OFFCN EDUCATION TECHNOLOGY CO., LTD.
2021 Semi-Annual Report
Stock Code: 002607
Stock Abbr.: OFFCN EDU
August, 2021
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 1 Important Notes, Contents and Definitions
The Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior management
hereby guarantee that the contents of the annual report are true, accurate, and complete, and that there are no
misrepresentations, misleading statements, or material omissions, and shall assume individual and joint legal
liabilities.
Wang Zhendong, the Company’s legal representative, Shi Lei, head in charge of accounting and Luo Xue, head of
the accounting department (Accounting supervisor), declare that they warrant the truthfulness, accuracy and
completeness of the financial report in the annual report.
All directors attended the board meeting for reviewing this report.
The forward-looking statements on future plans and development strategies involved in this report do not
constitute a substantial commitment to investors. The possible risks have been detailed in Chapter 3 “Management
Discussion and Analysis ” of this report. Please pay attention to the potential investment risks.
The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by converting
capital reserve.
The Company’s 2021 Semi-Annual Report is prepared and published in Chinese version, and the English
version is for reference only. Should there be any inconsistency between the Chinese version and English
version, the Chinese version shall prevail.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Contents
Chapter 1 Important Notes, Contents and Definitions................................................................ 2
Chapter 2 Corporate Profile & Key Financial Indicators........................................................... 7
Chapter 3 Management Discussion and Analysis.......................................................................10
Chapter 4 Corporate Governance................................................................................................30
Chapter 5 Environmental and social responsibilities.................................................................31
Chapter 6 Significant Events........................................................................................................ 32
Chapter 7 Share Changes and Shareholders.............................................................................. 54
Chapter 8 Preferred Shares.......................................................................................................... 60
Chapter 9 Corporate Bonds..........................................................................................................61
Chapter 10 Financial Statements................................................................................................. 62
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Documents Available for Reference
I. The full text of 2021 Semi-Annual Report signed by Wang Zhendong, the Company’s legal representative.
II. The financial statement signed and sealed by the legal representative of the Company, the person in charge of
accounting work and the person in charge of accounting department (accounting supervisor).
III. The original copies of all the documents of the Company which have been disclosed in newspapers designated
by the China Securities Regulatory Commission during the reporting period.
IV. Other relevant documents.
The place where the above-mentioned documents are maintained: the office of the Company’s Secretary of the
Board of Directors.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Definitions
Term(s) Definition
The listed Company, The Company,
Offcn Education Technology Co., Ltd.
Offcn Edu
The Counterparty, Li Yongxin and Lu Zhongfang, Li Yongxin, Wang Zhendong, Aerospace Industry, Guangyin Venture, Kerui
other 10 Counterparties, All Technology Innovation, Guo Shihong, Liu Bin, Zhang Yongsheng, Yang Shaofeng, Zhang
Shareholders of Offcn Ltd. Zhi’an
Base on the assessment, Yaxia Auto takes all assets and liabilities other than retained assets
as the exchange-out assets to swap the equivalent portion of 100% equity of Offcn which
held by Li Yongxin and other 10 counterparties, and the swapping deficiency is settled by
This major assets restructuring, issuance of Yaxia Auto shares according to the proportion of shareholding. At the same time,
This transaction, Yaxia Industrial transfers 80,000,000 and 72,696,561 Yaxia Auto shares to Offcn Partnership
This restructuring and Li Yongxin respectively. All shareholders of Offcn entrust Yaxia Auto to directly deliver
the exchange-out assets to Yaxia Industrial or its designated third party as the consideration
for the transfer of 80,000,000 shares to Offcn Partnership, and Li Yongxin offers RMB1
billion in cash as the consideration for the transfer of 72,696,561 shares.
Aerospace Industry Beijing Aerospace Industry Investment Fund (Limited Partnership)
Guangyin Venture Beijing Guangyin Venture Capital Center (Limited Partnership)
Kerui Technology Innovation Beijing Kerui Technology Innovation Investment Center (Limited Partnership)
Beijing Offcn Future Information Consulting Center (Limited Partnership), established by
Offcn Partnership all shareholders of Offcn Ltd. in accordance with the shareholdings ratio, which is used to
undertake 80,000,000 shares of the listed Company transferred by Yaxia Industrial.
Offcn Online Beijing Offcn Online Education Technology Co., Ltd.
Performance Compensation Obligor, Lu Zhongfang, Li Yongxin, Wang Zhendong, Guo Shihong, Liu Bin, Zhang Yongsheng,
Performance Commitment Person Yang Shaofeng, Zhang Zhi’an
Yaxia Industrial Anhui Yaxia Industrial Co., Ltd.（the original controlling shareholder of the listed Company）
Committed net profit attributable to shareholders of the parent company after deducting non-
Committed net profit recurring profits and losses under the consolidated statement of any of the three fiscal years
of Offcn Edu.
The actual net profits attributable to shareholders of the parent company after deducting
Actual net profits non-recurring profits and losses under the consolidated statements of any of the three fiscal
years of Offcn Edu.
Net profits after deducting The net profits attributable to the owner of the parent company after deducting non-recurring
non-recurring profits and losses profits and losses under the consolidated statement.
Offcn Ltd.
Beijing Offcn Education Technology Co., Ltd. (predecessor: Beijing Offcn Education
Predecessor of Beijing Offcn
Technology Stock Co., Ltd.)
Beijing Offcn
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Term(s) Definition
Profit Forecast Compensation Agreement signed by Yaxia Auto and Lu Zhongfang, Li
Profit Forecast Compensation
Yongxin, Wang Zhendong, Guo Shihong, Liu Bin, Zhang Yongsheng, Yang Shaofeng,
Agreement
Zhang Zhi’an.
CSRC China Securities Regulatory Commission
Company Law Company Law of the People’s Republic of China
Securities Law Securities Law of the People’s Republic of China
Articles of Corporation Articles of Corporation of Offcn Education Technology Co., Ltd.
Yuan, 10 thousand yuan, 100 million
RMB yuan, RMB 10 thousand yuan, RMB 100 million yuan
yuan
The Accounting Standards for Business Enterprises No. 21 — Lease issued by the Ministry
The New lease Standard
of Finance in 2018
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 2 Corporate Profile & Key Financial Indicators
Section I. Corporate profile
Stock Abbreviation OFFCN EDU Stock Code 002607
Changed Stock Abbreviation (if any) /
Listed Stock Exchange Shenzhen Stock Exchange
Chinese Name of the Company 中公教育科技股份有限公司
Chinese Name Abbreviation of the Company 中公教育
English Name of the Company (if any) Offcn Education Technology Co., Ltd.
English Name Abbreviation of the Company (if any) OFFCN EDU
Legal Representative of the Company Wang Zhendong
Section II. Contact information
Board Secretary Securities Affairs Representative
Name Gui Hongzhi Gu Pan
Block B, Hanhua Century Mansion, No.23 Xueqing Road, Block B, Hanhua Century Mansion, No.23 Xueqing
Address
Haidian District, Beijing, China Road, Haidian District, Beijing, China
Tel. 010-83433677 010-83433677
Fax 010-83433666 010-83433666
E-mail ir@offcn.com ir@offcn.com
Section III. Other information
1. Company contact information
Whether the Company’s registered address, office address and its postal code, website and/or email address
changed during the reporting period
□ Applicable √ Not applicable
The Company’s registered address, office address and its postal code, website and email address remain the same
during this reporting period. Details can be found in 2020Annual Report.
2. Location of information disclosure and storage
Whether location of information disclosure and storage changed during the reporting period
□ Applicable √ Not applicable
The newspaper designated by the Company for information disclosure, website designated by CSRC for
semi-annual report publishing, and storage location of this semi-annual report remain the same during the
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
reporting period. Details can be found in 2020 Annual Report.
Section IV. Key accounting information and financial indicators
Does the Company need to adjust its financial information retrospectively or restate its accounting information of
previous year?
□ Yes √ No
Increase/decrease in current reporting
Current reporting Same period of the
period over same period of the
period previous year
previous year
Revenue (RMB) 4,855,998,263.50 2,807,980,480.60 72.94%
Net profit attributable to shareholders of the
-97,162,509.03 -233,026,645.16 58.30%
listed Company (RMB)
Net profit attributable to shareholders of the
listed Company after deducting -169,905,023.78 -367,542,382.83 53.77%
non-recurring gains or losses (RMB)
Net cash flow from operating activities
-939,091,457.95 4,063,675,504.19 -123.11%
(RMB)
Basic earnings per share (RMB/share) -0.02 -0.04 50.00%
Diluted earnings per share (RMB/share) -0.02 -0.04 50.00%
Weighted average return on assets -2.30% -9.00% 6.70%
Increase/decrease at the end of this
End of current End of the previous
reporting period over end of the
reporting period year
previous year
Total assets (RMB) 14,170,766,300.30 14,418,850,027.27 -1.72%
Total net assets attributable to shareholders
4,177,965,284.17 4,275,127,793.20 -2.27%
of the listed Company (RMB)
Section V. Differences of accounting data under domestic and overseas accounting standards
1. Differences between net profits and net assets disclosed in the financial reports under Chinese accounting
standards and international accounting standards :
□ Applicable √ Not applicable
There is no difference between the net profits and net assets disclosed in the financial reports of the Company
under Chinese accounting standards and international accounting standards during the reporting period.
2. Differences between net profits and net assets disclosed in the financial reports under Chinese accounting
standards and overseas accounting standards:
□ Applicable √ Not applicable
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
There is no difference between the net profits and net assets disclosed in financial reports of the Company under
Chinese accounting standards and overseas accounting standards during the reporting period.
Section VI. Items with non-recurring gains or losses and the amounts
√ Applicable Not applicable
Unit:RMB
Items Amount Note
Disposal gains or losses of non-current assets (including the offset
-168,828.03
part of the provision for asset impairment)
Government subsidies included in the current gains and losses
(closely related to the business of the enterprise, except for
1,430,028.70
government subsidies that are fixed or quantified in accordance with
national unified standards)
Gains or losses from entrusting others to invest or manage assets 28,910,968.77
Gains and losses on changes in fair value arising from the possession
of transactional financial assets, derivative financial assets,
transactional financial liabilities, and derivative financial liabilities;
and the investment income from the disposal of transactional financial
9,068,865.15
assets, derivative financial assets, transactional financial liabilities,
derivative financial liabilities and other debt investments except the
effective hedging business related to the Company’s normal business
operations.
Other non-operating income and expenses except for the items above -311,355.41
Other gains or losses items that meet the definition of non-recurring
45,101,048.40
gains and losses
Less: Impact on income tax 11,288,212.83
Total 72,742,514.75 --
Provide explanations for classifying items of non-recurring gains and losses defined or listed in the Explanatory
Announcement No. 1 for Public Company Information Disclosures – Non-recurring Gains and Losses as items of
recurring gains and losses.
□ Applicable √ Not applicable
The Company does not classify any non-recurring gains and losses items that are defined or listed in the
Explanatory Announcement No. 1 for Public Company Information Disclosures – Non-recurring Gains and
Losses as items of recurring gains and losses during the reporting period.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 3 Management Discussion and Analysis
Section I. The Company’s main business during the reporting period
1. The main business, products and business model of the Company during the reporting period
Offcn Edu is a leading full-category vocational education institution in China, and it is also the pioneer and leader
in the field of public service recruitment examination training. the Company's main business covers three major
sectors including recruitment examination training, vocational and academic qualification preparation, and
vocational skills training. It provides more than 100 categories of comprehensive vocational training services.
Offcn Edu mainly serves knowledge-based employment population including college students, university
graduates, and various professionals, ranging from age 18 to 45. This huge group of hundreds of millions of
people is spread throughout the country, cities and towns at all levels and in all walks of life. Employment and
vocational ability improvement are their two core demands.
Currently, The Company operates in more than 1,800 outlets across the country, covering more than 300
prefecture-level cities, and is rapidly expanding into thousands of counties and universities. Offcn Edu has a
large-scale full-time R&D team of more than 3,000 people, a large-scale teacher team of more than 18,000 people,
and a total staff of more than 45,000 people. Relying on outstanding team execution and nationwide vertical
integration and rapid response capabilities, the Company has developed into an innovation-driven high-growth
enterprise platform.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
2.Overview of the industry and business environment
(1) Greater progress has been made in education equity, and the “14th Five-Year Plan” has established new
targets for investment in public services such as education and medical care.
Equity in Education has become the main tone of current education reform. With the return of basic education to
its nature of public products, this round of reforms will greatly promote the business expansion of training for
teacher recruitment and teacher qualification certificate examinations.
The “14th Five-Year Plan”requires education equality and quality to be greatly improved, higher education to be
popularized, and more than 60 million new jobs to be created in cities and towns. In addition, 20,000
kindergartens will be built, renovated and expanded in order to increase enrollments by over 4 million for ordinary
families. And more than 4,000 primary and secondary schools will be newly built, renovated and expanded.
In terms of medical and health care, on the one hand, it is necessary to expand disease prevention and control
bases and build national and regional medical centers. On the other hand, it is necessary to strive to upgrade 500
county-level hospitals to meet the facilities and service capabilities of top-tier hospitals.
In terms of elderly care services, 500 districts and counties will be supported in building model community-home
elderly care service network, about 300 training and convalescent institutions will be supported in transformation
into inclusive elderly care institutions, and more nursing beds will be provided for about 1,000 public elderly care
institutions.
In terms of childcare services, 150 cities will be supported to develop childcare services with social resource, and
more than 500,000 exemplary inclusive childcare enrollments will be added.
In summary, the “14th Five-Year Plan” will further accelerate investment in public services and further quantify
the indicators, which will strongly promote the sustainable growth of the recruitment sectors, especially teachers,
medical and community services.
(2) The pandemic has accelerated the elimination of industries, and large leading companies have further
promoted the demand growth.
For a long time, the vocational education industry has been filled with small and scattered companies and the
market competition is in chaos. On the one hand, the supply of cost-effective and high-quality education products
is severely insufficient, which depresses the educational demand, but on the other hand, there is a serious excess
of homogenized production capacity. Vicious competition is widespread. Only large enterprises can break through
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
the difficulties and obstacles caused by the extreme fragmentation of the market. Through sufficient investment in
core business such as teaching and research, channels, and management, brand-new and cost-effective products
can be created, and huge potential demand can be dug out. By expanding business into various sectors and
pushing each sector forward, a vocational education market field valued of tens of billions can be created.
(3) Main industry characteristics and cyclical characteristics
The industry of vocational education distributes vastly all over the country and demonstrates a significant
long-tail effect. The demand of vocational education distributes vastly in every province and every city,
especially in the prefecture-level cities and the counties. Almost every county has a vocational high school, and
every prefecture-level city has vocational colleges. The recruitment demand of public employers as well mainly
exists in prefecture-level cities and counties, which stimulates lots of local small training institutions and provides
a wide space for the large scale players to expand their network of marketing channels. Meanwhile, the
nationwide operation adds more difficulties to management on one hand, and lifts the barriers to competition on
the other hand.
The training for public services recruitment tests is seasonal. For students, the 1-2 years before or after
graduation are the key period to take training classes for the recruitment tests. The national civil servant test takes
place once a year, and the provincial examinations for each province basically take place once a year, while few
provinces will have another joint examination to recruit civil servants in the second half year. The recruitment of
public institution employees and teachers are carried out according to the needs of the provinces and cities, which
are distributed in each month throughout the year uncertainly. The documents of recruitment plan are of a great
amount.
This seasonal fluctuation of recruitment has caused major growth bottlenecks for small and medium-sized training
companies and has also provided large institutes with continuous motivation to constantly challenge the scale
boundary. With the rapid increase in examination categories and business sectors, large enterprises will
increasingly enjoy the results of scale effects and obtain a more sound resource allocation structure. In recent
years, the momentum of recruitment examinations has switched to new areas such as public institutions, teachers
and comprehensive recruitment, bringing the rapid concentration of market share into leading enterprises.
(4) Trends of the industry’s future development
1) The status of vocational education in education system is increasing.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
For a long time, China’s education system has been dominated by curricula education and the foundation of
vocational education is relatively weak. There is a serious shortage of high-end skilled talents supply and in the
future, the need for more “skilled craftsmen” and “great builders” will remain urgent.
In recent years, China’s industrial structure is undergoing transformation and upgrading. The government has
clearly proposed that great efforts will be made to promote the development of emerging industries with strategic
importance, and the proportion of modern service industry will be further increased. With rapid changes in the
industrial structure, the requirements from enterprises for the professional competence and comprehensive quality
of technical personnel have gradually increased. New requirements for their practical ability have also been put
forward. Traditional academic education can’t fully meet the new requirements.
Besides, the government continues to enhance the efforts to develop vocational education. In addition to the
pertinent documents, such as Decision of the State Council on Making Great Efforts to Develop Vocational
Education published in 2005, and National Plan for Vocational Education Reform and China’s Education
Modernization Plan 2035 published in 2019, the 2021 National Vocational Education Conference further
emphasized that vocational education has a bright future and promising prospects in the new journey of building a
modern socialist country in all respects, and put in an explicit request for accelerating the construction of a
modern vocational education system, and cultivating more high-caliber technical and skilled professionals, thus
promoting the status of vocational education in the whole education system from both the policy and institutional
levels.
2)The continuous increase in the number of college graduates is an important indicator of the employment
situation.
Usually, a faster growing economy will bring a higher level of employment. In recent years, economic growth has
slowed down, but the number of university graduates has continued to grow. It will reach 9.09 million this year,
setting a new historical record.
College graduates account for more than half of the annual demand of over 15 million new jobs, and the bonus
period for the export of cheap rural labor has come to an end. The expansion of university enrollment has
obviously and directly accelerated the arrival of the turning point. The labor shortage of farmer laborers coexists
with the difficult employment of college graduates. The demand for training for public service recruitment
examination continues to rise.
In addition, aiming to maintain sustained economic growth, realize transformation and upgrading, and overcome
the “middle-income trap”, it is urgently necessary to carry out industrial upgrading of middle and high-end
vocational education in order to improve the vocational skills and professional literacy of knowledge-based
employees.
3) The serious shortage of high-quality supply is the main contradiction that restricts the development of
the vocational education industry.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
At present, the foundation of vocational education is still weak. Due to the extremely low concentration of the
industry and the limited number of large vocational education institutes and enterprises, the supply of high-quality
vocational education is seriously insufficient. With the improvement of industry concentration and the continuous
development of leading vocational education enterprises, core business elements such as R&D, management and
marketing of vocational education will gradually break through the original boundaries of the industry, create
high-quality and cost-effective supplies, drive demand-side volume with supply-side innovation and push the
industry into a new track of rapid development.
4) The urbanization wave will promote the continuous improvement of public service and the number of
employees of the public service sector will continue to expand.
The process of urbanization is a key driver of the long-term impact on China’s employment market growth. At
present, the urbanization rate has exceeded 60%. Urbanization will expand the public financial expenditure and
the number of employees in the public service sector. China’s urbanization rate remains in a high-speed growth
range of 30% to 70%. It is likely to continue to develop for nearly 20 years to achieve an urbanization rate of
more than 80% in developed countries. Meanwhile, continuous urbanization may also lead to more seriously
inadequate public service supply in cities, which will also impose higher requirements on the quality of public
services.
Compared with public products such as infrastructure, public services are labor-intensive inputs, especially the
basic public services of local governments. It hires a huge number of employees while improving public service
capabilities. China’s long-term goal for 2035 and the main goal of economic and social development during the
“14th Five-Year Plan” period require a significant increase in the level of equalization of public services.
According to the research by the National Academy of Governance, the employed population in the public sector
in developed countries accounts for about 10% to 20% of the workforce,, which is even higher than 20% in
Canada and Hong Kong. However, the employed population in the current public sector only accounts for 5% in
China.
With the deepening of urbanization, the proportion of employed population in China’s public sector will gradually
increase; and the market of training for public service recruitment examination will also maintain a long-term
steady growth, which has been partially proved by the astonishing demands on the training for teacher recruitment
examination and recruitment examination in medical treatment and public health.
3. Main performance driving factors
During this reporting period, to achieve the annual business goals, the Company expands the market proactively
and increases its market share constantly, generating a total operating income of RMB 4,855,998,263.50, with an
increase of 72.94% over the same period of last year. However, influenced by the earlier pandemic, the changed
situation of market competition and other external factors, as well as the rising cost from the Company’s
forward-looking strategic investment, the Company experienced its periodical losses. The net profit attributable to
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
shareholders of the listed Company is RMB -97,162,509.03, with a year-on-year decrease of 58.30%; the net
profit attributable to shareholders of the listed Company after deducting non-recurring gains and losses is RMB
-169,905,023.78, with a year-on-year decrease of 53.77%. With the steadily increasing scale of operation, the
input-output effect exerted by the Company’s forward-looking core resource will become an important
development pillar in the next stage, and the production capacity will be released gradually.
（1）The ahead-of-schedule multi-provinces joint examination shortens the period of collecting training fees
and the recruiting pace is returning to normal gradually.
During the reporting period, the ahead-of-schedule multi-provinces joint examination of the civil servant has
shortened the peak period of collecting training fees, which influenced the performance of the sector for civil
servant recruitment exams to some degree. The sector generated the revenue of RMB 2,314,794,227.86, an
increase of 90.02% over the same period of last year and an increase of 12.31% over the same period in 2019. The
rising trend of recruiting demand for civil servants has been confirmed.
Meanwhile, the ahead-of-schedule multi-provinces joint examination of the civil servant has created favorable
conditions for the recruitment recovery of the training sectors for public institution exams, teachers recruitment
exams, medical qualification and etc., and these sectors got more investment of time and resource in their
operation. During the reporting period, by seizing that opportunity, using its leading advantage of multi-categories
and large-scale operation and actively innovating the products, the training sector for public institution exams
generated the revenue of RMB 618,725,582.65, a year-on-year increase of 148.37%; the training sector for
teachers recruitment exams generated the revenue of RMB 534,948,828.84 in the current reporting period, a
year-on-year increase of 52.82%; and the training sector for other public services test and new businesses
generated the revenue of RMB 1,360,062,898.84 in the current reporting period, a year-on-year increase of
40.10%.
The key operating resources and performance indicators are shown in the table below:
Change at the end of this
At the end of the reporting period
Item Indicators At the end of last year
reporting period compared with the end of
last year
Directly operated branches 1,859.00 1,669.00 11.38%
Operating Employees 45,304.00 45,066.00 0.53%
resources R&D personnels 3,065.00 3,025.00 1.32%
Teaching professionals 18,994.00 18,863.00 0.69%
At the end of the Year-on-year
Item Indicators Same period last year
reporting period change (%)
Business & Revenue of face-to-face training
3,120,444,415.18 1,622,095,227.36 92.37%
Revenues (RMB)
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Revenue of online training (RMB) 1,708,087,123.01 1,166,091,772.30 46.48%
Trainees 2,792,112.00 2,452,252.00 13.86%
Revenue (RMB) 4,855,998,263.50 2,807,980,480.60 72.94%
Net profits attributable to
shareholders of the listed -97,162,509.03 -233,026,645.16 58.30%
Company(RMB)
(2) Digital operation produces significant result and the online-merge-offline (OMO) business keeps
growing.
The Company keeps promoting the integration of digital operation and vertical integrated fast response system in
depth, and uses digital operation to increase the efficiency of fast response to further enhance the Company’s core
competitiveness based on speed economy. The continual and recurrent pandemic leads to further expansion of
digital operation. Through the intelligent teaching platform with huge potential, online large-scale R&D and
comprehensive service capacity, the Company endeavors to promote OMO products and keeps growing in the
tough business environment. During the reporting period, the online training business of the Company generated
revenue of RMB 1,708,087,123.01, a year-on-year increase of 46.48%.
(3) The forward-looking strategic layout is efficient and the new business sector releases production
capacity gradually.
From the second half of last year to the first half of this year, the Company is determined to expand operations
across sectors, invests intensive resources in active new businesses constantly, and especially puts
forward-looking strategic investment into important sectors including the training sectors for post-graduate
entrance examination, college and high institution enrollment exams and IT. During the reporting period, the
training sectors for post-graduate entrance examination, college and high institution enrollment exams and
medical qualification and other new business sectors maintains a high level of activeness, thus contributing to the
revenue of RMB 1,360,062,898.84 from the training sector , with a year-on-year increase of 40.10%.
With the growth and maturity of reserve talents, the Company’s new business sectors gradually release production
capacity, which promotes the performance of the pertinent sections in the current period and more importantly,
further sharpens the advantage of overall arrangement to make for the growth trend of sector rotation in the
medium and long term.
Section II. Analysis of the Company’s core competitiveness
The Company's core competitiveness is based on the formation of an enterprise platform which empowers rapid
growth driven by the capability of vertically integrated quick response. The key driving factors are as follows:
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
1. Outstanding execution fosters the fast-growth culture
The team built the Company with outstanding execution, and fostered the Company's fast-growth culture through
a long period of endeavoring to grow in adversity and persistently pursuing to break the growth boundary. The
team always maintains the firm will and belief to create the future, invests audaciously, achieves economies of
scale in a highly fragmented and regionally isolated market, strives to be close to the optimal output, captures
opportunities, and confronts fluctuations. With constant self-revolution of creative destruction, the team can
always create new markets in inconspicuous places, making sustained rapid growth possible.
2. Clustered professional R&D output continuously increases the momentum for innovation
At the beginning of the career, the Company took the lead in carrying out full-time and professional R&D, based
on which it created a brand-new market. Over the past decade, the Company has fostered an expert team with rich
practical experience of R&D and R&D management through front-line teaching practice and adaption to market
upgrading. Under the joint lead of the founding team and the expert team, a full-time R&D team of more than
3,000 people has formed. With the expansion of categories and the involvement of different sectors, the
Company's professional R&D not only achieves the continuous division of labor under the scale effect, but also
continuously creates R&D cluster effect of continuous collaboration between categories, which greatly improves
the efficiency of R&D, especially the graft efficiency of stock R&D resources for new categories and new
businesses.
3. Rapid response capability based on the vertical integrated system supports the Company’s sustainable
high growth structurally and efficiently.
The high operation efficiency far beyond the general industries is a necessity to realize scale economy and
establish competitive barrier in the decentralized market. Therefore, vertical integrated rapid response system and
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
capability can best adapt to this kind of market environment. In each exam, ‘Business outlets - Headquarters
command center - Teaching sites’ are giving responses and feedback with high frequency every day. Thus, the
effect of management and learning far above average can be realized.
Vertical integrated corporate structure can not only realize the high efficiency of operation, but also be effectively
compatible with the management impact brought by high growth and rapid business category expansion. So
investment in and innovation on this corporate structure has always been a central part of the management reform.
At present, Offcn Edu has established more than 1,800 business outlets covering 300 prefecture-level cities with
constantly accelerating expansion. Simultaneously, the headquarters command center continues to seek the scale
effect of management with the help of management reform and digital operation. In recent years, Offcn Edu has
also continuously invested in the construction of large-scale one-stop bases for food, housing and learning to
promote the realization of large-scale factory operation on the teaching sites.
4. “The flywheel effect of multi-categories growth” magnifies the Company’s growth prospects step by step
Investment capacities between multi-categories gets accumulated and superposed. The flywheel effect of
multi-categories growth constantly increases. The development of new and old categories mutually amplifies
investment adequacy. Together a stronger ability of operating infrastructure is jointly promoted.
The main business of the Company, whose customers include hundreds of millions of knowledge-based labor
population aged between 18 and 45 across the country, spans three sectors of training for public service
recruitment examination, college and high institution enrollment examination, and vocational ability enhancement.
to provide comprehensive vocational training services covering more than 100 categories.
At present, the flywheel effect of growth has expanded to involve the three sectors and magnified the Company’s
growth prospects step by step. The sector of training for college and high institution enrollment examination will
become an important impetus for growth in 3 to 5 years while the sector of training for vocational ability
enhancement will become the largest and the most significant contributor to the growth of the Company in 5 to 10
years.
5. Digital operation forms the enterprise platform with “real-time situational awareness”
The team’s exploration for digital operation has lasted for more than 15 years, and in recent years, the investment
scale for digital operation infrastructure has increased significantly. One reason is to meet the management needs
for fast growth and rapid expansion of categories. The other reason lies in the great adaptability of vertically
integrated fast response system to the digitization. After the system was integrated with the digitization in depth, it
generated higher operating efficiency and significantly improved the front and background response frequency
from units of days to a level close to “real-time situational awareness”, which greatly enhanced the Company’s
core competitiveness based on speed economy.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
6. The values of kindness and altruism allow the Company to maintain strong organizational cohesion in
high growth
As a knowledgeable staff-intensive vocational education institution, the Company has established a concise and
effective corporate culture in the long journey of arduous entrepreneurship, with the core value of “Be Kind & Do
Right” and advocating altruism. Not only has it become a company system, but also the founding team has taken
the lead to set an example, driven it step by step, and unswervingly implemented it in the operation, making the
values of Offcn Edu ubiquitous and flourishing in the enterprise. This distinctive and tangible corporate culture
allows the company to maintain strong organizational cohesion in high growth.
7. Offcn Edu strives to strengthen the Party's construction to promote the healthy and vigorous
development of the Company
From the establishment of the Party committee in 2018 to the establishment of the first Party school of
non-public-owned enterprise in 2019, the Party committee of Offcn Edu has fully utilized the Company’s
advantages of knowledge, theory, and technology and actively promotes and implements the Party’s political
routes, principles, and policies to employees and students. Meanwhile, Offcn Edu focuses on the integration of the
Party building of non-public enterprises and corporate culture construction to promote the healthy and vigorous
development of the enterprise.
As of June 30, 2021, the Company had 9,286 Party members, accounting for more than one-fifth of the total
number of employees.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Section Ⅲ. Core business analysis
Refer to “Section I.The Company’s main business during the reporting period”.
Year-on-year changes of major financial data
Unit: RMB
Year-on-year
Current Reporting Period Same period last year increase or Reasons of changes
decrease
Mainly due to the ending of the
pandemic in the second half of
2020, the continuous recovery of
the market and the gradual increase
Revenue 4,855,998,263.50 2,807,980,480.60 72.94%
of the business income because of
the regular conduction of various
examinations in the first half of
2021
Mainly due to the ending of the
pandemic, the gradual recovery of
Operating cost 2,684,951,238.24 1,452,611,180.39 84.84%
face-to-face training and the
increased teaching investment
Mainly due to the increase of staff
salary and marketing fee under the
Marketing expenses 975,972,472.83 700,817,453.92 39.26% influence of the resumption of
marketing activities and the
increase of market investment
Management expenses 607,894,812.80 518,959,454.14 17.14%
Mainly due to the increase in
short-term borrowing interest and
collection fees and the amortization
Financial expenses 257,804,336.41 182,654,623.66 41.14%
of unrecognized financing expenses
to financial expenses according to
the new lease standard
Mainly due to the recognition of
Income tax expenses 7,582.67 9,055,694.44 -99.92% deferred income tax expenses in the
previous period
Mainly due to the Company’s
R&D investment 542,875,812.43 383,227,531.01 41.66% expansion of R&D and increased
investment
Net cash flow of business Mainly due to the cost increase
-939,091,457.95 4,063,675,504.19 -123.11%
operation resulted from strategic investment
20
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
and the shortage of period of
collecting training fees from
multi-provinces joint examination
in the first half of year
Net cash flow of Mainly due to the increase of net
-857,536,416.32 -1,155,418,651.54 25.78%
investment inflow from financial management
Net cash flow of fund Mainly due to the distribution of
-593,198,529.67 -966,792,941.80 38.64%
raising dividends in the previous period
Mainly due to the increased cost of
investment in the reporting period,
the purchase of fixed assets and
Increase of cash and cash
-2,389,826,403.94 1,941,463,910.85 -223.09% intangible assets and the shortage
equivalents
of period of collecting training fees
from multi-provinces joint
examination in the first half of year
Whether components or origin of profits changed during the reporting period
□ Applicable √ Not applicable
Components or origin of profits did not change during the reporting period
Composition of revenue
Unit: RMB
This reporting period Same period last year
Year-on-year
Proportion of Proportion of
Amount Amount increase or decrease
revenue revenue
Revenue 4,855,998,263.50 100% 2,807,980,480.60 100% 72.94%
Sectors
Educational training 4,828,531,538.19 99.43% 2,788,186,999.66 99.30% 73.18%
Others 27,466,725.31 0.57% 19,793,480.94 0.70% 38.77%
Categories of product
Training for Civil Servant Test 2,314,794,227.86 47.66% 1,218,210,409.21 43.38% 90.02%
Training for Public Institution Test 618,725,582.65 12.74% 249,112,502.48 8.87% 148.37%
Training for Teachers’ Recruitment Test 534,948,828.84 11.02% 350,053,110.07 12.47% 52.82%
Training for other public services test
1,360,062,898.84 28.01% 970,810,977.90 34.58% 40.10%
and new businesses
Others 27,466,725.31 0.57% 19,793,480.94 0.70% 38.77%
Regions
Northeast China 733,517,217.12 15.10% 411,190,963.24 14.65% 78.39%
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
North China 890,311,431.14 18.33% 505,278,366.94 17.99% 76.20%
East China 1,172,672,546.07 24.15% 777,042,423.85 27.67% 50.91%
Middle China 559,497,519.24 11.52% 311,713,998.87 11.10% 79.49%
South China 379,585,003.57 7.82% 224,764,348.31 8.01% 68.88%
Southwest China 547,267,354.92 11.27% 286,608,910.60 10.21% 90.95%
Northwest China 545,680,466.13 11.24% 271,587,987.85 9.67% 100.92%
Others 27,466,725.31 0.57% 19,793,480.94 0.70% 38.77%
Particulars of sectors, products or regions that account for more than 10% of the revenue or operating income
□ Applicable √ Not applicable
Explanation on changes in the relevant data by more than 30% year-on-year
□ Applicable √ Not applicable
Section IV. Non-core Business Analysis
√ Applicable □ Not applicable
Unit: RMB
Amount Reasons Sustainable or Not
Mainly including income from financial
Investment Income 61,423,487.06 Yes
products, and interest on time deposits.
Gains and losses from changes in fair value 9,068,865.15 Changes in fair value of financial product Uncertain
Non-operating income 37,698.84 Formed during the operating process. Uncertain
Non-operating expenses 349,054.25 Formed during the operating process. Uncertain
Section V. Analysis of Assets and Liabilities
1. Major Changes in Asset Composition
Unit: RMB
End of the reporting period End of the same period last year
Increase or
Proportion
Proportion of decrease in Explanations on major changes
Amount of Total Amount
Total Assets proportion
Assets
Mainly due to the increased cost
of investment in the reporting
period, the purchase of intangible
Monetary fund 3,560,568,685.18 25.13% 5,950,395,089.12 41.27% -16.14% assets and the shortage of period
of collecting training fees from
multi-provinces joint examination
in the first half of year
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Accounts Mainly due to the increase of rent
32,423,539.80 0.23% 21,493,637.66 0.15% 0.08%
receivable receivables
Investment No major changes in the current
657,723,948.43 4.64% 668,014,515.82 4.63% 0.01%
properties period
Long-term equity No major changes in the current
1,580,386,983.37 11.15% 1,612,792,592.67 11.19% -0.04%
investment period
Please refer to Section VII. (22)
Construction in
256,986,886.10 1.81% 214,248,125.04 1.49% 0.32% in Chapter 10 Financial
progress
Statements
Mainly due to the increase of
right-of-use assets under the
Right-of-use asset 1,345,123,513.84 9.49% 9.49%
implement of the new lease
standard since January 1, 2021
Short-term No major changes in the current
3,875,201,272.25 27.35% 3,976,019,329.22 27.58% -0.23%
borrowings period
Mainly due to the shortage of
Contract collecting training fees from
4,228,504,433.91 29.84% 4,925,428,309.33 34.16% -4.32%
liabilities multi-provinces joint examination
in the first half of year
Mainly due to the increase of
lease liability under the
Lease liability 534,044,069.15 3.77% 3.77%
implementation of the new lease
standard since January 1, 2021
2.Key Overseas Assets
□ Applicable √ Not applicable
3. Assets and liabilities measured at fair value
√ Applicable □ Not applicable
Unit: RMB
Gains and losses
Cumulative Impairment Amount of Amount of
from the
Opening changes in fair accrued in purchase in sales in the Other Closing
Items changes in fair
Balance value attributed the current the current current Changes Balance
value during the
to equity period period period
period
Financial Assets
Transactional
financial assets 1,191,656 4,644,550,0 5,456,410,00 388,865,038
9,068,865.15 0.00 0.00
(excluding derivative ,173.26 00.00 0.00 .41
financial assets)
23
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Investment in other 152,800,0 152,800,000
equity instruments 00.00 .00
Subtotal of financial 1,344,456 4,644,550,0 5,456,410,00 541,665,038
9,068,865.15 0.00 0.00
assets ,173.26 00.00 0.00 .41
1,344,456 4,644,550,0 5,456,410,00 541,665,038
Total 9,068,865.15 0.00 0.00
,173.26 00.00 0.00 .41
Financial liabilities 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others changes
None.
