Stock Code: 002607 Stock Abbr.: OFFCN EDU Announcement No.: 2022-044
OFFCN EDUCATION TECHNOLOGY CO., LTD.
First Quarter 2022 Report
Important notes:
1. The Company’s Board of Directors, Supervisory Committee, directors, supervisors, and senior managementhereby guarantee that the contents of this quarterly report are true, accurate, and complete, and there are nomisrepresentations, misleading statements, or material omissions, and shall assume individual and joint legalliabilities.
2. The Company’s legal representative, the head in charge of accounting and the head of the accounting department(Accounting supervisor), hereby declare that the financial report in this quarterly report is authentic, accurate andcomplete.
3. Whether this first quarter report is audited
□ Yes √ No
Section I. Key financial data
1. Key accounting information and financial indicators
Does the Company need to adjust its financial information retrospectively or restate its accounting information ofprevious year?
□ Yes √ No
The Company and the Company’s Board of Directors hereby guarantee that the contents of this quarterly report are true,accurate, and complete, and that there are no misrepresentations, misleading statements, or material omissions.The Company’s First Quarter 2022 Report is prepared and published in Chinese version, and the English version is forreference only. Should there be any inconsistency between the Chinese version and English version, the Chinese version shallprevail.
| Current reporting period | Same period of the previous year | Increase/ Decrease in the current reporting period over the same period of the previous year |
| Operating income (RMB yuan) | 1,212,740,311.93 | 2,051,691,383.47 | -40.89% |
| Net profit attributable to shareholders of the listed Company (RMB yuan) | -463,824,594.93 | 140,729,639.84 | -429.59% |
| Net profit after deducting non-recurring profits and losses attributable to shareholders of the listed Company (RMB yuan) | -469,727,159.08 | 92,213,329.43 | -609.39% |
| Net cash flow from operating activities (RMB yuan) | 598,889,061.73 | -246,724,873.67 | 342.74% |
| Basic earnings per share (RMB yuan/share) | -0.08 | 0.02 | -500.00% |
| Diluted earnings per share (RMB yuan/ share) | -0.08 | 0.02 | -500.00% |
| Weighted average return on net assets | -27.99% | 3.24% | -31.23% |
| End of the current reporting period | End of the previous year | Increase/ Decrease at the end of this reporting period over the end of the previous year | |
| Total assets (RMB yuan) | 9,200,482,823.27 | 10,305,183,525.70 | -10.72% |
| Owner's equity attributable to shareholders of the listed Company (RMB yuan) | 1,424,994,159.27 | 1,888,818,754.20 | -24.56% |
2. Items and amount of non-recurring profits and losses
√ Applicable □ Not applicable
Unit: RMB yuan
| Item | Amount of current reporting period | Description |
| Government subsidies included in the current gains and losses (closely related to the normal business of the enterprise, except for government subsidies enjoyed fixedly, quantitatively and continuously in accordance with national policies and certain standards) | 1,220,048.81 | |
| Profits or losses from entrusting others to invest or manage assets | 2,749,712.23 | |
| Profits and losses on changes in fair value arising from the possession of transactional financial assets, transactional financial liabilities, and the investment income from the disposal of transactional financial assets, transactional financial liabilities and available-for- sale financial assets, except the effective hedging business related to the Company’s normal business operations. | 2,674,975.31 | |
| Other non-operating income and expenses except for the items above | -152,921.74 | |
| Less: Impact on income tax | 589,250.46 | |
| Total | 5,902,564.15 | -- |
Other profit or loss items that meet the definition of non-recurring profits and losses
□ Applicable √ Not applicable
The Company does not have other profit or loss items that meet the definition of non-recurring profits and losses.Explanations for the Company’s classifying items of non-recurring profits or losses listed in the ExplanatoryAnnouncement No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses as items ofrecurring profits or losses.
□ Applicable √ Not applicable
The Company does not classify any non-recurring profits and losses items that are listed in the ExplanatoryAnnouncement No. 1 for Public Company Information Disclosures – Non-recurring Profits and Losses as items ofrecurring profits and losses.
