| Total | 1,225,481,049.50 | 1,225,481,049.50 |
32.Othercomprehensiveincome
Item
| Item | Openingbalance | Amountincurredinthisperiod | Closingbalance | |||||
| Pre-taxamountfortheyear | Less:transferredtoothercomprehensiveincomeinthepreviousperiodandtransferredtoprofitorlossinthecurrentperiod | Less:transferredtoothercomprehensiveincomeinthepreviousperiodandtransferredtoretainedearningsinthecurrentperiod | Less:incometaxexpenses | Attributabletotheparentcompany,aftertax | Attributabletominorityshareholders,aftertax | |||
| 1.Othercomprehensiveincomenotreclassfiedintogainsorlosses | 30,000,000.00 | -22,400,000.00 | -5,600,000.00 | -16,800,000.00 | 13,200,000.00 | |||
| Changesinthefairvalueofotherequityinstruments | 30,000,000.00 | -22,400,000.00 | -5,600,000.00 | -16,800,000.00 | 13,200,000.00 | |||
| 2.Othercomprehensiveincomeclassifiedintogainsorlosses | ||||||||
| Total | 30,000,000.00 | -22,400,000.00 | -5,600,000.00 | -16,800,000.00 | 13,200,000.00 | |||
33.Surplusreserve
Item
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Statutorysurplusreserve | 45,000,000.00 | 45,000,000.00 | ||
| Total | 45,000,000.00 | 45,000,000.00 |
34.Undistributedprofit
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Undistributedprofitsattheendofpreviousyear | 2,870,839,120.70 | 2,046,657,231.32 |
| Adjustingundistributedprofitsatthebeginningoftheperiod(Increase+,decrease-) | ||
| Undistributedprofitsatthebeginningoftheyear | 2,870,839,120.70 | 2,046,657,231.32 |
| Add:netprofitattributabletoownersoftheParentCompany | -2,369,509,039.00 | 2,304,357,742.74 |
| Less:appropriationofstatutorysurplusreserve | ||
| Appropriationofarbitrarysurplusreserves | ||
| Dividendpayableforordinaryshares | 1,480,175,853.36 | |
| Other | ||
| Undistributedprofitsattheendofperiod | 501,330,081.70 | 2,870,839,120.70 |
35.Operatingincomeandoperatingcosts
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Operatingincome | Operatingcosts | Operatingincome | Operatingcosts | |
| Primeoperatingincome | 6,860,282,371.30 | 4,945,732,913.85 | 11,138,901,718.71 | 4,513,636,084.16 |
| Including:EducationandTraining | 6,860,282,371.30 | 4,945,732,913.85 | 11,138,901,718.71 | 4,513,636,084.16 |
| Otherbusiness | 51,440,960.49 | 47,984,449.73 | 63,592,576.33 | 53,690,847.28 |
| Total | 6,911,723,331.79 | 4,993,717,363.58 | 11,202,494,295.04 | 4,567,326,931.44 |
36.Taxesandsurcharges
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Landholdingtax | 11,321,827.24 | 3,381,103.73 |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Citymaintenanceandconstructiontax | 8,522,400.03 | 763,262.32 |
| Propertytax | 7,049,854.14 | 6,616,408.91 |
| Educationsurcharge | 6,082,104.43 | 541,844.53 |
| Stamptax | 1,767,176.26 | 844,498.27 |
| Vehicleusagetax | 206,086.78 | 219,798.99 |
| Other | 405,720.86 | 371,797.88 |
| Total | 35,355,169.74 | 12,738,714.63 |
37.Salesexpenses
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee'ssalary | 1,483,858,537.49 | 1,236,069,387.65 |
| Marketingfee | 270,366,194.33 | 278,829,823.86 |
| Rentpropertyanddepreciationamortization | 223,882,255.51 | 188,443,486.90 |
| Travelexpenses | 113,757,589.64 | 99,197,672.77 |
| Other | 13,234,335.09 | 9,249,741.98 |
| Total | 2,105,098,912.06 | 1,811,790,113.16 |
38.Managementexpenses
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee'ssalary | 895,338,308.25 | 860,224,894.29 |
| Rentalpropertyanddepreciationamortization | 189,782,209.74 | 155,909,891.20 |
| Officeexpenses | 123,857,061.80 | 116,671,846.80 |
| Travelexpenses | 67,023,692.53 | 62,125,639.40 |
| Welfarefee | 8,856,771.23 | 8,559,890.15 |
| Sharepayments | 26,900,000.00 | |
| Other | 30,784,978.48 | 49,477,045.53 |
| Total | 1,315,643,022.03 | 1,279,869,207.37 |
39.Researchanddevelopmentexpenses
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Employee'ssalary | 821,900,871.61 | 980,101,934.22 |
| Travelexpenses | 27,128,292.82 | 23,799,305.33 |
| Other | 52,440,374.14 | 46,796,094.24 |
| Total | 901,469,538.57 | 1,050,697,333.79 |
40.Financialexpenses
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Interestexpenses | 274,734,405.81 | 172,114,852.12 |
| Less:Interestincome | 58,235,304.20 | 33,148,136.69 |
| ServiceCharge | 275,115,370.37 | 291,581,973.74 |
| Total | 491,614,471.98 | 430,548,689.17 |
41.Otherincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| VATexemption | 68,480,064.80 | 313,855,441.46 |
| Financialsupport | 20,000,000.00 | |
| Stablesubsidy | 6,034,820.96 | 19,123,806.18 |
| Smallfinancialsupportincome | 1,187,768.87 | 151,606.91 |
| Rentsubsidyincome | 273,750.00 | 268,680.00 |
| Taxhandlingfeerefund | 107,735.71 | 1,746,734.22 |
| Landusetaxincentives | 444,804.00 | |
| Parksupportandsubsidy | 120,000.00 | |
| Total | 96,084,140.34 | 335,711,072.77 |
42.Investmentincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Long-termequityinvestmentsincomeunderequitymethod | -2,149,635.60 | |
| Investmentincomefromdisposaloflong-termequityinvestments | 26,620.33 | |
| Dividendincomeobtainedduringtheholdingperiodof | 1,327,872.00 | 249,600.00 |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| otherequityinstrumentinvestments | ||
| Interestincomeobtainedduringtheperiodofdebtinvestmentholding | 23,083,807.21 | 76,070,548.08 |
| InvestmentincomefromFinancialproduct | 56,955,660.58 | 180,223,310.57 |
| Gainsarisingfromremeasurementofremainingequityatfairvalueafterlossofcontrol | 25,576.40 | |
| Total | 79,269,900.92 | 256,543,458.65 |
43.Fairvaluechangeincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Tradablefinancialassets | -21,490,322.52 | 20,984,385.76 |
| Total | -21,490,322.52 | 20,984,385.76 |
44.Expectedcreditloss
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Accountsreceivablebaddebtlosses | -2,047,094.28 | -988,142.88 |
| Otherreceivablesbaddebt | -6,482,755.12 | -182,909.95 |
| Total | -8,529,849.40 | -1,171,052.83 |
45.Assetdisposalincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Fixedassets | -163,075.82 | 162,043.59 |
| Total | -163,075.82 | 162,043.59 |
46.Non-operatingincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedincurrentnon-recurringprofitandloss |
| Liquidateddamagesincome | 18,141,095.89 | 18,141,095.89 | |
| gainsfromdisposaloffixedassets | 44,705.00 |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedincurrentnon-recurringprofitandloss |
| Governmentsubsidy | 19,800.00 | ||
| Other | 798.00 | ||
| Total | 18,141,095.89 | 65,303.00 | 18,141,095.89 |
47.Non-operatingexpenses
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | Amountincludedincurrentnon-recurringprofitandloss |
| Fixedassetsdisposallosses | 5,264.50 | 5,264.50 | |
| ForfeitureandLatePayments | 833,516.13 | 365,792.85 | 833,516.13 |
| Externaldonation | 415,001.84 | 305,003.50 | 415,001.84 |
| Compensationexpenses | 50,000.00 | 3,845.50 | 50,000.00 |
| Total | 1,303,782.47 | 674,641.85 | 1,303,782.47 |
48.Incometaxexpense
48.1Statementofincometaxexpense
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Incometaxexpenses | -399,652,322.88 | 356,812,108.72 |
| Inc:Currenttaxexpense | 8,133,783.70 | 356,690,541.80 |
| Deferredtaxexpense | -407,786,106.58 | 121,566.92 |
48.2Accountingprofitandincometaxexpenseadjustmentprocess
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Totalprofit | -2,769,167,039.23 | 2,661,143,874.57 |
| Incometaxexpensescalculatedpursuanttostatutory/applicabletaxrate(s) | -415,375,055.88 | 399,171,581.19 |
| Impactfromdifferenttaxratesapplicabletosubsidiaries | -5,079,231.58 | -6,991,306.55 |
| Impactfromadjustmenttoincometaxinpriorperiods | 604,294.24 | -13,895.40 |
| Profitandlossattributabletojointventuresandassociates | 537,408.90 | |
| Impactofnon-taxableincome | -331,968.00 | -62,400.00 |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Impactfromnon-deductiblecost,expenseandloss | 4,510,631.06 | 5,245,057.55 |
| Taxdeduction | -30,794,981.36 | -45,107,330.97 |
| Impactfromusingdeductiblelossesofpreviouslyunrecognizeddeferredincometaxassets | -611,337.11 | -78,416.71 |
| Theeffectofdeductibletemporarydifferencesordeductiblelossesofdeferredincometaxassetsnotrecognizedinthecurrentperiod | 46,887,916.85 | 4,648,819.61 |
| Incometaxexpenses | -399,652,322.88 | 356,812,108.72 |
49.Othercomprehensiveincomeitemsandtheirincometaximpactandtransfer-inprofitandlossSeethisreportfordetailsNote“Ⅵ(32)Othercomprehensiveincome”.
