OFFCN EDUCATION TECHNOLOGY CO., LTD.
2022 Semi-Annual Report
Stock Code: 002607
Stock Abbr.: OFFCN EDU
August, 2022
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Offcn Education Technology Co., Ltd. 2022 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 semi-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 semi-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 and countermeasures have been detailed in
Section X Possible risks and responses of Chapter 3 Management Discussion and Analysis of this report.
Investors are advised to pay attention to the potential investment risks.
On December 25, 2021, the Company was filed and investigated by China Securities Regulatory
Commission (CSRC) on suspicion of failing to disclose related party transaction information and violating the
laws and regulations of information disclosure. On April 27, 2022, the Company and relevant parties received the
official Decision of Administrative Penalty. The Anhui Securities Regulatory Bureau of the CSRC decided to give
a warning to and impose a fine on the Company and the relevant parties, and order the Company and the relevant
parties to rectify the situation. Specific information is stated in the announcement (No. 2022-032) disclosed on
CNINFO (www.cninfo.com.cn) and other designated media.
The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by converting
capital reserve.
The Company ’s 2022 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. 2022 Semi-Annual Report
Contents
Chapter 1 Important Notes, Contents and Definitions ..............................................................................................1
Chapter 2 Corporate Profile & Key Financial Indicators ......................................................................................... 5
Chapter 3 Management Discussion and Analysis ..................................................................................................... 9
Chapter 4 Corporate Governance ............................................................................................................................27
Chapter 5 Environmental and Social Responsibilities ............................................................................................29
Chapter 6 Significant Events ...................................................................................................................................30
Chapter 7 Share Changes and Shareholders ........................................................................................................... 56
Chapter 8 Preferred Shares ......................................................................................................................................62
Chapter 9 Corporate Bonds ..................................................................................................................................... 63
Chapter 10 Financial Statements .............................................................................................................................64
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Documents Available for Reference
I. The full text of 2022 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. 2022 Semi-Annual Report
Definitions
Term(s) Definition
The listed Company, The Company,
Offcn Education Technology Co., Ltd.
Offcn Edu
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
RMB yuan, RMB 10 thousand yuan, RMB 100 million yuan
million yuan
Based 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 issuance of Yaxia Auto shares according to the
This major assets restructuring,
proportion of shareholding. At the same time, Yaxia Industrial transfers 80,000,000
This transaction,
and 72,696,561 Yaxia Auto shares to Offcn Partnership and Li Yongxin respectively.
This restructuring
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 all shareholders of Offcn Ltd. in accordance with the shareholdings
Offcn Partnership
ratio, which is used to undertake 80,000,000 shares of the listed Company
transferred by Yaxia Industrial.
Yaxia Industrial Anhui Yaxia Industrial Co., Ltd.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Chapter 2 Corporate Profile & Key Financial Indicators
Section I. Corporate profile
Stock Abbreviation OFFCN EDU Stock Code 002607
Stock Abbreviation before
N/A
change (if any)
Listed Stock Exchange Shenzhen Stock Exchange
Chinese Name of the
中公教育科技股份有限公司
Company
Chinese Name Abbreviation
中公教育
of the Company (if any)
English Name of the
Offcn Education Technology Co., Ltd.
Company (if any)
English Name Abbreviation
OFFCN EDU
of the Company (if any)
Legal Representative of the
Wang Zhendong
Company
Section II. Contact information
Board Secretary Securities Affairs Representative
Name Gui Hongzhi Gu Pan
Block B, Hanhua Century Mansion, No.23 Xueqing Block B, Hanhua Century Mansion, No.23
Address
Road, Haidian District, Beijing, China Xueqing 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 2021Annual Report.
2. Location of information disclosure and storage
Whether the 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. 2022 Semi-Annual Report
reporting period. Details can be found in 2021 Annual Report.
3. Other relevant information
Whether other relevant information changed during the reporting period
□ Applicable Not applicable
Section IV. Key accounting information and financial indicators
Does the Company need to adjust its financial data retrospectively or restate its accounting data of previous year?
□ Yes No
Increase/decrease in current
Same period of the previous
Current reporting period reporting period over same
year
period of the previous year
Revenue (RMB) 2,226,704,962.11 4,855,998,263.50 -54.15%
Net profit attributable to
shareholders of the listed -890,931,710.33 -97,162,509.03 -816.95%
Company (RMB)
Net profit attributable to
shareholders of the listed
Company after deducting -903,639,304.26 -169,905,023.78 -431.85%
non-recurring gains or losses
(RMB)
Net cash flow from operating
1,032,982,411.32 -939,091,457.95 210.00%
activities (RMB)
Basic earnings per share
-0.14 -0.02 -600.00%
(RMB/share)
Diluted earnings per share
-0.14 -0.02 -600.00%
(RMB/share)
Weighted average return on
-61.73% -2.30% -59.43%
net assets
Increase/decrease at the end of
End of current reporting
End of the previous year this reporting period over end
period
of the previous year
Total assets (RMB) 8,961,896,986.90 10,305,183,525.70 -13.04%
Total net assets attributable to
shareholders of the listed 997,887,043.87 1,888,818,754.20 -47.17%
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.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
2. Differences between net profits and net assets disclosed in the financial reports under Chinese accounting
standards and overseas 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 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
Profits or losses on disposal of
non-current assets (including offsetting
58,877.23
amount for the provision of impairment of
assets)
Government grants included in current
profit or loss (except those closely related
to the Company's normal business
operations, which are in accordance with 18,434,136.00
national policies and continuously
enjoyed in accordance with certain
standards or quotas)
Profit or loss from entrusting others to
5,611,244.87
invest or manage assets
Except the effective hedging business
related to the Company’s normal business
operations, profits or losses on changes in
fair value arising from the possession of
transactional financial assets and
-3,435,742.21
transactional financial liabilities; and the
investment income from the disposal of
transactional financial assets,
transactional financial liabilities and
financial assets available for sale
Other non-operating income and expenses
-4,372,388.19
except for the items above
Less: Impact on income tax 3,588,533.77
Total 12,707,593.93
Details of other profits or losses items that meet the definition of non-recurring profits or losses
□ Applicable Not applicable
The Company has no specific circumstances of other profits or losses items that meet the definition of
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
non-recurring profits or losses.
Explanations for classifying items of non-recurring profits or losses defined or listed in the Explanatory
Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits or Losses as items of
recurring profits or losses.
□ Applicable Not applicable
The Company does not classify any non-recurring profits or losses items that are defined or listed in the
Explanatory Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits or
Losses as items of recurring profits or losses during the reporting period.
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Offcn Education Technology Co., Ltd. 2022 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 large-scale multi-category vocational education institution. The Company bravely undertakes
the mission of the times, continues to create new markets, and serves the society with kindness and altruism.
Facing knowledge-based people, Offcn Edu’s main business spans three major sectors including training for
recruitment examinations, college and high institution enrollment exams and vocational ability enhancement, and
mainly serves knowledge-based employment population including college students, university graduates, and
various professionals, ranging from age 18 to 45.
In 2022, the Company established the Vocational Education Department, coordinating with the government,
enterprises, and universities to steadily explore talent training models in AI, digital economy, media convergence,
digital culture and creativity, intelligent manufacturing, and intelligent aviation.
Up to the end of the reporting period, with tens of thousands of staff, Offcn Edu possesses an
industry-leading full-time teaching and research team, and its direct branches scatter all over the country. Relying
on its outstanding team execution and nationwide vertical integrated fast response capability, the Company has
developed into an innovation-driven enterprise platform for vocational education.
2. Overview of the industry and business environment
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
2.1 The “14th Five-Year Plan” requires that the quality and capacity of education, medical care, elderly
people care and other services be significantly improved.
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 people
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. These investments will contribute to
the continuous growth of the recruitment sector, especially in the teacher, medical and community staff
recruitment.
2.2 Vocational skills improvement is "accelerated", and policy support is enhanced.
Since the "14th Five-Year Plan", the new economic pattern of pursuing high-quality development has put
forward higher requirements on the upgrading and adjustment of China's industrial structure. Industry boundaries
are breaking down, and knowledge and skills in different fields are increasingly overlapping each other. The
demand for comprehensive, innovative and highly skilled personnel in various enterprises continues to increase.
In terms of industry policies, in May 2019, the General Office of the State Council issued the Action Plan for
Vocational Skills Improvement (2019-2021), which clarified that vocational skills upgrading should be regarded as
an important livelihood project. Since then, relevant policies have been introduced at an intensive pace:
In March 2021, the "14th Five-Year Plan" Outline and 2035 Vision Outline issued by the Central Committee
of the CPC and the State Council proposed to improve the lifelong skills training system and continue to carry out
large-scale vocational skills training. The Outline also requires to carry out the action for vocational skills
improvement and special training plan for key groups in a deeper level, extensively carry out skills training for
employees from business of new forms and new models and improve the training quality effectively.
In October 2021, the Opinions on Promoting the High-quality Development of Modern Vocational Education
issued by the General Office of Central Committee of CPC and the General Office of State Council suggests
promoting the construction of a skill-oriented society, improving the social status of technical and skilled talents,
and enhancing the attractiveness and training quality of vocational education, and makes it clear that the
enrollment of vocational undergraduate education shouldn ’ t be less than 10% of the enrollment of higher
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
vocational education. Listed companies and leading enterprises in the industry are encouraged to take the lead in
providing vocational education, and all kinds of enterprises are encouraged to participate and play a role in
vocational education legally.
The year 2022 is a crucial year for vocational education to improve the quality and reform in the difficult
areas. At the end of last year, the Ministry of Human Resources and Social Security, the Ministry of Education,
the National Development and Reform Commission, and the Ministry of Finance jointly issued the "14th
Five-Year Plan" for Vocational Skills Training, which proposed four main goals and five key tasks for vocational
skills training, and encouraged and supported leading enterprises and social resources to participate in vocational
skills training legally, jointly make contribution to vocational education and share the benefits together. In April
2022, the Ministry of Education revised the Vocational Education Law determining the legal status of vocational
education and training, and providing a standard for the healthy development of vocational education and training.
2.3. Main industry characteristics and cyclical characteristics
The institutions of vocational education distribute vastly all over the country. Such situation lifts the
barriers to competition in this field. 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 for civil servants
also comes in large numbers from prefecture-level cities and counties. This has given rise to a large number of
local small and medium-sized training institutions, and provided large institutions with a wide space to expand
their channel networks, while making management difficulties and barriers to competition suddenly higher.
The training for civil servant recruitment tests is seasonal. For trainees, the 1-2 years before or after their
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 a few
provinces will have another joint examination to recruit civil servants in the second half year. And 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.
2.4 Trends of the industry’s future development
1) The status of vocational education in education system is enhancing.
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Offcn Education Technology Co., Ltd. 2022 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 "14th Five-Year Plan" for Vocational Skills Training, the first
national five-year special plan for vocational skills training and the newly revised Vocational Education Law were
released in 2022, confirming the social and legal status that vocational education should have.
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 has reached10.76
million in 2022, 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 inflection 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.
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. In the future, with the improvement of industry
concentration and the continuous development of leading vocational education enterprises, core business elements
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
such as R&D, management and marketing of vocational education will gradually break through the original
boundaries of the industry, which will 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 basic 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 mainland 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
Since the beginning of 2022, the Company is facing a harsher external environment with more tough
challenges for its operation compared with the year of 2021. Since March, the traditional peak period for the
Company ’ s marketing and trainees enrollment in previous years, Covid-19 has broken out and spread in many
parts of the country, and the prevention and control situation gets tougher. Many cities have adopted stricter
prevention and control measures. Hundreds of direct-operated branches of the Company in various areas suffered
from periodic suspension of classes in turns. At the same time, the multi-provincial joint written exams for civil
servants were postponed to early July. The exams were originally scheduled to start in late March. The interview
for national civil servants and exams for teacher and public institution staff recruitment were also postponed. The
Company's enrollment and teaching have been greatly disrupted. Uncertainty in operating environment has
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
objectively impacted the training business, and exerted great adverse influence on the Company's business
receipts and revenue recognition. During the reporting period, the Company achieved a total operating income of
RMB 2,226,705,000, dropping by 54.15% from the same period of the previous year. The net profit attributable to
shareholders of the listed Company was RMB -890,931,700, dropping by 816.95% over the same period of the
previous year. The net profit after deducting non-recurring profits and losses attributable to shareholders of the
parent company was RMB-903,639,300, dropping by 431.85% from the same period of the previous year.
At the same time, during the reporting period, facing the unfavorable business environment, the Company
proactively rectified the situation, timely adjusted the product structure, and continued to reduce the high-refund
products. The Company actively optimized and adjusted its organization setting, personnel allocation and internal
assessment mechanism in order to reduce cost. Under the circumstance that the income side is affected by the
external adverse environment, the control of the expenditure side has proved to be effective. During the reporting
period, the Company's operating costs dropped by 40% year-on-year, and sales expenses decreased by 28%
year-on-year. The loss in Quarter 2 has narrowed from Quarter 1, and operating cash flow continued to improve.
During the reporting period, the net cash flow from operating activities of the Company increased by 210%
year-on-year.
In the second half of the year, the Company will continue to improve its efficiency in operation and
management through cost reduction and efficiency increase, structural product adjustment and acceleration of new
business development. The Company will accurately grasp and timely respond to market risks, and make timely
adjustment to business strategies. The Company will further strengthen and refine the training business for various
exams postponed to Quarter 3 and seize favorable opportunities to steadily improve business situation and
endeavor to implement the 2022 annual business boost plan.
The key operating resources and performance indicators during the reporting period are shown in the table below:
Increase/decrease
at the end of the
At the end of the
Item Indicators At the end of last year reporting period
reporting period
from the end of last
year
Directly-operated branches 1,440 1,508 -4.51%
Employees 28,992 36,143 -19.79%
Operating
resources R&D personnel 2,015 2,452 -17.82%
Teachers 12,097 14,590 -17.09%
Increase/decrease
in the reporting
Current
Item Indicators Same period of last year period from the
reporting period
same period of the
last year
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Revenue of face-to-face training
1,368,356,235.83 3,120,444,415.18 -56.15%
(RMB)
Revenue of online training (RMB) 848,295,633.45 1,708,087,123.01 -50.34%
Business and Number of training participants 1,841,785.00 2,792,112.00 -34.04%
profits
Operating income (RMB) 2,226,704,962.11 4,855,998,263.50 -54.15%
Net profits attributable to
shareholders of the listed -890,931,710.33 -97,162,509.03 -816.95%
Company(RMB)
Section II. Analysis of the Company’s core competitiveness
The Company's core competitiveness is based on the formation of an enterprise platform driven by the capability
of vertically integrated quick response. The key driving factors are as follows:
1. 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 2,000 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.
2. Vertical integrated fast response capability supports the Company ’s sustainable operation structurally
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
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 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 1,400 business outlets covering 300 prefecture-level cities. 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.
3. 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 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 enhanced the Company ’s core
competitiveness based on speed economy.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
4. 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.
5. 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 fully utilizes 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 trainees. Meanwhile, Offcn Edu focuses on the integration of the Party
building of non-public enterprises with corporate culture construction to promote the healthy and vigorous
development of the enterprise.
As of June 30, 2022, the Company has over 5,000 Party members, accounting for about one-fifth of the total
number of employees.
17
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Section III. Core business analysis
Overview
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
Same period of last
Current reporting period increase or Reasons for changes
year
decrease
Mainly due to the reduction of the
number of face-to-face classes in the
first half of 2022 compared with the
Operating
2,226,704,962.11 4,855,998,263.50 -54.15% same period of the last year and the
income
postponement of the provincial joint
examination, under the circumstance of
pandemic prevention and control.
Mainly due to the decreased number of
face-to-face classes influenced by the
breakout of pandemic in many
Operating provinces and cities in this period, the
1,609,828,642.68 2,684,951,238.24 -40.04%
cost reduction of labor expenses with the
decreased number of teachers and the
decreased performance-based salary of
employees impacted by operating loss.
Mainly due to the reduction of
marketing activities influenced by the
breakout of pandemic in many
provinces and cities in this period, the
Sales
701,766,026.73 975,972,472.83 -28.10% reduction of labor expenses with the
expenses
decreased number of marketing
personnel and the decreased
performance-based salary of employees
impacted by operating loss.
Mainly due to the reduction of labor
expenses with the decreased number of
Management
472,072,638.67 607,894,812.80 -22.34% management personnel and the
expenses
decreased performance-based salary of
employees impacted by operating loss.
Mainly due to the decrease of bank loan
Financial
142,651,288.82 257,804,336.41 -44.67% interest and financial institution
expenses
handling fee in this period.
Mainly due to the recognition of
Income tax -140,436,954.64 7,582.67 -1,852,177.89%
deferred tax assets in this period.
18
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
expenses
Mainly due to the reduction of labor
expenditure on R&D personnel resulted
R&D
327,590,103.90 542,875,812.43 -39.66% from its decreased number and the
investment
decreased performance-based salary of
employees impacted by operating loss.
Mainly due to the decreased number of
face-to-face classes and marketing
activities influenced by the breakout of
Net cash
pandemic in many provinces and cities
flow from
1,032,982,411.32 -939,091,457.95 210.00% in this period, the reduction of labor
operating
expenses with the decreased number of
activities
staff and the decreased
performance-based salary of employees
impacted by operating loss.
Net cash
Mainly due to the purchase of land use
flows from
310,394,650.18 -857,536,416.32 136.20% rights in the same period of the last
investing
year.
activities
Net cash
flow from Mainly due to the absence of new
-2,187,990,182.13 -593,198,529.67 -268.85%
financing short-term borrowings in this period.
activities
Net increase Mainly due to the comprehensive
in cash and impact of the net cash flow from
-844,613,120.63 -2,389,826,403.94 64.66%
cash operating, investing and financing
equivalents activities in this period.
Significant changes of the components or origin of profits during the reporting period:
The Company’s components or origin of profits did not change significantly during the reporting period.
Composition of revenue
Unit: RMB
This reporting period Same period of last year Year-on-year
Proportion of Proportion of increase or
Amount Amount
revenue revenue decrease
Revenue 2,226,704,962.11 100% 4,855,998,263.50 100% -54.15%
Sectors
Educational
2,216,651,869.28 99.55% 4,828,531,538.19 99.43% -54.09%
training
Others 10,053,092.83 0.45% 27,466,725.31 0.57% -63.40%
Categories of product
Training for civil 717,894,206.69 32.24% 2,314,794,227.86 47.67% -68.99%
19
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
servant test
Training for public
435,320,029.01 19.55% 618,725,582.65 12.74% -29.64%
institution test
Training for
teachers’
386,910,102.75 17.38% 534,948,828.84 11.02% -27.67%
recruitment and
qualification test
Training for other
public services test 676,527,530.83 30.38% 1,360,062,898.84 28.01% -50.26%
and new businesses
Others 10,053,092.83 0.45% 27,466,725.31 0.57% -63.40%
Regions
Northeast China 271,813,047.98 12.21% 733,517,217.12 15.10% -62.94%
North China 373,570,051.82 16.78% 890,311,431.14 18.33% -58.04%
East China 525,698,968.29 23.61% 1,172,672,546.07 24.15% -55.17%
Middle China 308,986,718.36 13.88% 559,497,519.24 11.52% -44.77%
South China 231,424,869.62 10.39% 379,585,003.57 7.82% -39.03%
Southwest China 268,491,448.80 12.06% 547,267,354.92 11.27% -50.94%
Northwest China 236,666,764.41 10.63% 545,680,466.13 11.24% -56.63%
Others 10,053,092.83 0.45% 27,466,725.31 0.57% -63.40%
Particulars of sectors, products or regions that account for more than 10% of the revenue or operating income
□ Applicable Not applicable
Section IV. Non-core business analysis
Applicable □ Not applicable
Unit: RMB
Proportion of total
Amount Reasons Sustainable or Not
profits
Mainly due to
investment income of
associate enterprises
Investment income -2,230,731.92 0.22% under equity method, Uncertain
income from financial
products, and interest
of fixed time deposit.
Gains and losses from Changes in fair value
-3,435,742.21 0.33% Uncertain
changes in fair value of financial product
Non-operating Formed during the
4,372,388.19 -0.42% Uncertain
expenses operating process
Section V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
20
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
End of the reporting period End of last year Increase or Explanations
Proportion of Proportion of decrease in on major
Amount Amount proportion changes
total assets total assets
No major
Monetary fund 1,125,206,088.93 12.56% 1,970,361,272.64 19.12% -6.56% changes in the
current period
No major
Accounts
40,173,740.04 0.45% 40,374,842.27 0.39% 0.06% changes in the
receivable
current period
No major
Investment
634,777,014.96 7.08% 644,936,541.46 6.26% 0.82% changes in the
properties
current period
Long-term No major
equity 37,342,667.62 0.42% 46,850,364.40 0.45% -0.03% changes in the
investment current period
No major
Fixed assets 1,719,895,941.92 19.19% 1,770,372,338.85 17.18% 2.01% changes in the
current period
No major
Construction in
311,967,758.92 3.48% 294,785,678.31 2.86% 0.62% changes in the
progress
current period
No major
Right-of-use
1,213,157,017.24 13.54% 1,342,280,387.08 13.03% 0.51% changes in the
asset
current period
Mainly due to
the absence of
Short-term new short-term
1,251,590,694.36 13.97% 3,152,945,812.59 30.60% -16.63%
borrowings borrowings in
the current
period
Mainly due to
the delay in the
recognition of
income for the
Contract reason of
4,783,136,184.36 53.37% 3,063,721,290.28 29.73% 23.64%
liabilities postponement
of the
provincial joint
exams in the
current period
No major
Lease liabilities 524,208,664.69 5.85% 635,691,184.87 6.17% -0.32% changes in the
current period
2. Key overseas assets
□ Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Profits and Accumulated Provision Amount of Amount of sales
Opening Other
Items changes in for purchase in the in the current Closing Balance
Balance losses from the Changes
fair value impairment current period period
21
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
changes in fair attributed to in current
equity period
value in
current
period
Financial
assets
Transactio
nal
financial
assets 376,986,621. -3,435,742.2 108,700,000.0 449,816,629.8
32,434,249.66
(excluding 74 1 0 7
derivative
financial
assets)
Investment
in other
130,400,000. 130,400,000.0
equity
00 0
instrument
s
507,386,621. -3,435,742.2 108,700,000.0 449,816,629.8 162,834,249.6
Total
74 1 0 7 6
Financial
0.00 0.00
liabilities
Others changes
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
Unit: RMB
Items Book value at the end of the period Reasons for Restriction
Monetary fund 13,200.00 Deposit
Total 13,200.00
Section VI. Analysis of investments
1. Overview
Applicable □ Not applicable
Amount of investment during the Amount of investment in the same period
Variation
reporting period (RMB) of last year (RMB)
131,108,166.24 8,300,352,568.17 -98.42%
2. Major equity investment obtained during the reporting period
□ Applicable Not applicable
3. Major non-equity investment ongoing during the reporting period
22
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
□ Applicable Not applicable
4. Financial assets investment
(1) Securities investment
□ Applicable Not applicable
There is no securities investment during the reporting period.
(2) Derivatives investment
□ Applicable Not applicable
There is no derivatives investment during the reporting period.