Whether the Company’s major assets measurement attributes have significant changes during the reporting period
□ Yes √ No
4. Assets with restricted rights as of the end of the reporting period
Items Book value at the end of the period Reasons for Restriction
Monetary fund 358,600.00 Deposit
Total 358,600.00
Section VI. Analysis of Investments
1. Overview
√ Applicable □ Not applicable
Amount of investment during the reporting period (RMB) Amount of investment in the same period of last year Variation
8,300,352,568.17 18,542,275,652.81 -55.24%
2. Major equity investment obtained during the reporting period
□ Applicable √ Not applicable
3. Major non-equity investment ongoing during the reporting period
√ Applicable □ Not applicable
Unit: RMB
Project Offcn Office Building in Fushun Changping Land Use Right Total
Investment Method Self-built project Other —
Whether it is a fixed asset investment Yes Yes —
Educational technology Educational technology
Industries involved in investment
development, service and culture development, service and culture —
projects
consultation consultation
Amount of investment in this 7,365,856.80 2,494,150,000.00 2,501,515,856.80
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
reporting period
Cumulative amount of investment as
147,653,548.32 3,097,058,000.00 3,244,711,548.32
of the end of the reporting period
Sources of funds Self-owned fund Self-owned fund —
Project progress 44.74% — —
Expected income 0.00 0.00 0.00
Cumulative income as of the end of
0.00 0.00 0.00
the reporting period
Reasons for not reaching the planned
Not Completed Not yet started —
progress and expected income
Date of disclosure (If any) — Dec.3, 2020 —
www.cninfo.com.cn
Index of disclosure (If any) — —
(Announcement No:2020-046)
4. Financial assets investment
(1) Securities investment
√ Applicable □ Not applicable
Unit: RMB
Profits
and Sell
Accumu
Book losses ing Profits
lated
Origin Accou value from Am and
changes Purchase Book Accou
Securi Securities al nting at the change oun losses Source
Securi in fair amount value at nting
ties abbreviati invest measur begin s in t during s of
ties value for this the end of subjec
code on ment ement ning fair for the fund
included period the period ts
cost model of the value this reportin
in
period for the peri g period
equity
current od
period
Huitianfu
Stable-prof Transa
it Hybrid fair ctiona
10,46 Self-o
01043 Securities 9,999, value 489,9 0.0 489,95 10,957,9 l
Funds 7,953 0.00 0.00 wned
9 Fund with 000.00 measur 51.00 0 1.00 04.10 financ
.10 funds
one-year ement ial
holding assets
period
10,46
9,999, 489,9 0.0 489,95 10,957,9
Total -- 7,953 0.00 0.00 -- --
000.00 51.00 0 1.00 04.10
.10
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Disclosure Date of the
announcement of securities
N/A
investment approval by board
of directors
Disclosure date of the
announcement of the securities
N/A
investment approval by board
of shareholders (if any)
（2）Derivatives investment
□ Applicable √ Not applicable
There is no derivatives investment during the reporting period.
Section VII. Sale of Major Assets and Equity
1. Sales of major assets
□ Applicable √ Not applicable
There is no sales of major assets during the reporting period.
2. Sales of major equity
□ Applicable √ Not applicable
Section VIII. Analysis of major shareholding companies
√ Applicable □ Not applicable
Major subsidiaries and shareholding companies that have impact on more than 10% net profit of the Company
Unit: RMB
Company name Beijing Offcn Education Technology Co., Ltd.
Company type Subsidiary
Major business Educational technology consulting, technology development, technical services, technology
promotion, technology transfer; educational consulting; cultural consulting; corporate management
consulting; corporate investment consulting;computer technology training (not for national
admissions); public relations services; hosting exhibition activities; organizing cultural and artistic
exchange activities (excluding performances); conference services;design, production, agency, release
of advertisements; publication wholesale; publication retail; operating telecommunications business;
human resource services; radio and television program production; engaging in Internet cultural
activities.(Market entities independently choose operating projects and carry out operating activities
in accordance with the law; engage in Internet cultural activities, publication wholesale, publication
retail, telecommunications business, radio and television program production, human resource
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
services, and projects subject to approval in accordance with the law, and after approval by relevant
departments, carry out operating activities in accordance with the approved content; shall not engage
in operating activities that are prohibited or restricted by the state and this city’s industrial policies.)
Registered capital 90,000,000.00
Total assets 11,736,902,897.51
Net assets 3,148,337,159.19
Revenue 4,842,219,472.70
Operating income -61,612,880.80
Net profit -62,172,307.07
Acquisition and disposal of subsidiaries during the reporting period.
√ Applicable □ Not applicable
Method of acquisition and disposal of The Impact on the overall business
Company name
subsidiaries in the reporting period operation and performance
Anshan Tiedong Offcn Education Training School Co.,Ltd. New establishment No major impact
Diqing Offcn Training School Co., Ltd. New establishment No major impact
Wenling Offcn Information Consultancy Co., Ltd New establishment No major impact
Major holding and participating companies
The wholly-owned subsidiary of the Company, Beijing Offcn Education Technology Co., Ltd, earned revenue of RMB 4,842.2195
million in the first half of 2021, with an increase of 73.02% over the first half of 2020; the net profits of Beijing Offcn Education
Technology Co., Ltd in the the first half of 2021 is RMB -62.1723 million, with an increase of 71.19% over the same period of last
year. The main reason for the steady and rapid growth of operating income and profit is that to achieve the annual business goals, the
Company carries every task forward steadily, constantly increases investment in R&D, teaching, marketing and OMO platform,
expands the market proactively and increases market share constantly, which promotes the R&D capacity, management efficiency
and the transformation of products and services toward technology and internet based, and makes the comprehensive advantages of
brand and platform more explicit.
Section IX. Structured Entities Controlled by the Company
□ Applicable √ Not applicable
Section X. Possible Risks and Responses
1. Risks of policies
The prosperity of the vocational education industry has a high correlation with the policy environment, and is
easily affected by vocational education policies. In recent years, in order to support the development of the
vocational education industry, the state has successively issued a number of industry support and encouragement
policies. Regulations for the Implementation of the Law of the People's Republic of China on the Promotion of
Private Education newly issued in 2021 reveals the adherence to the method of supporting and regulating private
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
education, and provides encouragement and supports for the development of vocational education in the policy
prospect. However, some regional authorities may have different understandings of the Regulations (mentioned
above), and this uncertainty may bring risks to the Company’s future business development in some regions. In
addition, the Company has many branches and wide distribution of training venues. It is not ruled out that in the
future, relevant regulatory departments of provinces, autonomous regions and municipalities will issue more
stringent regulations for the local education and training industry, which may affect the company's operations in
the region.
Risk response: The Company pays close attention to the regulations and policies issued by the State Council,
education administration and other relevant departments and local governments, and complies with the latest
regulatory requirements. The Company establishes a policy risk warning mechanism, regularly checks the policy
risks in the operation of each branch, conducts risk education and provides compliance reminders for each
business department to ensure that the Company is guided by regulatory policies and operates compliantly and
prudently. At the same time, the Company’s team responsible for tracking and studying policy obtains, perceives
and predicts the change direction and trend of the relevant policy in local places in a timely manner, actively
studies relevant policies and regulations, makes arrangements and adjustments in advance, avoids relevant policy
risks, and leverages industry policies to help the Company’s business development.
2. Risks of marketing competition
The overall scale of the vocational education market is large, the market demand is widely dispersed throughout
the country, and the initial investment scale is relatively small. This has spawned a large number of local small
and medium-sized training institutions, among whom the homogeneity of products is relatively serious, and the
vicious competition in the industry is widespread. The implementation of the new policy on easing the burden of
excessive homework and off-campus tutoring for students undergoing compulsory education may propel more and
more capital and institutions to enter the vocational education and training industry, leading to increasingly fierce
market competition. How to effectively deal with the competition and impact of competing products in the
industry and emerging institutions is a challenge facing the company's comprehensive development of the
vocational education industry.
Risk response: the Company will continue to maintain heavy R&D investment, continue to increase investment
in technological infrastructure and technical teams, and integrate technological productivity into the operating
system to drive business innovation. At the same time, it will continue to explore new subdivision tracks, create a
full-category market for mid-to-high-end vocational education, and further enhance the Company's core
competitiveness in the industry. After more than 20 years of accumulation, the Company has a fast iterative
teaching and research system, offline channel resources and online layout, and has significant advantages in future
market competition
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
3.Risk of core brain drain
As a vocational education enterprise with highly intensive knowledge-based staff, the Company regards talents as
its one of core resources. Brain drain is a common risk faced by the education and training industry. The loss of
the Company’s core management, R&D talent team and backbone teachers may adversely affect the Company’s
long-term stable development.
Risk response: On the one hand, the Company has attracted a large number of high-quality talents with its brand
advantages, which has continuously injected new forces into the Company. At the same time, since the Company
was founded, it has taken “Be Kind & Do Right” as its core value and advocated selflessness and altruism. This
ubiquitous and endless corporate culture allows the Company to maintain strong organizational cohesion. On the
other hand, the Company attaches importance to the basic rights and interests of employees, completes a fair and
transparent performance evaluation system, provides employees with diversified compensation and incentive
paths, pays attention to the personal growth of employees, supplies employees with sustainable development
opportunities and growth space, and reduces the risk of core brain drain.
4. Risks of operation and management
With the continuous expansion of the Company’s business categories and branches, the Company must face the
risk brought about by the mismatch between expansion and management capabilities. To facilitate the
development, the cost of venue leasing and human resources increases continually, which results in the decline of
the current profit level and profit rate, etc. At the same time, the pandemic of COVID-19 is likely to continue and
exist for a long time, which means that the conducting of training business in some regions will under strict
control, thus challenging the Company’s operation and management.
Risk response: In view of the above risks, the Company will continue to optimize its management system of
vertical integrated fast response, enhance the coordination between large-scale knowledge employees, improve
management and operation efficiency, upgrade human resources structure, and moderate the business expansion
strategy of the Company. The Company attaches importance to talent reserves, makes arrangements in advance,
and promotes the realization of growth expectations for new categories. In the face of this pandemic, the
Company has realized the deep integration of online and offline products with the help of digital operating results
and deep research and development capabilities, and effectively responded to the impact of the pandemic. In
addition, in recent years, the Company has also continued to invest in the construction of a large-scale one-stop
base for food, accommodation and learning, promote the realization of large-scale factory-style operations at the
teaching site, and further improve the quality of services while reducing operating costs.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 4 Corporate Governance
Section I. Annual general meeting and extraordinary general meetings convened during the
reporting period
1. Particulars about the shareholders’ general meeting during the reporting period
Investor Disclosure
Session Type Convening date Disclosure index
Participation date
For details, refer to the
2021 First Extraordinary Announcement on Resolutions of the
January 26,
Extraordinary General 78.68% January 25, 2021 First Extraordinary General
2021
General Meeting Meeting Meeting of 2020 (No. 2021-004)
disclosed on www.cninfo.com.cn.
For details, refer to the
2020Annual Announcement on Resolutions of the
Annual General June 16,
General 80.10% June 15, 2021 Annual General Meeting of
Meeting 2021
Meeting 2020(No. 2021-044) disclosed on
www.cninfo.com.cn.
2. Extraordinary general meetings requested by preferred shareholders with restored voting rights:
□ Applicable √ Not applicable
Section II. Changes of Directors, Supervisors, and Senior Executives
□ Applicable √ Not applicable
The Company’s directors, supervisors and senior executives did not change during the reporting period. For more
specific information, please refer to the 2020 Annual Report.
Section III. The Company’s common stock profit distribution and capitalization of capital
reserve
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by converting
capital reserve.
Section IV. Implementation of the Company’s equity incentive plan, employee stock
ownership plan or other employee incentive measures
Applicable √Not applicable
There is no such situation of the Company’s equity incentive plan, employee stock ownership plan or other
employee incentive measures.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 5 Environmental and social responsibilities
Section I. Environmental protection
Did the listed Company and its subsidiaries belong to the major pollutant discharge units announced by the
Ministry of Ecology and Environment？
□ Yes √ No
Situations of receiving administrative punishment due to environmental issues during the reporting period
Influence on Rectification
Name of company Reasons of Results of
Details of issues operations of the measures of the
or its subsidiaries punishment punishment
listed Company company
N/A Not applicable Not applicable Not applicable Not applicable Not applicable
Other environmental information disclosed in reference with major pollutant discharge units
Not applicable
Reasons of not disclosing other environmental information
The Company and its subsidiaries do not belong to the major pollutant discharge units announced by the Ministry
of Ecology and Environment. The Company and its subsidiaries strictly follow the relevant laws and regulations
issued by the state regarding environment protection and did not receive any administrative punishment due to
environmental issues during the reporting period.
Section II. Social Responsibilities
The Company has not carried out targeted poverty alleviation work in the first half of the year.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 6 Significant Events
1.Commitments that the Company’s actual controllers, shareholders, related parties, acquirers, the
Company and other relevant parties have fulfilled during the reporting period and have not fulfilled as of
the end of the reporting period
√Applicable Not applicable
Important commitments made by the parties involved in the major assets restructuring are as follows:
Commit Perfo
Commitment Commitment Commitm
Main contents of commitment ment rman
Party Type ent period
time ce
After the completion of the transaction (starting from the
date of the listing of shares issued in this transaction), the
company/I/the plan shall not transfer the shares with rights
and interests of Yaxia Auto within 36 months .
After the completion of the transaction, the shares held by
the Company/I/the plan, derived from Yaxia Auto shares
due to the distribution of stock dividends and the
Yaxia Industrial, conversion of capital reserve to share capital shall also Under
Zhou Xiayun, Letter of norma
comply with the above-mentioned arrangement of Jan. 31,
Zhou Hui, Zhou commitment May 4, l
Li, Phase-I on lock-up restricted sale of shares. 2018 2022 imple
employee stock period If the China Securities Regulatory Commission and/or mentat
ownership plan Shenzhen Stock Exchange have/has other provisions for ion
the above-mentioned lock-up period arrangement , the
company/I/the plan will adjust and implement the
above-mentioned lock-up period arrangement according to
the latest regulations of the China Securities Regulatory
Commission and/or Shenzhen Stock Exchange.
If violating the above commitments, the company/I/the
plan will bear all losses caused to Yaxia Auto.
1. The shares of the listed Company subscribed by myself
in this transaction shall not be transferred or dealt with in
any other forms within 36 months from the date of the
listing of the shares. Within 6 months after the listing of
the shares, if the closing price of the listed company stock
Letter of Under
is lower than the issue price for consecutive 20 trading
Commitment norma
on lock-up days , or the closing price of the stock at the end of the 6 Apr. 27, Jan. 31, l
Li Yongxin
period for months after the listing of the shares is lower than the 2018 2022 imple
subscription of mentat
issue price, the lock-up period of consideration shares
shares ion
acquired by myself shall be automatically extended for 6
months. (If dividend or bonus shares distribution,
conversion of capital reserve or allotment by the listed
company occurred during the above-mentioned period, the
aforementioned issue price shall be calculated based on
32
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
the price adjusted by factors as ex-dividend and ex-rights,
etc.)
2. As the transferee of 72,696,561 Yaxia Auto shares held
by Anhui Yaxia Industrial Co., Ltd., I shall not transfer
such shares within 36 months from the registration date of
such shares in my securities account.
3. The aforesaid arrangement of share lock-up does not
affect the implementation of profit compensation for this
transaction, that is, when I need to make profit
compensation, the listed company has the right to relieve
the lock-up of shares in corresponding amount in advance
for profit compensation.
4. I promise to abide by the following provision: if the
transaction is investigated by judiciary authorities or the
China Securities Regulatory Commission on suspicion of
misrepresentations, misleading statements, or material
omissions in regard to the information provided or
disclosed, the shares of the listed Company acquired in
this transaction shall not be transferred until the
conclusion of the investigation is clarified.
5. After the completion date of this transaction, my
increased shares due to bonus shares distribution or
conversion of capital reserve of the listed Company shall
also comply with the foregoing requirements.
6. If the aforementioned lock-up period arrangement does
not comply with the latest laws and regulations and the
latest regulatory requirements of the securities regulatory
institution, I agree to implement the arrangement in
accordance with the latest laws and regulations and the
requirements of the regulatory agency.
7. After the lock-up period expires, it will be implemented
in accordance with the relevant regulations of the China
Securities Regulatory Commission and the Shenzhen
Stock Exchange.
1. The shares of the listed Company subscribed by myself
in this transaction shall not be transferred or dealt with in
any other forms within 36 months from the date of the
Letter of listing of the shares. Within 6 months after the listing of Under
commitment the shares, if the closing price of the listed company stock norma
on lock-up Jan. 31, l
Lu Zhong Fang is lower than the issue price for consecutive 20 trading Apr. 27,
period for 2022 imple
days , or the closing price of the stock at the end of the 6 2018
subscription of mentat
shares months after the listing of the shares is lower than the ion
issue price, the lock-up period of consideration shares
acquired by myself shall be automatically extended for 6
months. (If dividend or bonus shares distribution,
33
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
conversion of capital reserve or allotment by the listed
company occurred during the above-mentioned period, the
aforementioned issue price shall be calculated based on
the price adjusted by factors as ex-dividend and ex-rights,
etc.)
2. The aforesaid arrangement of share lock-up does not
affect the implementation of profit compensation for this
transaction, that is, when I need to make profit
compensation, the listed company has the right to relieve
the lock-up of shares in corresponding amount in advance
for profit compensation.
3. I promise to abide by the following provision: if the
transaction is investigated by judiciary authorities or the
China Securities Regulatory Commission on suspicion of
misrepresentations, misleading statements, or material
omissions in regard to the information provided or
disclosed, the shares of the listed Company acquired in
this transaction shall not be transferred until the
conclusion of the investigation is clarified.
4. After the completion date of this transaction, my
increased shares due to bonus shares distribution or
conversion of capital reserve of the listed Company shall
also comply with the foregoing requirements.
5. If the aforementioned lock-up period arrangement does
not comply with the latest laws and regulations and the
latest regulatory requirements of the securities regulatory
institution, I agree to implement the arrangement in
accordance with the latest laws and regulations and the
requirements of the regulatory agency.
6. After the lock-up period expires, it will be implemented
in accordance with the relevant regulations of the China
Securities Regulatory Commission and the Shenzhen
Stock Exchange.
1. The shares of the listed Company subscribed by Kerui
Technology Innovation in this transaction shall not be
transferred or dealt with in any other forms within 36
months from the date of the listing of the shares. Within 6
Letter of Under
months after the listing of the shares, if the closing price
commitment norma
Kerui of the listed company stock is lower than the issue price Jan. 31,
on lock-up Jul. 27, l
Technology
period for for consecutive 20 trading days, or the closing price of the 2018 2022 Imple
Innovation
subscription of mentat
stock at the end of the 6 months after the listing of the
shares ion
shares is lower than the issue price, the lock-up period of
consideration shares acquired by Kerui Technology
Innovation shall be automatically extended for 6 months.
(If dividend or bonus shares distribution, conversion of
34
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
capital reserve or allotment by the listed company
occurred during the above-mentioned period, the
aforementioned issue price shall be calculated based on
the price adjusted by factors as ex-dividend and ex-rights,
etc.)
2. The enterprise promises to abide by the following
provision: if the transaction is investigated by judiciary
authorities or the China Securities Regulatory
Commission on suspicion of misrepresentations,
misleading statements, or material omissions in regard to
the information provided or disclosed, the shares of the
listed Company acquired in this transaction shall not be
transferred until the conclusion of the investigation is
clarified.
3. After the completion date of this transaction, the
increased shares that the enterprise owns due to bonus
shares distribution or conversion of capital reserve of the
listed Company shall also comply with the foregoing
requirements.
4. If the aforementioned lock-up period arrangement does
not comply with the latest laws and regulations and the
latest regulatory requirements of the securities regulatory
institution, the enterprise agrees to implement the
arrangement in accordance with the latest laws and
regulations and the requirements of the regulatory agency.
5. After the lock-up period expires, it will be implemented
in accordance with the relevant regulations of the China
Securities Regulatory Commission and the Shenzhen
Stock Exchange.
1. The shares of the listed Company subscribed by Kerui
The
Technology Innovation in this transaction shall not be
Comp
transferred or dealt with in any other forms within 36 any’s
months from the date of the listing of the shares. Within 6 shares
held
months after the listing of the shares, if the closing price
by the
of the listed company stock is lower than the issue price Aeros
Aerospace Letter of
for consecutive 20 trading days, or the closing price of the pace
Industry, commitment
stock at the end of the 6 months after the listing of the Jan. 31, Indust
on lock-up Jul. 27,
Guangyin ry and
period for shares is lower than the issue price, the lock-up period of 2018 2021
Guang
Venture subscription of
consideration shares acquired by Kerui Technology yin
shares
Innovation shall be automatically extended for 6 months. Ventur
e were
(If dividend or bonus shares distribution, conversion of
listed
capital reserve or allotment by the listed company for
occurred during the above-mentioned period, the circula
tion
aforementioned issue price shall be calculated based on
on
the price adjusted by factors as ex-dividend and ex-rights, Febru
35
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
etc.) ary 1,
2. The enterprise promises to abide by the following 2021,
the
provision: if the transaction is investigated by judiciary shareh
authorities or the China Securities Regulatory olders’
Commission on suspicion of misrepresentations, share
lock-u
misleading statements, or material omissions in regard to
p
the information provided or disclosed, the shares of the comm
listed Company acquired in this transaction shall not be itment
s had
transferred until the conclusion of the investigation is
been
clarified. fulfille
3. After the completion date of this transaction, the d
increased shares that the enterprise owns due to bonus
shares distribution or conversion of capital reserve of the
listed Company shall also comply with the foregoing
requirements.
4. If the aforementioned lock-up period arrangement does
not comply with the latest laws and regulations and the
latest regulatory requirements of the securities regulatory
institution, the enterprise agrees to implement the
arrangement in accordance with the latest laws and
regulations and the requirements of the regulatory agency.
5. After the lock-up period expires, it will be implemented
in accordance with the relevant regulations of the China
Securities Regulatory Commission and the Shenzhen
Stock Exchange.
1. The shares of the listed Company subscribed by myself The
Comp
in this transaction shall not be transferred or dealt with in
any’s
any other forms within 36 months from the date of the shares
listing of the shares. Within 6 months after the listing of held
the shares, if the closing price of the listed company stock by
Wang
is lower than the issue price for consecutive 20 trading
Zhend
days , or the closing price of the stock at the end of the 6 ong,
months after the listing of the shares is lower than the Guo
Wang
Letter of Shiho
Zhendong, Guo issue price, the lock-up period of consideration shares
commitment ng,
Shihong, Liu acquired by myself shall be automatically extended for 6
on lock-up Jul. 27, Liu
Bin, Zhang Jan. 31,
period for months. (If dividend or bonus shares distribution, 2018 Bin,
Yongsheng,
subscription of 2021 Zhang
Yang Shaofeng, conversion of capital reserve or allotment by the listed
shares Yongs
Zhang Zhi’an company occurred during the above-mentioned period, the heng,
aforementioned issue price shall be calculated based on Yang
the price adjusted by factors as ex-dividend and ex-rights, Shaof
eng,
etc.)
and
2. The aforesaid arrangement of share lock-up does not Zhang
affect the implementation of profit compensation for this Zhi’an
were
transaction, that is, when I need to make profit
listed
compensation, the listed company has the right to relieve for
36
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
the lock-up of shares in corresponding amount in advance circula
for profit compensation. tion
on
3. I promise to abide by the following provision: if the Febru
transaction is investigated by judiciary authorities or the ary 1,
China Securities Regulatory Commission on suspicion of 2021,
the
misrepresentations, misleading statements, or material
shareh
omissions in regard to the information provided or olders’
disclosed, the shares of the listed Company acquired in share
lock-u
this transaction shall not be transferred until the
p
conclusion of the investigation is clarified. comm
4. After the completion date of this transaction, my itment
increased shares due to bonus shares distribution or s have
been
conversion of capital reserve of the listed Company shall fulfille
also comply with the foregoing requirements. d
5. If the aforementioned lock-up period arrangement does
not comply with the latest laws and regulations and the
latest regulatory requirements of the securities regulatory
institution, I agree to implement the arrangement in
accordance with the latest laws and regulations and the
requirements of the regulatory agency.
6. After the lock-up period expires, it will be implemented
in accordance with the relevant regulations of the China
Securities Regulatory Commission and the Shenzhen
Stock Exchange.
Within 36 months from the date of the transfer of
80,000,000 shares of Yaxia Auto held by Anhui Yaxia
Industrial Co., Ltd. to the enterprise, the shares shall not
Letter of Under
be transferred. The lock-up period of the shares increased norma
commitment
Offcn during the above period due to bonus shares distribution, Apr. 27, Jan. 31, l
on the lock-up
Partnership 2018 2022 imple
conversion of capital reserve or allotment of shares by
of shares mentat
Yaxia Auto, shall also comply with the foregoing ion
requirements.
If the enterprise violates commitments listed above, it will
bear all losses caused to Yaxia Auto.
Within 36 months from the date of the transfer of
80,000,000 shares of Yaxia Auto held by Anhui Yaxia
Letter of Industrial Co.,Ltd. to Beijing Offcn Future Information
Consulting Center (Limited Partnership), I or the
commitment Under
enterprise shall not in any way transfer the shares of
norma
on the lock-up Beijing Offcn Future Information Consulting Center Jan. 31,
Li Yongxin and Jul. 27, l
of Offcn (Limited Partnership) or withdraw from the partnership
other 10 2018 2022 imple
with Beijing Offcn Future Information Consulting Center
counterparties Partnership’s mentat
(Limited Partnership), nor do we transfer, assign or
contribution ion
authorize other entities in any way to fully or partially
shares have the rights and interests indirectly related to the shares
of Yaxia Industrial Co., Ltd. held by Beijing Offcn Future
Information Consulting Center (Limited Partnership).
Letter of April 27, Under
Li Yongxin I. Guarantee the independence of the listed Company’s Long-term
commitment 2018 imple
37
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Lu Zhongfang on maintaining personnel mentat
Wang Zhendong independence (1) It is guaranteed that after the completion of this ion
of the listed norma
Offcn transaction, the personnel, human resources and
Company lly
Partnership remuneration management of the listed Company shall be
completely independent from myself/Offcn Partnership,
and from other related parties, such as companies,
enterprises or economic organizations, controlled by
myself/Offcn Partnership.
(2) It is guaranteed that after the completion of this
transaction, senior executives shall work as full-time
employees and receive remuneration in the listed
Company. They shall not hold any positions other than
directors or supervisors in other companies, enterprises, or
economic organizations controlled by myself/Offcn
Partnership.
(3) It is guaranteed that after the completion of this
transaction, the official powers of the shareholders’
meeting and board of directors on personnel appointments
and dismissals shall not be interfered.
II. Guarantee the independence of institutes of the listed
Company
(1) It is guaranteed that after the completion of this
transaction, the listed Company shall build a sound
structure of corporate governance and develop an
independent and complete organizational structure.
(2) It is guaranteed that after the completion of this
transaction, the general meeting of shareholders, the board
of directors, and the board of supervisors shall
independently exercise their powers in accordance with
laws, regulations and the Company’s Articles of
Corporation.
III. Guarantee the independence and completeness of the
assets of the listed Company.
(1) It is guaranteed that after the transaction, the listed
Company shall have independent and complete assets
related to production and operation.
(2) It is guaranteed that after the completion of this
transaction, the business premises of the listed Company
shall be independent from myself/Offcn Partnership, and
other related parties, such as companies, enterprises, or
other economic organizations controlled by myself/Offcn
Partnership.
(3) It is guaranteed that after the completion of this
transaction, except for normal business dealings, there
38
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
shall be no capital and assets of the listed Company
occupied by myself/Offcn Partnership, and other related
parties, such as companies, enterprises or economic
organizations, controlled by myself or Offcn Partnership.
IV. Guarantee the independence of the listed Company’s
business.
(1) It is guaranteed that after the completion of this
transaction, the listed Company shall have the
qualifications of independently conducting business
activities and the capabilities of running market-oriented,
independent, autonomous, sustainable business.
(2) It is guaranteed that after the completion of this
transaction, I/Offcn Partnership,or other related
parties,such as companies, enterprises, or other economic
organization controlled by myself/Offcn Partnership shall
avoid businesses which have a competitive relationship
with the listed Company and its subsidiaries.
(3) It is guaranteed that after the completion of this
transaction, I/Offcn Partnership, or related parties, such as
companies, enterprises, or other economic organizations
controlled by myself/Offcn Partnership shall reduce
related-party transactions with the listed Company and its
subsidiaries. Related-party transactions that are really
necessary and unavoidable shall be conducted in a
market-oriented and fairly way and perform relevant
approval processes and information disclosure obligations
in accordance with relevant laws, regulations and
regulatory documents.
V. Guarantee the financial independence of the listed
Company.
(1) It is guaranteed that after the completion of this
transaction, the listed Company shall establish an
independent financial department with independent
financial accounting systems and standardized and
independent financial accounting rules.
(2)It is guaranteed that after the completion of this
transaction, the listed Company shall open bank accounts
independently and shall not share bank accounts with
myself/Offcn Partnership/other related parties, such as
companies, enterprises or other economic organizations
controlled by myself or Offcn Partnership.
(3) It is guaranteed that after the completion of this
transaction, financial personnel hired by the listed
Company shall not hold any part-time positions in other
39
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
related parties, such as companies, enterprises or other
economic organizations controlled by myself or Offcn
Partnership
(4) It is guaranteed that after the completion of this
transaction, the listed Company can make financial
decisions independently. I/Offcn Partnership shall not
interfere with the use of funds by the listed Company.
(5) It is guaranteed that after the completion of this
transaction, the listed Company will pay taxes
independently according to laws.
I/Offcn Partnership shall be liable for all losses caused to
the listed Company and its subsidiaries due to my/Offcn
Partnership’s failure in fulfilling the above commitments.
1. As of the date of signing this commitment letter,
myself, my close relatives and other companies, 1. The
As of
enterprises or economic organizations controlled by transfer of the
myself and my close relatives, except for Beijing Offcn Kairuier end of
the
Online Education Technology Co., Ltd. (hereinafter Training
reporti
referred to as Offcn Online), controlled by my relatives School in ng
Xuhua and Lu Yan, and its affiliated schools which are Haidian period
District of ,
involved in the same or similar businesses conducted by
Kairui
Offcn Ltd., other related parties are not involved in any Beijing: er
same, similar or related businesses conducted by the listed within 24 Traini
Company, Offcn Ltd. and its affiliated companies and months ng
Schoo
schools. Except for serving as a director in Kunming from the
l in
Wuhua Offcn training school, which is affiliated to Offcn date of the Haidia
Online, Li Yongxin neither holds any full-time or signing of n
Distric
Letter of part-time positions nor provides consultancy at any this letter
t of
Commitment companies or enterprises, which conducts competitive of
Li Yongxin, Lu Sept. 20, Beijin
on avoiding
Zhongfang businesses with the listed Company, Offcn Ltd. and their 2018 commitme g had
horizontal
nt been
competition affiliates. I also do not directly or indirectly hold any
transfe
equity or shares of companies or enterprises conducting 2. The
rred to
transfer of
the same, similar or related businesses as the listed an
Kunming
Company, Offcn Ltd. and its affiliates. unrela
Wuhua
ted
2. As of the date of signing this commitment letter, Offcn
third
Offcn Online and its two subordinate training schools’ Training
party.
School :
disposals are as follow: Offcn Online conducts no Other
within 12
comm
education businesses (to be canceled after subordinate months
itment
schools transferred). Kairuier Training School in Haidian after the
s are
revised
District of Beijing is to be transferred to an unrelated third under
Regulation
norma
party and the transfer agreement has been signed. If the s of
l
transfer is not completed within 24 months since the date Implement
imple
ation
of signing this commitment letter, I will urge Offcn Online mentat
officially
to cancel the Kairuier Training School in Haidian District ion
promulgate
of Beijing. Kunming Wuhua Offcn Training School, d and
40
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
associated with Offcn Online, has been closed and it will implement
be transferred to an unrelated third party or will be ed and
supporting
canceled within 12 months after the revised Regulations regulations
for the Implementation of the Law on the Promotion of formulated
Private Education of the People’s Republic of China by relevant
local
(hereinafter referred to as Regulations of Implementation)
education
is officially promulgated and implemented and supporting authorities
regulations formulated by relevant local education in
accordance
authorities in accordance with the revised Regulations of
with the
Implementation comes into effect. revised
3. As of the date of signing this commitment letter, Offcn Regulation
Ltd. as the organizer intends to transfer its 100% of the s of
Implement
organizer’s rights of 33 private schools for non-academic ation
qualifications to Li Yongxin and singed the Agreement on comes into
Transfer of Organizer’s Rights of Private Schools for effect.
Non-Academic Qualifications Affiliated to Beijing Offcn
Education Technology Co., Ltd. Li Yongxin is willing to
entrust the transferred 33 private schools for
non-academic qualifications to Offcn Ltd. and signed the
Trusteeship Agreement of Private Schools for
Non-academic Qualifications.
4. After the completion of transaction, except for the
above-mentioned cases, I promise that during the time of
being the actual controller of the listed Company, I, my
close relatives and other related parties, such as
companies, enterprises or other economic organizations,
controlled by myself and my close relatives shall not in
any way (including but not limited to self operated or with
other parties to operate joint venture, cooperation, joint
operation, investment, mergence, and trustee operation
home and aboard) engage in the same, similar, related and
competitive businesses with the listed Company, which
includes the follows:
(1) I will not directly or indirectly operate, participate in
or assist others to conduct same, similar businesses or
other economic activities which directly or indirectly
constitute a competitive relationship with businesses
currently operated by the listed Company and its affiliated
companies.
(2) I will not directly or indirectly invest on any economic
entities whose businesses constitute a direct or indirect
competitive relationship with the listed Company and its
affiliates.
(3) I will not be hired by any competitors that directly or
41
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
indirectly compete with the listed Company and its
affiliates, or provide any advice, assistance or business
opportunities directly or indirectly to such competitors;.
(4) I will not instigate, mislead, encourage or otherwise
induce, persuade, or coerce the employees or management
personnel in the listed Company and its affiliates to
terminate their labor or employment relationship with the
Company and its affiliates.
(5) I will not urge others to hire employees or
management personnel from the listed Company and its
affiliates.
5. I promise that if I, my close relatives and other related
parties, such as companies, enterprises or other economic
organizations controlled by myself and my close relatives
obtain any business opportunities from any third party,
which can or may compete with the listed Company and
its affiliates in the future, I will notify the listed Company
and its affiliates in writing within 5 working days. After
obtaining the third party’s promise, I will attempt to
transfer these business opportunities to the listed
Company and its affiliates.
6. I guarantee that I would never use my knowledge about
and the information I’m aware of the listed Company and
its affiliates to assist third parties to engage, participate, or
invest in businesses or projects that compete with the
listed companies and its affiliates.
7. If I violate the above commitments, the benefits
obtained by the violation of commitments shall belong to
the listed Company and I shall be liable for all losses
caused to the listed Company and its affiliates. Within 30
working days since receiving the writing notice from the
listed Company, compensation will be made in cash.
8. I will disclose relevant information in a timely manner
if commitments fail to be fulfilled or to be fulfilled on
schedule because of objective reasons, such as changes in
relevant laws, regulations and policies, or natural
disasters. Except for the above-mentioned objective
reasons, if the commitment is anyhow unable to be
fulfilled or fulfilling the commitment is not conducive to
safeguarding the rights and interests of the listed
Company, I should fully disclose the reasons and either
provide a new commitment to the listed Company and
related investors to replace the original one, or propose an
exemption from fulfilling the commitment.
9. The commitment is valid from the date when the
commit letter is signed to the time when I cease to be the
actual controller of the listed Company.
Wang Letter of 1. As of the date of signing this letter of commitments, I, Under
Zhendong, Commitment April 27, norma
my close relatives, related parties, such as companies,
Offcn on avoiding 2018 Long-term l
Partnership horizontal enterprises or other economic organizations controlled by imple
42
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
competition myself and my close relatives, Offcn Partnership and mentat
related parties, such as other enterprises or economic ion
organizations controlled by Offcn Partnership, participate
in no businesses which are the same, similar o or related
to businesses competing with the listed Company, Offcn
Ltd. and their affiliated companies and schools. Except for
serving as a director at Beijing Haidian District Kairuier
Training School, affiliated to Offcn Online ( Offcn Online
tends to transfer the rights of Kairuier Training School to
an unrelated third party and after this transfer, Wang
Zhendong will not hold the post as a director.), I neither
holds any full-time or part-time positions nor provides
consultancy at any companies or enterprises which
conducts competitive businesses with the listed Company,
Offcn Ltd. and their affiliates.serve as a consultant or a
part-time employee in other companies or enterprises that
pose competitions against the listed Company, Offcn Ltd.
and its affiliates. I do not directly or indirectly hold the
equity of an company or entity that runs the same, similar
or relevant business engaged by the listed Company,
Offcn Ltd. and its affiliates.
2.After the completion of transaction, I/Offcn Partnership
promise that during the time of being shareholders of the
listed Company, I, my close relatives and other related
parties, such as companies, enterprises or other economic
organizations, controlled by myself and my close
relatives ， Offcn Partnership and related parties, such as
other enterprises or economic organizations controlled by
Offcn Partnership, shall not in any way (including but
not limited to self operated or with other parties to operate
joint venture, cooperation, joint operation, investment,
mergence, and trustee operation home and aboard) engage
in the same, similar, related and competitive businesses
with the listed Company, which includes the follows:
I will not directly or indirectly operate, participate in or
assist others to conduct same, similar businesses or other
economic activities which directly or indirectly constitute
a competitive relationship with businesses currently
operated by the listed Company and its affiliated
companies. 2. .I will not directly or indirectly invest on
any economic entities whose businesses constitute a direct
or indirect competitive relationship with the listed
Company and its affiliates. 3. I will not be hired by any
competitors that directly or indirectly compete with the
43
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
listed Company and its affiliates, or provide any advice,
assistance or business opportunities directly or indirectly
to such competitors;. 4. I will not instigate, mislead,
encourage or otherwise induce, persuade, or coerce the
employees or management personnel in the listed
Company and its affiliates to terminate their labor or
employment relationship with the Company and its
affiliates. 5. I will not urge others to hire employees or
management personnel from the listed Company and its
affiliates.