50.Itemsincashflowstatement
50.1Othercashreceiptsrelatingtooperatingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Depositsandguarantees | 67,046,115.88 | 206,647,643.62 |
| Interestincome | 58,235,304.20 | 33,148,136.69 |
| Otherincomeandnon-operatingincome | 45,745,171.43 | 22,576,746.74 |
| Disbursementfeeandothe | 794,866.26 | 1,548,933.16 |
| Reserve | 120,357.15 | 5,313,917.82 |
| Capitaloccupationfee | 13,324,109.00 | |
| Total | 171,941,814.92 | 282,559,487.03 |
50.2Othercashpaymentsrelatingtooperatingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Dailyexpenses | 701,531,709.86 | 1,015,974,942.08 |
| ServiceCharge | 218,115,370.37 | 291,248,494.89 |
| Depositsandguarantees | 197,610,304.93 | 70,688,933.00 |
| Non-operatingexpenses | 1,303,782.47 | 674,641.85 |
| Disbursementfeeandother | 462,284.22 | |
| Reserve | 385,512.15 | 5,480,802.14 |
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Total | 1,119,408,964.00 | 1,384,067,813.96 |
50.3Othercashreceiptsrelatingtoinvestingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Engineeringdeposit | 200,000,000.00 | |
| Total | 200,000,000.00 |
50.4Othercashpaymentsrelatingtoinvestingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Engineeringdeposit | 200,000,000.00 | |
| Total | 200,000,000.00 |
50.5Othercashreceiptsrelatingtofinancingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Equitydistributionmargin | 1,000,000.00 | |
| Total | 1,000,000.00 |
50.6Othercashpaymentsrelatingtofinancingactivities
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Cashpaidtorepayprincipalandinterestonleaseliability | 606,571,985.34 | |
| Equitydistributionmargin | 1,000,000.00 | |
| Dividendhandlingfee | 333,478.85 | |
| Total | 606,571,985.34 | 1,333,478.85 |
51.SupplementaryInformationonCashFlowStatement
51.1SupplementaryInformationonCashFlowStatement
| Additionalmaterials | Amountforthecurrentperiod | Amountforthepriorperiod |
| 1.Reconciliationofnetprofittocashflowfrom |
Additionalmaterials
| Additionalmaterials | Amountforthecurrentperiod | Amountforthepriorperiod |
| operatingactivities: | ||
| Netprofit | -2,369,514,716.35 | 2,304,331,765.85 |
| Add:Provisionforimpairmentlossesofassets | ||
| Creditimpairmentloss | 8,529,849.40 | 1,171,052.83 |
| Depreciationoffixedassets,depletionofoilandgasassets,depreciationofbearerbiologicalassets | 120,413,023.55 | 88,365,469.55 |
| Amortizationofright-of-useassets | 503,643,895.04 | |
| Amortizationofintangibleassets | 20,823,493.07 | 12,694,728.51 |
| Amortizationoflong-termprepaidexpenses | 66,684,829.78 | 62,457,211.00 |
| Losses/(gains)ondisposaloffixedassets,intangibleassetsandotherlong-termasset | 163,075.82 | -162,043.59 |
| Losses/(gains)onwrite-offoffixedassets | 5,264.50 | -44,705.00 |
| Losses/(gains)onchangesinfairvalues | 21,490,322.52 | -20,984,385.76 |
| Financialexpenses/(income) | 274,734,405.81 | 172,448,330.97 |
| Losses/(gains)arisingfrominvestments | -79,269,900.92 | -256,543,458.65 |
| Decrease/(increase)indeferredtaxassets | -402,420,834.61 | -123,604.64 |
| Increase/(decrease)indeferredtaxliabilities | -5,365,271.97 | 245,171.56 |
| Decrease/(increase)ininventories | ||
| Decrease/(increase)inreceivablesfromoperatingactivities | -172,950,120.86 | 107,621,688.58 |
| Increase/(decrease)inpayablesfromoperatingactivities | -2,084,928,863.68 | 2,384,091,880.70 |
| Others | 26,900,000.00 | |
| Netcashflowfromoperatingactivities | -4,097,961,548.90 | 4,882,469,101.91 |
| 2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashflow | ||
| Conversionofdebtintocapital | ||
| Reclassificationofcurrentportionofconvertiblebondstocurrentliabilities | ||
| Fixedassetscapitalizedunderfinancelease | ||
| 3.Netchangesincashandcashequivalents: | ||
| Closingbalanceofcash | 1,969,806,009.56 | 5,950,036,489.12 |
| Less:Openingbalanceofcash | 5,950,036,489.12 | 2,724,335,001.58 |
| Add:Closingbalanceofcashequivalents |
Additionalmaterials
| Additionalmaterials | Amountforthecurrentperiod | Amountforthepriorperiod |
| Less:Openingbalanceofcashequivalents | ||
| Netincreaseincashandcashequivalents | -3,980,230,479.56 | 3,225,701,487.54 |
51.2NetCashreceiveofdisposalofthesubsidiary
| Item | Amount |
| Disposalofcashorcashequivalentsreceivedbysubsidiariesinthecurrentperiod | 51,000,000.00 |
| Including:BeijingZhonggongFutureEducationTechnologyCo.,Ltd. | 51,000,000.00 |
| Less:Cashandcashequivalentsheldbythecompanyonthedateoflossofcontrol | |
| Add:Cashorcashequivalentsreceivedinthecurrentperiodfromdisposalsofsubsidiariesinpreviousperiods | |
| Netcashreceivedfromdisposalofsubsidiaries | 51,000,000.00 |
51.3.CompositionofCashandCashEquivalents
| Item | Closingbalance | Openingbalance |
| I.Cash | 1,969,806,009.56 | 5,950,036,489.12 |
| Including:Cashonhand | 62,362.45 | 67,906.76 |
| Bankdeposits | 1,755,585,321.54 | 5,881,843,030.73 |
| Othermonetaryfunds | 214,158,325.57 | 68,125,551.63 |
| II.Cashequivalents | ||
| Including:Investmentsindebtsecuritiesduewithinthreemonths | ||
| III.Closingbalanceofcashandcashequivalents | 1,969,806,009.56 | 5,950,036,489.12 |
| Including:Cashandcashequivalentswithrestricteduseofparentcompanyorsubsidiarieswithinthegroup |
52.Assetswithrestrictedownershiporuserights
| Item | Closingbalance | Reasonforrestriction |
| Cashandcashequivalents | 84,800.00 | Guaranteeddeposit |
| Cashandcashequivalents | 470,463.08 | Notusedforalongtime/Notcheckedd |
| Total | 555,263.08 |
53.GovernmentsubsidyDetailsofGovernmentsubsidy
Species
| Species | Amount | Listeditems | Amountincludedincurrentprofitandloss |
| Financialsupport | 20,000,000.00 | Otherincome | 20,000,000.00 |
| Stablesubsidy | 6,034,820.96 | Otherincome | 6,034,820.96 |
| Smallfinancialsupportincome | 1,187,768.87 | Otherincome | 1,187,768.87 |
| Rentsubsidyincome | 273,750.00 | Otherincome | 273,750.00 |
| Total | 27,496,339.83 | 27,496,339.83 |
VII.ChangesIntheScopeOfConsolidation
1.BusinesscombinationsnotundercommoncontrolNone.
2.BusinesscombinationunderthesamecontrolNone.
3.ReversepurchaseNone.