5. Use of raised fund
□ Applicable Not applicable
There is no use of raised fund 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 holding and participating companies
Applicable □ Not applicable
Major subsidiaries and shareholding companies that affect the Company's net profit by more than 10%
Unit: RMB
Company
Beijing Offcn Education Technology Co., Ltd.
name
Company
Subsidiary
type
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,
Major
production, agency, release of advertisements; job intermediary activities; radio and television program production;
business
human resource services; engaging in Internet cultural activities; publication retails; operating telecommunication
business; publication wholesale. (Market entities independently choose operating projects and carry out operating
activities in accordance with the law; job intermediary activities, radio and television program production, human
resource services, engaging in Internet cultural activities, publication retail, telecommunications business, publication
23
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
wholesale 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
90,000,000.00
capital
Total assets 7,728,923,391.10
Net assets 124,402,153.06
Revenue 2,226,277,077.92
Operating
-971,302,315.70
income
Net profit -831,256,054.08
Acquisition and disposal of subsidiaries during the reporting period.
Applicable □ Not applicable
Method of acquisition and disposal of Impact on the overall business operation
Company name
subsidiaries in the reporting period and performance
Sichuan Offcn Luming Cultural Media
New establishment No major impact
Co. Ltd.
Tianjin Jinnan Offcn LexueTraining
New establishment No major impact
School Co., Ltd.
Major holding and participating companies
The wholly-owned subsidiary of the Company, Beijing Offcn Education Technology Co., Ltd, earned
revenue of RMB 2,226.2771 million in the first half of 2022 with a decrease of 37.99% over the first half of 2021;
the net profits of Beijing Offcn Education Technology Co., Ltd in the the first half of 2022 is RMB -831.2561
million, with a decrease of 1237.02% over the same period of last year. The main reasons are as follows: the dual
impact from the pandemic and economic situation, the postponement of provincial joint exams, the periodic
fluctuation of exams in education and training industry, tightened demand for training, and the weaker willingness
to attend training. At the same time, many provinces and cities took measures such as work from home, home
quarantine, travel reduction and etc. to prevent and control the pandemic during different period in 2022. Thus,
local directly-operated outlets and learning centers were closed temporarily, and offline training were suspended,
which has affected business development and performance achievement to a certain extent, and further impacted
operating income.
Section IX. Structured entities controlled by the Company
□ Applicable Not applicable
Section X. Possible risks and responses
1. Industry policy risks
24
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
The prosperity of the vocational education industry has a high correlation with the policy environment, and is
easily affected by the 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. However, it will take time for the corresponding supporting laws and regulations to be fully implemented,
and there will still be uncertainties in the future. If there are major changes or adjustments in relevant laws and
regulations or industrial policies in the future, it may exert an impact on the development trend of vocational
education industry, thus influencing the Company's future business and performance. In addition, the Company
has a large number of branches and training venues are widely distributed. It cannot be ruled out that in the future,
relevant regulatory departments of provinces, autonomous regions and municipalities may issue more stringent
regulations for the local education and training industry, which may affect the Company's operations in the region.
Responses: Each branch of the Company has established a tracking research policy team to conduct in-depth
analysis of the policies. At the same time, the Company's profound accumulated strength in IT independent
development and the effective digital transformation of operations simultaneously ensure the high efficiency of
information feedback. Through the upgrading and rebuilding of basic systems such as ERP, CRM and teaching
platform, it is possible to obtain, perceive and predict the direction and trend of relevant policy changes in various
places in time, make layout and adjust in advance, avoid relevant policy risks, and take advantage of industry
policies to promote the Company’s business development.
2. Market risk
The vocational education industry is encouraged by national policies and is expected to continue to keep
prosperous, which will definitely attract more and more capital being poured into education training industry and
make the market competition even more fierce. At the same time, the recurrence of Covid-19 has put China ’s
economy under triple pressure of shrinking demand, supply shock and weak expectations. Though the promotion
of Covid-19 vaccine in various places has laid a foundation for economy recovery, consumers ’ confidence has
significantly dropped. Consumption willingness is low and the demand for training has significantly shrunk.
Therefore, from long term perspective, the market demand will still be growing but it cannot be ruled out that in
the short term, the demand may decline due to various factors, such as students’ low enthusiasm to participate in
tests.
Responses: The Company will continue to maintain effective R&D investment. By investing in technology
infrastructure and technical teams, the productivity of science and technology will be fully integrated into the
operating system to boost business innovation and improve the quality of products and services. The Company
will optimize product structure in a timely manner, and focus on the needs of the market and students. The
Company will polish curriculum product quality and innovate service mode to improve operating efficiency; and
at the same time, according to the Company's operating conditions, the Company will seek the balance in products,
personnel, and channels, strengthen cost control, and consolidate the company's ability to resist market risks.
3. Operational management risk
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 is recurring in some parts of China
resulting in the failure to carry out offline training in some regions. In addition, due to the impact of the pandemic,
the recruitment tests for civil servant in some regions has been delayed or canceled, resulting in a decline in
market demand. If the pandemic worsens or spreads further in the future, it may have a material adverse impact on
the Company's operating results.
Responses: 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 and upgrade human resources structure to match 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. The Company will continue to invest in
online and OMO aspects to improve the integration of offline and online businesses and alleviate the impact of the
pandemic.
26
Offcn Education Technology Co., Ltd. 2022 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
2022 First Extraordinary Announcement on Resolutions of the
January 29,
Extraordinary General 75.06% January 28, 2022 First Extraordinary General
2022
General Meeting Meeting Meeting of 2022 (No. 2022-012)
disclosed on www.cninfo.com.cn.
For details, refer to the
2021 Annual Announcement on Resolutions of the
Annual General June 28,
General 78.27% June 27, 2022 Annual General Meeting of 2021
Meeting 2022
Meeting (No. 2022-052) 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
Name Title Type Date Reasons
Resignation Because of his expiration of appointment, Mr.
Independent
Wang Qiang after expiration January 28, 2022 Wang Qiang no longer serves as an
director
of appointment independent director of the Company.
Resignation Because of her expiration of appointment, Ms.
Independent
Tong Yan after expiration January 28, 2022 Tong Yan no longer serves as an independent
director
of appointment director of the Company.
Resignation Because of his expiration of appointment, Mr.
Deputy general
Wang Xuejun after expiration January 28, 2022 Wang Xuejun no longer serves as the deputy
manager
of appointment general manager of the Company.
According to the election results of the
Company’s 2022 First Extraordinary
Independent General Meeting and the First Meeting of the
Jiang Tao Elected January 28, 2022
director Sixth Board of Directors, Mr. Jiang Tao was
elected as an independent director of the
Company’s Sixth Board of Directors.
According to the election results of the
Company’s 2022 First Extraordinary
Independent General Meeting and the First Meeting of the
Chen Yuqin Elected January 28, 2022
director Sixth Board of Directors, Ms. Chen Yuqin was
elected as an independent director of the
Company’s Sixth Board of Directors.
Section III. The Company ’ s common stock profit distribution and capitalization of capital
27
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
reserve during the reporting period
□ Applicable Not applicable
The Company plans not to distribute cash dividends, bonus shares, or to increase share capital by converting
capital reserve in the first half of the year.
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 during the reporting period.
28
Offcn Education Technology Co., Ltd. 2022 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
N/A
Measures taken to reduce carbon emissions during the reporting period and the effects
□Applicable Not applicable
Reasons of not disclosing other environmental information
N/A
Section II. Social Responsibilities
The Company has not carried out targeted poverty alleviation and other work in the first half of the year.
29
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Chapter 6 Significant Events
Section I. 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:
Commitment Commitment Commitment Commitment
Contents of commitment Performance
party type time period
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
Yaxia
distribution of stock dividends and the
Industrial,
conversion of capital reserve to share
Zhou Xiayun,
Letter of capital shall also comply with the
Zhou Hui,
commitment above-mentioned arrangement of restricted
Zhou Li,
on the share sale of shares. May 4, 2018 Jan. 31, 2022 Fulfilled
Phase-I
lock-up If the China Securities Regulatory
employee
period Commission and/or Shenzhen Stock
stock
Exchange have/has other provisions for the
ownership
above-mentioned lock-up period
plan
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.
Letter of 1. The shares of the listed Company
Commitment subscribed by myself in this transaction
Under normal
Li Yongxin on lock-up shall not be transferred or dealt with in any Apr. 27, 2018 Jan. 31, 2022
implementation
period for other forms within 36 months from the date
subscription of the listing of the shares. Within 6 months
30
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
of shares after the listing of the shares, if the closing
price of the listed Company stock is lower
than the issue price for consecutive 20
trading days, or the closing price of the
stock at the end of the 6 months after the
listing of the shares is lower than the issue
price, the lock-up period of consideration
shares acquired by myself shall be
automatically extended for 6 months on the
basis of the original lock-up period.. (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 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
31
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
capital reserve of the listed Company shall
also comply with the foregoing provisions.
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 listing of the shares. Within 6 months
after the listing of the shares, if the closing
price of the listed Company stock is lower
than the issue price for consecutive 20
trading days, or the closing price of the
stock at the end of the 6 months after the
listing of the shares is lower than the issue
price, the lock-up period of consideration
Letter of
shares acquired by myself shall be
commitment
automatically extended for 6 months on the
Lu on lock-up Under normal
basis of the original lock-up period.. (If Apr. 27, 2018 Jan. 31, 2022
Zhongfang period for implementation
dividend or bonus shares distribution,
subscription
conversion of capital reserve or allotment
of shares
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
32
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 provisions.
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 The Company’s
subscribed by Kerui Technology Innovation shares held by
in this transaction shall not be transferred Kerui
or dealt with in any other forms within 36 Technology
Letter of months from the date of the listing of the Innovation were
commitment shares. Within 6 months after the listing of listed for
Kerui
on lock-up the shares, if the closing price of the listed circulation on
Technology Jul. 27, 2018 Jan. 31, 2022
period for Company stock is lower than the issue February 11,
Innovation
subscription price for consecutive 20 trading days, or 2022, the
of shares the closing price of the stock at the end of shareholders’
the 6 months after the listing of the shares share lock-up
is lower than the issue price, the lock-up commitments
period of consideration shares acquired by had been
Kerui Technology Innovation shall be fulfilled.
33
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
automatically extended for 6 months on the
basis of the original lock-up period. (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 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 acquired
by the enterprise due to bonus shares
distribution or conversion of capital reserve
of the listed Company shall also comply
with the foregoing provisions.
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.
Letter of Within 36 months from the date of the
Offcn commitment transfer of 80,000,000 shares of Yaxia Auto Under normal
Apr. 27, 2018 Jan. 31, 2022
Partnership on the held by Anhui Yaxia Industrial Co., Ltd. to implementation
lock-up of the enterprise, the shares shall not be
34
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
shares transferred. The lock-up period of the
shares increased during the above period
due to bonus shares distribution,
conversion of capital reserve or allotment
of shares by Yaxia Auto, shall be the same
as the underlying shares.
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 Industrial Co.,Ltd. to
Beijing Offcn Future Information
Consulting Center (Limited Partnership), I
Letter of or the enterprise shall not in any way
commitment transfer the shares of Beijing Offcn Future
on the Information Consulting Center (Limited
Li Yongxin
lock-up of Partnership) or withdraw from the
and other 10 Jul. 27, 2018 Jan. 31, 2022 Fulfilled
Offcn partnership with Beijing Offcn Future
counterparties
Partnership’s Information Consulting Center (Limited
contribution Partnership), nor do we transfer, assign or
shares authorize other entities in any way to fully
or partially 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).
I. Guarantee the independence of the listed
Company’s personnel.
(1) It is guaranteed that after the
completion of this transaction, the labor,
the personnel, and remuneration
Li Yongxin Letter of management of the listed Company shall be
Lu commitment completely independent from myself/Offcn
Zhongfang on Partnership, and from other related parties,
Under normal
Wang maintaining such as companies, enterprises or economic Apr. 27, 2018 Long-term
implementation
Zhendong independence organizations, controlled by myself/Offcn
Offcn of the listed Partnership.
Partnership Company (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
35
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 in the listed
Company 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
completion of this 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 shall be no
capital and assets of the listed Company
36
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
occupied by myself/Offcn Partnership, and
other related parties, such as companies,
enterprises or economic organizations,
controlled by myself/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
and sustainable business.
(2) It is guaranteed that after the
completion of this transaction, I/Offcn
Partnership, and other related parties,
such as companies, enterprises, or other
economic organizations controlled by
myself/Offcn Partnership shall avoid
engaging in the 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, and 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
37
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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/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 related parties, such as companies,
enterprises or other economic organizations
controlled by myself/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.
I. As of the date of signing this letter of 1. The transfer As of the end of
commitment, myself, my close relatives of Kairuier the reporting
and other companies, enterprises or Training period, Kairuier
economic organizations controlled by School in Training School
Letter of
myself and my close relatives, except for Haidian in Haidian
Li Yongxin, Commitment
Beijing Offcn Online Education Sept. 20, District of District of
Lu on avoiding
Technology Co., Ltd. (hereinafter referred 2018 Beijing: within Beijing had
Zhongfang horizontal
to as Offcn Online), controlled by my 24 months been transferred
competition
relatives Xuhua and Lu Yan, and its from the date to an unrelated
affiliated schools which are involved in the of signing this third party.
same or similar businesses conducted by letter of Other
Offcn Ltd., other related parties are not commitment commitments
38
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
involved in any same, similar or related 2. The transfer are under
businesses conducted by the listed of Kunming normal
Company, Offcn Ltd. and its affiliated Wuhua Offcn implementation.
companies and schools. Except for serving Training
as a director in Kunming Wuhua Offcn School
training school, which is affiliated to Offcn subordinate to
Online, Li Yongxin neither holds any Offcn Online:
full-time or part-time positions nor within 12
provides consultancy at any companies or months after
enterprises, which conduct competitive the revised
businesses with the listed Company, Offcn Regulations of
Ltd. and their affiliates. I also do not Implementation
directly or indirectly hold any equity or is officially
shares of companies or enterprises promulgated
conducting the same, similar or related and
businesses engaged by the listed Company, implemented
Offcn Ltd. and its affiliates. and supporting
II. As of the date of signing this letter of regulations
commitment, Offcn Online and its two formulated by
subordinate training schools’ disposals are relevant local
as follow: Offcn Online conducts no education
education businesses (to be deregistered authorities in
after subordinate schools being accordance
transferred). Kairuier Training School with the
subordinate to Offcn Online in Haidian revised
District of Beijing is to be transferred to an Regulations of
unrelated third party and the organizer ’ s Implementation
equity transfer agreement has been signed. comes into
If the transfer is not completed within 24 effect.
months since the date of signing this letter
of commitment, I will urge Offcn Online to
deregister the Kairuier Training School in
Haidian District of Beijing. Kunming
Wuhua Offcn Training School, subordinate
to Offcn Online, has been closed and it will
be transferred to an unrelated third party or
will be deregistered within 12 months after
the revised Regulations for the
Implementation of the Law on the
Promotion of Private Education of the
People ’ s Republic of China (hereinafter
referred to as Regulations of
Implementation) is officially promulgated
and implemented and supporting
39
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
regulations formulated by relevant local
education authorities in accordance with
the revised Regulations of Implementation
comes into effect.
III. As of the date of signing this letter of
commitment, Offcn Ltd. as the organizer,
intends to transfer its 100% of the
organizer ’ s rights and interests of 33
private schools for non-academic
qualifications to Li Yongxin and singed the
Agreement on Transfer of Organizer ’ s
Rights of Private Non-enterprise Schools
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 Non-enterprise Schools.
IV. After the completion of this 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 engage
in, 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 in
any economic entities whose businesses
constitute a direct or indirect competitive
40
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
relationship with the listed Company and
its affiliates.
(3) I will not be hired by any competitors
that directly or 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.
V. 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
permission, I will attempt to transfer these
business opportunities to the listed
Company and its affiliates.
VI. I guarantee that I will never use my
knowledge and the information about the
listed Company and its affiliates to assist
third parties to engage in, participate in, or
invest in businesses or projects that
compete with the listed companies and its
affiliates.
VII. 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
41
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
receiving the written notice from the listed
Company, compensation will be made in
cash.
VIII. I will disclose relevant information in
a timely manner if commitments fail to be
fulfilled or fail 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
commitments are anyhow unable to be
fulfilled or fulfilling the commitments is
not conducive to safeguarding the rights
and interests of the listed Company, I
should fully disclose the reasons and either
provide new commitments to the listed
Company and related investors to replace
the original ones, or propose an exemption
from fulfilling the commitments.
IX. The commitment is valid from the date
when the letter of commitment is signed to
the time when I cease to be the actual
controller of the listed Company.
I. As of the date of signing this letter of
commitment, I, my close relatives, 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, participate
Letter of in no businesses which are same, similar to
Wang
Commitment or related to businesses competing with the
Zhendong, Under normal
on avoiding listed Company, Offcn Ltd. and their Apr. 27, 2018 Long-term
Offcn implementation
horizontal affiliated companies and schools. Except
Partnership
competition for serving as a director at Kairuier
Training School in Haidian District of
Beijing, affiliated to Offcn Online (Offcn
Online tends to transfer the rights and
interests of Kairuier Training School in
Haidian District of Beijing to an unrelated
third party and after this transfer, Wang
Zhendong will not hold the post as a
director), I neither hold any full-time or
42
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
part-time positions nor provide consultancy
at any companies or enterprises which
conduct competitive businesses with the
listed Company, Offcn Ltd. and their
affiliates. I/Offcn Partnership do not
directly or indirectly hold any equity or
shares of companies or enterprises
conducting the same, similar or related
businesses engaged by the listed Company,
Offcn Ltd. and its affiliates.
II. After the completion of this 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:
(1) I/Offcn Partnership will not directly or
indirectly engage in, 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/Offcn Partnership will not directly or
indirectly invest in any economic entities
whose businesses constitute a direct or
indirect competitive relationship with the
listed Company and its affiliates.
(3) I/Offcn Partnership will not be hired by
any competitors that directly or indirectly
43
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
compete with the listed Company and its
affiliates, or provide any advice, assistance
or business opportunities directly or
indirectly to such competitors.
(4) I/Offcn Partnership 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/Offcn Partnership will not urge others
to hire employees or management
personnel from the listed Company and its
affiliates.
III. 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 permission, I/Offcn
Partnership will attempt to transfer these
business opportunities to the listed
Company and its affiliates.
IV. I/Offcn Partnership guarantee that
I/Offcn Partnership will never use my
knowledge and the information about the
listed Company and its affiliates to assist
third parties to engage in, participate in, or
invest in businesses or projects that
compete with the listed Company and its
affiliates.
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 the above commitments.
44
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
1. After the transaction is completed,
during the period of being the actual
controller of the listed Company, I, my
close relatives and other companies,
enterprises or other economic organizations
controlled by myself and my close
relatives, shall try to avoid and reduce the
related-party transactions with the listed
Company and its affiliates; unless it is
necessary for the business development of
the listed Company, any related-party
transactions with the listed Company and
its affiliates will not be conducted.
2. After the transaction is completed, for
the related-party transactions which are
unavoidable or reasonable to conduct with
the listed Company and its affiliates, I, my
close relatives and other companies,
enterprises or economic organizations
Letter of
controlled by myself and my close
Commitment
relatives, will sign related-party transaction
Li Yongxin, on reducing
agreements with the listed Company and its Under normal
Lu and Jul. 27, 2018 Long-term
affiliates in accordance with the relevant implementation
Zhongfang regulating
laws, regulations and regulatory documents
related-party
and follow the general business principles
transactions
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 this 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 unequal conditions or engage in any
45
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
behaviors that would damage the interests
of the listed Company.
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 this transaction,
during the period of being the actual
controller/shareholder of the listed
Company, I, my close relatives and other
companies, enterprises or other economic
organizations controlled by myself, my
close relatives, Aerospace Industry, Offcn
Letter of
Wang Partnership and other companies,
Commitment
Zhendong, enterprises or other economic organizations
on reducing
Aerospace controlled by Aerospace Industry and Offcn Under normal
and Apr. 27, 2018 Long-term
Industry, Partnership, shall try to reduce and regulate implementation
regulating
Offcn the related-party transactions with the listed
related-party
Partnership Company and its affiliates.
transactions
2. After the transaction is completed, for
the related-party transactions which are
unavoidable or reasonable to conduct with
the listed Company and its affiliates, I, my
close relatives and other companies,
enterprises or economic organizations
controlled by myself and my close
46
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
relatives, Aerospace Industry, Offcn
Partnership, and other companies,
enterprises or economic organizations
controlled by Aerospace Industry and Offcn
Partnership will conduct the transactions
with fair and reasonable prices under the
general market principles.
Decision-making procedures, lawful
information disclosure obligations and
relevant reporting and approval procedures
regarding the related-party transactions in
accordance with the relevant laws,
regulations and regulatory documents, 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 this transaction,
I/Aerospace Industry/Offcn Partnership
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 unequal conditions or engage in any
behaviors that would damage the interests
of the listed Company.
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 the above
commitments.
Whether the commitments are
Yes
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.
47
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Section III. Illegal provision of guarantees for external parties
□Applicable Not applicable
During the reporting period, there was no illegal provision of guarantees for external parties.
Section IV. Appointment and dismissal of the CPA firm
Has the semi-annual financial report been audited?
□Yes No
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 of bankruptcy and reorganization of the Company during the reporting period.
Section VIII. Litigation and arbitration matters
Major litigation and arbitration matters
□Applicable Not applicable
There is no such situation of major litigation and arbitration of the Company during the reporting period.
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 13.0771 million, and
the actual amount of judgments in effective legal documents was RMB 0.3981 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 47.5162
million and the amount of litigation involved in pending cases accounted for 2.52% of the audited net assets
attributable to shareholders of the listed Company in 2021, which had no significant impact on the Company’s
operations.
Section IX. Punishment and rectification
Applicable □Not applicable
Name Type Reason Type of investigation Conclusion (if Date of Index of disclosure
48
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
and punishment any) disclosure
Failing to The Announcement on
disclose Offcn Education
related-party Filed and Ordered to make Technology Co., Ltd.
Offcn transaction investigated by China corrections, and the Relevant
Education information Securities Regulatory given a warning, Parties’ Reception of
Other Apr. 28, 2022
Technology and violating Commission (CSRC) and imposed a Decision of
Co., Ltd. the laws and or punished fine of RMB 4 Administrative Penalty
regulations of administratively million (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Failing to The Announcement on
disclose Offcn Education
related-party Filed and Technology Co., Ltd.
transaction investigated by China Given a warning, and the Relevant
Actual information Securities Regulatory and imposed a Parties’ Reception of
Li Yongxin Apr. 28, 2022
controller and violating Commission (CSRC) fine of RMB 2 Decision of
the laws and or punished million Administrative Penalty
regulations of administratively (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Failing to The Announcement on
disclose Offcn Education
related-party Filed and Technology Co., Ltd.
transaction investigated by China Given a warning, and the Relevant
information Securities Regulatory and imposed a Parties’ Reception of
Shi Lei Director Apr. 28, 2022
and violating Commission (CSRC) fine of RMB 2 Decision of
the laws and or punished million Administrative Penalty
regulations of administratively (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Failing to The Announcement on
disclose Offcn Education
related-party Filed and Technology Co., Ltd.
transaction investigated by China Given a warning, and the Relevant
Wang Senior information Securities Regulatory and imposed a Parties’ Reception of
Apr. 28, 2022
Zhendong executive and violating Commission (CSRC) fine of RMB 1 Decision of
the laws and or punished million Administrative Penalty
regulations of administratively (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Failing to The Announcement on
disclose Offcn Education
related-party Filed and Technology Co., Ltd.
transaction investigated by China Given a warning, and the Relevant
Senior information Securities Regulatory and imposed a Parties’ Reception of
Gui Hongzhi Apr. 28, 2022
executive and violating Commission (CSRC) fine of RMB 0.5 Decision of
the laws and or punished million Administrative Penalty
regulations of administratively (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Failing to Filed and The Announcement on
disclose investigated by China Given a warning, Offcn Education
Senior related-party Securities Regulatory and imposed a Technology Co., Ltd.
