OFFCN EDUCATION TECHNOLOGY CO., LTD.
2023 Semi-Annual Report
Stock Code: 002607
Stock Abbr.: OFFCN EDU
August, 2023
Offcn Education Technology Co., Ltd. 2023 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.
The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by
converting capital reserve.
The Company’s 2023 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. 2023 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 .................................................................................................................................... 8
Chapter 4 Corporate Governance ........................................................................................................................................................... 25
Chapter 5 Environmental and Social Responsibilities ........................................................................................................................... 26
Chapter 6 Significant Events .................................................................................................................................................................. 27
Chapter 7 Share Changes and Shareholders ........................................................................................................................................... 39
Chapter 8 Preferred Shares ..................................................................................................................................................................... 45
Chapter 9 Corporate Bonds .................................................................................................................................................................... 46
Chapter 10 Financial Statements ............................................................................................................................................................ 47
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Documents Available for Reference
I. The full text of 2023 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. 2023 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)
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. 2023 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 Xueqing
Address
Road, Haidian District, Beijing, China Road, Haidian District, Beijing, China
Tel 010-83433677 010-83433677
Fax 010-83433666 010-83433666
E-mail ir@offcn.com ir@offcn.com
Section III. Other information
1. Company contact information
Whether the Company ’ s registered address, office address and its postal code, website and/or email address
changed during the reporting period
□ Applicable Not applicable
The Company ’ s registered address, office address and its postal code, website and email address remain the
same during this reporting period. Details can be found in 2022 Annual 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 stock exchange website, media name and websites designated by the Company for information disclosure,
and storage location of this semi-annual report remain the same during the reporting period. Details can be
found in 2022 Annual Report.
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Offcn Education Technology Co., Ltd. 2023 Semi-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 reporting Same period of the current reporting period
period previous year over same period of the
previous year
Revenue (RMB) 1,728,338,446.75 2,226,704,962.11 -22.38%
Net profit attributable to shareholders of the listed
81,981,744.79 -890,931,710.33 109.20%
Company (RMB)
Net profit attributable to shareholders of the listed
Company after deducting non-recurring gains or losses 83,192,645.63 -903,639,304.26 109.21%
(RMB)
Net cash flow from operating activities (RMB) -528,812,182.67 1,032,982,411.32 -151.19%
Basic earnings per share (RMB/share) 0.01 -0.14 107.14%
Diluted earnings per share (RMB/share) 0.01 -0.14 107.14%
Weighted average return on net assets 9.99% -61.73% 71.72%
Increase/decrease at the
End of current End of the previous end of this reporting period
reporting period year over end of the previous
year
Total assets (RMB) 8,154,625,310.27 8,027,414,353.26 1.58%
Total net assets attributable to shareholders of the listed
861,915,680.56 779,933,935.77 10.51%
Company (RMB)
Section V. Differences of accounting data under domestic and overseas accounting
standards
1. Differences between net profits and net assets disclosed in the financial reports under Chinese accounting
standards and international accounting standards:
□ Applicable Not applicable
There is no difference between the net profits and net assets disclosed in the financial reports of the Company
under Chinese accounting standards and international accounting standards during the reporting period.
2. Differences between net profits and net assets disclosed in the financial reports under Chinese accounting
standards and overseas accounting standards:
□ Applicable Not applicable
There is no difference between the net profits and net assets disclosed in the financial reports of the Company
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
-3,310,651.17
offsetting 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,
2,245,077.55
which are in accordance with national policies and continuously
enjoyed in accordance with certain standards or quotas)
Profit or loss from entrusting others to invest or manage assets 2,429.11
Other non-operating income and expenses except for the items
-314,728.01
above
Less: Impact on income tax -166,971.68
Total -1,210,900.84
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 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. 2023 Semi-Annual Report
Chapter 3 Management Discussion and Analysis
Section I. The Company’s main business during the reporting period
1. The main business, products and business model of the Company during the reporting period
Offcn Edu is a leading provider of public employment and re-employment service in China. The Company
focuses on providing personalized and specialized employment training services for knowledge-based
employment groups such as college students, college graduates and various professionals, and is committed to
meeting their needs in employment and vocational skills improvement.
Serving hundreds of millions of knowledge-based people in China, the Company's main business spans
three major sectors: public service job recruitment examination training, training for academic improvement
examination, and training for vocational qualification and professional ability. The Company provides more
than 100 categories of comprehensive employment training services.
After a long period of exploration and accumulation, the Company now has more than 1,000 direct outlets
across the country, covering more than 300 prefecture-level cities in depth. The Company currently has about
13,000 employees, including a full-time R&D team of more than 1,000 and a large-scale teacher team of more
than 5,000.
In recent years, the Company has actively expanded its business territory with excellent team execution
and vertical integrated fast response capability across the country. The Company has entered the fields of
integration of production and education, talent training for rural revitalization, human resources services and
etc., aiming to better serve various employment groups and help them to achieve high-quality full employment.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
2. Overview of the industry and business environment
(1) “Employment” has been raised to an unprecedented strategic height.
Employment is the foundation of people's livelihood. In 2018, the Central Economic Work Conference
proposed the policy of “Employment First” for the first time.
In the 2019 government work report, the “Employment First” policy was placed on the macro policy level
for the first time, and was listed as one of the three macro-control policies along with fiscal policy and monetary
policy. The report also proposed that the pro-employment policies should be fully implemented, and multiple
measures should be taken to stabilize and expand employment.
In 2020, the importance of employment was even more prominent characterized by that it was given top
priority among other measures to ensure “Stability on the Six Fronts and Security in the Six Areas”. The
government work report called for comprehensively strengthening the pro-employment policies, doing
everything possible to stabilize and expand employment, and strengthening employment support for key
industries and key groups.
In the following two years, the pro-employment policies continued to be strengthened. The 2021
government work report called for facilitating employment of key groups such as college graduates, retired
soldiers, and migrant workers, improving the employment assistance policies for the disabled, zero-employment
family members and other people with difficulties in finding jobs, promoting the reemployment of the
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
unemployed, supporting and standardizing the development of new employment forms, etc.
In October 2022, the report of the 20th National Congress of CPC clearly proposed to implement the
employment first strategy, strengthen the pro-employment policies, improve the employment promotion
mechanism, and facilitate high-quality full employment.
In July 2023, the meeting of the Political Bureau of CPC Central Committee emphasized that the measures
to ensure people's livelihood should be enhanced and stabilizing employment should be regarded as one of the
national strategies and be considered from every possible angle.
(2) Employment promotion policies are introduced intensively in many places.
In April 2023, the General Office of the State Council issued the “Notice on Optimizing and Adjusting
Employment Stabilization Policies and Measures and Going All out to Promote Development and Improve
People's Livelihood” clearly proposing to expand channels to promote employment and entrepreneurship of
young people such as college graduates. The measures include encouraging enterprises to create jobs and
encouraging and guiding basic level employment; supporting state-owned enterprises to expand recruitment;
stabilizing jobs in government agencies and public institutions, etc. Then in July, provincial or municipal
policies and measures to promote employment of young people were introduced in Guangdong, Shanghai,
Jiangsu, Anhui, Liaoning, Chongqing, Fujian, Sichuan, Hunan, Yunnan, Hainan, Gansu and other places.
From the perspective of key policy measures, many places have mentioned expanding policy posts and
putting more emphasis on basic level employment and employment in state-owned enterprises, government
agencies and public institutions. For example, Shaanxi Province issued the “Six Measures to Support the
Employment and Start-ups of College Graduates”, expanding the number of policy posts in state-owned
enterprises and public institutions to 85,500; Human Resources and Social Security Department of Jiangsu
plans to complete the recruitment of 110,000 policy posts by the end of August; while expanding market jobs,
Hunan has made every effort to develop and implement policy jobs and has sorted out a total of 149,600 policy
jobs.
At the same time, many places also proposed to implement policies such as vocational training subsidies.
For example, Shanxi Province proposed to enhance support for skills training, accurately implement order-
based and project-based training, and provide multi-tiered subsidies according to occupational types based on
the construction of ten major platforms and the need of industrial development; Guangdong specified that we
should give full play to skills training to promote employment, make full use of special funds for vocational
skills improvement, employment subsidy funds, unemployment insurance funds, enterprise employee education
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
funds, and etc., and provide training subsidies and other supports in accordance with regulations.
(3) Flexible employment fosters diverse training needs.
In line with the new trend of industrial restructuring, new business forms and new demands have emerged,
and new employment forms and new occupations have flourished. This year's “Government Work Report”
pointed out that new employment forms and flexible employment have become important ways of increasing
employment and income. According to the survey data of the National Bureau of Statistics, in 2021, China had
about 200 million people in flexible employment. The emerging new employment forms have become a part of
the job market that cannot be underestimated, and have also become an important employment choice especially
for the young people.
The new employment form is relatively free from the limit of time and space but that also determines this
type of occupation has higher and wider demand for professional knowledge and skills. The rise of this work
style has fostered diverse training needs and brought new opportunities to the employment training industry.
(4) Trends of the industry’s future development
①The continuous growth of the number of college graduates is an important indicator of the
employment situation.
Generally speaking, a faster growing economy can bring a higher employment level. In recent years,
economic growth has slowed down, but the number of college graduates has continued to grow, reaching 11.58
million this year, setting a new historical record.
College graduates account for more than half of the annual demand of over 15 million new jobs, and the
bonus period for the export of cheap rural labor has come to an end. The expansion of university enrollment has
obviously and directly accelerated the arrival of the 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.
②The serious shortage of high-quality supply is the main contradiction that restricts the development
of the vocational education industry.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
At present, the foundation of vocational education is still weak. Due to the extremely low concentration of
the industry and the limited number of large vocational education institutes and enterprises, the supply of high-
quality vocational education is seriously insufficient. In the future, with the improvement of industry
concentration and the continuous development of leading vocational education enterprises, core business
elements such as R&D, management and marketing of vocational education will gradually break through the
original boundaries of the industry, 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.
③The 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 requires the realization of equalized basic public services
and the main goal of economic and social development during the “14th Five-Year Plan” period requires 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
In the first half of 2023, the domestic economy as a whole showed a recovery trend, but it still faced
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
constraints such as insufficient demand and structural contradictions intertwined with cyclical problems. There
is still a lot of room for improvement in residents' consumption power and willingness. In the face of market
uncertainty, the Company responded to market changes with a prudent and steady strategy, shifted from scale to
efficiency, focused on profit collection, actively adjusted product structure, strengthened refined management,
and reshaped the organizational structure to bring the Company’s operation back to normal track, thus achieving
positive profit growth in the first half of the year. During the reporting period, the Company realized a total
operating revenue of RMB 1.728 billion and a net profit attributable to shareholders of the listed company of
RMB 81.9817 million, an increase of 109.20% over the same period of the previous year. Net profit attributable
to shareholders of the parent company after deducting non-recurring gains and losses was RMB 83.1926 million,
an increase of 109.21% over the same period of the previous year.
(1) Optimize cost structure and improve operational efficiency. In the first half of the year, the Company
actively adjusted staff allocation, optimized business layout and adhered to lean resource planning and cost
control, by which it achieved good results. During the reporting period, the Company's operating costs
decreased by 52.97% year-on-year, and sales expenses decreased by nearly 50% year-on-year. The gross
margin in the first half of the year was 56.20%, an increase of 28.5 percentage points compared with the same
period of last year. The gross margin in the second quarter increased by 7.33 percentage points compared with
the first quarter.
(2) Technology empowers business development and Artificial Intelligence & Education Research Institute
is established. At present, artificial intelligence technology has penetrated into all walks of life and vertical
fields such as vocational ability improvement and training have also become the major fields where AI can be
applied. In order to promote the transformation and innovation of the Company's business, during the reporting
period, the Company established Artificial Intelligence&Education Research Institute to gradually explore the
application and innovation of technologies such as digital humans and generative large language models in the
vertical field of employment services and facilitate the improvement of resource efficiency.
In the next stage, with the stabilization and recovery of the domestic economy and the gradual
improvement of consumption expectations, the Company will also seize the opportunity to further strengthen
the employment service training of various sequences, accelerate the development of new businesses, and
continue to fix the problems in operation and management in order to make the Company's performance achieve
gradual recovery and stability.
The key operating resources and performance indicators during the reporting period are shown in the table
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
below:
Increase/decrease
at the end of the
At the end of the At the end of last
Item Indicators reporting period
reporting period year
from the end of
last year
Directly-operated branches 1,035 1,113 -7.01%
Employees 13,001 22,652 -42.61%
Operating
resources
R&D personnel 1,164 1,694 -31.29%
Teachers 5,196 9,024 -42.42%
Increase/decrease
in the current
The current The same period of reporting period
Item Indicators
reporting period last year from the same
period of last
year
Revenue of face-to-face training (RMB) 1,066,647,924.53 1,368,356,235.83 -22.05%
Revenue of online training (RMB) 642,971,432.11 848,295,633.45 -24.20%
Business and
Number of training participants 1,417,079 1,841,785 -23.06%
profits
Operating income (RMB) 1,728,338,446.75 2,226,704,962.11 -22.38%
Net profits attributable to
81,981,744.79 -890,931,710.33 109.20%
shareholders of the listed Company(RMB)
Section II. Analysis of the Company’s core competitiveness
The Company's core competitiveness lies in the formation of an enterprise platform driven by the capability
of vertical integrated fast response. The key driving factors are as follows:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 1,000 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 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 1,000 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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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.
4. The values of kindness and altruism are ubiquitous and flourishing.
As a knowledgeable staff-intensive training institution for employment service, 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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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, 2023, the Company has around 3,000 Party members, accounting for over one fifth of the
total number of employees.
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
Current reporting Same period of last
increase Reasons for changes
period year
or
decrease
Operating Mainly due to the Company’s product structure
1,728,338,446.75 2,226,704,962.11 -22.38%
income adjustment and lower money collection than expected.
Mainly due to the Company's measures such as
comprehensive adjustment of product structure, cost
reduction and efficiency increase, and accelerated
Operating integration of online and offline courses, so that the
757,031,789.68 1,609,828,642.68 -52.97%
cost
Company’s operating costs are well controlled, personnel
are optimized, and labor expenses are reduced
accordingly.
Mainly due to the Company’s cost reduction and
Sales efficiency increase resulting in reduction on market
351,925,858.15 701,766,026.73 -49.85%
expenses operating expenses, optimizing on sales personnel and
reduction on labor cost.
Mainly due to the Company’s cost reduction and
Management efficiency increase resulting in reduction on management
265,963,797.73 472,072,638.67 -43.66%
expenses cost, optimizing management personnel and reduction on
labor cost.
Mainly due to the fact that there is no bank loan interest
Financial
68,104,606.22 142,651,288.82 -52.26% and the decrease of financial institution handling fee in
expenses
this period.
Mainly due to the achieving of profit in this period and
Income tax 32,253,744.80 -140,436,954.64 122.97%
the accrual of corporate income tax.
Mainly due to the Company’s cost reduction and
R&D
148,591,052.63 327,590,103.90 -54.64% efficiency increase resulting in reduction on R&D cost,
investment
optimizing R&D personnel and reduction on labor cost.
Mainly due to the Company’s product structure
Net cash
adjustment, great reduction in the proportion of high
flow from
-528,812,182.67 1,032,982,411.32 -151.19% refund courses and transformation to the model which has
operating
a higher proportion of paid courses, resulting in decrease
activities
in cash received from selling goods and services.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Net cash
Mainly due to the decrease in short-term financial
flows from
-129,589.59 310,394,650.18 -100.04% purchases and the corresponding decrease in financial
investing
redemption in this period.
activities
Net cash
Mainly due to the increase in shareholders’ borrowings in
flow from
899,815,433.46 -2,187,990,182.13 141.13% this period and the repayment of short-term borrowings in
financing
the previous period.
activities
Net increase
Mainly due to the increase in shareholders’ borrowings in
in cash and
370,873,661.20 -844,613,120.63 143.91% this period and the repayment of short-term borrowings in
cash
the previous period.
equivalents
Significant changes of the components or origin of profits during the reporting period:
□ Applicable Not applicable
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
Amount Amount or
revenue revenue
decrease
Revenue 1,728,338,446.75 100% 2,226,704,962.11 100% -22.38%
Sectors
Educational training 1,709,619,356.64 98.92% 2,216,651,869.28 99.55% -22.87%
Others 18,719,090.11 1.08% 10,053,092.83 0.45% 86.20%
Categories of product
Training for civil servant
617,832,944.99 35.75% 717,894,206.69 32.24% -13.94%
test
Training for public
306,308,877.59 17.72% 435,320,029.01 19.55% -29.64%
institution test
Training for teachers’
recruitment and 251,447,869.74 14.55% 386,910,102.75 17.38% -35.01%
qualification test
Training for other public
services test and new 534,029,664.32 30.90% 676,527,530.83 30.38% -21.06%
businesses
Others 18,719,090.11 1.08% 10,053,092.83 0.45% 86.20%
Regions
Northeast China 212,497,204.51 12.29% 271,813,047.98 12.21% -21.82%
North China 315,051,082.57 18.23% 373,570,051.82 16.78% -15.66%
East China 414,425,902.18 23.98% 525,698,968.29 23.61% -21.17%
Middle China 249,247,367.07 14.42% 308,986,718.36 13.88% -19.33%
South China 145,880,294.75 8.44% 231,424,869.62 10.39% -36.96%
Southwest China 192,477,413.09 11.14% 268,491,448.80 12.06% -28.31%
Northwest China 180,040,092.47 10.42% 236,666,764.41 10.63% -23.93%
Others 18,719,090.11 1.08% 10,053,092.83 0.45% 86.20%
18
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
Investment Mainly due to investment
1,656,274.80 1.45% Uncertain
income dividends
Non-operating
314,728.01 0.28% Formed in operation Uncertain
expenses
Section V. Analysis of assets and liabilities
1. Major changes in asset composition
Unit: RMB
End of the reporting period End of last year Increase
or
Proportion Proportion decrease Explanations on major changes
Amount of total Amount of total in
assets assets proportion
Mainly due to the increase in
Monetary
756,004,299.74 9.27% 385,328,555.74 4.80% 4.47% shareholders’ borrowings in this
fund
period.
Accounts No major changes in the current
37,615,251.32 0.46% 37,323,682.88 0.46% 0.00%
receivable period.
Investment No major changes in the current
33,110,964.73 0.41% 450,260.54 0.01% 0.40%
properties period.
Long-term
No major changes in the current
equity 46,829,958.32 0.57% 46,835,952.63 0.58% -0.01%
period.
investment
No major changes in the current
Fixed assets 1,883,437,001.67 23.10% 1,970,536,339.75 24.55% -1.45%
period.