4.Disposalofsubsidiaries
| Subsidiaryname | Equitydisposalprice | Equitydisposalratio（%） | Equitydisposalmethod | thepointintimewhencontrolwaslost | Basisfordeterminationofthepointintimewhencontrolislost | Thedifferencebetweenthedisposalpriceandtheshareofthesubsidiary'snetassetsattheconsolidatedfinancialstatementlevelcorrespondingtothedisposalinvestment |
| BeijingOffcnFutureEducationTechnologyCo.,Ltd. | 51,000,000.00 | 51.00 | Transfer | 2021-10-12 | Signthetransferagreementandreceivethedisposalpayment | 26,620.33 |
Continued：
| Percentageofremainingequityatthe | Bookvalueofremainingequityonthedateofloss | Fairvalueofremainingequityatthedateofloss | Gainorlossfromremeasurementofremainingequityat | Determinationmethodandmainassumptionsoffairvalueof | Amounttransferredfromothercomprehensive |
dateoflossofcontrol（%）
| dateoflossofcontrol（%） | ofcontrol | ofcontrol | fairvalue | remainingequityonthedateoflossofcontrol | incomerelatedtoequityinvestmentinatomiccompanytoinvestmentprofitandloss |
| 49.00 | 48,974,423.60 | 49,000,000.00 | 25,576.40 | Appraisedvalue |
5.Changesinthescopeofconsolidationduetootherreasons
| Thenameofthesubsidiary | Proportionofshareholding(%) | Reasonforchanges |
| 1.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | 100.00 | Acquisition(Note) |
| 2.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | 100.00 | Acquisition(Note) |
| 3.WenlingOffcnInformationConsultingCo.,Ltd | 100.00 | Newestablishment |
| 4.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 5.DiqingOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 6.DaliOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 7.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 8.NujiangOffcnTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 9.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | 100.00 | Newestablishment |
| 10.BeijingOffcnCenturyEducationTechnologyCo.,Ltd | 100.00 | Newestablishment |
Note:TheCompany'sacquisitionofLu'anYazhongRealEstateInformationConsultingCo.,Ltd.andLu'anZhongkeRealEstateInformationConsultingCo.,Ltd.doesnotconstituteabusinesscombination,anditsessenceisessentiallythepurchaseofassets.
6.Other
None.
SectionVIII.InterestsInOtherEntities
1.Interestsinsubsidiaries
1.1Compositionofthecompany
Name
| Name | PrincipalBusinessAddress | Placeofregistration | Natureofbusiness | Proportionofshareholding（%） | Votingrightsratio（%） | AcquisitionMethodDirect | |
| Direct | Indirect | ||||||
| 1.OffcnLtd. | Beijing | Beijing | Service | 100.00 | 100.00 | Reversepurchase | |
| 2.WuhuYaweiAutomobileSalesServiceCo.,Ltd | Wuhu | Wuhu | Sales | 100.00 | 100.00 | Newestablishment | |
| 3.NingguoYaxiaMotorVehicleDriverTrainingSchool(Co.,Ltd.) | Ningguo | Ningguo | Service | 100.00 | 100.00 | Newestablishment | |
| 4.HuangshanYaxiaFudiAutomobileSalesServicesCo.,Ltd. | Huangshan | Huangshan | Sales | 100.00 | 100.00 | Newestablishment | |
| 5.ChaohuYaxiaKaixuanAutomobileSalesServiceCo.,Ltd. | Hefei | Hefei | Sales | 100.00 | 100.00 | Newestablishment | |
| 6.BozhouYaxiaMotorVehicleDriverTrainingSchoolCo.,Ltd. | Bozhou | Bozhou | Service | 100.00 | 100.00 | Newestablishment | |
| 7.SuzhouBokaiAutomobileSalesServiceCo.,Ltd. | Suzhou | Suzhou | Sales | 100.00 | 100.00 | Acquisition | |
| 8.ShaanxiOffcnEducationTechnologyCo.Ltd. | Xi'an | Xi'an | Service | 100.00 | 100.00 | Newestablishment | |
| 9.ChengduOffcnFutureEducationTrainingSchoolCo.Ltd. | Chengdu | Chengdu | Service | 100.00 | 100.00 | Newestablishment | |
| 10.Lu’anYazhongRealEstateInformationConsultingCo.,Ltd. | Lu'an | Lu'an | Realestate | 100.00 | 100.00 | Acquisition | |
| 11.Lu’anZhongkeRealEstateInformationConsultingCo.,Ltd. | Lu'an | Lu'an | Realestate | 100.00 | 100.00 | Acquisition | |
| 12.ZhejiangOffcnEducationTechnologyCo.Ltd.. | Hangzhou | Hangzhou | Service | 100.00 | 100.00 | Newestablishment | |
| 13.TaizhouOffcnFutureEnterpriseManagementConsultingCo.,Ltd. | Taizhou | Taizhou | Service | 100.00 | 100.00 | Newestablishment | |
| 14.WenlingOffcnInformationConsultingCo.,Ltd. | Wenling | Wenling | Service | 100.00 | 100.00 | Newestablishment | |
| 15.BeijingOffcnXinzhiyuOnlineTechnologyCo.,Ltd. | Beijing | Beijing | Service | 100.00 | 100.00 | Newestablishment | |
| 16.HulunBuirHailarOffcnEducationInformationConsultingCo.,Ltd.. | Hulunbeier | Hulunbeier | Service | 100.00 | 100.00 | Newestablishment | |
Name
| Name | PrincipalBusinessAddress | Placeofregistration | Natureofbusiness | Proportionofshareholding（%） | Votingrightsratio（%） | AcquisitionMethodDirect | |
| Direct | Indirect | ||||||
| 17.XilinhotOffcnFutureEducationConsultingCo.,Ltd | Xilinhaote | Xilinhaote | Service | 100.00 | 100.00 | Newestablishment | |
| 18.YueqingLechengOffcnTrainingCenterCo.,Ltd.. | Yueqing | Yueqing | Service | 100.00 | 100.00 | Newestablishment | |
| 19.JiaozuoOffcnFutureEducationServiceCo.,Ltd | Jiaozuo | Jiaozuo | Service | 100.00 | 100.00 | Newestablishment | |
| 20.XinzhengOffcnCulturalCommunicationCo.,Ltd.. | Zhengzhou | Zhengzhou | Service | 100.00 | 100.00 | Newestablishment | |
| 21.ChongqingJiangbeiOffcnVocationalExaminationTrainingCo.,Ltd. | Chongqing | Chongqing | Service | 100.00 | 100.00 | Newestablishment | |
| 22.NanningOffcnFutureEducationConsultingCo.,Ltd. | Nanning | Nanning | Service | 100.00 | 100.00 | Newestablishment | |
| 23.BaiyinOffcnFutureEducationConsultingCo.,Ltd. | Baiyin | Baiyin | Service | 100.00 | 100.00 | Newestablishment | |
| 24.BeijingXindeZhiyuanEnterpriseManagementConsultingCo.,Ltd.. | Beijing | Beijing | Service | 100.00 | 100.00 | Newestablishment | |
| 25.NanjingHuiyueHotelManagementCo.,Ltd. | Nanjing | Nanjing | Service | 100.00 | 100.00 | Acquisition | |
| 26.ShandongKunzhongRealEstateCo.,Ltd. | Jinan | Jinan | Service | 100.00 | 100.00 | Acquisition | |
| 27.SanmenxiaOffcnCulturalCommunicationCo.,Ltd. | Sanmenxia | Sanmenxia | Service | 100.00 | 100.00 | Newestablishment | |
| 28.LiaoningOffcnAcademic&CulturalExchangeCo.,Ltd. | Shenyang | Shenyang | Service | 100.00 | 100.00 | Newestablishment | |
| 29.LiaoningOffcnEducationTechnologyCo.,Ltd. | Shenfuxinqu | Shenfuxinqu | Service | 100.00 | 100.00 | Newestablishment | |
| 30.ShandongOffcnEducationTechnologyCo.,Ltd. | Qingdao | Qingdao | Service | 100.00 | 100.00 | Newestablishment | |
| 31.JilinChangyiOffcnEducationTrainingSchoolCo.,Ltd. | Jilin | Jilin | Service | 100.00 | 100.00 | Newestablishment | |
| 32.YuxiOffcnTrainingSchoolCo.,Ltd. | Yuxi | Yuxi | Service | 100.00 | 100.00 | Newestablishment | |
| 33.TonghuaOffcnTrainingSchoolCo.,Ltd. | Tonghua | Tonghua | Service | 100.00 | 100.00 | Newestablishment | |
Name
| Name | PrincipalBusinessAddress | Placeofregistration | Natureofbusiness | Proportionofshareholding（%） | Votingrightsratio（%） | AcquisitionMethodDirect | |
| Direct | Indirect | ||||||
| 34.HunanLightsaltOffcnEducationTechnologyCo.,Ltd.. | Changsha | Changsha | Service | 90.00 | 90.00 | Newestablishment | |
| 35.TianjinHexiOffcnTrainingSchoolCo.,Ltd. | Tianjin | Tianjin | Service | 100.00 | 100.00 | Newestablishment | |
| 36.ChengduOffcnEducationTrainingSchoolCo.,Ltd. | Chengdu | Chengdu | Service | 100.00 | 100.00 | Newestablishment | |
| 37.ShandongZhuodaBusinessManagementCo.,Ltd. | Rizhao | Rizhao | Service | 100.00 | 100.00 | Newestablishment | |
| 38.LiaoningZhongchengRealEstateDevelopmentCo.,Ltd. | Shenfuxinqu | Shenfuxinqu | Realestate | 100.00 | 100.00 | Acquisition | |
| 39.WuhuOffcnTrainingSchoolCo.Ltd. | Wuhu | Wuhu | Service | 100.00 | 100.00 | Newestablishment | |