3. Cases and reasons for fluctuation of key accounting information and financial indicators
√ Applicable □ Not Applicable
| Item of balance sheet | Amount at the end of the reporting period (RMB yuan) | Amount at the beginning of the reporting period (RMB yuan) | Growth | Note |
| Monetary funds | 1,129,779,804.27 | 1,970,361,272.64 | -42.66% | Mainly due to the repayment of short-term loans in the current period |
| Transactional financial assets | 118,374,738.18 | 346,726,621.74 | -65.86% | Mainly due to the maturity redemption of wealth management products |
Other current assets
| Other current assets | 22,946,171.86 | 36,959,129.80 | -37.91% | Mainly due to the increase of prepaid expenses |
| Short-term loans | 1,651,209,492.99 | 3,152,945,812.59 | -47.63% | Mainly due to the repayment of short-term loans in the current period |
| Contract liabilities | 4,034,759,242.27 | 3,063,721,290.28 | 31.69% | Mainly due to the increase of collecting training fees from civil servant recruitment and post-graduate examinations in the first quarter of 2022 |
| Tax payable | 28,432,694.84 | 12,566,751.84 | 126.25% | Mainly due to accrued VAT and additional tax on the income of first quarter of 2022 |
| Other current liabilities | 121,042,777.27 | 91,925,853.39 | 31.67% | Mainly due to the increase in the balance of contract liabilities at the end of the first quarter of 2022 |
Item of incomestatement
| Item of income statement | Amount of current period (RMB yuan) | Amount of previous period (RMB yuan) | Growth | Note |
| Operating income | 1,212,740,311.93 | 2,051,691,383.47 | -40.89% | Mainly due to the pandemic prevention and control, the number of offline classes in the first quarter of 2022 was reduced compared with the same period of the previous year, as well as the postponement of the multi-provincial joint examination of civil servant recruitment |
Taxes and surcharges
| Taxes and surcharges | 8,798,438.13 | 3,125,104.09 | 181.54% | Mainly due to the tax incentives in the same period of the previous year |
| Financial expense | 69,571,481.28 | 108,656,990.19 | -35.97% | Mainly due to the decrease in interest expense on short-term loans in the current period |
Other income
| Other income | 8,268,197.61 | 60,454,036.43 | -86.32% | Mainly due to the tax incentives included in other income in the same period of the previous year |
| Investment income | 2,755,592.22 | 32,350,483.88 | -91.48% | Mainly due to the decrease in income from wealth management products and fixed time deposit redemption |
| Credit impairment loss | -1,005,625.25 | -239,123.84 | 320.55% | Mainly due to the increase in accounts receivable and the increase in accrued bad debt |
| Income tax expense | -81,122,491.94 | 24,090,187.92 | -436.74% | Mainly due to the accrual of deferred income tax assets in the current period |
Item of cash flowstatement
| Item of cash flow statement | Amount of current period (RMB yuan) | Amount of previous period (RMB yuan) | Growth | Note |
| Other cash received related to operating activities | 22,063,195.70 | 8,365,632.60 | 163.74% | Mainly due to the recovery of deposits in the current period |
Cash for purchasinggoods and laborservices
| Cash for purchasing goods and labor services | 210,528,840.27 | 389,263,578.68 | -45.92% | Mainly due to the impact of the pandemic in many provinces and cities, the number of offline classes in the current period was reduced and operational cost and spending decreased |
Cash paid to and foremployees
| Cash paid to and for employees | 1,224,818,887.78 | 1,788,537,241.10 | -31.52% | Mainly due to the reduction of the Company’s personnel and the impact of operating losses on the performance incentives of employees |
| Taxes paid | 25,331,722.29 | 81,728,859.56 | -69.01% | Mainly due to the loss in the fourth quarter of the previous year and the non-payment of enterprise income tax in this quarter |
Cash received fromrecoveryof investments