Construction No major changes in the current
326,144,606.54 4.00% 323,273,645.99 4.03% -0.03%
in progress period.
Right-of-use No major changes in the current
889,367,057.48 10.91% 1,112,202,447.58 13.86% -2.95%
asset period.
Short-term No major changes in the current
40,000,000.00 0.49% 0.00 0.00% 0.49%
borrowings period.
Mainly due to the Company’s
product structure adjustment, great
reduction in the proportion of high
Contract
3,372,173,981.81 41.35% 3,949,799,538.71 49.20% -7.85% refund courses and transformation
liabilities
to the model which has a higher
proportion of paid courses,
resulting in decrease in receipts.
19
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Lease No major changes in the current
501,240,102.13 6.15% 508,752,253.77 6.34% -0.19%
liabilities period.
2. Key overseas assets
□ Applicable Not applicable
3. Assets and liabilities measured at fair value
Applicable □ Not applicable
Unit: RMB
Profits
and
losses Accumulated Provision
from
the changes in for Amount of Amount of sales
Other
Items Opening Balance changes fair value impairment purchase in the in the current Closing Balance
in fair Changes
attributed to in current current period period
value in
current equity period
period
Financial assets
1.Transactional
financial assets
(excluding 0.00 21,400,000.00 20,400,000.00 1,000,000.00
derivative
financial assets)
4.Investment
in other equity 121,300,000.00 121,300,000.00
instruments
5.Other non-
current financial 27,680,000.00 27,680,000.00
assets
Subtotal of
148,980,000.00 21,400,000.00 20,400,000.00 149,980,000.00
financial assets
Total 148,980,000.00 21,400,000.00 20,400,000.00 149,980,000.00
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
Items Book value at the end of the period Reasons for restriction
Monetary fund 4,244,739.17 Security deposit, dormant account/without reconciliation, judicial freeze and so on
Total 4,244,739.17
Section VI. Analysis of investments
1. Overview
20
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Applicable □ Not applicable
Amount of investment during the reporting Amount of investment in the same period of last year
Variation
period (RMB) (RMB)
24,276,460.55 131,108,166.24 -81.48%
2. Major equity investment obtained during the reporting period
□ Applicable Not applicable
3. Major non-equity investment ongoing during the reporting period
□ Applicable Not applicable
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
21
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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,
production, agency, release of advertisements; job intermediary activities; radio and television program production;
Major human resource services; engaging in Internet cultural activities; publication retails; operating telecommunication
business 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
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 7,236,575,884.92
Net assets 63,769,309.61
Revenue 1,726,910,668.64
Operating
149,488,542.78
income
Net profit 116,927,118.43
Acquisition and disposal of subsidiaries during the reporting period.
Applicable □ Not applicable
Method of acquisition and disposal of Impact on the overall business
Company name
subsidiaries in the reporting period operation and performance
Tianjin Wuqing Offcn Leqing Training School Co.
New establishment No major impact
Ltd.
Major holding and participating companies:
The wholly-owned subsidiary of the Company, Beijing Offcn Education Technology Co., Ltd, earned
revenue of RMB 1.7269107 billion in the first half of 2023 with a decrease of 22.43% over the first half of 2022;
the net profits of Beijing Offcn Education Technology Co., Ltd in the the first half of 2023 is RMB 116.9271
million, with an increase of 114.07% over the same period of last year. The main reasons for the changes in the
above indicators are: in regards of industry, while the total market demand is still gradually recovering,
competitors are increasing, which results in the decline of the Company's revenue; at the company level, since
Q4 last year, the Company has actively adjusted product structure, enhanced refined management, reshaped
organizational structure, optimized channel outlets, endeavored to transform from pursuing large scale to
pursuing big profit and channeled all resources into improving profitability, by which the Company have
achieved certain results and obtained profits.
22
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Section IX. Structured entities controlled by the Company
□ Applicable Not applicable
Section X. Possible risks and responses
1. Industry policy risks
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. 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. 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 ensure the operation
is in accordance with law. At the same time, based on the R&D capabilities and channel advantages
accumulated by the Company over the years, the Company actively expanded new categories, sought new
business growth points in order to form a diversified product matrix and strengthen the Company’s sustainable
operation capabilities.
2. Market risk
The vocational education industry is encouraged by national policies, which will inevitably bring more and
more capital into the vocational education and training industry, leading to increasingly fierce market
competition, and the Company may face the impact from new competitors. At the same time, affected by the
macroeconomic environment, the training industry experienced cyclical fluctuations, shrinking demand, and
23
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
trainees’ weakening willingness to participate in training. The industry showed signs of overall contraction,
which posed a test for the Company’s operating environment. Therefore, in the long run, the resilience of
market demand is strong, but it cannot be ruled out that in the short term, it may decline due to various factors,
which will affect the enthusiasm of candidates and lead to a decline in market demand.
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
Facing market uncertainty, the Company responded to market changes with a prudent and steady strategy,
actively adjusted product structure, enhanced delicacy management, and reshaped the organizational structure.
This also brings certain risks and challenges to the stability of the Company’s core management team, which
may have an adverse impact on the Company’s stable development.
Responses: The Company continues to optimize the management system of vertical integration and fast
response, with rapid resource allocation capabilities and information feedback mechanisms, which can bring a larger
management radius, higher delivery efficiency, enhance the work collaboration level of a large number of employees,
and improve management and operation efficiency. At the same time, the Company will further improve the
employment mechanism, establish diversified incentive channels, and reduce the risk of losing the core management
team.
24
Offcn Education Technology Co., Ltd. 2023 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 Convening Disclosure
Session Type Disclosure index
Participation date date
For details, refer to the
2022 General Annual General June 26, June 27, Announcement on Resolutions of Annual
32.92%
Meeting Meeting 2023 2023 General Meeting of 2022 (No. 2023-056)
disclosed on www.cninfo.com.cn.
2. Extraordinary general meetings requested by preferred shareholders with restored voting rights:
□ Applicable Not applicable
Section II. Changes of Directors, Supervisors, and Senior Executives
□Applicable Not applicable
The Company’s directors, supervisors and senior management personnel did not have changes during the
reporting period. For details, please refer to the 2022 annual report.
Section III. The Company’s common stock profit distribution and capitalization of capital
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.
25
Offcn Education Technology Co., Ltd. 2023 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
Refer to other environmental information disclosed by key pollutant discharge units
Not applicable
Measures taken to reduce carbon emissions during the reporting period and the effects
□Applicable Not applicable
Reasons for not disclosing other environmental information
Not applicable
Section II. Social Responsibilities
The Company has not carried out targeted poverty alleviation and other work in the first half of the year.
26
Offcn Education Technology Co., Ltd. 2023 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
Commitments made by the Company involved in the assets restructuring are as follows:
Commit
Commitment Commitment Commitm Perform
Contents of commitment ment
party type ent period ance
time
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 management of the
listed Company shall be completely independent from
myself/Offcn Partnership, and from other related parties, such
as companies, enterprises or economic organizations,
controlled by myself/Offcn Partnership.
2. It is guaranteed that after the completion of this transaction,
senior executives shall work as full-time employees and
receive remuneration in the listed Company. They shall not
hold any positions other than directors or supervisors in other
companies, enterprises, or economic organizations controlled
by myself/Offcn Partnership.
3. It is guaranteed that after the completion of this transaction,
the official powers of the shareholders’ meeting and board of
directors on personnel appointments and dismissals in the
listed Company shall not be interfered.
Li Yongxin
Letter of II. Guarantee the independence of institutes of the listed
Lu Company.
Zhongfang commitment
1. It is guaranteed that after the completion of this transaction, Under
on the listed Company shall build a sound structure of corporate Apr. 27, normal
Wang maintaining governance and develop an independent and complete Long-term
Zhendong 2018 impleme
independence organizational structure.
ntation
of the listed 2. It is guaranteed that after the completion of this transaction,
Offcn the general meeting of shareholders, the board of directors,
Partnership Company
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 occupied by myself/Offcn
Partnership, and other related parties, such as companies,
enterprises or economic organizations, controlled by
myself/Offcn Partnership.
27
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
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 commitment, myself, 1. The As of the
my close relatives and other companies, enterprises or transfer of end of
economic organizations controlled by myself and my close Kairuier
the
relatives, except for Beijing Offcn Online Education Training
Technology Co., Ltd. (hereinafter referred to as Offcn Online), School in reporting
Letter of
controlled by my relatives Xu Hua and Lu Yan, and its Haidian period,
Commitment
Li Yongxin, affiliated schools which are involved in the same or similar Sept. 20, District of Kairuier
on avoiding
Lu Zhongfang businesses conducted by Offcn Ltd., other related parties are 2018 Beijing: Training
horizontal not involved in any same, similar or related businesses within 24 School in
competition conducted by the listed Company, Offcn Ltd. and its affiliated months Haidian
companies and schools. Except for serving as a director in from the
Kunming Wuhua Offcn training school, which is affiliated to date of District
Offcn Online, Li Yongxin neither holds any full-time or part- signing of
time positions nor provides consultancy at any companies or this letter Beijing
28
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
enterprises, which conduct competitive businesses with the of had been
listed Company, Offcn Ltd. and their affiliates. I also do not commitme transferre
directly or indirectly hold any equity or shares of companies nt
d to an
or enterprises conducting the same, similar or related
businesses engaged by the listed Company, Offcn Ltd. and its unrelated
2. The
affiliates. third
transfer of
party.
Kunming
II. As of the date of signing this letter of commitment, Offcn Other
Online and its two subordinate training schools’ disposals are Wuhua
commitm
as follow: Offcn Online conducts no education businesses (to Offcn
ents are
be deregistered after subordinate schools being transferred). Training
under
Kairuier Training School subordinate to Offcn Online in School
normal
Haidian District of Beijing is to be transferred to an unrelated subordinat
third party and the organizer’s equity transfer agreement has impleme
e to Offcn
been signed. If the transfer is not completed within 24 months ntation.
Online:
since the date of signing this letter of commitment, I will urge
Offcn Online to deregister the Kairuier Training School in within 12
Haidian District of Beijing. Kunming Wuhua Offcn Training months
School, subordinate to Offcn Online, has been closed and it after the
will be transferred to an unrelated third party or will be revised
deregistered within 12 months after the revised Regulations Regulation
for the Implementation of the Law on the Promotion of Private
s of
Education of the People ’ s Republic of China (hereinafter
referred to as Regulations of Implementation) is officially Implement
promulgated and implemented and supporting regulations ation is
formulated by relevant local education authorities in officially
accordance with the revised Regulations of Implementation promulgat
comes into effect. ed and
implement
III. As of the date of signing this letter of commitment, Offcn
ed and
Ltd. as the organizer, intends to transfer its 100% of the
organizer’s rights and interests of 33 private schools for non- supporting
academic qualifications to Li Yongxin and singed the regulations
Agreement on Transfer of Organizer’s Rights of Private Non- formulated
enterprise Schools Affiliated to Beijing Offcn Education by relevant
Technology Co., Ltd.. Li Yongxin is willing to entrust the local
transferred 33 private schools for non-academic qualifications education
to Offcn Ltd. and signed the Trusteeship Agreement of Private
Non-enterprise Schools. authorities
in
IV. After the completion of this transaction, except for the accordance
above-mentioned cases, I promise that during the time of with the
being the actual controller of the listed Company, I, my close revised
relatives and other related parties, such as companies, Regulation
enterprises or other economic organizations, controlled by s of
myself and my close relatives shall not in any way (including
Implement
but not limited to self operated or with other parties to operate
joint venture, cooperation, joint operation, investment, ation
mergence, and trustee operation home and aboard) engage in comes into
the same, similar, related and competitive businesses with the effect.
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 relationship with the listed Company.
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
29
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
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 in no businesses which are
same, similar to or related to businesses competing with the
listed Company, Offcn Ltd. and their affiliated companies and
Letter of schools. Except for serving as a director at Kairuier Training
Wang School in Haidian District of Beijing, affiliated to Offcn Under
Commitment
Zhendong, Online (Offcn Online tends to transfer the rights and interests Apr. 27, normal
on avoiding of Kairuier Training School in Haidian District of Beijing to Long-term
Offcn 2018 impleme
horizontal an unrelated third party and after this transfer, Wang
Partnership ntation
competition Zhendong will not hold the post as a director), I neither hold
any full-time or 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.
30
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 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.
1. After the transaction is completed, during the period of
Letter of being the actual controller of the listed Company, I, my close
Commitment relatives and other companies, enterprises or other economic Under
on reducing organizations controlled by myself and my close relatives,
Li Yongxin, July 27, Long- normal
and regulating shall try to avoid and reduce the related-party transactions
Lu Zhongfang 2018 term impleme
related-party with the listed Company and its affiliates; unless it is
necessary for the business development of the listed ntation
transactions
Company, any related-party transactions with the listed
Company and its affiliates will not be conducted.
31
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 relatives, will sign related-
party transaction agreements with the listed Company and its
affiliates in accordance with the relevant laws, regulations and
regulatory documents and follow the general business
principles of equality, willingness, equivalence and paid-use.
The prices of related-party transactions shall be fair. Decision-
making procedures, lawful information disclosure obligations
and relevant reporting and approval procedures regarding the
related-party transactions, shall be followed. The status of
shareholders shall not be used to damage the legitimate rights
and interests of the listed Company and other shareholders.
3. After the completion of 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 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
Partnership and other companies, enterprises or other
economic organizations controlled by Aerospace Industry and
Offcn Partnership, shall try to reduce and regulate the related-
Wang party transactions with the listed Company and its affiliates.
Letter of
Zhendong, Commitment Under
Aerospace on reducing 2. After the transaction is completed, for the related-party Apr. 27, normal
and regulating transactions which are unavoidable or reasonable to conduct Long-term
Industry, 2018 impleme
related-party with the listed Company and its affiliates, I, my close relatives
Offcn and other companies, enterprises or economic organizations ntation
Partnership transactions
controlled by myself and my close 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
32
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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.
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.
33
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 actual amount of judgments in effective legal documents was RMB 9.5215
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 54.3584
million and the amount of litigation involved in pending cases accounted for 6.97% of the audited net assets
attributable to shareholders of the listed Company at the end of 2022, which had no significant impact on the
Company’s operations.
Other litigation matters
□Applicable Not applicable
Section IX. Punishment and rectification
□Applicable Not applicable
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
There was no connected transaction related to daily operation during the reporting period of the Company.
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
Whether there are non-operating related creditor rights and debts
34
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Yes □No
Creditor’s receivable from related parties
Whether Balance at
Amount
there is the New Balance at
recovered Interest in
non- beginning amount in the end of
Related in this Interest this period
Relation Reasons operating of this this period this period
party period rate (RMB10,0
capital period (RMB10,00 (RMB10,00
(RMB10,00 00)
occupatio (RMB10,00 0) 0)
0)
n 0)
Liabilities payable to related parties
Balance at
the New amount Amount Balance at
Interest in
beginning in this repaid in the end of
this period
Related of this period this period Interest this period
Relation Reasons (RMB 10
party period (RMB 10 (RMB 10 rate (RMB 10
thousand
(RMB 10 thousand thousand thousand
yuan)
thousand yuan) yuan) yuan)
yuan)
Person
acting in
Lu concert Shareholder
95,924 99,700 0.00% 0 195,624
Zhongfang with the loan
actual
controller
Impact of related debts on
the Company’s operating Enhance the company’s liquidity
results and financial status
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
1. Trusteeship, contracting and leasing matters
(1) Trusteeship situation
35
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 thousand yuan
Sources of Impairment
Types Amount of entrusted Undue Overdue amount
entrusted provision of
36
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
financing financing Balance yet to be recovered overdue
outstanding funds
Bank financial Self-owned
2,000 100 0 0
product fund
Total 2,000 100 0 0
Particulars of high-risk entrusted financial management with a large single amount, low security or poor
liquidity 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
Section XIII. Other significant events
37
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
□Applicable Not applicable
There are no other significant events that need to be explained during the reporting period of the Company.
Section XIV. Significant events of the Company’s subsidiaries
□Applicable Not applicable
38
Offcn Education Technology Co., Ltd. 2023 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
Conversi
New on of
share Bonu equity
Number of Number of
Proportion s s reserves Other Subtotal Proportion
shares shares
issue shares into
d share
capital
I. Shares with
trading 1,488,225,404 24.13% -188,185,339 -188,185,339 1,300,040,065 21.08%
restrictions
1. Shares
held by state
2. Shares
held by state-
owned legal
person
3. Other
shares held by
1,488,225,404 24.13% -188,185,339 -188,185,339 1,300,040,065 21.08%
domestic
capital
Of which:
shares held by
domestic legal 0 0.00% 0 0.00%
person
Shares
held by
domestic 1,488,225,404 24.13% -188,185,339 -188,185,339 1,300,040,065 21.08%
natural person
4. Shares
held by
overseas capital
Of which:
shares held by
overseas legal
person
Shares
held by
overseas
natural person
II. Shares
without trading 4,679,173,985 75.87% 188,185,339 188,185,339 4,867,359,324 78.92%
restrictions
1. RMB
ordinary shares
4,679,173,985 75.87% 188,185,339 188,185,339 4,867,359,324 78.92%
2. Domestic-
listed shares for
oversea
investors
3. Foreign-
listed shares for
overseas
investors
4. Other
III. Total
number of 6,167,399,389 100.00% 6,167,399,389 100.00%
shares
Reasons for changes in shares
Applicable □ Not applicable
Due to changes in the lock-up shares of high executives during the reporting period.
39
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Approval of changes in shares
□ Applicable Not applicable
Transfer of share changes
□ Applicable Not applicable
Implementation progress of share repurchase
□ Applicable Not applicable
Progress in the implementation of the centralized bidding method to reduce the shareholding repurchase
□ Applicable Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings per
share, net assets per share attributable to the Company’s ordinary shareholders, etc. in the 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
shares with Number of
shares with shares with
sales shares with sales
Name of sales sales Reasons for sales Date of releasing
restrictions restrictions
shareholder restrictions restrictions restrictions restrictions on sales
at the released in the
increased in at the end of
beginning of period
the period the period
the period
According to the
Changes of
relevant regulations
Li Yongxin 848,561,341 119,102,839 0 729,458,502 Senior executive’
of senior executive’s
s lock-up shares
lock-up shares
According to the
Changes of
Wang relevant regulations
639,664,063 69,082,500 0 570,581,563 Senior executive’
Zhendong of senior executive’s
s lock-up shares
lock-up shares
Total 1,488,225,404 188,185,339 0 1,300,040,065 -- --
Section II. Issuance and listing of securities
□ Applicable Not applicable
Section III. Number of shareholders and shareholdings
Unit: Share(s)
Total number of Total number of preferred shareholders with voting rights
241,364 0
shareholders with ordinary restored at the end of the reporting period (if any) (See Note 8)
40
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
shares at the end of the
reporting period
Shareholders with over 5% ordinary shares or top 10 ordinary shareholders
Nature Shareholdi Number of Number of Pledged, marked or Frozen
Increase and Number of
of ng ordinary shares ordinary shares
Name of decrease of shares ordinary shares Status
held at the end held without Number of
Shareholder shareh Percentage during the reporting held with sales of
of the reporting sales shares
older (%) period restrictions shares
period restrictions
Domes
tic Pledge
Li Yongxin 15.31% 944,407,232 -28,204,104.00 729,458,502 214,948,730 660,827,945
natural d
person
Domes
Wang tic Pledge
9.30% 573,799,534 -186,975,884.00 570,581,563 3,217,971 426,870,000
Zhendong natural d
person
Hunan Chasing
Fund
Management
Co., Ltd.-
Hunan Chasing
Other 5.51% 339,820,822 0 0 339,820,822
Changqin No.1
Fund
Partnership
(Limited
Partnership)
Shaanxi
International
Trust Co., Ltd.-
SIT Yunqi No.
