Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Stock Code: 002607 Stock Abbr.: OFFCN EDU Announcement No.: 2023-083
OFFCN EDUCATION TECHNOLOGY CO., LTD.
Third Quarter 2023 Report
The Company and all the members of its Board of Directors hereby guarantee that the contents
disclosed are true, accurate, and complete, and that there are no misrepresentations, misleading
statements, or material omissions. This Report is prepared and published in Chinese and English
versions. Should there be any inconsistency between the Chinese version and English version, the Chinese
version shall prevail.
Important notes:
1. The Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior
management hereby guarantee that the contents of the quarterly report are true, accurate and complete, and that
there are no misrepresentations, misleading statements, or material omissions, and shall assume individual and
joint legal liabilities.
2. The Company’s legal representative, the head in charge of accounting and the head of the accounting
department (accounting supervisor), declare that they warrant the truthfulness, accuracy and completeness of
the financial report in the quarterly report.
3. Whether audit has been performed on this Third Quarter Report
□Yes No
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Section I. Key financial data
1. Key accounting information and financial indicators
Does the Company need to adjust its financial information retrospectively or restate its accounting information
of previous year?
□ Yes √ No
Increase/decrease
Increase/decrease in
from beginning of the
current reporting From beginning of
Current reporting year to the end of this
period over the same the year to the end of
period reporting period over
period of the previous this reporting period
the same period of the
year
previous year
Operating income (RMB) 937,511,111.22 -43.77% 2,665,849,557.97 -31.54%
Net profit attributable to
shareholders of the listed 160,055,193.08 134.55% 242,036,937.87 129.42%
Company (RMB)
Net profit attributable to
shareholders of the listed
Company after deducting 158,847,153.40 153.31% 242,039,799.03 128.78%
non-recurring gains and
losses (RMB)
Net cash flow from
— — -388,473,774.37 -124.44%
operating activities (RMB)
Basic earnings per share
0.03 200.00% 0.04 130.77%
(RMB/share)
Diluted earnings per share
0.03 200.00% 0.04 130.77%
(RMB/share)
Weighted average return on
16.88% 10.84% 26.86% 82.54%
net assets
End of the current End of the previous Increase/decrease at the end of current
reporting period year reporting period over end of the previous year
Total assets (RMB) 8,372,112,755.39 8,027,414,353.26 4.29%
Owner's equity attributable
to shareholders of the listed 1,021,970,873.64 779,933,935.77 31.03%
Company (RMB)
2. Items and amount of non-recurring gains and losses
√ Applicable □ Not applicable
Unit: RMB
Amount from beginning of
Amount of current reporting
Items the year to end of the Note
period
reporting period
Disposal gains or losses of
non-current assets (including
780,393.89 -2,530,257.28
the offset part of the provision
for asset impairment)
Government subsidies
796,911.50 3,041,989.05
included in the current gains
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
and losses (except the ones
that are closely related to the
normal business of the
Company, and are enjoyed
fixedly, quantitatively and
continuously in accordance
with national policies and
certain standards)
Gains or losses from
entrusting others to invest or 0.00 2,429.11
manage assets
Other non-operating income
and expenses except the items -132,669.90 -447,397.91
above
Less: Impact on income tax 236,595.81 69,624.13
Total 1,208,039.68 -2,861.16 --
Details of other gains or losses items that meet the definition of non-recurring gains and losses:
□ Applicable √ Not applicable
The Company has no other gains or losses items that meet the definition of non-recurring gains and losses.
Provide explanations for classifying items of non-recurring gains and losses defined or listed in the Explanatory
Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses as items
of recurring gains and losses.
□ Applicable √ Not applicable
There is no such case where the Company classifies non-recurring gains and losses items that are listed in the
Explanatory Announcement No. 1 for Public Company Information Disclosures – Non-recurring Profits and
Losses as items of recurring gains and losses.
3. Cases and reasons for fluctuation of key accounting information and financial indicators
√ Applicable □ Not applicable
Amount at the
Amount at the
Items of balance beginning of the
end of the period Growth Note
sheet period
(RMB)
(RMB)
Mainly due to the increase in external borrowing
Monetary fund 1,181,191,992.63 385,328,555.74 206.54%
during the current period.
