Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2013 | |
Document and Entity Information | ' |
Document Type | '20-F |
Amendment Flag | 'false |
Document Period End Date | 31-Dec-13 |
Entity Registrant Name | 'ChinaEdu CORP |
Entity Central Index Key | '0001411419 |
Current Fiscal Year End Date | '--12-31 |
Document Fiscal Period Focus | 'FY |
Document Fiscal Year Focus | '2013 |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 30,883,842 |
Entity Current Reporting Status | 'Yes |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
Current assets: | ' | ' | ' |
Cash and cash equivalents | $71,336 | 431,844 | 385,922 |
Term deposits | 11,081 | 67,083 | 92,028 |
Short-term investments | 1,177 | 7,127 | 23,575 |
Accounts receivable | 4,388 | 26,561 | 34,917 |
Prepaid expenses and other current assets | 3,731 | 22,584 | 23,455 |
Amounts due from related parties-current | 56,820 | 343,970 | 260,184 |
Deferred tax assets-current | 2,109 | 12,769 | 9,571 |
Total current assets | 150,642 | 911,938 | 829,652 |
Term deposits-non-current | 11,563 | 70,000 | ' |
Property and equipment, net | 38,416 | 232,558 | 238,563 |
Amounts due from related party-non-current | ' | ' | 41,979 |
Land use rights | 4,203 | 25,441 | 26,049 |
Deposits paid for acquisition of property and equipment | ' | ' | 3,873 |
Deferred tax assets - non-current | 592 | 3,586 | 2,085 |
Long-term investments | 167 | 1,013 | 801 |
Rental deposits | 258 | 1,563 | 1,497 |
Acquired intangible assets, net | 8,493 | 51,416 | 54,499 |
Goodwill | 7,145 | 43,255 | 43,255 |
Total assets | 221,479 | 1,340,770 | 1,242,253 |
Current liabilities: | ' | ' | ' |
Short-term loan | 670 | 4,056 | ' |
Accounts payable (including accounts payable of the consolidated VIE without recourse to the Group of RMB2,007 and RMB1,844 as of December 31, 2012 and 2013, respectively) | 449 | 2,716 | 2,401 |
Deferred revenues - current (including deferred revenue of the consolidated VIE without recourse to the Group of RMB23,518 and RMB13,391 as of December 31, 2012 and 2013, respectively) | 22,917 | 138,734 | 134,175 |
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without recourse to the Group of RMB22,113 and RMB19,176 as of December 31, 2012 and 2013, respectively) | 22,713 | 137,497 | 113,558 |
Amounts due to related parties (including amounts due to related parties of the consolidated VIE without recourse to the Group of RMB1,926 and RMB1,853 as of December 31, 2012 and 2013, respectively) | 8,606 | 52,099 | 35,507 |
Income taxes payable (including income taxes payable of the consolidated VIE without recourse to the Group of RMB10,004 and RMB7,747 as of December 31, 2012 and 2013, respectively) | 10,434 | 63,165 | 49,294 |
Other taxes payable (including other taxes payable of the consolidated VIE without recourse to the Group of RMB3,737 and RMB4,442 as of December 31, 2012 and 2013, respectively) | 5,989 | 36,254 | 27,294 |
Total current liabilities | 71,778 | 434,521 | 362,229 |
Long-term loan | 35,331 | 213,883 | ' |
Deferred revenues - non-current (including deferred revenue of the consolidated VIE without recourse to the Group of RMB29 and RMB29 as of December 31, 2012 and 2013, respectively) | 1,680 | 10,173 | 10,654 |
Deferred tax liabilities-non-current (including deferred taxes liabilities of the consolidated VIE without recourse to the Group of RMB978 and RMB1,616 as of December 31, 2012 and 2013, respectively) | 1,434 | 8,679 | 13,473 |
Unrecognized tax benefit (including unrecognized tax benefit of the consolidated VIE without recourse to the Group of RMB3,555 and RMB4,261 as of December 31, 2012 and 2013, respectively) | 1,796 | 10,873 | 8,795 |
Total liabilities | 112,019 | 678,129 | 395,151 |
Commitments (Note 21) | ' | ' | ' |
ChinaEdu Corporation shareholders' equity: | ' | ' | ' |
Ordinary shares (RMB0.08 (US$0.01) par value; 100,000,000 shares authorized; 53,428,219 and 47,676,331 shares issued and outstanding, respectively as of December 31, 2012; 30,883,842 and 25,673,185 shares issued and outstanding, respectively as of December 31, 2013) | 448 | 2,715 | 4,070 |
Additional paid-in capital | 69,763 | 422,322 | 682,239 |
Treasury stock | -551 | -3,336 | ' |
Statutory reserves | 8,541 | 51,702 | 40,976 |
Accumulated deficits | -1,062 | -6,428 | -46,200 |
Accumulated other comprehensive loss | -5,084 | -30,773 | -30,894 |
Total ChinaEdu Corporation shareholders' equity | 72,055 | 436,202 | 650,191 |
Noncontrolling interests | 37,405 | 226,439 | 196,911 |
Total equity | 109,460 | 662,641 | 847,102 |
Total liabilities and equity | $221,479 | 1,340,770 | 1,242,253 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical)(Consolidated VIE CNY) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts payable | 1,844 | 2,007 |
Deferred revenues - current | 13,391 | 23,518 |
Accrued expenses and other current liabilities | 19,176 | 22,113 |
Amounts due to related parties | 1,853 | 1,926 |
Income taxes payable | 7,747 | 10,004 |
Other taxes payable | 3,737 | 4,442 |
Deferred revenue - non-current | 29 | 29 |
Deferred tax liabilities-non-current | 1,616 | 978 |
Unrecognized tax benefit | 4,261 | 3,555 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS | 12 Months Ended | |||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Cost of revenue | Cost of revenue | Cost of revenue | Cost of revenue | Selling and marketing | Selling and marketing | Selling and marketing | Selling and marketing | Research and development | Research and development | Research and development | Research and development | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | |||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue | $92,380 | 559,240 | 504,052 | 453,116 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business tax | 1,867 | 11,300 | 15,730 | 17,257 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | 90,513 | 547,940 | 488,322 | 435,859 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of revenue | 34,855 | 210,999 | 202,109 | 185,604 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross profit | 55,658 | 336,941 | 286,213 | 250,255 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative | 18,717 | 113,305 | 100,204 | 93,950 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling and marketing | 7,641 | 46,257 | 48,407 | 52,777 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and development | 8,251 | 49,948 | 40,512 | 40,589 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets impairment | ' | ' | 5,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total operating expenses | 34,609 | 209,510 | 195,024 | 187,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from operations | 21,049 | 127,431 | 91,189 | 62,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income | 2,113 | 12,793 | 13,253 | 8,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | -2,122 | -12,849 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on disposal of subsidiaries | ' | ' | 2,197 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment income | 82 | 497 | 1,460 | 832 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income | 322 | 1,951 | 1,376 | 1,003 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign exchange loss | -451 | -2,728 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income tax and equity method investments | 20,993 | 127,095 | 109,475 | 73,617 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax provisions (benefits): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
- Current | 6,159 | 37,282 | 19,939 | 23,078 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
- Deferred | -1,569 | -9,493 | 6,488 | -6,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total income tax provisions | 4,590 | 27,789 | 26,427 | 17,044 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income before income from equity method investments | 16,403 | 99,306 | 83,048 | 56,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from equity method investments, net of taxes | 115 | 692 | 261 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 16,518 | 99,998 | 83,309 | 56,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: net income attributable to the noncontrolling interests | 8,178 | 49,500 | 45,338 | 39,752 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to ChinaEdu Corporation shareholders | 8,340 | 50,498 | 37,971 | 16,821 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income per share attributable to ChinaEdu Corporation shareholders - basic | $0.30 | 1.79 | 0.8 | 0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income per share attributable to ChinaEdu Corporation shareholders - diluted | $0.26 | 1.58 | 0.75 | 0.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares used in calculating basic net income per share attributable to ChinaEdu Corporation shareholders | 28,250,473 | 28,250,473 | 47,523,375 | 47,453,930 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average shares used in calculating diluted net income per share attributable to ChinaEdu Corporation shareholders | 31,877,916 | 31,877,916 | 50,487,233 | 50,669,229 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expenses | $1,633 | 9,887 | 8,258 | 6,483 | $124 | 748 | 488 | 522 | $330 | 2,000 | 3,103 | 2,755 | $59 | 359 | 491 | 297 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $16,518 | 99,998 | 83,309 | 56,573 |
Other comprehensive income(losses), net of taxes of nil: | ' | ' | ' | ' |
Foreign currency translation adjustments | 1,008 | 6,103 | -87 | -751 |
Change in fair value of available-for-sale investments | -156 | -945 | 1,247 | 187 |
Comprehensive income | 17,370 | 105,156 | 84,469 | 56,009 |
Less: comprehensive income attributable to the noncontrollng interests | 9,009 | 54,537 | 47,836 | 46,020 |
Comprehensive income attributable to ChinaEdu Corporation shareholders | $8,361 | 50,619 | 36,633 | 9,989 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Other comprehensive income (losses), taxes | $0 | 0 | 0 | 0 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | Total | Total | Ordinary shares | Ordinary shares | Additional paid-in capital | Additional paid-in capital | Treasury Stock | Treasury Stock | Statutory reserve | Statutory reserve | Accumulated deficits | Accumulated deficits | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Total ChinaEdu Corporation shareholders' equity | Total ChinaEdu Corporation shareholders' equity | Noncontrolling interests | Noncontrolling interests |
In Thousands, except Share data | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY | USD ($) | CNY |
Beginning Balance at Dec. 31, 2010 | ' | 729,464 | ' | 4,071 | ' | 674,648 | ' | ' | ' | 29,592 | ' | -89,608 | ' | -22,724 | ' | 595,979 | ' | 133,485 |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | ' | ' | 47,689,306 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) | ' | -8,243 | ' | -38 | ' | -8,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -8,243 | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) (in shares) | ' | ' | ' | -590,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options (note 14) | ' | 598 | ' | 8 | ' | 590 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 598 | ' | ' |
Exercise of share options (note 14) (in shares) | ' | ' | ' | 116,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 6,483 | ' | ' | ' | 6,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,483 | ' | ' |
Provision for statutory reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,043 | ' | -7,043 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | -751 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -7,019 | ' | -7,019 | ' | 6,268 |
Change in fair value of available-for-sale investments (note 5) | ' | 187 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187 | ' | 187 | ' | ' |
Net income | ' | 56,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,821 | ' | ' | ' | 16,821 | ' | 39,752 |
Capital contribution by a noncontrolling shareholder | ' | 2,960 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,960 |
Dividend to noncontrolling shareholders of subsidiaries | ' | -15,212 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -15,212 |
Ending Balance at Dec. 31, 2011 | ' | 772,059 | ' | 4,041 | ' | 673,516 | ' | ' | ' | 36,635 | ' | -79,830 | ' | -29,556 | ' | 604,806 | ' | 167,253 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | ' | ' | 47,215,888 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) | ' | -4,574 | ' | -24 | ' | -4,550 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,574 | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) (in shares) | ' | ' | ' | -376,761 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options (note 14) | ' | 5,068 | ' | 53 | ' | 5,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,068 | ' | ' |
Exercise of share options (note 14) (in shares) | ' | ' | ' | 837,204 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 8,258 | ' | ' | ' | 8,258 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,258 | ' | ' |
Provision for statutory reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,341 | ' | -4,341 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | ' | -87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2,585 | ' | -2,585 | ' | 2,498 |
Change in fair value of available-for-sale investments (note 5) | ' | 1,247 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,247 | ' | 1,247 | ' | ' |
Net income | ' | 83,309 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,971 | ' | ' | ' | 37,971 | ' | 45,338 |
Disposal of the subsidiaries | ' | -857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -857 |
Dividend to noncontrolling shareholders of subsidiaries | ' | -17,321 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,321 |
Ending Balance at Dec. 31, 2012 | ' | 847,102 | ' | 4,070 | ' | 682,239 | ' | ' | ' | 40,976 | ' | -46,200 | ' | -30,894 | ' | 650,191 | ' | 196,911 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | 47,676,331 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) | ' | -285,603 | ' | -1,469 | ' | -280,798 | ' | -3,336 | ' | ' | ' | ' | ' | ' | ' | -285,603 | ' | ' |
Repurchase and cancellation of ordinary shares (note 18) (in shares) | ' | ' | ' | -23,876,175 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options (note 14) | ' | 11,108 | ' | 114 | ' | 10,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,108 | ' | ' |
Exercise of share options (note 14) (in shares) | 1,873,029 | ' | ' | 1,873,029 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | ' | 9,887 | ' | ' | ' | 9,887 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,887 | ' | ' |
Provision for statutory reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,726 | ' | -10,726 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 1,008 | 6,103 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,066 | ' | 1,066 | ' | 5,037 |
Change in fair value of available-for-sale investments (note 5) | -156 | -945 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -945 | ' | -945 | ' | ' |
Net income | 16,518 | 99,998 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,498 | ' | ' | ' | 50,498 | ' | 49,500 |
Dividend to noncontrolling shareholders of subsidiaries | ' | -25,009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -25,009 |
Ending Balance at Dec. 31, 2013 | $109,460 | 662,641 | $448 | 2,715 | $69,763 | 422,322 | ($551) | -3,336 | $8,541 | 51,702 | ($1,062) | -6,428 | ($5,084) | -30,773 | $72,055 | 436,202 | $37,405 | 226,439 |
Ending Balance (in shares) at Dec. 31, 2013 | ' | ' | 25,673,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | $16,518 | 99,998 | 83,309 | 56,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | ' |
Share-based compensation | 1,633 | 9,887 | 8,258 | 6,483 |
Depreciation and amortization of property and equipment | 4,229 | 25,599 | 25,377 | 23,900 |
Amortization of land use rights | 100 | 608 | 608 | 608 |
Amortization of acquired intangible assets | 509 | 3,083 | 3,903 | 4,171 |
Intangible assets impairment | ' | ' | 5,901 | ' |
Investment loss (income) | -82 | -497 | -1,460 | 201 |
Amortization of debt discount | 715 | 4,329 | ' | ' |
Gain on disposal of subsidiaries | ' | ' | -2,197 | ' |
Loss (gain) from equity method investments | -35 | -212 | 219 | ' |
Provision for account receivables | 43 | 261 | 340 | 0 |
Loss from disposal of property and equipment | 10 | 59 | 1,611 | 234 |
Foreign exchange loss | 451 | 2,728 | ' | ' |