3. I/Offcn Partnership promise that if I, my close relatives
and other related parties, such as companies, enterprises or
other economic organizations controlled by myself and
my close relatives, Offcn Partnership and related parties,
such as other enterprises or economic organizations
controlled by Offcn Partnership, obtain any business
opportunities from any third party, which can or may
compete with the listed Company and its affiliates in the
future, I/Offcn Partnership will immediately notify the
listed Company. After obtaining the third party’s promise,
I will attempt to transfer these business opportunities to
the listed Company and its affiliates.
4. I guarantee that I would never use my knowledge about
and the information I’m aware of the listed Company and
its affiliates to assist third parties to engage, participate, or
invest in businesses or projects that compete with the
listed companies and its affiliates.
If I/Offcn Partnership shall be liable for all losses caused
to the listed Company and its affiliates due to my/Offcn
Partnership’s failure in fulfilling commitments.
1. After the transaction is completed, during the time of
being the actual controller of the listed Company, I, my
close relatives and other companies, enterprises or other
economic organizations controlled by myself, my close
relatives will try to avoid and reduce the related-party
transactions with the listed Company and its affiliates;
Letter of
unless it is necessary for the business development of the
Commitment listed Company, any related-party transactions with the Under
on reducing listed Company and its affiliates will not be conducted. norma
Li Yongxin, Lu Jul. 27, l
and regulating 2. After the transaction is completed, for the related-party
Zhongfang 2018 Long-term imple
related-party transactions which are unavoidable or reasonable to mentat
transactions happen with the listed Company and its affiliates, I, my ion
close relatives and other companies, enterprises or
economic organizations controlled by myself and my
close relatives, will sign related-party transaction
agreements with the listed Company and its affiliates in
accordance with the relevant laws, regulations and
44
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
regulatory documents and follow the general business
principles of equality, willingness, equivalence and
paid-use. The prices of related-party transactions shall be
fair. Decision-making procedures, lawful information
disclosure obligations and relevant reporting and approval
procedures regarding the related-party transactions, shall
be followed. The status of shareholders shall not be used
to damage the legitimate rights and interests of the listed
Company and other shareholders.
3. After the completion of the transaction, I will not use
the shareholders’ rights of the listed Company to
manipulate or instruct the listed Company or its directors,
supervisors and senior executives to make the listed
Company provide or accept funds, commodities, services
or other assets under inequal conditions or engage in any
behaviors that would damage the interests of the listed
companies.
4. I will urge my close relatives and other companies,
enterprises and other economic organizations controlled
by myself and my close relatives to abide by the
aforementioned commitments.
5. If I, my close relatives and other companies, enterprises
and other economic organizations controlled by myself
and my close relatives violate the above commitments, the
profits obtained by the violation of commitments belong
to the listed Company, and I shall be liable for all losses
caused to the listed Company and its affiliates. Within 30
working days since receiving the written notice from the
listed Company, compensation will be made in cash.
6. The commitment is valid from the date when it is
signed to the time when I cease to be the actual controller
of Yaxia Auto and there is no other related relationship
with Yaxia Auto.
1. After the completion of transaction, during the period of
being the actual controller/shareholder ， I, my close
Letter of relatives and other companies, enterprises or other
Commitment economic organizations controlled by myself, my close Under
Wang
on reducing relatives ， Aerospace Industry or Offcn Partnership, will norma
Zhendong,
April 27, l
Aerospace and regulating try to avoid and reduce the related-party transactions with
2018 Long-term imple
Industry, Offcn the listed Company.
related-party mentat
Partnership
transactions 2. After the transaction is completed, for the related-party ion
transactions which are unavoidable or reasonable to
happen with the listed Company and its affiliates, myself,
my close relatives and other companies, enterprises or
45
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
economic organizations controlled by myself and my
close relatives, Aerospace Industry or Offcn Partnership,
will sign related-party transactionagreements with the
listed Company and its affiliates in accordance with the
relevant laws, regulations and regulatory documents and
follow the general business principles of equality,
willingness, equivalence and paid-use. The prices of
related-party transactions shall be fair. Decision-making
procedures, lawful information disclosure obligations and
relevant reporting and approval procedures regarding the
related-party transactions, shall be followed. The status of
shareholders shall not be used to damage the legitimate
rights and interests of the listed Company and other
shareholders.
3. After the completion of the transaction, I/Aerospace
Industry/Offcn Partnership will not use the shareholders’
rights of the listed Company to manipulate or instruct the
listed Company or the directors, supervisors and senior
executives of the listed Company to make the listed
Company provide or accept funds, commodities, services
or other assets in different forms under unequal conditions
or engage in any behaviors that would damage the
interests of listed companies.
I/Aerospace Industry/Offcn Partnership shall be liable for
all losses caused to the listed Company and its affiliates
due to my/Aerospace Industry’s/Offcn Partnership’s
failures in fulfilling commitments.
Whether the
commitments
Yes
are fulfilled on
time
Section II. The non-operating capital occupation of the listed Company by the controlling
shareholder and its related parties
Applicable √ Not applicable
During the reporting period, there was no non-operating capital occupation of the listed Company by the
controlling shareholder and its related parties.
Section III. llegal Provision of Guarantees for External Parties
Applicable √ Not applicable
During the reporting period, there was no illegal provision of guarantees for external parties.
46
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Section IV. Appointment and dismissal of the CPA firm
Has the semi-annual financial report been audited?
Applicable √ Not applicable
The semi-annual financial report has not been audited yet.
Section V. Explanations provided by the Board of Directors and the Supervisory Committee
regarding the “non-standard audit report” issued by the auditor for the reporting period
Applicable √ Not applicable
Section VI. Explanations provided by the Board of Directors regarding the “non-standard
audit report” issued by the auditor for the last year
Applicable √ Not applicable
Section VII. Bankruptcy and Reorganization
Applicable √ Not applicable
There was no such situation for the Company during the reporting period.
Section VIII. Major litigation and arbitration matters
Applicable √Not applicable
There is no such situation of litigation and arbitration.
During the reporting period, other litigation and arbitration matters of the Company and its subsidiaries are as
follows:
1. During the reporting period, the amount of litigation involved in closed cases was RMB 12.7113 million, and
the actual amount of judgments in effective legal documents was approximately RMB 1.3236 million. The results
of the litigation had no significant impact on the Company's operations;
2. At the end of the reporting period, the amount of litigation involved in unsettled cases was RMB 5.6326 million
and the amount of litigation involved in pending cases accounted for 0.13% of the audited net assets attributable
to shareholders of the listed Company in 2020, which had no significant impact on the Company's operations.
Section IX. Punishment and rectification
Applicable √Not applicable
There is no such situation of punishment and rectification of the Company during the reporting period
Section X. Integrity of the Company and its controlling shareholders and actual controllers:
Applicable √Not applicable
Section XI. Significant related transactions
1. Related-party transactions relevant to routine operations
Applicable √Not applicable
There is no such situation of related-party transactions relevant to routine operations.of the Company during the
47
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
reporting period.
2. Related party transactions arising from acquisition and sale of assets or equity
Applicable √Not applicable
There is no such situation of related-party transactions arising from acquisition and sale of assets or equity of the
Company during the reporting period.
3. Related-party transactions of joint foreign investments
Applicable √Not applicable
There is no such situation of related-party transactions of joint foreign investments of the Company during the
reporting period.
4. Related credit and debt transactions
Applicable √Not applicable
There is no such situation of Related credit and debt transactions of the Company during the reporting period.
5.Transactions with related financial companies and financial companies controlled by the Company
Applicable √Not applicable
No deposits, loans, credits or other financial business between the Company and the related financial companies
and financial companies controlled by the Company and related parties.
6. Other significant related-party transactions
Applicable √ Not applicable
Section XII. Major contracts and their performance
1. Trusteeship, contracting and leasing matters
(1) Trusteeship situation
√Applicable Not applicable
Explanations on trusteeship situation
On September 20, 2018, Offcn Ltd. and Li Yongxin signed Agreement on Transfer of Organizer’s Rights of
Private Schools for Non-Academic Qualifications Affiliated to Beijing Offcn Education Technology Co., Ltd.. All
100% rights of organizers as of September 20, 2018 were to be transferred to Li Yongxin. On the same day, Li
Yongxin and Offcn Ltd. signed the Trusteeship Agreement of Private Schools stipulating that Li Yongxin would
entrust the transferred private schools to Offcn Ltd. for management. The period of trusteeship started from the
date when Li Yongxin paid all the transfer price to the day when the private schools’ 100% rights of organizers
were transferred to the unrelated third party or canceled (Note: within 12 months after the revised Implementation
Regulations was officially promulgated and the relevant local education authorities passed the supporting
regulations in accordance with the revised Implementation Regulations, Li Yongxin transferred 100% of the
owner’s rights to the unrelated third party or canceled them.)
48
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Projects with trusteeship that profits or losses reached more than 10% of the total profits of the Company
Applicable √Not applicable
There was no project with trusteeship that profits or losses reached more than 10% of the total profits of the
Company during the reporting period.
(2) Contracting situation
Applicable √Not applicable
There was no contracting situation of the Company during the reporting period.
(3) Leasing situation
There was no leasing situation of the Company during the reporting period.
2. Major guarantee
Applicable √Not applicable
There was no major guarantee of the Company during the reporting period.
3. Explanations on entrusted financial management
√Applicable Not applicable
Explanations on entrusted financial management during the reporting period
Unit: RMB 10 thousands
Impairment
Amount of
Sources of entrusted Undue Overdue amount Provision of
Types entrusted
financing Balance yet to be recovered Overdue
financing
Outstanding Funds
Bank Financial Product Self-owned fund 126,155.00 14,060.00 0 0
Trust Financial Products Self-owned fund 27,000.00 17,000.00 0 0
Others Self-owned fund 999.90 999.90 0 0
Total 154,154.90 32,059.90 0 0
Particulars of high-risk entrusted financial management with a large single amount, low security, poor liquidity or
no capital protection
Applicable √ Not applicable
Entrusted financing is overdue and the principal cannot be recovered or there are other cases that may cause
impairments.
Applicable √Not applicable
4.Major contract of daily business operation
Applicable √Not applicable
49
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
5.Other significant contract
√Applicable Not applicable
50
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Section XIII. Other significant events
√Applicable Not applicable
The progress of the Company’s non-public matters:
The Company held the Company’s board of directors, board of supervisors, and the third extraordinary general
meeting of shareholders in 2020 on November 23, 2020 and December 9, 2020, reviewed and approved the
Proposal on the Company’s Compliance with the Conditions for Non-public Issuance of A Shares, Proposal on
the Company’s Plan of Non-Public Issuance of A Shares, and Proposal on the Company's Proposal of Non-Public
Issuance of A Shares and other proposals related to this non-public issuance.
On December 30, 2020, the Company announced the Announcement on the Acceptance of Applications for
Non-public Issuance of Shares by the China Securities Regulatory Commission (Announcement No.: 2020-052).
On January 8, 2021, the Company announced the Notice on Receiving the First Feedback from the China
Securities Regulatory Commission's Administrative Licensing Project Review (Announcement Number:
2021-002).
On January 27, 2021, the Company announced the Report on the Reply to the First Feedback Notice from the
China Securities Regulatory Commission Administrative Licensing Project Review and other documents.
On the same day, the Company also announced the adjustments to the non-public issuance plan including the
Revised Proposal for Non-public Issuance of A Shares reviewed and approved at the 17th meeting of the Fifth
Board of Directors and the 14th Meeting of the Fifth Supervisory Committee.
On May 18, 2021, the Company announced the Announcement on the Revised Reply to the First Feedback Notice
from the China Securities Regulatory Commission Administrative Licensing Project Review, the Notice on
Receiving the Second Feedback from the China Securities Regulatory Commission's Administrative Licensing
Project Review and other documents.
On May 29, 2021, the Company announced the Report on the Reply to the Second Feedback Notice from the
China Securities Regulatory Commission Administrative Licensing Project Review and other documents. On the
same day, the Company also announced the adjustments to the non-public issuance plan including the Second
Revised Proposal for Non-public Issuance of A Shares reviewed and approved at the 19th meeting of the Fifth
Board of Directors and the 16th Meeting of the Fifth Supervisory Committee.
On June 5, 2021, the Company issued the Announcement on the Revised Reply to the Second Feedback Notice
from the China Securities Regulatory Commission Administrative Licensing Project Review and other documents.
51
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
On June 16, 2021, the Company ’ s non-public matters were reviewed and approved by the Issuance Review
Committee of the China Securities Regulatory Commission.
Regarding the follow-up progress of the Company's non-public issuance of shares, the Company will perform its
information disclosure obligations in a timely manner in accordance with the requirements of relevant laws and
regulations.
For other important announcements, please refer to the following statements and indexes:
Date of
Name of announcement Website of announcement disclosure
disclosure
Announcement on the Reply to the First Feedback Notice from
the China Securities Regulatory Commission Administrative 2021/1/27 CNINFO（http://www.cninfo.com.cn）
Licensing Project Review
Announcement on the Non-Public Issuance of A shares to
Dilute Immediate Returns, the Company's Remedial Measures 2021/1/27 CNINFO（http://www.cninfo.com.cn）
and Commitments of Related Entities (revised draft)
Announcement on Adjustment to the Plan of Non-Public
2021/1/27 CNINFO（http://www.cninfo.com.cn）
Issuance of A Shares
Informative Announcement on the Listing and Circulation of
2021/1/29 CNINFO（http://www.cninfo.com.cn）
Some Restricted Shares
Special Note on No Profit Distribution in 2020 2021/4/29 CNINFO（http://www.cninfo.com.cn）
Announcement on the Expected Daily Connected Transaction
2021/4/29 CNINFO（http://www.cninfo.com.cn）
Quota in 2021
Announcement on the Company and Its Subsidiaries Using
2021/4/29 CNINFO（http://www.cninfo.com.cn）
Their Own Funds for Cash Management
Announcement on the Confirmation of the Company's
Directors, Supervisors and Senior Executives’ Remuneration 2021/4/29 CNINFO（http://www.cninfo.com.cn）
Plan in 2021
Announcement on Changes in Accounting Policies 2021/4/29 CNINFO（http://www.cninfo.com.cn）
Announcement on the Renewal of Hiring the Accounting Firm 2021/4/29 CNINFO（http://www.cninfo.com.cn）
Announcement on the Company and Its Subsidiaries Applying
2021/4/29 CNINFO（http://www.cninfo.com.cn）
for a General Credit Limit From the Bank
Announcement on the Difference Between Actual Net Profit
and Committed net Profit of Beijing Offcn Education 2021/4/29 CNINFO（http://www.cninfo.com.cn）
Technology Co., Ltd. in 2020
Announcement on the Revised Reply to the First Feedback
Notice from the China Securities Regulatory Commission 2021/5/18 CNINFO（http://www.cninfo.com.cn）
Administrative Licensing Project Review
52
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Announcement on Receiving the Second Feedback Notice from
the China Securities Regulatory Commission's Administrative 2021/5/18 CNINFO（http://www.cninfo.com.cn）
Licensing Project Review
Announcement on the Reply to the Second Feedback Notice
from the China Securities Regulatory Commission 2021/5/29 CNINFO（http://www.cninfo.com.cn）
Administrative Licensing Project Review
Announcement on the Non-Public Issuance of A shares to
Dilute Immediate Returns, the Company's Remedial Measures 2021/5/29 CNINFO（http://www.cninfo.com.cn）
and Commitments of Related Entities (2nd revised draft)
Announcement on Adjustment to the Plan of Non-Public
Issuance of A Shares 2021/5/29 CNINFO（http://www.cninfo.com.cn）
Announcement on the addition of provisional proposal and
supplementary notice to the 2020 Annual General Meeting of 2021/6/3 CNINFO（http://www.cninfo.com.cn）
Shareholders of the Company
Announcement on the Revised Reply to the Second Feedback
Notice from the China Securities Regulatory Commission 2021/6/5 CNINFO（http://www.cninfo.com.cn）
Administrative Licensing Project Review
Announcement on the Analysis of the Impact of Amendment to
the Regulations for the Implementation of the Law on the 2021/6/9 CNINFO（http://www.cninfo.com.cn）
Promotion of Private Education on Offcn Edu
Announcement on the Approval of Non-Public Issuance of A
Shares by the Issuance Review Committee of China Securities 2021/6/16 CNINFO（http://www.cninfo.com.cn）
Regulatory Commission
Section XIV. Significant events of the Company’s subsidiaries
Applicable √Not applicable
53
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 7 Share Changes and Shareholders
Section I. Changes in Shares
1. Changes in Shares
Unit: share(s)
Before Change Increase or Decrease (+ or -) After Change
Conversion
of
New
Number of Bonus equity Number of
Proportion shares Other Subtotal Proportion
shares shares reserves shares
issued
into share
capital
1. Shares with trading restrictions 5,419,759,990 87.88% -894,908,104 -894,908,104 4,524,851,886 73.37%
(1) Shares held by state
(2) Shares held by state-owned
legal person
(3) Other shares held by domestic
5,419,759,990 87.88% -894,908,104 -894,908,104 4,524,851,886 73.37%
capital
Of which: shares held by domestic
534,706,341 8.67% -445,588,618 -445,588,618 89,117,723 1.44%
legal person
Shares held by domestic
4,885,053,649 79.21% -449,319,486 -449,319,486 4,435,734,163 71.92%
natural person
(4) Shares held by overseas capital
Of which: shares held by overseas
legal person
Shares held by overseas
natural person
2. Shares without trading
747,639,399 12.12% 894,908,104 894,908,104 1,642,547,503 26.63%
restrictions
(1) RMB ordinary shares 747,639,399 12.12% 894,908,104 894,908,104 1,642,547,503 26.63%
(2) Domestic - listed shares for
oversea investors
(3) Foreign - listed shares for
overseas investors
(4) Other
3. Total number of shares 6,167,399,389 100.00% 0 0 6,167,399,389 100.00%
Reasons for changes in shares
√Applicable □ Not applicable
The sales restrictions on part of the shares issued by the major asset restructuring were released on February 1, 2021 and the locked
shares of the senior executives changed during the reporting period.
54
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Approval of changes in shares
□ Applicable √ Not applicable
Transfer of share changes
□ Applicable √ Not applicable
Implementation progress of share repurchase
□ Applicable √ Not applicable
Progress in the implementation of the centralized bidding method to reduce the shareholding repurchase
□ Applicable √ Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per share,
net assets per share attributable to the Company’s ordinary shareholders, etc. in the most recent year and the most
recent period
□ Applicable √ Not applicable
Other content that the Company deems necessary or required by the securities regulatory agency to disclose
□ Applicable √ Not applicable
2. Changes in shares with sales restrictions:
√ Applicable □ Not applicable
Unit: share(s)
Number of
Number of Number of Number of
shares with
shares with shares with shares with Date of
sales
Name of sales sales sales releasing
restrictions Reasons for sales restrictions
shareholder restrictions restrictions restrictions restrictions on
at the
released in increased in at the end of sales
beginning of
the period the period the period
the period
Sales restriction commitment on
shares from major replacement of February 1,
Wang Zhendong 962,471,418 234,535,429 0 727,935,989
assets and issuance for assets 2021
purchase
Beijing Aerospace
Industry Sales restriction commitment on
shares from major replacement of February 1,
Investment 267,353,171 267,353,171 0 0
assets and issuance for assets 2021
Fund(Limited purchase
Partners)
55
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Beijing Guangyin
Sales restriction commitment on
Venture shares from major replacement of February 1,
178,235,447 178,235,447 0 0
Investment Center assets and issuance for assets 2021
purchase
(Limited Partners)
Sales restriction commitment on
shares from major replacement of
Yang Shaofeng 48,123,570 48,123,570 0 0 February 1,
assets and issuance for assets
2021
purchase
Sales restriction commitment on
shares from major replacement of February 1,
Zhang Zhian 48,123,570 48,123,570 0 0
assets and issuance for assets 2021
purchase
Sales restriction commitment on
shares from major replacement of February 1,
Guo Shihong 48,123,570 12,030,893 0 36,092,677
assets and issuance for assets 2021
purchase
Sales restriction commitment on
shares from major replacement of February 1,
Zhang Yongsheng 48,123,570 12,030,893 0 36,092,677
assets and issuance for assets 2021
purchase
Sales restriction commitment on
shares from major replacement of February 1,
Liu Bin 48,123,570 48,123,570 0 0
assets and issuance for assets 2021
purchase
Allocation of transferrable quota
Li Yongxin 1,131,415,121 46,351,561 0 1,085,063,560 —
between trusteeship units
Total 2,780,093,007 894,908,104 0 1,885,184,903 — —
Section II. Issuance and listing of securities
□ Applicable √ Not applicable
Section III. Numbers of Shareholders and Shareholdings
Unit: Share(s)
Total number of shareholders with Total number of preferred shareholders
ordinary shares at the end of the 87,198 with voting rights restored at the end of the 0
reporting period reporting period (if any) (See Note 8)
Shareholders with over 5% ordinary shares or top 10 ordinary shareholders
Name of Nature of Sharehol Total ordinary Increase and Number of Number of Pledged or Frozen
56
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Shareholder shareholder ding shares held at the decrease of ordinary shares ordinary shares
Percenta end of the shares during held with sales held without Number of
Status of shares
ge (%) reporting period the reporting restrictions sales shares
period restrictions
Lu Zhongfang Domestic natural person 41.36% 2,550,549,260 0 2,550,549,260 0 Pledged 450,000,000
Li Yongxin Domestic natural Person 18.35% 1,131,415,121 0 1,085,063,560 46,351,561 Pledged 423,501,561
Wang Zhendong Domestic natural person 15.51% 956,447,318 -6,024,100 727,935,989 228,511,329 Pledged 250,089,966
Beijing Aerospace
Industry
Domestic non-state-
Investment 4.24% 261,280,477 -6,072,694 0 261,280,477
owned legal person
Fund(Limited
Partnership)
Beijing Kerui
Domestic
Venture Investment
non-state-owned legal 1.44% 89,117,723 0 89,117,723 0
Center(Limited
person
Partnership)
Beijing Offcn
Future Information Domestic
Consulting non-state-owned legal 1.30% 80,000,000 0 0 80,000,000
Center(Limited person
Partnership)
Zhou Xiayun Domestic natural person 1.28% 78,848,640 0 0 78,848,640 Pledged 48,500,000
Zhou Hui Domestic natural person 1.17% 72,277,920 0 0 72,277,920 Pledged 12,410,000
Beijing Guangyin
Domestic
Venture Investment
non-state-owned legal 1.04% 64,355,896 -113,879,551 0 64,355,896
Center (Limited
person
Partnership)
Hong Kong
Securities Clearing Overseas legal person 1.04% 63,981,550 -55,267,239 0 63,981,550
Co.,Ltd.
Strategic Investors or Ordinary Legal Persons
Become the Top 10 Shareholders with
No
Ordinary Shares by the replacement of New
Shares
Description of the Above-mentioned The Company's controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child
57
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Shareholders’ Relationship or Concerted relationship. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited
Action Partnership) constitute persons acting in concert. Zhou Xiayun and Zhou Hui have a father-son relationship. It is
unknown whether there is an associated relationship among the above-mentioned other shareholders, and
whether the above-mentioned shareholders belong to the parties acting in concert as stipulated in the
Administrative Measures on Disclosure of Information Disclosure of Shareholding Changes in Listed
Companies.
Explanation of the above-mentioned
shareholders’entrusting/entrusted voting N/A
rights and waiver of voting rights
\Description of top 10 shareholders with ordinary Shares without sales restrictions
Number of ordinary shares without sales restrictions at the end of the Type
Name of Shareholder
reporting period Type Quantities
RMB ordinary
Wang Zhendong 228,511,329 228,511,329
shares
Beijing Aerospace Industry Investment Fund RMB ordinary
261,280,477 261,280,477
(Limited Partnership) shares
Beijing Offcn Future Information Consulting RMB ordinary
80,000,000 80,000,000
Center (Limited Partnership) shares
RMB ordinary
Zhou Xiayun 78,848,640 78,848,640
shares
RMB ordinary
Zhou Hui 72,277,920 72,277,920
shares
Beijing Guangyin Venture Investment Center RMB ordinary
64,355,896 64,355,896
(Limited Partnership) shares
RMB ordinary
Hong Kong Securities Clearing Co.,Ltd. 63,981,550 63,981,550
shares
RMB ordinary
Zhou Li 48,185,280 48,185,280
shares
RMB ordinary
Li Yongxin 46,351,561 46,351,561
shares
China Merchants Bank-Bank of
RMB ordinary
Communications Schroder New Growth 43,815,910 43,815,910
shares
Hybrid Securities Investment Fund
Description of the relationship or concerted The company's controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child
action among the top 10 shareholders of relationship. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited
ordinary shares without restrictions on , and Partnership) constitute persons acting in concert. Zhou Xiayun and Zhou Hui have a father-son relationship. It is
58
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
between the top 10 shareholders of ordinary unknown whether there is an associated relationship among the above-mentioned other shareholders, and
shares without restriction and the top 10 whether the above-mentioned shareholders belong to the parties acting in concert as stipulated in the
shareholders of ordinary shares Administrative Measures on Disclosure of Information Disclosure of Shareholding Changes in Listed
Companies.
Description of the Top 10 Ordinary
Shareholders Participating in the Margin
N/A
trading(if any)
Whether the company’s top 10 ordinary shareholders and top 10 ordinary shareholders without restrictions
conducted agreed repurchase transactions during the reporting period
□ Yes √ No
The company’s top 10 ordinary shareholders and top 10 ordinary shareholders without restrictions didn’t conduct
agreed repurchase transactions during the reporting period
Section IV. Changes in shares held by directors, supervisors and senior executives
√ Applicable □ Not applicable
Quantity of
Quantity Of Other Quantity of
Shares held at Quantity of restricted Quantity of
shares increased or restricted
Tenure the beginning of shares held at the shares granted restricted shares
Name Title increased in decreased shares granted
status the period end of the period at the granted in
the current changes at the end of
(share) (share) beginning of current period
period (share) (share) the period
the period
Director,
Wang
general Incumbent 962,471,418 0 6,024,100 956,447,318 0 0 0
Zhendong
manager
Total -- -- 962,471,418 0 6,024,100 956,447,318 0 0 0
Section V. Change of controlling shareholder or actual controller
Change of controlling shareholder in the reporting period
Applicable √ Not applicable
Controlling shareholder did not change during the reporting period.
Change of actual controller during the reporting period
Applicable √ Not applicable
The actual controller did not change during the reporting period.
59
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 8 Preferred Shares
□ Applicable √ Not applicable
There were no preferred shares during the reporting period.
60
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Chapter 9 Corporate Bonds
□ Applicable √ Not applicable
61
Offcn Education Technology Co., Ltd. 2020 Semi-Annual Report
Chapter 10 Financial Statements
Section I. Auditor’s Report
Whether audit has been performed on this semi-annual financial report.
□ Yes √ No
The Company’s 2021 semi-annual financial report has not been audited.
Section II. Financial Statement
The unit of statement in financial notes is : RMB
1. Consolidated Balance Sheet
Company: Offcn Education Technology Co., Ltd.
June 30, 2021
Unit: RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 3,560,568,685.18 5,950,395,089.12
Settlement reserve
Lendings
Transactional financial assets 178,565,832.93 983,205,858.25
Derivative financial assets
Notes receivable
Accounts receivable 32,423,539.80 21,493,637.66
Receivables financing
Prepayments 1,540,010.00 2,204,120.00
Premium receivable
Accounts receivable reinsurance
Reserve for reinsurance receivable contracts
Other receivables 382,044,846.69 304,318,966.20
Including:interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory
Contract assets
62
Offcn Education Technology Co., Ltd. 2020 Semi-Annual Report
Assets held-for-sale
Non-current assets due within one year 20,027,866.69 1,985,873,462.75
Other current assets 988,720,230.46 175,179,650.61
Total current assets 5,163,891,011.75 9,422,670,784.59
Non-current assets:
Loans and advances
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment
Other equity investment 152,800,000.00 152,800,000.00
Other non-current financial assets 210,299,205.48 208,450,315.01
Investment property 657,723,948.43 668,014,515.82
Fixed assets 1,580,386,983.37 1,612,792,592.67
Construction in progress 256,986,886.10 214,248,125.04
Productive biological assets
Oil and gas assets
Right-of-use asset 1,345,123,513.84
Intangible assets 515,387,722.09 426,352,455.75
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expenses 403,141,170.81 440,955,377.93
Deferred tax assets 21,841,285.69 21,606,436.77
Other non-current assets 3,763,316,852.36 1,151,091,703.31
Total non-current assets 9,006,875,288.55 4,996,179,242.68
Total assets 14,170,766,300.30 14,418,850,027.27
Current liabilities:
Short-term loan 3,875,201,272.25 3,976,019,329.22
Borrowing from the central bank
Borrowings from banks and other financial
institutions
Transactional financial liabilities
Derivative financial liabilities
Notes payable
63
Offcn Education Technology Co., Ltd. 2020 Semi-Annual Report
Accounts payable 149,870,791.22 211,824,402.86
Deposit received
Contract liabilities 4,228,504,433.91 4,925,428,309.33
Financial assets sold for repurchase
Absorbing deposits and interbank deposits
Acting trading securities
Acting underwriting securities
Payroll payable 371,640,434.73 637,448,433.99
Taxes payable 43,165,616.53 131,111,770.78
Other payable 51,658,574.07 9,479,383.03
Including:interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held-for-sale
Non-current liabilities due within one year 507,142,087.47
Other current liabilities 126,855,133.02 147,765,156.66
Total current liabilities 9,354,038,343.20 10,039,076,785.87
Non-current liabilities:
Insurance contract reserve
Long-term loan
Bonds payable
Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability 534,044,069.15
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 104,752,688.88 104,677,444.59
Other non-current liabilities
Total non-current liabilities 638,796,758.03 104,677,444.59
Total Liabilities 9,992,835,101.23 10,143,754,230.46
Owners' equity:
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Offcn Education Technology Co., Ltd. 2020 Semi-Annual Report
Share capital 103,807,623.00 103,807,623.00
Other equity instruments
Other equity instruments_preferred stock
Other equity instruments_perpetual bond
Capital reserve 1,225,481,049.50 1,225,481,049.50
Less:Treasury stock
Other comprehensive income 30,000,000.00 30,000,000.00
Special reserve
Surplus reserves 45,000,000.00 45,000,000.00
General risk preparation
Undistributed profits 2,773,676,611.67 2,870,839,120.70
Total owner's equity attributable to the parent company 4,177,965,284.17 4,275,127,793.20
Minority shareholders' equity -34,085.10 -31,996.39
Owners' equity 4,177,931,199.07 4,275,095,796.81
Liabilities and owner's equity 14,170,766,300.30 14,418,850,027.27
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of accounting department: Luo Xue
2. Parent company balance sheet
Unit: RMB
Item June 30, 2021 December 31, 2020
Current assets:
Monetary funds 111,675,390.64 56,138,356.37
Transactional financial assets 1,653,627.28 1,630,453.37
Derivative financial assets
Notes receivable
Accounts receivable 21,668,679.91 14,792,320.38
Receivables financing
Prepayments
Other receivables 528,158,760.42 621,900,443.29
Including:interest receivable
Dividend receivable
Inventory
Contract assets
Assets held-for-sale
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Non-current assets due within one year
Other current assets
Total current assets 663,156,458.25 694,461,573.41
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 18,582,307,907.14 18,582,307,907.14
Other equity investment 152,800,000.00 152,800,000.00
Other non-current financial assets
Investment property 376,285,034.81 384,641,527.88
Fixed assets 379,420,929.98 383,060,000.00
Construction in progress 72,569,103.57 72,569,103.57
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 20,720,161.43 20,529,151.44
Other non-current assets 501,095,111.10 501,095,111.10
Total non-current assets 20,085,198,248.03 20,097,002,801.13
Total assets 20,748,354,706.28 20,791,464,374.54
Current liabilities:
Short-term loan 1,301,276,472.26 871,083,875.00
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 83,621,752.26 83,621,752.26
Deposit received
Contract liabilities
Payroll payable
Taxes payable 1,448,248.34 1,437,291.71
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Other payable 6,933,161.99 446,606,530.72
Including:interest payable
Dividend payable
Liabilities held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,393,279,634.85 1,402,749,449.69
Non-current liabilities:
Long-term loan
Bonds payable
Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 10,013,406.82 10,007,613.34
Other non-current liabilities
Total non-current liabilities 10,013,406.82 10,007,613.34
Total Liabilities 1,403,293,041.67 1,412,757,063.03
Owners' equity:
Share capital 6,167,399,389.00 6,167,399,389.00
Other equity instruments
Other equity instruments_preferred stock
Other equity instruments_perpetual bond
Capital reserve 12,775,326,370.33 12,775,326,370.33
Less:Treasury stock
Other comprehensive income 30,000,000.00 30,000,000.00
Special reserve
Surplus reserves 387,458,806.65 387,458,806.65
Undistributed profits -15,122,901.37 18,522,745.53
Owners' equity 19,345,061,664.61 19,378,707,311.51
Liabilities and owner's equity 20,748,354,706.28 20,791,464,374.54
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3. Consolidated Income Statement
Unit: RMB
Item First half year of 2021 First half year of 2020
I. Total operating income 4,855,998,263.50 2,807,980,480.60
Including:operating income 4,855,998,263.50 2,807,980,480.60
Interest income
Premium earned
Fee and commission income
II. Total operating costs 5,085,316,223.70 3,244,547,876.16
Including:operating cost 2,684,951,238.24 1,452,611,180.39
Interest expense
Fee and commission expenses
Surrender money
Net reimbursement expenditure
Withdrawal of net insurance liability contract reserves
Policyholder dividend expenses
Reinsurance expenses
Taxes and surcharges 15,817,550.99 6,277,633.04
Sales expenses 975,972,472.83 700,817,453.92
Management expenses 607,894,812.80 518,959,454.14
R&D expenses 542,875,812.43 383,227,531.01
Financial expenses 257,804,336.41 182,654,623.66
Including:interest expenses 126,914,597.79 85,130,012.11
Interest income 24,674,100.13 2,889,907.48
Add:other income 63,597,930.11 84,454,707.44
Investment income (Loss is listed with “-”) 61,423,487.06 128,818,126.44
Including:investment income from associates and joint ventures
Derecognition income of financial assets measured at amortized
cost
Exchange earnings (Loss is listed with “-”)
Net exposure hedge income (Loss is listed with “-”)
Fair value change income (Loss is listed with “-”) 9,068,865.15
Expected credit loss (Loss is listed with “-”) -1,449,153.75 -770,761.79
Asset impairment loss (Loss is listed with “-”)
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Asset disposal income (Loss is listed with “-”) -168,828.03 162,043.59
III. Operating profit (Loss is listed with “-”) -96,845,659.66 -223,903,279.88
Add:non-operating income 37,698.84 20,148.00
Less:non-operating expenses 349,054.25 93,502.28
IV. Total profit (The total loss is listed with “-”) -97,157,015.07 -223,976,634.16
Less:income tax expenses 7,582.67 9,055,694.44
V. Net profit (Net loss is listed with “-”) -97,164,597.74 -233,032,328.60
i. Classified by business continuity
1.Net profit from continuing operations (Net loss is listed with “-”) -97,164,597.74 -233,032,328.60
2.Net profit from discontinued operations (Net loss is listed with “-”)
ii. Classification by ownership
1. Net profit attributable to the owner of the parent company -97,162,509.03 -233,026,645.16
2. Minority shareholders' gains and losses -2,088.71 -5,683.44
VI. Net other comprehensive income
Net other comprehensive income attributable to the parent company owner
i. Other comprehensive income that cannot be reclassified into profit or
loss
1. Changes from the remeasurement of the defined benefit plan
2. Other comprehensive income that cannot be transferred to profit or
loss under the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the company's own credit risk
5. Other
ii. Other comprehensive income that will be reclassified into profit or loss
1. Other comprehensive income of convertible profit and loss under
the equity method
2. Changes in fair value of other debt investments
3. Financial assets reclassified into other comprehensive income
4. Credit impairment provisions of other debt investment
5. Cash flow hedge reserve
6. Foreign currency financial statement translation difference
7.Other
Net other comprehensive income attributable to minority shareholders
VII. Total comprehensive income -97,164,597.74 -233,032,328.60
Total comprehensive income attributable to owners of the parent -97,162,509.03 -233,026,645.16
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Total comprehensive income attributable to minority shareholders -2,088.71 -5,683.44
VIII. Earnings per share:
i. Basic earnings per share -0.02 -0.04
ii.Diluted earnings per share -0.02 -0.04
If a business combination under the same control occurs in the current period, the net profit realized by the combined party before the
combination is: RMB 0.00. The net profit realized by the combined party in the previous period was: RMB 0.00.