Mainly due to the transfer of the parent
Investment properties 32,831,505.80 450,260.54 7191.67% company's leased assets to investment properties
in the current period.
Mainly due to the decreased original value of the
right-of-use assets resulting from the expiration
Right of use assets 774,282,250.33 1,112,202,447.58 -30.38%
and early withdrawal of leased houses in the
current period.
Short-term Mainly due to new loans from banks and other
548,024,722.22 0.00 100.00%
borrowings financial institutions in the current period.
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Mainly due to payment of social security that was
delayed in previous periods and the decrease in
Payroll payable 339,473,002.21 609,823,739.07 -44.33%
the payroll payable due to the reduction in the
number of employees in the current period.
Mainly due to the provision of value-added tax
Taxes payable 21,560,022.14 9,593,498.07 124.74%
and additional tax on the income in Q3 2023.
Mainly due to the increase in borrowings from
Other payable 1,870,804,948.51 1,096,787,345.65 70.57%
the controlling shareholder in the current period.
Mainly due to the decreased payment of rent due
Non-current liabilities
390,635,873.90 578,821,921.03 -32.51% within one year and the decrease in newly leased
due within one year
workplaces in the current period.
Items of income Amount in the Amount in the
Growth Note
statement current period previous period
Mainly due to the Company's adjustment of
product structure, reduction in branch offices and
Operating income 2,665,849,557.97 3,893,882,283.64 -31.54%
number of employees resulting in the decline in
business collections in the current period.
Mainly due to the Company’s measures including
comprehensive adjustment of product structure,
cost reduction and efficiency improvement, and
Operating cost 1,122,949,881.39 2,420,963,306.46 -53.62%
accelerated integration of online and offline
operations resulting in effective control of cost in
the current period.
Mainly due to the reduction in labor expenses
resulting from the Company's cost reduction and
Sale fees 536,556,578.58 1,074,477,624.74 -50.06% efficiency improvement measure including
cutting down sales personnel in the current
period.
Mainly due to the decrease of management
Management fees 383,587,843.44 687,206,762.68 -44.18% personnel and the reduction of labor expenses on
management personnel in the current period.
Mainly due to the Company's optimization of the
R&D team and the decrease of non-core business
R&D fees 219,481,184.19 482,232,337.63 -54.49%
R&D personnel, resulting in a corresponding
reduction in labor expenses in the current period.
Mainly due to the decrease in bank loan interest
Financial expenses 79,854,133.31 201,860,046.51 -60.44% and financial institution service fee in the current
period.
Mainly due to the reduction in tax incentives and
Other income 10,458,712.26 41,968,144.89 -75.08%
government subsidy in the current period.
Mainly due to investment losses in the previous
Investment income 1,652,189.90 302,234.51 446.66%
period.
Income from changes Mainly due to no changes in fair value in the
0.00 -3,445,201.84 100.00%
in fair value current period.
Mainly due to the increase in bad debt provision
Expected credit loss -16,138,847.81 -8,956,614.08 -80.19%
in the current period.
Income from asset Mainly due to the losses from the liquidation of
-2,530,257.28 289,728.74 -973.32%
disposal fixed assets in the current period.
Non-operating Mainly due to the decrease in extraordinary
447,397.91 4,786,252.04 -90.65%
expenses losses in the current period.
Mainly due to the provision of corporate income
Income tax expenses 52,993,027.19 -147,222,566.32 136.00% tax with the realization of profits in the current
period.
Items of cash flow Amount in current Amount in previous
Growth Note
statement period period
Mainly due to the Company’s adjustment on
Cash received from
product structure, significant reduction on the
sales of goods and 1,927,924,573.16 5,730,000,312.04 -66.35%
proportion of high-refundable courses and
rendering of services
reduction in the number of branches and
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
employees resulting in decreased business
collections in the current period.
Other cash received
Mainly due to the decrease in government
related to operating 27,615,231.83 50,093,501.17 -44.87%
subsidies in the current period.
activities
Mainly due to the Company’s measures of
adjustment on product structure, internal
Cash for purchasing
optimization, cost reduction and efficiency
goods and accepting 274,853,910.95 605,787,718.06 -54.63%
improvement resulting in efficient control of cost
labor services
and decease in operating expenses and travel
expenses.