Changes in assets and liabilities: | ' | ' | ' | ' |
Accounts receivable | 1,337 | 8,095 | -3,779 | 3,613 |
Inventories | ' | ' | ' | 358 |
Prepaid expenses and other current assets | 135 | 814 | 532 | 7,458 |
Amounts due from related parties | -6,913 | -41,850 | -64,325 | 8,646 |
Rental deposits | -11 | -66 | 716 | -1,277 |
Accounts payable | 33 | 197 | 162 | -2,013 |
Deferred revenues | 684 | 4,143 | 7,438 | 21,858 |
Accrued expenses and other current liabilities | 3,936 | 23,830 | 20,851 | 8,700 |
Amounts due to related parties | 1,487 | 9,000 | 22,468 | -19,717 |
Income taxes payable | 2,291 | 13,871 | -2,154 | 6,836 |
Other taxes payable | 1,480 | 8,960 | 5,324 | 1,462 |
Deferred income taxes | -1,568 | -9,493 | 6,488 | -6,034 |
Unrecognized tax benefit | 343 | 2,078 | 2,706 | 2,398 |
Net cash provided by operating activities | 27,325 | 165,422 | 122,296 | 124,458 |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of property and equipment | -2,621 | -15,868 | -12,407 | -20,788 |
Proceeds from disposal of subsidiaries, net of cash disposed | ' | ' | 5,026 | ' |
Deposits paid for acquisition of property and equipment | ' | ' | ' | -18,863 |
Purchase of term deposits | -98,758 | -597,850 | -526,347 | -341,963 |
Maturity of term deposits | 91,305 | 552,736 | 532,482 | 364,300 |
Purchase of exclusive partnership with universities | ' | ' | -980 | -1,960 |
Purchase of short-term investments | ' | ' | -12,571 | -19,556 |
Purchase of long-term investments | ' | ' | -1,020 | ' |
Proceeds from disposal of property and equipment | 34 | 206 | 89 | 275 |
Proceeds from sale of short-term investments | 1,294 | 7,832 | 26,187 | 16,306 |
Proceeds from disposal of exclusive partnership with universities | ' | ' | 315 | ' |
Proceeds from disposal of equity method investment | 1,322 | 8,000 | ' | ' |
Net cash (used in) provided by investing activities | -7,424 | -44,944 | 10,774 | -22,249 |
Cash flows from financing activities: | ' | ' | ' | ' |
Payment of deferred consideration for purchase of property and equipment | ' | ' | ' | -1,479 |
Cash dividends paid to noncontrolling shareholders | -2,863 | -17,333 | -21,441 | -13,510 |
Capital contribution by noncontrolling shareholders | ' | ' | ' | 2,960 |
Repurchase and cancellation of ordinary shares | -47,178 | -285,603 | -4,574 | -7,437 |
Proceeds from exercise of share options | 1,835 | 11,108 | 5,068 | 598 |
Financing costs related to loans | -1,414 | -8,557 | ' | ' |
Proceeds from borrowings of short-term debt | 11,301 | 68,410 | ' | ' |
Proceeds from borrowings of long-term debt | 62,815 | 380,261 | ' | ' |
Repayment of borrowings of short-term debt | -10,455 | -63,290 | ' | ' |
Repayment of borrowings of long-term debt | -26,389 | -159,750 | ' | ' |
Prepayment for shares repurchases | ' | ' | ' | -168 |
Net cash used in financing activities | -12,348 | -74,754 | -20,947 | -19,036 |
Effect of exchange rate changes | 33 | 198 | 53 | 80 |
Net increase in cash and cash equivalents | 7,586 | 45,922 | 112,176 | 83,253 |
Cash and cash equivalents, beginning of year | 63,750 | 385,922 | 273,746 | 190,493 |
Cash and cash equivalents, end of year | 71,336 | 431,844 | 385,922 | 273,746 |
Supplemental disclosure of cash flow information | ' | ' | ' | ' |
Income taxes paid | 3,524 | 21,333 | 19,387 | 13,844 |
Interest paid | $1,381 | 8,360 | ' | ' |
ORGANIZATION_AND_PRINCIPAL_ACT
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ' | |||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ' | |||||||
1. ORGANIZATION AND PRINCIPAL ACTIVITIES | ||||||||
ChinaEdu Corporation (the “Company”) was incorporated in the Cayman Islands on September 6, 1999. The Company, its subsidiaries, and its variable interest entity (“VIE”) and VIE’s subsidiaries are collectively referred to hereinafter as the “Group”. The Group principally operates online degree programs, which provide services to universities through joint venture contracts entered into by the Company’s subsidiaries, online tutoring programs, private primary and secondary schools and international and elite curriculum programs in the People’s Republic of China (the “PRC”). | ||||||||
A summary of the Company’s subsidiaries and its VIE and its VIE’s subsidiaries as of December 31, 2013 was as follows: | ||||||||
Date of incorporation | Percentage of | |||||||
Name | or acquisition | legal ownership | Place of incorporation | |||||
Subsidiaries of the Company: | ||||||||
CMR Web-learning Co., Ltd. (“CMR Web”) | July 29, 1999 | 70 | % | PRC | ||||
Hongcheng Technology Development Co., Ltd. (“Hongcheng Technology”) | July 31, 2000 | 100 | % | PRC | ||||
Zhong Nongda Networks Development Co., Ltd. (“Zhongnongda Networks”) | October 30, 2001 | 55 | % | PRC | ||||
Beijing Hongcheng Liye Technology Co., Ltd. (“Hongcheng Liye”) | April 15, 2003 | 100 | % | PRC | ||||
Dalian Dongcai Technology Co., Ltd. (“Dongcai”) | June 4, 2003 | 70 | % | PRC | ||||
Beijing WITT Education Consultant Management Co., Ltd. (“WITT Education”) | July 4, 2003 | 100 | % | PRC | ||||
BJ-WITT EDU MAN. LTD. (“BJ-WITT”) | July 4, 2003 | 100 | % | BVI | ||||
Chongqing Chongda Yuanxing Co., Ltd. (“Chongda”) | December 24, 2003 | 51 | % | PRC | ||||
Beijing BCIT Science and Education Management Consulting Limited (“Beijing BCIT”) | January 13, 2005 | 100 | % | PRC | ||||
Beijing Gotop Education Co., Ltd. (“Gotop Hongcheng”) | December 26, 2005 | 100 | % | PRC | ||||
Beijing BCIT Science and Education Management Consulting Limited (“BJ-BCIT”) | February 10, 2006 | 100 | % | BVI | ||||
Beijing Distance Education Technology Co., Ltd. (“Yuancheng Education”) | March 31, 2006 | 100 | % | PRC | ||||
Tianjin Gaotuo Hongcheng Education Technology Co., Ltd. (“Tianjin Gaotuo Hongcheng”) | June 26, 2006 | 100 | % | PRC | ||||
Beijing Beiyuda Education Technology Co., Ltd. (“Beiyuda”) | September 26, 2006 | 51 | % | PRC | ||||
Beijing Mingdaoyuan Technology Co., Ltd. (“Beijing Mingdao”) | March 27, 2007 | 51 | % | PRC | ||||
Shanghai Shangcai Education Technology Co., Ltd. (“Shanghai Shangcai”) | April 18, 2008 | 51 | % | PRC | ||||
Dongcai Online Training Center (“Dongcai Online”) | July 10, 2008 | 70 | % | PRC | ||||
Beijing Zhonglin Technology Co., Ltd. (“Zhonglin”) | November 3, 2008 | 51 | % | PRC | ||||
Date of incorporation | Percentage of | |||||||
Name | or acquisition | legal ownership | Place of incorporation | |||||
Fuzhou Haojiaoshi Distance Education Service Co., Ltd. (“Fuzhou Good Teacher”) | December 7, 2009 | 51 | % | PRC | ||||
Hongyuanboxue Technology Co., Ltd (“Hongyuanboxue”) | August 24, 2010 | 100 | % | PRC | ||||
Beijing Hongcheng Xueyuan Technology Co., Ltd. (“Hongcheng Xueyuan”) | October 31, 2010 | 100 | % | PRC | ||||
Nanning Hongcheng Xueyuan Technology Development Co., Ltd (“Nanning Hongcheng Xueyuan ”) | October 31, 2010 | 51 | % | PRC | ||||
Hangzhou Hongcheng Education Training Service Co., Ltd (“Hangzhou Hongcheng Xueyuan”) | October 31, 2010 | 60 | % | PRC | ||||
Beijing Haidian District New Door Trainning School (“Haidian Trainning School ”) | April 7, 2011 | 55 | % | PRC | ||||
Zhejiang Hongcheng Education Technology Co., Ltd. (“Zhejiang Hongcheng”) | June 30, 2011 | 51 | % | PRC | ||||
HongKong Hongcheng Online Education Technology Co., Ltd (“Hongcheng Online”) | April 12, 2013 | 100 | % | HongKong | ||||
Chongqing Fahong Technology Development Co., Ltd. (“Chongqing Fahong ”) | Feburary 7, 2013 | 100 | % | PRC | ||||
VIE of the Company: | ||||||||
Beijing Hongcheng Education Technology Co., Ltd. (“Hongcheng Education”) | March 7, 2005 | N/A | PRC | |||||
Subsidiaries of VIE: | ||||||||
Beijing Gotop Electronic Science Co., Ltd. (“Gotop Electronic”) (1) | November 29, 1995 | N/A | PRC | |||||
Xiandai Xingye Network Technology Co., Ltd. (“Xiandai Technology”) (1) | November 7, 2000 | N/A | PRC | |||||
Pingdingshan Wellent Bilingual School (“Pingdingshan”) (1) | September 3, 2002 | N/A | PRC | |||||
Anqing Foreign Language Middle School (“Anqing Foreign Language”) (1) | August 2, 2004 | N/A | PRC | |||||
Jingzhou Tianchang Investment Co., Ltd. (“Tianchang”) (2) | September 6, 2005 | N/A | PRC | |||||
Jingzhou Middle School South Campus (“South Campus”) (3) | December 28, 2005 | N/A | PRC | |||||
Beijing Hongcheng YoYo Technology Co., Ltd. (“Hongcheng YoYo”) (1) | November 3, 2009 | N/A | PRC | |||||
Anqing Daguan Hongcheng Anwai Training Centre (“Anqing Daguan”) (1) | April 15, 2010 | N/A | PRC | |||||
Pingdingshan Hongcheng Education Training Centre (“Pingdingshan Training Centre”) (1) | August 11, 2010 | N/A | PRC | |||||
Beijing Xicheng District Hongcheng Training School (“Xicheng Training School”) (1) | January 6, 2011 | N/A | PRC | |||||
(1) Wholly owned subsidiary of Hongcheng Education (VIE of the Company) | ||||||||
(2) 72.5% of its equity is owned by Hongcheng Education (VIE of the Company) | ||||||||
(3) 54% of its equity is owned by Hongcheng Education (VIE of the Company) | ||||||||
On June 16, 2012, the Group sold one of its subsidiaries, Guangzhou Hongcheng Huixing Education Technology Co., Ltd. (“Guangzhou Hongcheng”) to Guangzhou Hongcheng’s noncontrolling shareholder for cash of RMB4,000. The carriyng amounts of net assets disposed of were RMB3,123. | ||||||||
On September 28, 2012, the Group sold one of its subsidiaries, Guangxi Hongcheng Times Technology Development Co., Ltd. (“Guangxi Hongcheng”), to Guangxi Hongcheng’s noncontrolling shareholder for cash of RMB1,020. The carrying amounts of net assets disposed of were RMB126. | ||||||||
On September 25, 2012, the Group sold one of its subsidiaries, Beijing Xuezhi Times Education Science Co., Ltd. (“Beijing Xuezhi”) to a third party for cash of RMB6. The carrying amounts of net liabilities disposed of were RMB420. | ||||||||
These subsidiaries disposed of in 2012 had no material business operations since their respective inceptions and accordingly were not separately reported as discontinued operation. Total gain resulted from these disposals was RMB2,197. | ||||||||
The VIE arrangements | ||||||||
PRC regulations currently limit foreign ownership of entities providing internet content and engaging in primary and junior high school education. To comply with PRC laws and regulations, the Group provides online tutoring programs and primary and secondary schools in the PRC through its VIE and its VIE’s subsidiaries. | ||||||||
The Group established Hongcheng Education, the VIE, through a series of contractual arrangements with designated equity owners who are PRC citizens and legally own the VIE. To provide the Group the power to control and the ability to receive substantially all of the expected residual returns of the VIE and its subsidiaries, the Group entered into a series of contractual arrangements described below with the VIE, and its nominee shareholders in 2005. | ||||||||
· Agreements that transfer economic benefits to Hongcheng Technology | ||||||||
Exclusive Technical Consulting and Services Agreement | ||||||||
Pursuant to the exclusive technology consulting and service agreements between Hongcheng Technology and the VIE, the Group has the exclusive right to provide to the VIE technology consulting and services related to courseware and product development services, website design services, maintenance and security services, employee training services and any other services that may be agreed upon by the parties. As a consideration for these services, the Group charges VIE a service fee, which represents substantially all of its net income. The service fee amounts are determined at Hongcheng Technology’s sole discretion. The terms of the exclusive technical consulting and services agreement are ten years unless Hongcheng Technology sends a notice of termination in writing prior to the expiration, the agreement shall automatically be renewed for an additional term of ten years. | ||||||||
Equity Pledge Agreements | ||||||||
Pursuant to the Equity Pledge Agreements between Hongcheng Technology and nominee shareholders of VIE, the nominee shareholders of VIE pledged all of their equity interests in VIE to Hongcheng Technology to guarantee VIE’s performance of its obligations under the Exclusive Technical Consulting and Services agreement. If the VIE breaches its contractual obligations under that agreement, Hongcheng Technology, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The nominee shareholders of VIE agree that, without prior written consent of Hongcheng Technology, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests that would prejudice Hongcheng Technology’s interest. | ||||||||
Loan Agreements | ||||||||
The Group provided an interest-free loan of RMB54,200 to the nominee shareholders to fund the registered capital requirements of VIE. Proceeds from the loans are to be used solely for the investments in VIE. The loans can only be repaid by a transfer of the equity ownership interest in VIE to the Group. The term of the loan is 20 years and may be extended with the consent of the Company and the nominee shareholders. To the extent permitted under PRC Law, the loan may be repaid only by the transfer by the nominee shareholders of their equity interests in the VIE to the Company or its designee. | ||||||||
· Agreements that provide Hongcheng Technology effective control over VIE | ||||||||
Powers of Attorney | ||||||||
Pursuant to the power of attorney, the nominee shareholders of VIE each executed an irrevocable power of attorney assigning Hongcheng Technology or any person designated by Hongcheng Technology as their attorney-in-fact and take all actions on their behalf on all matters of the VIE requiring shareholders’ approval under PRC laws and regulations and the Article of Association of VIE. | ||||||||
The Articles of Association of VIE states that the major rights of the shareholders include the power to review and approve the annual budget, operating strategy and investment plan, elect the members of board of directors and approve their compensation plan. Therefore, through the irrevocable power of attorney arrangement, Hongcheng Technology has the ability to exercise effective control over VIE through shareholder votes and, through such votes, to also control the composition of the board of directors and thus appoint the senior management of VIE. The power of attorneys will remain effective for as long as the nominee shareholders are shareholders of VIE. | ||||||||
· Agreements that provide Hongcheng Technology effective control over VIE | ||||||||
Shareholder Voting Rights Entrustment Agreements | ||||||||
In connection with the loan agreements described above, Hongcheng Technology entered into shareholder voting rights entrustment agreements with the nominee shareholders. Pursuant to these agreements, the nominee shareholders irrevocably entrusted Hongcheng Technology with the right to act as their proxy and vote for all of their shares in VIE. The agreement will remain effective as long as the nominee shareholders remain shareholders of Hongcheng Education. | ||||||||
Call Option Agreements | ||||||||
Pursuant to the Call Option Agreements, Hongcheng Technology has the exclusive and irrevocable right to purchase or designate another party to purchase from the nominee shareholders the equity interests in VIE at the lowest price permitted by the PRC law when and to the extent that applicable PRC law permits Hongcheng Technology to own all or part of such equity interest in VIE. The agreement shall terminate after all the equity subject to the Call Option Agreement has been transferred to Hongcheng Technology and/or any other entity or individual designated by Hongcheng Technology in accordance with the provisions contained herein. Through the exclusive Call Option Agreements, each of VIE’s nominee shareholders irrevocably granted Hongcheng Technology an exclusive right to acquire, at any time, for its own account or through one or more PRC individuals or entities to acquire the nominee shareholder’s equity interests in VIE, which constitutes a substantive kick-out right that is exercisable and enforceable under current PRC laws and regulations. This kick-out right reinforces Hongcheng Technology’s ability to direct the activities that most significantly impact VIE’s economic performance. | ||||||||