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of accounting department: Luo Xue
4. Parent company income statement
Unit: RMB
Item First half Year of 2021 First half Year of 2020
I. Operating income 7,278,174.71 7,276,570.86
Less:operating cost 5,632,943.03 5,667,932.11
Taxes and surcharges 2,217,898.16 2,120,841.35
Sales expenses
Management expenses 10,918,194.18 2,930,657.06
R&D expenses
Financial expenses 22,843,885.71 10,672,898.30
Including:interest expenses 22,918,691.67 10,703,779.17
Interest income 87,954.96 43,607.28
Add:other income 138,234.55 474,801.04
Investment income(Loss is listed with “-”) 1,330,502.21
Including: investment income from associates and joint
ventures
Derecognition income of financial assets measured
at amortized cost
Net exposure hedge income (Loss is listed with “-”)
Fair value change income (Loss is listed with “-”) 23,173.91
Expected credit loss (Loss is listed with “-”) -764,039.94 -382,019.97
Asset impairment loss (Loss is listed with “-”)
Asset disposal income (Loss is listed with “-”) -223,987.77
II.Operating profit(Loss is listed with “-”) -33,830,863.41 -14,022,976.89
Add: non-operating income
Less: non-operating expenses
III. Total profit(The total loss is listed with “-”) -33,830,863.41 -14,022,976.89
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Less:income tax expenses -185,216.51 -95,504.99
IV. Net profit(Net loss is listed with “-”) -33,645,646.90 -13,927,471.90
i. Net profit from continuing operations(Net loss is listed with “-”) -33,645,646.90 -13,927,471.90
ii. Net profit from discontinued operations(Net loss is listed with “-”)
V. Net other comprehensive income
i. Other comprehensive income that cannot be reclassified into profit
or loss
1.Changes from the remeasurement of the defined benefit plan
2.Other comprehensive income that cannot be transferred to
profit or loss under the equity method
3.Changes in fair value of other equity instruments
4.Changes in fair value of the company's own credit risk
5.Other
ii. Other comprehensive income that will be reclassified into profit or
loss
1.Other comprehensive income of convertible profit and loss
under the equity method
2.Changes in fair value of other debt investments
3.Financial assets reclassified into other comprehensive
income
4.Credit impairment provisions of other debt investment
5.Cash flow hedge reserve
6.Foreign currency financial statement translation difference
7.Other
VI. Total comprehensive income -33,645,646.90 -13,927,471.90
VII. Earnings per share:
ⅰ Basic earnings per share
ⅱ Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item First half Year of 2021 First half Year of 2020
I. Cash flow from operating activities:
Cash received from the sale of goods and services 4,268,598,303.00 7,685,015,351.32
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central bank
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Net increase in funds borrowed from other financial institutions
Cash received from the original insurance contract premium
Net cash received from reinsurance business
Net increase in policyholders’ deposits and investment funds
Cash charged with interest, handling fees and commissions
Net increase in funds borrowed in
Net increase in repurchase funds
Net cash received from agent buying and selling of securities
Tax refund
Other cash received related to other business activities 55,211,569.96 14,139,064.39
Subtotal of cash inflow from operating activities 4,323,809,872.96 7,699,154,415.71
Cash paid for the purchase of goods and services 965,750,873.57 519,654,701.91
Net increase in customer loans and advances
Net increase in deposit of central bank and interbank
Cash paid for the original insurance contract
Net increase in borrowed funds
Cash paid for interest, handling fees and commissions
Cash paid for policy dividends
Cash paid to and for employees 3,545,895,731.44 2,295,211,119.61
Various taxes paid 192,705,882.06 199,637,364.28
Other cash paid for business activities 558,548,843.84 620,975,725.72
Subtotal of cash outflows from business activities 5,262,901,330.91 3,635,478,911.52
Net cash flow from operating activities -939,091,457.95 4,063,675,504.19
II. Cash flows from investing activities:
Cash received from investment recovery 7,306,410,000.00 17,567,171,173.89
Cash received from investment income 220,793,791.47 91,865,286.31
Net cash received from disposal of fixed assets, intangible assets and
-168,828.03 162,043.59
other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received related to investing activities
Subtotal of cash inflows from investment activities 7,527,034,963.44 17,659,198,503.79
Cash paid for the purchase and construction of fixed assets, intangible
2,800,021,379.76 844,329,065.33
assets and other long-term assets
Cash paid for investment 5,584,550,000.00 17,970,288,090.00
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Net increase in pledge loans
Net cash paid for r acquiring subsidiaries and other business units
Other cash paid related to investing activities
Subtotal of cash outflows from investment activities 8,384,571,379.76 18,814,617,155.33
Net cash flows from investing activities -857,536,416.32 -1,155,418,651.54
III. Cash flow from financing activities:
Cash received from investment absorption
Including:cash received from subsidiaries in absorbing minority
shareholders' investment
Cash received from the loan 2,769,000,000.00 2,320,000,000.00
Other cash received related to fundraising activities
Subtotal of cash inflows from financing activities 2,769,000,000.00 2,320,000,000.00
Cash paid for debt repayment 2,867,000,000.00 1,730,000,000.00
Cash paid for dividends, profits or interest payments 103,069,077.75 1,556,459,462.95
Including:dividends and profits paid by subsidiaries to minority
shareholders
Other cash paid related to financing activities 392,129,451.92 333,478.85
Subtotal of cash outflows from financing activities 3,362,198,529.67 3,286,792,941.80
Net cash flow from financing activities -593,198,529.67 -966,792,941.80
IV. Effect of the changes of the exchange rate on cash and the equivalents
V. Net increase in cash and cash equivalents -2,389,826,403.94 1,941,463,910.85
Add:balance of cash and cash equivalents at the beginning of the
5,950,036,489.12 2,724,335,001.58
period
VI. Balance of cash and cash equivalents at the end of the period 3,560,210,085.18 4,665,798,912.43
6. Parent company cash flow statement
Unit: RMB
Item First half Year of 2021 First half Year of 2020
I. Cash flow from operating activities:
Cash received from the sale of goods and services
Tax refund
Other cash received related to other business activities 3,566,724.42 1,748,092.19
Subtotal of cash inflow from operating activities 3,566,724.42 1,748,092.19
Cash paid for the purchase of goods and services
Cash paid to and for employees
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Various taxes paid 2,398,724.13 2,606,189.88
Other cash paid for business activities 354,011,436.05 707,635,847.22
Subtotal of cash outflows from business activities 356,410,160.18 710,242,037.10
Net cash flow from operating activities -352,843,435.76 -708,493,944.91
II. Cash flows from investing activities:
Cash received from investment recovery 1,600,000.00
Cash received from investment income 1,330,502.21 1,700,000,000.00
Net cash received from disposal of fixed assets, intangible assets and
-223,987.77
other long-term assets
Net cash received from disposal of subsidiaries and other business
units
Other cash received related to investing activities
Subtotal of cash inflows from investment activities 2,706,514.44 1,700,000,000.00
Cash paid for the purchase and construction of fixed assets, intangible
300,000,000.00
assets and other long-term assets
Cash paid for investment 1,600,000.00 1,500,000.00
Net cash paid for acquiring subsidiaries and other business units
Other cash paid related to investing activities
Subtotal of cash outflows from investment activities 1,600,000.00 301,500,000.00
Net cash flows from investing activities 1,106,514.44 1,398,500,000.00
III. Cash flow from financing activities:
Cash received from investment absorption
Cash received from the loan 1,000,000,000.00 800,000,000.00
Other cash received related to fundraising activities
Subtotal of cash inflows from financing activities 1,000,000,000.00 800,000,000.00
Cash paid for debt repayment 570,000,000.00
Cash paid for dividends, profits or interest payments 22,726,044.41 1,489,922,632.52
Other cash paid related to financing activities 333,478.85
Subtotal of cash outflows from financing activities 592,726,044.41 1,490,256,111.37
Net cash flow from financing activities 407,273,955.59 -690,256,111.37
IV. Effect of the changes of the exchange rate on cash and the equivalents
V. Net increase in cash and cash equivalents 55,537,034.27 -250,056.28
Add:balance of cash and cash equivalents at the beginning of the
55,780,356.37 6,931,803.33
period
VI. Balance of cash and cash equivalents at the end of the period 111,317,390.64 6,681,747.05
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7. Consolidated Statement of Changes in Owners’ Equity
Current Amount
Unit: RMB
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Offcn Education Technology Co., Ltd. 2020 Semi-Annual Report
Amount of the previous period
Unit: RMB
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8、Statement of Changes in Equity of the Company’s Owners
Current Amount
Unit RMB
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Amount of the previous period
Unit: RMB
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Section III. General Information
1. Overview of the Company
Offcn Education Technology Co., Ltd. (hereinafter referred to as the “Company” or “the Company”) was formerly
known as Yaxia Automobile Co., Ltd. (hereinafter referred to as “Yaxia Auto”). Yaxia Auto, a limited company
established by Wuhu Yaxia Industrial Co., Ltd obtained the Enterprise Business License of Enterprise Legal Person
No. 3402012104768 issued by Wuhu Administration for Industry and Commerce on November 30, 2006. Yaxia
Auto was approved by the China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) for
The approval of the initial public offering of Wuhu Yaxia Automobile Co., Ltd. (CSRC License [2011] No. 1046)
and issued RMB 22 million ordinary shares to the public and traded on the Shenzhen Stock Exchange in August
2011. The controlling shareholder is Anhui Yaxia Industrial Co., Ltd. (hereinafter referred to as “Yaxia Industrial”).
On July 1, 2016, the Company obtained the No. 91340200711040703A “Enterprise Business License of Enterprise
Legal Person” issued by Wuhu Administration for Industry and Commerce.
In accordance with the resolution of the 3rd Extraordinary General Meeting of Yaxia Auto in 2018 and the
resolution of the 24th Board Meeting of the 4th Board of Directors, and approved by China Securities Regulatory
Commission’s The approval of major asset restructuring of Yaxia Automobile Co., Ltd. and the issuance of shares
to Lu Zhongfang and others for asset purchase (Securities Regulatory Commission [2018] No. 1975), Yaxia Auto
swapped all assets and liabilities (“exchange-out assets”) as of the assessment date, excluding the retained assets
that do not constitute business, with the equivalent portion (“exchange-in assets”) of 100.00% of the equity in
Beijing Offcn Education Technology Co., Ltd. (hereinafter referred to as “Offcn Ltd.”) respectively held by 11
transaction counter-parties including Li Yongxin, and paid the difference between the exchange-out assets and the
exchange-in assets by issuing shares.
On December 27, 2018, Yaxia Auto and the counterpart Yaxia Industrial signed the Confirmation of Delivery of
Exchange-out Assets. The delivery date of the exchange-out assets was December 27, 2018. And from the date of
delivery, Yaxia Auto and the counterpart would complete the delivery obligations, regardless of whether the
delivery, ownership change registration or filing procedures of exchange-out assets (including but not limited to
land use rights, housing ownership, intellectual property rights and qualifications, licenses, other intangible assets,
etc.) is actually completed; the ownership of the exchange-out assets belongs to Yaxia Industrial, and all the rights,
obligations, responsibilities and risks related to the disposed assets (including contingent liabilities and implicit
liabilities) are owned and undertaken by Yaxia Industrial, which has the completely exclusive actual control and
disposal rights over the exchange-out assets, while Yaxia Auto no longer has any actual rights. On the same day,
Offcn Ltd. completed the registration procedures for industrial and commercial changes on the matters of
shareholder change. After the completion of this alteration, Yaxia Auto holds a 100.00% stake in Offcn Ltd., and
accordingly, Li Yongxin and Lu Zhongfang become the controlling shareholder and actual controller of the
Company. On February 2, 2019, Yaxia Auto changed its name and its business scope.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
On January 23, 2019, the registration procedures for the transfer of shares of the Company and the new shares of
the Company related to the restructuring transaction were completed. As of June 30, 2021, the Company's share
capital was RMB 6,167,399,389.00.
Unified social credit code: 91340200711040703A
Company residence: Yaxia Automobile City, Yijiang North Road, Jiujiang District, Wuhu City, Anhui Province
Headquarters Address: Hanhua Century Building B, Xueqing Road 23, Haidian District, Beijing
Nature of business: Education
Nature of customer: Mainly natural persons
Business Scope: engaged in technology development, technical services, technology promotion, technology transfer,
technical consulting and the business of education and training (reserved to branches) in the field of education and
technology; holding exhibitions; organizing cultural and artistic exchange activities (excluding performances);
offering conference services and consulting services of enterprise management. (Projects subject to approval
according to the law can be carried out under the approval of the relevant departments)
The Financial Statements were approved by the Board of Directors of the Company on August 30, 2021.
2. The scope of the consolidated financial statements
The consolidated scope of the consolidated financial statements of the Company is determined on a control basis,
including the financial statements of the Company and all subsidiaries. A subsidiary is an enterprise or entity
controlled by the Company. The scope of the consolidated financial statements is detailed in Note IX (1) “Interest
in subsidiaries” of this report; changes in the scope of consolidated financial statements are detailed in Note VIII.
“Changes in the Consolidated Scope” of this report.
Section IV. Basis for Preparation of Financial Statements
1. Basis of preparation
The financial statements are prepared on a going concern basis, according to the actual transactions and the relevant
provisions of the Accounting Standards for Business Enterprises (collectively referred to as the “CASs”), and based
on the important accounting policies and accounting estimates described below.
2. Going concern
The Company evaluated the ability to continue operations for 12 months from the end of the reporting period and
did not find any matters and situations that may cast significant doubts on the ability to continue operations.
Therefore, it is reasonable for the Company to prepare financial statements on a going concern basis.
Section V. The Company’s Significant Accounting Policies and Accounting Estimates
Notes on specific accounting policies and accounting estimates:
None
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
1. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements based on the above-mentioned preparation basis meet the requirements of the latest CASs
and its application guidelines, interpretations, and other relevant regulations issued by the Ministry of Finance,
which truly and completely present the Company’s financial position, business performance, cash flows and other
information for the year then ended. In addition, the financial report is compiled by reference to the listing and
disclosure requirements of the Rules for the Information Disclosure and Compilation of Companies Publicly
Issuing Securities NO.15 — General Provisions for Financial Report (Revised in 2014) of the CSRC as well as the
Notice on Implementation of the New Accounting Standards for Listed Companies (Letter of the Accounting
Department [2018] no. 453).
2. Accounting period
The Company’s accounting period starts on January 1 and ends on December 31.
3. Business cycle
The Company’s business cycle starts on January 1 and ends on December 31.
4. Recording currency
The Company adopts Renminbi (RMB) as their recording currency.
5. The accounting treatment of business combinations involving enterprises under common control and
business combinations not involving enterprises under common control
5.1 The accounting treatment of business combinations involving enterprises under common control
The Company achieves a merger under the same control in one transaction or through step-by-step multiple
transactions. Assets and liabilities obtaining from the merger of enterprise are measured according to the share of
book value of consolidated financial statements of final controlling party under the owner’s equity of combined
party within combining date. The difference between the book value of the net assets obtained by the Company and
book value of combined consideration paid (or the aggregate face value of shares issued as consideration) is
adjusted to the capital reserve; if the capital reserve is insufficient to offset, the retained earnings shall be adjusted.
5.2 The accounting treatment of business combinations involving enterprises under uncommon control
Where the cost of combination exceeds the acquiree’s interest in the fair value of the acquiree’s identifiable net
assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial
recognition. If the combination cost is less than the share of identifiable fair value of net assets of acquiree, firstly,
conducting the review of measurement is necessary to achieve the acquiree the identifiable assets, liabilities and the
fair value of contingent liabilities as well as the combination costs. If the acquiree combination costs after reviews
are still less than the fair value of identifiable net asset, the difference will be added into the current profits and
losses.
To achieve business combinations not under common control by step-by-step multiple transactions should be
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handled in the following order:
(1) Adjust the initial investment cost of long-term equity investments. If the equity held before the purchase date is
accounted for using the equity method, it is remeasured at the fair value of the equity on the purchase date, and the
difference between the fair value and its book value is included in the current investment income; Changes in other
comprehensive income and other owners’ equity under the equity method shall be converted to the current income
at the acquisition date, except for other comprehensive income arising from the net liabilities or net assets’ changes
of the benefit plan remeasured by the investee.
(2) Recognize goodwill (or the amount included in the current profit or loss). Compare the initial investment cost of
the adjusted long-term equity investment with the fair value of the identifiable net assets of the subsidiary that
should be enjoyed on the purchase date. If the former is greater than the latter, the difference is recognized as
goodwill; the former is less than the latter, and the difference is booked into the current profit and loss.
Circumstances of disposing of equity through step-by-step multiple transactions to the loss of control over
subsidiaries
(1) Determine whether the various transactions in the process of step-by-step disposal of equity to the loss of
control over subsidiaries follow the “package deal” principle
Generally transactions in stages are treated as a package deal in accounting if the transaction terms, conditions, and
economic impact of the disposal of the subsidiary’s equity interests comply with one or more of the following:
1) These transactions are made simultaneously or with consideration of influence on each other;
2) These transactions can only achieve a complete business outcome when treated as a whole;
3) The occurrence of a transaction depends on the occurrence of at least one of the other transactions;
4) A transaction is uneconomical when treated alone, but is economical when considered together with other
transactions.
(2) The accounting method of each transaction belonging to the “package deal” in the process of disposing of the
equity in stages to the loss of control over the subsidiary
All the transactions, belonging to the package deal in the process of disposing of equity investments in subsidiaries
to the loss of control, should be accounted for as one transaction disposing of the subsidiary to the loss of control
over it; however, the difference between each disposal price and the share of the subsidiary’s net assets obtained by
the disposal of investment before the loss of control shall be recognized as other comprehensive income in the
consolidated financial statements and shall be transferred to the profit and loss of the period when the control is
lost.
In the consolidated financial statements, the remaining equity should be remeasured at its fair value on the date
when the control is lost. The difference between the sum of the consideration obtained from the disposal of the
equity and the fair value of the remaining equity, and the shares of the net assets of the original subsidiary
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calculated from the purchase date based on the original shareholding ratio, shall be included in the investment
income of the period when the control is lost. Other comprehensive income related to the original subsidiary’s
equity investment shall be converted to current investment income when control is lost.
(3) The accounting method of each transaction not belonging to the “package deal” in the process of disposing of
the equity in stages to the loss of control over the subsidiary
If the disposal of the investment in the subsidiary does not lose control, the difference between the disposal price in
the consolidated financial statements and the share of the subsidiary’s net assets obtained from the disposal of
investment is included in the capital reserve (capital premium or equity premium). If the capital premium is
insufficient to offset, the retained earnings should be adjusted.
When the control over disposing of the investment in a subsidiary is lost, in the consolidated financial statements,
the remaining equity should be remeasured at its fair value on the date when control is lost. The sum of the
consideration obtained from the disposal of equity and the fair value of the remaining equity minus the share of the
net assets that should be calculated by the original subsidiary from the date of purchase based on the original
shareholding ratio is included in the investment income of the period when the control is lost. Other comprehensive
income related to the equity investment of the original subsidiary shall be converted to current investment income
when control is lost.
6. Preparation of consolidated financial statements
Consolidated financial statements based on the Parent’s and its subsidiaries’ financial statements are prepared by
the Company in accordance with the CASs No.33 — Consolidated financial statement and other relevant materials.
7. Classification of joint arrangement and accounting methods of joint operations
7.1 Identification and classification of joint arrangements
A joint arrangement refers to an arrangement jointly controlled by two or more parties. The joint arrangement has
the following characteristics: (1) all participants are bound by the arrangement; (2) two or more participants
exercise joint control over the arrangement. No single party shall be able to control the arrangement, and any party
that has joint control over the arrangement shall be able to prevent any other party or combination of parties from
controlling the arrangement alone.
Joint control refers to the shared control over a certain arrangement as required in the contract. And the decision
about the activities of the arrangement can be made only when all participants with the shared control have
consented.
A joint arrangement is classified as either a joint operation or a joint venture. A joint operation is a joint
arrangement whereby the joint operators have rights to the assets, and obligations for the liabilities, related to the
arrangement. A joint venture is a joint arrangement whereby the joint parties only have the rights to the net assets
under this arrangement.
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7.2 Accounting treatment of joint arrangements
A joint operator shall recognize the following items in relation to its interests in a joint operation, and account for
them in accordance with relevant accounting standards: (1) Its solely-held assets, and its share of any assets held
jointly; (2) Its solely-assumed liabilities, and its share of any liabilities incurred jointly; (3) Its revenue from the
sale of its share of the output arising from the joint operation; (4) Its share of the revenue from sale of the output by
the joint operation; (5) Its solely-incurred expenses and its share of any expenses incurred jointly.
The participants in a joint venture shall, in accordance with the Accounting Standards for Enterprises No.2 —
Long-term Equity Investment, make accounting arrangements for the investment of the joint venture.
8. Criteria for the recognition of cash and cash equivalents
The term “cash” in cash flow statement refers to cash on hand and deposits that are available for payment at any
time. The term of “cash equivalents” refers to short-term (usually due within 3 months from the purchase date) and
highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk
of changes in value.
9. Translation of foreign currency transactions and foreign currency statement
9.1 Translation of transactions denominated in foreign currencies
On initial recognition, a foreign currency amount is translated into the amount denominated in RMB by applying
the spot exchange rate on the date of the transaction announced by People’s Bank of China. At the balance sheet
date, foreign currency balance comprised of foreign currency monetary items shall be translated at the spot
exchange rate on the balance sheet date, and the exchange differences caused by different exchange rates, except
the exchange difference of the principal and interest of foreign currency special loans related to the acquisition and
construction of assets that meet the capitalization conditions, shall be included into profit and loss for the period;
foreign currency non-monetary items measured at historical cost are still converted at the spot exchange rate on the
transaction date, and their RMB amount is not changed; foreign currency non-monetary items measured at fair
value, are translated at the spot exchange rate on the fair value determination date, and the difference shall be
included into profit and loss for the period or other comprehensive income.
9.2 Translation of financial statements denominated in foreign currencies
The assets and liabilities of the balance sheet are translated at the spot exchange rate of the balance sheet date; all
items about the owner’s equity except the “undistributed profits” are translated at the spot exchange rate on the
transaction date; the revenue and expenses in the income statement are translated at the approximate rate of the spot
exchange rate on the transaction date. Differences arising from the above translation of financial statements
denominated in foreign currencies are recognized as other comprehensive income.
10. Financial instruments
10.1 Recognition and derecognition of financial instruments
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The Company recognizes a financial asset or a financial liability when it becomes the contractual party of the
financial instrument.
All regular ways of purchasing or selling of financial assets are recognized and derecognized on a trade date basis.
Regular ways of purchasing or selling mean that the receiving or delivery of financial assets should be within the
time limit stipulated by regulations or common practices, as agreed in the terms of the contract. Trade date is the
date on which the Company promises to buy in or sell out the financial assets.
The Company will derecognize the financial assets (either a part, or a part of a similar group), and write it off the
account and the balance sheet, if following conditions are met:
(1) Expiration of the right to receive cash flows from financial assets;
(2) The Company’s right to receive cash flows from financial assets has been transferred, or bear the obligation to
pay all cash received to the third party in time due to “Hand-Over arrangement”; and (a) almost all risks and
benefits of the ownership of the financial assets have been transferred virtually, or (b) though none of risks and
benefits of the ownership the financial assets have been transferred or retained virtually, the Company waives the
control of the financial assets.
10.2 Classification and measurement of financial assets
According to the business model for managing financial assets and the contractual cash flow characteristics of
financial assets, the Company’s financial assets have initially been classified as follows: financial assets measured
at amortized cost, financial assets measured at fair value and the changes are included in other comprehensive
income, and financial assets measured at fair value and the changes are included in profit or loss of the period.
Subsequent measurement of financial assets depends on its categories.
The Company’s classification of financial assets is based on the Company’s business model of managing financial
assets and its characteristics of cash flows.
(1) Financial assets at amortized cost
Financial assets are classified as financial assets at amortized cost when following conditions are met: the
Company’s business model for managing financial assets targets to receive contractual cash flows; The contractual
terms of the financial assets stipulate that the cash flows generated on a specific date are exclusively used to pay the
principal and the interest based on the outstanding principal amount. For such financial assets, effective interest
rate method is applied to subsequently measure them at amortized cost, and gains or losses arising from
amortization or impairment are recognized in current profit or loss.
(2) Liability investment at fair value through other comprehensive income
Financial assets are classified as liability at fair value through other comprehensive income when following
conditions are met: the Company’s business model for managing financial assets targets at both the receiving of
contractual cash flows and the sale of financial assets; the contractual terms of the financial asset stipulate that the
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cash flows generated on a specific date are exclusively used to pay the principal and the interest based on the
outstanding principal amount. Such financial assets are subsequently measured at fair value. The discount or
premium is amortized by using the effective interest method and recognized as interest income or expense. Except
that the impairment loss and the exchange differences of foreign currency monetary financial assets are recognized
as profit or loss for the period, the changes in the fair value of such financial assets are recognized as other
comprehensive income, and the accumulated gains or losses are transferred into profit or loss until such financial
assets are derecognized. Interest income related to such financial assets is included in the current profit and loss.
(3) Equity investment at fair value through other comprehensive income
The Company irrevocably designated the non-trading equity investment as financial assets at fair value through
other comprehensive income, and the related dividend income is included in profit or loss. The changes of fair
value are included in other comprehensive income and the accumulated gains or losses are transferred to retained
earnings until the financial assets are derecognized.
(4) Financial assets at fair value through profit or loss
Any financial assets that are not recognized as the financial assets at amortized cost or at fair value through other
comprehensive income mentioned above are measured at fair value through profit or loss. At the time of initial
recognition, in order to eliminate or significantly reduce accounting mismatches, financial assets can be designated
as financial assets at fair value through profit or loss. Such financial assets are subsequently measured at fair value,
and all changes in fair value are recognized in profit or loss.
When and only when, the Company changes its business model for managing financial assets it must reclassify all
affected financial assets.
For financial assets at fair value through profit or loss, the related-party transaction expense is directly recognized
in current profit or loss as incurred. And other financial assets’ transaction expense is included in the initial
recognition amount.
10.3 Classification and measurement of financial liabilities
The Company’s financial liabilities have initially been classified as follows: financial liabilities at amortized cost
and financial liabilities at fair value through profit or loss.
The financial liabilities meeting any of the following conditions can be initially designated as the financial
liabilities at fair value through profit and loss: (1) Such designation can eliminate or significantly reduce accounting
mismatches. (2) According to corporate risk management or investment strategies as stated in formal written
documents, the management and performance evaluation of financial liability portfolios or combinations of
financial assets and financial liabilities are based on fair value, and reported to key management personnel on this
basis within the enterprise. (3) Such financial liabilities include embedded derivatives that need to be split
separately.
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The Company determines the classification of financial liabilities at initial recognition. For financial liabilities
measured at fair value through profit or loss, the related-party transactionexpense is directly recognized in current
profit or loss. The related-party transactionexpense of other financial liabilities is included in the initial recognition
amount.
Subsequent measurement of financial liabilities depends on its categories:
(1) Financial liabilities at amortized cost
Such financial liabilities are subsequently measured by using the effective interest rate method at amortized cost.
(2) Financial liabilities at fair value through profit or loss
Financial liabilities measured at fair value and booked into current profits and losses, which includes trading
financial liabilities (including derivatives of financial liabilities) and those initially designated as financial liabilities
at fair value through profit or loss.
10.4 Offsetting of financial instruments
If the following conditions are met at the same time, the net amount obtained after the offsetting of financial assets
and financial liabilities shall be shown in the balance sheet: there is a legal right to offset the recognized amount,
and such legal right is currently enforceable; plan to settle on a net basis, or cash the financial assets and liquidate
the financial liabilities at the same time.
10.5 Impairment of financial assets
The Company undertakes impairment treatment and confirms loss provisions based on expected credit losses as for
the financial assets at amortized cost, debt instrument investments at fair value through other comprehensive
income . financial guarantee contracts and etc.. Credit loss refers to the difference between the cash flow of all
contracts discounted at the original effective interest rate and the expected cash flow of all contracts receivables, i.e.
the present value of all cash shortages.
The Company estimates, individually or in combination, the expected credit losses of financial assets measured at
amortized cost and financial assets (debt instruments) measured at fair value through other comprehensive income,
taking into account all reasonable and evidence-based information, including forward-looking information.
(1) General model of expected credit loss
If the credit risk of the financial instrument has increased significantly since the initial recognition, the Company
shall measure the loss provision at the amount equivalent to the expected credit loss of the financial instrument for
the entire life of the instrument; If the credit risk of the financial instrument has not increased significantly since the
initial recognition, the Company shall measure the loss provision at the amount equivalent to the expected credit
loss of the financial instrument in the next 12 months. The increase or rollover amount of the loss provision shall be
recorded in the current profit and loss as an impairment loss or gain. For the Company’s specific assessment of
credit risk, please refer to this report Note X “Risks Associated With Financial Instruments” for details.
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The credit risk of the instrument is generally deemed to have increased significantly if the default is more than 30
days, unless there is conclusive evidence that the credit risk of the instrument has not increased significantly since
the initial recognition.
Specifically, the Company divides the process of credit impairment of financial instruments without credit
impairment at the time of purchase or origination into three stages. There are different accounting treatments for the
impairment of financial instruments at different stages:
Stage 1: credit risk has not increased significantly since initial recognition.
For the financial instrument at this stage, the Company shall measure the loss provision according to the expected
credit loss in the next 12 months, and calculate the interest income according to its book balance (that is, the
impairment provision is not deducted) and the actual interest rate (if the instrument is a financial asset, the same as
below).
Stage 2: Credit risk has increased significantly since the initial recognition, but credit impairment has not yet
occurred.
For a financial instrument at this stage, the Company shall measure the loss provision according to the expected
credit loss of the instrument throughout its life, and calculate interest income according to its book balance and
actual interest rate.
Stage 3: Credit impairment occurs after initial recognition.
For the financial instrument in this stage, the Company shall measure the loss provision according to the expected
credit loss of the instrument throughout its lifetime, but the calculation of interest income is different from that of
the financial asset in the first two stages. For the financial assets whose credit impairment has occurred, the
Company shall calculate the interest income at their amortized cost (book balance less the impairment provision,
that is, book value) and the actual interest rate.
For financial assets whose credit impairment has occurred at the time of purchase or origin, the Company shall only
recognize the changes in the expected credit loss during the whole duration after the initial recognition as loss
provision, and calculate interest income at their amortized cost and the actual interest rate adjusted by credit.
(2) The Company chooses not to compare the credit risk of a financial instrument with a lower credit risk on the
balance sheet date with the credit risk at the time of the initial recognition, but directly assumes that the credit risk
of the instrument has not increased significantly since the initial recognition.
If the Company confirms that the default risk of the financial instruments is low, the borrowers’ short-term ability
to fulfill its obligation to pay the contract cash flow is very strong, and even the economic situation and business
environment is in a long-term adverse change, the borrower’s ability to fulfill its obligation to pay the contract
cash flow will not be necessarily reduced, then the financial instruments can be deemed with a lower credit risk.
(3) Receivables and lease receivables
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The Company, for the receivables stipulated in the Accounting Standards for Enterprises No. 14 — Revenues and
without major financing elements (including the situation when the financing elements no more than a year in the
contract are not taken into consideration according to the Standards), adopts the simplified model of expected credit
losses, and measures the loss provision always in accordance with the expected amount of credit losses throughout
the duration.
For receivables containing significant financing elements and lease receivables specified in the Accounting
Standards for Business Enterprises No. 21 — Leasing, the Company makes an accounting policy choice and adopts
a simplified model of expected credit loss, that is, to measure the loss provision according to the amount equivalent
to the expected credit loss in the whole duration.
10.6 Financial assets transfer
If almost all the risks and rewards of ownership of financial assets have been transferred to the transferee, the
financial assets are derecognized; if almost all the risks and rewards of ownership of the financial assets are
retained, the financial assets are not derecognized.
Neither transfer nor retain almost all risks and rewards of ownership of financial assets, which are dealt with as
follows: if the control of financial assets are waived, derecognize the financial assets and recognize the assets and
liabilities; if not, it needs to recognize the relevant financial assets according to the extent to which they continue to
be involved in the transferred financial assets, and recognize the related liabilities.
If the transferred financial assets are continued to be involved by financial warranty, the assets should be
recognized at the lower one between the book value of the financial assets and the financial warranty amount. The
financial warranty amount refers to the maximum amount of the consideration received that will be required to be
repaid.
11. Notes receivable
None
12. Accounts receivable
For accounts receivable, whether significant financing is involved in or not, the simplified model of expected credit
loss is adopted. The Company will always measure its provision for loss based on the amount equivalent to the
expected credit loss of its entire duration, and the increase or reversal amount of the provision for loss resulting
therefrom is included in the profit and loss of the period as an impairment loss or gain.
The Company considers all reasonable and evidence-based information, including forward-looking information, to
estimate the expected credit loss of the accounts receivables individually or in combination.
When a single financial asset can evaluate the expected credit loss at a reasonable cost, the Company chooses to
calculate the credit loss individually. When a single financial asset cannot evaluate the expected credit loss at a
reasonable cost, the Company will divide the accounts receivables into several combinations in accordance with the
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characteristics of credit risk, and the expected credit loss is calculated on the basis of the combination. The basis for
determining the combination is as follows:
Types of combination Determining the basis of the combination
Combination 1 Receivables from related companies
Combination 2 Receivables from hotel services
Combination 3 Other receivables
For the accounts receivable classified as a combination, the Company refers to the historical credit loss experience,
and combines the current situation and the forecast of future economic conditions, to prepare a comparison table of
the age of accounts receivable and the expected credit loss rate for its entire duration and calculate the expected
credit loss.
13. Receivables financing
If a financial asset meets the following conditions at the same time, it is recognized as a financial assets at fair
value through other comprehensive income: the Company’s business model for managing the financial asset is to
both collect contractual cash flows and sell financial assets.The contractual terms of the financial asset stipulate that
the cash flows generated on a particular date are only used as payment of principal and interest based on the
amount of outstanding principal.
The Company transfers the receivables held by discount or endorsement with a high frequency and a large amount,
and its actual business model of management is characterized by both receiving contractual cash flows and selling
them. In accordance with the relevant provisions about financial instruments, the receivables mentioned above are
recognized as financial assets at fair value through other comprehensive income.
14. Other receivables
Determination method and accounting treatment method of expected credit loss of other receivables
The Company adopts the general model of expected credit loss to deal with other receivables, as detailed in Note V
(10) “Financial Instruments”.
The Company considers all reasonable and substantiated information, including forward-looking information, to
estimate the expected credit loss of other receivables individually or in combination.
When single financial assets can evaluate the expected credit loss at a reasonable cost, the Company chooses to
calculate the credit loss individually. When a single financial asset cannot evaluate the expected credit loss at a
reasonable cost, the Company will divide the other receivables into severalportfolios in accordance with the
characteristics of credit risk, and the expected credit loss is calculated on the basis of the combination. The basis for
determining the combination is as follows:
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Type of combination Determining the basis of the combination
Combination 1 Receivables from related parties
Combination 2 Receivables from employee reserve funds, deposits, and security deposits
Combination 3 Receivables not in Combination 1 and Combination 2
For other receivables divided into portfolios, the Company refers to the historical credit loss experience and
combines the current situation and the forecast of future economic conditions, to calculate the expected credit loss
based on default risk exposure and expected credit loss rate in the next 12 months or the whole duration.
15. Inventory
15.1 Classification of inventories
Inventories refer to the finished goods or commodities held for sale in daily activities, goods in progress in the
production process, and consumed materials and supplies in the process of production or providing services.
15.2 Method of valuation for delivery of inventory
The monthly weighted average method is used to deliver the inventory.
15.3 The basis for determining the net realizable value of inventories and the method of accruing inventory
depreciation reserves
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the net realizable
value is below the cost of inventories, a provision for decline in value of inventories is made. For inventories
directly used for sale, in the normal production and operation process, the net realizable value is determined by the
amount of the estimated selling price of the inventory less the estimated sales cost and relevant taxes and fees; for
material inventories that need to be processed, in the normal production and operation process, the net realizable
value is determined by the amount of the estimated selling price of finished products produced less the estimated
cost to be occurred during the producing process, the estimated selling expenses and related taxes and fees; on the
balance sheet date, if some of the inventory has contractual price and the others do not , the net realizable value is
determined separately and by comparing with its corresponding cost, the amount of the provision for inventory
depreciation or reversal is determined separately.
15.4 Inventory stocktaking system
The perpetual inventory system is maintained for inventory stocktaking system.
15.5 Amortization of low-value consumables and packages
(1) Low-value consumables
Low-value consumables are amortized by one-time write-off.
(2) Packages
Packages are amortized by one-time write-off.
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16. Contract assets
16.1 Method and standard for determination of contract assets
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between the
performance of obligations and customer payments. The consideration (except the receivables) that the Company
has the right to receive in exchange for goods or services that the Company has transferred to the customer is listed
as contract assets.
16.2 Methods for determining and accounting of expected credit loss of contract assets
For contract assets, whether significant financing is involved in or not, the simplified model of expected credit loss
is adopted. The Company will always measure its provision for loss based on the amount equivalent to the expected
credit loss of its entire duration, and the increase or reversal amount of the provision for loss resulting therefrom is
included in the profit and loss of the period as an impairment loss or gain.
17. Contract costs
Contract costs are divided into contract performance costs and contract acquisition costs.
The cost incurred by the Company to perform the contract is recognized as an asset as the contract performance
cost when meeting the following conditions:
1. The cost is directly related to a current or expected contract, including direct labor and materials expenses,
manufacturing expenses (or similar expenses), clearly defined costs borne by the customer, and other costs incurred
only due to the contract;
2. The cost increases the Company's future resources for fulfilling contract obligations;
3. The cost is expected to be recovered.
If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered, it is
recognized as an asset as the cost of obtaining the contract; however, if the amortization period of the asset does not
exceed one year, the Company could include it in the current profits and losses when it occurs.