Mainly due to the decrease in the number of
Cash paid to and for
1,641,645,688.67 2,994,758,849.49 -45.18% employees resulting in the corresponding salary
employees
payment decrease in the current period.
Mainly due to the decrease of the purchase of
Cash received from
short-term financial product and the
recovery of 22,700,000.00 473,468,673.81 -95.21%
corresponding reduction in financial product
investments
redemption in the current period.
Mainly due to the decrease in the financial
Cash received from product purchased in the current period and the
1,662,269.11 9,809,931.29 -83.06%
investment income corresponding decrease in income from the
financial product.
Cash paid for the
purchase and
Mainly due to the Company's internal
construction of fixed
1,851,305.25 107,941,393.57 -98.28% optimization and cost control mechanism
assets, intangible
resulting in reduction in fixed asset investment.
assets and other long-
term assets
Cash paid for Mainly due to the decrease in the purchase of
22,400,000.00 124,141,028.16 -81.96%
investments short-term financial product in the current period.
Mainly due to no new repayment loans in the
Cash paid for debt 0.00 2,949,000,000.00 -100.00%
current period.
Cash paid for
Mainly due to the decreased interest on loan
dividends, profits or 1,346,166.65 50,716,278.78 -97.35%
repayment in the current period.
interest payments
Section II. Shareholders
1. Table on the total number of common shareholders and preferred shareholders with restored voting
rights and shares held by the top 10 shareholders
Unit: share(s)
Total number of common shareholders Total number of preferred shareholders with restored
241,021 0
at the end of reporting period voting rights at end of the reporting period (if any)
Particulars about shares held by the top 10 shareholders
Number of Pledged, marked or frozen
Name of Nature of Shareholding Number of
shares held with Number of
shareholder shareholder percentage shares Status of shares
sales restrictions shares
Domestic natural
Li Yongxin 15.31% 944,407,232.00 729,458,502.00 Pledged 658,807,945.00
person
Domestic natural
Wang Zhendong 9.30% 573,799,534.00 570,581,563.00 Pledged 455,586,200.00
person
Hunan Chasing
Fund Other 5.51% 339,820,822.00 0
Management
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Co., Ltd.-Hunan
Chasing
Changqin No.1
Fund Partnership
(Limited
Partnership)
Shaanxi
International
Trust Co., Ltd.-
SIT Yunqi No. 1
Other 4.94% 304,537,300.00 0
Securities
Investment
Collective Fund
Trust Plan
Shanghai Tuopai
Private Funds
Management
Co., Ltd.-Tuopai Other 2.30% 141,700,838.00 0
Xingfeng No. 9
Private Security
Investment Fund
Guangzhou
Kangqi Asset
Management
Center (Limited
Partnership)- Other 1.75% 108,142,973.00 0
Kangqi Asset
Chuxin No.1
Private Security
Investment Fund
Domestic natural
Lu Zhongfang 1.37% 84,679,398.00 0 Pledged 24,000,000.00
person
Hong Kong
Securities
Overseas legal person 1.25% 76,800,877.00 0
Clearing Co.,
Ltd.