As a result of these contractual arrangements, Hongcheng Technology has (1) the power to direct the activities of VIE that most significantly impact VIE’s economic performance and (2) the right to receive economic benefits from VIE, and accordingly, the Group has consolidated the financial results of VIE and its subsidiaries in the consolidated financial statements for all the periods presented. | ||||||||
In concluding that the Hongcheng Technology is the primary beneficiary of VIE, the Group believes that the powers of attorney and the Shareholder Voting Rights Entrustment Agreements are valid, binding and enforceable under existing PRC laws and regulations and enable the Company, through Hongcheng Technology, to vote on all matters requiring shareholder approval for VIE. In addition, the Group believes that the exclusive call option agreements provides the Company, through Hongcheng Technology, with a substantive kick-out right. More specifically, the terms of the exclusive call option agreements are exercisable and enforceable under current PRC laws and regulations, and the minimum amount of consideration permitted by the applicable PRC laws to exercise such call option does not represent a financial barrier or disincentive for the Company, through Hongcheng Technology, to exercise such call option. Hongcheng Technology’s rights under the powers of attorney, shareholder voting rights entrustment agreements and the exclusive call option agreements provide the Group with control over the shareholders of VIE and thus provide the Group with the power to direct the activities that most significantly impact VIE’s economic performance. | ||||||||
Risks in relation to the VIE structure | ||||||||
The Group believes that Hongcheng Technology’s contractual arrangements with the VIE are in compliance with existing PRC law and regulations and are valid, binding and enforceable and will not result in any violation of PRC laws or regulations currently in effect. However, substantial uncertainties exist regarding the interpretation of current and future PRC laws and regulations and the PRC regulatory authorities may take a contrary view. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and | ||||||||
· revoke the business and operating licenses of our PRC subsidiaries or VIE; | ||||||||
· restrict the rights to collect revenues from any of our PRC subsidiaries; | ||||||||
· discontinue or restrict the operations of any related-party transactions among our PRC subsidiaries or VIE; | ||||||||
· require our PRC subsidiaries or VIE to restructure the relevant ownership structure or operations; | ||||||||
· take other regulatory or enforcement actions, including levying fines that could be harmful to our business; or | ||||||||
· impose additional conditions or requirements with which we may not be able to comply. | ||||||||
The imposition of any of these penalties may result in a material adverse effect on the Group’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Group to lose the rights to direct the activities of the VIE and their subsidiaries or the right to receive their economic benefits, the Group would no longer be able to consolidate the VIE. | ||||||||
The Group’s ability to control the VIE depends on the power of attorney that enable Hongcheng Technology to vote on all matters requiring shareholder approval in the VIE. As noted above, the Group believes this power of attorney is valid, binding and enforceable under existing PRC laws and regulations but may not be as effective as direct equity ownership. | ||||||||
The nominee shareholders of the VIE are also beneficial owners of the Company. Their interests as shareholders of VIE may differ from the interests of the Group as a whole. The Group cannot be certain that if conflicts of interest arise, these parties will act in the best interests of the Group or that conflicts of interests will be resolved in the Group’s favor. Currently, the Group does not have existing arrangements to address potential conflicts of interest these parties may encounter in their capacity as shareholders of VIE, on the one hand, and as shareholders of the Company, on the other hand. The Group believes the shareholders of the VIE will not act contrary to any of the contractual arrangements and the exclusive call option arrangements provide the Group with a mechanism to remove them as shareholders of VIE should they act to the detriment of the Group. If any conflict of interest or dispute between the Group and the shareholders of VIE arises and the Group is unable to resolve it, the Group would have to rely on legal proceedings in the PRC. Such legal proceedings could result in disruption of its business; moreover, there is substantial uncertainty as to the ultimate outcome of any such legal proceedings. | ||||||||
The Group’s online tutoring programs and private primary and secondary schools are directly operated by the VIE and its subsidiaries. The Group has consolidated the net revenues of the VIE and its subsidiaries in its consolidated financial statements in accordance with US GAAP. For the years ended December 31, 2011, 2012 and 2013, RMB95,880, RMB108,751 and RMB102,931, or 22%, 22% and 19%, respectively, of the Group’s total net revenues were attributable to the VIE and its subsidiaries. As of December 31, 2012 and 2013, the VIE and its subsidiaries accounted for an aggregate of 21% and 17%, respectively, of the Group’s consolidated total assets, and 17% and 26%, respectively, of the Group’s consolidated total liabilities. | ||||||||
The financial information of the VIE and VIE’s subsidiaries, before intercompany balance elimination, as of December 31, 2012 and 2013 and for the years ended December 31, 2011, 2012 and 2013 were as follows: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Cash and cash equivalents | 36,772 | 21,682 | ||||||
Accounts receivable | 9,313 | 1,342 | ||||||
Prepaid expenses and other current assets | 6,714 | 4,319 | ||||||
Total current assets | 67,023 | 47,640 | ||||||
Property and equipment, net | 152,756 | 145,726 | ||||||
Land use rights, net | 26,049 | 25,441 | ||||||
Total assets | 255,170 | 224,380 | ||||||
Total liabilities | 206,098 | 175,525 | ||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | 95,880 | 108,751 | 102,931 | |||||
Net (loss) income | (6,131 | ) | (2,247 | ) | 4,415 | |||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net cash provided by operating activities | 16,487 | 20,339 | (9,488 | ) | ||||
Net cash used in investing activities | (19,656 | ) | (947 | ) | (5,602 | ) | ||
Net cash used in financing activities | (1,479 | ) | — | — | ||||
There are no consolidated VIE’s assets that are collateral for the VIE’s obligations and which can only be used to settle the VIE’s obligations. No creditors (or beneficial interest holders) of the VIE have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Group or its subsidiaries to provide financial support to the VIE. However, if the VIE ever needs financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Basis of presentation | ||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements of the Group are stated in Renminbi (“RMB”). The presentation of the amounts in United States dollar (“US$”) is included solely for the convenience of the reader and were converted at a rate of RMB 6.0537 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2013. Such translation should not be construed to be the amounts that would have been reported under US GAAP. | ||||||||
Basis of consolidation | ||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and its VIE’s subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | ||||||||
Use of estimates | ||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and the accompanying notes. Significant accounting estimates reflected in the Group’s financial statements include the useful lives and impairment of property and equipment, and intangible assets with definite lives; valuation allowance for deferred tax assets; impairment of goodwill and other intangible assets with indefinite lives; and share-based compensation expense. Actual results could differ from these estimates. | ||||||||
Cash and cash equivalents | ||||||||
Cash and cash equivalents consist of cash on hand and demand deposits which are unrestricted as to withdrawal or use, or have original maturities of three months or less when purchased. | ||||||||
Term deposits | ||||||||
Term deposits consist of deposits placed with financial institutions with original maturity terms of greater than three months but less than one year. | ||||||||
Short-term investments | ||||||||
The Group’s short-term investments mainly comprise debt securities which are classified as available-for-sale or held-to-maturity investments. The available-for-sale investments are reported at fair values with the unrealized gains or losses recorded in accumulated other comprehensive income in shareholders’ equity. Short-term investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity. All of the Group’s held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. | ||||||||
The Group reviews its available-for-sale short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. | ||||||||
If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell nor will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. | ||||||||
In addition, the short-term investments as of December 31, 2012 include an equity method investment in a limited partnership which retired in 2013. Accounting policy for equity method investment is presented below. | ||||||||
Equity method investment | ||||||||
Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee at between 20% and 50%, and other factors, such as representation on the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. | ||||||||
Investee companies in which the Group has equity interest over 50%, but the noncontrolling shareholders have substantive rights to participate in significant operating and financing decisions are accounted for using the equity method. | ||||||||
An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. | ||||||||
Accounts receivable | ||||||||
Accounts receivable is recorded when it becomes due based on the service agreement, and primarily relates to the online education technical, consulting and recruiting services provided to certain university customers, and online tutoring services. | ||||||||
The Group determines its allowance by considering a number of factors, including the length of time the receivable is past due, the Group’s previous loss history, the counter party’s current ability to pay its obligation to the Group, and the condition of the general economy and the industry as a whole. The Group writes off accounts receivable when it becomes apparent based upon age or customer circumstances that such amounts will not be collected. | ||||||||
Fair value | ||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||
Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | ||||||||
· Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | ||||||||
· Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||
· Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | ||||||||
Land use rights | ||||||||
Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives, which is generally 50 years and represents the shorter of the estimated usage periods or the terms of the land use rights agreements. | ||||||||
Property and equipment, net | ||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Assets under construction are not depreciated until they are ready for their intended use. Depreciation and amortization is calculated on a straight-line basis over the following estimated useful lives: | ||||||||
Buildings | 20 years | |||||||
Furniture, fixtures and equipment | 3-5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | Shorter of the lease term or the | |||||||
estimated useful lives | ||||||||
Acquired intangible assets with definite lives, net | ||||||||
Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the acquisition method of accounting are carried at cost less accumulated amortization and impairment. Amortization of acquired intangible assets is calculated on a straight-line basis over the shorter of the contractual terms or the expected useful lives of the acquired assets. The weighted average amortization periods by major intangible assets classes are as follows: | ||||||||
Service agreements with universities and high schools | 26 years | |||||||
Operating platforms used to provide online education service | 6 years | |||||||
Customer base | 4 years | |||||||
Online coursewares | 3 years | |||||||
Partnership with agencies | 5 years | |||||||
Exclusive partnership with universities | 16 years | |||||||
Operational right of private school | 22 years | |||||||
Partnership with local institutes | 7.2 years | |||||||
Acquired right to use trademark | 2.2 years | |||||||
Intangible assets-indefinite lives | ||||||||
If an intangible asset is determined to have an indefinite life, it should not be amortized until its useful life is determined to be no longer indefinite. An intangible asset that is not subject to amortization is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such impairment test consists of comparing the fair values of assets with their carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. | ||||||||
Impairment of long-lived assets and intangible assets with definite life | ||||||||
Long-lived assets, such as property and equipment and definite-lived intangible assets are stated at cost less accumulated depreciation or amortization. The Group evaluates the recoverability of long-lived assets, including intangible assets, with determinable useful lives whenever events or changes in circumstances indicate that a long-lived asset’s carrying amount may not be recoverable. The Group measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows associated with it. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. | ||||||||
Goodwill | ||||||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. | ||||||||
Goodwill is not amortized but evaluated for impairment annually or more frequently if event and circumstances indicate that they might be impaired. The Group first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. | ||||||||
Treasury stock | ||||||||
Treasury stock represents shares of the Company’s stock that have been issued, repurchased by the Company, and that have not been retired or canceled. These shares have no voting rights and are not entitled to receive dividends and excluded from the weighted average outstanding shares in calculation of net income per share. Treasury stock is recorded at cost. | ||||||||
Revenue recognition | ||||||||
The Group’s revenue is principally derived from the following: | ||||||||
(a) Online degree programs, which mainly provide: (i) online education technical and consulting services; and (ii) recruiting services and enrollment marketing services. | ||||||||
(i) Online education technical and consulting services | ||||||||
The Group’s primary business is to provide online education technical and consulting services to the online degree programs of leading Chinese universities. These services mainly include academic program development, technology services, and student support services. All these services are provided over the service period, therefore the related revenue is recognized ratably over the Six-month School Semester (the “Semester”) during which the Group provides the services. The Semesters generally begin in April and October of each calendar year. | ||||||||
(ii) Students recruiting services, online technical services and enrollment marketing services | ||||||||
The Group also provides students recruiting, online technical, enrollment marketing services through its learning centers network for collaborative universities in China, including those universities to which the Group provides online education technical and consulting services. The amount of service fees earned is computed as a percentage of tuition fees, which the Group collected from students on behalf of the universities, based on the agreements entered into with the universities. | ||||||||
Service fees are initially recorded as deferred revenue and are recognized as revenue ratably over the Semester during which the Group provides the services. | ||||||||
(b) Online tutoring programs | ||||||||