| Cash received from recovery of investments | 344,776,858.87 | 4,234,310,000.00 | -91.86% | Mainly due to the decrease in short-term wealth management purchases in the current period and the corresponding reduction in wealth management redemptions |
| Cash received from investment income | 2,764,585.77 | 11,192,589.09 | -75.30% | Mainly due to the decrease in short-term wealth management purchases in the current period and the corresponding decrease in redemptions |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 8,768,861.04 | 2,774,248,578.57 | -99.68% | Mainly due to the purchase of land use rights in the same period of the previous year |
| Cash paid for investment | 116,700,000.00 | 4,226,550,000.00 | -97.24% | Mainly due to the decrease in short-term wealth management purchases in the current period |
| Cash received from the loan | - | 2,670,000,000.00 | -100.00% | Mainly due to zero new short-term loans in the current period |
| Cash paid for dividends, profits, or interest payments | 26,787,416.64 | 46,324,162.51 | -42.17% | Mainly due to the decrease in interest expense on short-term loans in the current period |
| Other cash paid related to financing activities | 134,755,697.06 | 354,129,507.17 | -61.95% | Mainly due to the decrease of cost on house leasing in the current period |
Section II. Information of shareholders
1. Table on the total number of common shareholders, preferred shareholders with restored voting rightsand shares held by the top 10 shareholders
Unit: share (s)
| Total number of common shareholders at the end of the reporting period | 153,843 | Total number of preferred shareholders with restored voting rights at the end of the reporting period (if any) | 0 | |||||
| Particulars about shares held by the top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage(%) | Number of shares held | Number of shares held with sales restrictions | Pledged, marked or frozen | |||
| Status of shares | Number of shares | |||||||
| Lu Zhongfang | Domestic natural person | 41.36% | 2,550,549,260 | 2,550,549,260 | Pledged | 1,157,543,359 | ||
| Li Yongxin | Domestic natural person | 18.35% | 1,131,415,121 | 1,131,070,121 | Pledged | 543,150,000 | ||
| Wang Zhendong | Domestic natural person | 13.83% | 852,885,418 | 639,664,063 | Pledged | 328,193,884 | ||
| Beijing Aerospace Industry Investment Fund (Limited Partnership) | Domestic non-state-owned legal person | 3.24% | 199,611,483 | 0 | ||||
| Beijing Offcn Future Information Consulting | Domestic non-state-owned legal person | 1.30% | 80,000,000 | 0 | ||||
| Center (Limited Partnership) | ||||||
| Zhou Xiayun | Domestic natural person | 1.28% | 78,848,640 | 0 | Pledged | 69,000,000 |
| Zhou Hui | Domestic natural person | 1.17% | 72,277,920 | 0 | Pledged | 26,490,000 |
| Beijing Kerui Technology Innovation Investment Center (Limited Partnership) | Domestic non-state-owned legal person | 1.04% | 64,100,323 | 0 | ||
| Zhou Li | Domestic natural person | 0.78% | 48,185,280 | 0 | ||
| Beijing Guangyin Venture Capital Center (Limited Partnership) | Domestic non-state-owned legal person | 0.71% | 43,750,952 | 0 | ||
| Particulars about shares held by the top 10 shareholders without sales restrictions | ||||||
| Name of shareholders | Number of shares without sales restrictions held | Type of shares | ||||
| Type of shares | Number of shares | |||||
| Wang Zhendong | 213,221,355 | RMB ordinary shares | 213,221,355 | |||
| Beijing Aerospace Industry Investment Fund (Limited Partnership) | 199,611,483 | RMB ordinary shares | 199,611,483 | |||
| Beijing Offcn Future Information Consulting Center (Limited Partnership) | 80,000,000 | RMB ordinary shares | 80,000,000 | |||
| Zhou Xiayun | 78,848,640 | RMB ordinary shares | 78,848,640 | |||
| Zhou Hui | 72,277,920 | RMB ordinary shares | 72,277,920 | |||
| Beijing Kerui Technology Innovation Investment Center (Limited Partnership) | 64,100,323 | RMB ordinary shares | 64,100,323 | |||
