Stock Code: 002607 Stock Abbr.: OFFCN EDU Announcement No.: 2021-065
OFFCN EDUCATION TECHNOLOGY CO., LTD.
Third Quarter 2021 Report
The Company and all the members of its Board of Directors hereby guarantee that the contents disclosed are
true, accurate, and complete, and that there are no misrepresentations, misleading statements, or material
omissions.The Company’s Third Quarter 2021 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.
Important notes:
1.The Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior management
hereby guarantee that the contents of the quarterly 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.
2.The Company’s legal representative, the head in charge of accounting and the head of the accounting
department (Accounting supervisor), declare that they warrant the truthfulness, accuracy and completeness of the
financial report in the quarterly report.
3. Whether audit has been performed on this Third Quarter Report.
□ Yes √ No
Section I. Key financial data
1. 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 from
Increase/decrease in From beginning beginning of the year
current reporting period of the year to the to the end of this
Current reporting period
over same period of the end of this reporting period over
previous year reporting period same period of the
previous year
6,301,194,119.4
Operating income (RMB) 1,445,195,855.92 -68.79% -15.29%
2
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Net profit attributable to
shareholders of the listed -793,735,635.02 -151.08% -890,898,144.05 -167.45%
Company (RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -798,108,362.10 -155.20% -968,013,385.87 -189.77%
non-recurring gains or
losses (RMB)
Net cash flow from -3,645,820,183.7
—— —— -154.27%
operating activities (RMB) 2
Basic earnings per share
-0.12 -148.00% -0.14 -166.67%
(RMB/share)
Diluted earnings per share
-0.12 -148.00% -0.14 -166.67%
(RMB/share)
Weighted average return on
-20.96% -72.31% -23.26% -65.61%
assets
Increase/decrease at the end of current
End of current reporting End of the previous
reporting period over end of the previous
period year
year
Total assets (RMB) 12,213,130,982.14 14,418,850,027.27 -15.30%
Owner's equity attributable
to shareholders of the listed 3,384,229,649.15 4,275,127,793.20 -20.84%
Company (RMB)
2. Items and amount of non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
Amount from
Amount of current beginning of the year
Items Note
reporting period to end of the
reporting period
Disposal gains or losses of non-current assets
(including the offset part of the provision for asset -168,828.03
impairment)
Government subsidies included in the current gains
and losses (closely related to the normal business
of the enterprise, except for government subsidies
1,985,280.70 3,415,309.40
enjoyed fixedly, quantitatively and continuously in
accordance with national policies and certain
standards)
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Gains or losses from entrusting others to invest or
1,463,134.23 30,374,103.00
manage assets
Gains or losses on changes in fair value arising
from the possession of transactional financial
assets and transactional financial liabilities; and the
investment income from the disposal of
transactional financial assets, transactional 1,973,101.86 11,041,967.01
financial liabilities, and available-for-sale financial
assets, except the effective hedging business
related to the Company’s normal business
operations
Other non-operating income and expenses except
-533,554.43 -844,909.84
for the items above
Other gains or losses items that meet the definition
45,101,048.40
of non-recurring gains and losses
Less: Impact on income tax 515,235.29 11,803,448.12
Total 4,372,727.07 77,115,241.82 --
Details of other gains or losses items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company has no other gains or losses items that meet the definition of non-recurring profits and losses.
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
There is no such case where the Company classifies non-recurring gains and losses items that are listed in the
Explanatory Announcement No. 1 for Public Company Information Disclosures – Non-recurring Gains and
Losses as items of recurring gains and losses.
3. Cases and reasons for fluctuation of key accounting information and financial indicators
√ Applicable □ Not applicable
Unit: RMB
Items of balance sheet September 30, 2021 December 31, 2020 Growth Note
Main reasons:
Monetary fund 1,974,991,164.20 5,950,395,089.12 -66.81% 1) increased cost resulted from
purchasing intangible assets in the
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
reporting period;
2) the ahead-of-schedule multi-provincial
joint examination of the civil servant
recruitment shortened the peak period of
collecting training fees;
3) changes took place in recruitment
policies in the teachers and the
comprehensive sections, and the number
of trainees decreased, which resulted in
the decrease of collected training fees.