Other 5.10% 314,537,300 314,537,300.00 0 314,537,300
1 Securities
Investment
Collective Fund
Trust Plan
Guangzhou
Kangqi Asset
Management
Center (Limited
Partnership)-
Kangqi Assets Other 4.16% 256,369,970 -52,000,000.00 0 256,369,970
Chuxin No. 1
Private
Securities
Investment
Fund
Shanghai
Tuopai Private
Funds
Management
Co., Ltd.-
Other 2.30% 142,150,838 -166,219,132.00 0 142,150,838
Tuopai
Xingfeng No. 9
Private Security
Investment
Fund
Domes pledg
Lu Zhongfang 1.78% 109,939,398 -811,209,100.00 0 109,939,398 74,000,000
tic ed
41
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
natural
person
Hong Kong Overse
Securities as
1.10% 67,731,592 -9,836,613.00 0 67,731,592
Clearing Co., legal
Ltd. person
Domes
tic
Zhou Xiayun 0.92% 56,556,962 3,424,635.00 0 56,556,962
natural
person
Domes
Beijing Kerui tic
Venture non-
Investment state- 0.89% 54,887,323 0.00 0 54,887,323
Center (Limited owned
Partnership) legal
person
Strategic Investors or
Ordinary Legal Persons
Become the Top 10
Shareholders with None
Ordinary Shares 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.
Description of the Above- Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership) constitute persons
mentioned Shareholders’ acting in concert.
Relationship or Concerted It is unknown whether there is an associated relationship among the above-mentioned other shareholders, and whether the above-
Action 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’
entrusting/entrusted voting None
rights and waiver of voting
rights
Particulars of the existence
of a special repurchase
account among the top 10 None
shareholders (if any, see
Note 11)
Description of top 10 shareholders with ordinary Shares without sales restrictions
Type
Name of Shareholder Number of ordinary shares without sales restrictions at the end of the reporting period
Type Quantities
Hunan Chasing Fund
RMB
Management Co., Ltd.-
ordina
Hunan Chasing Changqin 339,820,822 339,820,822
ry
No.1 Fund Partnership
shares
(Limited Partnership)
Shaanxi International Trust RMB
Co., Ltd.-SIT Yunqi No. 1 ordina
314,537,300 314,537,300
Securities Investment ry
Collective Fund Trust Plan shares
Guangzhou Kangqi Asset RMB
Management Center 256,369,970 ordina 256,369,970
(Limited Partnership)- ry
42
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Kangqi Assets Chuxin No. shares
1 Private Securities
Investment Fund
RMB
ordina
Li Yongxin 214,948,730 214,948,730
ry
shares
Shanghai Tuopai Private
RMB
Funds Management Co.,
ordina
Ltd.-Tuopai Xingfeng No. 142,150,838 142,150,838
ry
9 Private Security
shares
Investment Fund
RMB
ordina
Lu Zhongfang 109,939,398 109,939,398
ry
shares
RMB
Hong Kong Securities ordina
67,731,592 67,731,592
Clearing Co., Ltd. ry
shares
RMB
ordina
Zhou xiayun 56,556,962 56,556,962
ry
shares
RMB
Beijing Kerui Venture
ordina
Investment Center 54,887,323 54,887,323
ry
(Limited Partnership)
shares
RMB
ordina
Luo Huanxiao 39,232,752 39,232,752
ry
shares
Description of the
relationship or concerted
action among the top 10
The Company’s controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child relationship.
shareholders of ordinary
Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership) constitute persons
shares without restrictions, acting in concert.
and between the top 10 It is unknown whether there is an associated relationship among the above-mentioned other shareholders, and whether the above-
mentioned shareholders belong to the parties acting in concert as stipulated in the Administrative Measures on Information
shareholders of ordinary Disclosure of Shareholding Changes in Listed Companies.
shares without restriction
and the top 10 shareholders
of ordinary shares
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
43
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Quantity of
Quantity Of Other Quantity of
Shares held at Quantity of restricted Quantity of
shares increased or restricted
Tenure the beginning of shares held at the shares granted restricted shares
Name Title increased in decreased shares granted
status the period end of the period at the granted in
the current changes at the end of
(share) (share) beginning of current period
period (share) (share) the period
the period
Chairma
Li
Yongxin
n of the Incumbent 972,611,336 0 28,204,104 944,407,232 0 0 0
board
Director, 186,975,88
Wang
Zhendong
general Incumbent 760,775,418 0 573,799,534 0 0 0
manager 4
1,733,386,75 215,179,98
Total -- -- 0 1,518,206,766 0 0 0
4 8
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.
44
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Chapter 8 Preferred Shares
□ Applicable Not applicable
There were no preferred shares during the reporting period.
45
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Chapter 9 Corporate Bonds
□ Applicable Not applicable
46
Offcn Education Technology Co., Ltd. 2023 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, 2023
Unit: RMB
Items Jun. 30, 2023 Jan. 1, 2023
Current assets:
Monetary funds 756,004,299.74 385,328,555.74
Settlement reserve
Borrowed funds
Transactional financial assets 1,000,000.00
Derivative financial assets
Notes receivable
Accounts receivable 37,615,251.32 37,323,682.88
Receivables financing
Prepayments 214,627.00 556,093.00
Premium receivable
Accounts receivable reinsurance
Reserve for reinsurance receivable contracts
Other receivables 183,380,449.84 193,617,379.76
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory
Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets 6,093,853.07 4,559,823.18
Total current assets 984,308,480.97 621,385,534.56
Non-current assets:
Loans and advances
Debt investment
Other debt investment
47
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Long-term receivables
Long-term equity investment 46,829,958.32 46,835,952.63
Other equity investment 121,300,000.00 121,300,000.00
Other non-current financial assets 27,680,000.00 27,680,000.00
Investment property 33,110,964.73 450,260.54
Fixed assets 1,883,437,001.67 1,970,536,339.75
Construction in progress 326,144,606.54 323,273,645.99
Productive biological assets
Oil and gas assets
Right-of-use asset 889,367,057.48 1,112,202,447.58
Intangible assets 1,143,162,512.31 1,162,266,659.34
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expenses 240,917,278.59 285,134,318.63
Deferred tax assets 704,598,699.79 772,016,405.47
Other non-current assets 1,653,901,029.49 1,654,201,029.49
Total non-current assets 7,170,316,829.30 7,575,764,779.80
Total assets 8,154,625,310.27 8,197,150,314.36
Current liabilities:
Short-term loan 40,000,000.00
Borrowing from Central Bank
Borrowings from banks and other financial
institutions
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 250,442,507.04 287,088,393.76
Deposit received
Contract liabilities 3,372,173,981.81 3,949,799,538.71
Financial assets sold for repurchase
Absorbing deposits and interbank deposits
Acting trading securities
Acting underwriting securities
Payroll payable 246,602,046.05 609,823,739.07
Taxes payable 20,369,841.39 9,593,498.07
Other payable 2,091,514,542.12 1,096,787,345.65
Including: Interest payable
Dividend payable
Fees and commissions payable
Reinsurance amounts payable
Liabilities held-for-sale
Non-current liabilities due within one year 447,202,888.69 578,821,921.03
Other current liabilities 101,165,219.45 118,495,201.91
Total current liabilities 6,569,471,026.55 6,650,409,638.20
Non-current liabilities:
Insurance contract reserve
48
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Long-term loan
Bonds payable
Inc: Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability 501,240,102.13 508,752,253.77
Long-term payable
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 222,040,141.80 258,096,085.13
Other non-current liabilities
Total non-current liabilities 723,280,243.93 766,848,338.90
Total liabilities 7,292,751,270.48 7,417,257,977.10
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 6,375,000.00 6,375,000.00
Special reserve
Surplus reserves 45,000,000.00 45,000,000.00
General risk reserves
Undistributed profits -518,747,991.94 -600,729,736.73
Total owners’ equity attributable to the parent 861,915,680.56 779,933,935.77
company
Minority shareholders’ equity -41,640.77 -41,598.51
Total owners’ equity 861,874,039.79 779,892,337.26
Liabilities and owners’ equity 8,154,625,310.27 8,197,150,314.36
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 Jun. 30, 2023 Jan. 1, 2023
Current assets:
Monetary funds 6,087,794.79 4,549,980.47
Transactional financial assets
Derivative financial assets
Notes receivable
Accounts receivable 24,956,140.44 26,484,984.35
Receivables financing
Prepayments
Other receivables 24,823,587.35 22,848,853.79
Including: Interest receivable
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Dividend receivable
Inventory
Contract assets
Assets held-for-sale
Non-current assets due within one year
Other current assets
Total current assets 55,867,522.58 53,883,818.61
Non-current assets
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 19,190,395,589.06 19,190,401,583.37
Other equity investment 121,300,000.00 121,300,000.00
Other non-current financial assets
Investment properties 4,121,590.76 363,531.57
Fixed assets 544,624,076.97 557,438,989.80
Construction in progress 72,569,103.57 72,569,103.57
Productive biological assets
Oil and gas assets
Right-of-use assets 347,958.18
Intangible assets 157,029,331.82 161,459,750.00
Development expenditure
Goodwill
Long-term prepaid expenses
Deferred tax assets
Other non-current assets 1,618,411,145.38 1,618,411,145.38
Total non-current assets 21,708,798,795.74 21,721,944,103.69
Total assets 21,764,666,318.32 21,775,827,922.30
Current liabilities
Short-term loan
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 43,621,752.26 43,621,752.26
Deposit received
Contract liabilities
Payroll payable
Taxes payable 1,752,154.39 1,693,081.17
Other payable 2,543,810,788.37 2,533,250,496.78
Including: Interest payable
Dividend payable
Liabilities held-for-sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 2,589,184,695.02 2,578,565,330.21
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Non-current liabilities
Long-term loan
Bonds payable
Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability 319,764.30
Long-term payable
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 2,125,000.00 2,125,000.00
Other non-current liabilities
Total non-current liabilities 2,444,764.30 2,125,000.00
Total liabilities 2,591,629,459.32 2,580,690,330.21
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 6,375,000.00 6,375,000.00
Special reserve
Surplus reserves 387,458,806.65 387,458,806.65
Undistributed profits -163,522,706.98 -141,421,973.89
Owners’ equity 19,173,036,859.00 19,195,137,592.09
Liabilities and owner’s equity 21,764,666,318.32 21,775,827,922.30
3. Consolidated income statement
Unit: RMB
Items Semi-annual 2023 Semi-annual 2022
I. Total operating income 1,728,338,446.75 2,226,704,962.11
Including: operating income 1,728,338,446.75 2,226,704,962.11
Interest income
Premium earned
Fee and commission income
II. Total operating costs 1,607,145,661.82 3,270,304,589.23
Including: Operating cost 757,031,789.68 1,609,828,642.68
Interest expense
Fee and commission expenses
Surrender money
Net reimbursement expenditure
Withdrawal of net insurance liability
contract reserves
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Policyholder dividend expenses
Reinsurance expenses
Taxes and surcharges 15,528,557.41 16,395,888.43
Sales expenses 351,925,858.15 701,766,026.73
Management expenses 265,963,797.73 472,072,638.67
R&D expenses 148,591,052.63 327,590,103.90
Financial expenses 68,104,606.22 142,651,288.82
Including: interest expenses 19,002,573.04 57,847,785.61
Interest income 251,376.39 5,702,074.59
Add: other income 7,599,452.35 30,202,078.09
Investment income (Loss is listed with 1,656,274.80 -2,230,731.92
“-”)
Including: Investment income from -5,994.31 -9,507,696.78
associates and joint ventures
Derecognition income of financial
assets measured at amortized cost
Exchange earnings (Loss is listed with
“-”)
Net exposure hedge income (Loss is
listed with “-”)
Fair value change income (Loss is -3,435,742.21
listed with “-”)
Expected credit loss (Loss is listed -12,587,685.57 -7,994,247.21
with “-”)
Asset impairment loss (Loss is listed
with “-”)
Asset disposal income (Loss is listed -3,310,651.17 58,877.23
with “-”)
III. Operating profit (Loss is listed with “-”) 114,550,175.34 -1,026,999,393.14
Add: non-operating income
Less: non-operating expenses 314,728.01 4,372,388.19
IV. Total profit(The total loss is listed with “-”) 114,235,447.33 -1,031,371,781.33
Less: Income tax expenses 32,253,744.80 -140,436,954.64
V. Net profit (Net loss is listed with “-”) 81,981,702.53 -890,934,826.69
i. Classified by business continuity
1. Net profit from continuing operations 81,981,702.53 -890,934,826.69
(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 the owner of 81,981,744.79 -890,931,710.33
the parent company
2. Minority shareholders' gains and -42.26 -3,116.36
losses(Net loss is listed with “-”)
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 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 81,981,702.53 -890,934,826.69
Total comprehensive income attributable to 81,981,744.79 -890,931,710.33
owners of the parent
Total comprehensive income attributable to -42.26 -3,116.36
minority shareholders
VIII. Earnings per share
i. Basic earnings per share 0.01 -0.14
ii. Diluted earnings per share 0.01 -0.14
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
Items Semi-annual 2023 Semi-annual 2022
I. Operating income 1,166,825.72 427,884.19
Less: Operating cost 93,878.98 5,597,571.75
Taxes and surcharges 3,163,389.06 3,158,855.34
Sales expenses
Management expenses 20,122,726.44 12,714,916.92
R&D expenses
Financial expenses 12,566.11 9,997,226.32
Including: Interest expenses 10,049,430.40
Interest income 1,962.89 61,926.55
Add: Other income 2,487.65
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Investment income (Loss is listed with “-”) 1,653,845.69 -7,773,599.75
Including: Investment income from
-9,507,696.78
associates and joint ventures
Derecognition income of
financial assets measured at amortized cost
Net exposure hedge income (Loss is listed
with “-”)
Fair value change income (Loss is listed with -73,219.32
“-”)
Expected credit loss (Loss is listed with “-”) -1,528,843.91 -1,157,663.12
Asset impairment loss (Loss is listed with “-”)
Asset disposal income (Loss is listed with “-”)
II. Operating profit(Loss is listed with “-”) -22,100,733.09 -40,042,680.68
Add: non-operating income
Less: non-operating expenses 4,000,000.00
III. Total profit (The total loss is listed with “-”) -22,100,733.09 -44,042,680.68
Less:income tax expenses -18,304.83
IV. Net profit (Net loss is listed with “-”) -22,100,733.09 -44,024,375.85
i. Net profit from continuing operations(Net loss
-22,100,733.09 -44,024,375.85
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 provisions of
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
other debt investment
5. Cash flow hedge reserve
6. Foreign currency financial statement
translation difference
7. Other
VI. Total comprehensive income -22,100,733.09 -44,024,375.85
VII. Earnings per share:
ⅰ. Basic earnings per share
ⅱ. Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Items Semi-annual 2023 Semi-annual 2022
I. Cash flows from operating activities:
Cash received from the sale of goods and 1,183,188,892.40 4,062,343,388.89
the 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
Taxes refund
Other cash received related to other 23,363,255.94 35,105,398.27
business activities
Subtotal of cash inflow from operating 1,206,552,148.34 4,097,448,787.16
activities
Cash paid for the purchase of goods and 204,069,860.16 451,088,975.41
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Cash paid to and for employees 1,260,100,397.07 2,255,984,012.14
Various taxes paid 52,954,848.96 58,136,972.58
Other cash paid for business activities 218,239,224.82 299,256,415.71
Subtotal of cash outflows from business 1,735,364,331.01 3,064,466,375.84
activities
Net cash flow from operating activities -528,812,182.67 1,032,982,411.32
II. Cash flows from investing activities:
Cash received from investment recovery 20,700,000.00 466,866,629.87
Cash received from investment income 1,662,269.11 7,285,958.41
Net cash received from disposal of fixed
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 investing 22,362,269.11 474,152,588.28
activities
Cash paid for the purchase and
construction of fixed assets, intangible 1,091,858.70 45,057,938.10
assets and other long-term assets
Cash paid for investment 21,400,000.00 118,700,000.00
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 22,491,858.70 163,757,938.10
activities
Net cash flow from investing activities -129,589.59 310,394,650.18
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 40,000,000.00
Other cash received related to fundraising 997,000,000.00
activities
Subtotal of cash inflows from financing 1,037,000,000.00
activities
Cash paid for debt repayment 1,899,000,000.00
Cash paid for dividends, profits or 43,044,930.56
interest payments
Including: Dividends and profits paid by
subsidiaries to minority shareholders
Other cash paid related to financing 137,184,566.54 245,945,251.57
activities
Subtotal of cash outflows from financing 137,184,566.54 2,187,990,182.13
activities
Net cash flow from financing activities 899,815,433.46 -2,187,990,182.13
IV. Effect of the changes of the exchange rate
on cash and the equivalents
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
V. Net increase in cash and cash equivalents 370,873,661.20 -844,613,120.63
Add: balance of cash and cash 380,885,899.37 1,969,806,009.56
equivalents at the beginning of the period
VI. Balance of cash and cash equivalents at 751,759,560.57 1,125,192,888.93
the end of the period
6. Parent company cash flow statement
Unit: RMB
Items Semi-annual 2023 Semi-annual 2022
I. Cash flow from operating activities:
Cash received from the sale of goods and services 1,225,867.00
Tax refund
Other cash received related to business
8,623,627.92 1,022,771,128.40
activities
Subtotal of cash inflow from operating activities 9,849,494.92 1,022,771,128.40
Cash paid for the purchase of goods and services
Cash paid to and for employees
Various taxes paid 3,162,937.12 3,039,028.54
Other cash paid for business activities 6,761,333.48 11,565,274.64
Subtotal of cash outflows from business activities 9,924,270.60 14,604,303.18
Net cash flow from operating activities -74,775.68 1,008,166,825.22
II. Cash flows from investing activities:
Cash received from investment recovery 1,500,000.00
Cash received from investment income 1,659,840.00 1,734,097.03
Net cash received from disposal of fixed 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 1,659,840.00 3,234,097.03
Cash paid for the purchase and construction of
fixed assets, intangible assets and other long-term 20,000.00
assets
Cash paid for investment
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
Net cash flows from investing activities 1,659,840.00 3,214,097.03
III. Cash flow from financing activities:
Cash received from investment absorption
Cash received from the loan
Other cash received related to fundraising
activities
Subtotal of cash inflows from financing activities
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Cash paid for debt repayment 1,000,000,000.00
Cash paid for dividends, profits or interest
11,164,499.99
payments
Other cash paid related to financing activities 47,250.00
Subtotal of cash outflows from financing activities 47,250.00 1,011,164,499.99
Net cash flow from financing activities -47,250.00 -1,011,164,499.99
IV. Effect of the changes of the exchange rate on cash and
the equivalents
V. Net increase in cash and cash equivalents 1,537,814.32 216,422.26
Add:balance of cash and cash equivalents at the
4,275,056.45 58,831,214.10
beginning of the period
VI. Balance of cash and cash equivalents at the end of
5,812,870.77 59,047,636.36
the period
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
7. Consolidated Statement of Changes in Owners’ Equity
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
8. Statement of Changes in Owners' Equity
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 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, 2023, 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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(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
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 education 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 business management consulting. (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 29, 2023.