| 40.WuhanGuoshangHumanResourceServiceCo.,Ltd. | Wuhan | Wuhan | Service | 100.00 | 100.00 | Newestablishment | |
| 41.JinanZhangqiuOffcnTrainingSchoolCo.,Ltd. | Jinan | Jinan | Service | 100.00 | 100.00 | Newestablishment | |
| 42.MengziOffcnEducationTrainingCo.Ltd.. | Mengzi | Mengzi | Service | 100.00 | 100.00 | Newestablishment | |
| 43.BeijingOffcnTechnologyDevelopmentCo.Ltd.. | Beijing | Beijing | Service | 100.00 | 100.00 | Newestablishment | |
| 44.ShanghaiOffcnEducationTechnologyCo.Ltd. | Shanghai | Shanghai | Service | 100.00 | 100.00 | Newestablishment | |
| 45.GuangzhouOffcnSmartEducationTechnologyCo.Ltd. | Guangzhou | Guangzhou | Service | 100.00 | 100.00 | Newestablishment | |
| 46.PingshanOffcnEducationTechnologyCo.Ltd. | Shijiazhuang | Shijiazhuang | Service | 100.00 | 100.00 | Newestablishment | |
| 47.ShandongOffcnEducationTrainingSchoolCo.Ltd. | Jinan | Jinan | Service | 100.00 | 100.00 | Newestablishment | |
| 48.LanzhouOffcnEducationTrainingSchoolCo.Ltd. | Lanzhou | Lanzhou | Service | 100.00 | 100.00 | Newestablishment | |
| 49.AnshanTiedongOffcnEducationTrainingSchoolCo.,Ltd. | Anshan | Anshan | Service | 100.00 | 100.00 | Newestablishment | |
| 50.DiqingOffcnTrainingSchoolCo.,Ltd. | DiQingZhou | DiQingZhou | Service | 100.00 | 100.00 | Newestablishment | |
Name
| Name | PrincipalBusinessAddress | Placeofregistration | Natureofbusiness | Proportionofshareholding（%） | Votingrightsratio（%） | AcquisitionMethodDirect | |
| Direct | Indirect | ||||||
| 51.DaliOffcnEducationTrainingSchoolCo.,Ltd. | Dali | Dali | Service | 100.00 | 100.00 | Newestablishment | |
| 52.HarbinNangangOffcnEducationTrainingSchoolCo.,Ltd. | Harbin | Harbin | Service | 100.00 | 100.00 | Newestablishment | |
| 53.NujiangOffcnTrainingSchoolCo.,Ltd. | NujiangZhou | NujiangZhou | Service | 100.00 | 100.00 | Newestablishment | |
| 54.WeixiOffcnEducationTrainingSchoolCo.,Ltd. | Weixi | Weixi | Service | 100.00 | 100.00 | Newestablishment | |
| 55.BeijingOffcnCenturyEducationTechnologyCo.,Ltd | Beijing | Beijing | Service | 100.00 | 100.00 | Newestablishment | |
1.2Materialnon-whollyownedsubsidiariesNone.
1.3Mainfinancialinformationinrespectofmaterialnon-whollyownedsubsidiariesNone.
1.4SignificantrestrictionsontheuseofenterprisegroupassetsandpayoffdebtsoftheenterprisegroupNone.
1.5FinancialsupportorothersupportprovidedtostructuredentitiesincludedinthescopeofconsolidatedfinancialstatementsNone.
2.Theshareofownershipinthesubsidiarychangesandthesubsidiarystillcontrolsthetransaction
None.
3.Investmentsubject
None.
4.Interestsinjointarrangementsorjointventures
Financialsummaryfornon-importantJointventureandassociatedenterprise
| Item | Endingbalance/Currentperiod | Openingbalance/LastPeriod |
Item
| Item | Endingbalance/Currentperiod | Openingbalance/LastPeriod |
| Associatedenterprise： | ||
| Totalbookvalueofinvestment | 46,850,364.40 | |
| Amountbasedonshare-holdingratio | -2,149,635.60 | |
| --Netprofit | -2,149,635.60 | |
| --Othercomprehensiveincome | ||
| --Totalcomprehensiveincome |
5.SignificantjointoperationsNone.
6.InterestsinstructuredentitiesnotincludedinthescopeofconsolidatedfinancialstatementsNone.
7.OtherNone.
SectionIX.RisksAssociatedWithFinancialInstrumentsThecompany'smainfinancialinstrumentsincludecashandcashequivalents,financialassetsheldfortrading,accountsreceivable,otherreceivables,debtinvestments,otherequityinstrumens,othernon-currentfinancialassets,etc.Therisksassociatedwiththesefinancialinstrumentsandtheriskmanagementpoliciesadoptedbythecompanytoreducetheserisksaredescribedbelow.Thecompany'smanagementmanagesandmonitorstheseexposurestoensurethattheserisksarecontainedwithinadefinedrange.Riskmanagementobjectiveandpolicy：TheCompany’sriskmanagementistostrikeanappropriatebalancebetweenrisksandbenefits,minimizethenegativeimpactofrisksontheCompany'sbusinessperformanceandmaximizetheinterestsofshareholdersandotherequityinvestors.Basedonthisriskmanagementobjective,thebasicstrategyoftheCompany'sriskmanagementistodetermineandanalyzevariousrisksfacedbytheCompany,establishanappropriatebottomlineforrisktolerance,makeriskmanagementandtimelyandreliablysupervisevariousriskstocontroltheriskswithinthelimitedscope.ThemainriskscausedbytheCompany'sfinancialinstrumentsarecreditrisk,liquidityriskandmarketrisk.
1.Classificationoffinancialinstruments
1.1Carryingvalueofvariousfinancialassets
（1）31December2021
Item
| Item | Financialassetsmeasuredatamortizedcost | Financialassetsmeasuredatfairvaluethroughprofitorloss | Financialassetsmeasureatfairvaluethroughothercomprehensiveincome | Total |
| Cashandcashequivalents | 1,970,361,272.64 | 1,970,361,272.64 | ||
| Financialassetsheldfortrading | 346,726,621.74 | 346,726,621.74 | ||
| AccountsReceivable | 40,374,842.27 | 40,374,842.27 | ||
| Otherreceivables | 219,501,061.83 | 219,501,061.83 | ||
| Debtinvestment | 7,058,993.55 | 7,058,993.55 | ||
| Othercurrentassets | 12,833,701.81 | 12,833,701.81 | ||
| Otherequityinstruments | 130,400,000.00 | 130,400,000.00 | ||
| Othernon-currentfinancialassets | 30,260,000.00 | 30,260,000.00 |
（2）31December2020
| Item | Financialassetsmeasuredatamortizedcost | Financialassetsatfairvaluethroughprofitorloss | Financialassetsatfairvaluethroughothercomprehensiveincome | Total |
| Cashandcashequivalents | 5,950,395,089.12 | 5,950,395,089.12 | ||
| Financialassetsheldfortrading | 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 | ||
| Otherequityinstruments | 152,800,000.00 | 152,800,000.00 | ||
| Othernon-currentfinancialassets | 208,450,315.01 | 208,450,315.01 |
1.2Carryingvalueofvariousfinancialliabilitiesatthebalancesheetdateasfollows：
（1）31December2021
| Item | Financialliabilitiesatfairvaluethroughprofitorloss | Otherliabilities | Total |
| Short-termborrowings | 3,152,945,812.59 | 3,152,945,812.59 |
Item
| Item | Financialliabilitiesatfairvaluethroughprofitorloss | Otherliabilities | Total |
| Accountspayable | 282,032,916.52 | 282,032,916.52 | |
| Otherpayable | 129,043,599.22 | 129,043,599.22 | |
| Non-currentliabilitiesduewithinoneyear | 531,876,007.31 | 531,876,007.31 | |
| Leaseliability | 635,691,184.87 | 635,691,184.87 |
（2）31December2020
| 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.CreditriskThefinancialassetsofthecompanyincludecashandcashequivalents,financialassetsheldfortrading,accountsreceivable,otherreceivables,etc.Thecreditriskofthesefinancialassetsiscausedbythedefaultofthecounterparty.Themaximumriskexposureisequaltothebookamountoftheseinstruments,including:
TheCompany'sworkingcapitalisdepositedinbankswithhighcreditrating,sothecreditriskofworkingcapitalislow.Thebookvalueofaccountsreceivableandotherreceivablesintheconsolidatedbalancesheetisthebiggestcreditriskthatthecompanymayface.Thecompanycontinuouslymonitorsthebalanceofaccountsreceivableandotherreceivablestoensurethattheoverallcreditriskofthecompanyisundercontrol.ThequantitativedataoftheCompany'screditriskexposurearisingfromaccountsreceivableandotherreceivablescanbefoundinNoteVI(3)“Accountsreceivable“andNoteVI(5)“Otherreceivables”.
3.LiquidityriskThecompanyadoptstherevolvingliquidityplantooltomanagetheriskofcapitalshortage.Thefacilityconsidersboththematuritydateofitsfinancialinstrumentsandtheexpectedcashflowgeneratedbythecompany'soperations.Thegoalofthecompanyistomaintainthebalancebetweenthesustainabilityandflexibilityoffinancingbyusingavarietyoffinancinginstruments,includingbankloansandotherinterest-bearingloans.