Domestic natural
Zhou Xiayun 0.92% 56,658,662.00 0
person
Beijing Kerui
Technology
Innovation Domestic non-state-
0.89% 54,887,323.00 0
Investment owned legal person
Center (Limited
Partnership)
Particulars about shares held by the top 10 shareholders without sales restrictions
Type and number of shares
Name of shareholder Number of shares held without sales restrictions Number of
Type of shares
shares
Hunan Chasing Fund Management Co.,
RMB common
Ltd.-Hunan Chasing Changqin No.1 339,820,822 339,820,822
shares
Fund Partnership (Limited Partnership)
Shaanxi International Trust Co., Ltd.- 304,537,300 RMB common 304,537,300
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
SIT Yunqi No. 1 Securities Investment shares
Collective Fund Trust Plan
RMB common
Li Yongxin 214,948,730 214,948,730
shares
Shanghai Tuopai Private Funds
RMB common
Management Co., Ltd.-Tuopai Xingfeng 141,700,838 141,700,838
shares
No. 9 Private Security Investment Fund
Guangzhou Kangqi Asset Management
Center (Limited Partnership)-Kangqi RMB common
108,142,973 108,142,973
Asset Chuxin No.1 Private Security shares
Investment Fund
RMB common
Lu Zhongfang 84,679,398 84,679,398
shares
RMB common
Hong Kong Securities Clearing Co., Ltd. 76,800,877 76,800,877
shares
RMB common
Zhou Xiayun 56,658,662 56,658,662
shares
Beijing Kerui Technology Innovation RMB common
54,887,323 54,887,323
Investment Center (Limited Partnership) shares
RMB common
Luo Huanxiao 39,232,752 39,232,752
shares
The Company's controlling shareholder and actual controller Lu
Zhongfang and Li Yongxin are in a mother-son relationship. Lu
Zhongfang, Li Yongxin, and Beijing Offcn Future Information
Consulting Center (Limited Partnership) constitute persons acting in
Description of the relationship or concerted action
concert.
among the above mentioned shareholders
It is unknown whether there is an associated relationship among the
above-mentioned other shareholders, nor whether the above-mentioned
shareholders belong to the parties acting in concert as stipulated in the
Administrative Measures on Acquisition of Listed Companies.
Description of the top 10 shareholders participating in
None
the margin trading and short selling business (if any)
2. Table on the total number of preferred shareholders and shares held by the top 10 preferred
shareholders
□ Applicable √ Not Applicable
Section III. Other significant events
□ Applicable √ Not Applicable
Section IV. Financial statements of the first three quarters
1. Financial statements
(1) Consolidated balance sheet
Company: Offcn Education Technology Co., Ltd.
September 30, 2023
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Unit: RMB
Item September 30, 2023 January 1, 2023
Current assets:
Monetary funds 1,181,191,992.63 385,328,555.74
Settlement reserve
Lendings
Transactional financial assets 500,000.00
Derivative financial assets
Notes receivable
Accounts receivable 38,016,777.58 37,323,682.88
Receivables financing
Prepayments 480,151.00 556,093.00
Premium receivable
Accounts receivable reinsurance
Reserve for reinsurance receivable
contracts
Other receivables 176,792,252.13 193,617,379.76
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 4,277,493.36 4,559,823.18
Total current assets 1,401,258,666.70 621,385,534.56
Non-current assets:
Loans and advances
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 46,825,873.42 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 32,831,505.80 450,260.54
Fixed assets 1,860,482,140.20 1,970,536,339.75
Construction in progress 326,909,691.07 323,273,645.99
Productive biological assets
Oil and gas assets
Right-of-use asset 774,282,250.33 1,112,202,447.58
Intangible assets 1,133,610,693.74 1,162,266,659.34
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Development expenditure
Goodwill 99,867,720.38 99,867,720.38
Long-term prepaid expenses 219,591,241.51 285,134,318.63
Deferred tax assets 674,071,942.75 772,016,405.47
Other non-current assets 1,653,401,029.49 1,654,201,029.49
Total non-current assets 6,970,854,088.69 7,575,764,779.80
Total assets 8,372,112,755.39 8,197,150,314.36
Current liabilities:
Short-term loan 548,024,722.22
Borrowing from the central bank
Borrowings from banks and other
financial institutions
Transactional financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 278,136,693.17 287,088,393.76
Deposit received
Contract liabilities 3,158,709,581.40 3,949,799,538.71
Financial assets sold for repurchase
Absorbing deposits and interbank
deposits
Acting trading securities
Acting underwriting securities
Payroll payable 339,473,002.21 609,823,739.07
Taxes payable 21,560,022.14 9,593,498.07