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 based on a going concern assumption, according to the practical transactions,
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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, 2023. 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 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 realizes to achieve a merger under the same control in one transaction or through step-by-step
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
multiple transactions. Assets and liabilities obtaining from the merger of enterprise are measured according to the
share of book value of consolidated financial statements of final controlling party under the owner ’ s equity of
combined party within combining date. The difference between the book value of the net assets obtained 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.
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 shall be 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 date. Should the former is greater than the latter, the difference is
recognized as goodwill; Should the former is less than the latter, 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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 only 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 it 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
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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.
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
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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 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.
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The Company derecognizes 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 have been transferred virtually, or (b) though not all risks and benefits of the financial assets
have 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 have 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 their 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 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
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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.
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
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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 X “ Risks Associated With Financial
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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:
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
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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 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
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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 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
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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 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, of the same inventory, if some has contract price agreement and there is
no contract price agreement 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
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Packages are amortized by one-time write-off.
16. Contract asset
16.1. 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.
16.2. 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:
17.1. 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;
17.2. The cost increases the Company's future resources for fulfilling contract obligations;
17.3. The cost is expected to be recovered.
If the incremental cost incurred by the Company for obtaining the contract is expected to be recovered, it is
recognized as an asset as the cost of obtaining the contract; however, if the amortization period of the asset does
not exceed one year, the Company could include it in the current profits and losses when it occurs.
Assets related to contract costs are amortized on the same basis as the revenue of goods or services related
to the asset.
If the book value of assets related to contract costs is higher than the difference between the following two
items, the Company will make provisions for impairment for the excess part and recognize it as the asset
impairment loss:
17.3.1. The remaining consideration expected to be obtained due to the transfer of goods or services related
to the asset;
17.3.2. Costs estimated to incur for the transfer of the related goods or services
If the aforementioned asset impairment provision is subsequently reversed, the book value of the asset after
reversal shall not exceed the book value of the asset on the date of reversal under the assumption that no
impairment provision is made.
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18. 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 sale.
19. Debt investment
The Company uses the general model of expected credit losses for debt investment. For details, please
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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
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 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
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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
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the difference between the sale price and the book value of the disposal long-term equity investment shall be
recognized as investment income (loss); Meanwhile, the remaining equity shall be recognized as long-term
equity investment or other relevant financial assets according to its book value. If the remaining equity after
disposal is able to exert joint control or significant influence on the subsidiary, accounting treatment shall be
conducted according to the relevant provisions of the conversion from cost method to equity method.
22.5 Methods of impairment assessment and determining the provision for impairment loss
For the 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
None
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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
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general borrowings.
27. Biological assets
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
30.1. Intangible assets, including land use rights etc. are measured at costs initially.
30.2. Intangible assets with finite useful lives are amortized in accordance with the expected realization
method of the economic benefits related to the intangible asset over its estimated useful life. If it is not possible to
reliably determine the expected realization method, use the straight-line method. The specific years are as follows:
Item Useful life(Year)
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Item Useful life(Year)
Land use rights 40
Software use rights 5-10
Trademark rights 10
30.3. On the balance sheet date, if there is any indication that the intangible assets with definite life has
been impaired, the corresponding impairment provision shall be made based on the difference between the book
value and the recoverable amount. Intangible assets with uncertain service life and intangible assets that have
not yet reached the usable state, whether or not there are signs of impairment, are tested for impairment every
year.
(2) Accounting policies for internal research and development expenditure
Expenditure in the research phase of internal research and development projects is included in the current
profits and losses when they occur. Expenditure during the development phase that meets the following
conditions at the same time is recognized as intangible asset. (1) It is technically feasible to complete the
intangible asset so that it will be available for use or sale; (2) The Company has the intention to complete the
intangible asset and use or sell it; (3) The Company can demonstrate the ways in which the intangible asset will
generate economic benefits, including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset; (4) The
availability of adequate technical, financial and other resources to complete the development and the ability to
use or sell the intangible asset; and (5) The expenditure attributable to the intangible asset during its
development phase can be reliably measured.
31. Impairment of long-term assets
The Company make judgement on whether there is any indication that the asset may be impaired at the
balance sheet date.
The goodwill and intangible assets with an uncertain useful life resulting from a business combination 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 has fallen 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
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disposed of in advance; (6)The evidence reported by the enterprise indicates that economic performance of the
assets has been or will be lower than expected, such as the net cash flow created by the assets or the realized
operating profit (or loss) is far lower (or higher) than the expected amount; (7) Other indications that the asset
may have signs of impairment.
If there are any signs of asset impairment, the recoverable amount should be estimated.
The recoverable amount should be determined based on the higher of the net amount of the fair value of
the asset minus the disposal costs and the present value of the estimated future cash flows of the asset.
Disposal costs include legal costs related to asset disposal, related taxes, transportation charges, and direct
costs incurred to make the asset available for sale.
The present value of the estimated future cash flows of the asset should be determined by discounting the
amount of the asset based on the expected future cash flow generated during the continuous use of the asset and at
the time of final disposal. The present value of the expected future cash flow of the asset should take into account
factors such as the estimated future cash flow of the asset, its useful life, and the discount rate.
The measurement results of the recoverable amount indicate that if the recoverable amount of the asset is
lower than its book value, the book value of the asset should be written down to the recoverable amount, and the
reduced amount should be recognized as the asset impairment loss and included in the current profit and loss.
Meanwhile, corresponding provisions for asset impairment should be made.
32. Long-term 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
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When the Company terminates the employment relationship with employees before the expiration of the
employment contracts or provides compensation as an offer to encourage employees to accept voluntary
redundancy, if the Company has a formal plan for termination of employment relationship or has made an offer
for voluntary redundancy which will be implemented immediately, and the Company cannot unilaterally
withdraw from the termination plan or the redundancy offer, a provision for the compensation payable arising
from the termination of employment relationship with employees is recognized with a corresponding charge to
the profit or loss for the period, and include in current profits or losses.
(4)Accounting treatment methods of other long-term employee benefits
The Company's employees participated in the social basic endowment insurance organized and
implemented by the local labor and social security departments. The Company pays endowment insurance
premium to 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, are 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
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36.1 The Company shall recognize this obligation as contingent liability when the obligations arising from
the provision of external guarantees, litigation matters, product quality guarantees, loss contracts and other
contingencies become the current obligations assumed by the Company and the fulfillment of such obligations
is likely to result in the outflow of economic benefits from the Company and the amount of such obligations can
be reliably measured.
36.2 The Company shall initially measure the provisions according to the best estimate of the expenses
required to perform the relevant current obligations, and shall review the book value of the estimated liabilities
on the balance sheet date.
37. Share-based payments
37.1 Categories of share-based payments
Share-based payments comprise equity-settled and cash-settled payments.
37.2 Determination of fair value of equity instruments
(1) If there is an active market, it should be determined based on the quoted price in the active market.
(2) If there is no active market, it is determined by using valuation techniques, including considering the
prices used in recent market transactions made by parties familiar with the situation and taking transactions
voluntarily, and considering the current fair values and cash flows of other financial instruments that are
substantially the same discount method and option pricing model.
37.3 Basis for determining the best estimate of exercisable equity instruments
The Company would make best estimate in accordance with the newly acquired information such as
changes in the number of employees entitled to equity instruments.
37.4 Relevant accounting treatment of implementation, modification and termination of share-based
payment plan
(1) Equity-settled share-based payments
Equity-settled share-based payments that are immediately available after the grant in exchange for
employee services are included in related costs or expenses based on the fair value of the equity instruments on
the grant date, and the capital reserve is adjusted accordingly. Equity-settled share-based payments for services
that have been completed during the waiting period or that are exercisable only if the required performance
conditions are met are 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
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measured at the fair value of the equity instrument on the date of service acquisition and included in related
costs or expenses, increasing owner’s equity accordingly.
(2) Cash-settled share-based payments
The cash-settled share-based payment in exchange for employee services immediately after the grant is
included in the related costs or expenses at the fair value of the liability assumed by the Company on the grant
date, and the liability is increased accordingly. Cash-settled share-based payments for services that have been
completed within the waiting period or that have met the required performance conditions in exchange for
employee services are based on the best estimate of the right to exercise at each balance sheet date during the
waiting period, according to the fair value of liabilities assumed by the Company, the services obtained in the
current period are included in related costs or expenses and corresponding liabilities.
(3) Modifying and terminating the share payment plan
If the amendment increases the fair value of the equity instruments granted, the Company will recognize
the increase in the acquisition of services in accordance with the increase in the fair value of the equity
instruments; if the amendment increases the number of equity instruments granted, the Company will increase
the value of the equity instruments. The fair value is correspondingly recognized as an increase in access to
services; if the Company modifies the conditions of the exercisable rights in a manner that benefits employees,
the Company considers the modified conditions of the exercisable rights when processing the conditions of the
exercisable rights.
If the amendment reduces the fair value of the equity instrument granted, the Company continues to
recognize the amount of services obtained based on the fair value of the equity instrument on the grant date,
without considering the decrease in the fair value of the equity instrument; if the amendment reduces the equity
granted for the number of instruments, the Company will treat the reduction as the cancellation of the granted
equity instruments; if the conditions of the exercisable rights are modified in a manner that is not conducive to
employees, the revised conditions of the exercisable rights are not considered when processing the conditions of
the exercisable rights.
If the Company cancels the granted equity instruments or clears the granted equity instruments during the
waiting period (except for those that are canceled because the conditions of the exercisable rights are not met),
the cancellation or settlement is treated as an expedited exercisable right and the original amount recognized
during the remaining waiting period.
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.
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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.
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
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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, 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
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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 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.
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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 the income tax in the followings are not included: (1) The business
combination; (2) Transactions or events directly confirmed in the owner's equity.
42. Lease
42.1 Accounting treatment of operating leases
1) Lessor
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.
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.
2) Lessee
As the lessee, except for short-term leases and leases for which the underlying asset is of low value, the
Company recognizes right-of-use assets and lease liabilities on the commencement date of the lease term.
After the commencement date of the lease term, the Company uses the cost model for subsequent
measurement on the right-of-use assets. 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 identify impairment loss.
The Company calculates the interest expense of the lease liability for each period of the lease term in
accordance with fixed periodical interest rate and record it into the current profit and loss. If it shall be recorded
into the cost of related assets in accordance with “Accounting Standards for Business Enterprises No.17 -
Borrowing cost” or other regulations, the Company will follow the regulations.
42.2 Accounting treatment of financial leases
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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
Content and reason for changes in accounting policies Approval process Remarks
The changes do not need to
Implement “On deferred income tax on assets and liabilities transactions arising
comply with the Board of
from individual transactions aren’t applicable for accounting treatment exempted None
Directors and the Supervisory
at initial recognition. ” from “Explanatory Announcement No. 16 for ASBE ”
Committee’s approval process.
The Company has adopted relevant regulation “On deferred income tax on assets and liabilities
transactions arising from individual transactions aren’t applicable for accounting treatment exempted at initial
recognition.” from “Explanatory Announcement No. 16 for ASBE (FA [2022] NO. 31) ” since January 1, 2023.
The Company adjusted the amount of the relevant items in the financial statements according to cumulative
impact. The impacts on the changes in accounting policies are shown below:\
Content and reason for changes in accounting policies Report items and amount affected
The taxable temporary differences and the deductible temporary differences On January 1, 2023, deferred income tax assets
arising from the initial recognition of the assets and liabilities of the lease in balance sheet increase RMB
transaction should determine their deferred income tax liabilities and deferred 169,735,961.10, and deferred income tax
income tax assets separately when transaction happens. liabilities increase RMB 169,735,961.10.
(2) Changes in important accounting estimates
□ Applicable Not applicable
(3) The new Accounting Standards will be implemented for the first time since the 2023 and related items
of financial statements at the beginning of the year will be implemented for the first time.
Applicable □ Not applicable
Adjustment statement
Consolidated balance sheet
Item January 1, 2023 December 31, 2022 Adjustment amount
Deferred tax assets 772,016,405.47 602,280,444.37 169,735,961.10
Deferred tax liability 258,096,085.13 88,360,124.03 169,735,961.10
45. Others
None
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Section VI. 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., Ltd.) 20%
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. Shaanxi Offcn Education Technology Co. Ltd. 25%
10. Chengdu Offcn Future Education Training School Co. Ltd. 20%
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. 20%
14. Zhejiang Offcn Education Technology Co. Ltd. 25%
15. Taizhou Offcn Future Enterprise Management Consulting Co., Ltd. 20%
16. Wenling Offcn Information Consulting Co., Ltd. 20%
17. Beijing Offcn Xinzhiyu Online Technology Co., Ltd. 25%
18. Hulun Buir Hailar Offcn Education Information Consulting Co., Ltd. 20%
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 Co., Ltd. 25%
24. Nanning Offcn Future Education Consulting Co., Ltd. 25%
25. Baiyin Offcn Future Education Consulting Co., Ltd. 20%
26. Beijing Xinde Zhiyuan Enterprise Management Consulting Co., Ltd. 25%
27. Nanjing Huiyue Hotel Management Co., Ltd. 25%
28. Shandong Kunzhong Yuhua Technology Co., Ltd. 25%
29. Sanmenxia Offcn Cultural Communication Co., Ltd. 20%
30. Liaoning Offcn Academic & Cultural Exchange Co., Ltd. 25%
31. Liaoning Offcn Education Technology Co., Ltd. 25%
32. Shandong Offcn Education Technology Co., Ltd. 20%
33. Jilin Changyi Offcn Education Training School Co., Ltd. 25%
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. 25%
38. Tianjin Jinnan Offcn Lexue Training School Co., Ltd. 25%
39. Tianjin Baodi Offcn Lexiang Training School Co., Ltd. 25%
40. Tianjin Jizhou Offcn LechengTraining School Co., Ltd. 25%
41. Chengdu Offcn Education Training School Co., Ltd. 25%
42. Shandong Zhuoda Business Management Co., Ltd. 25%
43. Liaoning Zhongcheng Real Estate Development Co.,Ltd. 25%
44. Wuhu Offcn Training School Co. Ltd. 25%
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
45. Wuhan Guoshang Human Resource Service Co., Ltd. 25%
46. Jinan Zhangqiu Offcn Training School Co.,Ltd. 25%
47. Mengzi Offcn Education Training Co. Ltd. 20%
48. Beijing Offcn Technology Development Co. Ltd. 20%
49. Shanghai Offcn Education Technology Co. Ltd. 25%
50. Guangzhou Offcn Smart Education Technology Co. Ltd. 20%
51. Nantong Sigang Huizhi Technology Co., Ltd. 25%
52. Pingshan Offcn Education Technology Co. Ltd. 25%
53. Shandong Offcn Education Training School Co. Ltd. 25%
54. Lanzhou Offcn Education Training School Co. Ltd. 20%
55. Anshan Tiedong Offcn Education Training School Co., Ltd. 20%
56. Diqing Offcn Training School Co., Ltd. 20%
57. Dali Offcn Education Training School Co., Ltd. 20%
58. Harbin Nangang Offcn Education Training School Co., Ltd. 20%
59. Nujiang Offcn Training School Co., Ltd. 20%
60. Weixi Offcn Education Training School Co., Ltd. 20%
61. Beijing Offcn Century Education Technology Co., Ltd. 25%
62.Beijing Offcn Shengjing Education Technology Co., Ltd. 20%
63.Henan Offcn Education Consulting Co., Ltd. 25%
64. Lhasa Offcn Training School Co., Ltd. 20%
65. Tianjin Offcn Technology Co., Ltd. 25%
66. Tianjin Wuqing Offcn Leqing Training School Co., Ltd. 25%
2. Policies and basis of the important tax incentives
2.1 Value-added tax
(1) According to the “Notice on the VAT Exemption Policy for Small-scale VAT Taxpayers” (FT [2023]
No. 1), in order to further support the development of small and micro enterprises, the Notice will continue to
be in force, and the contents are as follows: small-scale value-added taxpayers with monthly sales of less than
RMB 100,000 (including the principal) are exempt from value-added tax; VAT for taxable sales income of
small-scale VAT taxpayers subject to 3% levy rate shall be paid at the tax rate of 1%; prepaid VAT items subject
to the advance levy rate of 3% shall be prepaid at the tax rate of 1%.
(2) According to the “Notice on the VAT Exemption Policy for Small-scale VAT Taxpayers” (FT [2023]
No. 1), taxpayers in the production service industries are allowed to deduct 5% of the input tax in accordance
with the current period. Taxpayers in the production service industries refer to those who achieve the sales
account for more than 50% of the whole sales from serving as the postal services, telecommunications services,
modern services and living services; Allowing living services taxpayers deduct 10% of the input tax in
accordance with the current period. Living services taxpayers refer to those who achieve the sales account for
more than 50% of the whole sales from living service; taxpayers are applicable for other items related to the
adding and deducting policy according to the “Notice 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” (Announcement No. 39 [2019] of the Ministry of Finance, State Taxation Administration, and
General Administration of Customs of The People’s Republic of China) and the “Notice of the Ministry of
Finance and the State Administration of Taxation on Defining the Value-added Tax Policies for living services”
(Announcement No. 87 [2019] of the Ministry of Finance and State Taxation Administration).