Whenmanagingliquidityrisks,theCompanyshallmaintainsufficientcashandcashequivalentsasdeemedbythemanagementandmonitorthemtomeettheCompany'soperationalneedsandreducetheimpactofcashflowfluctuations.Themanagementsmonitortheuseofbankloansandensurecompliancewithloanagreements.
Maturityanalysisoffinancialliabilitiesbasedonundiscountedcontractcashflow:
Item
| Item | 31December2021 | |||
| Within1year | 1-5years | Over5years | Total | |
| Short-termloan | 3,152,945,812.59 | 3,152,945,812.59 | ||
| Accountspayable | 282,032,916.52 | 282,032,916.52 | ||
| Otherpayable | 129,043,599.22 | 129,043,599.22 | ||
| Non-currentliabilitiesduewithinoneyear | 550,685,331.89 | 550,685,331.89 | ||
| Leaseliability | 650,123,884.68 | 22,037,457.51 | 672,161,342.19 | |
Continued：
| Item | 31December2020 | |||
| 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 | ||
4.Marketrisk
Marketriskreferstotheriskthatthefairvalueoffinancialinstrumentsorfuturecashflowfluctuatesduetochangesinmarketprices.Marketriskmainlyincludesinterestrateriskandforeigncurrencyrisk.
4.1.Interestraterisk
None.
4.2.Currencyrisk
None.
SectionX.CapitalManagement
Themainobjectiveofthecompany'scapitalmanagementistoensurethecompany'sabilitytocontinueoperationsand
maintainhealthycapitalratiostosupportthebusinessandmaximizeshareholdervalue.
Thecompanymanagesthecapitalstructureandadjustsitaccordingtotheeconomicsituationandchangesintheriskcharacteristicsofrelatedassets.Tomaintainoradjustthecapitalstructure,thecompanymayadjustthedistributionofprofitstoshareholders,returncapitaltoshareholdersorissuenewshares.Thecompanyisnotsubjecttoexternalmandatorycapitalrequirements.Capitalmanagementobjectives,policiesorproceduresfor2021remainunchanged.
SectionXI.FairValueDisclosure
1.Theendingfairvalueofassetsandliabilitiesmeasuredatfairvalue
Item
| Item | Fairvalueattheendoftheperiod | |||
| Level1 | Level2 | Level3 | Total | |
| I.Continuousfairvaluemeasurement | ||||
| （I.）Transactionfinancialasset | 346,726,621.74 | 30,260,000.00 | 376,986,621.74 | |
| 1.Financialassetatfairvaluethroughprofitorloss | 346,726,621.74 | 30,260,000.00 | 376,986,621.74 | |
| （1）Debtinstruments | 346,726,621.74 | 30,260,000.00 | 376,986,621.74 | |
| （2）Equityinstruments | ||||
| （3）Derivativefinancialassets | ||||
| 2.Designatedasfinancialassetatfairvaluethroughprofitorloss | ||||
| （1）Debtinstruments | ||||
| （2）Equityinstruments | ||||
| （II）Otherdebtinvestments | ||||
| （III）Otherequityinstruments | 130,400,000.00 | 130,400,000.00 | ||
| （IV）Investmentproperties | ||||
| （V）Biologicalassets | ||||
| Totalassetsmeasuredcontinuouslyatfairvalue | 346,726,621.74 | 160,660,000.00 | 507,386,621.74 | |
| （IV）Transactionfinancialliabilities | ||||
| 1.Financialliabilitiesatfairvaluethroughprofitorloss | ||||
| Including：Issuedheld-for-tradingbonds | ||||
| Derivativefinancialliabilities | ||||
| Other | ||||
| 2.Designatedasfinancialassetatfairvaluethroughprofitorloss | ||||
| Totalliabilitiesmeasuredcontinuouslyatfair | ||||
Item
| Item | Fairvalueattheendoftheperiod | |||
| Level1 | Level2 | Level3 | Total | |
| value | ||||
| II、Non-continuousfairvaluemeasurement | ||||
| （I）Assetsheldforsales | ||||
| Totalassetsmeasurednon-continuouslyatfairvalue | ||||
| Totalliabilitiesmeasurednon-continuouslyatfairvalue | ||||
2.Thebasisfordeterminingthemarketpriceofcontinuousandnon-continuousfirst-levelfairvaluemeasurementprojectsNone.
3.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandimportantparametersforcontinuousandnon-continuoussecond-levelfairvaluemeasurementprojects
Thecompany'ssustainablesecond-levelfairvaluemeasurementitemsaremainlyfinancialproducts,Thefairvalueisdeterminedbythediscountedcashflowmethodandtheexpectedrateofreturn.
4.Qualitativeandquantitativeinformationonthevaluationtechniquesusedandimportantparametersforcontinuousandnon-continuousthird-levelfairvaluemeasurementprojects
Thecompany'ssustainablethird-levelfairvaluemeasurementitemsaremainlynon-tradableequityinstrumentinvestmentanddebtinstrumentinvestment.Thefairvalueisdeterminedbymarketmethodandliquiditydiscount.
5.Continuousthird-levelfairvaluemeasurementproject,adjustmentinformationbetweentheopeningandclosingbookvalueandsensitivityanalysisofunobservableparameters
None.
6.Continuousfairvaluemeasurementitems,ifconversionsbetweenvariouslevelsoccurredduringthecurrentperiod,thereasonsfortheconversionsandthepoliciesfordeterminingthetimingoftheconversions
None.
7.Changesinvaluationtechniquesthatoccurredduringtheperiodandthereasonsforthechanges
None.
8.Thefairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
None.
9.OtherNone.
SetionXII.RelatedPartyRelationshipsAndTransactions
1.BasisofidentifyingrelatedpartyPartiesareconsideredtoberelatedifonepartyhastheabilitytocontrolorjointcontroltheotherpartyorexercisesignificantinfluenceovertheotherparty.Parties(twoormorethantwo)arealsoconsideredtoberelatediftheyaresubjecttocommoncontrol,jointcontrolorsignificantinfluencefromotherparty.
2.ThecontrollingshareholderofthecompanyThecompanyisultimatelycontrolledbyLiyongxinandLuzhongfang.Asof31December2021,theircombinedshareholdingaccountedfor61.01%ofthecompany'ssharecapital.
3.SubsidiariesofthecompanyThedetailsofthesubsidiariesofthecompanyaredetailedinNoteVIII.(1)“Interestinsubsidiaries”.
4.Jointveturesandassociatesofthecompany
Name
| Name | PrincipalBusinessAddress | Placeofregistration | Natureofbusiness | Proportionofshareholding（%） | Accountingtreatment | |
| Direct | Indirect | |||||
| Associates | ||||||
| BeijingZhongwangFutureEducationTechnologyCo.,Ltd | Beijing | Beijing | Service | 49.00 | Equitymethod | |
5.Otherrelatedpartiesofthecompany
| Name | Relationship |
| LiYongxin | Thecontrollingshareholder |
| BeijingQianqiuIntelligenceBook&MediaCo.,Ltd. | Actualcontroller |
| BeijingHaidianOffcnTrainingSchool | Actualcontroller |
| JinanOffcnTrainingSchool | Actualcontroller |
| KunmingWuhuaOffcnTrainingSchool | Actualcontroller |
| BaodingLianchiOffcnTrainingSchool | Actualcontroller |
Name
| Name | Relationship |
| 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. | Enterprisescontrolledbythedirectorsofthecompany |
| BeijingTaifuHotelManagementCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| BeijingXingshouFuyuanPlantation | Thecompanycontrolledbythecompany'scontrollingshareholderandactualcontrollerLiYongxin'sspouseXuHua |
| BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| ShanghaiBeidingNetworkTechnologyCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| ShaanxiGuanchengIndustrialCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| LiaoningHanhuiIndustrialCo.,Ltd. | Enterprisescontrolledbythedirectorsofthecompany |
| WangZhendong | Thecompany'sdirectors/seniormanagers/shareholderswhodirectlyholdmorethan5%(including5%)ofthecompany'sshares |
| ShiLei | Directorofthecompany |
Name
| Name | Relationship |
| YiZiting | Directorofthecompany |
| ChenYuqin | Independentdirectorofthecompany |
| JiangTao | Independentdirectorofthecompany |
| ZhangXuanming | Independentdirectorofthecompany |
| WangQiang | Independentdirectorofthecompany,TermfromFebruary1,2019toJanuary28,2022 |
| TongYan | Independentdirectorofthecompany,TermfromFebruary1,2019toJanuary28,2022 |
| YuHongwei | Supervisorofthecompany |
| LiWen | Supervisorofthecompany |
| HeDi | Supervisorofthecompany |
| HeYouli | Seniormanagementofthecompany |
| GuiHongzhi | Seniormanagementofthecompany |
| LuoXue | Seniormanagementofthecompany |
| WangXuejun | Seniormanagementofthecompany,TermfromFebruary1,2019toJanuary28,2022 |
Note:Thisreportonlylistsrelatedpartiesthathavebusinessdealingswiththecompanyduringthereportingperiod.