The Group offers online interactive tutoring services to the students of primary and secondary schools through prepaid cards. These services allow the students to access the online education services over a fixed period of time, generally ranging from one month to three years, during which period the students can access the online learning platform at any time. The Group sells the prepaid cards to the students directly on its website or through distributors. The payment from distributors are generally received when the prepaid cards are delivered to the distributors, and not contingent upon the resale to the students (end users). | ||||||||
Payments received from students or distributors are initially recognized as deferred revenue. Revenue is recognized on a straight-line basis over the service period, starting from the activation of the prepaid cards by the students and ending with the prepaid cards’ expiration date. | ||||||||
(c) Private primary and secondary schools | ||||||||
The Group operates a number of private primary and secondary schools, which provide educational services to the students through traditional classroom education. Students register and pay for their classes at the beginning of each semester. Fees received from students upfront are initially recorded as deferred revenue. Revenue is recognized ratably over the service period, which is six months for each school semester. If a student withdraws from a class, any collected but unearned portion of the fee is recognized as revenue at that time unless the student is entitled to a refund. | ||||||||
(d) International and elite curriculum programs | ||||||||
The Group provides international post-secondary and English language learning services for high schools in the PRC and international polytechnic curriculum programs through traditional classroom education. For those programs, students register and pay for their classes at the beginning of each semester or each short-term program (i.e. Summer camp). Fees collected from learning institutions are recognized either on a straight-line basis over the service period, which is typically the six-month school semester or when such services are completed. | ||||||||
Business tax | ||||||||
The Group’s PRC subsidiaries, VIE and VIE’ subsidiaries are subject to business taxes at the rate of 5.6%, which is applied to service revenue generated from online education programs and international and elite curriculum programs. | ||||||||
Value added tax (“VAT”) and VAT rebate | ||||||||
The Group is subject to PRC value added tax (“VAT”) generally at a rate of 17% on certain revenue from the online education technical services and online tutoring services which reduces revenues, and are entitled to an offset for VAT paid or borne on the goods purchased by the Group. The Group is entitled to a rebate of VAT paid at a rate of 14%. The rebates are recorded as a component of revenue when the relevant compliance requirements are met and when there are no further obligations, and the rebates are not subject to future refunds or reimbursements. The rebates granted to the Group during the years ended December 31, 2011, 2012 and 2013 were RMB8,260, RMB12,237 and RMB16,223, respectively. | ||||||||
In July 2012, the Ministry of Finance and the State Administration of Taxation jointly issued a circular regarding the pilot collection of VAT in lieu of business tax in certain areas and industries in the PRC. Such VAT pilot program has been phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Starting from September 1, 2012, the Group’s six subsidiaries became subject to VAT at the rates of 6%, and seven subsidiaries became subject to VAT at the rates of 3%. Starting from July 2013, the Group’s two subsidiaries became subject to VAT at the rates of 6%, and one subsidiary became subject to VAT at the rates of 3% on certain service revenues which were previously subject to business tax. | ||||||||
Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. However, entities that are VAT small scale taxpayers, cannot offset their input VAT against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in either other current liabilities or other current assets on the consolidated balance sheets. | ||||||||
Research and development | ||||||||
Research and development expenses mainly include depreciation, payroll, employee benefits, and other headcount-related costs associated with the development of online education technology platform and courseware. The Group expenses all research and development costs as incurred. | ||||||||
Advertising costs | ||||||||
Advertising costs are expensed as incurred. The Group incurred advertising costs totaling RMB13,794, RMB3,801 and RMB 4,919 for the years ended December 31, 2011, 2012 and 2013 respectively, which are recorded as a component of selling and marketing expenses in the accompanying consolidated statements of operations. | ||||||||
Royalty fees | ||||||||
Royalty fees payable to the Fourth Middle School of Anqing for the use of the school’s education resources in the provision of the Group’s private primary and secondary schools services are payable each year from 2005 to 2024. The aggregated royalty fees are recognized as royalty expense on a straight-line basis over the royalty period. The difference between royalty fees paid and the amount reported as expenses was included as a component of accrued expenses and other current liabilities in the accompanying consolidated balance sheets. | ||||||||
Foreign currency translation | ||||||||
The functional currency of the Company, BJ-BCIT and BJ-WITT is the US$. The functional currency of all other entities within the Group is the RMB. Transactions in other currencies are recorded in each relevant entity’s functional currency at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into the applicable functional currencies at rates of exchange in effect at the balance sheet dates. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates and transactions denominated in other currencies are converted at the applicable rates of exchange prevailing when the transactions occur. Exchange gains and losses are recorded in the consolidated statements of operations. | ||||||||
The Group’s reporting currency is the RMB. The Group’s entities with functional currency of US$ translate their operating results and financial position into the RMB, the Group’s reporting currency. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity amounts are translated at historical exchange rates and revenues, expenses, gains, and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. | ||||||||
Income taxes | ||||||||
Current income taxes are provided in accordance with the laws of the relevant tax authorities. | ||||||||
Deferred income taxes are provided using the asset and liability method. Under this method, deferred income taxes are recognized for tax credits and net operating losses available for carry-forwards and significant temporary differences. Deferred tax assets and liabilities are classified as current or non-current based upon the classification of the related asset or liability in the financial statements or the expected timing of their reversal if they do not relate to a specific asset or liability. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. | ||||||||
The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority based solely on technical merits of the associated tax position. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. | ||||||||
Comprehensive income | ||||||||
Comprehensive income includes net income, foreign currency translation adjustments and change in fair value of available-for-sale investments. The Group presents the components of net income, the components of other comprehensive income and total comprehensive income in two separate but consicutive statements. | ||||||||
Financial instruments | ||||||||
Financial instruments include cash and cash equivalents, term deposits, short-term investments, accounts receivable, accounts payable, and amounts due from and due to related parties. The carrying values of cash and cash equivalents, term deposits, accounts receivable, accounts payable and amounts due from and due to related parties approximate their fair values due to their short-term maturities. The fair values of the equity method investment are not readily determinable. Held-to-maturity investments are recorded at amortized cost. Available-for-sale investments are carried at fair value. | ||||||||
Net income per share | ||||||||
Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. | ||||||||
Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted. Ordinary share equivalents are excluded from the computation of the diluted net income per share in periods when their effect would be anti-dilutive. The effect of the warrants, stock options, and Restricted Share Units (“RSUs”) are computed using the treasury stock method. | ||||||||
Share-based compensation | ||||||||
Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods. | ||||||||
Share-based payment issued to non-employees, such as advisors, are measured at fair value at the earlier of the commitment date or the date the service is completed and recognized over the period the service is provided. | ||||||||
A change in any of the terms or conditions of share options shall be accounted for as a modification of the plan. Therefore, the Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group would recognize incremental compensation cost in the period of the modification occurred and for unvested options, the Group would recognize, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. | ||||||||
Business combinations | ||||||||
The Group accounts for its business combinations using the acquisition method of accounting. Acquisition costs are allocated to the assets and liabilities the Group acquired based on their fair values with goodwill being the excess value over the net identifiable assets acquired. | ||||||||
The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. | ||||||||
Common forms of the consideration made in acquisitions are cash. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. | ||||||||
Significant risks and uncertainties | ||||||||
Concentration of credit risk | ||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable and amount due from related parties. The Group places its cash and cash equivalents and term deposits with financial institutions in the PRC and Hong Kong. | ||||||||
The Group conducts credit evaluations of its customers and generally does not require collateral or other security from them. To date, the Group has not experienced significant losses from uncollectible accounts. An allowance for doubtful accounts amounting to nil, RMB340 and RMB261 was recorded in 2011, 2012 and 2013, respectively and these amounts were written off in the same year. Management will continue to evaluate the Group’s collection experience and provide for an allowance for doubtful accounts as appropriate. | ||||||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated net revenues was as follows: | ||||||||
For the years ended December 31, | ||||||||
Customers | 2011 | 2012 | 2013 | |||||
% | % | % | ||||||
A | 13 | 14 | 16 | |||||
B | 11 | 11 | 11 | |||||
C | 13 | * | * | |||||
D | 11 | 10 | * | |||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated accounts receivable and amounts due from related parties was as follows: | ||||||||
As of December 31, | ||||||||
Customers | 2012 | 2013 | ||||||
% | % | |||||||
A | 36 | 39 | ||||||
B | 11 | * | ||||||
C | 24 | 12 | ||||||
D | 25 | 28 | ||||||
* Represented less than 10% of consolidated net revenue or accounts receivable and amounts due from related parties’ balances. | ||||||||
Foreign currency risk | ||||||||
The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents and term deposits of the Group included aggregate amounts of RMB476,425 and RMB563,167, which were denominated in RMB, at December 31, 2012 and 2013, respectively, representing 99.7% and 99.0% of the cash and cash equivalents and term deposits at December 31, 2012 and 2013, respectively. | ||||||||
Recently issued accounting pronouncements | ||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) has issued an authoritative pronouncement related to parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | ||||||||
For an equity method investment that is a foreign entity, the partial sale guidance still applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. | ||||||||
Additionally, the amendments in this pronouncement clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity (i.e., irrespective of any retained investment); and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. | ||||||||
The amendments in this pronouncement are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The Group will adopt this pronouncement on January 1, 2014 and does not expect the adoption of this pronouncement will have a significant impact on its financial condition or results of operations. | ||||||||
In July 2013, the FASB issued a pronouncement which provides guidance on financial statement presentation of an unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this Accounting Standard Updates (“ASU”) is to eliminate diversity in practice resulting from a lack of guidance on this topic in current US GAAP. | ||||||||
The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Group will adopt this pronouncement on January 1, 2014 and does not expect the adoption of this pronouncement will have a significant impact on its consolidated financial statements. |
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCOUNTS RECEIVABLE | ' | |||||||
ACCOUNTS RECEIVABLE | ' | |||||||
3. ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable, net consisted of the following: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Accounts receivable | 34,917 | 26,561 | ||||||
Less: allowance for doubtful accounts | — | — | ||||||
Accounts receivable, net | 34,917 | 26,561 | ||||||
Movement of allowance for doubtful accounts was as follow: | ||||||||
As of December 31 | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Balance as of January 1 | — | — | — | |||||
Charged to expenses | — | 340 | 261 | |||||
Written off | — | (340 | ) | (261 | ) | |||
Balance as of December 31 | — | — | — |
PREPAID_EXPENSES_AND_OTHER_CUR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
4. PREPAID EXPENSES AND OTHER CURRENT ASSETS | ||||||
Prepaid expenses and other current assets consisted of: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Staff advances and others | 4,878 | 7,826 | ||||
Advance to an online school | 341 | — | ||||
Prepaid rental expense | 2,872 | 3,997 | ||||
Prepaid advertisement expense | 601 | 364 | ||||
Prepaid courseware use right | 766 | 241 | ||||
Prepaid professional fees | 2,113 | 510 | ||||
Advances to suppliers | 4,801 | 3,372 | ||||
Interest receivables from term deposits | 953 | 1,996 | ||||
VAT rebate receivable | 6,130 | 4,278 | ||||
23,455 | 22,584 | |||||
Advance to an online school represented amount loaned to an online education alliance program to fund its operations, which is non-interest bearing and is payable on demand. VAT rebate receivable represented the accrued VAT rebate from online degree programs and online tutoring which is expected to be received in the following year of accrual. |
SHORTTERM_INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHORT-TERM INVESTMENTS | ' | |||||||||||||||||
SHORT-TERM INVESTMENTS | ' | |||||||||||||||||
5. SHORT-TERM INVESTMENTS | ||||||||||||||||||
As of December 31, 2012 and 2013, the Group held the following short term investments: | ||||||||||||||||||
As of December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
RMB | RMB | |||||||||||||||||
Available-for-sale investments | 15,575 | 7,127 | ||||||||||||||||
Equity method investment | 8,000 | — | ||||||||||||||||
23,575 | 7,127 | |||||||||||||||||
Held to maturity investments consist of trust funds with remaining maturity term less than one year. Since the Group had the positive intent and ability to hold the trust funds to maturity, the trust funds were classified as held to maturity investments and recorded at amortized cost. | ||||||||||||||||||
· In May 2010, the Group invested RMB8,000 in a trust fund managed by Zhongrong Trust Co., Ltd., which matured in May 2011. The Group received all the investment back and also received an investment interest of RMB646, which was recorded as investment income. | ||||||||||||||||||