(3) According to the “Notice of the Ministry of Finance and the State Administration of Taxation on the
95
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Relevant Policies on Deduction of Value Added Tax for Special Equipment and Technical Maintenance Costs
of Value Added Tax Control System” (FT [2012] No. 15), if the VAT taxpayers purchase special equipment
for the VAT tax control system (including separate ticket machines) for the first time after December 1, 2011
(including, the same below), the 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 subsidiaries and subsidiaries should deduct the VAT payable amount
in full according to the regulations.
2.2 Corporate income tax
(1) On October 21, 2020, Offcn Co., Ltd. passed the high-tech enterprise recognition organized by the
Beijing Municipal State Taxation Bureau, Beijing Local Taxation Bureau, Beijing Municipal Finance Bureau and
Beijing Science and Technology Commission, and obtained the high-tech enterprise certificate No.
GR202011002730. The certificate is valid from October 21, 2020 to October 20, 2023, and reidentification after
its expiry is in progress. Offcn Co., Ltd. and its subsidiaries pay corporate income tax at a 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 Ministry of Finance and State Taxation Administration on
Further Improving the Policy of Pre-tax Deduction of R&D expenses”, (Announcement No. 7, 2023 of the
Ministry of Finance and State Taxation Administration), from January 1, 2023, if the R&D expenses actually
incurred by the enterprise in carrying out R&D activities are not included in the current profit or loss as
intangible assets, on the basis of actual deduction according to regulations, 100% of the actual amount will be
deducted before tax. The Company meets the conditions and the Company applies the tax incentive policy.
(4) According to the “Notice of the Ministry of Finance and the State Administration of Taxation on
Further Implementation of Income Tax Preferential Policies Supporting the Development of Small and Low-
profit Enterprises” ( [2022] No. 13 ), from January 1, 2022 to December 31, 2024, as for the annual taxable
income of small and low-profit enterprises exceeds 1 million yuan but does not exceed 3 million yuan, which
will be included in the taxable income at a reduced rate of 25%, the enterprise’s income tax will be paid at the
tax rate of 20%. According to the “Notice of the Ministry of Finance and the State Administration of Taxation
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
on Income Tax Preferential Policies Supporting the Development of Small and Low-profit Enterprises and and
Individual Industrial and Commercial Households ( [2023] No. 6 )”, from January 1, 2023 to December 31,
2024, as for the annual taxable income of small and low-profit enterprises does not exceed 1 million yuan,
which will be included in the taxable income at a reduced rate of 25%, the enterprise’s income tax will be paid
at the tax rate of 20%.
2.3 Other tax incentives
(1) According to the “Notice of the Ministry of Finance and the State Administration of Taxation on
Expanding the Exemption Scope of Government Funds”(FT [2016] No. 12), starting from February 1, 2016, the
exemption scope of education surcharge, local education surcharge and water conservancy construction fund
should be expanded from the current obligors 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
obligors who pay the monthly sales or turnover of not more than RMB 100,000 (the quarterly sales or turnover
of the quarterly tax does not more than RMB 300,000). Subsidiaries and subsidiaries of the Company that meet
the conditions for exemption are exempted from education surcharge and local education surcharge.
(2) According to the “Announcement of the State Administration of Taxation of the Ministry of Finance on
Further Implementation of ‘Six Taxes Two Fees’ Exemption Policy for SME”(FT [2022] No. 10), from January
1, 2022 to December 31, 2024, based on the actual situation and the needs of macro adjustment and control, the
provincial government, autonomous district government, municipality government can reduce resource tax, city
maintenance and construction tax, property tax, town land-use tax, stamp tax (securities transaction stamp tax
not included), cultivated land use tax, education surcharge and local education surcharge within the rate of 50%
from VAT small-scale taxpayers, small enterprises with little profit and individual business. Qualified
subsidiaries of the Company apply this policy to calculate and pay the related taxes.
3. Others
None.
Section VII. Notes to consolidated financial statements
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 131,851.52 35,788.65
Cash on bank 724,383,472.52 379,418,940.77
Other monetary funds 31,488,975.70 5,873,826.32
Total 756,004,299.74 385,328,555.74
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.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
2. Transactional financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets measured at fair value
with changes included in current profit 1,000,000.00
and loss
Inc:
Debt instrument investment 1,000,000.00
Inc:
Total 1,000,000.00
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 Proportion Book Proportion Book
Proporti Proporti
Amount Amount of value Amount Amount of value
on on
provision provision
Inc:
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(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
Amount of writing Reasons for writing Procedure of writing are generated by
Company name Nature of notes receivable
off off off related party
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 46,075,150 8,459,899. 37,615,25 43,513,429 6,189,746. 37,323,68
provision for 100.00% 18.36% 100.00% 14.22%
.74 42 1.32 .80 92 2.88
bad debts in
combination
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Inc：
Combination 1,403,000. 1,332,850.
1 3.05% 70,150.00 5.00%
00 00
Combination 4,499,940. 4,257,691. 3,491,219. 3,303,622.
2 9.77% 242,249.23 5.38% 8.02% 187,596.90 5.37%
30 07 36 46
Combination 40,172,210 8,147,500. 32,024,71 40,022,210 6,002,150. 34,020,06
3 87.19% 20.28% 91.98% 15.00%
.44 19 0.25 .44 02 0.42
Total
46,075,150 8,459,899. 37,615,25 43,513,429 6,189,746. 37,323,68
100.00% 100.00%
.74 42 1.32 .80 92 2.88
Provision for bad debts according to combination: 8,459,899.42
Unit：RMB
Closing balance
Name
Book balance Bad debt provision Proportion of provision
Combination 1 1,403,000.00 70,150.00 5.00%
Combination 2 4,499,940.30 242,249.23 5.38%
Combination 3 40,172,210.44 8,147,500.19 20.28%
Total 46,075,150.74 8,459,899.42
Description of the basis for determining the combination:
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) 5,696,824.30
1-2 years (included) 10,519,196.69
2 to 3 years 20,006,930.10
More than 3 years 9,852,199.65
3 to 4 years 9,852,199.65
Total 46,075,150.74
(2) Provision, recovery and reversal for bad debts in current period
Provision for bad debts in the current period:
Unit：RMB
Category Opening balance Amount of change in the current period Closing balance
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Recovery or
Provision Write off Others
reversal
Provision for bad
debts of accounts 6,189,746.92 2,270,152.50 8,459,899.42
receivable
Total 6,189,746.92 2,270,152.50 8,459,899.42
Important provision, recovery and reversal for bad debts in current period:
Unit：RMB
Company name Amount recovered or reversed Recovery method
(3) Accounts receivable actually written off in the current period
Unit：RMB
Item Write off amount
Important write-off accounts receivable:
Unit：RMB
Whether the funds
Nature of accounts Amount of writing Reasons for writing Procedures of 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
Anhui Yaxia Industrial Co., Ltd 40,000,000.00 86.81% 7,970,993.53
Customer 1 1,403,000.00 3.05% 70,150.00
Customer 2 1,374,007.50 2.98% 83,879.63
Customer 3 813,228.40 1.77% 40,661.42
Customer 4 786,961.00 1.71% 42,077.90
Total 44,377,196.90 96.32%
(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:
None.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
6. Receivables financing
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
Closing balance Opening balance
Account age
Amount Proportion Amount Proportion
Within 1 year 214,627.00 100% 556,093.00 100%
Total 214,627.00 556,093.00
Reasons for not timely settling the important prepayments with an account age of more than one year:
None.
(2) Prepayment of top five closing balance collected by prepayment objects
Unit：RMB
Company name Nature of Closing balance Account age Proportion in total Provision for
Payment amount of bad debts
prepayment(%)
Nanjing Tuniu International Travel Agency Air ticket Within 1 year
208,464.00 97.13
Co., Ltd payment
Nanjing Eurasian Air Passengers Transport Air ticket Within 1 year
6,163.00 2.87
Agency Co., Ltd. payment
Total 214,627.00 100.00
Other information:
None
8. Other receivables
Unit：RMB
Item Closing balance Opening balance
Other receivables 183,380,449.84 193,617,379.76
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Total 183,380,449.84 193,617,379.76
(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
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:
(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 181,434,838.12 191,758,631.44
Reserve fund 580,014.91 292,215.00
Deferred expense and others 1,365,596.81 1,566,533.32
Total 183,380,449.84 193,617,379.76
2) Provision for bad debts
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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, 2023 13,595,579.87 13,595,579.87
Balance at Jan. 1st, 2023
in current period
Provision in the current
10,317,533.07 10,317,533.07
period
Balance at June 30th,
23,913,112.94 23,913,112.94
2023
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) 10,353,233.38
1 to 2 years 9,995,623.23
2 to 3 years 154,746,147.79
More than 3 years 32,198,558.38
3 to 4 years 13,184,668.72
4 to 5 years 4,189,967.06
More than 5 years 14,823,922.60
Total 207,293,562.78
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 13,595,579.87 10,317,533.07 23,913,112.94
receivables
Total 13,595,579.87 10,317,533.07 23,913,112.94
The important amount of bad debt reserves recovered or reversed in the current period:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
Whether the funds
Nature of other are generated by
Company name Write-off amount Write-off reasons Write off procedures
receivables related party
transactions
Description of write-off of other receivables:
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 2 to 3 years 60.06% 22,449,800.00
guarantees
Estate Co., Ltd.
Beijing Huaxia
Shunxin Property Deposits and
25,000,000.00 2 to 3 years 12.06%
Management Co., guarantees
Ltd.
Beijing Hanhua
Deposits and
Century Technology 2,174,166.67 Within 1 years 1.05%
guarantees
Co., Ltd.
Beijing Hanhua
Deposits and
Century Technology 3,737,045.64 1to 2 years 1.80%
guarantees
Co., Ltd.
Shenyang Lijing
Mingzhu Hotel Deposits and
5,675,200.00 More than 5 years 2.74%
Management Co., guarantees
Ltd.
Chengdu
Zhongmanweiye
Deposits and
Culture Industry 3,660,000.00 3 to 4 years 1.77%
guarantees
Development Co.,
Ltd.
Total — 164,744,412.31 -- 79.48% 22,449,800.00
6) Receivables involving government subsidies
Unit：RMB
Name of company Name of government Closing balance Account age at the end of Estimated time, amount
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
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
106
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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:
13. Other current assets
Unit：RMB
Item Closing balance Opening balance
Prepaid expenses 5,738,672.70 4,318,475.88
Input tax to be deducted 325,238.34 239,685.75
Pending payment 1,661.55
Others 29,942.03
Total 6,093,853.07 4,559,823.18
Other information:
14. Debt investment
Unit：RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
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, 2023
—— —— —— ——
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
107
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Unit：RMB
Accumulated
Changes in loss reserves
Changes in
Opening Accrued fair value in Closing recognized in
Item Cost accumulated Remarks
balance interest the current balance other
fair value
period 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, 2023
—— —— —— ——
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)
108
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Balance at Jan. 1st, 2023
—— —— —— ——
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
Other ng
Investment ent of
Inve compr balan
gains and cash Provis
Opening stme Invest ehensi Other Closing ce of
Invest losses divide ion
balance (book nt ment ve chang balance (book provis
ee recognized nds or for Other
value) incr reduc incom es in value) ion
under the profit impair
ease ed e equity for
equity s ment
d adjust impai
method declar
ments rment
ed
1. Joint ventures
Offcn
Xieto
ng
(Jiaxi
ng)
Huma 2,266.22 2,175.50 4,441.72
n
Resou
rces
Co.,
Ltd.
Subtot
2,266.22 2,175.50 4,441.72
al
2. Associated enterprises
Beijin
g
Offcn
Future
Educa
46,833,686.41 -8,169.81 46,825,516.60
tion
Techn
ology
Co.,
Ltd.
Subtot
46,833,686.41 -8,169.81 46,825,516.60
al
Total 46,835,952.63 -5,994.31 46,829,958.32
Other information:
109
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
18. Investment in other equity instruments
Unit：RMB
Item Closing balance Opening balance
Shanghai Zuihuibao Network Technology
99,600,000.00 99,600,000.00
Co., Ltd
Anhui Ningguo Rural Commercial Bank
21,700,000.00 21,700,000.00
Co., Ltd
Total 121,300,000.00 121,300,000.00
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
Other information:
19. Other non-current financial assets
Unit：RMB
Item Closing balance Opening balance
Beijing Jinwu Venture Capital Center
27,680,000.00 27,680,000.00
(limited partnership)
Total 27,680,000.00 27,680,000.00
Other information:
20. Investment properties
(1) Investment properties adopting cost measurement mode
Applicable □ Not applicable
Unit：RMB
Item Premises and buildings Land-use rights Construction in progress Total
I. Original book value
1. Opening balance 529,791.51 529,791.51
2.Increase in current period 37,735,011.66 37,735,011.66
(1) Outsourcing
(2) Inventory/ Fixed
assets/ Transfer in from 37,735,011.66 37,735,011.66
construction in progress
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(3) Increase in business
combination
3.Decrease in current period
（1）Disposal
（2）Other transfers
4.Closing balance 38,264,803.17 38,264,803.17
II. Accumulated
depreciation and
amortization
1. Opening balance 79,530.97 79,530.97
2. Increase in current period 5,074,307.47 5,074,307.47
(1) Provision or
6,552.66 6,552.66
amortization
(2) Inventory/ Fixed
assets/ Transfer in from 5,067,754.81 5,067,754.81
construction in progress
3.Decrease in current period
(1) Disposal
(2) Other transfers
4. Closing balance 5,153,838.44 5,153,838.44
III. Provision for impairment
1. Opening balance
2. increase in current period
(1) Provision
3. Decrease in current period
（1）Disposal
（2）Other transfers
4. Closing balance
IV. Book value
1. Book value at the end of
33,110,964.73 33,110,964.73
the period
2. Book value at the
450,260.54 450,260.54
beginning of the period
（2）Investment properties adopting fair value measurement mode
□ Applicable Not applicable
111
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（3）Investment properties without property right certificate
Unit：RMB
Reasons for not completing the property
Item Book value
rights certificate application
Premises and buildings 450,260.54 In process
Other information
21. Fixed assets
Unit: RMB
Item Closing balance Opening Balance
Fixed assets 1,883,437,001.67 1,970,536,339.75
Total 1,883,437,001.67 1,970,536,339.75
(1) Fixed assets
Unit: RMB
Premises and Decoration of Transportation Electronic Office
Item Total
buildings fixed assets facility equipment equipment
I. Original book
value
1. Opening balance 2,174,869,502.24 64,708,424.02 79,967,486.32 235,306,130.20 12,256,665.90 2,567,108,208.68
2. Increase in the
5,500.00 5,500.00
current period
(1) Purchase 5,500.00 5,500.00
(2)Transfer
in from
construction in
progress
(3) Increase
in business
combination
3. Decrease in the
37,735,011.66 638,180.00 359,986.90 15,750.00 38,748,928.56
current period
(1) Disposal
638,180.00 359,986.90 15,750.00 1,013,916.90
or obsolescence
(2) Transfer
out to investment 37,735,011.66 37,735,011.66
property
4. Closing balance 2,137,134,490.58 64,708,424.02 79,329,306.32 234,951,643.30 12,240,915.90 2,528,364,780.12
II. Accumulated
depreciation
1. Opening balance 273,533,269.93 43,450,135.38 73,092,142.80 188,617,262.95 11,243,804.98 589,936,616.04
2. Increase in the
31,653,148.08 5,710,870.60 999,530.40 15,648,112.88 97,648.01 54,109,309.97
current period
(1) Accrual 31,653,148.08 5,710,870.60 999,530.40 15,648,112.88 97,648.01 54,109,309.97
112
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
3. Decrease in the
5,074,307.47 330,650.71 333,479.77 14,962.50 5,753,400.45
current period
(1) Disposal
330,650.71 333,479.77 14,962.50 679,092.98
or obsolescence
(2) Transfer
out to investment 5,074,307.47 5,074,307.47
property
4. Closing balance 300,112,110.54 49,161,005.98 73,761,022.49 203,931,896.06 11,326,490.49 638,292,525.56
III. Impairment
provision
1. Opening balance 6,556,268.55 4,309.80 74,674.54 6,635,252.89
2. Increase in the
current period
(1) Accrual
3. Decrease in the
current period
(1) Disposal
or obsolescence
4. Closing balance 6,556,268.55 4,309.80 74,674.54 6,635,252.89
IV. Book value
1. Closing book
1,830,466,111.49 15,547,418.04 5,568,283.83 31,015,437.44 839,750.87 1,883,437,001.67
value
2. Opening book
1,894,779,963.76 21,258,288.64 6,875,343.52 46,684,557.45 938,186.38 1,970,536,339.75
value
(2) Temporarily idle fixed assets
Unit: RMB
Original book Accumulated Impairment
Item Book value Note
value 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
Premises and buildings 615,816,222.31 Being handled
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 326,144,606.54 323,273,645.99
Total 326,144,606.54 323,273,645.99
(1) Construction in progress
113
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Unit: RMB
Closing Balance Opening Balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Fushun Offcn
162,638,594.15 162,638,594.15 160,953,189.34 160,953,189.34
Building
Rizhao Learning
89,545,578.87 89,545,578.87 88,360,023.13 88,360,023.13
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 326,144,606.54 326,144,606.54 323,273,645.99 323,273,645.99
(2) Changes of significant projects in construction in the current period
Unit: RMB
Proport
Othe Includi
Transf ion of Accumu
r ng:
erred accumu Proj lative Current
Increas decr capitali Cap
into lative ect amount interest
Opening e ease Closing zation ital
Item Budget fixed project prog of capitali
balance in the in balance amount sour
assets investm ress interest zation
period the of ces
in the ent in (%) capitaliz rate (%)
perio current
period budget ation
d interest
(%)
Fush
un
Offc 330,000,0 160,953, 1,685,4 162,638, 49.2 Oth
49.28%
n 00.00 189.34 04.81 594.15 8% ers
Buil
ding
Rizh
ao
1,000,000 88,360,0 1,185,5 89,545,5 8.95 Oth
Lear 8.95%
,000.00 23.13 55.74 78.87 % ers
ning
City
1,330,000 249,313, 2,870,9 252,184,
Total
,000.00 212.47 60.55 173.02
(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
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
114
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Unit: RMB
Item Houses and buildings Total
I. Original book value
1. Opening balance 1,806,412,835.01 1,806,412,835.01
2. Increased amount in the current period 89,872,637.48 89,872,637.48
3. Decreased amount in the current
296,198,518.81 296,198,518.81
period
(1) Decreased rent when lease
140,488,560.94 140,488,560.94
expired
(2) Early expiration 155,709,957.87 155,709,957.87
4. Closing balance 1,600,086,953.68 1,600,086,953.68
II. Accumulated impairment
1. Opening balance 694,210,387.43 694,210,387.43
2.Increased amount in the current period 216,737,662.37 216,737,662.37
(1) Accrual 216,737,662.37 216,737,662.37
3. Decreased amount in the current
200,228,153.60 200,228,153.60
period
(1) Disposal
(2) Decreased rent when lease
140,488,560.94 140,488,560.94
expired
(3) Early expiration 59,739,592.66 59,739,592.66
4. Closing balance 710,719,896.20 710,719,896.20
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 889,367,057.48 889,367,057.48
2. Opening book value 1,112,202,447.58 1,112,202,447.58
Other information:
26. Intangible assets
(1) Intangible assets
Unit: RMB
Patent Non-patent Software use Trademark
Item Land use right Total
right technology right right
I. Original book value
1. Opening balance 1,380,676,763.17 7,774,286.02 7,140,521.53 1,395,591,570.72
2. Increase in the period
(1)Purchase
(2) Internal R&D
(3) Increase in business
combination
3. Decrease in the period
(1) Disposal
115
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
4. Closing balance 1,380,676,763.17 7,774,286.02 7,140,521.53 1,395,591,570.72
II. Accumulated
amortization
1. Opening balance 170,570,916.97 5,210,599.36 3,898,948.68 179,680,465.01
2. Increase in the period 18,399,000.84 341,367.45 363,778.74 19,104,147.03
(1) Accrual 18,399,000.84 341,367.45 363,778.74 19,104,147.03
3. Decrease in the period
(1) Disposal
4. Closing balance 188,969,917.81 5,551,966.81 4,262,727.42 198,784,612.04
III. Impairment provision
1. Opening balance 53,641,335.37 3,111.00 53,644,446.37
2. Increase in the period
(1) Accrual
3. Decrease in the period
(1) Disposal
4. Closing balance 53,641,335.37 3,111.00 53,644,446.37
IV. Book value
1. Closing book value 1,138,065,509.99 2,219,208.21 2,877,794.11 1,143,162,512.31
2. Opening book value 1,156,464,510.83 2,560,575.66 3,241,572.85 1,162,266,659.34
The proportion of intangible assets formed through internal R&D in the balance of intangible assets at the end
of the period:0.00%
(2) Land use rights without property rights certificate
Unit: RMB
Reasons for not completing property
Item Book value
rights certificate application
Land-use rights 226,294,737.56 in process
Other information:
27. Development expenditure
Unit: RMB
Increase in the period Decrease in the period
Opening Internal Recognized Transferred Closing
Item developme as to current
balance Others balance
nt intangible profit and
expenditure assets loss
Total
Other information:
28. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of the investee and item resulting Increase in the current Decrease in
Opening balance Closing balance
in goodwill period the current
116
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
period
Formed by
business Disposal
combination
Shandong Kunzhong Yuhua Technology
39,378,573.51 39,378,573.51
Co., Ltd.