Transactional financial Mainly due to the structural adjustment of
357,426,934.35 983,205,858.25 -63.65%
assets asset allocation in the current period.
Mainly due to the increase in rent
Accounts receivable 38,087,488.62 21,493,637.66 77.20%
receivable.
Non-current assets due Mainly due to the maturity of fixed
20,027,866.70 1,985,873,462.75 -98.99%
within one year deposits purchased by the Company.
Mainly due to the increase of fixed
Other current assets 705,367,767.08 175,179,650.61 302.65% deposits due within one year purchased
by the Company.
Mainly due to the increase of right-of-use
assets under the implementation of the
Right-of-use assets 1,230,395,388.53 0.00 100.00%
new lease standards since January 1,
2021.
Mainly due to the advancement and
Construction in progress 287,707,506.80 214,248,125.04 34.29%
addition of engineering projects.
Mainly due to the purchase and
Other non-current assets 3,801,600,937.14 1,151,091,703.31 230.26% construction of fixed assets and intangible
assets.
Mainly due to the conversion of financial
Other non-current
38,050,000.00 208,450,315.01 -81.75% products due within one year into
financial assets
transactional financial assets.
Main reasons:
1) the ahead-of-schedule multi-provincial
joint examination of the civil servant
recruitment shortened the peak period of
Contract liabilities 2,312,641,632.72 4,925,428,309.33 -53.05% collecting training fees;
2) changes took place in recruitment
policies in the teachers and the
comprehensive sections, and the
examinations are delayed.
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Mainly due to the distribution of
Payroll payable 315,864,427.36 637,448,433.99 -50.45% employees’ salary and bonuses in the
previous year.
Mainly due to the Company's temporary
performance loss during the reporting
Taxes payable 22,613,212.98 131,111,770.78 -82.75%
period, and the corporate income tax of
major subsidiaries were not accrued.
Mainly due to the increase of third-party
Other payable 65,535,767.05 9,479,383.03 591.35% handling fees pending for payments
during the reporting period.
Mainly due to the increase of non-current
Non-current liabilities liabilities due within one year under the
484,524,249.51 0.00 100.00%
due within one year implementation of the new lease
standards since January 1, 2021.
Mainly due to the decrease in the amount
of contract liabilities and the
Other current liabilities 69,379,248.98 147,765,156.66 -53.05%
corresponding decrease in the output VAT
to be transferred.
Mainly due to the increase of lease
liabilities under the implementation of the
Lease liabilities 444,442,525.66 0.00 100.00%
new lease standards since January 1,
2021.
Mainly due to the Company's temporary
Undistributed profits 1,979,940,976.65 2,870,839,120.70 -31.03% performance loss during the reporting
period.
Items of income January - September January - September
Growth Note
statement 2021 2020
Mainly due to the decrease of preferential
Taxes and surcharges 23,049,626.16 9,832,926.10 134.41%
taxation enjoyed by the Company.
Mainly due to the decrease of preferential
Other income 67,843,227.07 221,416,613.84 -69.36%
taxation enjoyed by the Company.
Mainly due to the structural adjustment of
asset allocation in the current period and
Investment income 74,689,765.65 187,595,273.90 -60.19%
the decreased yield rate of financial
products.
Mainly due to the accrual of income from
Income from changes in
11,041,967.01 0.00 100.00% changes in fair value of financial products
fair value
during the reporting period.
Mainly due to the increase in the
Expected credit loss -2,013,158.79 -1,382,976.76 45.57%
provision for bad debts during the
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
reporting period.
Mainly due to the Company's temporary
performance loss during the reporting
Income tax expenses -249,727.99 261,121,317.06 -100.10%
period, and the corporate income tax of
major subsidiaries were not accrued .
Items of cash flow January - September January - September
Growth Note
statement 2021 2020
Main reasons:
1) the ahead-of-schedule multi-provincial
joint examination of the civil servant
recruitment shortened the peak period of
Cash received from the
collecting training fees;
sale of goods and the 3,764,009,075.38 12,630,977,793.14 -70.20%
2) changes took place in recruitment
rendering of services
policies in the teachers, public institutions
and the comprehensive sections, and the
examinations are delayed. Number of
trainees decreased.