· In March 2011, the Group invested RMB6,000 in a trust fund managed by Zhongrong Trust Co., Ltd., which matured in March 2012, the Group received all the investment back and also received an investment interest of RMB605, which was recorded as investment income. | ||||||||||||||||||
· In April 2011, the Group invested RMB3,000 in a trust fund managed by Minmetal International Trust Co., Ltd., which matured in April 2012. The Group received all the investment back and also received an investment income of RMB241, which was recorded as investment income. | ||||||||||||||||||
· In May 2011, the Group invested RMB8,000 in trust fund managed by Minmetal International Trust Co., Ltd., which matured in May 2012. The trust fund paid investment interest of RMB387 in December 2011. The Group received all the investment back and also received an investment income RMB388 in May 2012, which was also included in investment income. | ||||||||||||||||||
In June 2012, the Group invested RMB8,000 in a limited partnership managed by Hainan Airline Group, and the investment was retired in June 2013. The Group has applied the equity method to account for the investment as the Group, which holds a 12.75% limited partnership interest in this investment, is able to exercise significant influence over the operating and financial policies of the limited partnership. The Group has recognized and received a share of earnings on the investment in the amount of RMB480 for the year ended December 31, 2012 and 2013, repectively. | ||||||||||||||||||
The following table provides additional information on the unrealized gains and losses of the available-for-sale investments as of December 31, 2012 and 2013, respectively. | ||||||||||||||||||
As of December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
Accumulated | Net | Accumulated | Net | |||||||||||||||
Exchange | unrealized | carrying | Exchange | unrealized | carrying | |||||||||||||
Cost | difference | (loss) gains | amount | Cost | difference | (loss) gains | amount | |||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||
Available-for-sale | ||||||||||||||||||
Corporate Bonds | 15,939 | (1,483 | ) | 1,119 | 15,575 | 8,627 | (1.674 | ) | 174 | 7,127 | ||||||||
Total | 15,939 | (1,483 | ) | 1,119 | 15,575 | 8,627 | (1, 674 | ) | 174 | 7,127 | ||||||||
During the years ended December 31, 2012 and 2013, the Group sold RMB7,717 and RMB7,312 of corporate bonds, and the related gain of RMB226 and RMB497 was transferred to investment income in the statement of operations. |
LONGTERM_INVESTMENT
LONG-TERM INVESTMENT | 12 Months Ended |
Dec. 31, 2013 | |
LONG-TERM INVESTMENT | ' |
LONG-TERM INVESTMENT | ' |
6. LONG-TERM INVESTMENT | |
In March 2012, the Group and Shanghai Normal University set up an entity, Shanghai Shihong Technology Co., Ltd (“Shanghai Shihong”), in which the Group contributed cash of RMB1,020, representing 51% of equity interest in the entity. Shanghai Normal University contributed cash of RMB980, representing 49% of equity interest in the entity. The Group controls three out of five seats in the board of directors of Shanghai Shihong. The remaining two seats are controlled by the other shareholder. According to the article of association of Shanghai Shihong, two-thirds of the directors’ approval is required for the approval of operating budget and appointment and dismissal of the general manager. Therefore the Group does not have control but has significant influence over the operating and financial policies in Shanghai Shihong. The Group applied the equity method to account for the investment and recognized a share of (loss) gain on equity method investment in the amount of RMB(219) and RMB 212 for the year ended December 31, 2012 and 2013, respectively. |
LAND_USE_RIGHTS_NET
LAND USE RIGHTS, NET | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
LAND USE RIGHTS, NET | ' | |||||
LAND USE RIGHTS, NET | ' | |||||
7. LAND USE RIGHTS, NET | ||||||
Land use rights, net consisted of the following: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Land use rights | 30,287 | 30,287 | ||||
Less: accumulated amortization | (4,238 | ) | (4,846 | ) | ||
Land use rights, net | 26,049 | 25,441 | ||||
Amortization expenses for land use rights totaled RMB608, RMB608 and RMB608 for the years ended December 31, 2011, 2012 and 2013, respectively. Future amortization expenses for the next five years through December 31, 2018 are RMB608 per year. |
PROPERTY_AND_EQUIPMENT_NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||
PROPERTY AND EQUIPMENT, NET | ' | |||||
8. PROPERTY AND EQUIPMENT, NET | ||||||
Property and equipment, net consisted of the following: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Buildings | 241,560 | 245,443 | ||||
Furniture, fixtures and equipment | 73,991 | 78,580 | ||||
Motor vehicles | 12,251 | 12,855 | ||||
Leasehold improvements | 19,382 | 21,558 | ||||
347,184 | 358,436 | |||||
Less: accumulated depreciation and amortization | (113,448 | ) | (135,064 | ) | ||
233,736 | 223,372 | |||||
Construction in progress | 4,827 | 9,186 | ||||
238,563 | 232,558 | |||||
Depreciation and amortization expenses for the years ended December 31, 2011, 2012 and 2013 were RMB23,900, RMB25,377 and RMB25,599, respectively. |
ACQUIRED_INTANGIBLE_ASSETS_NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ' | |||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ' | |||||||||||||||||
9. ACQUIRED INTANGIBLE ASSETS, NET | ||||||||||||||||||
Acquired intangible assets, net including those acquired as part of business combinations consisted of the following: | ||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
carrying | Accumulated | Accumulated | carrying | carrying | Accumulated | Accumulated | carrying | |||||||||||
amount | amortization | impairment | amount | amount | amortization | impairment | amount | |||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||
Acquired intangible assets with definite lives | ||||||||||||||||||
Service agreements with universities and high schools | 89,235 | (19,103 | ) | (34,958 | ) | 35,174 | 89,235 | (20,318 | ) | (34,958 | ) | 33,959 | ||||||
Operating platforms used to provide online education services | 759 | (759 | ) | — | — | 759 | (759 | ) | — | — | ||||||||
Customer base | 11,708 | (11,708 | ) | — | — | 11,708 | (11,708 | ) | — | — | ||||||||
Online coursewares | 3,623 | (3,623 | ) | — | — | 3,623 | (3,623 | ) | — | — | ||||||||
Partnership with agencies | 356 | (353 | ) | — | 3 | 356 | (356 | ) | — | — | ||||||||
Exclusive partnership with universities | 21,356 | (10,453 | ) | — | 10,903 | 21,356 | (11,732 | ) | — | 9,624 | ||||||||
Operational right of private school | 4,464 | (2,021 | ) | — | 2,443 | 4,464 | (2,275 | ) | — | 2,189 | ||||||||
Partnership with local institutes | 2,380 | (720 | ) | — | 1,660 | 2,380 | (1,052 | ) | — | 1,328 | ||||||||
Reacquired right to use trademark | 300 | (300 | ) | — | — | 300 | (300 | ) | — | — | ||||||||
Total intangible assets with definite lives | 134,181 | (49,040 | ) | (34,958 | ) | 50,183 | 134,181 | (52,123 | ) | (34,958 | ) | 47,100 | ||||||
Acquired intangible assets with indefinite lives | ||||||||||||||||||
Trade name | 4,316 | — | 4,316 | 4,316 | — | — | 4,316 | |||||||||||
Total | 138,497 | (49,040 | ) | (34,958 | ) | 54,499 | 138,497 | (52,123 | ) | (34,958 | ) | 51,416 | ||||||
In September 2012, the Group disposed one of its exclusive partnerships with universities, which carried at RMB315 before the disposal, for cash of RMB315, and therefore, no gain or loss resulted from the disposal. | ||||||||||||||||||
In the third quarter of 2012, due to the projected revenue decrease for the Group’s international and elite curriculum segment, the Group performed an impairment test for the related intangible assets with the assistance of a third-party valuation firm. As a result of the impairment test, an impairment loss of RMB5,901 with respect to the service agreements with universities and high schools was recorded for the year ended December 31, 2012. The Group determined the fair values of intangible assets based on a discounted cash flow model (e.g., excess earning method) using key assumptions including revenue growth rates and discount rates. | ||||||||||||||||||
No impairment loss for the intangible assets was recognized for the years ended December 31, 2011 and 2013. | ||||||||||||||||||
Amortization expenses were RMB4,171, RMB3,903 and RMB3,083 for the years ended December 31, 2011, 2012 and 2013, respectively. Amortization expenses for the next five years are as follows: | ||||||||||||||||||
Years ending December 31, | RMB | |||||||||||||||||
2014 | 2,929 | |||||||||||||||||
2015 | 2,892 | |||||||||||||||||
2016 | 2,720 | |||||||||||||||||
2017 | 2,512 | |||||||||||||||||
2018 | 2,512 |
GOODWILL
GOODWILL | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
GOODWILL | ' | |||||||||||
GOODWILL | ' | |||||||||||
10. GOODWILL | ||||||||||||
The changes in the carrying amount of goodwill by operating segments for the years ended December 31, 2012 and 2013 were as follows. There were no changes in the carrying amount of goodwill by operating segments for the year ended December 31, 2013 | ||||||||||||
2012 and 2013 | ||||||||||||
Online | Private primary | Online | International and | |||||||||
degree | and secondary | tutoring | elite curriculum | |||||||||
programs | schools | programs | programs | Total | ||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||
Gross amount: | ||||||||||||
Beginning balance | 17,960 | 1,924 | 20,798 | 59,801 | 100,483 | |||||||
Changes during the year | — | — | — | — | — | |||||||
Ending balance | 17,960 | 1,924 | 20,798 | 59,801 | 100,483 | |||||||
Accumulated impairment | ||||||||||||
Beginning balance | — | (1,924 | ) | — | (55,304 | ) | (57,228 | ) | ||||
Changes during the year | — | — | — | — | — | |||||||
Ending balance | — | (1,924 | ) | — | (55,304 | ) | (57,228 | ) | ||||
Goodwill, net | 17,960 | — | 20,798 | 4,497 | 43,255 | |||||||
The Group performs its annual goodwill impairment tests at each year end or more frequently if events or changes in circumstances indicate that it might be impaired. In the goodwill impairment test, the Group used the income approach, which it believed to be more reliable than the market approach in determining the fair value of the Group’s reporting units. Accordingly, it adopted a discounted cash flow (“DCF”) method under the income approach, which considers a number of factors, including expected future cash flows based on five-year financial forecasts developed by management that included revenue projections, capital spending trends, and investments in working capital to support anticipated revenue growth, and discount rates developed using market participant based assumptions, and requires the Group to make certain assumptions and estimates regarding industry economic factors and future profitability of its reporting units. The assumptions are inherently uncertain and subjective. | ||||||||||||
No impairment charges were recorded for the years ended December 31, 2011, 2012 and 2013. |
BANK_BORROWINGS
BANK BORROWINGS | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
BANK BORROWINGS | ' | |||||
BANK BORROWINGS | ' | |||||
11. BANK BORROWINGS | ||||||
Revolving loan | ||||||
In January 2013, the Company obtained a monthly revolving loan of RMB6,211 (equivalent of US$998) with an annual interest rate of 1.21% from Credit Agricole (Suisse) SA, Hong Kong branch. The loan was pledged by the corporate bonds of RMB10,008 (equivalent of US$1,608) which are included in short-term investments and are held by the Company with the same bank. The Company has repaid RMB 2,037(equivalent of US$333) between July and October in 2013. The revolving loan is renewable subject to the Company’s negotiation with the bank. | ||||||
Credit facility agreement | ||||||
1. In January 2013, the Company entered into a credit facility agreement (“Loan Agreement”) , mainly for share repurchases, with The Bank of East Asia, Limited (“BEA”), which includes Facility 1 of up to a maximum principal amount of RMB 160,000 and Facility 2 of up to a maximum principal amount of USD10,000. The Company has withdrawn RMB159,750 (equivalent of US$ 26,389) of Facility 1 and the remaining RMB250 of credit was cancelled and has fully withdrawn the amount of Facility 2 of USD10,000 on February 1, 2013. | ||||||
The interest rate for the loan from Facility 1 is 4.5%, being defined at 0.5% plus BEA CNY Prime Rate as quoted by BEA from time to time; the interest rate for the loan from Facility 2 was 4.4455%, being defined at 4.2% plus 3-month London Interbank Offered Rate (“LIBOR”) (0.2455% as of the date of loan withdrawn). Facility 1 is a three-year loan and Facility 2 is a one-year loan. | ||||||
Facility 1 was secured by a standby letter of credit issued by BEA Beijing branch. The standby letter of credit was secured by a three-year cash pledge of RMB95,850 and the collateralization of the Gehua building office. The security provided for Facility 2 is to maintain an RMB deposit with BEA Beijing branch for an amount with daily average balance of not less than RMB35,000 throughout the loan life of the Facility 2 and a monitoring agreement regarding the RMB deposits maintained. | ||||||
The Loan Agreement was fully repaid on September 30, 2013. | ||||||
2. In September 2013, the Company entered into a facility agreement with China Merchants Bank Co., Ltd., Hong Kong Branch (“CMB”), which includes a maximum principal amount of USD36,000. The Company has fully withdrawn the amount in September 2013. The interest rate for this credit facility agreement is at 2.79% plus 3-month LIBOR and it is a three-year loan. | ||||||
The loan was secured by share pledge of Hongcheng Technology, share pledge of Hongcheng Liye and a standby letter of credit issued by CMB Shenzhen branch. The standby letter of credit was secured by a one-year cash pledge of RMB30,000 which was included in term deposits and the collateralization of the office building which was included in property and equipment at RMB38,575 as of December 31, 2013. | ||||||
The facility agreement replaced the Company’s prior Loan Agreement with BEA. | ||||||
Changes in the balances of bank borrowings for the year ended December 31, 2013 is as follows. | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Beginning balance as of January 1 | — | — | ||||
Principal of bank borrowings during the year | — | 448,671 | ||||
Payment of financing cost | — | (8,557 | ) | |||
Accrued interest expenses and amortization of debt discount | — | 12,849 | ||||
Repayment of principle during the year | — | (223,040 | ) | |||
Payment of interest during the year | — | (8,360 | ) | |||
Exchange differences | — | (3,624 | ) | |||
Ending balances as of December 31 | — | 217,939 | ||||
Including: | ||||||
Current | — | 4,056 | ||||
Non-current | — | 213,883 | ||||
Ending balances as of December 31 | — | 217,939 |
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||
12. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||
Accrued expenses and other current liabilities consisted of the following: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Advances from students (1) | 13,804 | 11,850 | ||||
Accrued expenses | 13,730 | 22,815 | ||||
Accrued professional fees | 1,168 | 456 | ||||
Accrued employee payroll and welfare benefits | 67,979 | 74,246 | ||||
Tuition fees payable to universities | 10,324 | 17,877 | ||||
Other payables | 6,553 | 10,253 | ||||
113,558 | 137,497 | |||||
(1) Advances from students represented amounts received for books and materials, which the Group collected from students on behalf of third party vendors. |
OTHER_TAXES_PAYABLE
OTHER TAXES PAYABLE | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
OTHER TAXES PAYABLE | ' | |||||
OTHER TAXES PAYABLE | ' | |||||
13. OTHER TAXES PAYABLE | ||||||
Other taxes payable consisted of the following: | ||||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
VAT payable | 10,618 | 16,526 | ||||
Business taxes payable | 15,691 | 18,544 | ||||
Individual income taxes withheld (1) | 944 | 1,143 | ||||
Real estate taxes payable | 41 | 41 | ||||
27,294 | 36,254 | |||||
(1) The Group is required to withhold PRC individual income taxes on employees’ payroll for remittance to the tax authorities. |
SHARE_OPTION_PLAN