6.Related-partytransaction
6.1Relatedtransactionsforthepurchaseandsaleofgoods,provisionandreceiptofservices
6.1.1thetableofprocurementofgoods/acceptanceoflaborservices
| Relatedparties | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Amountforthepreviousperiod |
| BeijingTaifuHotelManagementCo.,Ltd. | Accommodationandcateringservices | 11,802,340.00 | 20,569,200.00 |
| BeijingHaidianOffcnTrainingSchool | Jointschoolrunning | 450,000.00 | 1,032,000.00 |
| ZhanjiangXiashanOffcnTrainingCenter | Jointschoolrunning | 320,000.00 | |
| ChengduWuhouOffcnTrainingSchool | Jointschoolrunning | 280,000.00 | 236,000.00 |
| UrumqiShayibakeOffcnTrainingSchool | Jointschoolrunning | 208,600.00 | 504,000.00 |
| ShaoyangShuangqingOffcnTrainingSchool | Jointschoolrunning | 170,000.00 | 124,600.00 |
| LeshanShizhongOffcnTrainingSchool | Jointschoolrunning | 150,000.00 | 165,000.00 |
| TangshanLunanOffcnTrainingSchool | Jointschoolrunning | 140,000.00 | 115,000.00 |
Relatedparties
| Relatedparties | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Amountforthepreviousperiod |
| HandanCongtaiOffcnTrainingSchool | Jointschoolrunning | 140,000.00 | 100,000.00 |
| BaodingLianchiOffcnTrainingSchool | Jointschoolrunning | 130,000.00 | 90,000.00 |
| BeijingHaidianBaoquanFinancialTrainingCentre | Jointschoolrunning | 120,000.00 | 60,000.00 |
| CangzhouYunheOffcnTrainingSchool | Jointschoolrunning | 120,000.00 | 105,000.00 |
| YiyangHeshanOffcnTrainingSchool | Jointschoolrunning | 80,000.00 | 96,000.00 |
| HeiheAihuiOffcnTrainingSchool | Jointschoolrunning | 66,500.00 | 84,998.00 |
| MudanjiangOffcnTrainingSchool | Jointschoolrunning | 60,500.00 | 62,800.00 |
| KiamuszeOffcnTrainingSchool | Jointschoolrunning | 60,500.00 | 60,500.00 |
| CifengHongshanOffcnTrainingCentre | Jointschoolrunning | 50,000.00 | 47,000.00 |
| HaikouMeilanOffcnTrainingSchool | Jointschoolrunning | 20,000.00 | |
| QiqiharTiefengOffcnTrainingSchool | Jointschoolrunning | 121,800.00 | |
| WeifangOffcnTrainingSchool | Jointschoolrunning | 71,100.00 | |
| DezhouOffcnTrainingSchool | Jointschoolrunning | 11,718.00 | |
| Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd. | Fee | 181,824,220.00 | 141,735,023.00 |
| ShanghaiBeidingNetworkTechnologyCo.,Ltd. | Fee | 1,320,000.00 | 68,993,588.00 |
6.1.2Thetableofsaleofgoods/provisionoflaborservices
| Relatedparties | Contentofrelatedpartytransaction | Amountforthecurrentperiod | Amountforthepreviousperiod |
| BeijingQianqiuIntelligenceBook&MediaCo.,Ltd. | ExhibitionService | 3,364,150.85 | 2,871,698.11 |
6.2Relatedfiduciarymanagement/contractingandentrustedmanagement/outsourcing
6.2.1Thecompany'sentrustedmanagement/contractingsituationtable:
| Trustee/OutsourcerName | Trustee/ContractorName | Type | Entrustment/contractingstartdate | Entrustment/ContractTerminationDate | Custodyincome/contractingincomepricingbasis | Annuallyrecognizedcustodyincome/contractingincome |
| LiYongxin | OffcnLtd. | 33Civilnon-schools | 19October2018 | Longterm | Allreasonablereturnsontheentrustedassets | 226,415.10 |
Trustee/Outsourcer
Name
| Trustee/OutsourcerName | Trustee/ContractorName | Type | Entrustment/contractingstartdate | Entrustment/ContractTerminationDate | Custodyincome/contractingincomepricingbasis | Annuallyrecognizedcustodyincome/contractingincome |
| Total | 226,415.10 |
6.2.2Thecompany'sentrustedmanagement/contractingsituationtable：
None.
6.3Relatedlease
6.3.1Thecompanyasthelessor：
None.
6.3.2Thecompanyasthelessee：
| Nameoflessor | Category | Leasestartdate | Leaseterminationdate | Rentalfeepricingbasis | Rentalfeerecognisedinthecurrentperiod | Rentalfeerecognizedinthepreviousperiod |
| ShenyangLijingPearlHotelManagementCo.,Ltd. | Operatinglease | 1July2016 | 30June2026 | Agreedprice | 25,030,700.00 | 18,175,675.00 |
| Total | 25,030,700.00 | 18,175,675.00 |
6.4Relatedpartyguarantee
6.4.1ThecompanyactastheguarantorNone.
6.4.2ThecompanyistheguaranteedpartyNone.
6.5BorrowingoffundsfromrelatedpartiesNone.
6.6Relatedpartyassetstransferanddebtrestructuring
| Relatedparties | Contentofrelatedpartytransaction | Assetpricingbasis | Amountforthecurrentperiod | Amountforthepreviousperiod |
Relatedparties
| Relatedparties | Contentofrelatedpartytransaction | Assetpricingbasis | Amountforthecurrentperiod | Amountforthepreviousperiod |
| ShaanxiGuanchengIndustrialCo.,Ltd. | purchaseassets | Agreementprice | 383,060,000.00 | |
| BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | purchaseassets | Agreementprice | 513,815.00 | |
| Total | 513,815.00 | 383,060,000.00 |
6.7Keyexecutivecompensation
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Keyexecutivecompensation | 6,120,389.56 | 14,922,629.18 |
6.8Otherrelatedtransactions
6.8.1Commissioneddecoration/engineering
| Relatedparties | Pricingbasis | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Contractamount | Amount | Contractamount | Amount | ||
| BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | Agreementprice | 35,458,590.00 | 242,000,000.00 | 369,467,820.00 | |
| Total | 35,458,590.00 | 242,000,000.00 | 369,467,820.00 | ||
6.8.2Liquidateddamagesincome
| Relatedparties | Amountforthecurrentperiod | Amountforthepriorperiod |
| LiaoningHanhuiIndustrialCo.,Ltd. | 18,141,095.89 | |
| Total | 18,141,095.89 |
7.Relatedpartyaccountsreceivableandpayable
7.1Accountsreceivables
Item
| Item | Relatedparty | Closingbalance | openingbalance | ||
| Carryingamount | Baddebtprovision | Carryingamount | Baddebtprovision | ||
| Otherreceivable | ShenyangLijingPearlHotelManagementCo.,Ltd. | 5,675,200.00 | 5,675,200.00 | ||
| Otherreceivable | LiaoningHanhuiIndustrialCo.,Ltd. | 200,000,000.00 | |||
| Othernon-currentassets | BeijingOffcnFutureEducationTechnologyCo.,Ltd. | 1,618,391,145.38 | |||
| Total | 1,624,066,345.38 | 205,675,200.00 | |||
7.2Accountspayable
| Item | Relatedparty | Closingbalance | openingbalance |
| Accountpayable | BeijingChuangshengConstructionDecorationEngineeringCo.,Ltd. | 59,506,981.00 | 48,358,391.00 |
| Accountpayable | ShaanxiGuanchengIndustrialCo.,Ltd. | 83,060,000.00 | 83,060,000.00 |
| Otheraccountpayable | Ji'anJingkaiLixiangxueFinancialInformationServiceCo.,Ltd. | 57,000,000.00 | |
| Total | 199,566,981.00 | 131,418,391.00 |
8.RelatedpartycommitmentsNone.
9.OtherNone.
SetionXIII.Share-basedPayment
1.Overviewofshare-basedpaymentNone.
2.Equity-settledsharepaymentsNone.
3.TheStockpaymentsettledbycash
None.
4.ModificationandterminationofthestockpaymentNone.
5.OtherNone.SetionXIV.CommitmentAndContingency
1.ImportantcommitmentNone.
2.ContingencyNone.
3.OtherNone.SetionXV.EventsAfterBalanceSheetDate
1.SignificantunadjustedeventsNone.
2.ProfitdistributionNone.
3.SalesreturnNone.
4.OtheradjustmenteventsafterbalancesheetdateNone.SetionXVI.OtherSignificantEvents
1.DebtRestructuringNone.
2.Assetsexchange
None.
3.AnnuityplanNone.
4.Discontinuedoperations;None.
5.Segmentinformation
5.1ReportsegmentdeterminingandaccountingpolicyThecompany'smainproductionandoperationactivitiesaredecidedbythecompany,whichismainlyengagedineducationandtrainingbusiness.Therefore,thecompanyismanagedasanoperatingsegment.Foraccountingpolicies,pleaserefertoNoteIIItothisreport,"TheCompany’sSignificantAccountingPoliciesAndAccountingEstimates”.”.
5.2Otherinformation
5.2.1Revenuefromexternaltransactionsforeachproductandserviceoreachsimilarproductandservice.