Assets related to contract costs are amortized on the same basis as the revenue of goods or services related to the
asset.
If the book value of assets related to contract costs is higher than the difference between the following two items,
the Company will make provisions for impairment for the excess part and recognize it as the asset impairment loss:
1. The remaining consideration expected to be obtained due to the transfer of goods or services related to the asset;
2. Costs estimated to incur for the transfer of the related goods or services
If the aforementioned asset impairment provision is subsequently reversed, the book value of the asset after reversal
shall not exceed the book value of the asset on the date of reversal under the assumption that no impairment
provision is made.
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18. Holding for sale
The Company divides the corporate components (or non-current asset) that meet all of the following conditions into
holding for sale:(1) Based on the usual practice of selling such assets or disposal groups in similar transactions,
they can be sold immediately under current conditions; (2) The sale is highly probable, a resolution has been made
on a sale plan, a firm purchase commitment (a firm purchase commitment refers to a legally binding purchase
agreement signed by the enterprise and other parties.The agreement has important items about transaction price,
time and sufficiently severe default penalty so there is little possibility of significant adjustment or revocation of
the agreement) has been obtained and it is expected that the sale will be completed within one year. Approvals from
relevant authorities or regulatory authorities have been obtained in accordance with relevant regulations.
The Company adjusts the expected net salvage value held for sale to reflect the net amount of its fair value less
costs to sell (not over its original book value). The difference between the original book value and the adjusted net
residual value is included in the profit or loss of the current period as an asset impairment loss. At the same time,
provision for impairment of assets held for sale is made. For the amount of impairment loss of assets confirmed by
the disposal group held for sale, the book value of goodwill in the disposal group should be offset first, and then the
the book value should be offset on the proportion of the book value of various non-current assets in the disposal
group which is applicable to the measurement requirements of this standard.
If the net value of the fair value of the non-current assets held for sale on the balance sheet date less than the selling
expenses increases, the amount of the previous write-down shall be restored, it shall be reversed within the amount
of asset impairment loss recognized after being classified as held for sale, and the reversed amount shall be
included in the current profit and loss. The amount of the loss is reversed and the amount reversed is included in the
current profit or loss. Impairment losses on assets recognized prior to classification as held for sale shall not be
reversed. If the net value of the fair value of the disposal group held for sale on the subsequent balance sheet day
less than the selling expenses increases, the amount previously written down shall be restored, it shall be reversed
within the amount of asset impairment loss recognized by the non-current assets which are applicable to the
measurement requirements of this standard after being classified as held for sale, and the reversed amount is
included in the current profit or loss. The book value of the goodwill that has been offset and the asset impairment
loss recognized before the non-current assets applicable to the measurement of this standard are classified as held
for sale shall not be reversed. For the subsequent reversal of the asset impairment loss confirmed by the disposal
group held for sale, the face value shall be increased on the proportion of the book value of various non-current
assets applicable to the measurement requirements of this standard in the disposal group except the goodwill.
If the Company loses control of the subsidiary because of some reasons including its sale of investments in the
subsidiary, it shall classify the overall investment in the subsidiary as held for sale in the parent company’s
individual financial statements and classify all the assets and liabilities of the subsidiary as held for sale in the
consolidated Financial Statements when the investment in the subsidiary to be sold meets the criteria for the held
for sale, whether the Company retains part of the equity investment after the sale.
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19. Debt investment
The Company uses the general model of expected credit losses for debt investment. For details, please refer to Note
V. (10). “Financial Instruments”.
20. Other debt investment
None
21. Long-term receivables
None
22. Long-term equity investments
22.1 Determination of investment costs
(1) In case the enterprise mergers are under same control and the combining party offers combined consideration by
paying in cash, transferring non-cash assets, assuming debt or issuing equity securities, the initial investment cost
shall be book value of the share of the combined party owner’s equity in the consolidated financial statements of
the final control party on the combination date. Capital reserves (capital premium or equity premium) are adjusted
based on the difference between initial investment cost in the long-term equity investment and book value of the
paid merger consideration or the total amount of the face value of the issued shares; if capital reserves are
insufficient to write-downs, it needs to adjust the retained earnings.
Where an enterprise merger under the same control is realized step by step, the initial investment cost shall be the
owner’s equity share in the combined party’s book calculated on shareholding ratio on the merger date. The
difference between the initial investment cost and the book value of the original long-term equity investment plus
the sum of the book values of further consideration paid for the new shares on the merger date is adjusted for
capital reserve (capital premium or equity premium). If capital reserve is insufficient to offset, it needs to adjust the
retained earnings.
(2) If the enterprise mergers are under the same control , the initial investment cost shall be the fair value of merger
consideration paid on the acquisition date.
(3) Except for the situation of enterprise merger: if the purchase is paid in cash, the initial investment cost shall be
the purchase price actually paid; Where equity securities are issued, the fair value of equity securities issued shall
be taken as the initial investment cost; Where an investor invests, the initial investment cost shall be the value
agreed upon in the investment contract or agreement (except where the value agreed upon in the contract or
agreement is not fair).
22.2 Subsequent measurement and recognition methods of profits and losses
For the long-term equity investment controlled by the Company to the investee, the Company shall adopt the cost
method in the individual financial statements of the Company; long-term equity investments with joint control or
significant influence shall be accounted for using the equity method.
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Under the cost method, a long-term equity investment is measured at initial investment cost. Except for the the
price actually paid upon investment or cash dividends or profits already declared but not yet paid in the
consideration, investment income is recognized in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee. And at the same in accordance with the relevant asset
impairment policy, whether the long-term investment is declined in value shall be considered.
For checking by the equity method, if the initial investment cost of the long-term equity investment is greater than
the fair value share of the net identifiable assets of the investee in the investment, the difference between them shall
be classified as initial investment cost of the long-term equity investment; if the initial investment cost of the
long-term equity investment is smaller than the fair value share of the net identifiable assets of the investee in the
investment, the difference is included in current profit and loss and the cost of the long-term equity investment is
adjusted.
When the equity method is adopted, after the acquisition of long-term equity investment, the investment profit and
loss shall be recognized and the book value of long-term equity investment shall be adjusted according to the share
of net profit and loss realized by the investee that should be enjoyed or shared. Upon the confirmation of the
enjoyed share of the net profit and loss from the invested entity, it shall be made on the basis of the fair value of the
identifiable assets of the investee when the investment is acquired, according to the company's accounting policies
and accounting periods, offsetting insider trading profits and losses between associated enterprises and joint
ventures, calculating the proportion that shall be included in investor according to the shareholding ratio (but if
insider trading loss belongs to the asset impairment loss, it should be fully confirmed) and adjusting the net profit
of the investee. According to the profit or cash dividend declared to be distributed by the investee, the share payable
shall be calculated, and correspondingly the book value of the long-term equity investment is reduced. The
company shall recognize the net loss incurred by the investee to the extent that the book value of the long-term
equity investment and other long-term rights and interests substantially constituting the net investment of the
investee shall be written down to zero, except where the company is obligated to bear additional losses. For the
changes of owners' equity other than the net profit and loss of the investee, the book value of the long-term equity
investment shall be adjusted and included in the owners' equity.
22.3 Determine the basis of controlling and significant influence on the invested entity
Control refers to having the power over the investee, enjoying the variable return through participating in the
investee's relevant activities, and having the ability to use the power over the investee to affect the return amount;
major influence means that the investor has the right to participate in the decision making of the financial and
business policies of the investee, but cannot control or jointly control the formulation of these policies with other
parties.
22.4 Disposal of long-term equity investments
(1) Partial disposal of a long-term equity investment in a subsidiary without loss of control
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If part of the long-term equity investment in the subsidiary is disposed of without losing control, the difference
between the disposal price and the book value corresponding to the disposal investment shall be recognized as the
current investment income.
(2) Loss of control over a subsidiary for partial disposal of an equity investment or other reasons
If the Company loses control over the subsidiary due to the disposal of equity investment or other reasons, the book
value of the long-term equity investment corresponding to the sold equity shall be carried forward, and the
difference between the sale price and the book value of the disposal long-term equity investment shall be
recognized as investment income (loss); meanwhile, the remaining equity shall be recognized as long-term equity
investment or other relevant financial assets according to its book value. If the remaining equity after disposal is
able to exert joint control or significant influence on the subsidiary, accounting treatment shall be conducted
according to the relevant provisions of the conversion from cost method to equity method.
22.5 Methods of impairment assessment and determining the provision for impairment loss
For the long term investment in subsidiaries, joint venture and associates, if there is an objective evidence for the
impairment on the balance sheet date, the corresponding impairment provision is made based on the difference
between the book value and the recoverable amount.
23. Investment properties
Measurement model of Investment properties
Measured by cost method
Depreciation or amortization method
23.1 The Company’s investment properties include the land use right that is leased out, the land use right held for
transfer upon capital appreciation, and the building that is leased out.
23.2 The Company initially measures the Investment properties at cost, uses the cost model for subsequent
measurement, and adopts a depreciation or amortization policy for the investment property, which is consistent with
that for fixed assets or intangible assets. On the balance sheet date, if there are signs that the Investment properties
is impaired, the corresponding impairment provision shall be made based on the difference between the book value
and the recoverable amount.
24. Fixed Assets
(1) Recognition criteria for fixed assets
24.1 Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental
to others, or for administrative purposes, and have useful lives of more than one accounting year. Fixed assets are
initially measured at acquisition cost, and depreciated over its useful life using the straight-line method since the
month subsequent to the one in which it is ready for intended use.
(2) Deprecation methods for fixed assets
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Category Deprecation methods Depreciation period (years) Residual value rate (%) Annual depreciation rate (%)
Buildings Straight-line 20-40 年 5% 2.38-4.75%
Decoration of buildings Straight-line 4-10 年 - 10.00-25.00%
Transportation equipment Straight-line 4年 5% 23.75%
Electronic equipment Straight-line 3-5 年 5% 19.00-31.67%
Office equipment Straight-line 3-5 年 5% 19.00-31.67%
(3) Basis of asserting, valuation method and depreciation method for fixed assets acquired under financing leases
None
25. Construction in progress
25.1 Construction in progress should be transferred into fixed assets at its actual costs after it has reached the
working condition for its intended use. Construction in progress that has reached the working condition but not
completed, shall be transferred at its estimated costs. The estimated cost of construction in progress should be
adjusted against the actual costs after completion of settlement, while the depreciation already provided will not be
adjusted.
25.2 On the balance sheet date, if there is any indication that the construction in progress may be impaired, the
corresponding impairment provision shall be made based on the difference between the book value and the
recoverable amount.
26. Borrowing cost
26.1 Recognition criteria of capitalization
Borrowing costs are capitalized when expenditures for such asset and borrowing costs are incurred and activities
relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its
intended use or sale have commenced. Other borrowing costs shall be recognized as expenses when incurred and
shall be included in the current profit and loss.
26.2 Period of capitalization
(1) When borrowing costs meet the following conditions at the same time, capitalization starts 1) Asset expenditure
has occurred. 2) Borrowing costs have incurred 3)The purchase, construction or production activities necessary to
make the assets usable or saleable have started.
(2) Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or
production of a qualifying asset is suspended abnormally and when the suspension is for a continuous period of
more than 3 months. Capitalization is suspended until the acquisition, construction or production of the asset is
resumed.
(3) Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced
becomes ready for its intended use or sale.
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26.3 Capitalization amount of borrowing costs
Where funds are borrowed for the purpose of purchasing, constructing or producing assets that meet the
capitalization conditions, the amount of interest to be capitalized is the actual interest expenses incurred on that
borrowing for the period (including the amortization of discounts or premiums determined in accordance with the
actual interest rate method), less any bank interest earned from depositing the borrowed funds before being used on
the asset or any investment income on the temporary investment. Where general borrowings are occupied for the
purchase, construction or production of assets that meet the capitalization conditions, the Company determines the
amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of
the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general borrowings.
27. Biological assets
None
28. Oil and gas assets
None
29. Right-of-use assets
29.1 Conditions for recognition of right-of-use assets
Right-of-use assets refer to the right of the Company, as a lessee, to use the leased assets during the lease term. The
Company confirms the right-of-use assets to the lease on the starting date of the lease term.The right-of-use asset is
recognized when the economic benefits are likely to flow in and at the same time, the cost can be measured
reliably.
29.2 Initial measurement of right-of-use assets
The Company shall make the initial measurement of right-of-use assets based on the cost. The cost includes the
following four items: 1）the initial measured amount of the lease liability; 2）the payment for lease made on or
before the starting date of the lease term, deducting the amount of lease incentive enjoyed if there’s any; 3)the
incurred initial direct expenses of the lessee; 4) the expected costs to dismantle and remove the leased assets,
restore the site where the leased assets are located, or restore the leased assets to the agreed status stipulated in the
leasing terms.
29.3 Subsequent measurement of right-of-use assets
(1) The Company adopts the cost model to make subsequent measurement of the right-of-use assets.
(2) The Company shall depreciate the right-of-use assets in a straight-line method. If it is reasonable to confirm the
ownership of the leased assets at the end of the lease term, deprecation shall be accrued for the remaining service
life of the leased assets, and if not, deprecation shall be accrued on the shorter term between the lease term and the
remaining service life of the leased assets.
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(3) When the Company remeasures the lease liability based on the present value of the lease payment after the
change, and adjusts the book value of the right-of-use assets accordingly. in the event that the book value of
right-of-use assets has been deducted to zero, and the further deduction of lease liability is needed, the Company
shall include the remaining amount in the current profit and loss.
30. Intangible assets
(1) Valuation method, service life and impairment test
30.1 Intangible assets, including land use rights etc. are recognized at costs.
30.2 Intangible assets with finite useful lives are amortized in accordance with the expected realization method of
the economic benefits related to the intangible asset over its estimated useful life. If it is not possible to reliably
determine the expected realization method, use the straight-line method. The specific years are as follows:
Item Validity period (Year)
Land use rights 40
Software use rights 5-10
Trademark rights 10
30.3 On the balance sheet date, if there is any indication that the intangible assets with definite life has been
impaired, the corresponding impairment provision shall be made based on the difference between the book value
and the recoverable amount. Intangible assets with uncertain service life and intangible assets that have not yet
reached the usable state, whether or not there are signs of impairment, are tested for impairment every year.
(2) Accounting policies for internal research and development expenditure
Expenditure in the research phase of internal research and development projects is included in the current profits
and losses when they occur. Expenditure during the development phase that meets the following conditions at the
same time is recognized as intangible asset. (1) It is technically feasible to complete the intangible asset so that it
will be available for use or sale; (2) The Company has the intention to complete the intangible asset and use or sell
it; (3) The Company can demonstrate the ways in which the intangible asset will generate economic benefits,
including the evidence of the existence of a market for the output of the intangible asset or the intangible asset itself
or, if it is to be used internally, the usefulness of the intangible asset; (4) The availability of adequate technical,
financial and other resources to complete the development and the ability to use or sell the intangible asset; and(5)
The expenditure attributable to the intangible asset during its development phase can be reliably measured.
31. Impairment of long-term assets
The Company make judgement on whether there is any indication that the asset may be impaired at the balance
sheet date.
The goodwill and intangible assets with an uncertain useful life resulting from a business combination was tested
for impairment annually, regardless of whether there is any indication of impairment.
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The impairment should be recorded when the assets occur the following indications:
(1) The market price of assets fell sharply in the current period, and the decline was significantly higher than the
expected decline due to the passage of time or normal use; (2) Significant changes of the economic, technical or
legal environment in which the enterprise operates and the market in which the assets are located will occur in the
current period or in the near future, which will adversely affect the company; (3) The market interest rate or other
market investment returns have increased during the current period, which affects the company’s discount rate for
calculating the present value of the expected future cash flow of assets, leading to the recoverable amount has been
greatly reduced; (4) There is evidence that the assets have become obsolete or their entities have been damaged; (5)
The assets have been or will be idle, terminated or planned to be disposed of in advance; (6)The evidence reported
by the enterprise indicates that economic performance of the assets has been or will be lower than expected, such as
the net cash flow created by the assets or the realized operating profit (or loss) is far lower (or higher) than the
expected amount; (7) Other indications that the asset may have signs of impairment.
If there are any signs of asset impairment, the recoverable amount should be estimated.
The recoverable amount should be determined based on the higher of the net amount of the fair value of the asset
minus the disposal costs and the present value of the estimated future cash flows of the asset.
Disposal costs include legal costs related to asset disposal, related taxes, transportation charges, and direct costs
incurred to make the asset available for sale.
The present value of the estimated future cash flows of the asset should be determined by discounting the amount
of the asset based on the expected future cash flow generated during the continuous use of the asset and at the time
of final disposal. The present value of the expected future cash flow of the asset should take into account factors
such as the estimated future cash flow of the asset, its useful life, and the discount rate.
The measurement results of the recoverable amount indicate that if the recoverable amount of the asset is lower
than its book value, the book value of the asset should be written down to the recoverable amount, and the reduced
amount should be recognized as the asset impairment loss and included in the current profit and loss. Meanwhile,
corresponding provisions for asset impairment should be made.
32. Long-term deferred expense
Long-term deferred expense are recorded according to the actual amount incurred and amortized in the period of
benefit or within the prescribed period. If the long-term deferred expense item cannot benefit the subsequent
accounting period, the amortized value of the item that has not been amortized will be transferred into the current
profit and loss.
33. Contract liabilities
The Company lists contract assets or contract liabilities in the balance sheet based on the relationship between the
performance of obligations and customer payments. The obligation of transferring products or providing services to
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customers after the Company has received the consideration from customers or the consideration is receivable, is
listed as contract liabilities.
34. Employee compensation
(1) Accounting treatment methods of short-term employee remuneration
During the accounting period when the employees provide services, the Company shall recognize the actual
short-term compensation as liabilities and record it into the current profit and loss or the cost of related assets.
Among them, non-monetary welfare is measured according to fair value.
(2)Accounting treatment methods of post-employment benefits
None
(3)Accounting treatment methods of termination benefits
When the Company terminates the employment relationship with employees before the expiration of the
employment contracts or provides compensation as an offer to encourage employees to accept voluntary
redundancy, if the Company has a formal plan for termination of employment relationship or has made an offer for
voluntary redundancy which will be implemented immediately, and the Company cannot unilaterally withdraw
from the termination plan or the redundancy offer, a provision for the compensation payable arising from the
termination of employment relationship with employees is recognized with a corresponding charge to the profit or
loss for the period, and include in current profits or losses.
(4)Accounting treatment methods of other long-term employee benefits
The Company's employees participated in the social basic endowment insurance organized and implemented by the
local labor and social security departments.The company pays endowment insurance premium to orgnaization of
agency of local society primary endowment insurance according to the social primary endowment insurance pay
base and scale with local regulation monthly. After the employee retires, the local labor and social security
department has the responsibility to pay the social basic pension to the retired employee. The accounting period
during which the company provides services to its employees, and the amount calculated in accordance with the
above social security provisions shall be recognized as a liability and recorded into the current profit and loss or the
cost of relevant assets.
35. Lease liabilities
On the starting date of the lease term, the Company recognizes the present value of the unpaid lease payment as
lease liabilities. When calculating the present value of the lease payment, the Company adopts the interest rate
implicit in lease as the discount rate. In the event of an unconfirmed interest rate implicit in lease, the Company
adopts incremental borrowing rate as the discount rate. The balance between the lease payment and its present
value is deemed to be an unrecognized financing expense, whose interest expense shall be calculated on the
discount rate of present value of confirmed lease payment during each period of the lease term, and be added to the
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current profit and loss. The variable lease payments that are not included in the lease liability measurement charge
to the current profit and loss on occurring. After the start of the lease term, the Company remeasures the lease
liability at the present value of the changed lease payment amount when there is a change in the actual fixed
payment amount, the expected payable for the residual value of the guarantee, the index or ratio used to determine
the lease payment, or in the evaluation results or actual exercise of the purchase option, the renewal option or
termination option.
36. Provisions
36.1 The Company shall recognize this obligation as contingent liability when the obligations arising from the
provision of external guarantees, litigation matters, product quality guarantees, loss contracts and other
contingencies become the current obligations assumed by the Company and the fulfillment of such obligations is
likely to result in the outflow of economic benefits from the company and the amount of such obligations can be
reliably measured.
36.2 The Company shall initially measure the provisions according to the best estimate of the expenses required to
perform the relevant current obligations, and shall review the book value of the estimated liabilities on the balance
sheet date.
37. Share-based payments
37.1 Categories of share-based payments
Share-based payments comprise equity-settled and cash-settled payments.
37.2 Determination of fair value of equity instruments
(1) If there is an active market, it should be determined based on the quoted price in the active market.
(2) If there is no active market, it is determined by using valuation techniques, including considering the prices
used in recent market transactions made by parties familiar with the situation and taking transactions voluntarily,
and considering the current fair values and cash flows of other financial instruments that are substantially the same
discount method and option pricing model.
37.3 Basis for determining the best estimate of exercisable equity instruments
The Company would make best estimate in accordance with the newly acquired information such as changes in the
number of employees entitled to equity instruments.
37.4 Relevant accounting treatment of implementation, modification and termination of share-based payment plan
(1) Equity-settled share-based payments
Equity-settled share-based payments that are immediately available after the grant in exchange for employee
services are included in related costs or expenses based on the fair value of the equity instruments on the grant date,
and the capital reserve is adjusted accordingly. Equity-settled share-based payments for services that have been
completed during the waiting period or that are exercisable only if the required performance conditions are met are
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exchanged for employee services. At each reporting date during the waiting period, the best estimate of the number
of exercisable equity instruments is based on the fair value of the equity instrument grant date, the services obtained
in the current period are included in related costs or expenses, and the capital reserve is adjusted accordingly.
For equity-settled share-based payments in exchange for services provided by other parties, if the fair value of
services provided by other parties can be reliably measured, they should be measured at the fair value of the
services of other parties on the acquisition date; if the fair values of services provided by other parties cannot be
measured reliably, but for the equity instruments whose fair value can be reliably measured, they should be
measured at the fair value of the equity instrument on the date of service acquisition and included in related costs or
expenses, increasing owner’s equity accordingly.
(2) Cash-settled share-based payments
The cash-settled share-based payment in exchange for employee services immediately after the grant is included in
the related costs or expenses at the fair value of the liability assumed by the Company on the grant date, and the
liability is increased accordingly. Cash-settled share-based payments for services that have been completed within
the waiting period or that have met the required performance conditions in exchange for employee services are
based on the best estimate of the right to exercise at each balance sheet date during the waiting period, According to
the fair value of liabilities assumed by the company, the services obtained in the current period are included in
related costs or expenses and corresponding liabilities.
(3) Modifying and terminating the share payment plan
If the amendment increases the fair value of the equity instruments granted, the Company will recognize the
increase in the acquisition of services in accordance with the increase in the fair value of the equity instruments; if
the amendment increases the number of equity instruments granted, the company will increase the value of the
equity instruments. The fair value is correspondingly recognized as an increase in access to services; if the
company modifies the conditions of the exercisable rights in a manner that benefits employees, the company
considers the modified conditions of the exercisable rights when processing the conditions of the exercisable rights.
If the amendment reduces the fair value of the equity instrument granted, the Company continues to recognize the
amount of services obtained based on the fair value of the equity instrument on the grant date, without considering
the decrease in the fair value of the equity instrument; if the amendment reduces the equity granted for the number
of instruments, the company will treat the reduction as the cancellation of the granted equity instruments; if the
conditions of the exercisable rights are modified in a manner that is not conducive to employees, the revised
conditions of the exercisable rights are not considered when processing the conditions of the exercisable rights.
If the Company cancels the granted equity instruments or clears the granted equity instruments during the waiting
period (except for those that are canceled because the conditions of the exercisable rights are not met), the
cancellation or settlement is treated as an expedited exercisable right and the original amount recognized during the
remaining waiting period.
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38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Revenue
Accounting policies applied in revenue recognition and measurement
39.1 Recognition of income
The Company’s revenue is mainly derived from education and training.
The Company has fulfilled its performance obligation in the contract, that is, to recognize revenue when the
customer acquires control of the relevant goods.
39.2 According to the relevant provisions of the income standards, the Company judges that the nature of the
relevant performance obligations belongs to “performance obligations performed within a certain period of time” or
“performance obligations performed at a certain point of time”, and respectively recognizes the income according
to the following principles.
(1) If the Company meets one of the following conditions, it belongs to the performance obligation within a certain
period of time:
1) The customer obtains and consumes the economic benefits brought by the Company's performance when the
Company fulfills its performance.
2) The customer can control the assets under construction during the performance of the Company.
3) The assets produced by the Company during the performance have irreplaceable uses, and the Company has the
right to collect payment for the cumulative performance that has been completed so far during the entire contract
period.
For performance obligations performed within a certain period of time, the Company shall recognize the income
according to the performance schedule within that period, except where the performance schedule can not be
reasonably determined. The Company considers the nature of the goods and adopt the output method or input
method to determine the appropriate progress of performance.
(2) For performance obligations that are not performed within a certain period of time, but are performance
obligations performed at a certain point of time, the Company recognizes revenue at the point when the customer
obtains control of the relevant products.
When judging whether the customer has obtained control of the product, the Company considers the following
signs:
1) The Company has the current right to collect payment for the goods or services, that is, the customer has the
current payment obligation for the product;
2) The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the legal
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ownership of the goods;
3) The Company has transferred the goods in kind to the customer, that is, the customer has taken possession of the
goods in kind;
4) The Company has transferred the legal ownership of the product or the main risks and rewards of ownership to
the customer, that is, the customer has obtained the main risks and rewards in the ownership of the goods;
5) The customer has accepted the commodity in control;
6) Other indications that customers have taken control of the goods.
Specific policies for revenue recognition:
The Company’s revenue mainly includes training revenue from the common courses training and the contractual
courses training. When a face-to-face training in the common courses is completed, all the training fees received in
advance are recognized as revenue. Revenue from online training in common courses is recognized on a
straight-line basis during the validity period of the service provided. Non-refundable portion of advance payments
received for the contractual courses is recognized as revenue upon completion of training services. According to the
agreement on the contractual courses, the refund part of the advance received is recognized as revenue when the
non-refundable conditions are met.
39.3 Measurement of revenue
The Company shall measure revenue at the transaction price allocated to each individual performance obligation. In
determining the transaction price, the Company considers the influence of factors such as variable consideration,
major financing components in the contract, non-cash consideration, and consideration payable to customers.
(1) Variable consideration
The Company determines the best estimate of the variable consideration based on the expected value or the most
likely amount, but the transaction price including the variable consideration should not exceed the accumulated
recognized revenue when the relevant uncertainty is eliminated. When assessing whether the cumulative recognized
income is likely not to be significantly reversed, the enterprise shall also consider the possibility and proportion of
the income reversal.
(2) Significant financing component
Where there is a significant financing component in the contract, the Company shall determine the transaction price
based on the amount payable in cash on the assumption that the customer acquires control of the goods. The
difference between the transaction price and the contract consideration shall be amortized by the effective interest
method during the contract period.
(3) Non-cash consideration
If the customer pays non-cash consideration, the company shall determine the transaction price based on the fair
value of the non-cash consideration. If the fair value of the non-cash consideration can not be reasonably estimated,
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the Company shall indirectly determine the transaction price with reference to the separate selling price of the
goods it undertakes to transfer to the customer.
(4)Consideration payable to customer
For the consideration payable to the customer, the consideration payable shall be offset by the transaction price, and
the current revenue shall be offset at the time when the relevant revenue is recognized and the payment (or
promised to pay) of the customer’s consideration is later. Except where the customer consideration is due to obtain
other clearly distinguishable goods from the customer.
If the enterprise pays the customer consideration to obtain other clearly distinguishable goods from the customer, it
shall confirm the purchased goods in a manner consistent with other purchases by the enterprise. If the
consideration payable by the enterprise to the customer exceeds the fair value of the clearly distinguishable
commodity obtained from the customer, the excess amount shall be offset against the transaction price. If the fair
value of the clearly distinguishable commodity obtained from the customer cannot be reasonably estimated, the
enterprise shall offset the transaction price in full from the consideration payable to the customer.
Differences in accounting policies for revenue recognition due to different business models
None
40. Government grants
40.1 Government grants include asset related government grants and income related government grants.
40.2 If a government grant is in the form of monetary asset, it is measured at the amount received or receivable. If a
government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be
reliably determined, it is measured at a nominal amount.
40.3 The government grant adopts the total method
(1) A government grant related to an asset is recognized as deferred income, and amortized to profit or loss on a
reasonable and systematic basis over the useful life of the related asset. If the relevant assets are sold, transferred,
scrapped or damaged before the end of their useful lives, the undistributed balance of related deferred income will
be transferred to the profit or loss of the asset disposal in the current period.
(2) If a government grant related to income is used to compensate for the related expenses or losses in the
subsequent period, it shall be recognized as deferred income and shall be recorded in the current profit or loss in
which the relevant expenses are recognized; For the compensation of related expenses or losses that have occurred,
they shall be directly included in the current profits and losses.
For government grants that include both the asset-related portion and the income-related portion, the different parts
are separately accounted for; if it is indistinguishable, the overall classification is revenue-related government
subsidies.
40.4 Government grants related to the company’s daily activities in accordance with the nature of the economic
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business are included in other income or written down the related costs; government grants that are unrelated to the
daily activities of the company shall be included in non-operating income and expenditure.
41. The deferred income tax assets and the deferred income tax liabilities
41.1 According to the book value of the assets, liabilities and its tax base the difference between the (not confirmed
project as assets and liabilities of its tax base can be determined in accordance with the provisions of the tax law,
the tax base and the difference between the book number), according to the forecast of the asset is recovered or the
applicable tax rate calculation during the debt confirmed Deferred tax assets and deferred tax liabilities.
41.2 Confirm the deferred income tax assets to probably get used to making the deductible temporary differences
are limited to the amount of taxable income. During the balance sheet date, there is strong evidence that the future
is likely to obtain sufficient taxable income to offset the deductible temporary difference, confirm the unconfirmed
deferred income tax assets in previous accounting periods.
41.3 On the balance sheet date, review the book value of the deferred income tax assets, and if during the period of
the future may not be able to obtain sufficient taxable income to offset the benefit of the deferred income tax assets,
the write-downs on the book value of the deferred income tax assets. If it is likely to obtain sufficient taxable
income, return the amount of write-downs.
41.4 The Company’s current income tax and deferred income tax as recorded into the profits and losses of the
current income tax expenses, or earnings, but does not include the income tax in the following circumstances: (1)
The business combination;(2) Direct confirmation of transactions or events in the owner’s equity.
42. Lease
42.1 Accounting treatment of operating leases
The Company as lessee under operating leases: operating lease payments are recognized on a straight-line basis
over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for
the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to
profit or loss in the period in which they are actually incurred.
The Company as lessor under operating leases: rental income from operating leases is recognized in profit or loss
on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant
amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over
the lease term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period in
which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
42.2 Accounting treatment of financial leases
The Company as lessee under finance leases: at the commencement of the lease term, the Company records the
leased asset at an amount equal to the lower of the fair value of the leased asset and the present value of the
minimum lease payments at the inception of the lease, and recognizes a long-term payable at an amount equal to
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the minimum lease payments. The difference between the recorded amounts is accounted for as unrecognized
finance charge. Unrecognized finance charges are recognized as finance charge for the period using the effective
interest method over the lease term.
The Company as lessor under finance leases: at the commencement of the lease term, the aggregate of the
minimum lease receivable at the inception of the lease and the initial direct costs is recognized as a finance lease
receivable, and the unguaranteed residual value is recorded at the same time. The difference between the aggregate
of the minimum lease receivable, the initial direct costs and the unguaranteed residual value, and the aggregate of
their present values is recognized as unearned finance income. Unearned finance income is recognized as finance
income for the period using the effective interest method over the lease term.
43. Other significant accounting policies and accounting estimates
None
44.Changes in Important Accounting Policies and Accounting Estimates
(1) Changes in Important Accounting Policies
√ Applicable □ Not applicable
Content and reasons of changes in
Approval procedures Remarks
accounting policies
On December 7, 2018, the Ministry of
Finance revised, printed and issued the
Accounting Standards for Business
Enterprises No. 21 – Lease” (Finance and
Accounting [2018] No. 35). Companies that Based on the revision of accounting
are listed both at home and abroad,and standards mentioned above and the
companies that are listed overseas and adopt Approved by the 18th Meeting of the 5th requirements of the performing period, the
International Financial Reporting Standards Board of Directors and the 15th Meeting of Company made adjustments to the
or Accounting Standards for Business the 5th Board of Supervisors. corresponding content of accounting policy
Enterprises to and started to implement it since Jan. 1,
prepare financial statements are required to 2021.
implement it from January 1, 2019. Other
companies that implement the Accounting
Standards for Business Enterprises shall
implement it from January 1, 2021.
(2) Changes in important accounting estimates
□ Applicable √ Not applicable
(3) The related items of financial statements at the beginning of the year that need to be adjusted after the
implementation of the new lease standard in 2021
Applicable
Whether to adjust the balance sheet account at the beginning of the year
√ Yes □ No
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Consolidated balance sheet
Unit：RMB
Item Dec. 31st, 2020 Jan. 1st, 2021 Adjustment
Current Assets:
Monetary funds 5,950,395,089.12 5,950,395,089.12
Settlement reserve
Due from banks and other financial institutions
Transactional financial assets 983,205,858.25 983,205,858.25
Derivative financial assets
Notes Receivable
Accounts Receivable 21,493,637.66 21,493,637.66
Financing receivables
Prepayments 2,204,120.00 2,204,120.00
Premium receivables
Reinsurance accounts receivable
Reinsurance contract reserve receivables
Other receivables 304,318,966.20 304,318,966.20
Inc: Interest receivables
Dividends receivables
Financial assets purchased under resale agreements
Inventories
Contract assets
Assets held for sale
Non-current assets due within one year 1,985,873,462.75 1,985,873,462.75
Other current assets 175,179,650.61 44,858,022.80 -130,321,627.81
Total current assets 9,422,670,784.59 9,292,349,156.78 -130,321,627.81
Non-current assets:
Loans and Advances
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment
Other equity instruments 152,800,000.00 152,800,000.00
Other non-current financial assets 208,450,315.01 208,450,315.01
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Investment properties 668,014,515.82 668,014,515.82
Fixed assets 1,612,792,592.67 1,612,792,592.67
Construction in progress 214,248,125.04 214,248,125.04
Productive biological assets
Oil and gas assets
Right-of-use assets 1,491,006,998.14 1,491,006,998.14
Intangible assets 426,352,455.75 426,352,455.75
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expense 440,955,377.93 412,508,666.20 -28,446,711.73
Deferred tax assets 21,606,436.77 21,606,436.77
Other non-current assets 1,151,091,703.31 1,151,091,703.31
Total non-current assets 4,996,179,242.68 6,458,739,529.09 1,462,560,286.41
Total assets 14,418,850,027.27 15,751,088,685.87 1,332,238,658.60
Current liabilities:
Short-term borrowings 3,976,019,329.22 3,976,019,329.22
Borrowing from the central bank
Borrowings from banks and other financial institutions
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 211,824,402.86 211,824,402.86
Receipts in advance
Contract liabilities 4,925,428,309.33 4,925,428,309.33
Financial assets sold for repurchase
Receipt of deposits and deposits from other banks
Customer deposits for trading in securities
Amounts due to issuer for securities underwriting
Employee benefits payable 637,448,433.99 637,448,433.99
Taxes payable 131,111,770.78 131,111,770.78
Other payable 9,479,383.03 9,479,383.03
Inc：Interest payables
Dividends payable
Fees and commission payable
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Accounts payable reinsurance
Held-for-sale liabilities
Non-current liabilities due within one Year 699,372,590.26 699,372,590.26
Other current liabilities 147,765,156.66 147,765,156.66
Total current liabilities 10,039,076,785.87 10,738,449,376.13 699,372,590.26
Non-current Liabilities:
Deposits for insurance contracts
Long-term loans
Bonds payable
Inc: Bonds payable preferred stock
Bonds payable perpetual bond
Lease liabilities 632,866,068.34 632,866,068.34
Long-term payable
Long-term payroll payable
Provisions
Deferred Income
Deferred tax liabilities 104,677,444.59 104,677,444.59
Other non-current liabilities
Total non-current liabilities 104,677,444.59 737,543,512.93 632,866,068.34
Total liabilities 10,143,754,230.46 11,475,992,889.06 1,332,238,658.60
Owners' equity:
Share capital 103,807,623.00 103,807,623.00
Other equity instrument
Inc: Other equity instruments preferred stock
Other equity instruments_perpetual bond
Capital reserve 1,225,481,049.50 1,225,481,049.50
Less: Treasury stock
Other comprehensive income 30,000,000.00 30,000,000.00
Special reserve
Surplus reserve 45,000,000.00 45,000,000.00
General risk reserve
Undistributed earnings 2,870,839,120.70 2,870,839,120.70
Total owners' equity attributable to the parent company 4,275,127,793.20 4,275,127,793.20
Minority shareholders' equity -31,996.39 -31,996.39
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Total owners' equity 4,275,095,796.81 4,275,095,796.81
Total liabilities and owners' equity 14,418,850,027.27 15,751,088,685.87 1,332,238,658.60
Statements on adjustments
According to the Notice on Revision and Issuance of Accounting Standards for Business Enterprises No. 21 – Lease
(Finance and Accounting [2018] No. 35) issued by the Ministry of Finance in December 2018, the Company, from
January 1, 2021, discloses accounting statements in accordance with the new lease standards.