SHARE OPTION PLAN | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHARE OPTION PLAN | ' | |||||||||||||||||
SHARE OPTION PLAN | ' | |||||||||||||||||
14. SHARE OPTION PLAN | ||||||||||||||||||
The Company’s original employee share option plan (the “Original Plan”) was effective on August 10, 2000 and allowed the Company to offer a variety of incentive awards to employees and non-employee directors of the Group and any consultant who performs services for the Group. Pursuant to the Original Plan, an incentive option could only be granted to employees and a non-qualified option could be granted to employees, non-employee directors and consultants. The number of option shares granted under the Original Plan was not permitted to exceed 15% of the aggregate number of the issued and outstanding shares of the Company, calculated on a fully-diluted basis. Under the terms of the Original Plan, the exercise price for an incentive option shall not be less than 100% of the fair market value of the ordinary share on the date of grant. Option vesting schedule shall be more than three years and no acceleration for option vesting schedule shall be permitted, unless approved by Board of Directors. On December 13, 2004, an Amended and Restated Share Option Plan (the “Amended Plan”) became effective, and replaced the Original Plan. Under the Amended Plan, options to purchase ordinary shares increased to 12,846,621. | ||||||||||||||||||
In March 2007, the Company adopted the Second Amended and Restated Share Option Plan (the “Second Amended Plan”), which replaced the Amended Plan and provided for the grant of non-vested shares as well as options. Under the Second Amended Plan, the Company was permitted to grant options to purchase up to 12,846,621 ordinary shares to the Group’s employees, directors and consultants. The minimum option vesting period for any option grants under the Second Amended Plan was three years and acceleration of option vesting was not permitted, unless approved by the Board of Directors. | ||||||||||||||||||
The terms of the Second Amended Plan did not permit incentive share options to be granted to greater than 10% shareholders unless the exercise price equaled at least 110% of the fair market value. | ||||||||||||||||||
The Company adopted the Equity Incentive Plan (the “Equity Incentive Plan”) in November 2007. The Equity Incentive Plan replaced the Second Amended Plan adopted in March 2007. The Equity Incentive Plan allows the Company to offer a variety of incentive awards to employees and non-employee directors of the Group and any consultant who performs services for the Group. Pursuant to the Equity Incentive Plan, an incentive share option (“ISO”) may only be granted to employees and a non-qualified option may be granted to employees, non-employee directors and consultants. No more than 12,846,621 shares may be issued under the Equity Incentive Plan provided, however, that there shall be an annual increase on January 1 of each year in an amount equal to two percent (2%) of the total number of the Company’s outstanding shares at December 31 of the preceding calendar year. Under the terms of the Equity Incentive Plan, the exercise price for an ISO shall not be less than 100% of the fair market value per share on the grant date. However, in the case of an ISO awarded to a grantee who at the time of grant owned shares representing more than 10% of the combined voting power of all classes of the Company’s share capital (including any equity of any of the Company’s Chinese subsidiaries), the exercise price of option may not be less than 110% of the fair market value of the ordinary shares on the date of grant of such ISO and the option period may not be greater than five years from the date of grant. The minimum option vesting period for any option grant is three years and acceleration of vesting is not permitted, unless approved by the Board of Directors. | ||||||||||||||||||
The Company’s shareholders approved certain amendments to its Equity Incentive Plan (as amended, the “Amended Equity Incentive Plan”) at the Extraordinary General Meeting held on March 6, 2009. The amendments (i) provide for the administration of the Amended Equity Incentive Plan by the Compensation Committee of the Company’s Board of Directors; (ii) delegate to the Compensation Committee authority to, among other things, amend or modify outstanding awards under the Amended Equity Incentive Plan, including the repricing of “underwater” options; and (iii) eliminate the requirement that subsequent amendments to the Amended Equity Incentive Plan be submitted for shareholder approval. | ||||||||||||||||||
On August 18, 2010, the Compensation Committee adopted the Second Amended Equity Incentive Plan (as amended, the “Second Amended Equity Incentive Plan”). No more than 16,071,593 Shares may be issued under the Second Amended Equity Incentive Plan, provided however that there shall be an annual increase to be added on January 1st each year in an amount equal to two point five percent (2.5%) of the total number of the Company’s outstanding shares at December 31 of the preceding calendar year. | ||||||||||||||||||
All options granted will vest over periods ranging from immediately to four years and any unexercised options will expire ten years from the date of grant. As of December 31, 2013, respectively, options to purchase 6,699,624 ordinary shares were outstanding, and options to purchase 2,110,061 ordinary shares remained available for future grants. | ||||||||||||||||||
In June 2008, the Company transferred 8,344,305 ordinary shares to its depositary bank representing 2,781,435 ADSs, to be issued to employees and non-employees upon the exercise of their vested share options. 116,787, 837,204 and 793,029 ordinary shares out of these 8,344,305 ordinary shares had been issued to employees and non-employees upon the exercise of their share options for the year ended December 31, 2011, 2012 and 2013 respectively. 5,210,658 ordinary shares remain for future issuance, therefore neither are included in the outstanding number of shares as of December 31, 2013 nor included in the computation of basic and diluted EPS. | ||||||||||||||||||
On February 14, 2012, the Compensation Committee authorized the Company to reprice 1,031,000 “underwater” options at USD5.85 per ADSs on the approval date. The Compensation Committee authorized this in order to enhance the Group’s ability to retain and motivate its employees, directors and consultants. The number of employees affected was 30. This was accounted for as a modification. The total incremental compensation cost resulting from the modifications is RMB604, which is recognized over the remaining vesting period. | ||||||||||||||||||
For the share options granted to employees, the Group recorded compensation expense based on the fair value of each option on the date of grant estimated using the Black-Scholes option pricing model. The Group recorded a total compensation expense of RMB3,446, RMB3,804and RMB 611 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||||||||||
The following assumptions were used in option pricing model to determine the fair value of options on the date of grant/modification. There were no options granted in 2012 and 2013. | ||||||||||||||||||
2011 | ||||||||||||||||||
Weighted average volatility rate | 47.6 | % | ||||||||||||||||
Weighted average risk-free interest rate | 1.18 | % | ||||||||||||||||
Weighted average expected option life (years) | 6 | |||||||||||||||||
Weighted average dividend yield | — | |||||||||||||||||
Weighted average fair value of underlying ordinary share | $ | 0.84 | ||||||||||||||||
(1) Volatility | ||||||||||||||||||
The volatility of the underlying ordinary shares during the life of the options was estimated based on the historical stock price volatility of the Company over the past years. | ||||||||||||||||||
(2) Risk-free interest rate | ||||||||||||||||||
Risk-free interest rate was estimated based on the yield to maturity of treasury bonds of the United States with a maturity period close to the expected term of the options. | ||||||||||||||||||
(3) Expected term | ||||||||||||||||||
As the Company did not have sufficient historical share option exercise experience, it estimated the expected term base on a consideration of factors including contractual term, vesting period and empirical study on exercise behavior of employee share option. | ||||||||||||||||||
(4) Dividend yield | ||||||||||||||||||
The Company assumed a zero dividend yield based on its expected dividend policy over the expected term of the options. The Company anticipates growing its business with internally generated cash and does not expect to pay dividends in the foreseeable future, nor has it paid any dividends to date. | ||||||||||||||||||
(5) Fair value of underlying ordinary shares | ||||||||||||||||||
The closing market price of the Company’s ordinary shares as of the grant date was used as the fair value of the underlying ordinary shares on that date. | ||||||||||||||||||
A summary of the share option activity was as follows. The fair value of the ordinary shares, and exercise prices set forth in the tables below are denominated in US$. | ||||||||||||||||||
Outstanding options | ||||||||||||||||||
Weighted | Weighted average | |||||||||||||||||
average | grant-date | |||||||||||||||||
Number of | exercise | fair value of | ||||||||||||||||
options | price per share | ordinary shares | ||||||||||||||||
US$ | US$ | |||||||||||||||||
Outstanding at January 1, 2013 | 9,128,105 | 1.48 | 1.6 | |||||||||||||||
Exercised | (1,873,029 | ) | 1.1 | 1.21 | ||||||||||||||
Forfeited | (555,400 | ) | 2.06 | 2.17 | ||||||||||||||
Expired | (52 | ) | 1.31 | 1.42 | ||||||||||||||
Outstanding at December 31, 2013 | 6,699,624 | 1.54 | 1.66 | |||||||||||||||
Vested and expected to vest as of December 31, 2013 | 6,699,624 | 1.54 | 1.66 | |||||||||||||||
Exercisable as of December 31, 2013 | 6,589,624 | 1.49 | 1.65 | |||||||||||||||
The following table summarizes information with respect to share options outstanding at December 31, 2013: | ||||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||
average | Weighted | average | average | Weighted | average | |||||||||||||
Number | remaining | average | intrinsic | Number | remaining | average | intrinsic | |||||||||||
outstanding | contractual life | exercise price | value | exercisable | contractual life | exercise price | value | |||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Average exercise price: | ||||||||||||||||||
US$ | ||||||||||||||||||
0.86 | 961,600 | 0.93 | 0.86 | 1.41 | 961,600 | 0.93 | 0.86 | 1.41 | ||||||||||
1.09-1.85 | 5,155,887 | 2.57 | 1.56 | 0.73 | 5,045,887 | 2.46 | 1.56 | 0.71 | ||||||||||
1.86-2.85 | 582,137 | 5.87 | 1.95 | 0.32 | 582,137 | 5.87 | 1.95 | 0.32 | ||||||||||
6,699,624 | 2.63 | 1.54 | 0.77 | 6,589,624 | 2.54 | 1.49 | 0.78 | |||||||||||
Total intrinsic value of options exercised for the years ended December 31, 2011, 2012 and 2013 was RMB840, RMB5,103 and RMB13,141, respectively. | ||||||||||||||||||
As of December 31, 2013, there was RMB466 unrecognized share-based compensation cost related to share options. Such cost is expected to be recognized over a weighted-average vesting period of 0.83 years. | ||||||||||||||||||
Stock Incentive Plan-Restricted Share Units | ||||||||||||||||||
In September 2010, the Compensation Committee of the Board of Directors of the Company approved a Restricted Share Units (“RSUs”) awards program pursuant to the Equity Incentive Plan. Each RSU represents the contingent right of the participant to receive an ordinary share with zero exercise price. The fair value of each RSU is measured on the grant date based on the market closing price of the Company’s ordinary share on the grant date. Each of the fair values of the restricted share units set forth in the tables below are denominated in US$. | ||||||||||||||||||
In May 2012, the Company granted 124,000 RSUs to its employees, which will fully vest at the end of the third year after the issuance. | ||||||||||||||||||
In November 2012, the Company granted 1,599,000 RSUs to its employees, of which 75% will vest at the end of the third year after the issuance and the remaining 25% of the RSUs will vest at the end of the fourth year after the issuance. | ||||||||||||||||||
Outstanding restricted share units | ||||||||||||||||||
Number of | Weighted average | |||||||||||||||||
restricted | grant date | |||||||||||||||||
share units | fair value | |||||||||||||||||
US$ | ||||||||||||||||||
Outstanding at January 1, 2013 | 3,313,000 | 2.08 | ||||||||||||||||
Forfeited | (222,000 | ) | 2.16 | |||||||||||||||
Outstanding at December 31, 2013 | 3,091,000 | 2.07 | ||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,376,240 | 2.02 | ||||||||||||||||
For RSUs with performance targets, the Group recognizes compensation cost on the RSUs based on the estimated probability of achieving the performance target of each year and on a straight-line basis over the requisite service period. For RSUs without performance targets, the Group recognizes compensation costs on the RSUs based on a straight line basis over the requisite service period. The Group recorded total compensation cost of RMB3,037, RMB4,454 and RMB 9,276 related to the RSUs for the years ended December 31, 2011, 2012 and 2013, respectively. As of December 31, 2013, the estimated stock-based compensation costs to be recognized are RMB11,219 over the weighted average of 1.98 years. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
INCOME TAXES | ' | |||||||||||
INCOME TAXES | ' | |||||||||||
15. INCOME TAXES | ||||||||||||
Cayman Islands | ||||||||||||
The Company is a tax-exempt entity incorporated in the Cayman Islands. | ||||||||||||
British Virgin Islands | ||||||||||||
BJ-BCIT and BJ-WITT are tax-exempt entities incorporated in the British Virgin Islands. | ||||||||||||
PRC | ||||||||||||
The Group’s PRC subsidiaries and VIE and VIE’s subsidiaries are generally subject to an enterprise income tax at 25% tax rate pursuant to the Enterprise Income Tax Law (the “EIT” Law). | ||||||||||||
Under the EIT Law, the Group’s PRC entities qualifed as “high and new technology enterprise” (“the HNTE”) are entitled to a tax rate of 15%. CMR Web, Hongcheng Liye, Hongcheng Education, Zhongnongda Network, Beiyuda, Gotop Hongcheng, and Dongcai renewed the HNTE status for additional three years in 2011. Chongda and Hongyuanboxue obtained the HNTE status in 2010 and 2013 respectively. Hongcheng Technology renewed the HNTE status for additional three years in 2012. Due to a change of organizational structure in 2013, Hongcheng Liye and Hongcheng Education did not meet the criteria for HNTE status anymore. As such, they are not entitled to the reduced tax rate of 15% and the normal tax rate of 25% applies in 2013 and the foreseeable future. The Group believes it is highly likely that the other qualifying entities will continue to obtain the renewal in the future. | ||||||||||||
As a HNTE located in Beijing, Gotop Hongcheng was entitled to the reduced tax rate of 7.5% for the year 2011. | ||||||||||||
Beiyuda obtained the preferential tax rate approval from local tax Bureau and was entitled to a reduced tax rate of 7.5% for 2011 and 2012. | ||||||||||||
Zhejiang Hongcheng has been qualified as “software enterprise” status from 2013 and therefore was entitled to the tax exemption in 2013, and a preferential tax rate of 12.5% for the years 2014, 2015 and 2016. | ||||||||||||
The tax rates, which were used to calculate the tax provision based on the Group’s interpretation of the EIT Law, are presented in the following table. | ||||||||||||
PRC entities | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||
CMR Web | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Hongcheng Liye | 15 | % | 15 | % | 25 | % | 25 | % | 25 | % | ||
Hongcheng Education | 15 | % | 15 | % | 25 | % | 25 | % | 25 | % | ||
ZhongNongda Network | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Beiyuda | 7.5 | % | 7.5 | % | 15 | % | 15 | % | 15 | % | ||
Gotop Hongcheng | 7.5 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Hongcheng Technology | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Dongcai | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Chongda | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Zhejiang Hongcheng | 25 | % | 25 | % | 0 | % | 12.5 | % | 12.5 | % | ||