Item
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Mainbusiness | 6,860,282,371.30 | 11,138,901,718.71 |
| Including：Educationandtraining | 6,860,282,371.30 | 11,138,901,718.71 |
| Otherbusiness | 51,440,960.49 | 63,592,576.33 |
| Total | 6,911,723,331.79 | 11,202,494,295.04 |
5.2.2Thetotalamountofforeigntransactionincomeobtainedbytheenterprisefromitsowncountryandfromothercountriesorregions.
| Areaname | Amountforthecurrentperiod | Amountforthepriorperiod |
| Domesticarea | 6,911,723,331.79 | 11,202,494,295.04 |
| Total | 6,911,723,331.79 | 11,202,494,295.04 |
5.2.3Theextentofdependentonitsmajorcustomers.
Thecompany'scustomersarerelativelyscattered,consistingofalargenumberofcustomers,andthereisnodependenceonmajorcustomers.
6.Borrowingcosts
Thecompanyhasnocapitalizedborrowingcostsduringthereportingperiod.
7.Foreigncurrencytranslation
None.
8.Lease
8.1Lessor
8.1.1Financialleasing.None.
8.1.2OperatingleaseAssetsleasedoutunderoperatingleases:
Item
| Item | Closingbalance | Openingbalance |
| Buildings | 310,663,290.95 | 319,663,553.88 |
| Landuserights | 334,273,250.51 | 348,350,961.94 |
| Total | 644,936,541.46 | 668,014,515.82 |
Item
| Item | Amount |
| I.Incomesituation | 19,285,714.29 |
| Leaseincome | 19,285,714.29 |
| Incomerelatedtovariableleasepaymentsnotincludedinleaseincome | |
| II.Leaseincomenotturnedintocashforfiveconsecutivefiscalyearsafterthebalancesheetdate | 40,125,000.00 |
| Year1 | 40,125,000.00 |
| Year2 | |
| Year3 | |
| Year4 | |
| Year5 | |
| III.Leaseincomereceivedforremainingyearsthatisnotturnedintocash | 40,125,000.00 |
| Within1year(inclusive) | 40,125,000.00 |
| 1-2years(inclusive) | |
| 2-3years(inclusive) | |
| Over3years |
8.2Lessee
8.2.1Thelesseeshalldisclosethefollowinginformationrelatedtothelease
Item
| Item | Amount |
| Interestexpenseonleaseliability | 81,571,707.31 |
| Short-termleaseexpensesincludedincurrentprofitandloss | |
| Low-valueassetleasingexpenseincludedincurrentprofitandloss | |
| Variableleasepaymentsnotincludedinthemeasurementoftheleaseliability | |
| Incomederivedfromsubleaseofright-of-useassets | |
| Totalcashoutflowrelatedtolease | 606,571,985.34 |
| Gainsandlossesarisingfromsaleandleasebacktransactions |
8.2.2Lesseesshoulddiscloseotherqualitativeandquantitativeinformationaboutleasingactivitiesasrequiredbyfinancialstatements
None.
9.Othersignificanttransactionsandmattersthatmayaffectinvestors'decisionmaking
None.
10.Other
None.
SetionXVII.NotesOfMainItemsIntheFinancialStatementsoftheCompanyastheParent
1.Accountsreceivable
1.1Disclosurebyaging
| Item | Closingbalance | Openingbalance |
| Within1year(inclusive) | 15,570,863.42 | 15,570,863.56 |
| 1-2years(inclusive) | 15,570,863.56 | |
| Less:Provisionforbaddebts | 2,335,629.53 | 778,543.18 |
| Total | 28,806,097.45 | 14,792,320.38 |
1.2Disclosurebybaddebtaccrualmethod
| Item | Closingbalance | ||
| Bookbalance | Baddebt | Bookvalue | |
Amount
| Amount | Percentage（%） | Amount | Percentageofprovision(%) | ||
| Accountsreceivablewithacollectivebaddebtprovision | 31,141,726.98 | 100.00 | 2,335,629.53 | 7.50 | 28,806,097.45 |
| Combination3 | 31,141,726.98 | 100.00 | 2,335,629.53 | 7.50 | 28,806,097.45 |
| Total | 31,141,726.98 | 100.00 | 2,335,629.53 | -- | 28,806,097.45 |
Continued：
| Item | Openingbalance | ||||
| Bookbalance | Baddebt | Bookvalue | |||
| Amount | Percentage（%） | Amount | Percentageofprovision(%) | ||
| Accountsreceivablewithacollectivebaddebtprovision | 15,570,863.56 | 100.00 | 778,543.18 | 5.00 | 14,792,320.38 |
| 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 |
Collectivebaddebtprovision:
| Item | Closingbalance | ||
| Accountsreceivables | Baddebtprovision | Percentageofprovision | |
| Combination3 | 31,141,726.98 | 2,335,629.53 | 7.50 |
| Total | 31,141,726.98 | 2,335,629.53 | -- |
1.3Baddebtprovisioninthecurrentperiod:
| Item | Openingbalance | Amountofchangeinthecurrentperiod | Closingbalance | |||
| Provision | Recoveryorreversal | Write-off | Others | |||
| Baddebtprovisionforaccountsreceivable | 778,543.18 | 1,557,086.35 | 2,335,629.53 | |||
| Total | 778,543.18 | 1,557,086.35 | 2,335,629.53 | |||
1.4Topfivedebtorswiththebiggestendingbalancesofaccountsreceivable
Name
| Name | Nature | Closingbalance | Provision | Age | Percentageoftotalaccountsreceivable(%) |
| YaxiaIndustrial | Lease | 31,141,726.98 | 2,335,629.53 | within2years | 100.00 |
| Total | 31,141,726.98 | 2,335,629.53 | 100.00 |
2.Otherreceivables
2.1Classifiedlisting
| Item | Closingbalance | Openingbalance |
| Otherreceivables | 20,699,731.33 | 621,900,443.29 |
| Total | 20,699,731.33 | 621,900,443.29 |
2.2Otherreceivables
2.2.1Disclosurebyaging
| Aging | Closingbalance | Openingbalance |
| Within1year(inclusive) | 1,758,288.04 | 603,950,922.30 |
| 1-2years(inclusive) | 991,922.30 | 17,949,520.99 |
| 2-3years(inclusive) | 17,949,520.99 | |
| Less:Provisionforbaddebts | ||
| Total | 20,699,731.33 | 621,900,443.29 |
2.3.2Otherreceivablesbynatureofthepayment
| Item | Closingbalance | Openingbalance |
| Currentaccount | 20,694,131.33 | 621,894,843.29 |
| Depositsandguarantees | 5,600.00 | 5,600.00 |
| Total | 20,699,731.33 | 621,900,443.29 |
2.3.3WithdrawingprocessofbaddebtprovisionNone.