| Zhou Li | 48,185,280 | RMB ordinary shares | 48,185,280 | |||
| Beijing Guangyin Venture Capital Center (Limited Partnership) | 43,750,952 | RMB ordinary shares | 43,750,952 | |||
| Yang Shaofeng | 24,062,680 | RMB ordinary shares | 24,062,680 | |||
| Hong Kong Securities Clearing Co., Ltd. | 23,977,849 | RMB ordinary shares | 23,977,849 | |||
| Description of the relationship or concerted action among the above mentioned shareholders | 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) are acting in concert. Zhou Xiayun and Zhou Hui have a father-son relationship. Zhou Xiayun and Zhou Li have a father-daughter relationship. It is unknown whether there is an associated relationship among the above-mentioned other shareholders, nor whether the above-mentioned shareholders belong to the parties acting in concert as stipulated in the Administrative Measures on Information Disclosure of Shareholding Changes in Listed Companies. | |||||
| Description of the top 10 shareholders participating in the | None | |||||
2. Table on the total number of preferred shareholders and shares held by the top 10 preferred shareholders
□ Applicable √ Not Applicable
Section III. Other significant events
√Applicable Not applicable
1.Overview of the Company’s operation in the first quarter of 2022Since the year of 2022, with the ongoing and repeating Covid-19 pandemic, the strictness of prevention andcontrol measures is being upgraded continuously in various areas. The Company is facing a harsher externalenvironment with more tough challenges for its operation compared with the year of 2021. Especially since March,which is the traditional peak period for the Company’s marketing and trainees enrollment in previous years, thepandemic bursts out in many cities of the country and the situation is far more severe than last two years. Stricterprevention and control measures are applied in many cities and hundreds of direct-operated branches of theCompany in various areas suffer from periodic suspension of classes in turns. Meanwhile, the multi-provincialjoint examination of civil servant recruitment in first half of the year, the national-level interview examination ofcivil servant recruitment and the public institution recruitment tests are being deferred one by another. TheCompany’s enrollment and teaching of classes are both affected greatly. The uncertainty of the operatingenvironment has objectively caused a periodical impact on the development of the training business and has acertain impact on the Company's performance.
But even so, the Company strived to take strong measures, actively promoted the 2022 businessimprovement plan, and gained a gradual result in the first quarter. During the reporting period, the Companyimplemented amoeba operation reform plan internally and put efforts in reducing costs and expenses. Althoughthere is still a considerable improving area for optimization, the total operating cost has decreased compared withthe same period of last year, and the effect of lean cost control has emerged. Besides that, in such a harsheroperating environment compared with last year, the Company adjusted its products’ structure, and continuouslyreduced the ratio of high-refund products. The cash received by the Company from selling goods and providingservice is basically the same as that in the same period of last year. The net cash flow of operation turns positiveon a monthly basis. The Company’s business stays steady in the adversity during the adjustment period of productstrategies.
In future, the Company will continue to promote its 2022 business improvement plan and enhance theCompany’s operating efficiency, by maintaining a prudent and steady business strategy, judging and responding tomarket risks in a timely manner, optimizing internal operation by reducing costs and enhancing efficiency,adjusting its products structurally, and speeding up the development of new businesses.