The current and deferred components of the income tax expense appearing in the consolidated statements of operation were as follows: | ||||||||||||
For the years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
RMB | RMB | RMB | ||||||||||
Current tax | 23,078 | 19,939 | 37,282 | |||||||||
Deferred tax (benefit) provision | (6,034 | ) | 6,488 | (9,493 | ) | |||||||
17,044 | 26,427 | 27,789 | ||||||||||
The principal components of the Group’s deferred income tax assets and liabilities were as follows: | ||||||||||||
As of December 31, | ||||||||||||
2012 | 2013 | |||||||||||
RMB | RMB | |||||||||||
Current deferred tax assets | ||||||||||||
Deferred revenues | 11,685 | 13,118 | ||||||||||
Total current deferred tax assets | 11,685 | 13,118 | ||||||||||
Less: valuation allowance on deferred tax assets | (2,114 | ) | (349 | ) | ||||||||
Total net current deferred tax assets | 9,571 | 12,769 | ||||||||||
Non-current deferred tax assets | ||||||||||||
Property and equipment | 339 | 482 | ||||||||||
Deferred revenues | 1,137 | 1,206 | ||||||||||
Net operating loss carry forwards | 11,753 | 7,489 | ||||||||||
Total non-current deferred tax assets | 13,229 | 9,117 | ||||||||||
Less: valuation allowance on deferred tax assets | (11,144 | ) | (5,591 | ) | ||||||||
Total net non-current deferred tax assets | 2,085 | 3,586 | ||||||||||
Non-current deferred tax liabilities | ||||||||||||
Property and equipment | 64 | 805 | ||||||||||
Acquired intangible assets | 7,117 | 7,874 | ||||||||||
Amount due from related party-non current | 6,292 | — | ||||||||||
Total deferred tax liabilities | 13,473 | 8,679 | ||||||||||
The Group operates through multiple PRC entities and the valuation allowances are considered separately for each PRC entity, as losses and deferred taxes from one PRC entity cannot be utilized by another entity. | ||||||||||||
The Group has net operating loss carryforwards of RMB54,037 from its PRC entities as of December 31, 2013 that will expire on various dates between December 31, 2014 and December 31, 2018. | ||||||||||||
As of December 31, 2013, a valuation allowance of RMB5,940 was provided against deferred tax assets including those related to deferred revenue and net operating loss carryforwards of certain of the Group’s PRC entities due to the Group’s determination that it is more likely than not that the deferred tax assets related to such entities will not be realized. Adjustments will be made to the valuation allowance if events occur in the future that indicate changes in the amount of deferred tax assets that may be realized. | ||||||||||||
Reconciliation between total income tax expense and the amount computed by applying the statutory income tax rate to income before income taxes was as follows: | ||||||||||||
For the years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
% | % | % | ||||||||||
Statutory rate | 25 | 25 | 25 | |||||||||
Tax holiday and preferential tax rates | (18 | ) | (14 | ) | (12 | ) | ||||||
Effect on tax rates in different tax jurisdiction | 5 | 3 | 5 | |||||||||
Expenses non-deductible for tax purposes | — | 7 | 8 | |||||||||
Changes in valuation allowance | 8 | — | (6 | ) | ||||||||
Increase (decrease) in unrecognized tax benefit | 3 | 3 | 2 | |||||||||
Effective tax rates | 23 | 24 | 22 | |||||||||
If the tax holiday and preferential tax rates granted to the Group had not been available, provisions for income tax expense would have increased by RMB10,418, RMB15,829 and RMB15,362 for the years ended December 31, 2011, 2012 and 2013, respectively. The basic net income per share attributable to ChinaEdu Corporation would have been decreased by RMB0.21, RMB0.33 and RMB0.54 for the years ended December 31, 2011, 2012 and 2013, respectively. And the diluted net income per share attributable to ChinaEdu Corporation would have been decreased by RMB0.20, RMB0.31 and RMB0.48 for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||||||
The Group’s unrecognized tax benefit mainly relates to interest income accrued for intercompany balances and rental income from certain entities within the Group. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefit was as follows: | ||||||||||||
RMB | ||||||||||||
Balance at January 1, 2012 | 6,089 | |||||||||||
Additions based on tax positions related to the current year | 2,221 | |||||||||||
Other - interest and penalty | 485 | |||||||||||
Balance at December 31, 2012 | 8,795 | |||||||||||
Additions based on tax positions related to the current year | 1,372 | |||||||||||
Other - interest and penalty | 706 | |||||||||||
Balance at December 31, 2013 | 10,873 | |||||||||||
The Group recognizes interest and penalty accrued related to unrecognized tax benefits in income tax expenses. | ||||||||||||
The Group does not anticipate any significant change on its uncertain tax position within 12 months of December 31, 2013. | ||||||||||||
Uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties occurs within the PRC. On April 22, 2009, the State Administration of Taxation (the ‘‘SAT’’) issued the Notice Regarding the Determination of Chinese-Controlled Offshore Incorporated Enterprises as PRC Tax Resident Enterprises on the Basis of De Facto Management Bodies, or Circular 82, which provides certain specific criteria for determining whether the ‘‘de facto management body’’ of a Chinese-controlled offshore-incorporated enterprise is located in China. In addition, on August 3, 2011, the SAT issued a bulletin to make clarification in the areas of resident status determination, post-determination administration, as well as competent tax authorities. The Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. However, if the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a rate of 25%. | ||||||||||||
If any entity within the Group that is outside the PRC were to be a non-resident for PRC tax purposes, dividends paid to it out of profits earned after January 1, 2008 would be subject to a withholding tax at a rate of 10%, subject to reduction by an applicable tax treaty with the PRC. | ||||||||||||
As of December 31, 2013, the Company’s subsidiaries located in the PRC recorded aggregate accumulated earning of approximately RMB173,749. Since the Group has decided to reinvest those profits for future development, no provision has been made for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to the Group. Accordingly, no deferred tax liability has been accrued for the Chinese dividend withholding taxes that would be payable upon the distribution of those amounts to the Group as of December 31, 2013. | ||||||||||||
Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary differences attributable to the excess of carrying amount over tax basis. The Group has not recorded any such deferred tax liability attributable to the financial interest in its VIE because the VIE was in an accumulated loss position as of December 31, 2013. | ||||||||||||
In accordance with relevant PRC tax administration laws, tax years from 2008 to 2013 of the Group’s PRC subsidiaries, the VIE and VIE’s subsidiaries remain subject to tax audits as of December 31, 2013, at the tax authorities’ discretion. |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
NONCONTROLLING INTEREST | ' | |||||||
NONCONTROLLING INTEREST | ' | |||||||
16. NONCONTROLLING INTEREST | ||||||||
The Group computed net income attributable to noncontrolling interests (“NCI”) for each less-than-wholly-owned subsidiary as the net income or loss of that subsidiary multiplied by the ownership percentage held by NCI. The total net income generated by the Group’s less-than-wholly-owned subsidiaries was RMB97,376, RMB108,998, and RMB119,430 for the years ended December 31, 2011, 2012 and 2013, respectively. The net income attributed to NCI was RMB39,752, RMB45,338, and RMB49,500, representing 40.8%, 41.6%, and 41.4% of net income generated by the Group’s less-than-wholly-owned subsidiaries and 70.3%, 54.4%, 49.5% of the Group’s consolidated net income for the years ended December 31, 2011, 2012 and 2013, respectively. | ||||||||
For the years ended December 31 | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Balance at January | 133,485 | 167,253 | 196,911 | |||||
Net income (i) | 39,752 | 45,338 | 49,500 | |||||
Capital injection by noncontrolling shareholders(ii) | 2,960 | — | — | |||||
Foreign currency translation adjustments | 6,268 | 2,498 | 5,037 | |||||
Dividend to noncontrolling shareholders | (15,212 | ) | (17,321 | ) | (25,009 | ) | ||
Disposal of the subsidiaries (iii) | — | (857 | ) | — | ||||
Balance at December 31 | 167,253 | 196,911 | 226,439 | |||||
(i) The Group computed net income attributable to noncontrolling interests for each less-than-wholly-owned subsidiary as the net income or loss of that subsidiary multiplied by the ownership percentage held by NCI. | ||||||||
(ii) Represented the capital contributions from the noncontrolling shareholders, which are in proportion to their ownership percentages in the respective subsidiaries. | ||||||||
(iii) Represented the disposal of noncontrolling interests in Guangzhou Hongcheng and Guangxi Hongcheng in 2012. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
NET INCOME PER SHARE | ' | |||||||
NET INCOME PER SHARE | ' | |||||||
17. NET INCOME PER SHARE | ||||||||
The following table sets forth the computation of basic and diluted net income per share for the years indicated: | ||||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net income attributable to ChinaEdu Corporation (numerator) | 16,821 | 37,971 | 50,498 | |||||
Shares (denominator): | ||||||||
Weighted average ordinary shares outstanding used in computing basic net income per share | 47,453,930 | 47,523,375 | 28,250,473 | |||||
Incremental weighted average ordinary shares from assumed conversions of share option and RSUs using treasury stock method | 3,215,299 | 2,963,858 | 3,627,443 | |||||
Weighted average ordinary shares outstanding used in computing diluted net income per share | 50,669,229 | 50,487,233 | 31,877,916 | |||||
Net income per share attributable to ChinaEdu Corporation-basic | 0.35 | 0.8 | 1.79 | |||||
Net income per share attributable to ChinaEdu Corporation-diluted | 0.33 | 0.75 | 1.58 | |||||
Ordinary share equivalents of options and RSUs are calculated using the treasury stock method. Under the treasury stock method, the proceeds from the assumed conversion of options and warrants are used to repurchase outstanding ordinary shares using the average fair value for the period. |
SHARE_REPURCHASES
SHARE REPURCHASES | 12 Months Ended |
Dec. 31, 2013 | |
SHARE REPURCHASES | ' |
SHARE REPURCHASES | ' |
18. SHARE REPURCHASES | |
In April 2010, the Company approved a share repurchase plan to repurchase up to US$3 million of the outstanding ADSs from time to time through May 1, 2012. Pursuant to this plan, the Company repurchased 852,144 ordinary shares in open market transactions conducted between June and November 2010 for a cash consideration of RMB13,262 (US$1,996), and all the repurchased shares were cancelled. The repurchases were made at an average price of US$2.34 per ordinary share (US$7.03 per ADS). In 2011, the Company repurchased an aggregate of 590,205 ordinary shares in open market transactions conducted between May and December 2011 for a cash consideration of RMB8,243(US$1,274), and all the repurchased shares were cancelled. The repurchases were made at an average price of US$2.16 per ordinary share (US$6.48 per ADS). | |
In May 2011, the Company approved share repurchase plan to repurchase up to $10 million of the outstanding ADSs from time to time though May 1, 2013. Pursuant to this plan, the Company repurchased an aggregate of 376,761 ordinary shares in open market transactions conducted between June and December 2012 for a cash consideration of RMB4,574 (US$723). and all the repurchased shares were cancelled. The purchases were made at an average price of US$1.83 per ordinary share (US$5.48 per ADS). | |
In December 2012, the Company approved a share repurchase plan to repurchase up $40 million of the outstanding ADSs from time to time and no expiry date was stipulated for the repurchase. | |
During January and July 2013, the Company repurchased an aggregate of 23,876,175 ordinary shares mainly under the private negotiated repurchase agreements for a cash consideration of RMB285,603 (US$45,955), and 23,624,376 ordinary shares repurchased were cancelled. 251,799 ordinary shares repurchased by the Company were accounted for at cost of RMB3,336(US$551) as treasury stock. The purchases were made at an average price of US$1.92 per ordinary share (US$5.77 per ADS). |
MAINLAND_CHINA_CONTRIBUTION_PL
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Dec. 31, 2013 | |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | ' |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | ' |
19. MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | |
Full-time employees of the Group in the PRC participate in a government-mandated defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. Total provisions for such employee benefits were RMB35,384, RMB36,039 and RMB38,428 for the years ended December 31, 2011, 2012 and 2013, respectively. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||
20. FAIR VALUE MEASUREMENTS | ||||||||||
Measured on recurring basis | ||||||||||
The Group’s financial assets measured at fair value on a recurring basis as of December 31, 2012 and 2013 consists of available-for-sale securities as set out in Note 5 based on level 1 input because the Group used the quoted prices for identical instruments traded in active markets to value the investments. | ||||||||||
The following table summarizes the Group’s financial assets measured and recorded at fair value on recurring basis as of December 31, 2012, and 2013, respectively: | ||||||||||
Quoted price in | Significant | |||||||||
active markets | other | Significant | ||||||||
for identical | observable | unobservable | ||||||||
investments | inputs | inputs | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||
RMB | RMB | RMB | RMB | |||||||
As of December 31, 2012 | ||||||||||
Assets: | ||||||||||
Available-for-sale investments | 15,575 | — | — | 15,575 | ||||||
Total assets at fair value | 15,575 | — | — | 15,575 | ||||||
As of December 31, 2013 | ||||||||||
Assets: | ||||||||||
Available-for-sale investments | 7,127 | — | — | 7,127 | ||||||
Total assets at fair value | 7,127 | — | — | 7,127 | ||||||
Measured at fair value on a nonrecurring basis | ||||||||||
The Group measured certain intangible assets at their fair value on a nonrecurring basis, resulting an impairment loss of RMB5,901 recognized in 2012, as set out in Note 9. The Group determined the fair values of intangible assets based on a discounted cash flow model (e.g., excess earning method) using key assumptions including revenue growth rates and discount rates. |
COMMITMENTS
COMMITMENTS | 12 Months Ended | |||
Dec. 31, 2013 | ||||
COMMITMENTS | ' | |||
COMMITMENTS | ' | |||
21. COMMITMENTS | ||||
(a) Pursuant to a contract signed between Hongcheng Education and the Fourth Middle School of Anqing for the use of the school’s education resources, Hongcheng Education has committed to pay a royalty fee of RMB650 per annum from 2005 to 2007, RMB1,200 per annum from 2008 to 2010, and RMB1,200 per annum from 2011 to 2024. The aggregate fees committed through 2024 were recognized as expenses on a straight-line basis, and the difference between the amount paid and the amount recognized is reported as amount due to related parties. For the years ended December 31, 2011, 2012 and 2013, the amounts reported as expenses were RMB1,088 during each period. The amounts recorded as deferred commitment fees included in accrued expenses and other current liabilities as of December 31, 2012 and 2013 were RMB1,350 and RMB1,238, respectively. | ||||
(b) The Group leases certain office premises under non-cancelable operating leases through 2016. Rental expenses under operating leases for 2011, 2012, and 2013 were RMB14,858, RMB18,091 and RMB15,960 respectively. | ||||
Future minimum lease payments under non-cancelable operating leases agreements are as follows: | ||||
Years ending December 31 | RMB | |||
2014 | 9,075 | |||
2015 | 4,355 | |||
2016 | 3,444 | |||
2017 | 2,002 | |||
2018 and thereafter | 1,600 | |||
20,476 | ||||