Other cash receipts Mainly due to the resumption of land
related to operating 82,925,359.00 246,310,360.72 -66.33% auction deposits in the same period of last
activities year.
Cash paid to and for Mainly due to the increase of employee
4,999,319,418.01 3,833,750,101.55 30.40%
employees compensation paid in the current period.
Cash received from Mainly due to the structural adjustment of
9,118,641,205.92 25,895,487,090.00 -64.79%
recovery of investments asset allocation in the current period.
Cash received from Mainly due to the maturity of fixed
234,974,156.04 132,306,688.95 77.60%
investment income deposits purchased by the Company.
Cash paid for the
purchase and
Mainly due to the purchase and
construction of fixed
2,826,593,982.87 897,559,659.37 214.92% construction of fixed assets and intangible
assets, intangible assets
assets.
and other long-term
assets
Cash paid for Mainly due to the structural adjustment of
7,014,720,000.00 28,265,198,090.00 -75.18%
investments asset allocation in the current period.
Cash received from the Mainly due to the increased borrowings
4,369,000,000.00 3,002,000,000.00 45.54%
loan from the bank in the current period.
Cash paid for debt Mainly due to the repayment for
3,499,000,000.00 2,641,000,000.00 32.49%
repayment short-term loans due in the current period.
Cash paid for dividends,
152,324,944.37 1,598,605,965.46 -90.47% Mainly due to the payment of cash
profits or interest
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
payments dividends in 2020.
Mainly due to the implementation of the
new lease standards since January 1,
2021, the rent paid during the reporting
Other cash paid related
559,203,347.89 333,478.85 167587.80% period is adjusted from listing under the
to financing activities
item of other cash paid for business
activities to under the item of other cash
paid related to financing activities.
Section II. Shareholders
1. Table on the total number of common shareholders and preferred shareholders with restored voting rights and
shares held by the top 10 shareholders
Unit: share(s)
Total number of preferred
Total number of common shareholders at shareholders with restored
132,029 0
the end of reporting period voting rights at end of the
reporting period (if any)
Particulars about shares held by the top 10 shareholders
Sharehol Number of Pledged, marked or frozen
Nature of ding Number of shares held
Name of shareholder Number of
shareholder percenta shares with sales Status of shares
shares
ge (%) restrictions
Domestic natural
Lu Zhongfang 41.36% 2,550,549,260 2,550,549,260 Pledged 620,000,000
person
Domestic natural
Li Yongxin 18.35% 1,131,415,121 1,105,070,121 Pledged 387,150,000
person
Domestic natural
Wang Zhendong 15.03% 927,229,418 721,853,563 Pledged 393,239,966
person
Beijing Aerospace
Domestic
Industry Investment
non-state-owned 4.24% 261,280,477 0
Fund (Limited
legal person
Partnership)
Beijing Kerui
Technology
Domestic
Innovation
non-state-owned 1.44% 89,117,723 89,117,723
Investment Center
legal person
(Limited
Partnership)
Beijing Offcn Future Domestic
1.30% 80,000,000 0
Information non-state-owned
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Consulting Center legal person
(Limited
Partnership)
Domestic natural
Zhou Xiayun 1.28% 78,848,640 0 Pledged 58,000,000
person
Domestic natural
Zhou Hui 1.17% 72,277,920 0 Pledged 16,650,000
person
Beijing Guangyin
Domestic
Venture Capital
non-state-owned 1.04% 64,355,896 0
Center (Limited
legal person
Partnership)
Hong Kong
Overseas legal
Securities Clearing 0.86% 53,084,181 0
person
Co.,Ltd.