Luo Xue Apr. 28, 2022
executive transaction Commission (CSRC) fine of RMB 0.5 and the Relevant
information or punished million Parties’ Reception of
and violating administratively Decision of
49
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
the laws and Administrative Penalty
regulations of (No. 2022-032)
information disclosed on
disclosure www.cninfo.com.cn.
Particulars on rectification
Applicable □Not applicable
On April 27, 2022, the Company and the relevant parties received the official Decision of Administrative Penalty
from the Anhui Securities Regulatory Bureau of CSRC. In response to this administrative penalty, the Company
has completed the rectification in strict accordance with the requirements. The Company will learn lessons,
strengthen the standardization of internal governance, strictly abide by relevant laws and regulations, and
comprehensively improve the level of compliance management and internal control to avoid the recurrence of
similar problems.
Section X. Integrity of the Company and its controlling shareholders and actual controllers
□Applicable Not applicable
Section XI. Significant related-party transactions
1. Related-party transactions relevant to daily operations
Applicable □Not applicable
Ji'an Jingkai Lixiangxue Financial Information Service Co., Ltd. / Shanghai
Related party
Beiding Network Technology Co., Ltd.
Relationship Enterprise actual-controlled by the director of the Company
Total
Type of related-party transaction Purchasing products and goods from the related party
Content of related-party
Commission fee
transaction
Pricing principle for related-party
Fair market pricing --
transaction
Price of related-party transaction Fair market pricing --
Amount of related-party
transaction (RMB 10 thousand 5,382.7 5,382.7
yuan)
Proportion of the amount of
7.15% --
similar transactions
Approved transaction limit (RMB
7,800 7,800
10 thousand yuan)
Whether exceeding the approved
No --
transaction limit
Settlement method of
Wire transfer --
related-party transaction
Available market price for similar
None --
transactions
Date of disclosure April 29, 2022 --
50
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
CNINFO (http://www.cninfo.com.cn)
Index of disclosure Announcement on the Estimated Limit of Daily Related-party Transactions in --
the Year of 2022 (No. 2022-035)
Details of large sales returns N/A
Actual performance during the
reporting period of the total
amount of the daily related-party N/A
transactions estimated by
categories in this period (if any)
Reasons for large differences
between transaction prices and
N/A
market reference prices (if
applicable)
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
□Applicable Not applicable
There is no deposits, loans, credits or other financial business between the Company and the related financial
companies and related parties.
6. Transactions between financial companies controlled by the Company and related parties
□Applicable Not applicable
There is no deposits, loans, credits or other financial business between financial companies controlled by the
Company and related parties.
7. Other significant related-party transactions
□Applicable Not applicable
There are no other significant related-party transactions of the Company during the reporting period.
Section XII. Major contracts and their performance
51
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 the Agreement on Transfer of Organizer ’s Rights of
Private Non-enterprise Schools Affiliated to Beijing Offcn Education Technology Co., Ltd.. All 100% of the
organizer ’ s rights and interests for non-academic qualifications schools 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 Non-enterprise 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 and interests 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 organizer ’s rights and interests to the
unrelated third party or canceled them.)
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
□Applicable Not applicable
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
Unit: RMB 10 thousands
Sources of Amount of Overdue amount Impairment
Types Undue Balance
entrusted financing entrusted financing yet to be recovered provision of
52
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
overdue
outstanding funds
Bank Financial
Self-owned fund 10,870 216.31 0 0
Product
Total 10,870 216.31 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. Other significant contract
Applicable □Not applicable
53
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Section XIII. Other significant events
Applicable □Not applicable
On December 15, 2021, the Company received the Notice of Filing (No. SR Filing 0232021010) from the
CSRC for being suspected of failing to disclose related-party transaction information and violating the laws and
regulations of information disclosure.
On April 27, 2022, the Company and the relevant parties received the official Decision of Administrative
Penalty from the Anhui Securities Regulatory Bureau, which determines Offcn Edu, its subsidiaries Beijing Offcn
Education Technology Co., Ltd. and Liaoning Zhongcheng Real Estate Development Co.,Ltd. constitute a
related-party relationship with Shaanxi Guancheng Industrial Co., Ltd., Beijing Chuangsheng Construction
Decoration Engineering Co., Ltd., Shanghai Beiding Network Technology Co., Ltd., Ji'an Jingkai Lixiangxue
Financial Information Service Co., Ltd. and Liaoning Hanhui Industrial Co., Ltd.. The total amount involved in
54
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
related transactions was RMB 1232.395 million yuan, including RMB 196.335 million yuan in year 2019 and
RMB 1036.06 million yuan in year 2020, which account for 6.65% and 30.19% of the net assets of Offcn Edu in
the latest period respectively. The Company did not disclose the above-mentioned information in accordance with
relevant laws and regulations and there existed major omissions of the Company ’ s information disclosure. A
warning was given to and a fine was imposed on the Company and the relevant persons responsible for the
situation, and corresponding rectification was required. Specific information is stated in the announcement (No.
2022-032) disclosed by the Company on CNINFO (www.cninfo.com.cn) and other designated media for
information disclosure.
Section XIV. Significant events of the Company’s subsidiaries
□Applicable Not applicable
55
Offcn Education Technology Co., Ltd. 2022 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 -188,285,64 4,376,490,37
4,564,776,021 74.01% -188,285,642 70.96%
2 9
(1) Shares held by state
(2) Shares held by state-owned
legal person
(3) Other shares held by domestic -188,285,64 4,376,490,37
capital 4,564,776,021 74.01% -188,285,642 70.96%
2 9
Of which: shares held by domestic
legal person 89,117,723 1.44% -89,117,723 -89,117,723 0 0.00%
Shares held by domestic 4,376,490,37
natural person 4,475,658,298 72.57% -99,167,919 -99,167,919 70.96%
9
(4) Shares held by overseas capital
Of which: shares held by overseas
legal person
Shares held by overseas
natural person
2. Shares without trading 1,790,909,01
restrictions 1,602,623,368 25.99% 188,285,642 188,285,642 29.04%
0
(1) RMB ordinary shares 1,790,909,01
1,602,623,368 25.99% 188,285,642 188,285,642 29.04%
0
(2) Domestic-listed shares for
oversea investors
(3) Foreign-listed shares for
overseas investors
(4) Other
3. Total number of shares 6,167,399,38
6,167,399,389 100.00% 0.00 0.00 100.00%
9
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 11,
56
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
2022 and the locked shares of the senior executives changed during the reporting period.
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 latest year and the latest period
□ Applicable Not applicable
Other contents 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 sales
Name of sales sales Reasons for sales releasing
shareholder restrictions restrictions restrictions restrictions on
restrictions restrictions
at the increased sales
released in at the end of
beginning of in the
the period the period
the period period
Beijing Kerui
Technology Releasing sales restriction
Innovation on shares from major assets February 11,
89,117,723 89,117,723 0 0
Investment Center replacement and shares 2022
(Limited issued for assets purchase
Partnership)
According to
the relevant
regulations of
Changes of Senior
Wang Zhendong 721,853,563 82,189,500 0 639,664,063 senior
executive’s lock-up shares
executive’s
lock-up
shares
Guo Shihong 36,092,677 7,955,250 0 28,137,427 Changes of Senior According to
57
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
executive’s lock-up shares the relevant
regulations of
senior
executive’s
lock-up
shares
According to
the relevant
regulations of
Changes of Senior
Zhang Yongsheng 36,092,677 9,023,169 0 27,069,508 senior
executive’s lock-up shares
executive’s
lock-up
shares
Total 883,156,640 188,285,642 0 694,870,998 — —
Section II. Issuance and listing of securities
□ Applicable Not applicable
Section III. Number of Shareholders and Shareholdings
Unit: Share(s)
Total number of shareholders with Total number of preferred shareholders with
ordinary shares at the end of the 174,047 voting rights restored at the end of the reporting 0
reporting period period (if any) (See Note 8)
Shareholders with over 5% ordinary shares or top 10 ordinary shareholders
Number of Pledged or Frozen
Increase and Number of Number of
ordinary
Shareholding decrease of ordinary ordinary
Name of Nature of shares held at
Percentage shares during shares held shares held Status of Number of
Shareholder shareholder the end of the
(%) the reporting with sales without sales shares shares
reporting
period restrictions restrictions
period
Domestic
Lu Zhongfang 41.36% 2,550,549,260 0 2,550,549,260 0 Pledged 1,357,543,359
natural person
Domestic
Li Yongxin 18.35% 1,131,415,121 0 1,131,070,121 345,000 Pledged 599,036,641
natural person
Wang Domestic
13.83% 852,885,418 639,664,063 213,221,355 Pledged 381,793,884
Zhendong natural person
Beijing
Aerospace Domestic
Industry non-state-
2.24% 137,937,489 -123,342,988 0 137,937,489
Investment owned legal
Fund(Limited person
Partnership)
Beijing Offcn 1.30% 80,000,000 0 80,000,000
58
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Future Domestic
Information non-state-owned
Consulting legal person
Center(Limited
Partnership)
Domestic
Zhou Xiayun 1.28% 78,848,640 0 78,848,640 Pledged 69,000,000
natural person
Domestic
Zhou Hui 1.16% 71,436,520 -841,400 0 71,436,520 Pledged 37,000,000
natural person
Beijing Kerui
Venture Domestic
Investment non-state-owned 0.89% 54,887,323 -34,230,400 0 54,887,323
Center(Limited legal person
Partnership)
Domestic
Zhou Li 0.78% 48,185,280 0 48,185,280
natural person
Beijing
Guangyin
Venture Domestic
Investment non-state-owned 0.64% 39,228,952 -25,126,944 0 39,228,952
Center legal person
(Limited
Partnership)
Strategic Investors or Ordinary
Legal Persons Become the Top 10
Shareholders with Ordinary Shares No
by the replacement of New Shares
(if any), (see Note 3)
The Company’s controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child
relationship. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership)
Description of the constitute persons acting in concert. Zhou Xiayun and Zhou Hui have a father-son relationship, and Zhou Xiayun and
Above-mentioned Shareholders’ Zhou Li have a father-daughter relationship. It is unknown whether there is an associated relationship among the
Relationship or Concerted Action above-mentioned other shareholders, and 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
above-mentioned shareholders’
No
entrusting/entrusted voting rights
and waiver of voting rights
Particulars of the existence of a
special repurchase account among
No
the top 10 shareholders (if any)
(see Note 11)
Description of top 10 shareholders with ordinary Shares without sales restrictions
59
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Number of ordinary shares without sales restrictions at the end of the reporting Type
Name of Shareholder
period Type Quantities
RMB
Wang Zhendong 213,221,355 ordinary 213,221,355
shares
Beijing Aerospace Industry RMB
Investment Fund (Limited 137,937,489 ordinary 137,937,489
Partnership) shares
Beijing Offcn Future Information RMB
Consulting Center(Limited 80,000,000 ordinary 80,000,000
Partnership) shares
RMB
Zhou Xiayun 78,848,640 ordinary 78,848,640
shares
RMB
Zhou Hui 71,436,520 ordinary 71,436,520
shares
Beijing Kerui Technology RMB
Innovation Investment Center 54,887,323 ordinary 54,887,323
(Limited Partnership) shares
RMB
Zhou Li 48,185,280 ordinary 48,185,280
shares
RMB
Beijing Guangyin Venture Capital
39,228,952 ordinary 39,228,952
Center (Limited Partnership)
shares
RMB
Hong Kong Securities Clearing
26,319,178 ordinary 26,319,178
Co., Ltd.
shares
RMB
Yang Shaofeng 24,062,680 ordinary 24,062,680
shares
Description of the relationship or
The Company’s controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child
concerted action among the top 10
relationship. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership)
shareholders of ordinary shares
constitute persons acting in concert. Zhou Xiayun and Zhou Hui have a father-son relationship, and Zhou Xiayun and
without restrictions, and between
Zhou Li have a father-daughter relationship. It is unknown whether there is an associated relationship among the
the top 10 shareholders of ordinary
above-mentioned other shareholders, and whether the above-mentioned shareholders belong to the parties acting in
shares without restriction and the
concert as stipulated in the Administrative Measures on Information Disclosure of Shareholding Changes in Listed
top 10 shareholders of ordinary
Companies.
shares
Description of the top 10 ordinary
shareholders participating in the No
margin trading(if any) (see Note 4)
60
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Whether the Company’s top 10 ordinary shareholders and top 10 ordinary shareholders without sales restrictions
conducted agreed repurchase transactions during the reporting period
□Yes No
The Company’s top 10 ordinary shareholders and top 10 ordinary shareholders without sales 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
There is no change in shares held by directors, supervisors and senior executives of the Company during the
reporting period. For details, please refer to the Annual Report of 2021.
Section V. Changes of controlling shareholder or actual controller
Changes of controlling shareholder in the reporting period
□Applicable Not applicable
Controlling shareholder did not change during the reporting period.
Changes of actual controller during the reporting period
□Applicable Not applicable
The actual controller did not change during the reporting period.
61
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Chapter 8 Preferred Shares
□ Applicable Not applicable
There were no preferred shares during the reporting period.
62
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Chapter 9 Corporate Bonds
□ Applicable Not applicable
63
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Chapter 10 Financial Statements
Section I. Auditor’s report
Has the semi-annual report been audited
□Yes No
The Company's semi-annual financial report has not been audited.
Section II. Financial statements
The unit of the statement in the financial notes: RMB
1. Consolidated balance sheet
Prepared by: Offcn Education Technology Co., Ltd.
June 30, 2022
Unit: RMB
Items June 30, 2022 January 1, 2022
Current assets:
Monetary funds 1,125,206,088.93 1,970,361,272.64
Settlement reserve
Borrowed funds
Transactional financial assets 2,174,249.66 346,726,621.74
Derivative financial assets
Notes receivable
Accounts receivable 40,173,740.04 40,374,842.27
Receivables financing
Prepayments 414,197.00 1,438,350.00
Premium receivable
Accounts receivable reinsurance
Reserve for reinsurance receivable contracts
Other receivables 210,245,390.38 219,501,061.83
Including:interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory
64
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets 17,253,093.26 36,959,129.80
Total current assets 1,395,466,759.27 2,615,361,278.28
Non-current assets:
Loans and advances
Debt investment 7,058,993.55
Other debt investment
Long-term receivables
Long-term equity investment 37,342,667.62 46,850,364.40
Other equity investment 130,400,000.00 130,400,000.00
Other non-current financial assets 30,260,000.00 30,260,000.00
Investment property 634,777,014.96 644,936,541.46
Fixed assets 1,719,895,941.92 1,770,372,338.85
Construction in progress 311,967,758.92 294,785,678.31
Productive biological assets
Oil and gas assets
Right-of-use asset 1,213,157,017.24 1,342,280,387.08
Intangible assets 852,916,432.28 866,627,549.85
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expenses 330,304,030.11 380,191,006.38
Deferred tax assets 558,948,716.74 424,027,271.38
Other non-current assets 1,646,592,927.46 1,652,164,395.78
Total non-current assets 7,566,430,227.63 7,689,822,247.42
Total assets 8,961,896,986.90 10,305,183,525.70
Current liabilities:
Short-term loan 1,251,590,694.36 3,152,945,812.59
Borrowing from Central Bank
Borrowings from banks and other financial
65
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
institutions
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 209,816,016.77 282,032,916.52
Deposit received
Contract liabilities 4,783,136,184.36 3,063,721,290.28
Financial assets sold for repurchase
Absorbing deposits and interbank deposits
Acting trading securities
Acting underwriting securities
Payroll payable 292,440,611.41 422,886,856.60
Taxes payable 24,445,602.43 12,566,751.84
Other payable 95,703,431.68 129,043,599.22
Including:interest payable
Dividend payable
Fees and commissions payable
Reinsurance amounts payable
Liabilities held-for-sale
Non-current Liabilities due within one year 547,313,044.67 531,876,007.31
Other current liabilities 143,495,196.47 91,925,853.39
Total current liabilities 7,347,940,782.15 7,686,999,087.75
Non-current liabilities:
Insurance contract reserve
Long-term loan
Bonds payable
Inc: Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability 524,208,664.69 635,691,184.87
Long-term payable
Long-term salary payable
66
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Estimated liabilities
Deferred income
Deferred tax liability 91,901,286.29 93,712,172.62
Other non-current liabilities
Total non-current liabilities 616,109,950.98 729,403,357.49
Total liabilities 7,964,050,733.13 8,416,402,445.24
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 13,200,000.00 13,200,000.00
Special reserve
Surplus reserves 45,000,000.00 45,000,000.00
General risk reserves
Undistributed profits -389,601,628.63 501,330,081.70
Total owners' equity attributable to the parent
997,887,043.87 1,888,818,754.20
company
Minority shareholders' equity -40,790.10 -37,673.74
Total owners' equity 997,846,253.77 1,888,781,080.46
Liabilities and owners' equity 8,961,896,986.90 10,305,183,525.70
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of accounting department: Luo Xue
2. Parent company balance sheet
Unit:RMB
Items June 30, 2022 January 1, 2022
Current assets:
Monetary funds 59,047,636.36 59,197,879.74
Transactional financial assets 1,573,219.32
Derivative financial assets
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Notes receivable
Accounts receivable 27,880,498.53 28,806,097.45
Receivables financing
Prepayments
Other receivables 21,702,687.86 20,699,731.33
Including:interest receivable
Dividend receivable
Inventory
Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets
Total current assets 108,630,822.75 110,276,927.84
Non-current assets
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 19,180,908,298.36 19,190,415,995.14
Other equity investment 130,400,000.00 130,400,000.00
Other non-current financial assets
Investment properties 365,089,891.26 370,687,463.01
Fixed assets 365,592,463.94 371,414,975.96
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
68
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Other non-current assets 1,618,411,145.38 1,618,391,145.38
Total non-current assets 21,732,970,902.51 21,753,878,683.06
Total assets 21,841,601,725.26 21,864,155,610.90
Current liabilities
Short-term loan 200,202,500.00 1,201,317,569.59
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 1,741,564.09 1,600,302.00
Other payable 2,330,378,609.03 1,307,916,006.49
Including:interest payable
Dividend payable
Liabilities held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 2,615,944,425.38 2,594,455,630.34
Non-current liabilities
Long-term loan
Bonds payable
Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability
Long-term payable
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 4,400,000.00 4,418,304.83
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Other non-current liabilities
Total non-current liabilities 4,400,000.00 4,418,304.83
Total liabilities 2,620,344,425.38 2,598,873,935.17
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 13,200,000.00 13,200,000.00
Special reserve
Surplus reserves 387,458,806.65 387,458,806.65
Undistributed profits -122,127,266.10 -78,102,890.25
Owners’ equity 19,221,257,299.88 19,265,281,675.73
Liabilities and owner’s equity 21,841,601,725.26 21,864,155,610.90
3. Consolidated income statement
Unit: RMB
Items First half year of 2022 First half year of 2021
I. Total operating income 2,226,704,962.11 4,855,998,263.50
Including:operating income 2,226,704,962.11 4,855,998,263.50
Interest income
Premium earned
Fee and commission
income
II. Total operating costs 3,270,304,589.23 5,085,316,223.70
Including:operating cost 1,609,828,642.68 2,684,951,238.24
Interest expense
Fee and commission
70
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
expenses
Surrender money
Net reimbursement
expenditure
Withdrawal of net
insurance liability contract reserves
Policyholder dividend
expenses
Reinsurance expenses
Taxes and surcharges 16,395,888.43 15,817,550.99
Sales expenses 701,766,026.73 975,972,472.83
Management expenses 472,072,638.67 607,894,812.80
R&D expenses 327,590,103.90 542,875,812.43
Financial expenses 142,651,288.82 257,804,336.41
Including:interest
57,847,785.61 126,914,597.79
expenses
Interest income 5,702,074.59 24,674,100.13
Add: other income 30,202,078.09 63,597,930.11
Investment income (Loss is
-2,230,731.92 61,423,487.06
listed with "-")
Including: investment
-9,507,696.78
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
-3,435,742.21 9,068,865.15
(Loss is listed with "-")
Expected credit loss(Loss
-7,994,247.21 -1,449,153.75
is listed with "-")
Asset impairment
loss(Loss is listed with "-")
71
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Asset disposal
58,877.23 -168,828.03
income(Loss is listed with "-")
III. Operating profit (Loss is listed with
-1,026,999,393.14 -96,845,659.66
"-")
Add: non-operating income 37,698.84
Less: non-operating expenses 4,372,388.19 349,054.25
IV. Total profit(The total loss is listed
-1,031,371,781.33 -97,157,015.07
with "-")
Less: Income tax expenses -140,436,954.64 7,582.67
V. Net profit (Net loss is listed with "-") -890,934,826.69 -97,164,597.74
i. Classified by business continuity
1.Net profit from continuing
-890,934,826.69 -97,164,597.74
operations (Net loss is listed with "-")
2.Net profit from
discontinued operations (Net loss is listed
with "-")
ii. Classification by ownership
1. Net profit attributable to
-890,931,710.33 -97,162,509.03
the owner of the parent company
2. Minority shareholders'
-3,116.36 -2,088.71
gains and losses
VI. Net other comprehensive income
Net other comprehensive income after
tax 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 the fair value of
other equity instruments
4.Changes in fair value of
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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 -890,934,826.69 -97,164,597.74
Total comprehensive income
-890,931,710.33 -97,162,509.03
attributable to owners of the parent
Total comprehensive income
attributable to minority -3,116.36 -2,088.71
shareholders
VIII. Earnings per share
i. Basic earnings per share -0.14 -0.02
ii.Diluted earnings per share -0.14 -0.02
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Items First half year of 2022 First half year of 2021
I. Operating income 427,884.19 7,278,174.71
Less:operating cost 5,597,571.75 5,632,943.03
Taxes and surcharges 3,158,855.34 2,217,898.16
Sales expenses
Management expenses 12,714,916.92 10,918,194.18
R&D expenses
Financial expenses 9,997,226.32 22,843,885.71
Including:interest expenses 10,049,430.40 22,918,691.67
Interest income 61,926.55 87,954.96
Add:other income 2,487.65 138,234.55
Investment income(Loss is
-7,773,599.75 1,330,502.21
listed with “-”)
Including: investment
income from associates and -9,507,696.78
joint ventures
Derecognition
income of financial assets
measured at amortized cost
Net exposure hedge income
(Loss is listed with “-”)
Fair value change income
-73,219.32 23,173.91
(Loss is listed with “-”)
Expected credit loss (Loss is
-1,157,663.12 -764,039.94
listed with “-”)
Asset impairment loss (Loss is
listed with “-”)
Asset disposal income (Loss is
-223,987.77
listed with “-”)
II. Operating profit(Loss is listed with
-40,042,680.68 -33,830,863.41
“-”)
Add: non-operating income
Less: non-operating expenses 4,000,000.00
III. Total profit(The total loss is listed
-44,042,680.68 -33,830,863.41
with “-”)
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Less:income tax expenses -18,304.83 -185,216.51
IV. Net profit(Net loss is listed with “-”) -44,024,375.85 -33,645,646.90
i. Net profit from continuing
-44,024,375.85 -33,645,646.90
operations(Net loss is listed with “-”)
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
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provisions of other debt
investment
5.Cash flow hedge reserve
6.Foreign currency
financial statement
translation difference
7.Other
VI. Total comprehensive income -44,024,375.85 -33,645,646.90
VII. Earnings per share:
ⅰ Basic earnings per share
ⅱ Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Items First half year of 2022 First half year of 2021
I. Cash flows from operating activities:
Cash received from the sale of goods and the
4,062,343,388.89 4,268,598,303.00
services
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Taxes refund
Other cash received related to other business
35,105,398.27 55,211,569.96
activities
Subtotal of cash inflow from operating activities 4,097,448,787.16 4,323,809,872.96
Cash paid for the purchase of goods and
451,088,975.41 965,750,873.57
services
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 2,255,984,012.14 3,545,895,731.44
Various taxes paid 58,136,972.58 192,705,882.06
Other cash paid for business activities 299,256,415.71 558,548,843.84
Subtotal of cash outflows from business activities 3,064,466,375.84 5,262,901,330.91
Net cash flow from operating activities 1,032,982,411.32 -939,091,457.95
II. Cash flows from investing activities:
Cash received from investment recovery 466,866,629.87 7,306,410,000.00
Cash received from investment income 7,285,958.41 220,793,791.47
Net cash received from disposal of fixed
assets, intangible assets and other long-term -168,828.03
assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received related to investing
activities
Subtotal of cash inflows from investing activities 474,152,588.28 7,527,034,963.44
Cash paid for the purchase and construction of
fixed assets, intangible assets and other 45,057,938.10 2,800,021,379.76
long-term assets
Cash paid for investment 118,700,000.00 5,584,550,000.00
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Net increase in pledge loans
Net cash paid for acquiring subsidiaries and
other business units
Other cash paid related to investing activities
Subtotal of cash outflows from investment
163,757,938.10 8,384,571,379.76
activities
Net cash flow from investing activities 310,394,650.18 -857,536,416.32
III. Cash flows from financing activities:
Cash received from investment absorption
Including:cash received from subsidiaries in
absorbing minority shareholders' investment
Cash received from loans 2,769,000,000.00
Other cash received related to fundraising
activities
Subtotal of cash inflows from financing activities 2,769,000,000.00
Cash paid for debt repayment 1,899,000,000.00 2,867,000,000.00
Cash paid for dividends, profits or interest
43,044,930.56 103,069,077.75
payments
Including:dividends and profits paid by
subsidiaries to minority shareholders
Other cash paid related to financing activities 245,945,251.57 392,129,451.92
Subtotal of cash outflows from financing activities 2,187,990,182.13 3,362,198,529.67
Net cash flow from financing activities -2,187,990,182.13 -593,198,529.67
IV. Effect of the changes of the exchange rate on
cash and the equivalents
V. Net increase in cash and cash equivalents -844,613,120.63 -2,389,826,403.94
Add: balance of cash and cash equivalents at
1,969,806,009.56 5,950,036,489.12
the beginning of the period
VI. Balance of cash and cash equivalents at the end
1,125,192,888.93 3,560,210,085.18
of the period
6. Parent company cash flow statement
Unit: RMB
Items First half year of 2022 First half year of 2021
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I. Cash flow from operating activities:
Cash received from the sale of goods and services
Tax refund
Other cash received related to business
1,022,771,128.40 3,566,724.42
activities
Subtotal of cash inflow from operating activities 1,022,771,128.40 3,566,724.42
Cash paid for the purchase of goods and services
Cash paid to and for employees
Various taxes paid 3,039,028.54 2,398,724.13
Other cash paid for business activities 11,565,274.64 354,011,436.05
Subtotal of cash outflows from business activities 14,604,303.18 356,410,160.18
Net cash flow from operating activities 1,008,166,825.22 -352,843,435.76
II. Cash flows from investing activities:
Cash received from investment recovery 1,500,000.00 1,600,000.00
Cash received from investment income 1,734,097.03 1,330,502.21
Net cash received from disposal of fixed
-223,987.77
assets, 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 3,234,097.03 2,706,514.44
Cash paid for the purchase and construction
of fixed assets, intangible assets and other 20,000.00
long-term assets
Cash paid for investment 1,600,000.00
Net cash paid for acquiring subsidiaries and
other business units
Other cash paid related to investing activities
Subtotal of cash outflows from investment activities 20,000.00 1,600,000.00
Net cash flows from investing activities 3,214,097.03 1,106,514.44
III. Cash flow from financing activities:
Cash received from investment absorption
Cash received from the loan 1,000,000,000.00
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Other cash received related to
fundraising activities
Subtotal of cash inflows from financing activities 1,000,000,000.00
Cash paid for debt repayment 1,000,000,000.00 570,000,000.00
Cash paid for dividends, profits or
11,164,499.99 22,726,044.41
interest payments
Other cash paid related to financing activities
Subtotal of cash outflows from financing activities 1,011,164,499.99 592,726,044.41
Net cash flow from financing activities -1,011,164,499.99 407,273,955.59
IV. Effect of the changes of the exchange rate on cash
and the equivalents
V. Net increase in cash and cash equivalents 216,422.26 55,537,034.27
Add:balance of cash and cash equivalents at
58,831,214.10 55,780,356.37
the beginning of the period
VI. Balance of cash and cash equivalents at the end
59,047,636.36 111,317,390.64
of the period
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
7. Consolidated statement of changes in owners’ equity
Current Amount
Unit: RMB
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Amount of the previous year
Unit: RMB
82
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
8. Statement of changes in owner's equity of the parent company
Current Amount
Unit: RMB
83
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Amount of the previous year
Unit: RMB
84
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Section III. General Information
1. Overview of the company
Offcn Education Technology Co.,Ltd. （ referred to as the “ company ” or “ the company ” ） was formerly known as Yaxia
Automobile Co.,Ltd. （ refered to as “ Yaxia Automobile ” ） . Yaxia Automobile, 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 Automobile was approved by the China Securities
Regulatory Commission (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 22 million RMB ordinary shares to the public and traded on the Shenzhen Stock
Exchange in August 2011. The controlling shareholder is Anhui Yaxia Industrial Co., Ltd. (referred to as “Yaxia Industrial”). On July
1, 2016, the company obtained the No. 91340200711040703A “Enterprise Business license of Enterprise Legal Person” issued by
the Wuhu Administration for Industry and Commerce. As of June 30, 2022, the Company's share capital is RMB 6,167,399,389.00.