2.3.4Top5otherreceivableattheendoftheperiod
Creditor
| Creditor | Natureofpayment | Closingbalance | Aging | Percentageoftotalotherreceivables(%) | Baddebtprovision |
| BozhouYaxiaMotorVehicleDriverTrainingSchoolCo.,Ltd | Currentaccount | 10,413,457.84 | within3years | 50.31 | |
| WuhuYaweiAutomobileSalesandServiceCo.,Ltd | Currentaccount | 3,790,228.27 | within3years | 18.31 | |
| SuzhouBokaiAutomobileSalesandServiceCo.,Ltd | Currentaccount | 3,772,453.42 | within3years | 18.22 | |
| HuangshanAsiaXiaFudiAutomobileSalesandServiceCo.,Ltd | Currentaccount | 2,031,405.31 | within3years | 9.81 | |
| ChaohuYazhouKaixuanAutomobileSalesandServiceCo.,Ltd | Currentaccount | 459,974.46 | within3years | 2.22 | |
| Total | 20,467,519.30 | 98.87 |
3.Long-termequityinvestments
| Item | Closingbalance | Openingbalance | ||||
| Bookbalance | Impairmentprovision | Bookvalue | Bookbalance | Impairmentprovision | Bookvalue | |
| Investmentinsubsidiaries | 19,143,591,207.14 | 19,143,591,207.14 | 18,582,307,907.14 | 18,582,307,907.14 | ||
| Investmentforassociatesandjointventure | 46,824,788.00 | 46,824,788.00 | ||||
| Total | 19,190,415,995.14 | 19,190,415,995.14 | 18,582,307,907.14 | 18,582,307,907.14 | ||
3.1Investmentinsubsidiaries
| Investee | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairment | Impairmentreserveclosingbalance |
| ZhongGonglimited | 18,500,000,000.00 | 18,500,000,000.00 | ||||
| Lu'anZhongkeRealEstateInformationConsultingCo.,Ltd | 489,131,700.00 | 489,131,700.00 |
Investee
| Investee | Openingbalance | Increase | Decrease | Closingbalance | Provisionforimpairment | Impairmentreserveclosingbalance |
| Lu'anYazhongRealEstateInformationConsultingCo.,LTD | 72,151,600.00 | 72,151,600.00 | ||||
| WuhuYaweiAutomobileSalesandServiceCo.,Ltd | 23,000,000.00 | 23,000,000.00 | ||||
| NingguoCityYaxiaMotorVehicleDriverTrainingSchool | 17,474,782.14 | 17,474,782.14 | ||||
| HuangshanAsiaXiaFudiAutomobileSalesandServiceCo.,Ltd | 5,000,000.00 | 5,000,000.00 | ||||
| ChaohuYazhouKaixuanAutomobileSalesandServiceCo.,Ltd | 5,000,000.00 | 5,000,000.00 | ||||
| BozhouYaxiaMotorVehicleDriverTrainingSchoolCo.,Ltd | 20,000,000.00 | 20,000,000.00 | ||||
| SuzhouBokaiAutomobileSalesandServiceCo.,Ltd | 11,833,125.00 | 11,833,125.00 | ||||
| Total | 18,582,307,907.14 | 561,283,300.00 | 19,143,591,207.14 |
3.2Investmentinassociatesandjointventures
Theinvested
entity
| Theinvestedentity | Openingbalance | Changesfortheyear | Closingbalance | Closingbalanceofprovisionforimpairment | |||||||
| Increase | Decrease | Investmentprofitunderequitymethod | Othercomprehensiveincomeadjustment | Otherequitychange | Cashdividendsorprofitsannouncedofissuance | Provisionforimpairment | Others | ||||
| II.Associates | |||||||||||
| BeijingZhongwangFutureEducationTechnologyCo.,Ltd | 100,000,000.00 | 51,000,000.00 | -2,174,511.83 | -700.17 | 46,824,788.00 | ||||||
| Total | 100,000,000.00 | 51,000,000.00 | -2,174,511.83 | -700.17 | 46,824,788.00 | ||||||
4.Sharecapital
Item
| Item | Openingbalance | Changesinthecurrentperiod（+、-） | Closingbalance | ||||
| Issuenewshares | Bonusshare | Providentfundtransfertosharecapital | other | Total | |||
| 1.Shareswithlimitedsaleconditions | 5,419,759,990.00 | -854,983,969.00 | -854,983,969.00 | 4,564,776,021.00 | |||
| 1.1.Otherdomesticshares | 5,419,759,990.00 | -854,983,969.00 | -854,983,969.00 | 4,564,776,021.00 | |||
| Inc:Domesticlegalpersonshares | 534,706,341.00 | -534,706,341.00 | -534,706,341.00 | ||||
| Domesticnaturalpersonholdings | 4,885,053,649.00 | -320,277,628.00 | -320,277,628.00 | 4,564,776,021.00 | |||
| 2.Sharesincirculationwithoutrestrictionsonsale | 747,639,399.00 | 854,983,969.00 | 854,983,969.00 | 1,602,623,368.00 | |||
| commonstock | 747,639,399.00 | 854,983,969.00 | 854,983,969.00 | 1,602,623,368.00 | |||
| Total | 6,167,399,389.00 | 6,167,399,389.00 | |||||
5.Operatingincomeandoperatingcosts
| Item | Amountforthecurrentperiod | Amountforthepriorperiod | ||
| Operatingincome | Operatingcosts | Operatingincome | Operatingcosts | |
| Otherbusinesses | 14,831,488.06 | 11,230,514.83 | 14,829,393.86 | 11,336,628.27 |
| Total | 14,831,488.06 | 11,230,514.83 | 14,829,393.86 | 11,336,628.27 |
6.Investmentincome
| Item | Amountforthecurrentperiod | Amountforthepriorperiod |
| Dividendincomeobtainedduringtheholdingperiodofotherequityinstrumentinvestments | 1,327,872.00 | 249,600.00 |
| Long-termequityinvestmentsincomeunderequitymethod | -2,174,511.83 | |
| InvestmentincomefromFinancialproduct | 10,466.92 | |
| Total | -836,172.91 | 249,600.00 |
SetionXVIII.SupplementaryInformation
1.PursuanttotheExplanatoryAnnouncementforInformationDiscliosureofCompaniesOfferingSecuritiestothePublicNo.1-Non-recurringProfitandLossissuedbyChinaSecuritiesRegulatoryCommision,non-recurringprofitandlossasfollows.Breakdownofnon-recurringprofitandlossduringthereportingperiod
Breakdownofnon-recurringprofitandloss
| Breakdownofnon-recurringprofitandloss | Amount | Description |
| （1）Profitandlossondisposalofnoncurrentassets | -136,455.49 | |
| （2）Taxrefunds,reductionsorexemptionswithoutapprovalorwithoutformalapprovaldocuments | ||
| （3）Governmentsubsidiesincludedinthecurrentprofitandloss(closelyrelatedtothebusinessoftheenterprise,exceptforgovernmentsubsidiesthatarefixedorquantifiedinaccordancewithnationalunifiedstandards) | 27,496,339.83 | |
| （4）Capitaloccupationfeeschargedtonon-financialenterprisesincludedinthecurrentprofitandloss | ||
| （5）Thecompanycanobtainthedifferenceswhentheinvestmentcostofanenterprise'sacquisitionofsubsidiaries,associatesandjointventuresislessthantheincomederivedfromthefairvalueoftheidentifiablenetassetsoftheinvestee. | ||
| （6）Non-monetaryassetexchangegainsandlosses | ||
| （7）Profitorlossfromentrustingotherstoinvestormanageassets | 56,955,660.58 | |
| （8）Impairmentsforassetsduetoforcemajeurefactors,suchasnaturaldisasters | ||
| （9）Debtrestructuringgainsandlosses | ||
| （10）Enterpriserestructuringcosts,suchasexpensesforrelocatingemployees,integrationcosts,etc. | ||
| （11）Gainsandlossesinexcessoffairvalueresultingfromtransactionswherethetransactionpricewassignificantlyunfair | ||
| （12）Netprofitorlossfortheperiodfromthebeginningofthesubsidiarytothebusinesscombinationdateresultingfromabusinesscombinationunderthesamecontrol. | ||
| （13）Gainsandlossesfromcontingenciesunrelatedtothecompany'snormalbusinessoperations | ||
| （14）Inadditiontotheeffectivehedgingbusinessrelatedtothecompany'snormalbusinessoperations,theholdingoffinancialassetsheldfortrading,derivativefinancialassets,financialliabilitiesheldfortrading,andchangesinfairvaluearisingfromderivativefinancialliabilities,anddisposaloffinancialassetsheldfortrading,derivativefinanceinvestmentincomefromassets,financialliabilitiesheldfortrading,derivativefinancialliabilitiesandotherdebtinvestments | -21,490,322.52 | |
| （15）Receivablesandcontractassetimpairmentreservesthatareindividuallytestedforimpairmentarereversed. |
Breakdownofnon-recurringprofitandloss
| Breakdownofnon-recurringprofitandloss | Amount | Description |
| （16）Gainsandlossesfromexternalentrustedloans | ||
| （17）Gainsandlossesfromchangesinthefairvalueofinvestmentrealestatethataresubsequentlymeasuredatthefairvaluemodel | ||
| （18）Theimpactonthecurrentprofitandlossshouldbeadjustedinonetimeinaccordancewiththerequirementsoftaxandaccountinglaws | ||
| （19）Custodyfeeincomefromentrustedoperations | 226,415.10 | , |
| （20）Non-operatingincomeandexpensesotherthantheabove | 16,837,313.42 | |
| （21）Otherprofitandlossitemsthatmeetthedefinitionofnon-recurringprofitandloss | 60,675,060.38 | |
| Totalnon-recurringprofitandloss | 140,564,011.30 | |
| Less：Amountofincometaximpact | 24,442,598.26 | |
| Non-recurringprofitandlossafterdeductingincometaxeffects | 116,121,413.04 | |
| Inc：Non-recurringprofitandlossattributabletoownersoftheparentcompany | 116,121,413.04 | |
| Non-recurringprofitandlossattributabletominorityshareholders |
Note:Otherprofitandlossitemsthatmeetthedefinitionofnon-recurringgainsandlossesaremainly:
Accordingtothe"AnnouncementonSupportingTaxPoliciesforthePreventionandControlofthePneumoniaEpidemicofNovelCoronavirusInfection"(AnnouncementNo.8,2020oftheMinistryofFinanceandTaxationAdministration),thevalue-addedtaxexemptedfromRMB60,293,558.79,accordingtothe"AnnouncementonDeepeningtheRelevantPoliciesofValue-AddedTaxReform""(AnnouncementNo.39,2019)oftheMinistryofFinance,theStateAdministrationofTaxationandtheGeneralAdministrationofCustoms)TheadditionalinputtaxdeductionisRMB355,925.19.Afterthelossofcontrol,theremainingequityisre-measuredatfairvaluewithagainofRMB25,576.40.
2.Returnonequityandearningspershare
| Profitforthereportingperiod | Weightedaveragereturnonnetassets(%) | Earningspershare | |
| Basicearningspershare | Dilutedearningspershare | ||
| Netprofitattributabletoordinaryshareholdersofthecompany | -76.88 | -0.38 | -0.38 |
| Netprofitattributabletoordinaryshareholdersofthecompanyafterdeductingnon-recurringgainsandlosses | -80.65 | -0.40 | -0.40 |