Particulars about shares held by the top 10 shareholders without sales restrictions
Type of shares
Number of shares held without sales
Name of shareholder Number of
restrictions Type of shares
shares
Beijing Aerospace Industry Investment RMB common
261,280,477 261,280,477
Fund (Limited Partnership) shares
RMB common
Wang Zhendong 205,375,855 205,375,855
shares
Beijing Offcn Future Information RMB common
80,000,000 80,000,000
Consulting Center (Limited Partnership) shares
RMB common
Zhou Xiayun 78,848,640 78,848,640
shares
RMB common
Zhou Hui 72,277,920 72,277,920
shares
Beijing Guangyin Venture Capital Center RMB common
64,355,896 64,355,896
(Limited Partnership) shares
RMB common
Hong Kong Securities Clearing Co.,Ltd. 53,084,181 53,084,181
shares
RMB common
Zhou Li 48,185,280 48,185,280
shares
RMB common
Li Yongxin 26,345,000 26,345,000
shares
RMB common
Yang Shaofeng 24,062,680 24,062,680
shares
Description of the relationship or concerted The Company's controlling shareholder and actual controller Lu Zhongfang and
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
action among the above mentioned Li Yongxin are in a parent-child relationship. Lu Zhongfang, Li Yongxin, and
shareholders Beijing Offcn Future Information Consulting Center (Limited Partnership)
constitute persons acting in concert. Zhou Xiayun and Zhou Hui have a father-son
relationship. Zhou Xiayun and Zhou Li have a father-daughter relationship. It is
unknown whether there is an associated relationship among the above-mentioned
other shareholders, nor whether the above-mentioned shareholders belong to the
parties acting in concert as stipulated in the Administrative Measures on
Information Disclosure of Shareholding Changes in Listed Companies.
Description of the top 10 shareholders
None
participating in the margin trading (if any)
2. Table on the total number of preferred shareholders and shares held by the top 10 preferred shareholders
□ Applicable √ Not Applicable
Section III. Other significant events
√Applicable □Not applicable
1. The progress of the Company’s non-public issuance:
The Company held the meetings of board of directors and board of supervisors on November 23 and the third
extraordinary general meeting of shareholders on December 9 in the year of 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 issued the Announcement on the Revised Reply to the First Feedback Notice
from the China Securities Regulatory Commission Administrative Licensing Project Review and the
Announcement on Receiving the Second Feedback from the China Securities Regulatory Commission's
Administrative Licensing Project Review.
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
9
Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
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.
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.
On August 24, 2021, the Company issued the Announcement on Notice of the Suspension of the China Securities
Regulatory Commission Administrative Licensing Application Review. Because the law firm hired for this
issuance was filed and put under investigation by the China Securities Regulatory Commission for its services for
other companies, the China Securities Regulatory Commission suspended the review of the Company's
application for administrative license for this non-public issuance of shares.
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.
2. The case of the transfer of part of the wholly-owned subsidiary’s equity and cooperative development
On December 2, 2020, the wholly-owned subsidiary of the Company, Beijing Offcn Future Education Technology
Co., Ltd.(hereinafter referred to as the target company), won the bid for the first-level development project —
CP00-1804-0002 residential land and CP00-1804-0012 public construction land in Qiliqu Nanbei Village, Shahe
Town, Changping District, Beijing, and the Company provided a loan of RMB 3.098 billion yuan to the target
company to pay for the above land price, deed tax and other expenses.
On September 26, 2021, the Company held the 22nd Meeting of the Fifth Board of Directors which reviewed and
approved the Proposal on the Transfer of Part of the Wholly-owned Subsidiary’s Equity and Cooperative
Development. The Board of Directors agreed to transfer 51% equity of the Company’s wholly-owned subsidiary,
namely Beijing Offcn Future Education Technology Co., Ltd., to Beijing Shangheng Jirui Commercial Operation
and Management Co., Ltd. (hereinafter referred to as Longhu Party). After friendly negotiation between the two
parties, based on the target company’s paid-in registered capital, the Company priced the transfer of the target
company’s 51% equity at RMB 51 million yuan. At the same time, Longhu Party invested RMB1.379 billion yuan
in the target company as shareholder loans, all of which were used to repay the target company’s borrowing from
the Company. For specific information of this matter, please refer to the Company’s Announcement on the
Transfer of Part of the Wholly-owned Subsidiary’s Equity and Cooperative Development (Announcement No.:
2021-061) released on www.cninfo.com, September 27, 2021.