In accordance with the resolution of the third extraordinary general meeting of shareholders of Yaxia Automobile in 2018 and
the resolution of the 24th meeting of the 4th Board of Directors, and approved by the China Securities Regulatory Commission's
Securities Regulatory Commission (2018) 1975, “On the approval of the major asset restructuring of Yaxia Automobile Co., Ltd. and
the issuance of shares to Lu Zhongfang and other assets of the approval of assets ” that Yaxia Automobile swapped all assets and
liabilities (“exchange-out assets”) other than the retained assets that do not constitute business as of the date of the assessment of the
benchmark for the equivalent portion (“exchange-in assets”) of 100.00% of the equity in Beijing Offcn Education Technology Co.,
Ltd. (referred to as "Offcn Ltd.") respectively held by 11 counterparts, including Li Yongxin. And the difference between the
exchange-out assets and the exchange-in assets was paid by issuing shares.
On December 27, 2018, Yaxia Automobile and the counterpart Yaxia Industrial signed the Confirmation of Delivery of Assets.
The closing date of the exchange-out assets is December 27, 2018. From the date of delivery, Yaxia Automobile, the counterparty
will complete the delivery obligations, regardless of whether the exchange-out assets (including but not limited to land use rights,
home ownership, intellectual property rights and qualifications, permits, other intangible assets, etc.) is actually completed. The
ownership of the assets belongs to Yaxia Industrial, and all the rights, obligations, responsibilities and risks related to the disposed
assets (including contingent liabilities, hidden liabilities) are owned and undertaken by Yaxia Industrial, which has the actual control
and disposal rights over the exchange-out assets, and Yaxia Automobile no longer has any actual rights. On the same day, Offcn Ltd.
completed the registration procedures for industrial and commercial changes on shareholder change matters. After the completion of
this alteration, Yaxia Automobile holds a 100.00% stake in Offcn Ltd., accordingly, the controlling shareholder and actual controller
of the company will be changed to Li Yongxin and Lu Zhongfang. On February 2, 2019, Yaxia Automobile changed its name and
changed its scope of business.
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.
Unified social credit code: 91340200711040703A
Company residence: Yaxia Automobile City, Yijiang North Road, Jiujiang District, Wuhu City, Anhui Province
Headquarters Address: Block B, Hanhua Century Mansion, No.23 Xueqing Road, Haidian District, Beijing
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
The nature of the industry: Education
Customer nature: Mainly natural persons
Scope of business: technology development, technical services, technology promotion, technology transfer ,technical consulting
and technology education and training (only branch to carry out this business)in the field of education and science ; offering
exhibition services, organizing cultural and artistic exchange activities (excluding performances), conference services, and consult
business management.(Projects subject to approval according to law can only carry out after acquiring approval from the relevant
departments)
The financial report was approved by the Board of Directors of the Company on August 31, 2022.
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 of preparation of financial statements
1. Basis of preparation
The financial statements are prepared on a going concern basis, according to the practical transactions, in accordance with the
relevant provisions of the Accounting Standards for Business Enterprises, 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 June 30, 2022. After using all available
information to make an assessment, it did not find any matters and situations that have significant doubts about the ability to continue
operations. It is reasonable to prepare financial statements based on a going concern basis.
Section V. The Company’s significant accounting policies and accounting estimates
Specific accounting policies and tips for accounting estimates:
None
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 Accounting
Standards for Business Enterprises and its application guidelines, interpretations, and other relevant regulations (collectively referred
to as "Enterprise Accounting Standards") issued by the Ministry of Finance, which truly and completely present the company's
financial position , financial performance,cash flows and other information for the year then ended.
In addition, the financial report compiled by reference to the listing and disclosure requirements of the disclosure provisions of
the Rules for the Information Disclosure and Compilation of Companies Publicly Issuing Securities NO.15:--General Provisions for
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Financial Report(Revised in 2014) of 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 from January 1 and ends on December 31.
3. Business cycle
The Company’s business cycle starts from January 1 and ends on December 31.
4. Recording currency
The Company adopts Renminbi (RMB) as their recording currency.
5. Business combinations
5.1 The accounting treatment of business combinations involving enterprises under common control
The company realize achieve 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 is 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 from company and the book value of the consideration the combination of payment
(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 acquirer ’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’s identifiable assets, liabilities and the fair value of contingent liabilities as well as the combination costs. If the
combination costs after reviews are still less than the fair value of identifiable net asset, the difference will be included into the
current profits and losses.
By step-by-step multiple transactions to achieve business combinations not under common control should be 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 and arising from changes
in the fair value of investment in other equity instruments held.
(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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 multiple transactions to the loss of control of subsidiaries
(1) Determine whether the various transactions in the process of step-by-step disposal of equity to the loss of control of
subsidiaries belong to the "package deal" principle
Generally transactions in stages are treatment as a package deal in accounting if the transaction terms, conditions, and economic
impact of 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) Each transaction in the process of disposing of the equity in stages to the loss of control of the subsidiary belongs to the
"package deal" accounting method
If the disposal of various transactions in the equity investment of the subsidiary until the loss of control belongs to a package of
transactions, each transaction should be accounted for as a transaction that disposes of the subsidiary and loses control; however,
before losing control, the difference between the price and the share of the subsidiary's net asset share corresponding to the disposal
of the investment shall be recognized as other comprehensive income in the consolidated financial statements, and shall be
transferred to the profit and loss for the period when 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 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) Each transaction in the process of disposing of equity in steps to the loss of control of a subsidiary is not an accounting
treatment of “package deal”.
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 asset to the disposal 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 disposing of the loss of control over the investment in a subsidiary, 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 have been calculated by the original
subsidiary from the date of purchase based on the original shareholding ratio is included in the Investment income. Other
comprehensive income related to the equity investment of the original subsidiary shall be converted to current investment income or
retained earnings when control is lost.
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6. Preparation of consolidated financial statements
Consolidated financial statements are based on the Parent ’ s and its subsidiaries ’ financial statements in accordance with
Accounting Standards for Business Enterprises No.33 – Consolidated financial statement.
7. Classification of joint arrangement and accounting methods of joint operations
7.1 Joint venture arrangements classification and Co-operation accounting treatment
A joint arrangement refers to an arrangement jointly 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 economic activity as required in the contract, and only exists when all
investors sharing such control related to the activity 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, relating to the arrangement. A joint venture is a joint
arrangement whereby the joint ventures only have the rights to the net assets under this arrangement.
7.2 Accounting treatment of joint venture arrangement
A joint operator shall recognize the following items in relation to its interest 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.
8. Criteria for the determination of cash and cash equivalents
The term "cash" of 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 acquisition date) and highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
9. Foreign currency transaction and foreign currency statement translation
9.1 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
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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 using the spot exchange rate at the balance sheet date; all items
except for 'undistributed profits' of the owner's equity are translated at the spot exchange rate on the transaction date. The revenue
and expenses in the income statement are translated using the approximate rate of the spot exchange rate on the transaction date.
Differences arising from the translation of foreign currency financial statements are recognized as the other comprehensive income.
10. Financial instruments
10.1 Recognition and derecognition of financial instruments
The company recognizes a financial asset or a financial liability when it becomes one party to the contractual provisions of the
instrument.
All regular ways purchasing or selling of financial assets are recognized and derecognized on a trade date basis. Regular way
purchasing or selling, means that receive or deliver financial assets within the time limit stipulated by regulations or common
practices, as agreed in the terms of the contract. Trade date, is the date the company promises to buy in or sell out the financial assets.
The company derecognize the financial assets(either a part, or a part of a similar group),which is writing it off the balance sheet,
if following conditions are met:
(1) Expiration of the right to receive cash flow from financial assets;
(2) The right to receive cash flow from financial assets has been transferred, or bear the obligation to pay all cash received to
third party in time due to “ Hand-Over arrangement ” ; and (a) all risks and benefits of the financial assets has been transferred
virtually, or (b) though not all risks and benefits of the financial assets has been transferred, but lose 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 has initially been classified as follows: financial assets at amortized cost, and financial assets at
fair value through other comprehensive income, financial assets at fair value through profit or loss. Subsequent measurement of
financial assets depends on its categories.
The company's classification of financial assets is based on the company's business model and its characteristics of cash flow.
(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 flow. The contractual terms of the financial asset stipulate that
the cash flow generated on a specific date is only the payment of the principal and the interest based on the outstanding principal
amount. For such financial assets, using effective interest rate method and subsequently measure at amortized cost, gains or losses
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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 investment at fair value through other comprehensive income when following
conditions are met: the company’s business model for managing financial assets targets both the collection of contractual cash flows
and the sale of financial assets; The contractual terms of the financial asset stipulate that the cash flow generated on a specific date is
only the payment of the principal and the interest based on the outstanding principal amount. Such financial assets subsequently
measure at fair value. The discount or premium is amortized using the effective interest method and recognized as interest income or
expense. Except that the impairment loss and the exchange differences of foreign monetary financial assets are recognized as profit
or loss for the period, the changes in the fair value of such financial assets are recognized in other comprehensive income. The
accumulated gains or losses is transferred to profit or loss until it’s 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 only the related dividend income is recognized in profit or loss. The accumulated gains or losses is
transferred to retained earnings until it’s derecognized.
(4) Financial assets at fair value through profit or loss
Any financial assets that are not held in one of the two business models 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.For such financial assets, 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 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 assets 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 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 transaction expense is directly recognized in current profit or loss. The related transaction
expense 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
Based on amortized cost, subsequently measure it using the effective interest rate method.
(2) Financial liabilities at fair value through profit or loss
It includes financial liabilities (including derivatives that are financial liabilities) and financial liabilities that are designated 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 of the financial assets and financial liabilities offset each
other shall be shown in the balance sheet: there is a legal right to offset the recognized amount, and such legal right is currently
enforceable; Plans to liquidate the financial asset on a net basis or simultaneously liquidate the financial liability.
10.5 Impairment of financial assets
Based on expected credit losses, the Company undertakes impairment treatment and confirms loss provisions of financial assets
at amortized cost, debt instrument investments at fair value through other comprehensive income and financial guarantee contracts.
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 and whose changes are accounted for in 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 Note IX “Risks Associated With Financial Instruments” of this report
for details.
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:
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Stage 1: credit risk has not increased significantly since initial recognition.
For the financial instrument at this stage, the enterprise 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 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 enterprise 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 enterprise shall calculate 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 enterprise shall calculate the interest income at its
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 enterprise 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 its 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 enterprise determine financial instruments, the lower the risk of default in the borrowers in the short-term ability to fulfill
its obligation to pay the contract cash flow is very strong, and even the economic situation and business environment in a long term
adverse change, also will not necessarily reduce the borrower's ability to fulfill its obligation to pay the contract cash flow, then the
financial instruments can be seen as a lower credit risk.
(3) Receivables and lease receivables
The company for the Accounting Standards for Enterprises no. 14 - Revenues, excluding provisions by major financing
elements (including according to the criteria does not consider no more than a year of financing elements) in the contract of
receivables, the simplified model of credit losses, always in accordance with the expected amount of credit losses throughout the
duration of measuring its losses.
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 chooses to adopt 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 asset transfer
If almost all the risks and rewards of ownership of financial assets have been transferred to the transferee, the financial assets are
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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
financial assets are abandoned, derecognize the financial assets and recognize the assets and liabilities; If not abandoned, 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 lower of
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 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 information at a reasonable cost, the company chooses to
calculate the credit loss individually. When a single financial asset cannot evaluate the expected credit loss information at a
reasonable cost, the company will divide the accounts receivables into several combinations 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:
Combination Type The basis for determining 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, combines
the current situation and the forecast of future economic conditions, and prepared a comparison table between the age of accounts
receivable and the expected credit loss rate for the entire duration to calculate the expected credit loss.
13. Receivables financing
If a financial asset meets the following conditions at the same time, it is classified 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 contract cash flows and sell
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financial assets; The contractual terms of the financial asset stipulate that the cash flows generated on a particular date are only
payments of principal and interest based on the amount of outstanding principal.
The company will transfer the receivables held in the form of discount or endorsement, and this type of business is more
frequent and the amount involved is larger whose management business model is essentially to receive both contract cash flows and
sell.In accordance with the relevant provisions of financial instruments. The company classifies them as financial assets that measure
changes at fair value and account for changes in 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 losses of other receivables individually or in combination.
When individual financial assets can expect credit losses at a reasonable cost evaluation of information, the company choose
individual credit losses, when individual financial assets not credit losses at a reasonable cost evaluation of information, the company
on the basis of credit risk characteristics could be divided into several other receivables portfolio, based on the combination of
computing expected credit losses, determine the basis of a combination is as follows:
Type Basis
Combination 1 Amounts due from related parties
Combination 2 Staff receivables, deposits, security deposits
Combination 3 Receivables other than Portfolio 1, Portfolio 2
For other receivables divided into portfolios, the company calculates the expected credit loss through default risk exposure and
expected credit loss rate in the next 12 months or the whole duration, by referring to the historical credit loss experience and
combining the current situation with the forecast of future economic conditions.
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, consumed materials and supplies in the production process or providing services of the Company.
15.2 Measurement of inventories transferred out
Finished goods are accounted for using the weighted average at the end of the month method upon issuance.
15.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories.
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 of goods 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
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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 at the time of completion, the estimated selling expenses and
related taxes;on the balance sheet date, some of the same inventory has if the contract price is agreed and there is no contract price in
other parts, the net realizable value is determined separately and compared with its corresponding cost to determine the amount of the
provision for inventory depreciation or reversal.
15.4 Inventory count system
The perpetual inventory system is maintained for stock 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.
16. Contract asset
1. Confirmation methods and standards 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.
2. Determination methods and accounting treatment methods of expected credit loss of contract assets
The company adopts the simplified expected credit loss model for contract assets, regardless of whether it contains major
financing components, that is, the loss reserves are always measured according to the amount of expected credit losses during the
entire lifetime, and the resulting increase or reversal of the loss reserves are included in the current profit and loss 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.
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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.
18. Assets held-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 and a firm purchase commitment
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 carrying amount). 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 was 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 proportion of the book value of various non-current assets measured in the disposal group
according to the application of this standard measurement. Proportionately deducts its book value.
If the fair value of the non-current assets held for sale on the balance sheet date is less than the net value of the selling expenses,
the amount of the previous write-down shall be restored and the impairment of assets recognized after being classified as held for
sale shall be made. 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 fair value of the disposal group held for
sale on the subsequent balance sheet day is increased, the net amount after the sale expense is increased, the amount of the previously
written down amount shall be restored, and shall apply to the measurement requirements of this standard after being classified as held
for sale. The impairment loss of assets confirmed by non-current assets is reversed within the amount, and the reversed amount is
included in the current profit or loss. The carrying amount of the goodwill that has been eliminated and the non-current assets
applicable to the measurement of this standard will not be reversed if it is recognized before the assets are classified as held for sale.
The subsequent reversal of the asset impairment loss confirmed by the disposal group held for sale shall be based on the proportion
of the book value of various non-current assets measured and applied in the disposal group in addition to goodwill, and shall increase
its book value proportionately.
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
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sale.
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 investment
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 not 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 formation of enterprise merger: if the purchase price 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.
Under the cost method, a long-term equity investment is measured at initial investment cost . Except for cash dividends or
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profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the
investment, 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 time whether long-term investment in accordance with the relevant policy
considerations of the declined value of asset impairment.
For checking by the equity method, the initial investment cost of the long-term equity investment is not adjusted if it is greater
than the fair value share of the net identifiable assets of the investee in the 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 balance is
charged to 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 confirmation of the invested entity shall be accorded to the net profits and
losses of the share, in order to obtain the invested entity, when the fair value of the identifiable assets such as basis, according to the
company's accounting policies and accounting periods, and offset and associated enterprises and joint ventures between insider
trading profits and losses according to the shareholding calculation belongs to part of the investment enterprise (but insider trading
loss belongs to the asset impairment loss, should be a full confirmation), net income of the invested entity after adjustment for
confirmation. According to the profit or cash dividend declared to be distributed by the investee, calculate the share payable, and
correspondingly reduce the book value of the long-term equity investment. 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
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 by 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
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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 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 property
Measurement model of Investment properties
Measured by cost method
Depreciation or amortization method
23.1 The Company ’s investment properties include a land use right that is leased out; a land use right held for transfer upon
capital appreciation; and a 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 asset
24.1 Recognition, measurement and depreciation criteria for fixed assets
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.
24.2 Deprecation methods for each category of fixed assets
Depreciation Residual value Annual depreciation
Category Deprecation methods
period (years) rate (%) rate (%)
Houses and buildings Straight-line depreciation method 20-40 5 2.38-4.75
Decoration of fixed assets Straight-line depreciation method 4-10 -- 10.00-25.00
Transportation equipment Straight-line depreciation method 4 5 23.75
Electronic equipment Straight-line depreciation method 3-5 5 19.00-31.67
Office equipment Straight-line depreciation method 3-5 5 19.00-31.67
24.3 Basis of asserting, valuation method and depreciation method for fixed assets acquired under financing leases
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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) When the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale, the borrowing
costs stop capitalization.
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
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None
28. Oil and gas assets
None
29. Right-of-use assets
Except for short-term leases and leases for which the underlying asset is of low value, at the commencement date of the lease,
the Company recognizes a right-of-use assets.
The Company measures the right-of-use assets at cost. The cost of the right-of-use assets comprises:
29.1 The amount of the initial measurement of the lease liabilities.
29.2 Any lease payments made at or before the commencement date, less any lease incentives.
29.3 Any initial direct costs incurred by the Company.
29.4 An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on
which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. The
aforementioned costs are incurred for the production of inventories, and the Accounting Standards for Business Enterprises No. 1 -
Inventories shall apply.