2. The progress of the investigation launched by the China Securities Regulatory Commission into theCompany:
On December 15, 2021, the Company received the Notice of Filing (No. SR Filing 0232021010) from the CSRC.According to the Securities Law of the People's Republic of China, Law of the People’s Republic of China onAdministrative Punishment and other laws and regulations, the Company is suspected of failing to disclose relatedparty transaction information and violating the laws and regulations of information disclosure. The CSRC decided
to file a case against the Company.On January 15, 2022, the Company issued the Announcement on the Progress of the Investigation and Risk Warning(No. 2022-006).On February 15, 2022, the Company issued the Announcement on the Progress of the Investigation and RiskWarning (No. 2022-019).On March 15, 2022, the Company issued the Announcement on the Progress of the Investigation and Risk Warning(No. 2022-022).On April 24, 2022, the Company and the relevant parties received the Prior Notice of Administrative Penalty. TheAnhui Securities Regulatory Bureau of the CSRC decided to give a warning to and impose a fine on the Companyand the relevant parties. Specific information is stated in the announcement (No. 2022-031) disclosed on CNINFO(www.cninfo.com.cn) and other designated media.On April 27, 2022, the Company and the relevant parties received the official Decision of Administrative Penaltyfrom the Anhui Securities Regulatory Bureau, which determines Offcn Edu, its subsidiaries Beijing OffcnEducation Technology Co., Ltd. and Liaoning Zhongcheng Real Estate Development Co.,Ltd. constitute arelated-party relationship with Shaanxi Guancheng Industrial Co., Ltd., Beijing Chuangsheng ConstructionDecoration Engineering Co., Ltd., Shanghai Beiding Network Technology Co., Ltd., Ji'an Jingkai LixiangxueFinancial Information Service Co., Ltd. and Liaoning Hanhui Industrial Co., Ltd.. The total amount involved inrelated transactions was RMB 1232.395 million yuan, including RMB 196.335 million yuan in year 2019 andRMB 1036.060 million yuan in year 2020, which account for 6.65% and 30.19% of the net assets of Offcn Edu inthe latest period respectively. The Company did not disclose the above-mentioned information in accordance withrelevant laws and regulations and there was a material omission of the Company’s information disclosure. Awarning was given to and a fine was imposed on the Company and the relevant persons responsible for thesituation, and corresponding rectification is required. Specific information is stated in the announcement (No.2022-032) disclosed by the Company on CNINFO (www.cninfo.com.cn) and other designated media forinformation disclosure.
| Type of related-party transaction | Related party | Content of related-party transaction | Amount of related-party transactions in year 2019 (RMB) | Amount of related-party transactions in year 2020(RMB) | Amount of related-party transactions in year 2021(RMB) | Total(RMB) |
| Accepting the entrustment of related party for decoration | Beijing Chuangsheng Construction Decoration Engineering Co., Ltd. | Decoration fee | 161,747,000.00 | 242,000,000.00 | 0.00 | 403,747,000.00 |
| Accepting the transfer of assets from | Shaanxi Guancheng Industrial Co., Ltd. | Asset acquisition | 0.00 | 383,060,000.00 | 0.00 | 383,060,000.00 |
| related party | ||||||
| Accepting the transfer of assets from related party | Liaoning Hanhui Industrial Co., Ltd. | Asset acquisition | 0.00 | 200,000,000.00 | 0.00 | 200,000,000.00 |
| Purchasing products and goods from the related party | Ji'an Jingkai Lixiangxue Financial Information Service Co., Ltd. / Shanghai Beiding Network Technology Co., Ltd. | Commission fee | 34,588,038.03 | 210,728,611.86 | 183,144,220.00 | 428,460,869.89 |
| Total | 196,335,038.03 | 1,035,788,611.86 | 183,144,220.00 | 1,415,267,869.89 | ||
Section IV. Quarterly financial statements
1. Financial statements
(1) Consolidated balance sheet
Company: Offcn Education Technology Co., Ltd.