Other payable 1,870,804,948.51 1,096,787,345.65
Including:interest payable
Dividend payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held-for-sale
Non-current liabilities due within one
390,635,873.90 578,821,921.03
year
Other current liabilities 94,761,287.44 118,495,201.91
Total current liabilities 6,702,106,130.99 6,650,409,638.20
Non-current liabilities:
Insurance contract reserve
Long-term loan
Bonds payable
Bonds payable_preferred stock
Bonds payable_perpetual bond
Lease liability 436,470,311.32 508,752,253.77
Long-term payables
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Long-term salary payable
Estimated liabilities
Deferred income
Deferred tax liability 211,614,971.54 258,096,085.13
Other non-current liabilities
Total non-current liabilities 648,085,282.86 766,848,338.90
Total Liabilities 7,350,191,413.85 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 preparation
Undistributed profits -358,692,798.86 -600,729,736.73
Total owner's equity attributable to the
1,021,970,873.64 779,933,935.77
parent company
Minority shareholders' equity -49,532.10 -41,598.51
Owners' equity 1,021,921,341.54 779,892,337.26
Liabilities and owner's equity 8,372,112,755.39 8,197,150,314.36
Legal representative: Wang Zhendong
Person in charge of accounting: Shi Lei
Head of accounting department: Luo Xue
(2) Consolidated income statement from beginning of the year to the end of the reporting period
Unit: RMB
Item Amount in the current period Amount in the prior period
I. Total operating income 2,665,849,557.97 3,893,882,283.64
Including:operating income 2,665,849,557.97 3,893,882,283.64
Interest income
Premium earned
Fee and commission income
II. Total operating costs 2,363,821,925.66 4,889,172,465.44
Including: operating cost 1,122,949,881.39 2,420,963,306.46
Interest expense
Fee and commission expenses
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Surrender money
Net reimbursement expenditure
Withdrawal of net insurance liability reserves
Policyholder dividend expenses
Reinsurance expenses
Taxes and surcharges 21,392,304.75 22,432,387.42
Sales expenses 536,556,578.58 1,074,477,624.74
Management expenses 383,587,843.44 687,206,762.68
R&D expenses 219,481,184.19 482,232,337.63
Financial expenses 79,854,133.31 201,860,046.51
Including: interest expenses 18,451,210.96 76,716,263.41
Interest income 398,789.14 6,914,684.21
Add: other income 10,458,712.26 41,968,144.89
Investment income (Loss is listed with “-”) 1,652,189.90 302,234.51
Including: investment income from associates and joint ventures -10,079.21
Derecognition income of financial assets measured at amortized
cost
Exchange earnings (Loss is listed with “-”)
Net exposure hedge income (Loss is listed with “-”)
Income from changes in fair value (Loss is listed with “-”) -3,445,201.84
Expected credit loss (Loss is listed with “-”) -16,138,847.81 -8,956,614.08
Asset impairment loss (Loss is listed with “-”)
Asset disposal income (Loss is listed with “-”) -2,530,257.28 289,728.74
III. Operating profit (Loss is listed with “-”) 295,469,429.38 -965,131,889.58
Add: non-operating income
Less: non-operating expenses 447,397.91 4,786,252.04
IV. Total profit (The total loss is listed with “-”)） 295,022,031.47 -969,918,141.62
Less: income tax expenses 52,993,027.19 -147,222,566.32
V. Net profit (Net loss is listed with “-”) 242,029,004.28 -822,695,575.30
i. Classified by business continuity
1.Net profit from continuing operations (Net loss is listed
242,029,004.28 -822,695,575.30
with “-”)
2.Net profit from discontinued operations (Net loss is listed
with “-”)
ii. Classification by ownership
1. Net profit attributable to the shareholders of the parent
242,036,937.87 -822,691,656.02
company(Net loss is listed with “-”)
2. Minority shareholders' gains and losses (Net loss is
-7,933.59 -3,919.28
listed with “-”)
VI. Net other comprehensive income
Net other comprehensive income attributable to the parent
company owner
i. Other comprehensive income that cannot be
reclassified into profit or loss
1. Changes from the remeasurement of the defined benefit plan
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
2. Other comprehensive income that cannot be
transferred to profit or loss under the equity method
3. Changes in fair value of other equity instruments
4. Changes in fair value of the Company's own credit
risk
5. Other
ii. Other comprehensive income that will be reclassified
into profit or loss
1. Other comprehensive income of convertible profit and
loss under the equity method
2. Changes in fair value of other debt investments
3. Financial assets reclassified into other comprehensive
income