The company recognizes and measures the costs mentioned in item 4 above in accordance with the ASBE No. 13 -
Contingencies.
Initial direct costs are the incremental costs incurred to achieve the lease. Incremental costs are those costs that would not have
been incurred if the enterprise had not acquired the lease.
Right-of-use assets are depreciated by the Company in accordance with the ASBE No.4 - Fixed Assets. If the Company is
reasonably certain, that the lease will transfer ownership of the underlying asset to the Company by the end of the lease term, the
right-of-use assets is depreciated from the commencement date to the end of the useful life of the underlying asset. Otherwise, the
right-of-use assets is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use assets or
the end of the lease term.
The Company applies ASBE No. 8 - Impairment of Assets, to determine whether the right-of-use assets are impaired and
perform accounting treatment to identified impairment loss.
30. Intangible assets
(1) Valuation method, service life and impairment test
1. Intangible assets, including land use rights etc. are measured at costs initially.
2. Intangible assets with finite useful lives are amotized 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:
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Item Useful life(Year)
Land use rights 40
Software use rights 5-10
Trademark rights 10
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 are tested for impairment
annually, regardless of whether there is any indication of impairment.
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.
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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 prepaid expenses
Long-term prepaid expenses 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 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
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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 organization 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. During the accounting period when the company ’ s employees provide services, the amount
calculated in accordance with the above social security provisions shall be recognized as liabilities, and recorded into the current
profit and loss or the cost of relevant assets.
35. Lease liabilities
Except for short-term leases and leases for which the underlying asset is of low value, at the commencement date of the lease,
the Company recognizes right-of-use assets and lease liabilities.
The lease liabilities are initially measured at the present value of the lease payment not yet paid on the start date of the lease
term.
Lease payments include the following five items:
35.1 Fixed payments and in-substance fixed payments, if there is a lease incentive, deduct the amount related to the lease
incentive.
35.2 Variable lease payments that depend on an index or rate, which is determined at the time of initial measurement based on
the index or rate at the commencement date of the lease term.
35.3 Exercise price for a purchase option provided that the lessee is reasonably certain that the option shall be exercised.
35.4 Payments for exercising the option to terminate the lease provided that the lease term reflects that the lessee shall exercise
the option to terminate the lease option.
35.5 Estimated payments due based on guaranteed residual value provided by the lessee.
When calculating the present value of lease payments, the Company adopts the interest rate implicit in the lease as the discount
rate; if the interest rate implicit in the lease cannot be determined, the Company adopts the incremental borrowing rate as the discount
rate.
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
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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 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.
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(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.
38. Other financial instruments such as preferred stocks and perpetual bonds
None
39. Income
Accounting policies applied in revenue recognition and measurement
39.1 Recognition of income
The company's income is mainly education and training income.
The company recognizes the income upon fulfillment of its performance obligations within the contract, that is, when the client
obtains control of the relevant goods.
39.2 The company classifies the nature of the relevant performance obligations in accordance with the relevant provisions of the
income standards to be "performance obligations performed within a specified period " or "performance obligations performed at a
specified time point ", and income recognition is carried out in accordance with the following principles.
(1) The performance obligations are to be performed within a specified period once the company meets one of the following
conditions:
① The client obtains and consumes the economic benefits while the company is fulfilling the performance obligations;
② The client can control assets under construction while the company is still in the process of fulfilling the performance
obligations.
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③ The asset generated while the company is in the process of performing the contract are indispensable, and the company has
the right to collect partial payments for the cumulative performance obligations that have been fulfilled so far within the contract
period.
If the performance obligations are performed within the specified period, the company will recognize the income within this
period in accordance with the progress of the contract’ s performance, except that the performance progress cannot be reasonably
determined. The company considers the nature of the goods and adopts the output method or input method to determine the
appropriate performance progress.
(2) If the performance obligations are performed at the specified time point, the company will recognize the income at the time
when the client obtains control over the relevant goods.
In judging whether the client has obtained control over goods or services, the company shall consider the following signs:
① The company has the current right to collect payment for the goods, that is, the customer has the current obligations to pay
for the goods.
② The company has transferred legal ownership of the goods to the customer, that is, the customer already has the legal
ownership of the goods.
③ The company has transferred physical possession of the goods to the customer, that is, the customer has taken physical
possession of the goods .
④ The company has transferred the main risks and rewards of the ownership of the goods to the customer, that is, the customer
has obtained the main risks and rewards of the ownership of the goods.
⑤ The customer has accepted the goods.
⑥ Other signs that the customer has obtained control of the product.
The specific policy of the company's income recognition:
The company's income mainly includes ordinary class income and agreement class income. The income from face-to-face
training of ordinary classes is recognized as income for all pre-collected training fees upon completion of training services; income
from online training of ordinary classes is recognized on a straight-line basis during the effective period of service provision. The
non-refundable portion of the income from the agreement class is recognized as revenue when the training service is completed; the
refundable portion is recognized as revenue when the non-refundable conditions are met according to the agreement.
39.3 Measurement of income
The company shall measure revenue based on the transaction price allocated to each individual performance obligation. When
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,
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but the transaction price including the variable consideration should not exceed the amount of the accumulated recognized revenue
that it is very likely that a significant reversal not occur when the relevant uncertainty is eliminated. When an enterprise assesses
whether it is very likely that a significant reversal of accumulated recognized revenue will not occur, it should also consider the
possibility of reversal of revenue and its proportion.
(2) Major financing components
When there is a significant financing component in the contract, the company shall determine the transaction price based on the
amount payable in cash when the customer is assumed to obtain control of the goods. The difference between the transaction price
and the contract consideration shall be amortized using the effective interest method during the contract period.
(3) Non-cash consideration
If the customer pays a 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 cannot be reasonably estimated, the company determines the
transaction price indirectly by referring to the stand-alone selling price of the goods it promises to transfer to the customer.
(4) Consideration payable to customers
For the consideration payable to the customer, the consideration payable shall be offset by the transaction price, and the current
income is offset at the later point when the relevant income is recognized and the customer's consideration is paid, except when the
customer's consideration is payable to obtain other clearly distinguishable products 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 exceeding
amount shall be offset against the transaction price. If the fair value of the clearly distinguishable goods obtained from the customer
cannot be reasonably estimated, the enterprise shall offset the consideration payable to the customer in full from the transaction price.
Differences in accounting policies for revenue recognition due to different business models
None
40. Government subsidy
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 a transfer of a 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 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
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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 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. Deferred income tax assets and the deferred income tax liabilities
41.1 According to the difference between book value of the assets and liabilities and the tax base (for the items that have not
been confirmed as assets and liabilities, the difference refers to the difference between base of tax, which can be confirmed according
to the provisions of tax law, and the book number), deferred income tax assets and deferred income tax liabilities shall be measured
and confirmed according to applicable tax rate during the period when the asset is expected to recover or the debt is expected to pay
off.
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 in the future sufficient taxable income is
likely to be obtained to offset the deductible temporary difference, confirm the unconfirmed deferred income tax assets in previous
accounting periods.
41.3 On the balance sheet date, the review of the book value of the deferred income tax assets should be conducted, and if in the
future sufficient taxable income to offset the benefit of the deferred income tax assets can’t be obtained, the write-downs on the book
value of the deferred income tax assets should be applied. If it is likely to obtain sufficient taxable income, return of the amount of
write-downs should be applied.
41.4 The Company's current income tax and deferred income tax are recorded into the profits and losses of the current as
income tax expenses. But it 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
As the lessor, the company shall, in each period of the lease term, adopt the straight-line method or other systematic and
reasonable method to recognize the lease receipts from operating leases as rental income. Capitalize the initial direct expenses related
to operating leases, amortize them on the same basis as rental income recognition during the lease term, and include them in the
current profit and loss of different period.
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For the fixed assets in the operating lease assets, the company shall adopt the depreciation policy for similar assets to accrue
depreciation; for other operating lease assets, it shall use a systematic and reasonable method for amortization according to the
enterprise accounting standards applicable to the assets. In accordance with the provisions of ASBE No. 8 - Impairment of Assets,
the company determines whether the operating lease assets are impaired and performs corresponding accounting treatment.
42.2 Accounting treatment of financial leases
As the lessor, on the commencement date of the lease term, the Company recognizes the financial lease payments receivable
for the financial lease, derecognizes the financial lease assets, and calculates and recognizes the interest income in each period of the
lease term according to the fixed periodic interest rate.
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
(2) Changes in important accounting estimates
□ Applicable Not applicable
45. Others
Section IV. Taxation
1. Major categories of taxes and tax rates
Category of tax Basis of tax computation Tax rate
Taxable revenue for sales of goods and
Value-added tax 3%、5%、6%
supply of services
City maintenance and construction tax Circulation Taxes payable 5%、7%
Corporate income tax Taxable income 15%、20%、25%
Education surcharge Circulation Taxes payable 3%
Local education surcharge Circulation 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. 20%
4. Ningguo Yaxia Motor Vehicle Driver Training School (Co.,
20%
Ltd.)
5. Huangshan Yaxia Fudi Automobile Sales Services Co., Ltd. 20%
6. Chaohu Yaxia Kaixuan Automobile Sales Service Co., Ltd. 20%
7. Bozhou Yaxia Motor Vehicle Driver Training School Co., Ltd. 20%
8. Suzhou Bokai Automobile Sales Service Co., Ltd. 20%
9. Shanxi Offcn Education Technology Co. Ltd. 25%
10. Chengdu Offcn Future Education Training School Co. Ltd. 25%
11. Lu’an Yazhong Real Estate Information Consulting Co., Ltd. 25%
12. Lu’an Zhongke Real Estate Information Consulting Co., Ltd. 25%
13. Sichuan Offcn Luming Culture Media Co., Ltd. 25%
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
14. Zhejiang Offcn Education Technology Co. Ltd. 20%
15. Taizhou Offcn Future Enterprise Management Consulting
20%
Co., Ltd.
16. Wenling Offcn Information Consulting Co., Ltd. 20%
17. Beijing Offcn Xinzhiyu Online Technology Co., Ltd. 20%
18. Hulun Buir Hailar Offcn Education Information Consulting
20%
Co., Ltd.
19. Xilinhot Offcn Future Education Consulting Co., Ltd. 20%
20. Yueqing Lecheng Offcn Training Center Co., Ltd. 20%
21. Jiaozuo Offcn Future Education Service Co., Ltd. 20%
22. Xinzheng Offcn Cultural Communication Co., Ltd. 20%
23. Chongqing Jiangbei Offcn Vocational Examination Training
20%
Co., Ltd.
24. Nanning Offcn Future Education Consulting Co., Ltd. 20%
25. Baiyin Offcn Future Education Consulting Co., Ltd. 20%
26. Beijing Xinde Zhiyuan Enterprise Management Consulting
20%
Co., Ltd.
27. Nanjing Huiyue Hotel Management Co., Ltd. 20%
28. Shandong Kunzhong Real Estate Co., Ltd. 20%
29. Sanmenxia Offcn Cultural Communication Co., Ltd. 20%
30. Liaoning Offcn Academic & Cultural Exchange Co., Ltd. 20%
31. Liaoning Offcn Education Technology Co., Ltd. 25%
32. Shandong Offcn Education Technology Co., Ltd. 25%
33. Jilin Changyi Offcn Education Training School Co., Ltd. 20%
34. Yuxi Offcn Training School Co., Ltd. 20%
35. Tonghua Offcn Training School Co., Ltd. 15%
36. Hunan Lightsalt Offcn Education Technology Co., Ltd. 20%
37. Tianjin Hexi Offcn Training School Co., Ltd. 20%
38. Chengdu Offcn Education Training School Co., Ltd. 20%
39. Shandong Zhuoda Business Management Co., Ltd. 20%
40. Liaoning Zhongcheng Real Estate Development Co.,Ltd. 20%
41. Wuhu Offcn Training School Co. Ltd. 20%
42. Wuhan Guoshang Human Resource Service Co., Ltd. 25%
43. Jinan Zhangqiu Offcn Training School Co.,Ltd. 20%
44. Mengzi Offcn Education Training Co. Ltd. 20%
45. Beijing Offcn Technology Development Co. Ltd. 20%
46. Shanghai Offcn Education Technology Co. Ltd. 20%
47. Guangzhou Offcn Smart Education Technology Co. Ltd. 20%
48. Pingshan Offcn Education Technology Co. Ltd. 20%
49. Shandong Offcn Education Training School Co. Ltd. 20%
50. Lanzhou Offcn Education Training School Co. Ltd. 20%
51. Anshan Tiedong Offcn Education Training School Co., Ltd. 20%
52. Diqing Offcn Training School Co., Ltd. 20%
53. Dali Offcn Education Training School Co., Ltd. 20%
54. Harbin Nangang Offcn Education Training School Co., Ltd. 20%
55. Nujiang Offcn Training School Co., Ltd. 20%
56. Weixi Offcn Education Training School Co., Ltd. 20%
57. Beijing Offcn Century Education Technology Co., Ltd. 25%
58. Tianjin Jinnan Offcn Lexue Training School Co., Ltd. 20%
2. Policies and basis of the important tax incentives
2.1 Value-added tax
(1) According to “Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the VAT
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Exemption Policy for Small-scale VAT Taxpayers” (Cai Shui [2021] No. 11), in order to further support the development of small
and micro enterprises, from April 1, 2021 to December 31, 2022, small-scale value-added taxpayers with monthly sales of less than
RMB 150,000 (including the principal) are exempt from value-added tax. The Company’s subordinate branches and subsidiaries that
meet the exemption conditions are exempt from VAT.
(2) According to “Announcement of the Ministry of Finance and the State Administration of Taxation on the VAT Exemption
Policy for Small-scale VAT Taxpayers” (Cai Shui [2022] No. 15), in order to further support the development of small and micro
enterprises, from April 1, 2022 to December 31, 2022, small-scale VAT taxpayers shall be exempted from VAT for taxable sales
income subject to 3% levy rate, and suspended for prepaid VAT items subject to 3% advance levy rate.. The Company’s subordinate
branches and subsidiaries that meet the exemption conditions are exempt from VAT.
(3) According to “ 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” (Cai
Shui [2012] No. 15), the VAT taxpayers in 2011 for the first purchase of special equipment for the VAT tax control system
(including separate ticket machines) after December 1 (including the same below), the VAT invoice obtained from the purchase of
special equipment for the VAT tax control system can be used for the full amount of the VAT payable is deducted (the deduction is
the total amount of price and tax), and the deduction that is insufficient can be carried forward to the next period to continue the
deduction. The VAT taxpayer's technical maintenance fee paid after December 1, 2011 (excluding the technical maintenance fee paid
before November 30, 2011) can be added to the value of the technical maintenance fee invoice issued by the technical maintenance
service unit. The full amount of the tax payable is deductible, and those that are insufficient for deduction can be carried forward to
the next period to continue the deduction. The Company and the qualified subordinate branches and subsidiaries should deduct the
VAT payable amount in full according to the regulations.
(4) In accordance with the Announcement of the Ministry of Finance, the State Administration of Taxation and the General
Administration of Customs on Relevant Policies for Deepening the Reform of Value-added Tax (Cai Shui [2019] No. 39) and the
Announcement of the Ministry of Finance, the State Administration of Taxation on Relevant Value-added Tax Policies for Promoting
the Relief and Development of Difficult Industries in the Service Sector (Cai Shui [2022] No. 11), from April 1, 2019 to December
31, 2022, taxpayers in the production and living service industries are allowed to deduct 10% of the input tax in accordance with the
current period. The Company’s qualified subordinate branches and subsidiaries will additionally deduct the value-added tax payable
according to this preferential policy.
2.2 Education surcharge, local education surcharge
According to the Notice of the Ministry of Finance and the State Administration of Taxation on Expanding the Exemption Scope
of Government Funds (Cai Shui [2016] No. 12), starting from February 1, 2016, additional education fees will be exempted, The
scope of the local education supplement and water conservancy construction fund should be expanded by the current obligees who
pay monthly taxes or monthly sales or turnover of not more than RMB 30,000 (quarterly taxation of quarterly sales or turnover of not
more than RMB 90,000). To the obligor who pays the monthly sales or turnover of not more than RMB 100,000 (the quarterly sales
or turnover of the quarterly tax does not exceed RMB 300,000). Subordinate branches and subsidiaries of the Company that meet the
conditions for exemption are exempted from education surcharge and local education surcharge.
2.3 Corporate income tax
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(1) On October 21, 2020, Offcn Co., Ltd. passed the high-tech enterprise certification organized by the Beijing State Taxation
Bureau, Beijing Local Taxation Bureau, Beijing Finance Bureau, and Beijing Science and Technology Commission, and obtained the
high-tech enterprise certificate numbered GR202011002730. The certificate is valid from October 21, 2020 to October 20, 2023.
Offcn Co., Ltd. and its subordinate branch calculate and pay corporate income tax at a tax rate of 15%.
(2) On September 28, 2021, Tonghua Offcn Training School Co., Ltd., a subsidiary of the Company, was recognized by the Jilin
Provincial Taxation Bureau of the State Administration of Taxation, the Jilin Provincial Department of Finance, and the Jilin
Provincial Department of Science and Technology, and obtained the high-tech enterprise certificate No. GR202122000472. The
certificate is valid. From September 28, 2021 to September 27, 2024, Tonghua Offcn Training School Co., Ltd. calculates and pays
corporate income tax at a rate of 15%.
(3) According to the Announcement of the State Administration of Taxation on Matters Concerning the Implementation of
Income Tax Preferential Policies Supporting the Development of Small and Low-profit Enterprises and Individual Industrial and
Commercial Households (State Administration of Taxation Announcement No.8 [2021]), from January 1, 2021 to December 31,
2022, the annual taxable income of small and low-profit enterprises does not exceed RMB 1 million, which will be included in the
taxable income at a reduced rate of 12.5%, and the enterprise income tax will be paid at the tax rate of 20%. Qualified subsidiaries of
the Company apply this policy to calculate and pay corporate income tax.
(4) According to “Notice on Clearly Enjoying the Notice issued by the Party Committee of the Inner Mongolia Autonomous
Region and the People’s Government of the Inner Mongolia Autonomous Region on the Scope of Small and Low-Profit Enterprises
Exempted from Enterprise Income Tax and Partial Preferential Policies for Local Sharing” (Nei Cai Shui [2019] No. 227), for small
and micro-profit enterprises with an annual taxable income of not more than RMB 1 million, according to “Announcement of the
State Administration of Taxation on The Implementation of Preferential Policies for Supporting the Development of Income Tax
Policies for Small and Micro-profit Enterprises and Individual Industrial and Commercial Households” (SAT Announcement [2021]
No. 8), the annual taxable income is reduced by 12.5% to the taxable income, and after the enterprise income tax is calculated at a
rate of 20%, it is then issued in accordance with the Notice issued by the Party Committee of the Inner Mongolia Autonomous
Region and the People’s Government of the Autonomous Region (Nei Dang Fa [2018]). No. 23) stipulates that the local sharing part
(i.e. 40% part) of enterprise income tax is exempted. Eligible subsidiaries of the Company apply this policy to the calculation of
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 35,782.45 62,362.45
Cash on bank 1,010,912,728.84 1,756,140,584.62
Other monetary funds 114,257,577.64 214,158,325.57
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Total 1,125,206,088.93 1,970,361,272.64
Other information
(1) Other monetary funds mainly include the balances of third-party payment platforms such as POS, Tenpay,
and Alipay.
(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 changes included in current profit 2,174,249.66 346,726,621.74
and loss
Inc:
Debt instrument investment 2,174,249.66 346,726,621.74
Inc:
Total 2,174,249.66 346,726,621.74
Other information
3. Derivative financial assets
Unit: RMB
Item Closing balance Opening balance
Other information
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 balance Bad debt r provision
Category Proporti Book Proporti Book
Proporti on of value Proporti on of value
Amount Amount Amount Amount
on provisio on provisio
n n
Inc:
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Inc:
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
Amount of change in the current period
Opening
Category Withdrawal or Closing balance
balance Provision Write-off Other
reversal
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
(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
Derecognized amount at the end of the Not derecognized amount at the end of
Item
period 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
Other information:
(6) Notes receivable actually written off in current period
Unit: RMB
Item Amount of writing off
Important write-offs of notes receivable:
Unit: RMB
Whether the funds
Nature of notes Amount of writing Reasons for writing Procedure of writing
Company name are generated by
receivable off off off
related party
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
transactions
Notes on the write-off of notes receivable
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
Book value Book value
Proportion of Proportion of
Amount Proportion Amount Amount Proportion Amount
provision provision
Inc：
Accounts
receivable
with 44,904,502 4,730,762. 40,173,74 43,553,323 3,178,481. 40,374,84
provision for 100.00% 10.54% 100.00% 7.30%
.76 72 0.04 .54 27 2.27
bad debts in
combination
Inc：
Combination 1,783,000. 1,693,850.
1 3.97% 89,150.00 5.00%
00 00
Combination 2,882,508. 2,731,437. 3,530,335. 3,353,350.
2 6.42% 151,071.37 5.24% 8.11% 176,985.38 5.01%
56 19 54 16
Combination 40,238,994 4,490,541. 35,748,45 40,022,988 3,001,495. 37,021,49
3 89.61% 11.16% 91.89% 7.50%
.20 35 2.85 .00 89 2.11
Total
44,904,502 4,730,762. 40,173,74 43,553,323 3,178,481. 40,374,84
100.00% 100.00%
.76 72 0.04 .54 27 2.27
Provision for bad debts according to combination: 4,730,762.72
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision
Combination 1 1,783,000.00 89,150.00 5.00%
Combination 2 2,882,508.56 151,071.37 5.24%
Combination 3 40,238,994.20 4,490,541.35 11.16%
Total 44,904,502.76 4,730,762.72
Description of the basis for determining the combination:
Combination type Basis for determining the combination
Combination 1
Receivables from affiliates
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Combination 2
Receivables from hotel service
Combination 3
Other receivables
For accounts receivable divided into combinations, the Company calculates the expected credit loss by comparing the aging of the
accounts receivable with the expected credit loss ratio over the entire lifetime by referring to the historical credit loss experience,
combined with the current situation and the forecast of the future economic situation.