March 31, 2022
Unit: RMB yuan
| Item | Closing balance | Beginning Balance |
| Current assets: | ||
| Monetary funds | 1,129,779,804.27 | 1,970,361,272.64 |
| Settlement reserve | ||
| Lendings | ||
| Transactional financial assets | 118,374,738.18 | 346,726,621.74 |
| Derivative financial assets | ||
| Notes receivable | ||
| Accounts receivable | 39,875,287.62 | 40,374,842.27 |
| Receivables financing | ||
| Prepayments | 1,238,102.00 | 1,438,350.00 |
| Premium receivables | ||
| Accounts receivable reinsurance | ||
| Reserve for reinsurance receivable contracts | ||
| Other receivables | 216,682,824.68 | 219,501,061.83 |
| Inc: Interest receivables | ||
| Dividend receivables | ||
| Buying back the sale of financial assets | ||
| Inventories | ||
| Contract assets | ||
| Assets held-for-sale | ||
| Non-current assets due within one year | ||
| Other current assets | 22,946,171.86 | 36,959,129.80 |
| Total current assets | 1,528,896,928.61 | 2,615,361,278.28 |
| Non-current assets | ||
| Loans and advances | ||
| Debt investments | 10,000,000.00 | 7,058,993.55 |
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 46,850,364.40 | 46,850,364.40 |
| Other equity investments | 130,400,000.00 | 130,400,000.00 |
| Other non-current financial assets | 30,260,000.00 | 30,260,000.00 |
| Investment properties | 639,856,778.18 | 644,936,541.46 |
| Fixed assets | 1,745,084,201.78 | 1,770,372,338.85 |
| Construction in progress | 299,642,804.89 | 294,785,678.31 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 1,291,850,352.33 | 1,342,280,387.08 |
| Intangible assetss | 859,956,886.83 | 866,627,549.85 |
| Development expenditure | ||
| Goodwill | 99,867,720.38 | 99,867,720.38 |
| Long-term prepaid expenses | 357,228,216.77 | 380,191,006.38 |
| Deferred tax assets | 505,810,798.69 | 424,027,271.38 |
| Other non-current assets | 1,654,777,770.41 | 1,652,164,395.78 |
| Total Non-current Assets | 7,671,585,894.66 | 7,689,822,247.42 |
| Total Assets | 9,200,482,823.27 | 10,305,183,525.70 |
| Current liabilities | ||
| Short-term loans | 1,651,209,492.99 | 3,152,945,812.59 |
| Borrowings from central bank | ||
| Borrowings from banks and other financial institutions | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 269,216,168.97 | 282,032,916.52 |
| Deposit received | ||
| Contract liabilities | 4,034,759,242.27 | 3,063,721,290.28 |
| Financial assets sold for repurchase | ||
| Absorbing deposits and interbank deposits | ||
| Acting trading securities | ||
| Acting underwriting securities | ||
| Payroll payable | 357,995,173.17 | 422,886,856.60 |
| Taxes payable | 28,432,694.84 | 12,566,751.84 |
| Other payable | 100,409,049.33 | 129,043,599.22 |
| Inc: Interest payable | ||
| Dividend payables | ||
| Fees and commissions payable | ||
| Reinsurance accounts payable | ||
| Liabilities held-for-sale | ||
| Non-current liabilities due within one year | 739,942,968.01 | 531,876,007.31 |
| Other current liabilities | 121,042,777.27 | 91,925,853.39 |
| Total Current Liabilities | 7,303,007,566.85 | 7,686,999,087.75 |
| Non-current Liabilities: | ||
| Insurance contract reserve | ||
| Long-term loans | ||
| Bonds payable | ||
| Inc: Preferred share | ||
| Perpetual bond | ||
| Lease liabilities | 379,061,479.40 | 635,691,184.87 |
| Long-term payables | ||
| Long-term salary payable | ||
| Estimated liabilities | ||
| Deferred income | ||
| Deferred tax liabilities | 93,458,605.44 | 93,712,172.62 |
| Other non-current liabilities | ||
| Total non-current liabilities | 472,520,084.84 | 729,403,357.49 |
| Total liabilities | 7,775,527,651.69 | 8,416,402,445.24 |
| Owners' equity: | ||
| Share capital | 103,807,623.00 | 103,807,623.00 |
| Other equity instrument | ||
| Inc: Preferred shares | ||
| Perpetual bond | ||
| Capital reserve | 1,225,481,049.50 | 1,225,481,049.50 |
| Less: Treasury stock | ||
| Other comprehensive income | 13,200,000.00 | 13,200,000.00 |
| Special reserves | ||
| Surplus reserves | 45,000,000.00 | 45,000,000.00 |
| General risk preparation | ||
| Undistributed profits | 37,505,486.77 | 501,330,081.70 |
| Total owners' equity attributable to the parent company | 1,424,994,159.27 | 1,888,818,754.20 |
| Minority shareholders' equity | -38,987.69 | -37,673.74 |