Parent company balance sheet
Unit: RMB
Item Dec. 31st, 2020 Jan. 1st, 2021 Adjustment
Current Assets:
Monetary funds 56,138,356.37 56,138,356.37
Transactional financial assets 1,630,453.37 1,630,453.37
Derivative financial assets
Note receivables
Accounts Receivable 14,792,320.38 14,792,320.38
Financing receivables
Prepayments
Other receivables 621,900,443.29 621,900,443.29
Inc: Interest receivables
Dividends receivables
Inventories
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets
Total current assets 694,461,573.41 694,461,573.41
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investment 18,582,307,907.14 18,582,307,907.14
Other equity instruments 152,800,000.00 152,800,000.00
Other non-current financial assets
Investment properties 384,641,527.88 384,641,527.88
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Fixed assets 383,060,000.00 383,060,000.00
Construction in progress 72,569,103.57 72,569,103.57
Productiver biological assets
Oil and gas assets
Right-of-use assets
Intangible assets
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets 20,529,151.44 20,529,151.44
Other non-current assets 501,095,111.10 501,095,111.10
Total non-current assets 20,097,002,801.13 20,097,002,801.13
Total assets 20,791,464,374.54 20,791,464,374.54
Current liabilities:
Short-term loans 871,083,875.00 871,083,875.00
Transactional financial liabilities
Derivative financial liabilities
Note payable
Accounts payable 83,621,752.26 83,621,752.26
Receipts in advance
Contract liabilities
Employee benefits payable
Taxes payable 1,437,291.71 1,437,291.71
Other payables 446,606,530.72 446,606,530.72
Inc: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 1,402,749,449.69 1,402,749,449.69
Non-current liabilities:
Long-term loans
Bonds payable
Inc: Bonds payable preferred stock
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Bonds payable perpetual bond
Lease liabilities
Long-term payable
Long-term payroll payable
Provisions
Deferred income
Deferred tax liabilities 10,007,613.34 10,007,613.34
Other non-current liabilities
Total non-current liabilities 10,007,613.34 10,007,613.34
Total liabilities 1,412,757,063.03 1,412,757,063.03
Owners' equity:
Share capital 6,167,399,389.00 6,167,399,389.00
Other equity instrument
Inc: Other equity instruments preferred stock
Other equity instruments perpetual bond
Capital reserve 12,775,326,370.33 12,775,326,370.33
Less: treasury stock
Other comprehensive income 30,000,000.00 30,000,000.00
Special reserve
Surplus reserve 387,458,806.65 387,458,806.65
Undistributed earnings 18,522,745.53 18,522,745.53
Total owners'equity 19,378,707,311.51 19,378,707,311.51
Total liabilities and owners' equity 20,791,464,374.54 20,791,464,374.54
Description of adjustment
None
(4) Description of comparative data in the early stage of retroactive adjustment of the new lease standard
initially implemented since 2021
□ Applicable √ Not Applicable
45. Others
None
Section VI. Taxes
1. Major categories of taxes and tax rates
Category of tax Basis of tax Tax rate
Value-added tax Taxable revenue for sales of goods and supply of services 3%、5%、6%
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
City maintenance and construction tax Turnover taxes payable 5%、7%
Corporate income tax Taxable income 15%、20%、25%
Education supplementary tax Turnover taxes payable 3%
Local education supplementary tax Turnover taxes payable 2%
Disclosure statement on taxpayers with different corporate income tax rates
Names of taxpayers Income tax rates
1.The Company 25%
2.Offcn Ltd. 15%
3.Wuhu Yawei Automobile Sales Service Co., Ltd 25%
4. Ningguo Yaxia Motor Vehicle Driver Training School (Co., Ltd.) 25%
5.Huangshan Yaxia Fudi Automobile Sales Services Co., Ltd. 20%
6.Chaohu Yaxia Kaixuan Automobile Sales Service Co., Ltd. 25%
7.Bozhou Yaxia Motor Vehicle Driver Training School Co., Ltd. 25%
8.Suzhou Bokai Automobile Sales Service Co., Ltd. 25%
9.Beijing Offcn Future Education Technology Co. Ltd 20%
10.Beijing Offcn Future Research Education Technology Co., Ltd. 25%
11.Shaanxi Offcn Education Technology Co. Ltd. 25%
12. Chengdu Offcn Future Education Training School Co. Ltd. 25%
13.Zhejiang Offcn Education Technology Co. Ltd.. 25%
14.Taizhou Offcn Future Enterprise Management Consulting Co., Ltd. 20%
15.Beijing Offcn Xinzhiyu Online Technology Co., Ltd. 20%
16.Hulunbeier Hailar Offcn Education Information Consulting Co., Ltd.. 20%
17.Xilinhot Offcn Future Education Consulting Co., Ltd 25%
18.Yueqing Lecheng Offcn Training Center Co., Ltd.. 20%
19.Jiaozuo Offcn Future Education Service Co., Ltd 20%
20.Xinzheng Offcn Cultural Communication Co., Ltd.. 20%
21.Chongqing Jiangbei Offcn Vocational Examination Training Co., Ltd. 20%
22.Nanjing Offcn Future Education Consulting Co., Ltd. 25%
23.Baiyin Offcn Future Education Consulting Co., Ltd. 20%
24.Beijing Xinde Zhiyuan Enterprise Management Consulting Co., Ltd.. 20%
25.Nanjing Huiyue Hotel Management Co., Ltd. 25%
26.Shandong Kunzhong Real Estate Co., Ltd. 25%
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
27.Sanmenxia Offcn Cultural Communication Co., Ltd. 20%
28.Liaoning Offcn Academic & Cultural Exchange Co., Ltd. 25%
29.Liaoning Offcn Education Technology Co., Ltd. 25%
30.Shandong Offcn Education Technology Co., Ltd. 25%
31.Jilin Changyi Offcn Education Training School Co., Ltd. 25%
32.Yuxi Offcn Training School Co., Ltd. 20%
33.Tonghua Offcn Training School Co., Ltd. 25%
34.Hunan Lightsalt Offcn Education Technology Co., Ltd.. 25%
35.Tianjin Hexi Offcn Training School Co., Ltd. 20%
36.Chengdu Offcn Education Training School Co., Ltd. 20%
37.Shandong Zhuoda Business Management Co., Ltd. 20%
38.Liaoning Zhongcheng Real Estate Development Co.,Ltd. 25%
39. Wuhu Offcn Training School Co. Ltd. 25%
40.Wuhan Guoshang Human Resource Service Co., Ltd. 25%
41.Jinan Zhangqiu Offcn Training School Co. Ltd. 20%
42.Mengzi Offcn Education Training Co. Ltd.. 25%
43.Beijing Offcn Technology Development Co. Ltd.. 25%
44.Shanghai Offcn Education Technology Co. Ltd. 25%
45.Guangzhou Offcn Smart Education Technology Co. Ltd. 25%
46.Pingshan Offcn Education Technology Co. Ltd. 25%
47.Shandong Offcn Education Training School Co. Ltd. 25%
48.Lanzhou Offcn Education Training School Co. Ltd. 25%
49. Diqing Offcn Training School Co. Ltd. 25%
50. Anshan Tiedong Offcn Education Training School Co.,Ltd. 25%
51. Wenling Offcn Information Consultancy Co. Ltd 25%
2. Preferential taxation
2.1.Value-added tax
(1) According to the Notice on Implementing the Inclusive Tax Reduction Policy for Small and Micro
Enterprises (CS [2019] No. 13), in order to further support the development of small and micro enterprises, from
January 1, 2019 to December 31, 2021, small-scale value-added taxpayers with monthly sales less than RMB
100,000 (included) are exempt from value-added tax.
According to the Announcement on clarifying the VAT exemption policy for small-scale taxpayers (CS [2021]
No. 11), from April 1, 2021 to December 31, 2022, small-scale taxpayers with monthly sales of less than
RMB150,000 (included) will be exempt from VAT.
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
The Company's branches and subsidiaries that meet the exemption conditions are exempt from VAT.
(2) According to the Notice of the Ministry of Finance and the State Administration of Taxation on the
Relevant Policies on Deduction of Value Added Tax for Special Equipment and Technical Maintenance Costs of
Value Added Tax Control System (CS [2012] No. 15), if the VAT taxpayers purchase special equipment for the VAT
tax control system (including separate ticket machines) for the first time after December 1, 2011 (including, the
same below), the purchase expenses can be fully deducted from the VAT payable (the deduction is the total amount
of price and tax) by the VAT invoice obtained from the purchase of special equipment for the VAT tax control
system, and the deduction that is insufficient can be carried forward to the next period. The VAT taxpayer's
technical maintenance fee paid after December 1, 2011 (excluding the technical maintenance fee paid before
November 30, 2011) can be deducted from the tax payable at full amount by the technical maintenance invoice
issued by the technical maintenance service unit, and those that are insufficient to be deducted can be carried
forward to the next period. The Company and the qualified branches and subsidiaries deduct the VAT payable at
full amount according to the regulations.
(3) In accordance with the Announcement on Favorable Tax Policies for the Prevention and Control of
Covid-19 (Announcement No. 8 of 2020 by the Ministry of Finance and the State Administration of Taxation), the
taxpayers’ income from offering public transportation services, daily life services, and delivering services for
residents with living necessities is exempt from value-added tax. The specific scope of public transportation
services complies with that stipulated in the “Regulations on Issues Related to the Pilot Program of Changing Sales
Tax to Value-Added Tax” (Published and issued by F&T [2016] No. 36). The specific scope of life services and
express delivery services complies with that stipulated in the "Sales Services, Intangible Assets, and Real Estate
Notes" (issued by F&T [2016] No. 36). The Company’s qualified branches and subsidiaries that meet the
exemption conditions are exempt from the value-added tax.
(4) According to the Announcement on Deepening the Reform of Relevant Policies About Value-Added
Tax”(Announcement No. 39, 2019 of the Ministry of Finance, State Administration of Taxation, General
Administration of Customs), from April 1, 2019 to December 31, 2021, Taxpayers involved in the production and
living service industry are allowed to deduct deductible input tax plus 10% from the tax payable. The Company’s
qualified branches and subsidiaries will additionally deduct the value-added tax payable according to this
preferential policy.
(5) According to Announcement From the Ministry of Finance and the State Administration of Taxation on
Continuing the Implementation of Some Preferential Tax Policies in Response to the Pandemic (CS [2021] No. 7),
in order to further support the prevention and control of the pandemic, the preferential tax policy stipulated in the
Announcement From the Ministry of Finance and State Administration of Taxation on VAT Policy to Support
Individual Industrial and Commercial Entities to Resume Business (CS [2020] No. 13) will extend to December 31,
2021. And from April 1, 2021 to December 31, 2021, for the small-scale VAT taxpayers in Hubei Province who are
eligible to a rate of 3% on the taxable sales income, the VAT shall be levied at a reduced rate of 1%; for the items
that are eligible to a 3% rate of pre-paid VAT, the pre-paid VAT shall be reduced at the pre-collection rate of 1%.
Branches and subsidiaries of the Company that meet the exemption conditions are exempt from VAT or are levied
at a reduced rate of 1%.
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2.2.Education surcharge and local education surcharge
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Expanding the
Exemption Scope of Relevant Governmental Funds (CS [2016] No. 12), since February 1, 2016, the exemption
scopes of education surcharges, local education surcharges and water conservancy construction fund are expanded
from the current monthly taxpayers whose monthly sales or turnover does not exceed RMB30,000 (quarterly sales
or turnover does not exceed RMB90,000 for quarterly taxes) to monthly taxpayers whose monthly sales or turnover
does not exceed RMB100,000 (quarterly sales or turnover does not exceed RMB300,000 for quarterly taxes).
Branches and subsidiaries of the Company that meet the exemption conditions are exempt from education
surcharges and local education surcharges.
2.3. Corporate income tax
(1) On August 10, 2017, Offcn Co. Ltd. got authenticated as a high-tech enterprise by Beijing Municipal State
Administration of Taxation, Beijing Municipal Tax Service, Beijing Municipal Finance Bureau and Beijing
Municipal Science and Technology Commission, obtaining the high-tech enterprise certificate numbered
GR20171101302. The validity period of the certificate is from August 10, 2017 to August 9, 2020. On October 21,
2020, Offcn Co. Ltd. got authenticated as a high-tech enterprise by Beijing Municipal State Administration of
Taxation, Beijing Municipal Tax Service, Beijing Municipal Finance Bureau and Beijing Municipal Science and
Technology Commission, obtaining the high-tech enterprise certificate numbered GR202011002730. The validity
period of the certificate is from October 21, 2020 to October 20, 2023. Offcn Co. Ltd. and its subsidiaries shall pay
corporate income tax at a rate of 15%.
(2) According to the Notice on Implementing the Inclusive Tax Reduction Policy for Small and Micro
Enterprises (CS [2019] No. 13), from January 1, 2019 to December 31, 2021, for small and low-profit enterprises,
the taxable portion of their annual taxable income not more than RMB1 million shall be measured at a reduced rate
of 25%, and the corporate income tax shall be paid at a rate of 20%. The taxable portion of the annual taxable
income more than RMB1 million but not more than RMB3 million shall be measured at a reduced rate of 50%,
and the corporate income tax shall be paid at a rate of 20%.
According to the Notice on the Implementation of Preferential Income Tax Policies for Small and Micro
Enterprises and Individual Businesses (Notice No. 12 of the State Administration of Taxation and the Ministry of
Finance, 2021), for small and low-profit enterprises, in additional to the preferential policies stipulated in Article 2
of the Notice on Implementing the Inclusive Tax Relief Policies for Small and Micro Enterprises from Ministry of
Finance and the State Administration of Taxation (CS [2019] No. 13) the corporate income tax on the portion of the
annual taxable income not more than RMB1 million, shall be further reduced by half. The period is from January 1,
2021 to December 31, 2022.
Subsidiaries of the Company that meet the conditions shall apply to the above policies in calculating and
paying corporate income tax.
(3) According to the Notice on Clarifying the Scope of Small and Low-profit Enterprises that Enjoy the
Preferential Policies to Exempt from Local Share Portion of Corporate Income Tax from the Notice of Party
Committee and the People's Government of Inner Mongolia Autonomous Region (NCS [2019] No. 227), for small
and low-profit enterprises with the annual taxable income not more than RMB 1 million, in accordance with the
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Notice on Implementing the Inclusive Tax Reduction Policy for Small and Micro Enterprises (CS [2019] No. 13),
the annual taxable income shall be measured at a reduced rate of 25%. After calculating the corporate income tax at
a rate of 20%, according to the Notice issued by the Party Committee and the People's Government of Inner
Mongolia Autonomous Region (NDF [2018] No. 23), the local share portion of corporate income tax (40%) shall be
exempted. Subsidiaries of the Company that meet the conditions shall apply to the policies in calculating and
paying corporate income tax.
3.Others
None
VII. Notes To Consolidated Financial Statements
1. Monetary funds
Unit：RMB
Item Closing balance Opening balance
Cash on hand 90,792.90 67,906.76
Cash on bank 3,366,518,184.89 5,882,201,630.73
Other monetary funds 193,959,707.39 68,125,551.63
Total 3,560,568,685.18 5,950,395,089.12
other information
(1) Other monetary funds mainly include the balances of third-party payment platforms such as POS, Alipay, and
Tenpay.
(2) At the end of the period, there are no mortgage, pledge, freezing and other restrictions on the use of funds.
Details on Note VII of this report, 81, “Assets with restricted ownership or rights of use”.
(3) There were no cash deposited abroad at the end of the period.
2. Transactional financial assets
Unit：RMB
Item Closing balance Opening balance
Financial assets measured at fair value with
178,565,832.93 983,205,858.25
changes included in current profit and loss
Inc：
Debt instrument investment 178,565,832.93 983,205,858.25
Inc：
Total 178,565,832.93 983,205,858.25
3. Derivative financial assets
Unit：RMB
Item Closing balance Opening balance
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
4. Notes receivable
(1) Classification of notes receivable
Unit：RMB
Item Closing balance Opening balance
Unit：RMB
Closing balance Opening balance
Book balance Bad debt provision Book balancet Bad debt r provision
Category Book Book
Proportion value Proportion value
Amount Proportion Amount Amount Proportion Amount
of provision of provision
Inc:
Inc:
Provision for bad debts by per item:
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision Reason for provision
Total — —
Provision for bad debts by portfolio:
Unit：RMB
Closing balance
Name
Book balance Bad debt reserves Accrual ratio
If the bad debt provision of notes receivable is calculated according to the general model of expected credit loss,
please disclose the relevant information of bad debt provision with reference to the disclosure method of other
receivables:
□ Applicable √ Not Applicable
(2) Provision, recovery and reversal for bad debts in current period
Provision for bad debts in current period
Unit：RMB
Category Opening balance Amount of change in the current period Closing balance
Important provision, withdrawal or reversal for bad debts in current period:
□ Applicable √ Not Applicable
(3) Notes receivable pledged by the Company at the end of the period
Unit：RMB
Item Pledged amount at the end of the period
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
(4) Notes receivable that have been endorsed or discounted by the company at the end of the period and have
not yet matured at the balance sheet date
Unit：RMB
Item Amount of confirmation at the end of the period Amount not confirmation at the end of the period
(5) Notes transferred to accounts receivable by the Company due to the drawer's failure to perform the
contract at the end of the period,
Unit：RMB
Item Amount transferred to accounts receivable at the end of the period
(6)Notes receivable actually written off in current period
Unit：RMB
Item Amount of writing off
Writing off important notes receivable:
Unit：RMB
Whether the funds
Name of the Nature of notes Amount of writing Reasons for writing Procedure of writing are generated by
Company receivable off off off related party
transactions
5. Accounts receivable
(1) Classified disclosure of accounts receivable
Unit：RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Proport
Book value Proportion Book value
ion of Proportio
Amount Proportion Amount Amount Amount of
provisi n
provision
on
Inc：
Accounts
receivable with
provision for bad 34,648,578.71 100.00% 2,225,038.91 5.00% 32,423,539.80 22,625,024.65 100.00% 1,131,386.99 5.00% 21,493,637.66
debts in
combination
Inc：
Combination 1 1,522,000.00 4.39% 76,100.00 5.00% 1,445,900.00
Combination 2 3,264,680.96 9.42% 163,095.65 5.00% 3,101,585.31 2,618,094.65 11.57% 131,040.49 5.01% 2,487,054.16
Combination 3 29,861,897.75 86.19% 1,985,843.26 5.00% 27,876,054.49 20,006,930.00 88.43% 1,000,346.50 5.00% 19,006,583.50
Total 34,648,578.71 100.00% 2,225,038.91 32,423,539.80 22,625,024.65 100.00% 1,131,386.99 21,493,637.66
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Provision for bad debts according to individual items:
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision Reasons for provision
Provision for bad debts according to combination: 2,225,038.91
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision
Combination 1 1,522,000.00 76,100.00 5.00%
Combination 2 3,264,680.96 163,095.65 5.00%
Combination 3 29,861,897.75 1,985,843.26 5.00%
Total 34,648,578.71 2,225,038.91 —
Description of the basis for determining the combination:
None
Provision for bad debts according to combination:
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision
Description of the basis for determining the combination:
If the provision for bad debts of accounts receivable is calculated according to the general model of expected credit
loss, please refer to the disclosure method of other receivables to disclose the relevant information of bad debt
provision:
□ Applicable √ Not Applicable
Disclosure by account age
Unit：RMB
Ages Book balance
Within 1 year (included) 24,796,379.06
Within 1 year (included) 24,796,379.06
1 to 2 years 9,852,199.65
Total 34,648,578.71
(2) Provision, recovery and reversal for bad debts in current period
Provision for bad debts in the current period:
Unit：RMB
Category Opening balance Amount of change in the current period Closing balance
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Provision recovery or reversal Write off Others
Provision for bad
debts of accounts 1,131,386.99 1,093,651.92 2,225,038.91
receivable
Total 1,131,386.99 1,093,651.92 2,225,038.91
Important provision, recovery and reversal for bad debts in current period:
Unit：RMB
Company name Amount recovered or reversed Recovery method
(3) Accounts receivable actually written off in the current period
Unit：RMB
Item Write off amount
Important write-off accounts receivable:
Unit：RMB
Whether the funds
Nature of accounts Amount of writing Reasons for writing Procedures of writing are generated by
Company name
receivable off off off related party
transactions
Description of the write-off of accounts receivable:
(4) Accounts receivable of top five closing balance collected by debtors
Unit：RMB
Closing balance of accounts Proportion in the total closing Closing balance of bad debt
Company name
receivable balance of accounts receivable reserves
Yaxia Industrial Co. Ltd. 29,854,967.75 86.17% 1,985,496.76
Customer 1 1,522,000.00 4.39% 76,100.00
Customer 2 1,134,113.50 3.27% 56,705.68
Customer 3 197,644.50 0.57% 9,882.23
Customer 4 186,794.00 0.54% 9,339.70
Total 32,895,519.75 94.94%
(5) Accounts receivable terminated due to transfer of financial assets
None
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
None
6. Receivables financing
Unit：RMB
Item Closing balance Opening balance
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Changes in receivable financing and fair values in current period
□ Applicable √ Not applicable
If the provision for impairment of receivables financing is withdrawn according to the general model of expected
credit loss, please refer to the disclosure method of other receivables to disclose the relevant information of
impairment provision:
□ Applicable √ Not applicable
7. Prepayments
(1) Disclosure by account age
Unit：RMB
Closing balance Opening balance
Account age
Amount Proportion Amount Proportion
Within 1 year 1,540,010.00 100.00% 2,204,120.00 100.00%
Total 1,540,010.00 -- 2,204,120.00 --
Reasons for not timely settling the important prepayments with an account age of more than one year:
None
(2)Prepayment of top five closing balance collected by prepayment objects
Name of company Nature of Closing balance Account age Proportion in total amount Provision for
Payment of prepayment(%) bad debts
Nanjing Tuniu International Travel Air ticket 835,488.00 Within 1 year 54.25
Agency Co., Ltd payment
Nanjing Eurasian Air Passengers Air ticket 704,522.00 Within 1 year 45.75
Transport Agency Co., Ltd. payment
Total 1,540,010.00 100.00
8.Other receivables
Unit：RMB
Item Closing balance Opening balance
Other receivables 382,044,846.69 304,318,966.20
Total 382,044,846.69 304,318,966.20
(1)Interest receivable
1)Classification of interest receivable
Unit：RMB
Item Closing balance Opening balance
2)Important overdue interest
Unit： RMB
Borrower Closing balance Overdue time Overdue reasons Whether there is
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
impairment and its
judgment basis
3）Provision for bad debts
□ Applicable √ Not applicable
(2) Dividends receivable
1) Classification of dividends receivable
Unit：RMB
Item (or Investee) Closing balance Opening balance
2) Important dividends receivable with an account age of over 1 year
Unit：RMB
Whether there is
Item (or Investee) Closing balance Account age Reasons for non recovery impairment and its
judgment basis
3）Provision for bad debts
□ Applicable √ Not applicable
other information:
None
(3) Other receivables
1) Classification of other receivables by nature of payment
Unit：RMB
Nature of payment Closing Book balance Opening Book balance
Deposits and guarantees 379,678,070.53 302,437,947.35
Reserve fund 304,970.00 120.00
deferred expense and others 2,061,806.16 1,880,898.85
Total 382,044,846.69 304,318,966.20
2) Provision for bad debts
Unit： RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts Expected credit Expected credit loss in the Expected credit loss in the Total
loss in the next whole duration (no credit whole duration (credit
12 months impairment has occurred) impairment has occurred)
Balance at Jan. 1st, 2021 377,400.85 510,300.00 887,700.85
Balance at Jan. 1st, 2021 in
— — — —
current period
Provision in the current period 185,401.83 170,100.00 355,501.83
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Write-off in the current period 680,400.00 680,400.00
Balance at June 30th, 2021 562,802.68 0.00 562,802.68
Changes in book balance of loss reserves with significant changes in current period
□ Applicable √ Not applicable
Disclosure by account age
Unit：RMB
Account age Closing balance
Within 1 year (included) 132,887,291.95
Within 1 year (included) 132,887,291.95
1 to 2 years 222,953,484.07
2 to 3 years 7,675,997.74
More than 3 years 18,528,072.93
3 to 4 years 2,259,965.25
4 to 5 years 8,957,206.80
More than 5 years 7,310,900.88
Total 382,044,846.69
3) Provision, recovery and reversal for bad debts in current period
Provision for bad debts in current period:
Unit：RMB
Amount of change in the current period
Category Opening balance Recovery or Closing balance
Provision Write-off Others
reversal
Provision for bad
debts of other 887,700.85 355,501.83 680,400.00 562,802.68
receivables
Total 887,700.85 355,501.83 680,400.00 562,802.68
The important amount of bad debt reserves recovered or reversed in the current period:
Unit：RMB
Name of company Amount of recovered or reversed Recovery method
4) Other receivables actually written off in the current period
Unit：RMB
Item Write-off amount
receivables actually written off 680,400.00
Important write-off of other receivables:
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit：RMB
Whether the funds
Nature of other are generated by
Name of company Write-off amount Write-off reasons Write off procedures
receivables related party
transactions
Description of write-off of other receivables:
None
5) Other receivables of top five closing balance collected by debtors
Unit：RMB
Closing
Proportion in total
balance of
Name of company Nature of payment Closing balance Account age other closing balance
bad debt
receivables (%)
provision
Liaoning Hanhui Industrial Co., Ltd Deposits and guarantees 200,000,000.00 1 to 2 years 52.35%
Beijing Huaxia Shunxin Property
Deposits and guarantees 25,000,000.00 Within 1 year 6.54%
Management Co., Ltd.
Beijing Wushuang Technology Co.,
Deposits and guarantees 15,000,000.00 1 to 2 years 3.93%
Ltd
Shenyang Lijing Mingzhu Hotel
Deposits and guarantees 5,675,200.00 4 to 5 years 1.49%
Management Co., Ltd
Harbin Yuheng Pharmaceutical Co., More than 5
Deposits and guarantees 2,700,000.00 0.71%
Ltd. years
Total — 248,375,200.00 -- 65.02%
6) Receivables involving government subsidies
Unit：RMB
Name of government Account age at the end of Estimated time, amount
Name of company Closing balance
subsidy project the period and basis of collection
None
7) Other receivables terminated due to transfer of financial assets
None
8）Amount of assets and liabilities formed by transferring other receivables and continuing involvement
None
9. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
None
10. Contract assets
Unit：RMB
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
The amount and reasons for significant changes in the book value of contract assets in the current period:
Unit：RMB
Item Change in the amount Reasons for changes
If the provision for bad debt of contract assets is withdrawn according to the general model of expected credit loss,
please refer to the disclosure method of other receivables to disclose the relevant information of bad debt provision:
□ Applicable √ Not applicable
Provision for impairment of contract assets in the current period
Unit：RMB
Provision in the current Reversal in current Write-off in current
Item Reasons
period period period
other information:
11.Assets held for sale
Unit：RMB
Book balance at
Provision for Book value at the Estimated Estimated
Item the end of the Fair value
impairment end of the period disposal costs disposal time
period
12. Non-current assets due within one year
Unit：RMB
Item Closing balance Opening balance
Debt investment due within one year 20,027,866.69 1,985,873,462.75
Total 20,027,866.69 1,985,873,462.75
Important debt investment / Other debt investment
Unit：RMB
Closing balance Opening balance
Credit item Real
Coupon Real Due
Par value Due date Par value Nominal rate interest
rate interest rate date
rate
Beijing Sidaokou Sub-branch April 4,
500,000,000.00 4.12% 4.12%
of Huaxia Bank Co., Ltd. 2021
April
Qianmen Sub-branch, China
500,000,000.00 3.85% 3.85% 12,
Construction Bank Corporation
2021
Beijing Shangdi sub-branch of June 5,
300,000,000.00 4.30% 4.30%
China Minsheng Bank Co., Ltd 2021
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
June
Beijing Shangdi sub-branch of
200,000,000.00 4.30% 4.30% 13,
China Minsheng Bank Co., Ltd
2021
Meihekou Rural Credit
June 6,
Cooperative, Cooperative 100,000,000.00 4.20% 4.20%
2021
Union Sales Department
Meihekou Rural Credit
July 2,
Cooperative, Cooperative 100,000,000.00 4.20% 4.20%
2021
Union Sales Department
Meihekou Rural Credit April
Cooperative, Cooperative 50,000,000.00 4.20% 4.20% 26,
Union Sales Department 2021
Meihekou Rural Credit May
Cooperative, Cooperative 50,000,000.00 4.20% 4.20% 31,
Union Sales Department 2021
China Merchants Bank Co., Dec.
20,000,000. Dec. 18,
Ltd. Beijing Fangzhuang 4.18% 4.18% 20,000,000.00 4.18% 4.18% 18,
00 2021
sub-branch 2021
20,000,000.
Total — — — 1,820,000,000.00 — — —
00
other information:
None
13. Other current assets
Unit：RMB
Item Closing balance Opening balance
Prepaid expenses 51,252,413.48 3,025,677.50
Pending payment 16,268,215.47 41,832,345.30
Fixed-term deposit 896,475,291.65
Prepaid corporate income tax 24,724,309.86
Total 988,720,230.46 44,858,022.80
other information:
None
14. Debt investment
Unit：RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Important debt investment
Unit：RMB
Closing balance Opening balance
Credit item Real
Real interest
Par value Coupon rate interest Due date Par value Coupon rate Due date
rate
rate
Provision for impairment
Unit：RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts Expected credit loss in the Expected credit loss in the Total
Expected credit loss
whole duration (no credit whole duration (credit
in the next 12 months
impairment has occurred) impairment has occurred)
Balance at Jan. 1st, 2021
—— —— —— ——
in current period
Changes in book balance of loss reserves with significant changes in current period
□ Applicable √ Not applicable
other information:
15. Other debt investments
Unit：RMB
Accumulated
Changes in loss reserves
Changes in
Opening Accrued fair value in Closing recognized in
Item Cost accumulated Remarks
balance interest the current balance other
fair value
period comprehensi
ve income
Other important debt investment
Unit：RMB
Other credit items Closing balance Opening balance
Provision for impairment
Unit：RMB
Stage 1 Stage 2 Stage 3
Provision for bad debts Expected credit loss in the Expected credit loss in the Total
Expected credit loss
whole duration (no credit whole duration (credit
in the next 12 months
impairment has occurred) impairment has occurred)
Balance at Jan. 1st, 2021
—— —— —— ——
in current period
Changes in book balance of loss reserves with significant changes in current period
□ Applicable √ Not applicable
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
other information:
16. long-term receivables
(1) long-term receivables
Unit：RMB
Item Closing balance Opening balance Discount rate range
Impairment of bad debt reserves
Unit：RMB
Provision for bad debts Stage 1 Stage 2 Stage 3 Total
Changes in book balance of loss reserves with significant changes in current period
□ Applicable √ Not applicable
(2) Long-term receivables terminated due to transfer of financial assets
(3) Amount of assets and liabilities formed by transferring long-term receivables and continuing
involvement
other information
17. Long term equity investment
Unit：RMB
Closing balance of
Opening balance (book Increase and decrease in the Closing balance (book
Investee provision for
value) current period value)
impairment
18. Investment in other equity instruments
Unit：RMB
Item Closing balance Opening balance
Shanghai Zuihuibao Network Technology Co., Ltd 126,000,000.00 126,000,000.00
Anhui Ningguo Rural Commercial Bank Co., Ltd 26,800,000.00 26,800,000.00
Total 152,800,000.00 152,800,000.00
Disclosure of non tradable equity instrument investment in the current period
Unit：RMB
Reasons for fair
Amount of other value Reasons for
comprehensive measurement and transferring other
Recognized Accumulated Accumulated
Item income its change comprehensive
dividend income profit losses
transferred to included in other income into
retained earnings comprehensive retained earnings
income
Shanghai
Zuihuibao Plan for long term
40,000,000.00
Network holding
Technology Co.,
131
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Ltd
Anhui Ningguo
Plan for long term
Rural Commercial 1,327,872.00
holding
Bank Co., Ltd
Total 1,327,872.00 40,000,000.00
other information:
None
19. Other non-current financial assets
Unit：RMB
Item Closing balance Opening balance
Beijing Jinwu Venture Capital Center
38,050,000.00 38,050,000.00
(limited partnership)
Financial products 172,249,205.48 170,400,315.01
Total 210,299,205.48 208,450,315.01
other information:
20. Investment properties
(1) Investment properties adopting cost measurement mode
√ Applicable □ Not applicable
Unit：RMB
Item Premises and buildings Land-use rights Construction in progress Total
I. Original book value
1. Opening balance 377,111,222.22 473,825,849.87 850,937,072.09
2.Increase in current
period
(1) Outsourcing
(2) Inventory/ Fixed
assets/ Transfer in from
construction in progress
(3) Increase in business
combination
3.Decrease in current
3,201,828.13 3,201,828.13
period
（1）Disposal 3,201,828.13 3,201,828.13
（2）Other transfers
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
4.Closing balance 377,111,222.22 470,624,021.74 847,735,243.96
II. Accumulated
depreciation and
amortization
1. Opening balance 50,891,399.79 71,833,552.56 122,724,952.35
2. Increase in current
4,130,544.03 3,436,473.32 7,567,017.35
period
(1) Provision or
4,130,544.03 3,436,473.32 7,567,017.35
amortization
3.Decrease in current
478,278.09 478,278.09
period
(1) Disposal 478,278.09 478,278.09
(2) Other transfers
4. Closing balance 55,021,943.82 74,791,747.79 129,813,691.61
III. Provision for
impairment
1. Opening balance 6,556,268.55 53,641,335.37 60,197,603.92
2. increase in current
period
(1) Provision
3. Decrease in current
period
（1）Disposal
（2）Other transfers
4. Closing balance 6,556,268.55 53,641,335.37 60,197,603.92
IV. Book value
1. Book value at the end
315,533,009.85 342,190,938.58 0.00 657,723,948.43
of the period
2. Book value at the
319,663,553.88 348,350,961.94 0.00 668,014,515.82
beginning of the period
（2）Investment properties adopting fair value measurement mode
□ Applicable √ Not applicable
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
（3）Investment properties without property right certificate
Unit：RMB
Item Book value Reasons for not completing the property rights certificate application
Premises and buildings 219,092,799.43 In process
Land-use right 5,227,422.33 In process
other information
None
21. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,580,386,983.37 1,612,792,592.67
Total 1,580,386,983.37 1,612,792,592.67
(1) Fixed assets
Unit: RMB
Premises and Decoration of Transportation Electronic Office
Item Total
buildings fixed assets facility equipment equipment
I. Original book value
1. Opening balance 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
2. Increase in the current
733,750.00 12,774,538.52 39,376.40 13,547,664.92
period
(1) Purchase 733,750.00 12,774,538.52 39,376.40 13,547,664.92
(2)Transfer from
construction in
progress
(3) Increase in
business combination
3. Decrease in the
632,059.91 632,059.91
current period
(1) Disposal or
632,059.91 632,059.91
obsolescence
4. Closing balance 1,554,597,283.39 64,708,424.02 79,966,146.51 234,492,833.99 12,081,043.61 1,945,845,731.52
II. Accumulated
depreciation
1. Opening balance 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. Increase in the current 22,460,471.80 4,918,193.58 2,488,796.85 15,469,925.53 223,637.60 45,561,025.36
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
period
(1) Accrual 22,460,471.80 4,918,193.58 2,488,796.85 15,469,925.53 223,637.60 45,561,025.36
3. Decrease in the
239,811.05 239,811.05
current period
(1) Disposal or
239,811.05 239,811.05
obsolescence
4. Closing balance 117,811,406.98 28,695,554.64 69,286,765.29 138,689,429.30 10,896,607.60 365,379,763.81
III. Impairment
provision
1. Opening balance 4,309.80 74,674.54 78,984.34
2. Increase in the current
period
(1) Accrual
3. Decrease in the
current period
(1) Disposal or
obsolescence
4. Closing balance 4,309.80 74,674.54 78,984.34
IV. Book value
1. Closing book value 1,436,785,876.41 36,012,869.38 10,679,381.22 95,799,094.89 1,109,761.47 1,580,386,983.37
2. Opening book value 1,459,246,348.21 40,931,062.96 12,826,676.93 98,494,481.90 1,294,022.67 1,612,792,592.67
(2) Temporarily idle fixed assets
Unit: RMB
Accumulated
Item Original book value Impairment provision Book value Note
depreciation
(3) Fixed assets leased out through operating lease
Unit: RMB
Item Closing book value
(4) Fixed assets without property rights certificate
Unit: RMB
Reasons for not completing the property
Item Book value
rights certificate application
Premises and buildings 747,215,249.27 In process
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
(5) Liquidation of fixed assets
Unit: RMB
Item Closing Balance Opening Balance
other information:
None
22. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 256,986,886.10 214,248,125.04
Total 256,986,886.10 214,248,125.04
(1) Construction in progress
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Offcn Fushun Building 147,653,548.32 147,653,548.32 140,287,691.52 140,287,691.52
Yaxia Bozhou Fortune Plaza 62,847,721.95 62,847,721.95 62,847,721.95 62,847,721.95
GAC-Toyota Bozhou 4S
9,721,381.62 9,721,381.62 9,721,381.62 9,721,381.62
Stores
Huangshan Fudi Stores 1,391,329.95 1,391,329.95 1,391,329.95 1,391,329.95
Rizhao Future Study Town
33,059,632.94 33,059,632.94
Project
New project of Zhongcheng
2,313,271.32 2,313,271.32
Real Estate
Total 256,986,886.10 256,986,886.10 214,248,125.04 214,248,125.04
(2) Changes of significant projects in construction in the current period
Unit: RMB
Includi
Proportion
ng:
of Accumulati Current
Transferred Other capitali
Increase accumulativ Project ve amount interest
Opening fixed assets decrease Closing zation Capital
Item Budget in the e project progress of interest capitali
balance in the in the balance amount sources
period investment (%) capitalizati zation
period period of
in budget on rate (%)
current
(%)
interest
136
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Offcn
330,000 140,287, 7,365,85 147,653,
Fushun 44.74% 44.74% Others
,000.00 694.52 6.80 548.32
Building
Rizhao
Future
195,000 33,059,6 33,059,6
Study 0.00 16.95% 16.95% Others
,000.00 32.94 32.94
Town
Project
525,000 140,287, 40,425,4 180,713,
Total -- -- --
,000.00 694.52 89.74 181.26
(3) Accrual of impairment provision for construction in progress in the period
Unit: RMB
Item Accrual amount Reason
Other information:
None
(4) Engineering materials
Unit: RMB
Closing balance Opening balance
Item
Book balance Impairment provision Book value Book balance Impairment provision Book value
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable √ Not applicable
(2) Productive biological assets measured by fair value
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Right-of-use assets
Unit: RMB
Item Rent Total
I. Original book value
1. Opening balance 1,491,006,998.14 1,491,006,998.14
2. Increased amount in the current period 77,742,880.29 77,742,880.29
(1) New lease contracts 77,742,880.29 77,742,880.29
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
3. Decreased amount in the current period
4. Closing balance 1,568,749,878.43 1,568,749,878.43
II. Accumulated impairment
1. Opening balance
2.Increased amount in the current period 223,626,364.59 223,626,364.59
(1) Accrual 223,626,364.59 223,626,364.59
3. Decreased amount in the current period
(1) Disposal
4. Closing balance 223,626,364.59 223,626,364.59
III. Impairment provision
1. Opening balance
2.Increased amount in the current period
(1) Accrual
3.Decreased amount in the current period
(1) Disposal
4.Closing balance
IV. Book value
1. Closing book value 1,345,123,513.84 1,345,123,513.84
2. Opening book value 1,491,006,998.14 1,491,006,998.14
Other information:
None
26. Intangible assets
(1) Intangible assets
Unit: RMB
Non-patent Software use Trademark
Item Land use right Patent right Total
technology right right
I. Original book value
1. Opening balance 446,725,693.93 7,774,286.02 7,140,521.53 461,640,501.48
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
2. Increase in the period 96,743,250.00 96,743,250.00
(1)Purchase 96,743,250.00 96,743,250.00
(2) Internal R&D
(3) Increase from business
combination
3. Decrease in the period
(1) Disposal
4. Closing balance 543,468,943.93 7,774,286.02 7,140,521.53 558,383,751.48
II. Accumulated amortization
1. Opening balance 29,028,132.73 3,810,053.83 2,446,748.17 35,284,934.73
2. Increase in the period 6,984,256.42 359,948.50 363,778.74 7,707,983.66
(1) Accrual 6,984,256.42 359,948.50 363,778.74 7,707,983.66
3. Decrease in the period
(1) Disposal
4. Closing balance 36,012,389.15 4,170,002.33 2,810,526.91 42,992,918.39
III. Impairment provision
1. Opening balance 3,111.00 3,111.00
2. Increase in the period
(1) Accrual
3. Decrease in the period
(1) Disposal
4. Closing balance 3,111.00 3,111.00
IV. Book value
1. Closing book value 507,456,554.78 3,601,172.69 4,329,994.62 515,387,722.09
2. Opening book value 417,697,561.20 3,961,121.19 4,693,773.36 426,352,455.75
No intangible assets formed through internal research and development at period-end.