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
Disclosure by account age
Unit：RMB
Ages Book balance
Within 1 year (included) 14,903,686.51
1-2 years (included) 20,145,848.60
2 to 3 years 9,854,967.65
Total 44,904,502.76
(2) Provision, recovery and reversal for bad debts in current period
Provision for bad debts in the 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 accounts 3,178,481.27 1,552,281.45 4,730,762.72
receivable
Total 3,178,481.27 1,552,281.45 4,730,762.72
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Whether the funds
Nature of accounts Amount of writing Reasons for writing Procedures of are generated by
Company name
receivable off off writing 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. 40,000,000.00 89.08% 4,478,245.14
Customer 1 1,783,000.00 3.97% 89,150.00
Customer 2 1,489,480.50 3.32% 79,627.53
Customer 3 384,793.00 0.86% 19,239.65
Customer 4 340,818.00 0.76% 17,040.90
Total 43,998,091.50 97.99%
(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
Other information:
6. Receivables financing
Unit：RMB
Item Closing balance Opening balance
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
Other information:
7. Prepayments
(1) Disclosure by account age
Unit：RMB
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Closing balance Opening balance
Account age
Amount Proportion Amount Proportion
Within 1 year 414,197.00 100.00% 1,438,350.00 100.00%
Total 414,197.00 1,438,350.00
Reasons for not timely settling the important prepayments with an account age of more than one year:
(2) Prepayment of top five closing balance collected by prepayment objects
Unit：RMB
Company name Nature of Closing balance Account age Proportion in total Provision for
Payment amount of bad debts
prepayment(%)
Nanjing Eurasian Air Passengers Transport Air ticket Within 1 year
Agency Co., Ltd. payment 394,855.00 95.33
Nanjing Tuniu International Travel Agency Air ticket Within 1 year
Co., Ltd payment 19,342.00 4.67
Total
414,197.00 100.00
Other information:
None
8. Other receivables
Unit：RMB
Item Closing balance Opening balance
Other receivables 210,245,390.38 219,501,061.83
Total 210,245,390.38 219,501,061.83
(1) Interest receivable
1) Classification of interest receivable
Unit：RMB
Item Closing balance Opening balance
2) Important overdue interest
Unit：RMB
Whether there is
Borrower Closing balance Overdue time Overdue reasons impairment and its
judgment basis
Other information
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 impairment has
Item (or Investee) Closing balance Account age Reasons for non recovery occurred and the basis for
judging
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 208,111,328.92 217,158,729.61
Reserve fund 274,070.00 265,275.00
Deferred expense and others 1,859,991.46 2,077,057.22
Total 210,245,390.38 219,501,061.83
2) Provision for bad debts
Unit：RMB
Stage 1 Stage 2 Stage 3
Expected credit loss in
Provision for bad debts Expected credit loss in Total
Expected credit loss in the whole duration (no
the whole duration (credit
the next 12 months credit impairment has
impairment has occurred)
occurred)
Balance at Jan. 1st, 2022 6,860,155.97 6,860,155.97
Balance at Jan. 1st, 2022
in current period
Provision in the current
6,441,965.76 6,441,965.76
period
Balance at June 30th, 13,302,121.73 13,302,121.73
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
2022
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) 31,430,482.75
1 to 2 years 156,009,826.30
2 to 3 years 14,137,263.78
More than 3 years 21,969,939.28
3 to 4 years 4,475,091.76
4 to 5 years 4,599,100.23
More than 5 years 12,895,747.29
Total 223,547,512.11
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 6,860,155.97 6,441,965.76 13,302,121.73
receivables
Total 6,860,155.97 6,441,965.76 13,302,121.73
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
Important write-off of other receivables:
Unit：RMB
Nature of other Whether the funds
Company name Write-off amount Write-off reasons Write off procedures
receivables are generated by
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
related party
transactions
Description of write-off of other receivables:
None
5) Other receivables of top five closing balance collected by debtors
Unit：RMB
Proportion in total
Closing balance of
Name of company Nature of payment Closing balance Account age other closing balance
bad debt provision
receivables (%)
Beijing Construction
Deposits and
Engineering Real 124,498,000.00 1 to 2 years 55.69% 12,449,800.00
guarantees
Estate Co., Ltd
Beijing Huaxia
Shunxin Property Deposits and
25,000,000.00 1 to 2 years 11.18%
Management Co., guarantees
Ltd
Hainan Jiahexin Deposits and
15,000,000.00 Within 1 year 6.71%
Technology Co., Ltd guarantees
Beijing Hanhua
Deposits and Within 2years, more
Century Technology 6,127,045.64 2.74%
guarantees than 3 years
Co., Ltd
Shenyang Lijing
Mingzhu Hotel Deposits and
5,675,200.00 More than 5 years 2.54%
Management Co., guarantees
Ltd.
Total — 176,300,245.64 -- 78.86% 12,449,800.00
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
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
Other information
None
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
9. Inventories
Whether the Company needs to comply with the disclosure requirements of the real estate industry
10. Contract assets
Unit：RMB
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
Other information:
12. Non-current assets due within one year
Unit：RMB
Item Closing balance Opening balance
Important debt investment / Other debt investment
Unit：RMB
Closing balance Opening balance
Credit item Real interest Real interest
Par value Coupon rate Due date Par value Coupon rate Due date
rate rate
Other information:
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
13. Other current assets
Unit：RMB
Item Closing balance Opening balance
Prepaid tax 11,912,505.86 13,869,795.74
Prepaid expenses 5,288,865.64 10,255,632.25
Pending payment 51,721.76 12,833,701.81
Total 17,253,093.26 36,959,129.80
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
Fixed-term
7,058,993.55 7,058,993.55
deposit
Total 7,058,993.55 7,058,993.55
Important debt investment
Unit：RMB
Closing balance Opening balance
Credit item Real interest Real interest
Par value Coupon rate Due date Par value Coupon rate Due date
rate rate
Provision for impairment
Unit：RMB
Stage 1 Stage 2 Stage 3
Expected credit loss in
Provision for bad debts Expected credit loss in the Total
Expected credit loss in the whole duration (no
whole duration (credit
the next 12 months credit impairment has
impairment has occurred)
occurred)
Balance at Jan. 1st, 2022
—— —— —— ——
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 comprehensiv
e income
Other important debt investment
Unit：RMB
Closing balance Opening balance
Other credit
item Real interest Real interest
Par value Coupon rate Due date Par value Coupon rate Due date
rate rate
Provision for impairment
Unit：RMB
Stage 1 Stage 2 Stage 3
Expected credit loss in
Provision for bad debts Expected credit loss in the the whole duration (no Expected credit loss in the Total
whole duration (credit
next 12 months credit impairment has
impairment has occurred)
occurred)
Balance at Jan. 1st, 2022
—— —— —— ——
in current period
Changes in book balance of loss reserves with significant changes in current period
□ Applicable Not applicable
Other information:
16. Long-term receivables
(1) Long-term receivables
Unit：RMB
Closing balance Opening balance
Discount rate
Item Provision for Book Provision for
Book balance Book value Book value range
bad debts balance bad debts
Impairment of bad debt reserves
Unit：RMB
Stage 1 Stage 2 Stage 3
Expected credit loss in
Provision for bad debts Expected credit loss in Total
Expected credit loss in the whole duration (no
the whole duration (credit
the next 12 months credit impairment has
impairment has occurred)
occurred)
Balance at Jan. 1st, 2022 —— —— —— ——
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
in current period
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
Increase and decrease in the current period
Closi
Paym ng
Other
Investment ent of balan
compr
Opening gains and cash Provis Closing ce of
Invest Invest Invest ehensi Other
balance losses divide ion balance (book provis
ee ment ment ve chang
(book value) recognized nds or for Other value) ion
increa reduc incom es in
under the profit impair for
sed ed e equity
equity s ment impai
adjust
method declar rment
ments
ed
1. Joint ventures
2. Associated enterprises
Beijin
g
Offcn
Future
Educa 46,850,364.4
-9,507,696.78 37,342,667.62
tion 0
Techn
ology
Co.,
Ltd.
Subtot 46,850,364.4
-9,507,696.78 37,342,667.62
al 0
46,850,364.4
Total -9,507,696.78 37,342,667.62
0
Other information:
None
18. Investment in other equity instruments
Unit：RMB
Item Closing balance Opening balance
Shanghai Zuihuibao Network Technology 103,600,000.00 103,600,000.00
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Co., Ltd
Anhui Ningguo Rural Commercial Bank
26,800,000.00 26,800,000.00
Co., Ltd
Total 130,400,000.00 130,400,000.00
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
Network 17,600,000.00
holding
Technology Co.,
Ltd
Anhui Ningguo
Plan for long term
Rural Commercial 1,659,840.00 2,987,712.00
holding
Bank Co., Ltd
Total 1,659,840.00 20,587,712.00
Other information:
None
19. Other non-current financial assets
Unit：RMB
Item Closing balance Opening balance
Beijing Jinwu Venture Capital Center
30,260,000.00 30,260,000.00
(limited partnership)
Total 30,260,000.00 30,260,000.00
Other information:
None
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 377,111,222.22 470,624,021.74 847,735,243.96
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
period
（1）Disposal
（2）Other transfers
4.Closing balance 377,111,222.22 470,624,021.74 847,735,243.96
II. Accumulated
depreciation and
amortization
1. Opening balance 59,891,662.72 82,709,435.86 142,601,098.58
2. Increase in current
4,500,131.40 5,659,395.10 10,159,526.50
period
(1) Provision or
4,500,131.40 5,659,395.10 10,159,526.50
amortization
3.Decrease in current
period
(1) Disposal
(2) Other transfers
4. Closing balance 64,391,794.12 88,368,830.96 152,760,625.08
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
IV. Book value
1. Book value at the end
306,163,159.55 328,613,855.41 634,777,014.96
of the period
2. Book value at the
310,663,290.95 334,273,250.51 644,936,541.46
beginning of the period
（2）Investment properties adopting fair value measurement mode
□ Applicable Not applicable
（3）Investment properties without property right certificate
Unit：RMB
Reasons for not completing the property
Item Book value
rights certificate application
Premises and buildings 261,648,583.55 In process
Land-use right 5,072,535.69 In process
Other information
None
21. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 1,719,895,941.92 1,770,372,338.85
Total 1,719,895,941.92 1,770,372,338.85
(1) Fixed assets
Unit: RMB
Premises and Decoration of Transportation Electronic
Item Office equipment Total
buildings fixed assets facility equipment
I. Original book
value
1. Opening
1,798,288,071.53 64,708,424.02 79,966,146.51 235,284,975.20 12,081,043.61 2,190,328,660.87
balance
2. Increase in the
45,080.00 177,947.29 223,027.29
current period
(1) Purchase 45,080.00 177,947.29 223,027.29
(2)Transfer
from
construction in
progress
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(3) Increase in
business
combination
3. Decrease in the
current period
(1) Disposal or
obsolescence
4. Closing balance 1,798,288,071.53 64,708,424.02 79,966,146.51 235,330,055.20 12,258,990.90 2,190,551,688.16
II. Accumulated
depreciation
1. Opening
148,830,688.16 33,613,748.22 71,001,620.93 155,398,465.35 11,032,815.02 419,877,337.68
balance
2. Increase in the
27,976,499.39 4,918,193.58 1,047,142.36 16,653,785.27 103,803.62 50,699,424.22
current period
(1) Accrual 27,976,499.39 4,918,193.58 1,047,142.36 16,653,785.27 103,803.62 50,699,424.22
3. Decrease in the
current period
(1) Disposal or
obsolescence
4. Closing balance 176,807,187.55 38,531,941.80 72,048,763.29 172,052,250.62 11,136,618.64 470,576,761.90
III. Impairment
provision
1. Opening
4,309.80 74,674.54 78,984.34
balance
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
1,621,480,883.98 26,176,482.22 7,917,383.22 63,273,494.78 1,047,697.72 1,719,895,941.92
value
2. Opening book
1,649,457,383.37 31,094,675.80 8,964,525.58 79,882,200.05 973,554.05 1,770,372,338.85
value
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(2) Temporarily idle fixed assets
Unit: RMB
Accumulated Impairment
Item Original book value Book value Note
depreciation provision
(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
Other information
(5) Liquidation of fixed assets
Unit: RMB
Item Closing balance Opening balance
Other information:
22. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 311,967,758.92 294,785,678.31
Total 311,967,758.92 294,785,678.31
(1) Construction in progress
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Fushun Offcn
158,111,827.44 158,111,827.44 157,099,898.91 157,099,898.91
Building
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Rizhao Learning
79,895,497.96 79,895,497.96 63,725,345.88 63,725,345.88
City
Bozhou Yaxia
62,847,721.95 62,847,721.95 62,847,721.95 62,847,721.95
Fortune Plaza
GAC-Toyota
9,721,381.62 9,721,381.62 9,721,381.62 9,721,381.62
Bozhou 4S Stores
Huangshan Fudi
1,391,329.95 1,391,329.95 1,391,329.95 1,391,329.95
Stores
Total 311,967,758.92 311,967,758.92 294,785,678.31 294,785,678.31
(2) Changes of significant projects in construction in the current period
Unit: RMB
Proportio
Includin
n of Accumul
Transferr g:
accumula ative Current
ed Other capitaliz
Increase tive Project amount interest
Opening fixed decrease Closing ation Capital
Item Budget in the project progress of capitaliza
balance assets in the balance amount sources
period investme (%) interest tion rate
in the period of
nt in capitaliz (%)
period current
budget ation
interest
(%)
Fushun
330,000, 157,099,8 1,011,92 158,111,
Offcn 47.91% 47.91% Others
000.00 98.91 8.53 827.44
Building
Rizhao
1,000,00 63,725,34 16,170,1 79,895,4
Learning 7.99% 7.99% Others
0,000.00 5.88 52.08 97.96
City
1,330,00 220,825,2 17,182,0 238,007,
Total --
0,000.00 44.79 80.61 325.40
(3) Accrual of impairment provision for construction in progress in the period
Unit: RMB
Item Accrual amount Reason
Other information:
(4) Engineering materials
Unit: RMB
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other information：
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 Houses and buildings Total
I. Original book value
1. Opening balance 1,786,074,513.91 1,786,074,513.91
2. Increased amount in the current
138,074,856.29 138,074,856.29
period
(1) New lease contracts 138,074,856.29 138,074,856.29
3. Decreased amount in the current
90,660,043.08 90,660,043.08
period
(1) Decreased rent when lease expired 85,652,384.27 85,652,384.27
(2) Early expiration 5,007,658.81 5,007,658.81
4. Closing balance 1,833,489,327.12 1,833,489,327.12
II. Accumulated impairment
1. Opening balance 443,794,126.83 443,794,126.83
2.Increased amount in the current
263,779,532.46 263,779,532.46
period
(1) Accrual 263,779,532.46 263,779,532.46
3. Decreased amount in the current
87,241,349.41 87,241,349.41
period
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(1) Disposal
(1) Decreased rent when lease expired 85,652,384.27 85,652,384.27
(2) Early expiration 1,588,965.14 1,588,965.14
4. Closing balance 620,332,309.88 620,332,309.88
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 1,213,157,017.24 1,213,157,017.24
2. Opening book value 1,342,280,387.08 1,342,280,387.08
Other information:
26. Intangible assets
(1) Intangible assets
Unit: RMB
Non-patent
Item Land use right Patent right Software use right Trademark right Total
technology
I. Original book
value
1. Opening
910,052,741.43 7,774,286.02 7,140,521.53 924,967,548.98
balance
2. Increase in the
period
(1)Purchase
(2) Internal
R&D
(3) Increase
from business
combination
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
3. Decrease in
the period
(1) Disposal
4. Closing
910,052,741.43 7,774,286.02 7,140,521.53 924,967,548.98
balance
II. Accumulated
amortization
1. Opening
50,645,032.49 4,516,942.00 3,174,913.64 58,336,888.13
balance
2. Increase in the
13,002,271.35 346,818.68 362,027.54 13,711,117.57
period
(1) Accrual 13,002,271.35 346,818.68 362,027.54 13,711,117.57
3. Decrease in
the period
(1) Disposal
4. Closing
63,647,303.84 4,863,760.68 3,536,941.18 72,048,005.70
balance
III. Impairment
provision
1. Opening
3,111.00 3,111.00
balance
2. Increase in the
period
(1) Accrual
3. Decrease in
the period
(1) Disposal
4. Closing
3,111.00 3,111.00
balance
IV. Book value
1. Closing book 846,405,437.59 2,907,414.34 3,603,580.35 852,916,432.28
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
value
2. Opening book
859,407,708.94 3,254,233.02 3,965,607.89 866,627,549.85
value
No intangible assets formed through internal research and development at period-end.
(2) Land use rights without property rights certificate
Unit: RMB
Reasons for not completing property rights
Item Book value
certificate application
Land-use rights 253,600,673.90 in process
Other information:
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
Total
Other information:
28. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increase in the current Decrease in the current
period period
Name of the investee and
Opening balance Formed by Closing balance
item resulting in goodwill
business others Disposal others
combination
Shandong Kunzhong Real
39,378,573.51 39,378,573.51
Estate Co., Ltd.
Nanjing Huiyue Hotel
60,489,146.87 60,489,146.87
Management Co., Ltd.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
Relevant information of asset group or combination of asset group where goodwill is located
The Company acquired Shandong Kunzhong Real Estate Co., Ltd. in 2016 and generated goodwill of RMB
39,378,573.51. The goodwill was divided into corresponding asset groups which consists of long-term assets,
goodwill and deferred tax liabilities. The recoverable amount of the asset group is determined based on the net
amount of the fair value minus 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 goodwill was divided into corresponding asset groups which consists of long-term assets,
goodwill and deferred tax liabilities. The recoverable amount of the asset group is determined based on the net
amount of the fair value minus 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:
Impact of goodwill impairment test
Other information
29. Long-term prepaid expenses
Unit: RMB
Increase in the Amortization for Other
Item Opening balance Closing balance
period the period reductions
Decoration expenditure 369,131,058.86 574,526.66 48,905,197.74 320,800,387.78
Other 11,059,947.52 641,250.00 2,197,555.19 9,503,642.33
Total 380,191,006.38 1,215,776.66 51,102,752.93 330,304,030.11
Other information
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
None
30. Deferred income tax assets and Deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Provision for impairment losses of assets 13,601,741.78 2,138,677.94 7,097,408.69 1,143,919.39
Deductible losses 3,709,826,925.36 556,474,038.80 2,816,982,346.58 422,547,351.99
Changes in fair value of held-for-trading
2,240,000.00 336,000.00 2,240,000.00 336,000.00
financial assets
Total 3,725,668,667.14 558,948,716.74 2,826,319,755.27 424,027,271.38
(2) Unoffset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Taxable Deferred Taxable
Item Deferred income
temporary income tax temporary
tax liabilities
difference liabilities difference
Appraisal and appreciation of
consolidated assets of non-identical 350,001,229.56 87,500,307.40 355,061,963.00 88,765,490.76
controlled enterprises
Changes in fair value of other equity
17,600,000.00 4,400,000.00 17,600,000.00 4,400,000.00
instrument investments
Changes in fair value of financial assets
11,108.53 978.89 3,446,850.74 546,681.86
held for trading
Total 367,612,338.09 91,901,286.29 376,108,813.74 93,712,172.62
(3) Deferred income tax assets or liabilities presented in net amount after offsetting
Unit: RMB
Item Mutual offset amount at Closing balance of Mutual offset amount at Opening balance of
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
Deferred income tax assets 558,948,716.74 424,027,271.38
Deferred income tax
91,901,286.29 93,712,172.62
liabilities
(4) Unrecognized deferred income tax asset details
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 1,489,914.12 2,801,762.22
Deductible losses 255,486,666.32 261,754,607.89
Total 256,976,580.44 264,556,370.11
(5) The deductible losses of unrecognized deferred income tax assets will expire in the following years
Unit: RMB
Year Closing balance Opening balance Notes
2022 14,669,961.10
2023 11,480,964.23 11,480,964.23
2024 38,853,304.84 38,853,304.84
2025 57,109,818.13 57,109,818.13
2026 99,972,766.82 139,640,559.59
2027 48,069,812.30
Total 255,486,666.32 261,754,607.89
Other information
31. Other no-current assets
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Prepayment for Fixed
1,633,967,285.38 1,633,967,285.38 1,630,946,885.38 1,630,946,885.38
Assets
Prepaid construction
8,455,158.00 8,455,158.00 8,455,158.00 8,455,158.00
payments
Input tax to be deducted / to
3,070,484.08 3,070,484.08 11,962,352.40 11,962,352.40
be certified
Investment funds 1,100,000.00 1,100,000.00 800,000.00 800,000.00
Total 1,646,592,927.46 1,646,592,927.46 1,652,164,395.78 1,652,164,395.78
Other information
None
32. Short-term loan
(1) Short-term loan classification
Unit: RMB
Item Closing balance Opening balance
Credit loans 1,251,590,694.36 3,152,945,812.59
Total 1,251,590,694.36 3,152,945,812.59
Description of the classification of short-term loans:
(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.
Unit: RMB
Borrower Closing balance Borrowing rates Overdue time Overdue interest rates
Other information
33. Transactional financial liabilities
Unit: RMB
Item Closing balance Opening balance
Inc:
141
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Inc:
Other information:
34. Derivative financial liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
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 83,112,000.00 83,112,000.00
Start class fees 81,391,416.20 109,756,452.70
Renovation costs 22,461,110.93 22,461,110.93
Project payments 16,785,864.64 51,080,172.01
Market promotion fees 6,065,625.00 15,623,180.88
Total 209,816,016.77 282,032,916.52
(2) Major accounts payable with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
Other information:
37. Receipts in advance
(1) List of receipts in advance
Unit: RMB
142
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
Other information
38. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Training fees received in advance 4,783,099,152.78 3,063,247,467.84
Other 37,031.58 473,822.44
Total 4,783,136,184.36 3,063,721,290.28
Amount and reasons for major changes in book value in the period
Unit: RMB
Item Changes in amount Reasons for changes
39. Payroll payable
(1) List of employee salaries payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 406,180,615.62 1,972,815,550.30 2,113,391,974.14 265,604,191.78
II.Post-employment welfare-
defined contribution plan 16,666,240.98 151,810,208.15 141,640,029.50 26,836,419.63
liability
III. Dismissed welfare 40,000.00 1,226,916.30 1,266,916.30
Total 422,886,856.60 2,125,852,674.75 2,256,298,919.94 292,440,611.41
(2) Short-term salary list
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Wages or salaries, bonuses, 399,743,797.02 1,820,611,244.39 1,963,249,366.94 257,105,674.47
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Item Opening balance Increase Decrease Closing balance
allowances and subsidies
II. Staff welfare 2,035,356.30 2,035,356.30
III. Social security
5,769,694.98 90,592,964.49 90,869,861.96 5,492,797.51
contributions
Inc: 1.Medical insurance 5,379,517.86 85,427,584.24 85,927,100.86 4,880,001.24
2. Work injury insurance 389,970.93 3,669,850.37 3,450,351.83 609,469.47
3. Maternity insurance 206.19 1,495,529.88 1,492,409.27 3,326.80
IV. Housing fund 666,882.00 59,526,635.30 57,187,797.50 3,005,719.80
V. Labor union expenditure and
employee education 241.62 49,349.82 49,591.44
expenditure
Total 406,180,615.62 1,972,815,550.30 2,113,391,974.14 265,604,191.78
(3) Set deposit plan listing
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Basic endowment insurance 16,059,305.75 146,691,321.96 136,795,417.22 25,955,210.49
II. Unemployment insurance 606,935.23 5,118,886.19 4,844,612.28 881,209.14
Total 16,666,240.98 151,810,208.15 141,640,029.50 26,836,419.63
Other information
None
40. Taxes payable
Unit: RMB
Item Closing balance Opening balance
Value-added tax 18,010,065.22 1,258,114.36
Corporate income tax 16,204.16 7,200,408.21
Withholding individual income tax 115,924.79 227,163.18
City maintenance and construction tax 1,267,029.73 84,830.67
Education surcharge 546,601.57 37,072.06
Land use tax 2,091,482.34 2,064,992.60
144
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Item Closing balance Opening balance
Property tax 1,991,263.96 1,604,934.51
Other 407,030.66 89,236.25
Total 24,445,602.43 12,566,751.84
Other information
None
41. Other payable
Unit: RMB
Item Closing balance Opening balance
Other payable 95,703,431.68 129,043,599.22
Total 95,703,431.68 129,043,599.22
(1) Interest payable
Unit: RMB
Item Closing balance Opening balance
Major overdue interest payable:
Unit: RMB
Borrower Amount outstanding Reason
Other information:
(2) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Other information including reasons for major dividends payable overdue for more than one year:
(3) Other accounts payable
1) List of other payables by nature of payment
Unit: RMB
Item Closing balance Opening balance
145
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Item Closing balance Opening balance
Equity transfer 61,283,300.00 61,283,300.00
Daily expenses 23,635,198.54 58,363,407.47
Social Security and Provident Fund 1,896,260.71 683,275.40
Advances and others 8,888,672.43 8,713,616.35
Total 95,703,431.68 129,043,599.22
2) Major other payables with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
Other information:
42. Held-for-sale liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
43. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease liabilities due within one year 547,313,044.67 531,876,007.31
Total 547,313,044.67 531,876,007.31
Other information:
44. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Value-added tax received in advance 143,495,196.47 91,925,853.39
Total 143,495,196.47 91,925,853.39
Changes in short-term bonds payable
Unit: RMB
Name of Par value Date of Bond Amount Opening Issuance Interest Premium Repay in Closing
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
bond issuance period of balance in the accrued at and the period balance
issuance period par value discount
amortizati
on
Total
Other information:
45. Long-term borrowings
(1) Category of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Description of the classification of long-term loans:
Other information, including interest rate ranges:
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
147
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
Houses and buildings 524,208,664.69 635,691,184.87
Total 524,208,664.69 635,691,184.87
Other information
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
Other information
(2) Special payable
Unit: RMB
Decrease in the
Item Opening balance Increase in the period Closing balance Reason
period
Other information:
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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:
Other information:
50. Estimated liabilities
Unit: RMB
Item Closing balance Opening balance Reason
Other information including relevant important assumptions and estimates of important projected liabilities:
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
149
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
Other information:
52. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
53. Share capital
Unit: RMB
Changes in the current period（+、-）
Provident fund
Item Opening balance Issue new Bonus Closing balance
transfer to share other Total
shares share
capital
Share
103,807,623.00 103,807,623.00
capital
Other information
54. Other equity instruments
(1) Information of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the 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:
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
55. Capital reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
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:
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:
57. Other comprehensive income
Unit: RMB
Amount incurred in this period
Less:
Less:
transferred to
transferred to
other
other
comprehensiv
Pre-tax comprehensiv Less: Attributabl
e income in Attributable
Opening amoun e income in income e to the Closing
Item the previous to minority
balance t for the previous tax parent balance
period and shareholders
the period and expense company,
transferred to , after tax
year transferred to s after tax
retained
profit or loss
earnings in
in the current
the current
period
period
1. Other
comprehensiv
e income not 13,200,000.0 13,200,000.0
reclassfied 0 0
into gains or
losses
Changes in the
fair value of 13,200,000.0 13,200,000.0
other equity 0 0
instruments
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Amount incurred in this period
Less:
Less:
transferred to
transferred to
other
other
comprehensiv
Pre-tax comprehensiv Less: Attributabl
e income in Attributable
Opening amoun e income in income e to the Closing
Item the previous to minority
balance t for the previous tax parent balance
period and shareholders
the period and expense company,
transferred to , after tax
year transferred to s after tax
retained
profit or loss
earnings in
in the current
the current
period
period
Total other
13,200,000.0 13,200,000.0
comprehensiv
0 0
e 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:
58. Special reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other information including changes in the current period and the corresponding reasons:
59. Surplus reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
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:
60. Undistributed profit
Unit: RMB
Amount for the current Amount for the prior
Item
period period
Undistributed profits at the end of previous year 501,330,081.70 2,870,839,120.70
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Amount for the current Amount for the prior
Item
period period
Undistributed profits at the beginning of the year 501,330,081.70 2,870,839,120.70
Add: net profit attributable to owners of the Parent
-890,931,710.33 -2,369,509,039.00
Company
Undistributed profits at the end of period -389,601,628.63 501,330,081.70
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. Operating income and operating costs
Unit: RMB
Amount for the current period Amount for the prior period
Item
Operating income Operating costs Operating income Operating costs
Core business 2,216,651,869.28 1,589,663,422.60 4,828,531,538.19 2,665,607,334.33
Other business 10,053,092.83 20,165,220.08 27,466,725.31 19,343,903.91
Total 2,226,704,962.11 1,609,828,642.68 4,855,998,263.50 2,684,951,238.24
Information about income:
Unit: RMB
Types of Contracts Section 1 Section 2 Total
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 .