| Total owners’ equity | 1,424,955,171.58 | 1,888,781,080.46 |
| Liabilities and owner's equity | 9,200,482,823.27 | 10,305,183,525.70 |
Legal representative: Wang Zhendong Person in charge of accounting: Shi Lei Head of the accounting department: Luo Xue
(2) Consolidated income statement
Unit: RMB yuan
| Item | Amount in the current period | Amount in the previous period |
| I. Total operating income | 1,212,740,311.93 | 2,051,691,383.47 |
| Including: operating income | 1,212,740,311.93 | 2,051,691,383.47 |
| Interest income | ||
| Premium earned | ||
| Fee and commission income | ||
| II. Total operating costs | 1,770,228,930.90 | 1,979,436,277.98 |
| Inc:operating costs | 749,351,241.84 | 824,615,510.04 |
| Interest expenses | ||
| Fee and commission expenses | ||
| Surrender money | ||
| Net reimbursement expenditure | ||
| Withdrawal of net insurance liability reserves | ||
| Policyholder dividend expenses | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 8,798,438.13 | 3,125,104.09 |
| Sales expenses | 396,015,900.26 | 435,647,726.75 |
| Management expenses | 320,087,116.49 | 340,240,393.35 |
| R&D expenses | 226,404,752.90 | 267,150,553.55 |
| Financial expenses | 69,571,481.28 | 108,656,990.19 |
| Inc: Interest expenses | 34,754,941.56 | 52,090,565.27 |
| Interest income | 2,583,174.80 | 6,768,970.11 |
| Add: other income | 8,268,197.61 | 60,454,036.43 |
| Investment income (Loss is listed with “-”) | 2,755,592.22 | 32,350,483.88 |
| Inc: investment income from associates and joint ventures | ||
| Derecognition income of financial assets measured at amortized cost | ||
| Exchange earnings (Loss is listed with “-”) | ||
| Net exposure hedge income (Loss is listed with “-”) | ||
| Fair value change income (Loss is listed with “-”) | 2,674,975.31 | 12,156.21 |
| Credit impairment loss (Loss is listed with “-”) | -1,005,625.25 | -239,123.84 |
| Asset impairment loss (Loss is listed with “-”) | ||
| Asset disposal income (Loss is listed with “-”) | 56,256.12 | |
| III. Operating profit (Loss is listed with “-”) | -544,795,479.08 | 164,888,914.29 |
| Add: non-operating income | ||
| Less: non-operating expenses | 152,921.74 | 69,002.90 |
| IV. Total profit (The total loss is listed with "-") | -544,948,400.82 | 164,819,911.39 |
| Less: income tax expenses | -81,122,491.94 | 24,090,187.92 |
| V. Net profit (Net loss is listed with “-”) | -463,825,908.88 | 140,729,723.47 |
| i. Classified by business continuity | ||
| 1. Net profit from continuing operations (Net loss is listed with “-”) | -463,825,908.88 | 140,729,723.47 |
| 2. Net profit from discontinued operations (Net loss is listed with "-") | ||
| ii. Classification by ownership | ||
| 1. Net profit attributable to the owner of the parent company | -463,824,594.93 | 140,729,639.84 |
| 2. Minority shareholders' profits and losses | -1,313.95 | 83.63 |
| VI. Net other comprehensive income | ||
| Net other comprehensive income attributable to the parent company owner |
| i. Other comprehensive income that cannot be reclassified into profit or loss | ||
| 1. Changes from the remeasurement of the defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to profit or loss under the equity method | ||
| 3. Changes in fair value of other equity instruments | ||
| 4. Changes in fair value of the Company's own credit risk | ||
| 5. Other | ||
| ii. Other comprehensive income that will be reclassified into profit or loss | ||
| 1. Other comprehensive income of convertible profit and loss under the equity method | ||
| 2. Changes in fair value of other debt investments | ||
| 3. Financial assets reclassified into other comprehensive income | ||
| 4. Credit impairment provisions of other debt investment | ||
| 5. Cash flow hedge reserve | ||
| 6. Foreign currency financial statement translation difference | ||
| 7. Others | ||
| Net other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | -463,825,908.88 | 140,729,723.47 |
| Total comprehensive income attributable to owners of the parent company | -463,824,594.93 | 140,729,639.84 |
| Total comprehensive income attributable to minority shareholders | -1,313.95 | 83.63 |
| VIII. Earnings per share: | ||
| i. Basic earnings per share | -0.08 | 0.02 |