(2) Land use rights without property rights certificate
Unit: RMB
139
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Item Book value Reasons for not completing property rights certificate application
Land-use rights 232,007,692.55 in process
Other information:
None
27. Development expenditure
Unit: RMB
Increase in the period Decrease in the period
Opening Internal Recognized Transferred to Closing
Item
balance development Others as intangible current profit balance
expenditure assets and loss
Other information:
None
28. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increase in the current period Decrease in the current period
Name of the investee
Formed by
and item forming Opening balance Closing balance
business Disposal
goodwill
combination
Shandong Kunzhong
39,378,573.51 39,378,573.51
Real Estate Co., Ltd.
Nanjing Huiyue
Hotel Management 60,489,146.87 60,489,146.87
Co., Ltd.
Total 99,867,720.38 99,867,720.38
(2) Goodwill impairment provision
Unit: RMB
Name of the Increase in the current period Decrease in the current period
investee and item Opening balance Closing balance
Accrual Disposal
forming goodwill
Total
140
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Relevant information of asset group or combination of asset group where goodwill is located
The Company's acquisition of Shandong Kunzhong Real Estate Co., Ltd. in 2016 generated goodwill of RMB
39,378,573.51. The Company distributed the goodwill into relevant asset groups. The goodwill relevant asset
groups consisted of long-term assets, goodwill and deferred tax liability. The recoverable amount of the asset
groups is determined based on the net amount of fair value after deduction of the disposal expenses. The
Company's acquisition of Nanjing Huiyue Hotel Management Co., Ltd. in 2018 generated goodwill of RMB
60,489,146.87. The Company distributed the goodwill into relevant asset groups. The goodwill relevant asset
groups consisted of long-term assets, goodwill and deferred tax liability. The recoverable amount of the asset
groups is determined based on the net amount of fair value after deduction of the disposal expenses.
Statement on the confirmation methods for the testing of goodwill impairment, key parameters (such as the
growth rate in the forecast period when the present value of future cash flow is predicted, growth rate in the stable
period, profit rate, discount rate, forecast period, etc.) and goodwill impairment loss:
Details on the method of goodwill impairment testing and provision for goodwill impairment are on Note V.
31, “Long-term Asset Impairment” of this report for reference.
The recoverable amount of the Company's asset groups containing goodwill is estimated according to the fair
value of the asset groups containing goodwill after deduction of disposal expenses. For assets with fair value that
can be referred to in the market, the market comparison method is applied to estimate, and at the same time, the
difference about time, transaction, region and other factors are considered to determine the reference date fair value
of the assets to be estimated. For other assets, the reference date fair value of the assets to be estimated will be
measured by cost method based on the status quo of assets. The Company entrusted an asset appraisal company to
test goodwill impairment. After the test, no impairment of goodwill was found, and no impairment provision was
made.
Impact of goodwill impairment test
Other information
29. Long-term deferred expenses
Unit: RMB
Item Opening balance Increase in the period Amortization in the period Other decrease Closing balance
Decoration
400,291,298.64 17,011,642.19 25,886,666.44 391,416,274.39
expenditure
Marketing fee 4,647,461.46 124,000.00 281,139.54 4,490,321.92
Property and heating 552,757.48 82,887.94 47,434.94 588,210.48
Other 7,017,148.62 624,000.00 994,784.60 6,646,364.02
Total 412,508,666.20 17,842,530.13 27,210,025.52 403,141,170.81
30. Deferred tax assets and deferred tax liabilities
(1) Deferred income tax assets without offsetting
Unit: RMB
Item Closing balance Opening balance
141
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment of
2,917,832.36 647,660.06 1,879,621.51 412,811.14
assets
Deductible losses 84,774,502.49 21,193,625.63 84,774,502.49 21,193,625.63
Total 87,692,334.85 21,841,285.69 86,654,124.00 21,606,436.77
(2) Deferred income tax liabilities without offsetting
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
difference difference
Appraisal and
appreciation of
consolidated assets of 360,122,696.52 90,030,674.13 365,183,429.96 91,295,857.49
non-identical controlled
enterprises
Changes in fair value of
other equity instrument 40,000,000.00 10,000,000.00 40,000,000.00 10,000,000.00
investments
Changes in fair value of
transactional financial 31,766,038.41 4,722,014.75 22,697,173.26 3,381,587.10
assets held for trading
Total 431,888,734.93 104,752,688.88 427,880,603.22 104,677,444.59
(3) Deferred income tax assets or liabilities presented in net amount after offsetting
Unit: RMB
Mutual offset amount at Closing balance of Mutual offset amount at Opening balance of
Item the end deferred tax assets or the end deferred tax assets or
of the reporting period liabilities after offset of the reporting period liabilities after offset
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 221,561.67
Deductible losses 153,903,457.17 55,733,407.18
142
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Total 153,903,457.17 55,954,968.85
(5) Deductible losses of unrecognized deferred income tax assets will expire in the following years
Unit: RMB
Year Closing balance Opening balance Note
2021 10,989,030.45
2022 119,383.82 119,383.82
2023 11,480,964.23 11,480,964.23
2024 9,916,453.43 9,975,369.01
2025 22,613,078.75 23,168,659.67
2026 109,773,576.94
Total 153,903,457.17 55,733,407.18 --
Other information:
31. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Book Impairment Book Impairment
Book value Book value
balance provision balance provision
3,099,666,9 3,099,666,9 601,000,00 601,000,00
Prepayment for land
94.36 94.36 0.00 0.00
500,800,00 500,800,00 500,800,00 500,800,00
Investment funds
0.00 0.00 0.00 0.00
152,033,62 152,033,62 35,584,390. 35,584,390.
Prepayment for construction
6.50 6.50 50 50
10,816,231. 10,816,231. 13,707,312. 13,707,312.
Input tax to be deducted / to be certified
50 50 81 81
3,763,316,8 3,763,316,8 1,151,091,7 1,151,091,7
Total
52.36 52.36 03.31 03.31
32. Short-term borrowings
(1) Classification
Unit: RMB
Item Closing balance Opening balance
Pledge borrowings 479,768,050.00
Credit borrowings 3,875,201,272.25 3,496,251,279.22
Total 3,875,201,272.25 3,976,019,329.22
143
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Description of the classification of short-term borrowings:
(2) Overdue short-term loans
The total amount of overdue short-term loans at the end of the period is RMB 0.00 , among which the important
overdue short-term loans are as follows.
Borrower Closing balance Borrowing rates Overdue time Overdue interest rates
33. Transactional financial liabilities
Unit: RMB
Item Closing balance Opening balance
Inc:
Inc:
Other information:
None
34. Derivative financial liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
None
35. Notes payable
Unit: RMB
Category Closing balance Opening balance
The amount of unpaid notes payable due by the end of current period is RMB 0.00.
36. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Fixed assets payment 83,112,000.00 83,112,000.00
Project payments 50,477,611.42 53,138,461.93
Direct cost for class operating 3,876,587.87 47,005,391.45
Marketing fees 163,381.00 12,918,597.97
Decoration costs 12,241,210.93 11,312,336.01
144
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Rent and property fees 4,337,615.50
Total 149,870,791.22 211,824,402.86
(2) Major accounts payable with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
37. Receipts in advance
(1) List of receipts in advance
Unit: RMB
Item Closing balance Opening balance
(2) Major receipts in advance with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
38. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Advanced receipts from training 4,228,450,064.98 4,925,351,396.44
Others 54,368.93 76,912.89
Total 4,228,504,433.91 4,925,428,309.33
Amount and reasons for major changes in book value in the period
Unit: RMB
Item Changes in amount Reasons for changes
39. Employee compensation
(1) List of employee compensation
Unit: RMB
Item Opening balance Increase in the period Decrease in the period Closing balance
I. Short-term compensation 636,827,645.79 3,089,484,708.33 3,363,857,969.86 362,454,384.26
II. Post-employment
welfare-defined 620,788.20 190,838,474.97 182,273,212.70 9,186,050.47
contribution plan
III. Dismission welfare 356,644.67 356,644.67
Total 637,448,433.99 3,280,679,827.97 3,546,487,827.23 371,640,434.73
145
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
(2) List of short-term compensation
Unit: RMB
Item Opening balance Increase in the period Decrease in the period Closing balance
1. Wages or salaries,
bonuses, allowances 628,829,674.62 2,887,560,462.94 3,160,928,178.48 355,461,959.08
and subsidies
2. Staff welfare 9,591,743.11 9,591,743.11
3. Social security
6,950,840.17 115,339,522.25 115,976,797.12 6,313,565.30
contributions
Inc: Medical insurance 6,934,136.71 108,324,277.72 109,161,811.42 6,096,603.01
Employment injury
3,575.24 3,657,756.77 3,446,907.76 214,424.25
insurance
Maternity insurance 13,128.22 3,357,487.76 3,368,077.94 2,538.04
4. Housing fund 1,041,581.00 76,918,831.83 77,282,458.19 677,954.64
5. Labor union
expenditure and
5,550.00 74,148.20 78,792.96 905.24
employee education
expenditure
Total 636,827,645.79 3,089,484,708.33 3,363,857,969.86 362,454,384.26
(3) List of post-employment welfare-defined contribution plan
Unit: RMB
Item Opening balance Increase in the period Decrease in the period Closing balance
1. Basic endowment
600,449.08 183,704,612.99 175,402,074.97 8,902,987.10
insurance
2. Unemployment
20,339.12 7,133,861.98 6,871,137.73 283,063.37
insurance
Total 620,788.20 190,838,474.97 182,273,212.70 9,186,050.47
Other information:
None
40. Taxes payable
Unit: RMB
Item Closing balance Opening balance
Value-added tax 35,808,803.54 8,571,895.29
146
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Corporate income tax 182,578.31 119,249,068.60
Individual income tax 278,487.34 160,427.08
City maintenance and construction tax 2,625,577.76 549,182.28
Property tax 1,307,267.91 1,251,091.59
Land use tax 955,384.35 806,176.59
Education surcharge 1,134,086.67 238,219.17
Others 873,430.65 285,710.18
Total 43,165,616.53 131,111,770.78
41. Other payables
Unit: RMB
Item Closing balance Opening balance
Other payables 51,658,574.07 9,479,383.03
Total 51,658,574.07 9,479,383.03
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Major overdue interest payable:
Unit: RMB
Borrower Amount outstanding Reason
Other information:
None
(2) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Other information including reasons for major dividends payable overdue for more than one year:
None
(3) Other accounts payable
1) List of other payables by nature of payment
Unit: RMB
Item Closing balance Opening balance
Current expense 42,805,952.64 1,597,271.61
147
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Social security and housing fund 1,869,849.65 924,969.11
Reimbursed expenses and others 6,982,771.78 6,957,142.31
Total 51,658,574.07 9,479,383.03
2) Major other payables with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
Other information:
None
42. Held-for-sale liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
None
43. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease liabilities due within one year 507,142,087.47 699,372,590.26
Total 507,142,087.47 699,372,590.26
44. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Output tax to be transferred 126,855,133.02 147,765,156.66
Total 126,855,133.02 147,765,156.66
Changes in short-term bonds payable
Unit: RMB
Premium
Amount Issuance Interest and
Name of Date of Bond Opening Repay in Closing
Par value of in the accrued at discount
bond issuance period balance the period balance
issuance period par value amortizati
on
Other information:
148
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
None
45. Long-term borrowings
(1) Category of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
46. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in bonds payable (Excluding other financial instruments such as preferred stocks or perpetual bonds
that are classified as financial liabilities)
Unit: RMB
Amount Issuance Interest Premium and
Name of Date of Bond Opening Repay in Closing
Par value of in the accrued at discount
bond issuance period balance the period balance
issuance period par value amortization
Total -- -- --
(3) Description of conversion conditions and conversion time of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilities
Information of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the
period
Table of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Unit: RMB
Financial Opening Increase in the period Decrease in the period Closing
instruments issued Amount Book value Amount Book value Amount Book value Amount Book value
Explanation of the basis for classifying other financial instruments as financial liabilities
Other information
47. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease of premises and buildings 534,044,069.15 632,866,068.34
149
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Total 534,044,069.15 632,866,068.34
48. Long-term payable
Unit: RMB
Item Closing balance Opening balance
(1) List of long-term payable by nature of payment
Unit: RMB
Item Closing balance Opening balance
(2) Special payable
Unit: RMB
Decrease in the
Item Opening balance Increase in the period Closing balance Reason
period
Other information:
49. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Plan assets:
Unit: RMB
Item Amount in the current period Amount in the previous period
Net liabilities of defined benefit plan (net assets)
Unit: RMB
Item Amount in the current period Amount in the previous period
Description of the defined benefit plan’s contents, relevant risks and impact on the Company’s cash flow, time and
uncertainty:
Description of the analysis result of the define benefit plan’s significant actuarial assumptions and sensitivity:
150
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Other information:
50. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reason
51. Deferred income
Unit: RMB
Decrease in the
Item Opening balance Increase in the period Closing balance Reason
period
Projects involving government subsidies
Unit: RMB
Amount
Amount Related to
Opening Increased included in Amount of Other Closing
Item included in assets /
balance subsidies non-operating cost reduction changes balance
other income income
income
52. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
53. Share capital
Unit: RMB
Changes in the current period (+/-)
Shares
Opening
New shares converted Closing balance
balance Bonus shares Others Subtotal
issued from capital
reserve
Total number of
103,807,623.00 103,807,623.00
shares
Other information:
None
54. Other equity instruments
(1) Information of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the
151
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
period
None
(2) Changes for other financial instruments such as preferred stocks and perpetual bonds issued at the end of the
period
Unit: RMB
Financial Opening Increase in the period Decrease in the period Closing
instruments
Amount Book value Amount Book value Amount Book value Amount Book value
issued
Changes of other equity instruments in the current period, explanations of the reasons for the changes, and the basis
for related accounting treatments:
Other information:
None
55. Capital reserve
Unit: RMB
Item Opening balance Increase in the period Decrease in the period Closing balance
Capital premium (equity premium) 1,225,481,049.50 1,225,481,049.50
Total 1,225,481,049.50 1,225,481,049.50
Other information, including changes in the period and reasons for the changes:
None
56. Treasury stock
Unit: RMB
Item Opening balance Increase in the period Decrease in the period Closing balance
Other information, including changes in the period and reasons for the changes:
None
57. Other comprehensive income
Unit: RMB
Item Opening Amount for the current period Closing
152
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
balance Less: Earned to Less: Earned to balance
Attribu
Amount other other
table Attributa
before comprehensive comprehensive Less:
to the ble to
income income in the income in the incom
parent minority
tax for previous period previous period e tax
compa sharehold
the and transferred and transferred to expens
ny, ers after
current to profit and loss retained earnings es
after tax
period in the current in the current
tax
period period
1. Other
comprehensive
income not
30,000,000.00 30,000,000.00
reclassified
into gains or
losses
Changes in
the fair
value of
30,000,000.00 30,000,000.00
other equity
instrument
investments
Total other
comprehensive 30,000,000.00 30,000,000.00
income
Other information: including the adjustment of the effective part of the cash flow hedge gains and losses converted
into the initially confirmed amount of the hedged item:
None
58. Special reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other information including changes in the current period and the corresponding reasons:
None
59. Surplus reserve
Unit: RMB
Item Opening balance Increase in the current Decrease in the current Closing balance
153
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
period period
Statutory surplus reserve 45,000,000.00 45,000,000.00
Total 45,000,000.00 45,000,000.00
Information for surplus reserve, including the changes and the reasons in the current period:
None.
60. Retained earnings
Unit: RMB
Item Amount for the current period Amount for the previous period
Retained earnings at the end of the previous period before
2,870,839,120.70 2,046,657,231.32
adjustment
Retained earnings at the beginning of the year after adjustment 2,870,839,120.70 2,046,657,231.32
Add: net profit attributable to owners of the Parent Company
-97,162,509.03 2,304,357,742.74
for the current period
Dividend payable for ordinary shares 1,480,175,853.36
Retained earnings at the end of the year 2,773,676,611.67 2,870,839,120.70
Details for the adjustment of the retained earnings at the beginning of the period:
(1) The retained earnings at the beginning of the period impacted by the retroactive adjustment of the ASBE
(Accounting Standards for Business Enterprises) and its new regulations:RMB 0.00 .
(2) The retained earnings at the beginning of the period impacted by the changes in accounting policies: RMB0.00 .
(3) The retained earnings at the beginning of the period impacted by the major accounting error correction:
RMB0.00 .
(4) The retained earnings at the beginning of the period impacted by the change of combination scope under
common control:RMB0.00 .
(5) The retained earnings at the beginning of the period impacted by other adjustments:RMB0.00 .
61. Revenue and operating cost
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Operating cost Revenue Operating cost
Main business 4,828,531,538.19 2,665,607,334.33 2,788,186,999.66 1,428,476,161.97
Other business 27,466,725.31 19,343,903.91 19,793,480.94 24,135,018.42
Total 4,855,998,263.50 2,684,951,238.24 2,807,980,480.60 1,452,611,180.39
Information about income:
154
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Types of Contracts Section 1 Section 2 Total
Inc:
Inc:
Inc:
Inc:
Inc:
Inc:
Inc:
Information about the fulfillment of obligations:
None
Information about transaction price amortized in the rest of the obligation to be fulfilled:
The income from the unfulfilled or uncompleted obligation with signed contracts at the end of the reporting period:
RMB 0.00 .
Other information
62. Taxes and surcharges
Unit: RMB
Item Amount for the current period Amount for the previous period
City maintenance and construction tax 5,442,750.87 44,663.79
Education surcharge 3,893,418.07 36,306.17
Property tax 3,139,389.81 3,902,053.06
Land use tax 1,754,176.99 1,693,313.52
Vehicle and vessel use tax 90,412.50 99,003.90
Stamp tax 1,286,352.59 419,401.69
Others 211,050.16 82,890.91
Total 15,817,550.99 6,277,633.04
Other information:
None
63. Sales expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee’s benefits 692,182,853.04 514,355,130.96
155
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Marketing fee 96,439,119.67 78,835,398.47
Rent property, depreciation and amortization expenses 107,794,443.67 62,420,815.84
Travel expenses 33,273,322.81 29,851,665.86
Others 46,282,733.64 15,354,442.79
Total 975,972,472.83 700,817,453.92
Other information:
None
64. General and administrative expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee’s benefits 408,979,549.36 348,545,272.28
Rent property, depreciation and amortization expenses 63,376,032.40 58,897,950.26
Office expenses 80,586,204.68 46,201,346.59
Share payments 26,900,000.00
Travel expenses 24,934,914.17 19,852,720.39
Welfare fee 7,656,913.34 2,910,382.85
Others 22,361,198.85 15,651,781.77
Total 607,894,812.80 518,959,454.14
Other information:
None
65. Research and development expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Employee’s benefits 506,860,968.14 364,891,204.61
Travel expenses 11,235,148.92 7,810,939.90
Others 24,779,695.37 10,525,386.50
Total 542,875,812.43 383,227,531.01
Other information:
None
66. Financial expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
156
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Interest expenses 126,914,597.79 85,130,012.11
Less: Interest income 24,674,100.13 2,889,907.48
Service Charges 155,563,838.75 100,414,519.03
Total 257,804,336.41 182,654,623.66
67. Other income
Unit: RMB
Sources of other income Amount for the current period Amount for the previous period
Tax reduction and exemption 62,069,714.49 79,195,831.18
Subsidies for job security 998,635.38 4,606,016.51
Subsidies on insurance for the disabled 185,078.59
Rent subsidy 109,500.00 49,680.00
Tax handling fee refund 98,186.92 483,555.74
Government rent subsidy 80,000.00 109,500.00
Small financial support income from the
56,814.73 10,124.01
government
Total 63,597,930.11 84,454,707.44
68. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Dividend income from other equity
instruments investment during the holding 1,327,872.00
period
Interest income obtained from debt investment
31,184,646.29 37,890,649.58
during the holding period
Investment income from financial product 28,910,968.77 90,927,476.86
Total 61,423,487.06 128,818,126.44
Other information:
None
69. Net exposure hedging income
Unit: RMB
Item Amount for the current period Amount for the previous period
Other information:
None
157
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
70. Gains from changes in fair values
Unit: RMB
Sources of gains from changes in fair
Amount for the current period Amount for the previous period
values
Transactional financial assets 9,068,865.15
Total 9,068,865.15
Other information:
None
71. Impairment losses of credit
Unit: RMB
Item Amount for the current period Amount for the previous period
Loss on bad debts of other receivables -355,501.83
Loss on bad debts of receivables -1,093,651.92 -770,761.79
Total -1,449,153.75 -770,761.79
Other information:
72. Impairment losses of assets
Unit: RMB
Item Amount for the current period Amount for the previous period
Other information:
None
73. Income from assets disposal
Unit: RMB
Sources of income from assets disposal Amount for the current period Amount for the previous period
Fixed assets 55,159.74 162,043.59
Investment properties -223,987.77
Total -168,828.03 162,043.59
74. Non-operating income
Unit: RMB
Amount included in current
Item Amount for the current period Amount for the previous period
non-recurring gains and losses
Governmental subsidy 19,800.00
158
Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Others 37,698.84 348.00 37,698.84
Total 37,698.84 20,148.00 37,698.84
Government subsidy reckoned into current gains and losses:
Unit: RMB
Whether it is Amount for Amount for Related to
Whether the subsidy impacts
Item Entity Purpose Type special the current the previous assets/
the gain/loss of the year
subsidy period period income
Other information:
None
75. Non-operating expenses
Unit: RMB
Amount for the previous Amount included in the current
Item Amount for the current period
period non-recurring gains or losses
Outward donation 100,001.18 90,002.28 100,001.18
Forfeiture and overdue fine 192,888.57 3,500.00 192,888.57
Loss of non-current assets
5,264.50 5,264.50
disposal
Expenses on compensations 50,900.00 50,900.00
Total 349,054.25 93,502.28 349,054.25
Other information:
None
76. Income tax expenses
(1) Statement of income tax expenses
Unit: RMB
Item Amount for the current period Amount for the previous period
Current income tax expense 167,187.30 4,399.43
Deferred income tax expense -159,604.63 9,051,295.01
Total 7,582.67 9,055,694.44
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Amount for the current period
Total profit -97,157,015.07
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Income tax expenses calculated at statutory/applicable tax rate(s) -14,573,552.26
Impact from different tax rates applicable to subsidiaries -1,758,854.01
Impact from adjustment of previous periods income tax 57,195.60
Impact from non-taxable income -331,968.00
Impact from non-deductible cost, expense and loss 89,605.73
Impact from using deductible losses of previously unrecognized
-67,674.20
deferred income tax assets
Impact from deductible temporary differences or deductible
losses of deferred income tax assets unrecognized in the current 16,592,829.81
period
Expense of income tax 7,582.67
Other information:
None
77. Other comprehensive income
For details, please refer to Note VII(57) “Other comprehensive income” of this report.
78. Cash flow statement items
(1) Other cash received related to operating activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Deposits and guarantees 28,930,208.62 5,802,263.50
Government subsidy and other non-operating income 1,528,215.62 5,403,032.41
interest income 24,674,100.13 2,889,907.48
Reserve funds 67,210.12 43,861.00
Reimbursed expenses and others 11,835.47
Total 55,211,569.96 14,139,064.39
Information of cash received from other operating activities:
None
(2) Other Cash paid related to operating activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Daily expenses 332,369,243.27 468,436,624.08
Service charges 117,563,838.75 77,914,519.03
Deposits and guarantees 107,899,911.95 74,271,198.10
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Non-operating expenses 343,789.75 93,502.28
Reserve funds 372,060.12 259,882.23
Total 558,548,843.84 620,975,725.72
Information of cash paid for other operating activities:
None
(3) Other cash received related to investment activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Information of cash received from other investment activities:
None
(4) Other cash paid related to investment activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Information of cash paid for other investment activities:
None
(5) Other cash received related to fundraising activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Information of cash received from other fundraising activities:
None
(6) Other cash paid related to fundraising activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Service charges 333,478.85
Rental payment 392,129,451.92
Total 392,129,451.92 333,478.85
Information of cash paid for other fundraising activities:
None
79. Supplementary information on cash flow statement
(1) Supplementary information on cash flow statement
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Supplementary information Amount for the current period Amount for the previous period
1. Net profit adjusted to cash flow of operating activities: -- --
Net profit -97,164,597.74 -233,032,328.60
Add: Provision for impairment of assets 1,449,153.75 770,761.79
Depreciation of fixed assets and productive
53,128,042.71 40,449,626.79
biological assets, and depletion of oil and gas assets
Depreciation of right-of-use assets 223,626,364.59
Amortization of intangible assets 7,707,983.66 3,377,910.95
Amortization of long-term deferred expense 25,886,666.44 31,958,369.36
Losses on disposal of fixed assets, intangible assets
168,828.03 -162,043.59
and other long-term assets (gains are indicated by “-”)
Losses on write-off of fixed assets (gains are
indicated by “-”)
Losses on changes in fair values (gains are indicated
-9,068,865.15
by “-”)
Financial expenses (income is indicated by “-”) 126,914,597.79 85,130,012.11
Losses from investments (gains are indicated by “-”) -61,423,487.06 -128,818,126.44
Decrease in deferred income tax assets (increase is
-234,848.92 10,319,742.19
indicated by “-”)
Increase in deferred income tax liabilities (decrease is
75,244.29 -1,268,447.18
indicated by “-”)
Decrease in inventories (increase is indicated by “-”)
Decrease in operating receivables (increase is
-142,759,060.10 -198,166,879.62
indicated by “-”)
Increase in operating payables (decrease is indicated
-1,067,397,480.24 4,426,216,906.43
by “-”)
Others 26,900,000.00
Net cash flow from operating activities -939,091,457.95 4,063,675,504.19
2. Significant investment and financing activities involving
-- --
cash flow:
Conversion of debt into capital
Convertible bonds due within 1 year
Fixed assets acquired under financing lease
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3. Net changes in cash and cash equivalents: -- --
Closing balance of cash 3,560,210,085.18 4,665,798,912.43
Less: Opening balance of cash 5,950,036,489.12 2,724,335,001.58
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase of cash and cash equivalents -2,389,826,403.94 1,941,463,910.85
(2) Net cash paid for acquiring subsidiaries for the current period
Unit: RMB
Amount
Inc: --
Inc: --
Inc: --
Other information:
None
(3) Net cash acquired from disposal of subsidiaries in the current period
Unit: RMB
Amount
Inc: --
Inc: --
Inc: --
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 3,560,210,085.18 5,950,036,489.12
Including: Cash on hand 90,792.90 67,906.76
Cash on bank available for payment at any time 3,366,159,584.89 5,881,843,030.73
Other monetary funds available for payment at any time 193,959,707.39 68,125,551.63
III. Closing balance of cash and cash equivalent 3,560,210,085.18 5,950,036,489.12
80. Notes on statement of changes in owners' equity
Explanation of the adjustment of name of “other items” and the amount to the closing balance at the end of the
previous year:
Not applicable
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81. Assets with restricted ownership or rights of use
Unit: RMB
Item Closing book value Reason for restriction
Monetary funds 358,600.00 guarantees
Total 358,600.00 —
82. Monetary items denominated in foreign currency
(1) Monetary items denominated in foreign currency
Unit: RMB
Closing balance of foreign Closing balance of RMB
Item Exchange rate
currency converted
Monetary funds — —
Inc: USD
EURO
HKD
Accounts receivable — —
Inc: USD
EURO
HKD
Long-term borrowings — —
Inc: USD
EURO
HKD
(2) Descriptions for out-bound operational entity, including the disclosure of important out-bound entity’s principal
place of business, recording currency and the basis of selection. Reasons should be revealed if the recording
currency changes.
□ Applicable √ Not applicable
83. Hedging
Disclosure of hedging items, related hedging tools and the qualitative and quantitative information on hedged risks
according to hedge categories:
Not applicable
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84. Government subsidies
(1) General information of Government subsidies
Unit: RMB
Types Amount Listed items Amount included in current gains and losses
Subsidy for job security 998,635.38 Other income 998,635.38
Rent subsidy 109,500.00 Other income 109,500.00
Government rent subsidy 80,000.00 Other income 80,000.00
Small financial support income from the government 56,814.73 Other income 56,814.73
Subsidies on insurance for the disabled 185,078.59 Other income 185,078.59
Total 1,430,028.70 1,430,028.70
(2) Refund of government subsidies
□ Applicable √ Not applicable
Other information:
None
85. Others
None
Section VIII. Changes in the Consolidation Scope
1. Consolidation of non-identical controlled enterprises
(1) Consolidation of non-identical controlled enterprises for the current period
Unit: RMB
Income of the Net profit of
Basis of acquiree from the acquiree
Time of Cost of Proportion of Ways of
Name of the Date of determining the purchase from the
acquiring acquiring equity acquiring
acquiree acquisition the date of date to the purchase date
equity equity acquisition equity
acquisition end of the to the end of
period the period
Other information:
None
(2) Merger costs and goodwill
Unit: RMB
Merger costs
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Explanation of the method of determining the fair value of the merger costs, and contingent consideration and its
changes:
The main reasons for the formation of large amount of goodwill:
(3) The identifiable assets and liabilities of the acquiree at the date of acquisition
Unit: RMB
Fair value at the date of acquisition Book value of the date of acquisition
The method of determining the fair value of identifiable assets and liabilities:
The contingent liabilities of the acquiree assumed in the business combination:
Other information:
(4) Gains or losses arising from re-measurement of equity held before the purchase date at fair value
Whether there is a transaction that realizes business combination step by step through multiple transactions and
obtains control during the reporting period
□ Yes √ No
(5) Relevant descriptions about the failure of determining the merger consideration or the fair value of the
identifiable assets and liabilities of the acquiree on the date of acquisition or at the end of the merger period
(6) Other information
2. Consolidation of identical controlled enterprises
(1) Consolidation of identical controlled enterprises for the current period
Unit: RMB
Net profit of
Income of the
the merged
Basis for merged party Net profit of
Basis of party from the Income of the
Equity ratio business from the the merged
Date of determining beginning of merged party
Name of the obtained in combination beginning of party during
business the the during the
merged party the business under combination the
combination combination combination comparison
combination common period to the comparison
date period to the period
control combination period
combination
date
date
Other information:
(2) Merger costs
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Merger costs
Descriptions for the contingent consideration and its changes:
None
(3) Book value of assets and liabilities of the merged party on the combination date
Unit: RMB
Combination date End of the previous period
Contingent liabilities of the merged party assumed in the business combination:
None
3. Reverse purchase
Basic information of the transaction, the basis for recognizing the transaction as reverse purchase, whether the
assets and liabilities retained by the listed company constitute a business and its basis, the determination of the
merger cost, the adjustment amount of equity and its calculation method when treated as equity transactions:
None
4. Disposal of subsidiaries
Whether there is a situation where a single disposal of the investment in the subsidiary results in the loss of control
□ Yes √ No
Whether there is a situation where the investment in the subsidiary disposed step by step through multiple
transactions results in the loss of control in the current period
□ Yes √ No
5. Changes in the scope of consolidation due to other reasons
Explanation of the changes in the scope of consolidation caused by other reasons (such as newly established
subsidiaries, liquidation subsidiaries, etc.) and the relevant circumstances:
Company Shareholding ratio（%） Reasons of changes
Anshan Tiedong Offcn Education Training School Co.,Ltd. 100.00 New establishment
Diqing Offcn Training School Co. Ltd 100.00 New establishment
Wenling Offcn Information Consultancy Co. Ltd. 100.00 New establishment
6. Others
Section IX. Interest In Other Entities
1. Interest in subsidiaries
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
(1) Composition of the Company
Shareholding ratio Acquisiti
Principal place Place of Nature of
Name of subsidiaries on
of business registration business Direct Indirect
method
Service Reverse
1. Offcn Ltd. Beijing Beijing 100.00%
industry purchase
Merchan New
2. Wuhu Yawei Automobile Sales Service Co., Ltd Wuhu Wuhu dise 100.00% establish
sales, etc. ment
New
3. Ningguo Yaxia Automobile Driver Training Service
Ningguo Ningguo 100.00% establish
School (Co., Ltd.) industry
ment
Merchan New
4. Huangshan Yaxia Fudi Automobile Sales
Huangshan Huangshan dise 100.00% establish
Services Co., Ltd.
sales, etc. ment
Merchan New
5. Chaohu Yaxia Kaixuan Automobile Sales
Hefei Hefei dise 100.00% establish
Services Co., Ltd.
sales, etc. ment
New
6. Bozhou Yaxia Automobile Driver Training Service
Bozhou Bozhou 100.00% establish
School Co., Ltd. industry
ment
Merchan
7. Suzhou Bokai Automobile Sales Services Co., Acquisiti
Suzhou Suzhou dise 100.00%
Ltd. on
sales, etc.