Nanjing Huiyue Hotel Management Co.,
60,489,146.87 60,489,146.87
Ltd.
Total 99,867,720.38 99,867,720.38
(2) Goodwill impairment provision
Unit: RMB
Name of the Increase in the current period Decrease in the current period
investee and Opening
Closing balance
item forming balance Accrual Disposal
goodwill
Total
Relevant information of asset group or combination of asset group where goodwill is located
The Company acquired Shandong Kunzhong Yuhua Technology 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.
29. Long-term prepaid expenses
Unit: RMB
Increase in the Amortization for
Item Opening balance Other reductions Closing balance
period the period
Decoration
276,184,152.32 42,803,472.18 233,380,680.14
expenditure
Other 8,950,166.31 31,694.00 1,445,261.86 7,536,598.45
Total 285,134,318.63 31,694.00 44,248,734.04 240,917,278.59
Other information
30. Deferred income tax assets and Deferred income tax liabilities
(1) Unoffset deferred income tax assets
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for
24,269,845.76 3,807,161.33 13,820,010.31 2,202,090.78
impairment losses of
117
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
assets
Deductible losses 3,767,535,905.14 565,130,385.77 3,995,702,357.27 599,355,353.59
Changes in fair value
of held-for-trading 4,820,000.00 723,000.00 4,820,000.00 723,000.00
financial assets
Lease - right to use
884,338,863.59 134,938,152.69 1,112,202,447.58 169,735,961.10
assets
Total 4,680,964,614.49 704,598,699.79 5,126,544,815.16 772,016,405.47
(2) Unoffset deferred income tax liabilities
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Appraisal and
appreciation of
consolidated assets of 339,879,762.56 84,969,940.65 344,940,496.08 86,235,124.03
non-identical
controlled enterprises
Changes in fair value
of other equity 8,500,000.00 2,125,000.00 8,500,000.00 2,125,000.00
instrument investments
Lease - right to use
884,367,057.43 134,945,201.15 1,112,202,447.58 169,735,961.10
assets
Total 1,232,746,819.99 222,040,141.80 1,465,642,943.66 258,096,085.13
(3) Deferred income tax assets or liabilities presented in net amount after offsetting
Unit: RMB
Mutual offset amount Closing balance of Mutual offset amount Opening balance of
Item at the end of the deferred tax assets or at the opening of the deferred tax assets or
reporting period liabilities after offset reporting period liabilities after offset
Deferred income tax assets 704,598,699.79 772,016,405.47
Deferred income tax
liabilities 222,040,141.80 258,096,085.13
(4) Unrecognized deferred income tax asset details
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 2,153,869.13 3,024,087.93
Deductible losses 387,398,194.65 341,498,222.24
Total 389,552,063.78 344,522,310.17
(5) The deductible losses of unrecognized deferred income tax assets will expire in the following years
Unit: RMB
Year Closing balance Opening balance Notes
2023 11,480,964.23
2024 38,853,304.84 38,853,304.84
2025 57,109,818.13 57,109,818.13
2026 125,120,829.40 125,120,829.40
2027 108,933,305.64 108,933,305.64
2028 57,230,821.93
118
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Total 387,248,079.94 341,498,222.24
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
Input tax to be
deducted / to 3,378,986.11 3,378,986.11 3,378,986.11 3,378,986.11
be certified
Prepaid
construction 8,455,158.00 8,455,158.00 8,455,158.00 8,455,158.00
payments
Investment
1,100,000.00 1,100,000.00 1,400,000.00 1,400,000.00
funds
Prepaid fixed
assets 1,640,966,885.38 1,640,966,885.38 1,640,966,885.38 1,640,966,885.38
payments
Total 1,653,901,029.49 1,653,901,029.49 1,654,201,029.49 1,654,201,029.49
Other information
32. Short-term loan
(1) Short-term loan classification
Unit: RMB
Item Closing balance Opening balance
Credit loans 40,000,000.00
Total 40,000,000.00
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:
Inc:
Other information:
34. Derivative financial liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
119
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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
Start class fees 162,728,304.87 177,100,514.23
Fixed assets 43,112,000.00 43,112,000.00
Market promotion fees 5,892,528.23 29,539,866.76
Renovation costs 22,469,657.93 22,461,110.93
Project payments 16,240,016.01 14,874,901.84
Total 250,442,507.04 287,088,393.76
(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
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 3,363,587,616.25 3,949,759,013.68
Other 8,586,365.56 40,525.03
Total 3,372,173,981.81 3,949,799,538.71
Amount and reasons for major changes in book value in the period
Unit: RMB
Item Changes in amount Reasons for changes
120
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
39. Payroll payable
(1) List of employee salaries payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 512,775,974.48 808,899,941.97 1,145,937,885.79 175,738,030.66
II.Post-employment welfare- defined
97,047,764.59 86,856,461.33 113,040,210.53 70,864,015.39
contribution plan liability
III. Dismissed welfare 1,013,214.06 1,013,214.06
Total 609,823,739.07 896,769,617.36 1,259,991,310.38 246,602,046.05
(2) Short-term salary list
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Wages or salaries, bonuses,
469,317,282.69 724,598,008.22 1,044,302,134.72 149,613,156.19
allowances and subsidies
II. Staff welfare 779,045.84 779,045.84
III. Social security contributions 17,670,609.99 50,579,178.11 63,478,121.33 4,771,666.77
Inc: 1.Medical insurance 15,846,448.75 48,377,330.45 61,154,578.77 3,069,200.43
2. Work injury insurance 1,786,113.77 1,783,749.18 1,869,376.61 1,700,486.34
3. Maternity insurance 38,047.47 418,098.48 454,165.95 1,980.00
IV. Housing fund 25,788,081.80 32,925,172.71 37,360,142.81 21,353,111.70
V. Labor union expenditure and
18,537.09 18,441.09 96.00
employee education expenditure
Total 512,775,974.48 808,899,941.97 1,145,937,885.79 175,738,030.66
(3) Set deposit plan listing
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Basic endowment
93,939,338.83 83,947,490.53 109,258,612.74 68,628,216.62
insurance
II. Unemployment
3,108,425.76 2,908,970.80 3,781,597.79 2,235,798.77
insurance
Total 97,047,764.59 86,856,461.33 113,040,210.53 70,864,015.39
Other information
None
40. Taxes payable
Unit: RMB
Item Closing balance Opening balance
Value-added tax 11,129,621.32 3,008,686.66
Corporate income tax 3,280,361.76 2,161,035.51
Withholding individual income tax 12,931.39 122,182.62
City maintenance and construction tax 780,180.48 229,372.72
Land use tax 2,197,088.80 1,987,843.38
Education surcharge 560,678.52 166,226.69
Property tax 2,384,342.72 1,845,218.31
Other 24,636.40 72,932.18
Total 20,369,841.39 9,593,498.07
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Other information
None
41. Other payable
Unit: RMB
Item Closing balance Opening balance
Other payable 2,091,514,542.12 1,096,787,345.65
Total 2,091,514,542.12 1,096,787,345.65
(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
Shareholder loan 1,956,240,000.00 959,240,000.00
Daily expenses 58,010,427.49 64,983,802.12
Equity transfer 61,283,300.00 61,283,300.00
Social security and housing fund 957,220.13 1,790,029.54
Deposits and guarantees 875,267.68 285,500.00
Advances and others 14,148,326.82 9,204,713.99
Total 2,091,514,542.12 1,096,787,345.65
2) Major other payables with account age over one year
Unit: RMB
Item Closing balance Causes for outstanding or carry-over
Other information:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 447,202,888.69 578,821,921.03
Total 447,202,888.69 578,821,921.03
Other information:
44. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Value-added tax received in advance 101,165,219.45 118,495,201.91
Total 101,165,219.45 118,495,201.91
Changes in short-term bonds payable
Unit: RMB
Premiu
m and
Amoun Openin Interest discoun
Date of Issuanc Repay Closing
Name Par Bond t of g accrued t
issuanc e in the in the balanc
of bond value period issuanc balanc at par amortiz
e period period e
e e value ation
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(2) Changes in bonds payable (Excluding other financial instruments such as preferred stocks or
perpetual bonds that are classified as financial liabilities)
Unit: RMB
Premiu
Amoun Openin Interest m and
Date of Issuanc Repay Closing
Name Par Bond t of g accrued discoun
issuanc e in the in the balanc
of bond value period issuanc balanc at par t
e period period e
e e value amortiz
ation
Total
(3) Description of conversion conditions and conversion time of convertible corporate bonds
(4) Description of other financial instruments classified as financial liabilities
Information of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the
period
Table of other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Unit: RMB
Financial Opening Increase in the period Decrease in the period Closing
instruments
issued Amount Book value Amount Book value Amount Book value Amount Book value
Explanation of the basis for classifying other financial instruments as financial liabilities
Other information
47. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Houses and buildings 501,240,102.13 508,752,253.77
Total 501,240,102.13 508,752,253.77
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
Item Opening balance Increase Decrease Closing balance Reason
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Other information:
49. Long-term employee compensation payable
(1) Long-term employee compensation payable
Unit: RMB
Item Closing balance Opening balance
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Unit: RMB
Item Amount in the current period Amount in the previous period
Plan assets:
Unit: RMB
Item Amount in the current period Amount in the previous period
Net liabilities of defined benefit plan (net assets)
Unit: RMB
Item Amount in the current period Amount in the previous period
Description of the defined benefit plan’s contents, relevant risks and impact on the Company’s cash flow, time
and uncertainty:
Description of the analysis result of the define benefit plan’s significant actuarial assumptions and sensitivity:
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
Item Opening balance Increase Decrease Closing balance Reason
Projects involving government subsidies
Unit: RMB
Amount
Amount
included in Amount of Related to
Opening Increased included in Other Closing
Item non- cost assets /
balance subsidies other changes balance
operating reduction income
income
income
Other information:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
52. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Other information:
53. Share capital
Unit: RMB
Changes in the current period（+、-）
Opening balance Provident fund Closing balance
Issuing new Bonus
transfer to other subtotal
shares share
share capital
Share capital 103,807,623.00 103,807,623.00
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
(2) Changes for other financial instruments such as preferred stocks and perpetual bonds issued at the end of the period
Unit: RMB
Financial instruments Opening Increase in the period Decrease in the period Closing
issued Amount Book value Amount Book value Amount Book value Amount Book value
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:
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 Decrease Closing balance
Other information, including changes in the period and reasons for the changes:
57. Other comprehensive income
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Amount in the current period
Less: Less:
transferred to transferred to
other other
comprehensive comprehensive Attributable
Opening Pre-tax Less: Attributable Closing
Item income in the income in the to the
amount income to minority
balance previous previous parent balance
for the tax shareholders,
period and period and company,
period expenses after tax
transferred to transferred to after tax
profit or loss retained
in the current earnings in the
period current period
1. Other
comprehensive
income not 6,375,000.00 6,375,000.00
reclassified into
gains or losses
Changes in the
fair value of
other equity 6,375,000.00 6,375,000.00
instruments
Total other
comprehensive 6,375,000.00 6,375,000.00
income
Other information: including the adjustment of the effective part of the cash flow hedge gains and losses
converted into the initially confirmed amount of the hedged item:
58. Special reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Other information, including changes in the period and reasons for the changes:
59. Surplus reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
45,000,000.00 45,000,000.00
reserve
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
Item Amount for the current period Amount for the prior period
Undistributed profits at the end of
-600,729,736.73 501,330,081.70
previous period before adjustment
Undistributed profits at the beginning of
-600,729,736.73 501,330,081.70
the period after adjustment
Add: net profit attributable to owners of
81,981,744.79 -890,931,710.33
the parent company in the current period
Undistributed profits at the end of period -518,747,991.94 -389,601,628.63
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.
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 in the current period Amount in the previous period
Item
Operating income Operating costs Operating income Operating costs
Core business 1,709,619,356.64 746,698,623.85 2,216,651,869.28 1,589,663,422.60
Other business 18,719,090.11 10,333,165.83 10,053,092.83 20,165,220.08
Total 1,728,338,446.75 757,031,789.68 2,226,704,962.11 1,609,828,642.68
Information about income:
Unit: RMB
Types of Contracts Section 1 Section 2 Total
Types of goods
Inc:
Classified by operating area
Inc:
Type of market or customer
Inc:
Contract type
Inc:
Classified by transfer time of goods
Inc:
Classified by contract term
Inc:
Classified by sales channel
Inc:
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 obligations with signed contracts at the end of the reporting
period: RMB0.00. Among them, RMB0.00 is expected to be recognized as annual revenue, RMB0.00 is expected to
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
be recognized as annual revenue, and RMB0.00 is expected to be recognized as annual revenue.