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Other information
62. Taxes and surcharges
Unit: RMB
Item Amount for the current period Amount for the prior period
City maintenance and construction tax 4,002,616.30 5,442,750.87
Education surcharge 2,849,598.95 3,893,418.07
Property tax 5,000,280.13 3,139,389.81
Land holding tax 4,188,848.40 1,754,176.99
Vehicle usage tax 78,531.98 90,412.50
Stamp tax 151,994.94 1,286,352.59
Other 124,017.73 211,050.16
Total 16,395,888.43 15,817,550.99
Other information
63. Sales expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Employee's salary 518,526,442.34 692,182,853.04
Rent property and depreciation
107,675,061.20 107,794,443.67
amortization
Marketing fee 44,876,180.22 96,439,119.67
Travel expenses 26,478,434.40 33,273,322.81
Other 4,209,908.57 46,282,733.64
Total 701,766,026.73 975,972,472.83
Other information
64. Management expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Employee's salary 296,641,414.65 408,979,549.36
Rental property and depreciation
78,840,943.95 63,376,032.40
amortization
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Item Amount for the current period Amount for the prior period
Office expenses 63,880,868.57 80,586,204.68
Travel expenses 16,460,248.02 24,934,914.17
Welfare fee 1,113,243.95 7,656,913.34
Other 15,135,919.53 22,361,198.85
Total 472,072,638.67 607,894,812.80
Other information
65. Research and development expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Employee's salary 291,977,379.54 506,860,968.14
Travel expenses 5,443,455.92 11,235,148.92
Other 30,169,268.44 24,779,695.37
Total 327,590,103.90 542,875,812.43
Other information
66. Financial expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Interest expenses 57,847,785.61 126,914,597.79
Less: Interest income 5,702,074.59 24,674,100.13
Service Charge 90,505,577.80 155,563,838.75
Total 142,651,288.82 257,804,336.41
Other information
67. Other income
Unit: RMB
Item Amount for the current period Amount for the prior period
Stable subsidy 15,373,450.00 1,183,713.97
VAT exemption 6,597,067.60 62,069,714.49
Tax handling fee refund 5,170,874.49 98,186.92
Financial support 3,000,000.00
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Small financial support income 60,686.00 56,814.73
Rent subsidy income 109,500.00
Park support and subsidy 80,000.00
Total 30,202,078.09 63,597,930.11
68. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income
-9,507,696.78
under the equity method
Dividend income from other equity
instrument investments during the holding 1,659,840.00 1,327,872.00
period
Interest income obtained from debt
5,879.99 31,184,646.29
investment during the holding period
Investment income from financial product 5,611,244.87 28,910,968.77
Total -2,230,731.92 61,423,487.06
Other information:
69. Net exposure hedging income
Unit: RMB
Item Amount for the current period Amount for the previous period
Other information:
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 -3,435,742.21 9,068,865.15
Total -3,435,742.21 9,068,865.15
Other information:
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 -6,441,965.76 -355,501.83
Loss on bad debts of receivables -1,552,281.45 -1,093,651.92
Total -7,994,247.21 -1,449,153.75
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Other information:
72. Impairment losses of assets
Unit: RMB
Item Amount for the current period Amount for the previous period
Other information:
73. Income from assets disposal
Unit: RMB
Sources of income from assets disposal Amount for the current period Amount for the previous period
Right-of-use assets 58,877.23
Fixed assets -168,828.03
Total 58,877.23 -168,828.03
74. Non-operating income
Unit: RMB
Amount for the previous Amount included in current
Item Amount for the current period
period non-recurring gains and losses
Others 37,698.84
Total 37,698.84
Government subsidy reckoned into current gains and losses:
Unit: RMB
Whether
Amount for
the subsidy Whether it Amount for Related to
the
Item Entity Purpose Type impacts the is special the current assets/
previous
gain/loss of subsidy period income
period
the year
Other information:
75. Non-operating expenses
Unit: RMB
Amount included in the
Amount for the previous
Item Amount for the current period current non-recurring gains or
period
losses
Outward donation 100,000.46 100,001.18 100,000.46
Forfeiture and overdue fine 4,191,688.08 192,888.57 4,191,688.08
Expenses on compensations 80,699.65 50,900.00 80,699.65
Loss on disposal of fixed
5,264.50
assets
Total 4,372,388.19 349,054.25 4,372,388.19
Other information:
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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 -3,704,622.95 167,187.30
Deferred income tax expense -136,732,331.69 -159,604.63
Total -140,436,954.64 7,582.67
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Amount for the current period
Total profit -1,031,371,781.33
Income tax expenses calculated at statutory/applicable tax rate(s) -154,705,767.20
Impact from different tax rates applicable to subsidiaries -1,736,724.12
Impact from adjustment of income tax of previous periods -1,396,336.08
Impact from non-taxable income -414,960.00
Impact from non-deductible cost, expense and loss 2,809,924.97
Impact from deductible temporary differences or deductible
losses of deferred income tax assets unrecognized in the current 12,629,983.59
period
Profit and loss attributable to joint ventures and associates 2,376,924.20
Expense of income tax -140,436,954.64
Other information:
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 4,412,165.36 28,930,208.62
interest income 5,702,074.59 24,674,100.13
Other income and non-operating income 23,600,909.94 1,528,215.62
Reserve funds 9,474.40 67,210.12
Reimbursed expenses and others 1,380,773.98 11,835.47
Total 35,105,398.27 55,211,569.96
Information of cash received from other operating activities:
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(2) Other Cash paid related to operating activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Daily expenses 166,639,952.75 332,369,243.27
Service charges 124,426,309.89 117,563,838.75
Non-operating expenses 4,372,388.19 343,789.75
Deposits and guarantees 3,799,495.48 107,899,911.95
Reserve funds 18,269.40 372,060.12
Total 299,256,415.71 558,548,843.84
Information of cash paid from other operating activities:
(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:
(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:
(5) Other cash received related to fundraising activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Description of other cash received related to financing activities:
(6) Other cash paid related to fundraising activities
Unit: RMB
Item Amount for the current period Amount for the previous period
Cash paid to repay principal and interest
245,945,251.57 392,129,451.92
on lease liability
Total 245,945,251.57 392,129,451.92
Description of other cash paid related to financing activities:
79. Supplementary information on cash flow statement
(1) Supplementary information on cash flow statement
Unit: RMB
Amount for the current
Supplementary information Amount for the previous period
period
1. Net profit adjusted to cash flow of operating
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
activities:
Net profit -890,934,826.69 -97,164,597.74
Add: Provision for impairment of assets
Expected credit loss 7,994,247.21 1,449,153.75
Depreciation of fixed assets, depletion of oil
60,858,950.72 53,128,042.71
and gas assets and productive biological assets
Depreciation of right-of-use assets 263,779,532.46 223,626,364.59
Amortization of intangible assets 12,366,582.06 7,707,983.66
Amortization of long-term prepaid expenses 48,905,197.74 25,886,666.44
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains are indicated -58,877.23 168,828.03
by “-”)
Losses on write-off of fixed assets (gains are
indicated by “-”)
Losses on changes in fair values (gains are
3,435,742.21 -9,068,865.15
indicated by “-”)
Financial expenses (income is indicated by
57,847,785.61 126,914,597.79
“-”)
Losses from investments (gains are indicated
2,230,731.92 -61,423,487.06
by “-”)
Decrease in deferred tax assets (decrease is
-134,921,445.36 -234,848.92
indicated by “-”)
Increase in deferred income tax liabilities
-1,810,886.33 75,244.29
(decrease is indicated by “-”)
Decrease in inventories (increase is indicated
by “-”)
Decrease in operating receivables (increase is
21,593,531.28 -142,759,060.10
indicated by “-”)
Increase in operating payables (decrease is
1,581,696,145.72 -1,067,397,480.24
indicated by “-”)
Others
Net cash flow from operating activities 1,032,982,411.32 -939,091,457.95
Significant investment and financing activities that do
not involve cash flow:
Conversion of debt into capital
Convertible bonds due within 1 year
Fixed assets acquired under financing lease
3. Net changes in cash and cash equivalents:
Closing balance of cash 1,125,192,888.93 3,560,210,085.18
Less: Opening balance of cash 1,969,806,009.56 5,950,036,489.12
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase of cash and cash equivalents -844,613,120.63 -2,389,826,403.94
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(2) Net cash paid for acquiring subsidiaries for the current period
Unit: RMB
Amount
Inc:
Inc:
Inc:
Other information:
(3) Net cash acquired from disposal of subsidiaries in the current period
Unit: RMB
Amount
Inc:
Inc:
Inc:
Other information:
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 1,125,192,888.93 1,969,806,009.56
Including: Cash on hand 35,782.45 62,362.45
Cash on bank available for
1,010,899,528.84 1,755,585,321.54
payment at any time
Other monetary funds available
114,257,577.64 214,158,325.57
for payment at any time
III. Closing balance of cash and cash
1,125,192,888.93 1,969,806,009.56
equivalent
Other information:
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:
81. Assets with restricted ownership or rights of use
Unit: RMB
Item Closing book value Reason for restriction
Monetary funds 13,200.00 guarantees
Total 13,200.00
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Other information:
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
Other information:
None
(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 also 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:
None
84. Government subsidies
(1) General information of Government subsidies
Unit: RMB
Amount included in current
Types Amount Listed items
gains and losses
Subsidy for job
security/Work-for-training/
15,373,450.00 Other income 15,373,450.00
Subsidies for training and
employment
Fund for financial support 3,000,000.00 Other income 3,000,000.00
Small financial support
60,686.00 Other income 60,686.00
income from the government
Total 18,434,136.00 18,434,136.00
(2) Refund of government subsidies
□ Applicable Not applicable
Other information:
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85. Others
None
Section VIII. Changes in the Consolidation Scope
1. Business combination not under common control
(1) Business combination not under common control for the current period
Unit: RMB
Income of Net profit
the of the
Basis of acquiree acquiree
Name of Time of Cost of Proportion Ways of
Date of determining from the from the
the acquiring acquiring of equity acquiring
acquisition the date of purchase purchase
acquiree equity equity acquisition equity
acquisition date to the date to the
end of the end of the
period period
Other information:
(2) Merger costs and goodwill
Unit: RMB
Merger costs
--Cash
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of the equity held before the purchase date on the
purchase date
--Others
Total Consolidation Costs
Less: Acquired share of fair value of identifiable net assets
Amount of goodwill/combination cost less than the fair value
share of identifiable net assets acquired
Description of the method of determining the fair value of the combination cost, the contingent consideration and
its changes:
The main reasons for the formation of large amount of goodwill:
Other information:
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(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
Method of determining the fair value of identifiable assets and liabilities:
None
The contingent liabilities of the acquiree assumed in the business combination:
None
Other information:
None
(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. Business combination under common control
(1) Business combination under common control for the current period
Unit: RMB
Income of Net profit of
the merged the merged
party from party from Income of Net profit
Equity ratio Basis for
Basis of the the the of the
obtained in business Date of
Name of determinin beginning beginning merged merged
the combinatio business
the merged g the of party party
business n under combinatio of the
party combinatio combinatio during the during the
combinatio common n combination
n date n period to compariso comparison
n control period to the
the n period period
combinatio combination
n date date
Other information:
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(2) Merger costs
Unit: RMB
Merger costs
Descriptions for the contingent consideration and its changes:
None
Other information:
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
Other information:
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 amount of equity adjusted and its calculation method when treated as equity transactions:
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 (for example, newly established
subsidiaries, liquidation of subsidiaries) and the relevant circumstances:
Name of subsidiaries Shareholding ratio（%） Reasons for changes
1. Sichuan Offcn Luming Culture Media Co., Ltd. 100.00 New establishment
165
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
2. Tianjin Jinnan Offcn Lexue Training School Co., Ltd. 100.00
New establishment
6. Others
None
Section IX. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the Company
Name of Principal place Place of Nature of Shareholding ratio Acquisition
subsidiaries of business registration business Direct Indirect method
Service Reverse
1. Offcn Ltd. Beijing Beijing 100.00%
Industry purchase
2. Wuhu Yawei
Automobile Merchandise New
Wuhu Wuhu 100.00%
Sales Service sales, etc. establishment
Co., Ltd
3. Ningguo
Yaxia
Automobile Service New
Ningguo Ningguo 100.00%
Driver Training Industry establishment
School (Co.,
Ltd.)
4. Huangshan
Yaxia Fudi
Merchandise New
Automobile Huangshan Huangshan 100.00%
sales, etc. establishment
Sales Services
Co., Ltd.
5. Chaohu
Yaxia Kaixuan
Merchandise New
Automobile Hefei Hefei 100.00%
sales, etc. establishment
Sales Services
Co., Ltd.
6. Bozhou
Yaxia
Automobile Service New
Bozhou Bozhou 100.00%
Driver Training Industry establishment
School Co.,
Ltd.
7. Suzhou
Bokai
Merchandise
Automobile Suzhou Suzhou 100.00% Acquisition
sales, etc.
Sales Services
Co., Ltd.
8. Shaanxi
Offcn
Service New
Education Xi’an Xi’an 100.00%
Industry establishment
Technology Co.
Ltd.
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9. Chengdu
Offcn Future
Service New
Education Chengdu Chengdu 100.00%
Industry establishment
Training School
Co. Ltd.
10. Lu’an
Yazhong Real
Estate
Lu’an Lu’an Real estate 100.00% Acquisition
Information
Consulting Co.,
Ltd.
11. Lu’an
Zhongke Real
Estate
Lu’an Lu’an Real estate 100.00% Acquistion
Information
Consulting Co.,
Ltd.
12. Sichuan
Culture, sports
Offcn Luming New
Chengdu Chengdu and 100.00%
Culture Media establishment
entertainment
Co., Ltd.
13. Zhejiang
Offcn
Service New
Education Hangzhou Hangzhou 100.00%
Industry establishment
Technology Co.
Ltd.
14. Taizhou
Offcn Future
Enterprise Service New
Taizhou Taizhou 100.00%
Management Industry establishment
Consulting Co.,
Ltd.
15. Wenling
Offcn
Service New
Information Wenling Wenling 100.00%
Industry establishment
Consulting Co.,
Ltd.
16. Beijing
Offcn Xinzhiyu
Service New
Online Beijing Beijing 100.00%
Industry establishment
Technology
Co., Ltd.
17.Hulun Buir
Hailar Offcn
Education Service New
Hulun Buir Hulun Buir 100.00%
Information Industry establishment
Consulting Co.,
Ltd.
18. Xilinhot
Offcn Future
Education Service New
Xilinhot Xilinhot 100.00%
Consulting Co., Industry establishment
Ltd.
19. Yueqing
Service New
Lecheng Offcn Yueqing Yueqing 100.00%
Industry establishment
Training Center
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Co., Ltd.
20. Jiaozuo
Offcn Future
Service New
Education Jiaozuo Jiaozuo 100.00%
Industry establishment
Service Co.,
Ltd.
21. Xinzheng
Offcn Cultural Service New
Zhengzhou Zhengzhou 100.00%
Communication Industry establishment
Co., Ltd.
22. Chongqing
Jiangbei Offcn
Vocational Service New
Chongqing Chongqing 100.00%
Examination Industry establishment
Training Co.,
Ltd.
23. Nanning
Offcn Future
Service New
Education Nanning Nanning 100.00%
Industry establishment
Consulting Co.,
Ltd.
24. Baiyin
Offcn Future
Service New
Education Baiyin Baiyin 100.00%
Industry establishment
Consulting Co.,
Ltd.
25. Beijing
Xindezhiyuan
Enterprise Service New
Beijing Beijing 100.00%
Management Industry establishment
Consulting Co.,
Ltd.
26. Nanjing
Huiyue Hotel Service
Nanjing Nanjing 100.00% Acquistion
Management Industry
Co., Ltd.
27. Shandong
Service
Kunzhong Real Jinan Jinan 100.00% Acquistion
Industry
Estate Co., Ltd.
28. Sanmenxia
Offcn Cultural Service New
Sanmenxia Sanmenxia 100.00%
Communication Industry establishment
Co., Ltd.
29. Liaoning
Offcn
Academic & Service New
Shenyang Shenyang 100.00%
Cultural Industry establishment
Exchange Co.,
Ltd.
30.Liaoning
Offcn
Shenfu new Shenfu new Service New
Education 100.00%
district district Industry establishment
Technology
Co., Ltd.
31.Shandong
Service New
Offcn Qingdao Qingdao 100.00%
Industry establishment
Education
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Technology
Co., Ltd.
32.Jilin
Changyi Offcn
Service New
Education Jilin Jilin 100.00%
Industry establishment
Training School
Co., Ltd.
33.Yuxi Offcn
Service New
Training School Yuxi Yuxi 100.00%
Industry establishment
Co., Ltd.
34.Tonghua
Offcn Training Service New
Tonghua Tonghua 100.00%
School Co., Industry establishment
Ltd.
35.Hunan
Lighsalt Offcn
Service New
Education Changsha Changsha 90.00%
Industry establishment
Technology
Co., Ltd.
36.Tianjin Hexi
Offcn Training Service New
Tianjin Tianjin 100.00%
School Co., Industry establishment
Ltd.
37. Chengdu
Offcn
Service New
Education Chengdu Chengdu 100.00%
Industry establishment
Training School
Co., Ltd.
38. Shandong
Zhuoda
Service New
Business Rizhao Rizhao 100.00%
Industry establishment
Management
Co., Ltd.
39. Liaoning
Zhongcheng
Shenfu new Shenfu new
Real Estate Real estate 100.00% Acquisition
district district
Development
Co., Ltd.
40. Wuhu Offcn
Service New
Training School Wuhu Wuhu 100.00%
Industry establishment
Co. Ltd
41. Wuhan
Guoshang
Human Service New
Wuhan Wuhan 100.00%
Resource Industry establishment
Service Co.,
Ltd.
42. Jinan
Zhangqiu Offcn Service New
Jinan Jinan 100.00%
Training School Industry establishment
Co. Ltd.
43. Mengzi
Service New
Offcn Mengzi Mengzi 100.00%
Industry establishment
Education
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Training Co.
Ltd.
44. Beijing
Offcn
Service New
Technology Beijing Beijing 100.00%
Industry establishment
Development
Co. Ltd
45. Shanghai
Offcn
Service New
Education Shanghai Shanghai 100.00%
Industry establishment
Technology Co.
Ltd.
46. Guangzhou
Offcn Smart
Service New
Education Guangzhou Guangzhou 100.00%
Industry establishment
Technology Co.
Ltd.
47. Pingshan
Offcn
Service New
Education Shijiangzhuang Shijiangzhuang 100.00%
Industry establishment
Technology Co.
Ltd.
48. Shandong
Offcn
Service New
Education Jinan Jinan 100.00%
Industry establishment
Training School
Co. Ltd.
49. Lanzhou
Offcn
Service New
Education Lanzhou Lanzhou 100.00%
Industry establishment
Training School
Co. Ltd.
50. Anshan
Tiedong Offcn
Service New
Education Anshan Anshan 100.00%
Industry establishment
Training School
Co.,Ltd.
51. Diqing
Offcn Training Diqing Diqing Service New
100.00%
School Co., Prefecture Prefecture Industry establishment
Ltd.
52. Dali Offcn
Education Service New
Dali Dali 100.00%
Training School Industry establishment
Co., Ltd.
53. Harbin
Nangang Offcn
Service New
Education Harbin Harbin 100.00%
Industry establishment
Training School
Co., Ltd.
54. Nujiang
Offcn Training Nujiang Nujiang Service New
100.00%
School Co., prefecture prefecture Industry establishment
Ltd.
55. Weixi Offcn Service
New
Education Weixi County Weixi County Industry 100.00%
establishment
Training School
170
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Co., Ltd.