4. Credit impairment provisions of other debt investment
5. Cash flow hedge reserve
6. Foreign currency financial statement translation
difference
7.Other
Net other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 242,029,004.28 -822,695,575.30
i. Total comprehensive income attributable to owners of
242,036,937.87 -822,691,656.02
the parent company
ii. Total comprehensive income attributable to minority
-7,933.59 -3,919.28
shareholders
VIII. Earnings per share:
i. Basic earnings per share 0.04 -0.13
ii. Diluted earnings per share 0.04 -0.13
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
(3) Consolidated cash flow statement from beginning of the year to the end of the reporting period
Unit: RMB
Item Amount in the current period Amount in the prior period
I. Cash flow from operating activities:
Cash received from the sale of goods and
1,927,924,573.16 5,730,000,312.04
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
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Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Net increase in policyholders’ deposits
and investment funds
Cash charged with interest, handling
fees and commissions
Net increase in funds borrowed in
Net increase in repurchase funds
Net cash received from agent buying
and selling of securities
Tax refund
Other cash received related to other
27,615,231.83 50,093,501.17
business activities
Subtotal of cash inflow from operating
1,955,539,804.99 5,780,093,813.21
activities
Cash paid for the purchase of goods
274,853,910.95 605,787,718.06
and services
Net increase in customer loans and
advances
Net increase in deposit of central bank
and interbank
Cash paid for the original insurance
contract
Net increase in borrowed funds
Cash paid for interest, handling fees
and commissions
Cash paid for policy dividends
Cash paid to and for employees 1,641,645,688.67 2,994,758,849.49
Various taxes paid 82,066,491.26 102,676,276.00
Other cash paid for business activities 345,447,488.48 487,232,102.77
Subtotal of cash outflows from business
2,344,013,579.36 4,190,454,946.32
activities
Net cash flow from operating activities -388,473,774.37 1,589,638,866.89
II. Cash flows from investing activities:
Cash received from investment recovery 22,700,000.00 473,468,673.81
Cash received from investment income 1,662,269.11 9,809,931.29
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
24,362,269.11 483,278,605.10
investment activities
Cash paid for the purchase and
construction of fixed assets, intangible 1,851,305.25 107,941,393.57
assets and other long-term assets
Cash paid for investment 22,400,000.00 124,141,028.16
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
24,251,305.25 232,082,421.73
investment activities
13
Offcn Education Technology Co., Ltd. Third Quarter 2023 Report
Net cash flows from investing
110,963.86 251,196,183.37
activities
III. Cash flow from financing activities:
Cash received from investment
absorption
Including:cash received from
subsidiaries in absorbing minority
shareholders' investment
Cash received from the loan 548,000,000.00
Other cash received related to
997,000,000.00
fundraising activities
Subtotal of cash inflows from
1,545,000,000.00
financing activities
Cash paid for debt repayment 2,949,000,000.00
Cash paid for dividends, profits or
1,346,166.65 50,716,278.78
interest payments
Including:dividends and profits paid
by subsidiaries to minority shareholders
Other cash paid related to financing
359,229,668.75 353,781,444.16
activities
Subtotal of cash outflows from financing
360,575,835.40 3,353,497,722.94
activities
Net cash flow from financing activities 1,184,424,164.60 -3,353,497,722.94
IV. Effect of the changes of the exchange
rate on cash and the equivalents
V. Net increase in cash and cash
796,061,354.09 -1,512,662,672.68
equivalents
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
1,176,947,253.46 457,143,336.88
at the end of the period
2. The new Accounting Standards is implemented for the first time since the 2023 and related items of financial statements
at the beginning of the year is adjusted.
Applicable □ Not applicable
Adjustment description
Consolidated balance sheet
Item January 1, 2023 December 31, 2022 Adjustments
Deferred tax assets 772,016,405.47 602,280,444.37 169,735,961.10
Deferred tax liabilities 258,096,085.13 88,360,124.03 169,735,961.10
3. Auditor’s report
Whether this Third Quarter 2023 Report has been audited
□ Yes √ No
The Company’s Third Quarter 2023 Report has not been audited.
Board of Directors of Offcn Education Technology Co., Ltd.
October 27, 2023
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