Other information
62. Taxes and surcharges
Unit: RMB
Item Amount in the current period Amount in the previous period
City maintenance and construction tax 3,216,504.34 4,002,616.30
Education surcharge 2,277,324.05 2,849,598.95
Property tax 5,417,825.93 5,000,280.13
Land holding tax 4,328,987.51 4,188,848.40
Vehicle usage tax 83,500.00 78,531.98
Stamp tax 128,821.21 151,994.94
Other 75,594.37 124,017.73
Total 15,528,557.41 16,395,888.43
Other information:
63. Sales expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee's salary 220,667,528.42 518,526,442.34
Rent property and depreciation
91,997,525.30 107,675,061.20
amortization
Marketing fee 21,778,238.97 44,876,180.22
Travel expenses 12,318,624.63 26,478,434.40
Other 5,163,940.83 4,209,908.57
Total 351,925,858.15 701,766,026.73
Other information:
64. Management expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee's salary 134,330,604.77 296,641,414.65
Rent property and depreciation
68,032,387.18 78,840,943.95
amortization
Office expenses 42,217,121.24 63,880,868.57
Travel expenses 5,369,390.53 16,460,248.02
Welfare fee 255,946.96 1,113,243.95
Other 15,758,347.05 15,135,919.53
Total 265,963,797.73 472,072,638.67
Other information
65. Research and development expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Employee's salary 123,839,920.98 291,977,379.54
Travel expenses 3,091,530.36 5,443,455.92
Other 21,659,601.29 30,169,268.44
Total 148,591,052.63 327,590,103.90
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Other information
66. Financial expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Interest expenses 19,002,573.04 57,847,785.61
Less: Interest income 251,376.39 5,702,074.59
Service Charge 49,353,409.57 90,505,577.80
Total 68,104,606.22 142,651,288.82
Other information
67. Other income
Unit: RMB
Item Amount in the current period Amount in the previous period
Subsidy for job security/Work-for-
training/ Subsidies for training and 1,979,612.55 15,373,450.00
employment
VAT exemption 3,142,616.02 6,597,067.60
Tax handling fee refund 2,211,758.78 5,170,874.49
Financial support 3,000,000.00
Small financial support income 38,000.00 60,686.00
Rent subsidy income 227,465.00
Total 7,599,452.35 30,202,078.09
68. Investment income
Unit: RMB
Item Amount in the current period Amount in the previous period
Long-term equity investment income
-5,994.31 -9,507,696.78
under the equity method
Dividend income from other equity
instrument investments during the 1,659,840.00 1,659,840.00
holding period
Interest income from debt investment
5,879.99
during the holding period
Investment income from financial
2,429.11 5,611,244.87
product
Total 1,656,274.80 -2,230,731.92
Other information:
69. Net exposure hedging income
Unit: RMB
Item Amount in the current period Amount in the previous period
Other information:
70. Gains from changes in fair values
Unit: RMB
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Sources of gains from changes in fair
Amount in the current period Amount in the previous period
values
Transactional financial assets -3,435,742.21
Total -3,435,742.21
Other information:
71. Impairment losses of credit
Unit: RMB
Item Amount in the current period Amount in the previous period
Loss on bad debts of other receivables -10,317,533.07 -6,441,965.76
Loss on bad debts of account receivables -2,270,152.50 -1,552,281.45
Total -12,587,685.57 -7,994,247.21
Other information:
72. Impairment losses of assets
Unit: RMB
Item Amount in the current period Amount in the previous period
Other information:
73. Income from assets disposal
Unit: RMB
Sources of income from assets disposal Amount in the current period Amount in the previous period
Right-of-use assets -3,310,651.17 58,877.23
Total -3,310,651.17 58,877.23
74. Non-operating income
Unit: RMB
Amount included in current
Item Amount in the current period Amount in the previous period non-recurring gains and
losses
Government subsidy reckoned into current gains and losses:
Unit: RMB
Amount for
Whether it Amount for Related to
Whether the subsidy impacts the
Item Entity Purpose Type is special the current assets/
the gain/loss of the year previous
subsidy period income
period
Other information:
75. Non-operating expenses
Unit: RMB
Amount included in the
Amount in the previous
Item Amount in the current period current non-recurring gains or
period
losses
Outward donation 50,003.00 100,000.46 50,003.00
Forfeiture and overdue fine 264,725.01 4,191,688.08 264,725.01
Expenses on compensations 80,699.65
Total 314,728.01 4,372,388.19 314,728.01
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Other information:
76. Income tax expenses
(1) Statement of income tax expenses
Unit: RMB
Item Amount in the current period Amount in the previous period
Current income tax expense 891,982.45 -3,704,622.95
Deferred income tax expense 31,361,762.35 -136,732,331.69
Total 32,253,744.80 -140,436,954.64
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Amount in the current period
Total profit 114,235,447.33
Income tax expenses calculated at statutory/applicable tax
17,135,317.10
rate(s)
Impact from different tax rates applied by subsidiaries -4,641,948.05
Impact from adjustment of income tax of previous periods -28,079.59
Impact from non-taxable income -414,960.00
Impact from non-deductible cost, expense and loss 9,257,697.93
The effect of using deductible losses on deferred tax assets not
-1,394,451.60
recognized in the prior period
Impact from deductible temporary differences or deductible
losses of deferred income tax assets unrecognized in the current 12,801,787.55
period
Profit and loss attributable to joint ventures and associates 1,498.58
Expense of income tax 32,253,744.80
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 in the current period Amount in the previous period
Deposits and guarantees 2,769,683.55 4,412,165.36
Interest income 251,376.39 5,702,074.59
Other income and non-operating income 4,456,836.33 23,600,909.94
Reserve funds 10,993,656.72 9,474.40
Reimbursed expenses and others 4,891,702.95 1,380,773.98
Total 23,363,255.94 35,105,398.27
Information of cash received from other operating activities:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(2) Other cash paid related to operating activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Daily expenses 167,441,521.25 166,639,952.75
Service charges 33,877,298.48 124,426,309.89
Non-operating expenses 314,728.01 4,372,388.19
Deposits and guarantees 5,369,415.91 3,799,495.48
Reserve funds 11,236,261.17 18,269.40
Total 218,239,224.82 299,256,415.71
Information of cash paid for other operating activities:
(3) Other cash received related to investment activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Information of cash received from other investment activities:
(4) Other cash paid related to investment activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Information of cash paid for other investment activities:
(5) Other cash received related to fundraising activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Shareholder loan 997,000,000.00
Total 997,000,000.00
Description of other cash received related to financing activities:
(6) Other cash paid related to fundraising activities
Unit: RMB
Item Amount in the current period Amount in the previous period
Cash paid to repay principal and interest
137,184,566.54 245,945,251.57
on lease liability
Total 137,184,566.54 245,945,251.57
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
Supplementary information Amount for the current period Amount for the previous period
1. Net profit adjusted to cash flow of operating activities:
Net profit 81,981,702.53 -890,934,826.69
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Add: Provision for impairment of assets
Expected credit loss 12,587,685.57 7,994,247.21
Depreciation of fixed assets, depletion of oil and gas assets
59,183,617.44 60,858,950.72
and productive biological assets
Depreciation of right-of-use assets 216,737,662.37 263,779,532.46
Amortization of intangible assets 19,104,147.03 12,366,582.06
Amortization of long-term prepaid expenses 42,803,472.18 48,905,197.74
Losses on disposal of fixed assets, intangible assets and
3,310,651.17 -58,877.23
other long-term assets (gains are indicated by “-”)
Losses on write-off of fixed assets (gains are indicated by “-
”)
Losses on changes in fair values (gains are indicated by “-”) 3,435,742.21
Financial expenses (income is indicated by “-”) 19,002,573.04 57,847,785.61
Losses from investments (gains are indicated by “-”) -1,662,269.11 2,230,731.92
Decrease in deferred tax assets (increase is indicated by “-”) -102,318,255.42 -134,921,445.36
Increase in deferred income tax liabilities (decrease is
133,680,017.77 -1,810,886.33
indicated by “-”)
Decrease in inventories (increase is indicated by “-”)
Decrease in operating receivables (increase is indicated by
-377,885.29 21,593,531.28
“-”)
Increase in operating payables (decrease is indicated by “-”) -1,012,845,301.95 1,581,696,145.72
Others
Net cash flow from operating activities -528,812,182.67 1,032,982,411.32
2. 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 751,759,560.57 1,125,192,888.93
Less: Opening balance of cash 380,885,899.37 1,969,806,009.56
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase of cash and cash equivalents 370,873,661.20 -844,613,120.63
(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:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 751,759,560.57 380,885,899.37
Including: Cash on hand 131,851.52 35,788.65
Cash on bank available for
720,138,733.35 375,174,194.00
payment at any time
Other monetary funds
31,488,975.70 5,873,826.32
available for payment at any time
III. Closing balance of cash and cash
751,759,560.57 380,885,899.37
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
Guarantees, outstanding/unreconciled
Monetary funds 4,244,739.17
accounts, judicial freeze, etc
Total 4,244,739.17
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
Monetary funds
Including: U.S. dollar
Euro
Hong Kong dollar
Accounts receivable
Including: U.S. dollar
Euro
Hong Kong dollar
long-term loan
Including: U.S. dollar
Euro
Hong Kong dollar
Other information:
None
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(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/ Subsidies
1,979,612.55 Other income 1,979,612.55
for training and employment
Small financial support income from the government 38,000.00 Other income 38,000.00
Rent subsidy income 227,465.00 Other income 227,465.00
Total 2,245,077.55 2,245,077.55
(2) Refund of government subsidies
□ Applicable Not applicable
Other information:
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
Basis of the of the
Name of Time of Cost of Proportion Ways of determinin acquiree acquiree
Date of
the acquiring acquiring of equity acquiring g the date from the from the
acquisition
acquiree equity equity acquisition equity of purchase purchase
acquisition date to the date to the
end of the end of the
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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 merger costs
Less: Acquired share of fair value of identifiable net assets
Amount of goodwill/merger 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:
(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
Assets：
Monetary funds
Receivables
Inventory
Fixed assets
Intangible assets
Liabilities:
Loan
Payables
Deferred income tax liabilities
Net assets
Less:minority shareholders’ equity
Net assets acquired
Method of determining the fair value of identifiable assets and liabilities:
The contingent liabilities of the acquiree assumed in the business combination:
Other information:
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(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
Net profit
of the
Income of merged
the merged
party from party from Net profit
Equity ratio Basis for the Income of
Basis of the of the
obtained in business Date of the merged
Name of determinin beginning beginning merged
the combinatio business party
the merged g the of of the party
business n under combinatio during the
party combinatio combinatio during the
combinatio common n combinatio comparison
n date n period to comparison
n control n period
the period
combinatio period to
n date the
combinatio
n date
Other information:
(2) Merger costs
Unit: RMB
Merger costs
--Cash
--Book value of non-cash assets
--Book value of debt issued or assumed
--The face value of equity securities issued
--Contingent consideration
Descriptions for the contingent consideration and its changes:
Other information:
(3) Book value of assets and liabilities of the merged party on the combination date
Unit: RMB
Combination date End of the previous period
Assets：
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Monetary funds
Receivables
Inventory
Fixed assets
Intangible assets
Liabilities:
Loan
Payables
Net assets
Less:minority shareholders’ equity
Net assets acquired
Contingent liabilities of the merged party assumed in the business combination:
Other information:
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.Tianjin Wuqing Offcn Leqing Training School Co., Ltd. 100 New establishment
6. Others
None
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Section IX. Interest in other entities
1. Interest in subsidiaries
(1) Composition of the Company
Principal place Place of Nature of Shareholding ratio Acquisition
Name of 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 Co., Ltd sales, etc. establishment
3. Ningguo Yaxia
Service New
Automobile Driver Training Ningguo Ningguo 100.00%
Industry establishment
School Co., Ltd.
4. Huangshan Yaxia Fudi
Merchandise New
Automobile Sales Services Huangshan Huangshan 100.00%
sales, etc. establishment
Co., Ltd.
5. Chaohu Yaxia Kaixuan
Merchandise New
Automobile Sales Services Hefei Hefei 100.00%
sales, etc. establishment
Co., Ltd.
6. Bozhou Yaxia
Service New
Automobile Driver Training Bozhou Bozhou 100.00%
Industry establishment
School Co., Ltd.
7. Suzhou Bokai Automobile Merchandise
Suzhou Suzhou 100.00% Acquisition
Sales Services Co., Ltd. sales, etc.
8. Shaanxi Offcn Education Service New
Xi’an Xi’an 100.00%
Technology Co. Ltd. Industry establishment
9. Chengdu Offcn Future
Service New
Education Training School Chengdu Chengdu 100.00%
Industry establishment
Co. Ltd.
10. Lu’an Yazhong Real
Estate Information Lu’an Lu’an Real estate 100.00% Acquisition
Consulting Co., Ltd.
11. Lu’an Zhongke Real
Estate Information Lu’an Lu’an Real estate 100.00% Acquisition
Consulting Co., Ltd.
Culture, sports
12. Sichuan Offcn Luming New
Chengdu Chengdu and 100.00%
Culture Media Co., Ltd. establishment
entertainment
13. Zhejiang Offcn
Service New
Education Technology Co. Hangzhou Hangzhou 100.00%
Industry establishment
Ltd.
14. Taizhou Offcn Future
Service New
Enterprise Management Taizhou Taizhou 100.00%
Industry establishment
Consulting Co., Ltd.
15. Wenling Offcn
Service New
Information Consulting Co., Wenling Wenling 100.00%
Industry establishment
Ltd.
16. Beijing Offcn Xinzhiyu Service New
Beijing Beijing 100.00%
Online Technology Co., Ltd. Industry establishment
17.Hulun Buir Hailar Offcn
Service New
Education Information Hulun Buir Hulun Buir 100.00%
Industry establishment
Consulting Co., Ltd.
18. Xilinhot Offcn Future
Service New
Education Consulting Co., Xilinhot Xilinhot 100.00%
Industry establishment
Ltd.
19. Yueqing Lecheng Offcn Service New
Yueqing Yueqing 100.00%
Training Center Co., Ltd. Industry establishment
20. Jiaozuo Offcn Future Service New
Jiaozuo Jiaozuo 100.00%
Education Service Co., Ltd. Industry establishment
21. Xinzheng Offcn Cultural Service New
Zhengzhou Zhengzhou 100.00%
Communication Co., Ltd. Industry establishment
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
22. Chongqing Jiangbei
Offcn Vocational Service New
Chongqing Chongqing 100.00%
Examination Training Co., Industry establishment
Ltd.
23. Nanning Offcn Future
Service New
Education Consulting Co., Nanning Nanning 100.00%
Industry establishment
Ltd.
24. Baiyin Offcn Future
Service New
Education Consulting Co., Baiyin Baiyin 100.00%
Industry establishment
Ltd.
25. Beijing Xindezhiyuan
Service New
Enterprise Management Beijing Beijing 100.00%
Industry establishment
Consulting Co., Ltd.
26. Nanjing Huiyue Hotel Service
Nanjing Nanjing 100.00% Acquisition
Management Co., Ltd. Industry
27.Shandong Kunzhong Service
Jinan Jinan 100.00% Acquisition
Yuhua Technology Co., Ltd. Industry
28. Sanmenxia Offcn
Service New
Cultural Communication Sanmenxia Sanmenxia 100.00%
Industry establishment
Co., Ltd.
29. Liaoning Offcn
Service New
Academic & Cultural Shenyang Shenyang 100.00%
Industry establishment
Exchange Co., Ltd.
30.Liaoning Offcn Education Shenfu new Shenfu new Service New
100.00%
Technology Co., Ltd. district district Industry establishment
31.Shandong Offcn
Service New
Education Technology Co., Qingdao Qingdao 100.00%
Industry establishment
Ltd.
32.Jilin Changyi Offcn
Service New
Education Training School Jilin Jilin 100.00%
Industry establishment
Co., Ltd.
33.Yuxi Offcn Training Service New
Yuxi Yuxi 100.00%
School Co., Ltd. Industry establishment
34.Tonghua Offcn Training Service New
Tonghua Tonghua 100.00%
School Co., Ltd. Industry establishment
35.Hunan Lightsalt Offcn
Service New
Education Technology Co., Changsha Changsha 90.00%
Industry establishment
Ltd.
36.Tianjin Hexi Offcn Service New
Training School Co., Ltd.
Tianjin Tianjin Industry
100.00%
establishment
37.Tianjin Jinnan Offcn
Service New
Lexue Training School Co., Tianjin Tianjin Industry
100.00%
establishment
Ltd.
38.Tianjin Baodi Offcn
Service New
Lexiang Training School Tianjin Tianjin Industry
100.00%
establishment
Co., Ltd.
39.Tianjin Jizhou Offcn
Service New
Lecheng Training School Tianjin Tianjin Industry
100.00%
establishment
Co., Ltd.
40.Chengdu Offcn Education Service New
Chengdu Chengdu 100.00%
Training School Co., Ltd. Industry establishment
41.Shandong Zhuoda
Service New
Business Management Co., Rizhao Rizhao 100.00%
Industry establishment
Ltd.
42.Liaoning Zhongcheng
Shenfu new Shenfu new
Real Estate Development Real estate 100.00% Acquisition
district district
Co.,Ltd.
43.Wuhu Offcn Training Service New
Wuhu Wuhu 100.00%
School Co.,Ltd. Industry establishment
44.Wuhan Guoshang Human Service New
Wuhan Wuhan 100.00%
Resource Service Co.,Ltd. Industry establishment
45.Jinan Zhangqiu Offcn Service New
Jinan Jinan 100.00%
Training School Co.,Ltd. Industry establishment
46.Mengzi Offcn Education Service New
Mengzi Mengzi 100.00%
Technology Co.,Ltd. Industry establishment
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
47.Beijing Offcn
Service New
Technology Development Beijing Beijing 100.00%
Industry establishment
Co.,Ltd.
48.Shanghai Offcn
Service New
Education Technology Shanghai Shanghai 100.00%
Industry establishment
Co.,Ltd.
49.Guangzhou Offcn
Service New
Intelligence Education Guangzhou Guangzhou 100.00%
Industry establishment
Technology Co.,Ltd.
Culture, sports
50.Nantong Sigang Huizhi New
Nantong Nantong and 51.00%
Technology Co., Ltd. establishment
entertainment
51.Pingshan Offcn
Service New
Education Technology Shijiazhuang Shijiazhuang 100.00%
Industry establishment
Co.,Ltd.
52.Shandong Offcn
Service New
Education Training School Jinan Jinan 100.00%
Industry establishment
Co.,Ltd.
53.Lanzhou Offcn Education Service New
Lanzhou Lanzhou 100.00%
Training School Co.,Ltd. Industry establishment
54.Anshan Tiedong Offcn
Service New
Education Training School Anshan Anshan 100.00%
Industry establishment
Co., Ltd.
55.Diqing Offcn Training Diqing Diqing Service New
100.00%
School Co., Ltd. Prefecture Prefecture Industry establishment
56.Dali Offcn Education Service New
Dali Dali 100.00%
Training School Co., Ltd. Industry establishment
57.Harbin Nangang Offcn
Service New
Education Training School Harbin Harbin 100.00%
Industry establishment
Co., Ltd.
58.Nujiang Offcn Training Nujiang Nujiang Service New
100.00%
School Co., Ltd. prefecture prefecture Industry establishment
59.Weixi Offcn Education Service New
Weixi County Weixi County 100.00%
Training School Co., Ltd. Industry establishment
60.Beijing Offcn Century
Service New
Education Technology Co., Beijing Beijing 100.00%
Industry establishment
Ltd.
61.Beijing Offcn Shengjing
Service New
Education Technology Co., Beijing Beijing 100.00%
Industry establishment
Ltd.
62.Henan Offcn Education Service New
Zhengzhou Zhengzhou 100.00%
Consulting Co., Ltd. Industry establishment
63.Lhasa Offcn Training Service New
Lasa Lasa 100.00%
School Co., Ltd. Industry establishment
64.Tianjin Offcn Technology Service New
Tianjin Tianjin 100.00%
Co., Ltd. Industry establishment
65.Tianjin Wuqing Offcn
Service New
Leqing Training School Co., Tianjin Tianjin 100.00%
Industry establishment
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:
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(2) Major non-wholly owned subsidiary
Unit: RMB
Profit and loss The balance of
Dividends declared to
Minority Shareholding attributable to minority minority shareholders’
Name of the subsidiary minority shareholders
Ratio shareholders in the equity at the end of the
in the current period
current period 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
Closing balance Opening balance
Name
of the Curren Non- Curren Non-
Non- Total Non- Total
subsidi Curren Total t current Curren Total t current
current Liabili current Liabili
ary t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets ties assets ties
es es es es
Unit: RMB
Amount in the current period Amount in the previous period
Name of Total Cash flow Total Cash flow
the Operating comprehen from Operating comprehen from
subsidiary Net profit Net profit
income sive operating income sive operating
income activities income 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
(2) Impact of the transaction on the equity of minority shareholders and the equity attributable to the parent
company
Unit: RMB
Purchase cost/Disposal consideration
-- Cash
-- Fair value of non-cash assets
Total Purchase cost/Disposal consideration
Less: Share of the subsidiary's net assets in proportion to the equity
acquired/disposed of
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Difference
Including: Adjustments to capital surplus
Adjustments to surplus reserves
Adjustments to undistributed profits
Other information:
3. Interests in joint arrangements or joint ventures
(1) Significant joint ventures and associates
Shareholding ratio Accounting
Name of joint treatment of
The principal The place of
ventures and Business nature investment in
place of business registration Direct Indirect
associates joint ventures or
associates
Explanation of the differences between the shareholding ratio in a joint venture or an associate and that of the
voting rights ratio:
Basis for the case of holding less than 20% of the voting rights but having significant influence, or holding 20%
or more of the voting rights but not having significant influence:
(2) Main financial information of important joint ventures
Unit: RMB
Closing balance / Amount for the current Opening balance/ Amount for the
period previous period
Current assets
Including: cash and cash equivalents
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total Liabilities
Minority shareholders’ equity
Shareholders' equity attributable to the
parent company
Share of net assets based on shareholding
Adjusting events
--Goodwill
--Unrealised profits from internal
transactions
--Other
Book value of the equity investment in
the joint venture
Fair value of an equity investment in a
joint venture where there is a public offer
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Operating income
Financial expenses
Income tax expenses
Net profit
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income
Dividends received from joint ventures
during the year
Other information
(3) Main financial information of important associates
Unit: RMB
Closing balance / Amount for the current Opening Balance/ Amount for the
period previous period
Current assets:
Non-current liabilities:
Total assets
Current liabilities
Non-current liabilities:
Total Liabilities
Minority shareholders’ equity
Shareholders’ equity attributable to the
parent company
Share of net assets based on shareholding
Adjusting events
--Goodwill
--Unrealised profits from internal
transactions
--Other
Book value of the equity investment in
associates
Fair value of an equity investment in
associates where there is a public offer
Operating income
Net profit
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income
Dividends received from associates
during the year
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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 of the following items calculated by
shareholding ratio
Other information
(5) Explanation of significant restrictions on the ability of joint ventures or associates to transfer funds to the
Company
(6) Excess losses incurred by joint ventures or associates
Unit: RMB
Unrecognized loss in the current
Name of joint ventures or Unrecognized loss accumulated Accumulated unrecognized loss
period (or net profit shared in the
associates in the previous period at the end of the period
current period)
Other information
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.