New
8. Beijing Offcn Future Education Technology Co. Service
Beijing Beijing 100.00% establish
Ltd. industry
ment
New
9. Beijing Offcn Future Research Education Service
Beijing Beijing 100.00% establish
Technology Co., Ltd. industry
ment
New
Service
10. Shaanxi Offcn Education Technology Co. Ltd. Xi’an Xi’an 100.00% establish
industry
ment
New
11. Chengdu Offcn Future Education Training Service
Chengdu Chengdu 100.00% establish
School Co. Ltd. industry
ment
New
Service
12. Zhejiang Offcn Education Technology Co. Ltd. Hangzhou Hangzhou 100.00% establish
industry
ment
13. Taizhou Offcn Future Enterprise Management Taizhou Taizhou Service 100.00% New
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Consulting Co., Ltd. industry establish
ment
New
14. Beijing Offcn Xinzhiyu Online Technology Service
Beijing Beijing 100.00% establish
Co., Ltd. industry
ment
New
15. Hulunbuir Hailar Offcn Education Information Service
Hulunbuir Hulunbuir 100.00% establish
Consulting Co., Ltd. industry
ment
New
16. Xilinhot Offcn Future Education Consulting Service
Xilinhot Xilinhot 100.00% establish
Co., Ltd. industry
ment
New
17. Yueqing Lecheng Offcn Training Center Co., Service
Yueqing Yueqing 100.00% establish
Ltd. industry
ment
New
18. Jiaozuo Offcn Future Education Service Co., Service
Jiaozuo Jiaozuo 100.00% establish
Ltd. industry
ment
New
19. Xinzheng Offcn Cultural Communication Co., Service
Zhengzhou Zhengzhou 100.00% establish
Ltd. industry
ment
New
20. Chongqing Jiangbei Offcn Vocational Service
Chongqing Chongqing 100.00% establish
Examination Training Co., Ltd. industry
ment
New
21. Nanning Offcn Future Education Consulting Service
Nanning Nanning 100.00% establish
Co., Ltd. industry
ment
New
22. Baiyin Offcn Future Education Consulting Co., Service
Baiyin Baiyin 100.00% establish
Ltd. industry
ment
New
23. Beijing Xindezhiyuan Enterprise Management Service
Beijing Beijing 100.00% establish
Consulting Co., Ltd. industry
ment
Service Acquisiti
24. Nanjing Huiyue Hotel Management Co., Ltd. Nanjing Nanjing 100.00%
industry on
Service Acquisiti
25. Shandong Kunzhong Real Estate Co., Ltd. Jinan Jinan 100.00%
industry on
New
26. Sanmenxia Offcn Cultural Communication Co., Service
Sanmenxia Sanmenxia 100.00% establish
Ltd. industry
ment
27. Liaoning Offcn Academic & Cultural Shenyang Shenyang Service 100.00% New
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Exchange Co., Ltd. industry establish
ment
New
28. Liaoning Offcn Education Technology Co., Shenfuxinq Service
Shenfuxinqu 100.00% establish
Ltd. u industry
ment
New
29. Shandong Offcn Education Technology Co., Service
Qingdao Qingdao 100.00% establish
Ltd. industry
ment
New
30. Jilin Changyi Offcn Education Training School Service
Jilin Jilin 100.00% establish
Co., Ltd. industry
ment
New
Service
31. Yuxi Offcn Training School Co., Ltd. Yuxi Yuxi 100.00% establish
industry
ment
New
Service
32. Tonghua Offcn Training School Co., Ltd. Tonghua Tonghua 100.00% establish
industry
ment
New
33. Hunan Lighsalt Offcn Education Technology Service
Changsha Changsha 90.00% establish
Co., Ltd. industry
ment
New
Service
34. Tianjin Hexi Offcn Training School Co., Ltd. Tianjin Tianjin 100.00% establish
industry
ment
New
35 Chengdu Offcn Education Training School Co., Service
Chengdu Chengdu 100.00% establish
Ltd. industry
ment
New
36. Shandong Zhuoda Business Management Co., Service
Rizhao Rizhao 100.00% establish
Ltd. industry
ment
37. Liaoning Zhongcheng Real Estate Shenfuxinq Real Acquisiti
Shenfuxinqu 100.00%
Development Co., Ltd. u estate on
New
Service
38. Wuhu Offcn Training School Co. Ltd. Wuhu Wuhu 100.00% establish
industry
ment
New
39. Wuhan Guoshang Human Resource Service Service
Wuhan Wuhan 100.00% establish
Co., Ltd. industry
ment
New
Service
40. Jinan Zhangqiu Offcn Training School Co. Ltd. Jinan Jinan 100.00% establish
industry
ment
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
New
Service
41. Mengzi Offcn Education Training Co. Ltd. Mengzi Mengzi 100.00% establish
industry
ment
New
42. Beijing Offcn Technology Development Co. Service
Beijing Beijing 100.00% establish
Ltd industry
ment
New
Service
43.Shanghai Offcn Education Technology Co. Ltd. Shanghai Shanghai 100.00% establish
industry
ment
New
44. Guangzhou Offcn Smart Education Technology Service
Guangzhou Guangzhou 100.00% establish
Co. Ltd. industry
ment
New
Shijiazhuan Service
45.Pingshan Offcn Education Technology Co. Ltd. Shijiazhuang 100.00% establish
g industry
ment
New
46. Shandong Offcn Education Training School Co. Service
Jinan Jinan 100.00% establish
Ltd. industry
ment
New
47. Lanzhou Offcn Education Training School Co. Service
Lanzhou Lanzhou 100.00% establish
Ltd. industry
ment
New
Service
48. Diqing Offcn Training School Co., Ltd. Diqing Diqing 100.00% establish
industry
ment
New
49. Anshan Tiedong Offcn Education Training Service
Anshan Anshan 100.00% establish
School Co.,Ltd. industry
ment
New
50.Wenling Offcn Information Consultancy Co. Service
Wenling Wenling 100.00% establish
Ltd. industry
ment
Explanation of the differences between the percentage of shares held in the subsidiary and the voting rights ratio:
None
Basis for the case of holding half or less of the voting rights but still controlling the investee, or holding more than
half of the voting rights but not controlling the investee:
None
Basis for the important structured entities included in the scope of consolidation:
None
Basis for determining whether the Company is an agent or a principal:
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
None
Other information:
None
(2) Major non-wholly owned subsidiary
Unit: RMB
Profit and loss
Dividends declared to The balance of minority
Minority Shareholding attributable to minority
Name of the subsidiary minority shareholders in shareholders’ equity at the
Ratio shareholders in the
the current period end of the period
current period
Explanation for the differences between the ratio of the minority shareholders’ shareholding and the voting rights
ratio:
None
(3) Major financial information of important non-wholly owned subsidiaries
Unit: RMB
Name of Closing balance Opening Balance
the Non-curr Total Non-curr Total
Current Non-curr Total Current Current Non-curr Total Current
subsidiar ent Liabilitie ent Liabilitie
assets ent assets assets liabilities assets ent assets assets liabilities
y liabilities s liabilities s
Unit: RMB
Amount for the current period Amount for the previous period
Cash flow Cash flow
Name of the Total Total
Operating from Operating from
subsidiary Net profit comprehensiv Net profit comprehensiv
income operating income operating
e income e income
activities activities
(4) Significant restrictions on the use of corporate group assets and the settlement of corporate group debts
None
(5) Financial support or other support provided to structured entities included in the scope of consolidated financial
statements
None
2. Changes in the ownership share of the subsidiary and still controlling the subsidiary’s transactions
(1) Explanation of changes in the ownership share of subsidiaries
None
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
(2) Impact of the transaction on the equity of minority shareholders and the equity attributable to the parent
company
Unit: RMB
3. Interests in joint arrangements or joint ventures
(1) Significant joint ventures and associates
Shareholding ratio Accounting
Name of joint treatment of
The principal The place of
ventures and Business nature investment in
place of business registration Direct Indirect
associates joint ventures or
associates
Explanation of the differences between the shareholding ratio in a joint venture or an associate and that of the
voting rights ratio:
Basis for the case of holding less than 20% of the voting rights but having significant influence, or holding 20% or
more of the voting rights but not having significant influence:
(2) Main financial information of important joint ventures
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the previous
period period
(3) Main financial information of important associates
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the previous
period period
(4) Summary financial information of unimportant joint ventures and associates
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the previous
period period
Joint ventures: -- --
Total of the following items calculated by
-- --
shareholding ratio
Associates: -- --
Total of the following items calculated by -- --
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
shareholding ratio
Other information:
(5) Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the
Company
(6) Excess losses incurred by joint ventures or associates
Unit: RMB
Unrecognized loss in the current
Name of joint ventures or Unrecognized loss accumulated Accumulated unrecognized loss
period (or net profit shared in the
associates in the previous period at the end of the period
current period)
Other information:
(7) Unconfirmed commitments related to joint venture investment
(8) Contingent liabilities related to investment in joint ventures or associates
4. Important joint business
Name of joint The principal place The place of Shareholding ratio/shares
Business nature
business of business registration Direct Indirect
Explanation of the differences of the shareholding ratio or the shares enjoyed in the joint operation from that of the
voting rights:
Basis for classification as a joint operation if the joint operation is a separate entity:
Other information:
5. Equity in structured entities not included in the scope of consolidated financial statements
Explanation of structured entities not included in the scope of consolidated financial statements:
6. Others
Section X. Risks Associated with Financial Instruments
1. Classification of financial instruments
The Company’s main financial instruments include monetary funds, transactional financial assets, accounts
receivable, other receivables, debt investments, other equity investment, and other non-current financial assets, etc.
The risks associated with these financial instruments and the risk management policies adopted by the Company to
reduce these risks are described below. The Company’s management manages and monitors these risk exposures to
ensure that the risks are confined to a defined range.
Risk management objectives and policies: The Company’s risk management is to strike an appropriate balance
between risks and benefits, minimize the negative impact of risks on the Company’s business performance and
maximize the interests of shareholders and other equity investors. Based on this risk management objective, the
basic strategy of the Company’s risk management is to determine and analyze various risks faced by the Company,
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
establish an appropriate bottom line for risk tolerance, make risk management and timely and reliably supervise and
confine various risks to a defined range.
The main risks caused by the Company’s financial instruments are credit risk, liquidity risk and market risk..
1.1 Book value of various financial assets on the balance sheet date
(1) June 30, 2021
Unit: RMB
Financial assets Financial assets
measured at fair value measured at fair value
Financial assets measured
Item and with variation and with variation Total
at amortized cost
reckoned into current reckoned into other
gains/losses comprehensive income
Monetary funds 3,560,568,685.18 3,560,568,685.18
Transactional financial assets 178,565,832.93 178,565,832.93
Accounts receivable 32,423,539.80 32,423,539.80
Other receivables 382,044,846.69 382,044,846.69
Non-current assets due within 20,027,866.69 20,027,866.69
one year
Other current assets 912,743,507.12 912,743,507.12
Investment in other equity 152,800,000.00 152,800,000.00
instruments
Other non-current financial 210,299,205.48 210,299,205.48
assets
(2) January 1,2021
Unit: RMB
Financial assets Financial assets
measured at fair value measured at fair value
Financial assets measured at
Item and with variation and with variation Total
amortized cost
reckoned into current reckoned into other
gains/losses comprehensive income
Monetary funds 5,950,395,089.12 5,950,395,089.12
Transactional financial assets 983,205,858.25 983,205,858.25
Accounts receivable 21,493,637.66 21,493,637.66
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Other receivables 304,318,966.20 304,318,966.20
Non-current assets due within 1,985,873,462.75 1,985,873,462.75
one year
Other current assets 41,832,345.30 41,832,345.30
Investment in other equity 152,800,000.00 152,800,000.00
instruments
Other non-current financial 208,450,315.01 208,450,315.01
assets
1.2 Book value of various financial assets on the balance sheet date
(1) June 30, 2021
Unit: RMB
Financial liabilities measured at fair value and
Item with variation reckoned into current Other financial liabilities Total
gains/losses
Short-term borrowings 3,875,201,272.25 3,875,201,272.25
Accounts payable 149,870,791.22 149,870,791.22
Other payables 51,658,574.07 51,658,574.07
(2) January 1,2021
Unit: RMB
Financial liabilities measured at fair value and
Item with variation reckoned into current Other financial liabilities Total
gains/losses
Short-term borrowings 3,976,019,329.22 3,976,019,329.22
Accounts payable 211,824,402.86 211,824,402.86
Other payables 9,479,383.03 9,479,383.03
2. Credit risk
The financial assets of the Company include monetary funds, transactional financial assets, accounts receivable,
other receivables, etc. The credit risk of these financial assets is caused by the default of the counterparty. The
maximum risk exposure is equal to the book amount of these instruments, including:
The Company’s working capital is deposited in banks with high credit rating, so the credit risk of working capital is
low.
The biggest credit risk to the Company is the book value of accounts receivable and other receivables in the
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
consolidated balance sheet. The Company continuously monitors the balance of accounts receivable and other
receivables to ensure that the overall credit risk of the company is under control. The quantitative data of the
Company’s credit risk exposure arising from accounts receivable and other receivables can be found in Note VII (5)
“Accounts receivable “ and Note VII (8) “Other receivables”.
3. Liquidity risk
The Company adopts the revolving liquidity plan tool to manage the risk of capital shortage. The facility considers
both the maturity date of its financial instruments and the expected cash flow generated by the company’s
operations.
The goal of the Company is to maintain the balance between the sustainability and flexibility of financing through a
variety of financing instruments, including bank loans and other interest-bearing loans.
When managing liquidity risks, the Company shall maintain sufficient cash and cash equivalents as deemed by the
management and monitor them to meet the Company’s operational needs and reduce the impact of cash flow
fluctuations. The managements monitor the use of bank loans and ensure compliance with loan agreements.
Maturity analysis of financial liabilities based on undiscounted contract cash flow:
Unit: RMB
Item June 30, 2021
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 3,875,201,272.25 3,875,201,272.25
Accounts payable 149,870,791.22 149,870,791.22
Other payables 51,658,574.07 51,658,574.07
Continued table:
Unit: RMB
Item January 1,2021
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 3,976,019,329.22 3,976,019,329.22
Accounts payable 211,824,402.86 211,824,402.86
Other payables 9,479,383.03 9,479,383.03
4. Market risk
Market risk refers to the risk that the fair value of financial instruments or future cash flow fluctuates due to
changes in market prices, including interest rate risk and foreign currency risk.
4.1. Interest rate risk
None
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4.2. Exchange rate risk
None
Section XI. Fair Value Disclosure
1. The financial assets and financial liabilities measured at fair value at the end of the reporting period
Unit: RMB
Closing fair value
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value
-- -- -- --
measurement
1. Transactional financial asset 350,815,038.41 38,050,000.00 388,865,038.41
(1) Financial asset at fair value
350,815,038.41 38,050,000.00 388,865,038.41
through profit or loss
① Debt instruments 350,815,038.41 38,050,000.00 388,865,038.41
3. Other equity instruments 152,800,000.00 152,800,000.00
Total assets measured continuously
350,815,038.41 190,850,000.00 541,665,038.41
at fair value
II. Non-continuous fair value
-- -- -- --
measurement
2. The basis for determining the market price of sustainable and non-sustainable fair value measurement
items at the first level
None.
3. Information on the valuation technique and qualitative and quantitative for important parameters
adopted as for sustainable and non-sustainable second-level fair value measurement items
The Company’s sustainable second-level fair value measurement items are mainly financial products. The fair
value is determined by the discounted cash flow method and the expected rate of return.
4. Information on the valuation technique and qualitative and quantitative for important parameters
adopted as for sustainable and non-sustainable third-level fair value measurement items
The Company’s sustainable third-level fair value measurement items are mainly non-tradable equity instruments
investment and debt instruments investment. The fair value is determined by market method and liquidity discount.
5. Adjustment information between opening and closing book value and sensitivity analysis of unobservable
parameters as for third-level fair value measurement items
None.
6. Reasons for the conversion between different levels during the current period and the policy to determine
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the conversion point as for continuous fair value measurement items
None.
7. Valuation technical changes occurred during the period and the reasons for the changes
None.
8. The fair value of financial assets and financial liabilities not measured at fair value
None.
9. Others
None.
Section XII. Related Party and Related Transactions
1. Parent company of the Company
The parent Proportion of
Name of the Parent Place of company’s voting rights of the
Nature of business Registered capital
Company registration shareholding ratio parent company to
in the Company the Company
The Company is ultimately controlled by Li Yongxin and Lu Zhongfang.
Other explanation:
The Company is ultimately controlled by Li Yongxin and Lu Zhongfang. As of June 30, 2021, the combined
shareholding of Li Yongxin and Lu Zhongfang accounted for 61.01% of the Company’s share capital.
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, see Note IX (1) “Interest in subsidiaries”.
3. Joint ventures and associates of the Company
The important joint ventures or associates of the company are detailed in the notes.
The information of other joint ventures or associates that have related party transactions with the Company in the
current period or that have related party transactions with the Company in the previous period to form a balance is
as follows:
Name of joint ventures or associates Relationship with the Company
Other information:
4. Other related parties of the Company
Name of other related parties Relationship between other related parties and the Company
Li Yongxin Actual controller
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Beijing Qianqiu Intelligence Book & Media Co., Ltd. Same ultimate controller
Beijing Haidian Offcn Training School Same ultimate controller
Jinan Offcn Training School Same ultimate controller
Kunming Wuhua Offcn Training School Same ultimate controller
Baoding Lianchi Offcn Training School Same ultimate controller
Beijing Haidian Baoquan Financial Training Centre Same ultimate controller
Cangzhou Yunhe Offcn Training School Same ultimate controller
Chengdu Wuhou Offcn Training School Same ultimate controller
Cifeng Hongshan Offcn Training Centre Same ultimate controller
Dezhou Offcn Training School Same ultimate controller
Haikou Meilan Offcn Training School Same ultimate controller
Handan Congtai Offcn Training School Same ultimate controller
Hegang Offcn Training School Same ultimate controller
Heihe Aihui Offcn Training School Same ultimate controller
Kiamusze Offcn Training School Same ultimate controller
Leshan Shizhong Offcn Training School Same ultimate controller
Mudanjiang Offcn Training School Same ultimate controller
Qiqihar Tiefeng Offcn Training School Same ultimate controller
Shaoyang Shuangqing Offcn Training School Same ultimate controller
Tangshan Lunan Offcn Training School Same ultimate controller
Weifang Offcn Traiing School Same ultimate controller
Urumqi Shayibake Offcn Training School Same ultimate controller
Yiyang Heshan Offcn Training School Same ultimate controller
Shenyang Lijing Pearl Hotel Management Co., Ltd. A company controlled by our executives and core employees
Beijing Taifu Hotel Management Co., Ltd. A company controlled by our executives and core employees
A company controlled by Xu Hua, spouse of Li Yongxin, the controlling
Beijing Xingshou Fuyuan Plantation
shareholder and actual controller of the Company
The Company’s director/ senior manager/ shareholder who directly hold
Wang Zhendong
more than 5% (including 5%) of the Company’s shares
Shi Lei Director of the Company
Yi Ziting Director of the Company
Wang Qiang Independent director of the Company
Tong Yan Independent director of the Company
Zhang Xuanming Independent director of the Company
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Yu Hongwei Supervisor of the Company
Li Wen Supervisor of the Company
He Di Supervisor of the Company
Wang Xuejun Senior management of the Company
He Youli Senior management of the Company
Gui Hongzhi Senior management of the Company
Luo Xue Senior management of the Company
Li Lin Core technique staff of the Company
Liu Yan Core technique staff of the Company
Zhang Hongjun Core technique staff of the Company
Other information:
5. Related-party transactions
(1) Related transactions in the purchase and sale of goods, provision and receipt of labor services
Table of the procurement of goods/ acceptance of labor services
Unit: RMB
Amount for Transaction Whether it exceeds Amount for
Content of related
Related parties the current amount the transaction the previous
party transaction
period granted limit (Y/N) period
Accommodation
Beijing Taifu Hotel Management Co., 40,000,000.0
and catering 11,802,340.00 N 8,245,500.00
Ltd. 0
services
Joint school
Baoding Lianchi Offcn Training School 50,000.00 N 30,000.00
running
Cangzhou Yunhe Offcn Training Joint school
50,000.00 N 30,000.00
School running
Joint school
Chengdu Wuhou Offcn Training School 50,000.00 N 40,000.00
running
Joint school
Handan Congtai Offcn Training School 50,000.00 N 30,000.00
running
Joint school
Heihe Aihui Offcn Training Center 31,500.00 N 36,998.00
running
Joint school
Kiamusze Offcn Training School 30,000.00 N 24,000.00
running
Leshan Shizhong Offcn Training Joint school
40,000.00 N 35,000.00
School running
Mudanjiang Offcn Training School Joint school 27,500.00 N 22,800.00
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
running
Joint school
Qiqihar Tiefeng Offcn Training School 0.00 N 47,800.00
running
Joint school
Tangshan Lunan Offcn Training School 50,000.00 N 30,000.00
running
Joint school
Weifang Offcn Training School 0.00 N 71,100.00
running
Joint school
Yiyang Heshan Offcn Training School 0.00 N 50,000.00
running
Joint school
Haikou Meilan Offcn Training School 0.00 N 20,000.00
running
Zhanjiang Xiashan Offcn Training Joint school
140,000.00 N 0.00
Center running
Shaoyang Shuangqing Offcn Training Joint school
60,000.00 N 0.00
School running
Urumqi Shayibake Offcn Training Joint school
143,500.00 N 0.00
Center running
Sales of goods/ Table of provision of services
Unit: RMB
Content of related party Amount for the Amount for the previous
Related parties
transaction current period period
Beijing Qianqiu Intelligence Book & Media Co., Ltd. Exhibition services 1,435,849.06 1,179,245.28
Explanations for the procurement and sales of goods and rendering and receiving service:
None
(2) Related fiduciary management / contracting and entrusted management / outsourcing
The table of the Company’s fiduciary management / contracting:
Unit: RMB
The pricing Recognized
Name of basis of custody custody income
Name of trustee Termination
entruster Type Start date income / / contracting
/ contractor Date
/outsourcer contracting income for the
income current period
All reasonable
33 private October 19,
Li Yongxin Offcn Ltd. returns on the
schools 2018
entrusted assets
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Explanations for related entrustment and contracting:
None
The table of the Company’s entrusted management and outsourcing
Unit: RMB
Pricing basis for Custody/outsourci
Name of entruster Name of trustee /
Type Start date Termination Date custody/outsourci ng fee confirmed
/outsourcer contractor
ng fee in this period
Explanations for related management and outsourcing
None.
(3) Related lease
The Company as the lessor:
Unit: RMB
Rental income recognized for Rental income recognized for
Name of lessee Category
the current period the previous period
The Company as the lessee:
Unit: RMB
Rental fee recognized for the Rental fee recognized for the
Name of lessor Category
current period previous period
Shenyang Lijing Pearl Hotel
Operating lease 25,030,700.00 25,030,700.00
Management Co., Ltd.
Explanations of related lease
None
(4) Related guarantees
The Company as the guarantor
Unit: RMB
Whether the guarantee
Guaranteed party Guarantee amount Guarantee start date Guarantee expiration date
has been fulfilled
The Company as the guaranteed party
Unit: RMB
Guarantor Guarantee amount Guarantee start date Guarantee expiration Whether the guarantee
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
date has been fulfilled
Explanations of related guarantees
(5) Borrowing from related parties
Unit: RMB
Related party Amount Start date Expiration date Description
Borrowed:
Lent:
(6) Related parties of assets transfer and debt restructuring
Unit: RMB
Related party related-party transactioncontent Amount for the current period Amount for the previous period
(7) Remuneration for key management personnel
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
3,190,424.12 3,189,135.48
personnel
(8) Other related transactions
None
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Related party Bad debt Bad debt
Book balance Book balance
provision provision
Beijing Qianqiu
Accounts
Intelligence Book 1,522,000.00 76,100.00
receivables
& Media Co., Ltd.
Shenyang Lijing
Mingzhu Hotel
Other receivables 5,675,200.00 5,675,200.00
Management Co.,
Ltd.
Total 7,197,200.00 76,100.00 5,675,200.00
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(2) Payables
Unit: RMB
Item Related party Closing book balance Opening book balance
7. Commitments of related parties
For details of the commitments of related parties, please refer to Note XIV (1) “Important commitments”.
8. Others
None
Section XIII. Share-based payment
1. Overview of share-based payment
□ Applicable √ Not applicable
2. Equity-settled share payments
□ Applicable √ Not applicable
3. Share-based payment through cash settlements
□ Applicable √ Not applicable
4. Modification and termination of share-based payment
None
5. Others
None
Section XIV. Commitments and contingencies
1. Important commitments
Important commitments on balance sheet date
2. Contingencies
(1) Important contingencies on balance sheet date
(2) Whether the Company has important contingencies that need to be disclosed and the explanations:
The Company has no important contingencies that need to be disclosed.
3. Others
None.
Section XV. Matters subsequent to the balance sheet date
1.Significant unadjusted matters
Unit: RMB
Cumulative impacts
Cause of failure in measuring
Item Content on the financial
cumulative impacts
status and operating results
2.Profit distribution
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Profits or dividends to be distributed
Profits or dividends distributed after approval
3.Sales return
4.Other matters subsequent to the balance sheet date
Section XVI. Other important matters
1. Corrections of accounting errors of previous period
(1) Retrospective restatement
Unit: RMB
statements item of the affected
Corrections of accounting errors Processing procedures Cumulative impact
comparison period
(2) Prospective application
Corrections of accounting errors Approval procedure Reasons for adopting prospective
application
2. Debt restructuring
3. Assets exchange
(1) Non-monetary asset exchange
(2) Other assets exchange
4. Pension plan
5. Discontinued operations
Unit: RMB
Profit of discontinued
Item Revenue Expense Total profit Income tax expenses Net profit operations attributable to the
owner of the parent company
Other information:
6. Information of segments
(1) Basis for determination of report segment and accounting policy
The Company’s main production and operation activities are decided by the Company, which is mainly engaged in
education and training business. Therefore, the Company is managed as an operating segment. For accounting
policies, please refer to Note V of this report — The Company’s Significant Accounting Policies and Accounting
Estimates.
(2) Financial information of the reporting segment
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Item Inter-segment offset Total
(3) If the Company has no reporting segment, or cannot disclose the total assets and liabilities of each
segment, the reasons shall be clarified.
(4) Other statements
① Revenue from external transactions for each product and service or each similar product and service.
Unit: RMB
Item Amount for the current period Amount for the previous period
Main business 4,828,531,538.19 2,788,186,999.66
Including: Education and training 4,828,531,538.19 2,788,186,999.66
Other businesses 27,466,725.31 19,793,480.94
Total 4,855,998,263.50 2,807,980,480.60
② Total foreign transaction income obtained by the Company from its own country and from other countries or
regions.
Unit: RMB
Area Amount for the current period Amount for the
previous period
Domestic area 4,855,998,263.50 2,807,980,480.60
Total 4,855,998,263.50 2,807,980,480.60
7. Other important transactions and events having impacts on decisions of investors
8. Others
None
Section XVII. Notes to the parent company’s financial statements
1. Receivables
1.1 Classified disclosure of receivables
Unit: RMB
Closing balance Opening balance
Bad debt
Book balance Book balance Bad debt provision
provision
Item Book Book
Amou value
Proporti Propor Proporti Proport value
Amount nt Amount Amount
on tion on ion
Including:
Accounts receivable 23,211,26 100.00 1,542, 5.00% 21,668, 15,570, 100.00 778,543 5.00% 14,792,32
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
for which bad 3.03 % 583.1 679.91 863.56 % .18 0.38
debt provision has 2
been assessed by
credit risk portfolios
Including:
1,542,
23,211,26 100.00 21,668, 15,570, 100.00 778,543 14,792,32
Combination 3 583.1 5.00% 5.00%
3.03 % 679.91 863.56 % .18 0.38
2
1,542,
23,211,26 100.00 21,668, 15,570, 100.00 778,543 14,792,32
Total 583.1
3.03 % 679.91 863.56 % .18 0.38
2
Bad debts provision on a single item basis:
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion Reasons
Bad debt provision assessed by credit risk portfolios: 1,542,583.12
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Combination 3 23,211,263.03 1,542,583.12 5.00%
Total 23,211,263.03 1,542,583.12 --
Explanations for the determining basis of the portfolios:
None
Bad debt provision assessed by credit risk portfolios:
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Explanations of the basis for determining the portfolios
None
Bad debt provision assessed by credit risk portfolios:
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Explanations of the basis for determining the portfolios
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
If the bad debt provision of accounts receivable is based on the general model of expected credit loss, please refer
to the disclosure methods of other receivables to disclose the relevant information of bad debt provision:
□ Applicable √ Not applicable
Disclosure by account age
Unit: RMB
Account age Closing balance
Within 1 year (included) 15,570,863.62
1-2 years 7,640,399.41
Total 23,211,263.03
1.2 Provision, recovery or reversal of bad debts in current period
Provision of bad debts in current period:
Unit: RMB
Changes in the current period
Opening Closing
balance Recovery or
Category Provision Written-off Others balance
reversal
Bad debts of accounts
778,543.18 764,039.94 1,542,583.12
receivable
Total 778,543.18 764,039.94 1,542,583.12
Significant amount of recovery or reversal of bad debts in current period:
Unit: RMB
Amount of recovery or
Name of institutions Recovery method
reversal
None
1.3 Receivables written-off in current period
Unit: RMB
Item Written-off amount
Important receivables written-off:
Unit: RMB
Whether generated
Nature of Reasons for Implemented
Creditor Written-off amount from related
receivables written-off written-off procedure
transactions
Statement of receivables written-off:
None
1.4 Accounts receivables of the top five debtors based on the ending balance
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Unit: RMB
Proportion in total closing Closing balance of bad debt
Creditor Closing balance receivables
balance receivables provision
Yaxia Industrial 23,211,263.03 100.00% 1,542,583.12
Total 23,211,263.03 100.00%
1.5 Receivables derecognized due to the transfer of financial assets
None
1.6 Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
None
Other information:
None
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 528,158,760.42 621,900,443.29
Total 528,158,760.42 621,900,443.29
2.1 Interest receivables
(1) Classification of interest receivables
Unit: RMB
Item Closing balance Opening balance
(2) Important overdue interest
Whether impairment
Borrower Closing balance Time Reason occurs and the judgment
basis
Other information:
None
(3) Bad debt provision
□Applicable √ Not applicable
2.2 Dividends receivables
(1) Classification of dividends receivables
Unit: RMB
Project (or investee) Closing balance Opening balance
(2) Important dividend receivables with account age over 1 year
Unit: RMB
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Whether impairment
Cause of recovery
Project (or investee) Closing balance Aging occurs and the judgment
failure
basis
(3) Bad debt provision
□Applicable √ Not applicable
Other information:
2.3 Other receivables
(1) Classification of other receivables by nature
Unit: RMB
Item Closing balance Opening balance
Current payment 528,153,160.42 621,894,843.29
Deposits and guarantees 5,600.00 5,600.00
Total 528,158,760.42 621,900,443.29
(2) Bad debt provision
Unit: RMB
First stage Second stage Third stage
Expected credit loss in the
Bad debt provision Expected credit loss Expected credit loss in the whole duration Total
in the next 12 months whole duration (credit impairment has
(no credit impairment ). occurred)
Changes in the book balance with significant changes in the loss provision for the current period
□Applicable √ Not applicable
Disclosure by account age
Unit: RMB
Account age Closing balance
Within 1 year (included) 509,697,034.59
1 to 2 years 10,074,543.47
2 to 3 years 8,387,182.36
Total 528,158,760.42
(3) Provision, recovery or reversal of bad debt in current period
Bad debt provision in current period
Unit: RMB
Changes in the current period
Item Opening balance Closing balance
Provision Recovery or Written-off Others
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
reversal
Important recovery or reversal of bad debt in current period:
Unit: RMB
Amount of recovery or
Creditor Recovery method
reversal
None
(4) Other receivables written off in current period
Unit: RMB
Item Written-off amount
Important other receivables written-off:
Unit: RMB
Whether generated
Nature of other Reason for Implemented
Creditor Written-off amount from related
receivables Written-off written-off procedure
transactions
Explanation of other receivables written-off:
None
(5) Other receivables of the top five debtors based on the ending balance
Unit: RMB
Proportion in total Closing
Nature of
Creditor Closing balance Account age closing balance of balance of bad
receivable
other receivables debt provision
Current
Offcn Ltd. 508,588,562.61 Within 1 year 96.29%
payment
Bozhou Yaxia Automobile Driver Current Within 2 years
10,263,170.68 1.94%
Training School Co., Ltd. payment (including 2 years)
Wuhu Yawei Automobile Sales Current Within 2 years
3,619,677.02 0.69%
Service Co., Ltd payment (including 2 years)
Suzhou Bokai Automobile Sales Current Within 2 years
3,223,466.22 0.61%
Services Co., Ltd. payment (including 2 years)
Huangshan Yaxia Fudi Automobile Current Within 2 years
1,989,506.93 0.38%
Sales Services Co., Ltd. payment (including 2 years)
Total -- 527,684,383.46 -- 99.91%
(6) Receivables related to government subsidies
Unit: RMB
Time, amount and basis of
Name of institutions Government subsidies Closing balance Closing aging
expected collection
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
None
(7) Other receivables derecognized due to the transfer of financial assets
None
(8) Assets and liabilities arising from transferring other receivables and continuing to be involved
None
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Provision Provision
for for
Item
Book balance impairme Book value Book balance impairme Book value
nt nt
Investment in 18,582,307,907.
18,582,307,907.14 18,582,307,907.14 18,582,307,907.14
subsidiaries 14
18,582,307,907.
Total 18,582,307,907.14 18,582,307,907.14 18,582,307,907.14
14
3.1 Investment in subsidiaries
Unit: RMB
Increase and decrease in current
period Closing
Provision balance of
Opening balance Additi Invest Closing balance provision for
Investee for
(Book value) onal ment Oth (Book value)
impairme impairment
invest reducti ers
nt
ment on
Offcn Ltd. 18,500,000,000.00 18,500,000,000.00
Wuhu Yawei Automobile
23,000,000.00 23,000,000.00
Sales Service Co., Ltd
Ningguo Yaxia Motor
Vehicle Driver Training 17,474,782.14 17,474,782.14
School (Co., Ltd.)
Huangshan Yaxia Fudi
Automobile Sales Services 5,000,000.00 5,000,000.00
Co., Ltd.
Chaohu Yaxia Kaixuan
Automobile Sales Service 5,000,000.00 5,000,000.00
Co., Ltd.
Bozhou Yaxia Motor Vehicle
20,000,000.00 20,000,000.00
Driver Training School Co.,
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Ltd.
Suzhou Bokai Automobile
11,833,125.00 11,833,125.00
Sales Service Co., Ltd.
Total 18,582,307,907.14 18,582,307,907.14
3.2 Investment in associated enterprises and joint ventures
Unit: RMB
Increase and decrease in current period
Investm
ent
Closing
gains balance
and Declared of
Opening Other Provision Closing
losses cash provisi
balance Comprehe Other for balance
Investor Additional Investment recogni dividends on for
(Book nsive Equity impairme Others (Book
value) investment reduction zed or
value) impairme
income changes nt
under profits nt
the adjustment
equity
method
3.3 Other statements
None
4. Revenue and operating cost
Unit: RMB
Amount for the current period Amount for the previous period
Item
Revenue Operating cost Revenue Operating cost
Other business 7,278,174.71 5,632,943.03 7,276,570.86 5,667,932.11
Total 7,278,174.71 5,632,943.03 7,276,570.86 5,667,932.11
Income related information:
Unit: RMB
Contract
Segment 1 Segment 2 Total
Classification
Inc:
Inc:
Inc:
Inc:
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Offcn Education Technology Co., Ltd. 2021 Semi-Annual Report
Inc:
Inc:
Inc:
Obligation performance related information:
None
Information related to the transaction price allocated to the remaining performance obligations:
The income from the unfulfilled or uncompleted obligation with signed contracts at the end of the reporting period:
RMB0.00 .
Other information:
None
5. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Dividend income from holding other equity
1,327,872.00
instrument investments
Financing income 2,630.21
Total 1,330,502.21
6. Others
None
Section XVIII. Supplementary information
1. Details of current non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Profits or losses from the disposal of non-current assets -168,828.03
Government subsidies included in the current profit and loss (
except the government subsidies closely related to the business of the enterprise, and 1,430,028.70
fixed or quantified in accordance with national unified
Profit or loss from entrusting others to invest or manage assets 28,910,968.77
In addition to the effective hedging business related to the Company’s normal business
operations, gains and losses from the changes in the fair value of the holding of
financial assets held for trading, derivative financial assets, financial liabilities held for
9,068,865.15
trading, and derivative financial liabilities, and the investment income from the
disposal of financial assets held for trading, derivative financial assets, financial
liabilities held for trading, derivative financial liabilities and other debt investments
Non-operating income and expenses other than the above -311,355.41
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Other profit and loss items in line with the definition of non-recurring profit and loss 45,101,048.40
Less：Amount impacted by income tax 11,288,212.83
Total 72,742,514.75 --
Provide statements for classifying non-recurring profit and loss items defined or listed in the Explanatory
Announcement No. 1 for Information Disclosures of the Company Issuing Securities Publicly — Non-recurring
Profits and Losses, and for classifying non-recurring profit and loss items listed in the Explanatory Announcement
No. 1 for Information Disclosures of the Company Issuing Securities Publicly — Non-recurring Profits and Losses
as recurring profit and loss items.
□ Applicable √ Not applicable
2. Return on equity and earnings per share
Weighted Earnings per share
Profit in the reporting period average return on
Basic earnings per Diluted earnings
net assets (%) share per share
(RMB/share) (RMB/share)
Net profit attributable to common shareholders
-2.30% -0.02 -0.02
of the Company
Net profit attributable to common shareholders of the Company
-4.02% -0.03 -0.03
after deducting non-recurring gains and losses
3. Differences in accounting data under domestic and overseas accounting standards
(1) Differences in net profit and net assets in financial reports disclosed in accordance with both
international accounting standards and Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences in the financial report of net profits and net assets disclosed by Overseas Accounting
Standards and China Accounting Standards
□ Applicable √ Not applicable
(3) Explanation of the differences in accounting data under domestic and overseas accounting standards.
Names of overseas institutions shall be indicated if difference adjustments of data from overseas audit
institutions are conducted
None
4. Others
None
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