56.Beijing
Offcn Century
Service New
Education Beijing Beijing 100.00%
Industry establishment
Technology
Co., Ltd
57. Tianjin
Jinnan Offcn
Service New
LexueTraining Tianjin Tianjin 100.00%
Industry establishment
School Co.,
Ltd.
Explanation of the differences between the percentage of shares held in the subsidiary and the voting rights ratio:
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:
Basis for the important structured entities included in the scope of consolidation:
Basis for determining whether the Company is an agent or a principal:
Other information:
(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
Ratio shareholders in the
the current period the end of the period
current period
Explanation for the differences between the percentage of the minority shareholders’ shareholding and the voting
rights percentage:
Other information
(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
Name of the Amount for the current period Amount for the previous period
subsidiary Operating Net profit Total Cash flow Operating Net profit Total Cash flow
171
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
income comprehensiv from income comprehensiv from
e income operating e income operating
activities activities
Other information:
(4) Significant restrictions on the use of corporate group assets and the settlement of corporate group debts
(5) Financial support or other support provided to structured entities included in the scope of consolidated
financial statements
Other information:
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
(2) Impact of the transaction on the equity of minority shareholders and the equity attributable to the parent
company
None
Other information:
None
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:
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(2) Main financial information of important joint ventures
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the previous
period period
Other information
(3) Main financial information of important associates
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the previous
period period
Other information
(4) 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 book value of investments 37,342,667.62 46,850,364.40
Total of the following items calculated by
shareholding ratio
--Net profit -9,507,696.78
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
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(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
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 a 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,
establish an appropriate bottom line for risk tolerance, make risk management and timely supervise and confine
various risks to a certain range.
The main risks caused by the Company’s financial instruments are credit risk, liquidity risk and market risk.
1. Classification of financial instruments
1.1 Book value of various financial assets on the balance sheet date
(1) June 30, 2022
Unit: RMB
Financial assets measured at Financial assets measured at Financial assets
Item Total
amortized cost fair value and with variation measured at fair value
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
reckoned into current and with variation
gains/losses reckoned into other
comprehensive income
Monetary funds 1,125,206,088.93 1,125,206,088.93
Transactional financial assets 2,174,249.66 2,174,249.66
Accounts receivable 40,173,740.04 40,173,740.04
Other receivables 210,245,390.38 210,245,390.38
Other current assets 51,721.76 51,721.76
Investment in other equity
130,400,000.00 130,400,000.00
instruments
Other non-current financial
30,260,000.00 30,260,000.00
assets
(2) December 31,2021
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 1,970,361,272.64 1,970,361,272.64
Transactional financial assets 346,726,621.74 346,726,621.74
Accounts receivable 40,374,842.27 40,374,842.27
Other receivables 219,501,061.83 219,501,061.83
Debt investment 7,058,993.55 7,058,993.55
Other current assets 12,833,701.81 12,833,701.81
Investment in other equity
130,400,000.00 130,400,000.00
instruments
Other non-current financial
30,260,000.00 30,260,000.00
assets
1.2 Book value of various financial liabilities on the balance sheet date
(1) June 30, 2022
Unit: RMB
Item Financial liabilities measured at fair value and Other financial liabilities Total
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
with variation reckoned into current
gains/losses
Short-term borrowings 1,251,590,694.36 1,251,590,694.36
Accounts payable 209,816,016.77 209,816,016.77
Other payables 95,703,431.68 95,703,431.68
Non-current liabilities due within
547,313,044.67 547,313,044.67
one year
lease liability 524,208,664.69 524,208,664.69
(2) December 31,2021
Unit: RMB
Financial liabilities measured at fair value and
Item with variation reckoned into current Other financial liabilities Total
gains/losses
Short-term borrowings 3,152,945,812.59 3,152,945,812.59
Accounts payable 282,032,916.52 282,032,916.52
Other payables 129,043,599.22 129,043,599.22
Non-current liabilities due within
531,876,007.31 531,876,007.31
one year
lease liability 635,691,184.87 635,691,184.87
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
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’
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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, 2022
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 1,251,590,694.36 1,251,590,694.36
Accounts payable 209,816,016.77 209,816,016.77
Other payables 95,703,431.68 95,703,431.68
Non-current liabilities due
564,480,165.66 564,480,165.66
within one year
lease liability 542,119,766.21 10,793,617.00 552,913,383.21
Continued table:
Item December 31, 2021
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 3,152,945,812.59 3,152,945,812.59
Accounts payable 282,032,916.52 282,032,916.52
Other payables 129,043,599.22 129,043,599.22
Non-current liabilities due
550,685,331.89 550,685,331.89
within one year
lease liability 650,123,884.68 22,037,457.51 672,161,342.19
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
4.2. Exchange rate risk
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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 2,174,249.66 30,260,000.00 32,434,249.66
(1) Financial asset at fair value
2,174,249.66 30,260,000.00 32,434,249.66
through profit or loss
① Debt instruments 2,174,249.66 30,260,000.00 32,434,249.66
3. Other equity instruments 130,400,000.00 130,400,000.00
Total assets measured continuously
2,174,249.66 160,660,000.00 162,834,249.66
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.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
the time point of the conversion 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
Explanation of the parent company of 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, 2022, 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”.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
3. Joint ventures and associates of the Company
The important joint ventures or associates of the Company are detailed in the notes IX (3) “Interests in joint
arrangements or joint ventures”.
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
Beijing Offcn Future Education Technology Co., Ltd. Associates
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
Beijing Qianqiu Intelligence Book & Media Co., Ltd. Same ultimate controller
Zhanjiang Xiashan Offcn Training Centre Same ultimate controller
Baoding Lianchi Offcn Training School Same ultimate controller
Cangzhou Yunhe Offcn Training School Same ultimate controller
Chengdu Wuhou Offcn Training School Same ultimate controller
Handan Congtai Offcn Training School Same ultimate controller
Heihe Aihui Offcn Training Centre Same ultimate controller
Kiamusze Offcn Training School Same ultimate controller
Leshan Shizhong Offcn Training School Same ultimate controller
Mudan Offcn Training School Same ultimate controller
Shaoyang Shuangqing Offcn Training School Same ultimate controller
Tangshan Lunan Offcn Training School Same ultimate controller
Urumchi Saybagh Offcn Training Centre Same ultimate controller
Shenyang LijingMingzhu Hotel Management Co., Ltd. A company controlled by the directors of the Company
Beijing Taifu Hotel Management Co., Ltd. A company controlled by the directors of the Company
Beijing Chuangsheng Construction Decoration Engineering
A company controlled by the directors of the Company
Co., Ltd.
Shanghai Beiding Network Technology Co., Ltd. A company controlled by the directors of the Company
Ji'an Jingkai Lixiangxue Financial Information Service Co.,
A company controlled by the directors of the Company
Ltd.
Shaanxi Guancheng Industrial Co., Ltd. A company controlled by the directors of the Company
The Company’s director/ senior manager/ shareholder who
Wang Zhendong directly hold more than 5% (including 5%) of the Company’s
shares
Shi Lei Director of the Company
Yi Ziting Director of the Company
Chen Yuqin Independent director of the Company
Jiang Tao Independent director of the Company
Zhang Xuanming Independent director of the Company
Independent director of the Company(Term: February 1, 2019
Wang Qiang
to January 28, 2022)
Independent director of the Company(Term: February 1, 2019
Tong Yan
to January 28, 2022)
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Yu Hongwei Supervisor of the Company
Li Wen Supervisor of the Company
He Di Supervisor of the Company
He Youli Senior management of the Company
Gui Hongzhi Senior management of the Company
Luo Xue Senior management of the Company
Senior management of the Company(Term: February 1, 2019 to
Wang Xuejun
January 28, 2022)
Other information:
5. Related-party transactions
(1) Related transactions in the purchase and sale of goods, and provision and receipt of labor services
Table of the procurement of goods/ acceptance of labor services
Unit: RMB
Whether it exceeds
Content of related Amount for the Transaction Amount for the
Related parties the transaction
party transaction current period amount granted previous period
limit (Y/N)
Zhanjiang Xiashan
Joint school
Offcn Training 160,000.00 N 140,000.00
running
Centre
Baoding Lianchi
Joint school
Offcn Training 70,000.00 N 50,000.00
running
School
Handan Contai
Joint school
Offcn Training 55,000.00 N 50,000.00
running
School
Leshan Shizhong
Joint school
Offcn Training 45,000.00 N 40,000.00
running
School
Tangshan Lunan
Joint school
Offcn Training 40,000.00 N 50,000.00
running
School
Cangzhou Yunhe
Joint school
Offcn Training 30,000.00 N 50,000.00
running
School
Mudan Offcn Joint school
24,500.00 N 27,500.00
Training School running
Kiamusze Offcn Joint school
21,500.00 N 30,000.00
Training School running
Heihe Aihui Offcn Joint school
9,000.00 N 31,500.00
Training Centre running
Chengdu Wuhou
Joint school
Offcn Training 0.00 N 50,000.00
running
School
Urumchi Saybagh
Joint school
Offcn Training 0.00 N 143,500.00
running
Centre
Shaoyang
Joint school
Shuangqing Offcn 0.00 N 60,000.00
running
Training School
Ji'an Jingkai Service charge 53,826,973.44 78,000,000.00 N 104,824,220.00
181
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Lixiangxue
Financial
Information
Service Co., Ltd.
Shanghai Beiding
Network
Service charge 0.00 N 1,320,000.00
Technology Co.,
Ltd.
Beijing Taifu Accommodation
Hotel Management and catering 0.00 N 11,802,340.00
Co., Ltd. services
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 1,682,075.47 1,435,849.06
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
33 private All reasonable
October 19,
Li Yongxin Offcn Ltd. non-enterprise returns on the 0.00
2018
schools entrusted assets
Total 0.00
Explanations for related entrustment and contracting:
None
The table of the Company’s entrusted management and outsourcing
Unit: RMB
182
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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
(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 charges for
Variable lease
short-term leases
payments not
and leases of
included in the Interest expense on Increased
low-value assets Rent paid
measurement of lease liability right-of-use assets
Name with simplified
Categor the lease liability
of processing (if
y (if applicable)
lessor applicable)
Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun Amoun
t for t for the t for t for the t for t for the t for t for the t for t for the
this previou this previou this previou this previou this previou
period s period period s period period s period period s period period s period
Shenya
ng
Lijing
Mingzh
Operati 25,030, 25,030, 1,065,1 7,928,2
u Hotel
ng lease 700.00 700.00 85.72 50.52
Manage
ment
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
183
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
The Company as the guaranteed party
Unit: RMB
Guarantee expiration Whether the guarantee
Guarantor Guarantee amount Guarantee start date
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
Content of the related party
Related party Amount for the current period Amount for the previous period
transaction
Beijing Chuangsheng
Construction Decoration purchase assets 155,160.00
Engineering Co., Ltd.
Total 155,160.00
(7) Remuneration for key management personnel
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
2,410,085.37 3,190,424.12
personnel
(8) Other related transactions
Commissioned decoration/engineering
Unit: RMB
184
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Amount for the current period Amount for the previous period
Related party Pricing basis
Contract amount Amount incurred Contract amount Amount incurred
Beijing Chuangsheng Construction Negotiated
25,304,690.00
Decoration Engineering Co., Ltd. price
Total 25,304,690.00
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 1,783,000.00
receivables
& Media Co., Ltd.
Shenyang Lijing
Mingzhu Hotel
Other receivables 5,675,200.00 5,675,200.00
Management Co.,
Ltd.
Beijing Offcn
Other non-current Future Education
1,618,411,145.38 1,618,391,145.38
assets Technology Co.,
Ltd.
Total 1,625,869,345.38 1,624,066,345.38
(2) Payables
Unit: RMB
Item Related party Closing book balance Opening book balance
Beijing Chuangsheng Construction
Accounts receivables 19,506,981.00 59,506,981.00
Decoration Engineering Co., Ltd.
Accounts receivables Shaanxi Guancheng Industrial Co., Ltd. 83,060,000.00 83,060,000.00
Ji'an Jingkai Lixiangxue Financial
Other receivables 23,079,267.93 57,000,000.00
Information Service Co., Ltd.
Total 125,646,248.93 199,566,981.00
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
7. Commitments of related parties
None
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
None
2. Contingencies
(1) Important contingencies on balance sheet date
None
186
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(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
None
3. Sales return
None
4. Other matters subsequent to the balance sheet date
None
Section XVI. Other important matters
1. Corrections of accounting errors of previous period
(1) Retrospective restatement
Unit: RMB
Report item of the affected
Corrections of accounting errors Processing procedures Cumulative impact
comparison period
(2) Prospective application
Reasons for adopting prospective
Corrections of accounting errors Approval procedure
application
2. Debt restructuring
None
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
3. Assets exchange
(1) Non-monetary asset exchange
(2) Other assets exchange
4. Pension plan
None
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:
None
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
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.
None
(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
2,216,651,869.28 4,828,531,538.19
Including: Education and training
2,216,651,869.28 4,828,531,538.19
Other businesses
10,053,092.83 27,466,725.31
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Total
2,226,704,962.11 4,855,998,263.50
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
2,226,704,962.11 4,855,998,263.50
Total
2,226,704,962.11 4,855,998,263.50
③The dependence of the Company on its major customers
The Company’s customers, with a large quantity, are relatively scattered, and thus there is no dependence on
major customers.
7. Other important transactions and events having impacts on decisions of investors
None
8. Others
None
Section XVII. Notes to the parent company’s financial statements
1. Receivables
(1) Classified disclosure of receivables
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Item Book Book
Proporti Propor value Proporti Proport
Amount Amount Amount Amount value
on tion on ion
Including:
Accounts
receivables for
which bad debt 27,88
31,373,79 100.00 3,493,29 11.13 31,141, 100.00 2,335,6 28,806,09
0,498 7.50%
provision has been 1.18 % 2.65 % 726.98 % 29.53 7.45
.53
assessed by credit
risk portfolios
Including:
27,88
Combination 3 31,373,79 100.00 3,493,29 11.13 31,141, 100.00 2,335,6 28,806,09
0,498 7.50%
1.18 % 2.65 % 726.98 % 29.53 7.45
.53
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
27,88
Total 31,373,79 100.00 3,493,29 31,141, 100.00 2,335,6 28,806,09
0,498
1.18 % 2.65 726.98 % 29.53 7.45
.53
Bad debt provision assessed by credit risk portfolios: RMB3,493,292.65
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Combination 3 31,373,791.18 3,493,292.65 11.13%
Total 31,373,791.18 3,493,292.65
Explanations of the basis for determining the portfolios：
Category Basis of determining the portfolio
Combination 1 Receivables from related companies
Combination 2 Receivables for hotel services
Combination 3 Other receivables
If the bad debt provision of receivables is based on the general model of expected credit loss, please refer to the
disclosure methods of other receivables about the relevant information of bad debt provision:
□ Applicable Not applicable
Disclosure by account age
Unit: RMB
Account age Closing balance
Within 1 year (included) 8,162,528.15
1-2 years 15,570,863.62
2-3 years 7,640,399.41
Total 31,373,791.18
(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
Category Recovery or
balance Provision Written-off Others balance
reversal
Bad debts provision for
2,335,629.53 1,157,663.12 3,493,292.65
of accounts receivables
Total 2,335,629.53 1,157,663.12 3,493,292.65
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Significant amount of recovery or reversal of bad debts in current period:
Unit: RMB
Amount of recovery or
Name of institutions Method of recovery
reversal
(3) Receivables written-off in current period
Unit: RMB
Item Written-off amount
Important receivables written-off:
Unit: RMB
Whether the account
Nature of written-off procedure receivables was
Creditor Written-off amount Reasons
receivables implemented generated from
related transactions
Statement of receivables written-off:
(4) Accounts receivables of the top five debtors based on the ending balance
Unit: RMB
Closing balance of accounts Proportion to the ending Closing balance of bad debt
Creditor
receivable balance of accounts receivable provision
Yaxia Industrial 31,141,726.98 99.26% 3,481,689.44
Customer 1 41,490.00 0.13% 2,074.50
Customer 2 39,510.00 0.13% 1,975.50
Customer 3 36,690.00 0.12% 1,834.50
Customer 4 31,411.00 0.10% 1,570.55
Total 31,290,827.98 99.74%
(5) Receivables derecognized due to the transfer of financial assets
(6) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
Other information:
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 21,702,687.86 20,699,731.33
Total 21,702,687.86 20,699,731.33
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
(1) Interest receivables
1) Classification of interest receivables
Unit: RMB
Item Closing balance Opening balance
2) Important overdue interest
Unit: RMB
Whether impairment
Borrower Closing balance Overdue time Reason occurs and the judgment
basis
Other information:
3) Bad debt provision
□Applicable Not applicable
(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
Whether impairment
Cause of recovery
Project (or investee) Closing balance Account age occurs and the judgment
failure
basis
3) Bad debt provision
□Applicable Not applicable
Other information:
(3) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Item Closing balance Opening balance
Current payment 21,697,087.86 20,694,131.33
Deposits and guarantees 5,600.00 5,600.00
Total 21,702,687.86 20,699,731.33
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2) Bad debt provision
Unit: RMB
First stage Second stage Third stage
Expected credit loss in the
Bad debt provision Expected credit loss in the Total
Expected credit loss whole duration whole duration
in the next 12 months (credit impairment has
(no credit impairment ).
occurred)
January 1, 2022
balance in the current
period
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) 2,132,490.05
1 to 2 years 1,108,471.98
2 to 3 years 3,649,387.72
more than 3 years 14,812,338.11
3-4 years 14,812,338.11
Total 21,702,687.86
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 Recovery or Closing balance
Provision Written-off Others
reversal
Important recovery or reversal of bad debt in current period:
Unit: RMB
Amount of recovery or
Creditor Recovery method
reversal
4) Other receivables written off in current period
Unit: RMB
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Item Written-off amount
Important other receivables written-off:
Unit: RMB
Whether the account
Nature of other written-off procedure receivables was
Creditor Written-off amount Reasons
receivables implemented generated from
related transactions
Explanation of other receivables written-off:
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
Bozhou Yaxia Motor Vehicle Driver Current
10,572,962.49 Within 4 years 48.72%
Training School Co., Ltd. payment
Wuhu Yawei Automobile Sales Current
3,955,077.26 Within 4 years 18.22%
Service Co., Ltd. payment
Suzhou Bokai Automobile Sales Current
3,854,545.48 Within 4 years 17.76%
Service Co., Ltd. payment
Huangshan Yaxia Fudi Automobile Current
2,067,252.57 Within 4 years 9.53%
Sales Service Co., Ltd. payment
Chaohu Yaxia Kaixuan Automobile Current
473,832.06 Within 4 years 2.18%
Sales Service Co., Ltd. payment
Total -- 20,923,669.86 96.41%
6) Receivables related to government subsidies
Unit: RMB
Time, amount and basis of
Name of institutions Government subsidies Closing balance Closing account age
expected collection
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
Other information:
194
Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
None
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Provision Provision
Item for for
Book balance Book value Book balance Book value
impairme impairme
nt nt
Investment in 19,143,591,207.
19,143,591,207.14 19,143,591,207.14 19,143,591,207.14
subsidiaries 14
Investment in
associates and 37,317,091.22 37,317,091.22 46,824,788.00 46,824,788.00
joint ventures
19,180,908,298.
Total 19,180,908,298.36 19,190,415,995.14 19,190,415,995.14
36
(1) Investment in subsidiaries
Unit: RMB
Increase and decrease in current
period Closing
Opening balance Additi Invest Closing balance balance of
Investee Provision
(book value) onal ment (book value) provision for
for Oth
invest reducti impairme ers impairment
ment on nt
Offcn Ltd. 18,500,000,000.00 18,500,000,000.00
Lu’an Zhongke Real Estate
Information Consulting Co., 489,131,700.00 489,131,700.00
Ltd.
Lu’an Yazhong Real Estate
Information Consulting Co., 72,151,600.00 72,151,600.00
Ltd.
Wuhu Yawei Automobile
23,000,000.00 23,000,000.00
Sales Service Co., Ltd
Bozhou Yaxia Motor Vehicle
Driver Training School Co., 20,000,000.00 20,000,000.00
Ltd.
Ningguo Yaxia Motor
Vehicle Driver Training 17,474,782.14 17,474,782.14
School (Co., Ltd.)
Suzhou Bokai Automobile
11,833,125.00 11,833,125.00
Sales Service Co., Ltd.
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
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.
Total 19,143,591,207.14 19,143,591,207.14
(2) Investment in associated enterprises and joint ventures
Unit: RMB
Increase and decrease in current period
Closing
Investmen Other balance
Opening t gains Closing
Compre Provision of
balance and losses Other Declared balance
provisi
Investor Additional Investment hensive cash
(Book Equity for (Book
recognize Others on for
value) investment reduction d under income dividends impairme value)
changes or profits impairme
the equity adjustm nt
nt
ent
method
I Joint ventures
II Associates
Beijing
Offcn
Future
Education 46,824,78 -9,507,69 37,317,09
8.00 6.78 1.22
Technolog
y Co.,
Ltd.
Subtotal 46,824,78 -9,507,69 37,317,09
8.00 6.78 1.22
Total 46,824,78 -9,507,69 37,317,09
8.00 6.78 1.22
(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 427,884.19 5,597,571.75 7,278,174.71 5,632,943.03
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
Total 427,884.19 5,597,571.75 7,278,174.71 5,632,943.03
Income related information:
Unit: RMB
Contract
Segment 1 Segment 2 Total
Classification
Obligation performance related information:
None
Information related to the transaction price allocated to the remaining performance obligations:
The income from the unfulfilled or uncompleted obligations with signed contracts at the end of the reporting
period: RMB0.00. Among them, RMB0.00 is expected to be recognized as revenue in year 0, RMB0.00 is
expected to be recognized as annual revenue, and RMB0.00 is expected to be recognized as annual revenue.
Other information:
None
5. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Long-term equity investment income by the equity
-9,507,696.78
method
Dividend income from holding other equity
1,659,840.00 1,327,872.00
instrument investments
Financing income 74,257.03 2,630.21
Total -7,773,599.75 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 58,877.23
Government subsidies included in the current profit and loss (
except for the government subsidies that are closely related to the Company’s normal
18,434,136.00
business operations and continuously enjoyed based on certain standards or quotas in
accordance with national policies and regulations)
Profit or loss from entrusting others to invest or manage assets 5,611,244.87
Gains and losses from changes in fair value arising from the holding of tradable -3,435,742.21
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
financial assets and liabilities, and from the disposal of tradable financial assets and
liabilities and available-for-sale financial assets, except for the effective hedging
business related to the normal operation of the Company
Non-operating income and expenses other than the above -4,372,388.19
Less：Amount impacted by income tax 3,588,533.77
Total 12,707,593.93 --
Details of other profit and loss items that meet the definition of non-recurring profit and loss:
□ Applicable Not applicable
The Company has no circumstances of other profit and loss items that meet the definition of non-recurring profit
and loss.
Provide statements for classifying non-recurring profit and loss items, which are 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
Earnings per share
Weighted average
Profit in the reporting period return on Basic earnings per Diluted earnings
share per share
net assets (%)
(RMB/share) (RMB/share)
Net profit attributable to common shareholders
-61.73% -0.14 -0.14
of the Company
Net profit attributable to common shareholders of the Company
-62.61% -0.15 -0.15
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 Chinese Accounting Standards
□ Applicable Not applicable
(3) Explanation of the differences in accounting data under domestic and overseas accounting standards. If
overseas audit institutions have made adjustments for the differences, their names shall be indicated.
None
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Offcn Education Technology Co., Ltd. 2022 Semi-Annual Report
4. Others
None
199