According to the customized development agreement and supplementary agreement signed between the target
company and the Company, the Company’s RMB1.618 billion yuan’s worth of loan to the target company has
been converted into the advance payment for the construction of CP00-1804-0012 public construction land. The
target company will construct an online technology R&D center, an Online-Merge-Offline education
demonstration center, an integrated training center for R&D and teaching personnel, a vertical integrated
fast-response command center for nationwide market, and an innovative education headquarter in accordance with
the Company’s design and planning. At present, the target company has paid off all its loans to the Company.
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Section IV. Financial statements of the first three quarters
1. Financial statements
(1) Consolidated balance sheet
Company: Offcn Education Technology Co., Ltd.
September 30, 2021
Unit: RMB
Item September 30, 2021 December 31, 2020
Current assets:
Monetary funds 1,974,991,164.20 5,950,395,089.12
Settlement reserve
Lendings
Transactional financial assets 357,426,934.35 983,205,858.25
Derivative financial assets
Notes receivable
Accounts receivable 38,087,488.62 21,493,637.66
Receivables financing
Prepayments 2,321,049.00 2,204,120.00
Premium receivable
Accounts receivable reinsurance
Reserve for reinsurance
receivable contracts
Other receivables 375,968,765.53 304,318,966.20
Including: interest receivable
Dividend receivable
Buying back the sale of financial
assets
Inventory
Contract assets
Assets held-for-sale
Non-current assets due within
20,027,866.70 1,985,873,462.75
one year
Other current assets 705,367,767.08 175,179,650.61
Total current assets 3,474,191,035.48 9,422,670,784.59
Non-current assets:
Loans and advances
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
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
38,050,000.00 208,450,315.01
assets
Investment property 653,958,125.31 668,014,515.82
Fixed assets 1,557,911,008.74 1,612,792,592.67
Construction in progress 287,707,506.80 214,248,125.04
Productive biological assets
Oil and gas assets
Right-of-use asset 1,230,395,388.53
Intangible assets 511,346,418.46 426,352,455.75
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expenses 383,323,987.14 440,955,377.93
Deferred tax assets 21,978,854.16 21,606,436.77
Other non-current assets 3,801,600,937.14 1,151,091,703.31
Total non-current assets 8,738,939,946.66 4,996,179,242.68
Total assets 12,213,130,982.14 14,418,850,027.27
Current liabilities:
Short-term loan 4,844,231,125.06 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 165,281,669.57 211,824,402.86
Deposit received
Contract liabilities 2,312,641,632.72 4,925,428,309.33
Financial assets sold for
repurchase
Absorbing deposits and
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
interbank deposits
Acting trading securities
Acting underwriting securities
Payroll payable 315,864,427.36 637,448,433.99
Taxes payable 22,613,212.98 131,111,770.78
Other payable 65,535,767.05 9,479,383.03
Including:interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held-for-sale
Non-current liabilities due
484,524,249.51
within one year
Other current liabilities 69,379,248.98 147,765,156.66
Total current liabilities 8,280,071,333.23 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 444,442,525.66
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 104,423,412.82 104,677,444.59
Other non-current liabilities
Total non-current liabilities 548,865,938.48 104,677,444.59
Total Liabilities 8,828,937,271.71 10,143,754,230.46
Owners' equity:
Share capital 103,807,623.00 103,807,623.00
Other equity instruments
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
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 1,979,940,976.65 2,870,839,120.70
Total owner's equity attributable to
3,384,229,649.15 4,275,127,793.20
the parent company
Minority shareholders' equity -35,938.72 -31,996.39
Owners' equity 3,384,193,710.43 4,275,095,796.81
Liabilities and owner's equity 12,213,130,982.14 14,418,850,027.27
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of accounting department: Luo Xue
(2) Consolidated income statement from beginning of the year to the end of the reporting period
Unit: RMB
Item Amount in the current period Amount in the prior period
Total operating income 6,301,194,119.42 7,438,969,829.81
Including:operating income 6,301,194,119.42 7,438,969,829.81