| ii. Diluted earnings per share | -0.08 | 0.02 |
If a business combination under the same control occurs in this period, the net profit realized by the combined party before thecombination 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 the accounting department: Luo Xue
(3) Consolidated cash flow statement
Unit: RMB yuan
| Items | Amount in the current period | Amount in the previous period |
| I. Cash flow from operating activities: | ||
| Cash received from the sale of goods and services | 2,249,268,010.73 | 2,257,705,337.11 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from central bank | ||
| Net increase in funds borrowed from other financial institutions | ||
| Cash received from the original insurance contract premium | ||
| Net cash received from reinsurance business | ||
| Net increase in policyholders’ deposits and investment funds | ||
| Cash charged with interest, handling fees and commissions | ||
| Net increase in funds borrowed in | ||
| Net increase in repurchase funds | ||
| Net cash received from agent buying and selling of securities | ||
| Tax refund | ||
| Other cash received related to other business activities | 22,063,195.70 | 8,365,632.60 |
| Subtotal of cash inflow from operating activities | 2,271,331,206.43 | 2,266,070,969.71 |
| Cash paid for the purchase of goods and services | 210,528,840.27 | 389,263,578.68 |
| 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 | 1,224,818,887.78 | 1,788,537,241.10 |
| Various taxes paid | 25,331,722.29 | 81,728,859.56 |
| Other cash paid for business activities | 211,762,694.36 | 253,266,164.04 |
| Subtotal of cash outflows from operating activities | 1,672,442,144.70 | 2,512,795,843.38 |
| Net cash flow from operating activities | 598,889,061.73 | -246,724,873.67 |
| II. Cash flows from investing activities | ||
| Cash received from investment recovery | 344,776,858.87 | 4,234,310,000.00 |
| Cash received from investment income | 2,764,585.77 | 11,192,589.09 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 56,256.12 | |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash received related to investment activities | ||
| Subtotal of cash inflows from investment activities | 347,541,444.64 | 4,245,558,845.21 |
| Cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets | 8,768,861.04 | 2,774,248,578.57 |
| Cash paid for investment | 116,700,000.00 | 4,226,550,000.00 |
| Net increase in pledge loans | ||
| Net cash paid for aquiring subsidiaries and other business units | ||
| Other cash paid related to investment activities | ||
| Subtotal of cash outflows from investment activities | 125,468,861.04 | 7,000,798,578.57 |
| Net cash flows from investment activities | 222,072,583.60 | -2,755,239,733.36 |
| III. Cash flow from financing activities: | ||
| Cash received from investment absorption | ||
| Inc: Cash received from subsidiaries in absorbing minority shareholders' investment | ||
| Cash received from the loan | 2,670,000,000.00 | |
| Other cash received related to financing activities | ||
| Subtotal of cash inflows from financing activities | 2,670,000,000.00 | |
| Cash paid for debt repayment | 1,500,000,000.00 | 2,090,000,000.00 |
| Cash paid for dividends, profits or interest payments | 26,787,416.64 | 46,324,162.51 |
| Inc: Dividends and profits paid by subsidiaries to minority shareholders | ||
| Other cash paid related to financing activities | 134,755,697.06 | 354,129,507.17 |
| Subtotal of cash outflows from financing activities | 1,661,543,113.70 | 2,490,453,669.68 |
| Net cash flow from financing activities | -1,661,543,113.70 | 179,546,330.32 |
| IV. Effect of the changes of the exchange rate on cash and the equivalents | ||
| V. Net increase in cash and cash equivalents | -840,581,468.37 | -2,822,418,276.71 |
| Add: balance of cash and cash equivalents at the beginning of the period | 1,969,806,009.56 | 5,950,395,089.12 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,129,224,541.19 | 3,127,976,812.41 |
2. Auditor’s report
Whether this First Quarter 2022 Report has been audited
□ Yes √ No
The Company’s First Quarter 2022 Report has not been audited.
Board of Directors of Offcn Educaton Technology Co. Ltd.
April 28, 2022