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The risks associated with these financial instruments and the risk management policies adopted by the Company
to reduce these risks 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, 2023
Unit: RMB
Financial assets
Financial assets measured at
measured at fair value
Financial assets measured at fair value and with variation
Item and with variation Total
amortized cost reckoned into current
reckoned into other
gains/losses
comprehensive income
Monetary funds 756,004,299.74 756,004,299.74
Accounts receivable 37,615,251.32 37,615,251.32
Other receivables 183,380,449.84 183,380,449.84
Investment in other equity
instruments 121,300,000.00 121,300,000.00
Other non-current financial
assets 27,680,000.00 27,680,000.00
(2) December 31, 2022
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
385,328,555.74 385,328,555.74
Accounts receivable
37,323,682.88 37,323,682.88
Other receivables
193,617,379.76 193,617,379.76
Other current assets
1,661.55 1,661.55
Investment in other equity
instruments 121,300,000.00 121,300,000.00
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Other non-current financial
assets 27,680,000.00 27,680,000.00
1.2 Book value of various financial liabilities on the balance sheet date
(1) June 30, 2023
Unit: RMB
Financial liabilities measured at fair value and
Item with variation reckoned into current Other financial liabilities Total
gains/losses
Short-term borrowings
40,000,000.00 40,000,000.00
Accounts payable 250,442,507.04 250,442,507.04
Other payables 2,091,514,542.12 2,091,514,542.12
Non-current liabilities due within
447,202,888.69 447,202,888.69
one year
lease liability 501,240,102.13 501,240,102.13
(2) December 31, 2022
Unit: RMB
Financial liabilities measured at fair value and
Item with variation reckoned into current Other financial liabilities Total
gains/losses
Accounts payable
287,088,393.76 287,088,393.76
Other payables
1,096,787,345.65 1,096,787,345.65
Non-current liabilities due within
one year 578,821,921.03 578,821,921.03
lease liability
508,752,253.77 508,752,253.77
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
company’s operations.
The goal of the Company is to maintain the balance between the sustainability and flexibility of financing
through a variety of financing instruments, including bank loans and other interest-bearing loans.
When managing liquidity risks, the Company shall maintain sufficient cash and cash equivalents as
deemed by the management and monitor them to meet the Company’s operational needs and reduce the impact
of cash flow fluctuations. The management monitor the use of bank loans and ensures compliance with loan
agreements.
Maturity analysis of financial liabilities based on undiscounted contract cash flow:
Unit: RMB
Item June 30, 2023
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings
40,000,000.00 40,000,000.00
Accounts payable 250,442,507.04 250,442,507.04
Other payables 2,091,514,542.12 2,091,514,542.12
Non-current liabilities due
447,202,888.69 447,202,888.69
within one year
Lease liability
463,602,085.13 37,638,017.00 501,240,102.13
Item December 31, 2022
Within 1 year 1-5 years Over 5 years Total
Accounts payable
287,088,393.76 287,088,393.76
Other payables
1,096,787,345.65 1,096,787,345.65
Non-current liabilities due
within one year 595,905,159.21 595,905,159.21
lease liability
504,849,923.25 37,638,017.00 542,487,940.25
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
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
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Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
I. Continuous fair value
-- -- -- --
measurement
1. Transactional financial asset 1,000,000.00 27,680,000.00 28,680,000.00
(1) Financial asset at fair value
1,000,000.00 27,680,000.00 28,680,000.00
through profit or loss
① Debt instruments 1,000,000.00 27,680,000.00 28,680,000.00
3. Other equity instruments 121,300,000.00 121,300,000.00
Total assets measured continuously
1,000,000.00 148,980,000.00 149,980,000.00
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 ongoing second-level fair value measurement items are mainly financial products, which adopt
the discounted cash flow method and consider the expected rate of return to determine the fair value.
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 ongoing third-level fair value measurement items are mainly non-trading equity instrument
investments and debt instrument investments, using the market method and taking into account liquidity
discounts to determine fair value.
None.
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.
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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. As of June 30, 2023, the
combined shareholding of Li Yongxin and Lu Zhongfang accounted for 17.10% of the Company’s share capital.
Other explanation:
2. Subsidiaries of the Company
For details of the subsidiaries of the Company, see Note IX (1) “Interest in subsidiaries”.
3. Joint ventures and associates of the Company
The important joint ventures or associates of the Company are detailed in the notes.
The information of other joint ventures or associates that have related party transactions with the Company in
the current period or that have related party transactions with the Company in the previous period to form a
balance is as follows:
Name of joint ventures or associates Relationship with the Company
Offcn Xietong (Jiaxing) Human Resources Co., Ltd. Joint ventures
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
Lu Zhongfang Person acting in concert with the actual controller
Wang Zhendong The Company’s director/ senior manager/ shareholder who
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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
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
Shenyang Lijing Mingzhu 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
Beijing Qianqiu Intelligence Book & Media Co., Ltd. Same ultimate controller
Beijing Haidian Offcn Training School Same ultimate controller
Beijing Haidian Baoquan Financial Training Centre Same ultimate controller
Zhanjiang Xiashan Offcn Training Centre Same ultimate controller
Haikou Meilan Offcn Training School Same ultimate controller
Baoding Lianchi Offcn Training School Same ultimate controller
Cangzhou Yunhe Offcn Training School Same ultimate controller
Handan Congtai Offcn Training School Same ultimate controller
Tangshan Lunan Offcn Training School Same ultimate controller
Heihe Aihui Offcn Training Centre Same ultimate controller
Chifeng Hongshan Offcn Training Centre Same ultimate controller
Leshan Shizhong Offcn Training School Same ultimate controller
Kiamusze Offcn Training School Same ultimate controller
Mudanjiang Xi’an Offcn Training School Same ultimate controller
Urumchi Saybagh Offcn Training Centre Same ultimate controller
Yiyang Heshan Offcn Training School Same ultimate controller
Shaoyang Shuangqing Offcn Training School Same ultimate controller
Chengdu Wuhou Offcn Training School Same ultimate controller
Other information:
Note: This report only lists related parties that have business dealings with the Company during the reporting
period.
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)
152
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Zhanjiang Xiashan
Joint school
Offcn Training 180,000.00 N 160,000.00
running
Centre
Mudanjiang Xi’an
Joint school
Offcn Training 24,000.00 N 24,500.00
running
School
Baoding Lianchi
Joint school
Offcn Training 20,000.00 N 70,000.00
running
School
Handan Congtai
Joint school
Offcn Training 15,000.00 N 55,000.00
running
School
Cangzhou Yunhe
Joint school
Offcn Training 12,000.00 N 30,000.00
running
School
Leshan Shizhong
Joint school
Offcn Training N 45,000.00
running
School
Tangshan Lunan
Joint school
Offcn Training N 40,000.00
running
School
Kiamusze Offcn Joint school
N 21,500.00
Training School running
Heihe Aihui Offcn Joint school
N 9,000.00
Training Centre running
Ji'an Jingkai
Lixiangxue
Financial Service charge N 53,826,973.44
Information
Service Co., Ltd.
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 1,323,584.91 1,682,075.47
Explanations for the procurement and sales of goods and rendering and receiving service:
(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
Explanations for related entrustment and contracting:
The table of the Company’s entrusted management and outsourcing
Unit: RMB
153
Offcn Education Technology Co., Ltd. 2023 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 low-
included in the Interest expense on Increased right-of-
value assets with Rent paid
measurement of lease liability use assets
Name 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, 1,057,8 1,065,1
u Hotel 0.00 0.00
ng lease 700.00 46.24 85.72
Manage
ment
Co.,
Ltd.
Explanations of related lease
(4) Related guarantees
The Company as the guarantor
Unit: RMB
Whether the guarantee
Guaranteed party Guarantee amount Guarantee start date Guarantee expiration date
has been fulfilled
The Company as the guaranteed party
Unit: RMB
Guarantee expiration Whether the guarantee
Guarantor Guarantee amount Guarantee start date
date has been fulfilled
154
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Explanations of related guarantees
(5) Borrowing from related parties
Unit: RMB
Related party Amount Start date Expiration date Description
Borrowed:
Lu Zhongfang 837,000,000.00 Nov. 4, 2022 Nov. 4, 2023
Lu Zhongfang 160,000,000.00 Dec. 6, 2022 Dec. 6, 2023
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
(7) Remuneration for key management personnel
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
2,389,966.84 2,410,085.37
personnel
(8) Other related transactions
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 1,403,000.00
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 1,618,411,145.38
assets Technology Co.,
Ltd.
Total 1,625,489,345.38 1,624,086,345.38
(2) Payables
Unit: RMB
155
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Item Related party Closing book balance Opening book balance
Accounts payables Shaanxi Guancheng Industrial Co., Ltd. 43,060,000.00 43,060,000.00
Beijing Chuangsheng Construction
Accounts payables 14,506,981.00 14,506,981.00
Decoration Engineering Co., Ltd.
Other payables Lu Zhongfang 1,956,240,000.00 959,240,000.00
Ji'an Jingkai Lixiangxue Financial
Other payables 14,383,404.77
Information Service Co., Ltd.
Total 2,013,806,981.00 1,031,190,385.77
7. Commitments of related parties
8. Others
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
156
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
2. Contingencies
(1) Important contingencies on balance sheet date
As of June 30, 2023, the Company was involved in a dispute over liability for securities misrepresentation sued
by some investors, and according to the litigation process arrangement of the Beijing Financial Court, the court
did not deliver the complaint and all the litigation materials of the above case to the Company, so the Company
could not fully sort out the litigation amount and could not estimate the amount of losses that the Company
might incur as a result.
(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
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
Corrections of accounting errors Processing procedures Report item of the affected Cumulative impact
157
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
comparison period
(2) Prospective application
Reasons for adopting prospective
Corrections of accounting errors Approval procedure
application
2. Debt restructuring
None
3. Assets exchange
(1) Non-monetary asset exchange
None
(2) Other assets exchange
None
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.
158
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
(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
1,709,619,356.64 2,216,651,869.28
Including: education and training
1,709,619,356.64 2,216,651,869.28
Other businesses
18,719,090.11 10,053,092.8
Total
1,728,338,446.75 2,226,704,962.11
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
1,728,338,446.75 2,226,704,962.11
Total
1,728,338,446.75 2,226,704,962.11
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 value
Amount Amount Amount Amount
on tion on ion
Including:
Accounts 24,95
31,157,00 100.00 6,200,86 19.90 31,157, 100.00 4,672,0 26,484,98
receivables for 6,140 15.00%
7.42 % 6.98 % 007.42 % 23.07 4.35
which bad debt .44
159
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
provision has been
assessed by credit
risk portfolios
Including:
24,95
Combination 3 31,157,00 100.00 6,200,86 19.90 31,157, 100.00 4,672,0 26,484,98
6,140 15.00%
7.42 % 6.98 % 007.42 % 23.07 4.35
.44
24,95
Total 31,157,00 100.00 6,200,86 31,157, 100.00 4,672,0 26,484,98
6,140
7.42 % 6.98 007.42 % 23.07 4.35
.44
Bad debt provision assessed by credit risk portfolios: RMB 6,200,866.98
Unit: RMB
Closing balance
Item
Book balance Bad debt provision Proportion
Combination 3 31,157,007.42 6,200,866.98 19.90%
Total 31,157,007.42 6,200,866.98
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
1-2 years 7,945,744.39
2-3 years 15,570,863.62
More than 3 years 7,640,399.41
3-4 years 7,640,399.41
Total 31,157,007.42
(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
4,672,023.07 1,528,843.91 6,200,866.98
of accounts receivables
Total 4,672,023.07 1,528,843.91 6,200,866.98
160
Offcn Education Technology Co., Ltd. 2023 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 99.95% 6,199,338.94
Chuzhou Xinqiao Motor
Vehicle Brokerage Service 10,120.20 0.03% 1,012.02
Co., Ltd.
Chuzhou Dongfangzhilian
5,160.24 0.02% 516.02
Logistics Co., Ltd.
Total 31,157,007.42 100.00%
(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 24,823,587.35 22,848,853.79
Total 24,823,587.35 22,848,853.79
161
Offcn Education Technology Co., Ltd. 2023 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 24,787,987.35 22,843,253.79
Deposits and guarantees 35,600.00 5,600.00
Total 24,823,587.35 22,848,853.79
162
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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, 2023
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) 2,884,161.90
1 to 2 years 2,489,178.85
2 to 3 years 1,173,242.16
more than 3 years 18,277,004.44
3-4 years 2,609,130.67
4-5 years 15,667,873.77
Total 24,823,587.35
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
163
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
4) Other receivables written off in current period
Unit: RMB
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 Current
10,832,959.73 Within 4 years 43.64% 0.00
Driver Training School Co., Ltd. payment
Wuhu Yawei Automobile Sales Current
4,142,267.49 Within 4 years 16.69% 0.00
Service Co., Ltd. payment
Suzhou Bokai Automobile Sales Current
4,019,591.81 Within 4 years 16.19% 0.00
Service Co., Ltd. payment
Huangshan Yaxia Fudi Automobile Current
2,067,532.57 Within 4 years 8.33% 0.00
Sales Service Co., Ltd. payment
Lu’an Zhongke Real Estate Current
1,320,780.00 Within 2 years 5.32% 0.00
Information Consulting Co., Ltd payment
Total -- 22,383,131.60 90.17% 0.00
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
7) Other receivables derecognized due to the transfer of financial assets
8) Assets and liabilities arising from transferring other receivables and continuing to be involved
Other information:
3. Long-term equity investment
Unit: RMB
164
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Closing balance Opening balance
Provisi Provision
Item on for for
Book balance Book value Book balance Book value
impair impairme
ment nt
Investment in
19,143,591,207.14 19,143,591,207.14 19,143,591,207.14 19,143,591,207.14
subsidiaries
Investment in
associates and 46,804,381.92 46,804,381.92 46,810,376.23 46,810,376.23
joint ventures
Total 19,190,395,589.06 19,190,395,589.06 19,190,401,583.37 19,190,401,583.37
(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
Ningguo Yaxia Motor
Vehicle Driver Training 17,474,782.14 17,474,782.14
School (Co., Ltd.)
Huangshan Yaxia Fudi
Automobile Sales Services 5,000,000.00 5,000,000.00
Co., Ltd.
Chaohu Yaxia Kaixuan
Automobile Sales Service 5,000,000.00 5,000,000.00
Co., Ltd.
Bozhou Yaxia Motor
Vehicle Driver Training 20,000,000.00 20,000,000.00
School Co., Ltd.
Suzhou Bokai Automobile
11,833,125.00 11,833,125.00
Sales Service Co., Ltd.
Total 19,143,591,207.14 19,143,591,207.14
(2) Investment in associated enterprises and joint ventures
Unit: RMB
165
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Increase and decrease in current period
Closing
Investment Other balance
Opening gains and Closing
Compre of
balance Addition Investme losses Other Declared Provision balance
Investor al hensive provisi
(Book nt cash for (Book
recognized Equity Others on for
value) investme reduction under the income dividends impairme value)
changes or profits impairme
nt equity adjustm nt
nt
ent
method
I Joint ventures
Offcn
Xietong
(Jiaxing) 2,266.2 4,441.7
2,175.50
Human 2 2
Resources
Co., Ltd.
2,266.2 4,441.7
Subtotal 2,175.50
2 2
II Associates
Beijing
Offcn Future
Education 46,808,11 46,799,94
-8,169.81
0.01 0.20
Technology
Co., Ltd.
Subtotal 46,808,11 46,799,94
-8,169.81
0.01 0.20
Total 46,810,37 46,804,38
-5,994.31
6.23 1.92
(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 1,166,825.72 93,878.98 427,884.19 5,597,571.75
Total 1,166,825.72 93,878.98 427,884.19 5,597,571.75
Income related information:
Unit: RMB
Contract
Segment 1 Segment 2 Total
Classification
Product type
166
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Including:
Classification by
business area
Including:
Market or customer
type
Including:
Contract type
Including:
Classification of goods
by time of transfer
Including:
Classification by
contract duration
Including:
Classification by sales
channel
Including:
Total
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 annual revenue, 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
167
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
Item Amount for the current period Amount for the previous period
Long-term equity investment income by the equity
-5,994.31 -9,507,696.78
method
Dividend income from holding other equity
1,659,840.00 1,659,840.00
instrument investments
Financing income 74,257.03
Total 1,653,845.69 -7,773,599.75
6. Others
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 (including offsetting amount
-3,310,651.17
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 national policies 2,245,077.55
and continuously enjoyed in accordance with certain standards or quotas)
Profit or loss from entrusting others to invest or manage assets 2,429.11
Non-operating income and expenses other than the above -314,728.01
Less: Amount impacted by income tax -166,971.68
Total -1,210,900.84 --
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 of the Company 9.99% 0.01 0.01
Net profit attributable to common shareholders of the Company
10.13% 0.01 0.01
after deducting non-recurring gains and losses
168
Offcn Education Technology Co., Ltd. 2023 Semi-Annual Report
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.
4. Others
169