Interest income
Premium earned
Fee and commission income
Total operating costs 7,342,893,996.86 6,264,315,976.76
Including: operating cost 3,588,626,072.16 3,071,901,770.96
Interest expense
Fee and commission expenses
Surrender money
Net reimbursement expenditure
Withdrawal of net insurance liability reserves
Policyholder dividend expenses
Reinsurance expenses
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Taxes and surcharges 23,049,626.16 9,832,926.10
Sales expenses 1,475,923,658.93 1,278,110,818.48
Management expenses 1,036,022,099.40 902,149,682.94
R&D expenses 835,716,194.57 655,566,356.63
Financial expenses 383,556,345.64 346,754,421.65
Including: interest expenses 176,536,740.21 128,133,368.78
Interest income 35,487,207.53 11,898,982.50
Add: other income 67,843,227.07 221,416,613.84
Investment income (Loss is listed with “-”) 74,689,765.65 187,595,273.90
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
“-”)
Income from changes in fair value (Loss is listed
11,041,967.01
with “-”)
Expected credit loss (Loss is listed with “-”) -2,013,158.79 -1,382,976.76
Asset impairment loss (Loss is listed with “-”)
Asset disposal income (Loss is listed with “-”) -168,828.03 162,043.59
III. Operating profit (Loss is listed with “-”) -890,306,904.53 1,582,444,807.62
Add: non-operating income 41,198.84 20,148.00
Less: non-operating expenses 886,108.68 457,348.58
IV. Total profit (The total loss is listed with “-”) -891,151,814.37 1,582,007,607.04
Less: income tax expenses -249,727.99 261,121,317.06
V. Net profit (Net loss is listed with “-”) -890,902,086.38 1,320,886,289.98
i. Classified by business continuity
1.Net profit from continuing operations (Net loss
-890,902,086.38 1,320,886,289.98
is listed with “-”)
2.Net profit from discontinued operations (Net
loss is listed with “-”)
ii. Classification by ownership
1. Net profit attributable to the owner of the
-890,898,144.05 1,320,893,510.33
parent company
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
2. Minority shareholders' gains and losses -3,942.33 -7,220.35
VI. Net other comprehensive income
Net other comprehensive income attributable to the parent
company owner
Other comprehensive income that cannot be reclassified
into profit or loss
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 -890,902,086.38 1,320,886,289.98
Total comprehensive income attributable to owners of
-890,898,144.05 1,320,893,510.33
the parent company
Total comprehensive income attributable to minority
-3,942.33 -7,220.35
shareholders
VIII. Earnings per share:
i. Basic earnings per share -0.14 0.21
ii.Diluted earnings per share -0.14 0.21
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.
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of accounting department: Luo Xue
(3) Consolidated cash flow statement from beginning of the year to the end of the reporting period
Unit: RMB
Item Amount in the current period Amount in the prior period
I. Cash flow from operating activities:
Cash received from the sale of goods and services 3,764,009,075.38 12,630,977,793.14
Net increase in customer deposits and interbank deposits
Net increase in borrowing from central bank
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 82,925,359.00 246,310,360.72
Subtotal of cash inflow from operating activities 3,846,934,434.38 12,877,288,153.86
Cash paid for the purchase of goods and services 1,272,319,232.44 1,241,258,102.15
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 4,999,319,418.01 3,833,750,101.55
Various taxes paid 257,440,759.41 200,151,843.84
Other cash paid for business activities 963,675,208.24 884,298,006.27
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Subtotal of cash outflows from business activities 7,492,754,618.10 6,159,458,053.81
Net cash flow from operating activities -3,645,820,183.72 6,717,830,100.05
II. Cash flows from investing activities:
Cash received from investment recovery 9,118,641,205.92 25,895,487,090.00
Cash received from investment income 234,974,156.04 132,306,688.95
Net cash received from disposal of fixed assets,
162,043.59
intangible assets and 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 9,353,615,361.96 26,027,955,822.54
Cash paid for the purchase and construction of fixed
2,826,593,982.87 897,559,659.37
assets, intangible assets and other long-term assets
Cash paid for investment 7,014,720,000.00 28,265,198,090.00
Net increase in pledge loans
Net cash paid for r acquiring subsidiaries and other
business units
Other cash paid related to investing activities 168,828.03
Subtotal of cash outflows from investment activities 9,841,482,810.90 29,162,757,749.37
Net cash flows from investing activities -487,867,448.94 -3,134,801,926.83
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 4,369,000,000.00 3,002,000,000.00
Other cash received related to fundraising activities
Subtotal of cash inflows from financing activities 4,369,000,000.00 3,002,000,000.00
Cash paid for debt repayment 3,499,000,000.00 2,641,000,000.00
Cash paid for dividends, profits or interest payments 152,324,944.37 1,598,605,965.46
Including:dividends and profits paid by subsidiaries to
minority shareholders
Other cash paid related to financing activities 559,203,347.89 333,478.85
Subtotal of cash outflows from financing activities 4,210,528,292.26 4,239,939,444.31
Net cash flow from financing activities 158,471,707.74 -1,237,939,444.31
IV. Effect of the changes of the exchange rate on cash and the
equivalents
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
V. Net increase in cash and cash equivalents -3,975,215,924.92 2,345,088,728.91
Add: balance of cash and cash equivalents at the
5,950,036,489.12 2,724,335,001.58
beginning of the period
VI. Balance of cash and cash equivalents at the end of the
1,974,820,564.20 5,069,423,730.49
period
2. Explanation on the adjustments to the financial statements
(1) Adjustments to the financial statements at the beginning of the first execution year of the new standards
governing lease since 2021
√ Applicable □ Not applicable
Whether items listed in the balance sheet at beginning of the year need to be adjusted
√ Yes □ No
Consolidated balance sheet
Unit: RMB
Item December 31, 2020 January 1, 2021 Adjustments
Current Assets:
Monetary funds 5,950,395,089.12 5,950,395,089.12
Settlement reserve
Lendings
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
Receivables financing
Prepayments 2,204,120.00 2,204,120.00
Premium receivables
Accounts receivable reinsurance
Reserve for reinsurance receivable
contracts
Other receivables 304,318,966.20 304,318,966.20
Inc: Interest receivables
Dividends receivables
Buying back the sale of financial
assets
Inventories
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Contract assets
Assets held for sale
Non-current assets due within one
1,985,873,462.75 1,985,873,462.75
year
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 investment 152,800,000.00 152,800,000.00
Other non-current financial assets 208,450,315.01 208,450,315.01
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
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
Notes payable
Accounts payable 211,824,402.86 211,824,402.86
Deposit received
Contract liabilities 4,925,428,309.33 4,925,428,309.33
Financial assets sold for repurchase
Absorbing deposits and interbank
deposits
Acting trading securities
Acting underwriting securities
Payroll 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
Including:interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held-for-sale
Non-current liabilities due
699,372,590.26 699,372,590.26
within one year
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:
Insurance contract reserve
Long-term loan
Bonds payable
Bonds payable_preferred
stock
Bonds payable_perpetual
bond
Lease liabilities 632,866,068.34 632,866,068.34
Long-term payables
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 104,677,444.59 104,677,444.59
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Offcn Education Technology Co., Ltd. Third Quarter 2021 Report
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 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 2,870,839,120.70 2,870,839,120.70
Total owner's equity attributable to
4,275,127,793.20 4,275,127,793.20
the parent company
Minority shareholders' equity -31,996.39 -31,996.39
Owners' equity 4,275,095,796.81 4,275,095,796.81
Liabilities and owner's equity 14,418,850,027.27 15,751,088,685.87 1,332,238,658.60
Explanation on the adjustments
(2) Description of retroactive adjustment of comparative data in the early stage by the new lease standard initially
implemented since 2021
□ Applicable √ Not applicable
3. Auditor’s report
Whether this Third Quarter 2021 Report has been audited
□ Yes √ No
The Company’s Third Quarter 2021 Report has not been audited.
Board of Directors of Offcn Education Technology Co., Ltd.
October 29, 2021
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