(c) As of December 31, 2013, the Group had commitments totaling RMB65,827 for the expansion of the schools in Anqing, Pingdingshan and Jingzhou. As of December 31, 2013, the remaining portion of capital commitment to the Jingzhou School for its expansion was RMB64,752, which included capital commitment for the on-going construction in progress of RMB5,572. Since the construction of Jingzhou School is delayed, the Group is unable to make reasonable estimates regarding the timing of payment of capital commitments for Jingzhou School. The capital commitments for the on-going construction in progress of Anqing and Pingdingshan schools totaling RMB1,075 as of December 31, 2013 are expected to be paid within 2014. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||
22. SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||
The Group has been organized with four business segments: online degree programs, online tutoring programs, private primary and secondary schools and international and elite curriculum programs. | ||||||||
The Group’s chief operating decision maker is its chief executive officer. Segment information provided to the chief operating decision maker is prepared using US GAAP. | ||||||||
The following sets forth the relevant information for the Group’s operating segments: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Assets | ||||||||
Online degree programs | 937,541 | 1,018,814 | ||||||
Online tutoring programs | 49,980 | 64,138 | ||||||
Private primary and secondary schools | 150,723 | 148,576 | ||||||
International and elite curriculum programs | 23,132 | 19,996 | ||||||
Corporate assets | 80,877 | 89,246 | ||||||
Total assets | 1,242,253 | 1,340,770 | ||||||
Liabilities | ||||||||
Online degree programs | 184,190 | 186,491 | ||||||
Online tutoring programs | 57,188 | 62,039 | ||||||
Private primary and secondary schools | 112,008 | 103,552 | ||||||
International and elite curriculum programs | 38,081 | 37,505 | ||||||
Corporate liabilities | 3,684 | 288,542 | ||||||
Total liabilities | 395,151 | 678,129 | ||||||
The operating results of each segment are presented in the following table. | ||||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | ||||||||
Online degree programs | 347,107 | 393,343 | 438,375 | |||||
Online tutoring programs | 25,755 | 25,266 | 31,312 | |||||
Private primary and secondary schools | 49,653 | 59,937 | 68,747 | |||||
International and elite curriculum programs | 13,344 | 9,776 | 9,506 | |||||
Total net revenue | 435,859 | 488,322 | 547,940 | |||||
Cost of revenue | ||||||||
Online degree programs | 124,242 | 137,689 | 147,597 | |||||
Online tutoring programs | 9,107 | 11,861 | 10,829 | |||||
Private primary and secondary schools | 36,127 | 42,713 | 46,945 | |||||
International and elite curriculum programs | 16,128 | 9,846 | 5,628 | |||||
Total cost of revenue | 185,604 | 202,109 | 210,999 | |||||
Gross profit (loss) | ||||||||
Online degree programs | 222,865 | 255,654 | 290,778 | |||||
Online tutoring programs | 16,648 | 13,405 | 20,483 | |||||
Private primary and secondary schools | 13,526 | 17,224 | 21,802 | |||||
International and elite curriculum programs | (2,784 | ) | (70 | ) | 3,878 | |||
Total gross profit | 250,255 | 286,213 | 336,941 | |||||
The Group does not allocate operating expenses to individual segments when making decisions about allocating resources to such segments and assessing their performance. The Group primarily operates in the PRC. All of the Group’s long-lived assets are located in the PRC. | ||||||||
The detail of net revenue of the Group was as follows: | ||||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Third parties: | ||||||||
Online degree programs | 97,284 | 121,541 | 146,816 | |||||
Online tutoring programs | 25,755 | 25,266 | 31,312 | |||||
Private primary and secondary schools | 49,653 | 59,937 | 68,747 | |||||
International and elite curriculum programs | 13,344 | 9,776 | 9,506 | |||||
186,036 | 216,520 | 256,381 | ||||||
Related parties: | ||||||||
Online education technical services, consulting services and recruiting services | 249,823 | 271,802 | 291,559 | |||||
249,823 | 271,802 | 291,559 | ||||||
435,859 | 488,322 | 547,940 | ||||||
The carrying amounts of goodwill and acquired intangible assets by operating segments were as follows: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Acquired intangible assets, net: | ||||||||
Online degree programs | 43,798 | 41,439 | ||||||
Online tutoring programs | 4,324 | 4,315 | ||||||
Private primary and secondary schools | 2,442 | 2,189 | ||||||
International and elite curriculum programs | 3,935 | 3,473 | ||||||
54,499 | 51,416 | |||||||
Goodwill: | ||||||||
Online degree programs | 17,960 | 17,960 | ||||||
Online tutoring programs | 20,798 | 20,798 | ||||||
Private primary and secondary schools | — | — | ||||||
International and elite curriculum programs | 4,497 | 4,497 | ||||||
43,255 | 43,255 |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
23. RELATED PARTY TRANSACTIONS | ||||||||
The noncontrolling shareholders of a number of the Company’s subsidiaries are universities that also purchase online education technical, consulting and recruiting services from the Group. These universities are considered related parties of the Group. Revenue generated from services provided to these universities was as follows: | ||||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Online education technical and consulting services: | ||||||||
Online Education School of Dongbei University of Finance and Economics | 46,459 | 54,576 | 62,202 | |||||
Online Education School of Renmin University of China | 56,758 | 47,389 | 47,138 | |||||
Online Education School of Chongqing University | 57,175 | 70,149 | 86,028 | |||||
Online Education School of China Agricultural University | 49,068 | 49,394 | 44,231 | |||||
Online Education School of Beijing Language and Culture University | 33,531 | 39,042 | 39,712 | |||||
Online Education School of Central University of Finance and Economics | 2,834 | 2,284 | 3,467 | |||||
Online Education School of Guangxi Radio and TV University | 251 | 1,585 | 340 | |||||
Online Education School of Fujian Radio and TV University | 3,747 | 5,191 | 5,792 | |||||
Zhejiang Normal University | — | 2,192 | 2,505 | |||||
Shanghai Normal University | — | — | 144 | |||||
Total | 249,823 | 271,802 | 291,559 | |||||
Deferred revenues associated with services provided to related parties were as follows: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Online Education School of Dongbei University of Finance and Economics | 14,616 | 11,692 | ||||||
Online Education School of Renmin University of China | 11,431 | 12,133 | ||||||
Online Education School of Chongqing University | 18,385 | 19,506 | ||||||
Online Education School of China Agricultural University | 11,018 | 13,738 | ||||||
Online Education School of Beijing Language and Culture University | 10,005 | 10,392 | ||||||
Online Education School of Guangxi Radio and TV University | 76 | 55 | ||||||
Online Education School of Fujian Radio and TV University | 150 | 193 | ||||||
65,681 | 67,709 | |||||||
As of December 31, 2012 and 2013, the following balances were due from related parties: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Schools owned by the noncontrolling shareholders of the Company’s subsidiaries: | ||||||||
Online Education School of Dongbei University of Finance and Economics (i) | 31,272 | 30,910 | ||||||
Online Education School of Renmin University of China (i) | 71,361 | 46,081 | ||||||
Online Education School of Chongqing University (i)(ii) | 107,396 | 143,059 | ||||||
Online Education School of China Agricultural University of China (i) | 72,768 | 102,778 | ||||||
Online Education School of Beijing Language and Culture University (i) | 14,133 | 13,418 | ||||||
Online Education School of Guangxi Radio and TV University (i) | 325 | 521 | ||||||
Online Education School of Fujian Radio and TV University (i) | 2,920 | 5,350 | ||||||
Zhejiang Normal University | 1,988 | 1,516 | ||||||
Shanghai Normal University | — | 117 | ||||||
Online Education School of Central University of Finance and Economics (i) | — | 220 | ||||||
302,163 | 343,970 | |||||||
(i) The fees for services provided to the online schools are collected on a periodic basis. The excess amount of revenue recognized over the cash collection is recorded as amounts due from related parties. | ||||||||
(ii) The amounts due from Online Education School of Chongqing University includes RMB 41,979 of amounts due from related party-non-current as of December 31, 2012. | ||||||||
All of the amounts due from related parties are unsecured and non-interest bearing. The Group expects the amounts to be received within the next 12 months. | ||||||||
As of December 31, 2012 and 2013, the following balances were due to related parties: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Entity managed by management of the Group: | ||||||||
The Fourth Middle School of Anqing (ii) | 1,926 | 1,853 | ||||||
Parent company of a noncontrolling shareholder: | ||||||||
Rendashiji Technology Development Co., Ltd.(iii) | 522 | 8,199 | ||||||
Schools owned by the noncontrolling shareholders of the Company’s subsidiaries: | ||||||||
Online Education School of Dongbei University of Finance and Economics (i) | 32,018 | 39,259 | ||||||
Online Education School of Chongqing University (i) | 268 | 1,257 | ||||||
Online Education School of Central University of Finance and Economics (i) | 226 | 220 | ||||||
Online Education School of China Agricultural University of China (i) | 355 | 321 | ||||||
Online Education School of Guangxi Radio and TV University (i) | — | 40 | ||||||
Online Education School of Fujian Radio and TV University (i) | 46 | 47 | ||||||
Online Education School of Beijing Language and Culture University (i) | — | 728 | ||||||
Zhejiang Normal University (i) | 146 | 175 | ||||||
35,507 | 52,099 | |||||||
(i) The amounts represented cash collected on behalf of the related parties. | ||||||||
(ii) The amount primarily represents royalty fees to be paid. | ||||||||
(iii) The amount represents dividend declared but not paid as of December 31, 2013. | ||||||||
All the amounts due to related parties are non-interest bearing and unsecured. The Group expects the amounts to be repaid within one year. |
STATUTORY_RESERVES
STATUTORY RESERVES | 12 Months Ended |
Dec. 31, 2013 | |
STATUTORY RESERVES | ' |
STATUTORY RESERVES | ' |
24. STATUTORY RESERVES | |
Prior to payment of dividends, pursuant to the PRC laws and regulations, enterprises incorporated in the PRC must make appropriations from after-tax profit to non-distributable reserve funds as determined by the Board of Directors of each company. These reserves include (i) general reserve, (ii) enterprise expansion reserve, (iii) a staff bonus and welfare reserve, and (iv) development fund. | |
Subject to certain cumulative limits, the general reserve requires annual appropriations of 10% of after-tax profits as determined under PRC laws and regulations at each year-end until the balance reaches 50% of the PRC entity registered capital; the other reserve appropriations are at the Group’s discretion. These reserves can only be used for specific purposes of enterprise expansion and are not distributable as cash dividends. | |
PRC laws and regulations require private schools that require reasonable returns to make annual appropriations of 25% of after-tax income before payments of dividend to a fund to be used for the construction or maintenance of the school or procurement or upgrading of educational equipment. For private schools that do not require reasonable returns, this amount should be equivalent to no less than 25% of the annual increase of its net assets as determined in accordance with generally accepted accounting principles in the PRC. | |
For the years ended December 31, 2011, 2012 and 2013, the Group’s entities in the PRC made appropriations to the general reserves and development fund of RMB7,043, RMB4,341 and RMB5,094, respectively. |
RESTRICTED_NET_ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2013 | |
RESTRICTED NET ASSETS | ' |
RESTRICTED NET ASSETS | ' |
25. RESTRICTED NET ASSETS | |
The Group’s restricted net assets include the paid-in-capital and statutory reserves of the Group’s PRC schools and entities. Relevant PRC statutory laws and regulations restrict the payments of dividends by the Group’s PRC schools and entities from their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In addition, general reserve (see Note 24) requiring annual appropriations of 10% of after-tax profit and development fund (see Note 24) requiring annual appropriations of 25% of after-tax profit or 25% of the annual increase of net assets should be set aside prior to the payment of dividends. | |
As a result of these PRC laws and regulations, the Group’s entities in the PRC are restricted in their ability to transfer a portion of their net assets to the Group. As of December 31, 2012, and 2013, the amounts of restricted net assets were RMB509,421 and RMB524,148, respectively. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
26. SUBSEQUENT EVENTS | |
On December 31, 2013, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”)with ChinaEdu Holdings Limited (“Holdings”) and ChinaEdu Merger Sub Limited (“Merger Sub”) pursuant to which Merger Sub will be merged with and into the Company (the “Merger”) and cease to exist, with the Company continuing as the surviving corporation and becoming a wholly-owned subsidiary of Holdings. | |
The Merger Agreement was approved and authorized by the requisite vote of the Company’s shareholders on the extraordinary general meeting held on April 18, 2014 and the Merger was declared effective on April 23, 2013. Each ordinary share of the Company, par value $0.01 per share (“Share”) issued and outstanding immediately prior to the effective time of the Merger was cancelled and cease to exist and was converted into and exchanged for the right to receive $2.33 and each of the Company’s ADS, each representing three Shares, was cancelled in exchange for the right to receive $7.00, in each case, in cash, without interest and net of any applicable withholding taxes. The total cash consideration to close the Merger was $30.7 million. On April 23, 2014, Holdings drew down the full amount of USD30.0 million to pay out the above merger considerations from the facility agreement that it entered into with China Merchants Bank Co., Ltd., Hong Kong Branch. The remainder $0.7 million of the merger consideration was funded by the Company’s own cash. | |
On April 23, 2014, the effective time of the Merger, each option to purchase Shares (each, a “Company Option”) granted pursuant to the Company Plan that was then outstanding and unexercised, whether or not vested, were cancelled and converted into and exchanged for an option to acquire one fully paid and non-assessable ordinary share, par value $0.001 per share, of Holdings (each, a “Holdings Option”). Each Holdings Option has an exercise or purchase price equal to the exercise or purchase price of the corresponding Company Option. Each Holdings Option retains the same grant date, the same vesting or exercise schedule, the same term and expiration date and substantially the same other material terms and conditions as each Company Option. | |
On April 23, 2014, each restricted stock unit granted pursuant to the Company Plan (each, a “Company RSU “) was cancelled and converted into and exchanged for a restricted stock unit of Holdings (each, a “Holdings RSU”). Each Holdings RSU is subject to the same terms and conditions as each Company RSU. |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | |||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | |||||||||||||||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||||||||||||
BALANCE SHEETS | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||
2012 | 2013 | 2013 | ||||||||||||||||||||
RMB | RMB | US$ | ||||||||||||||||||||
Assets | ||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||
Cash and cash equivalents | 137 | 3821 | 631 | |||||||||||||||||||
Short-term investments | 15,575 | 7,127 | 1,177 | |||||||||||||||||||
Prepaid expenses and other current assets | 1,079 | 631 | 104 | |||||||||||||||||||
Amounts due from related parties | 66,167 | 79,649 | 13,157 | |||||||||||||||||||
Total current assets | 82,958 | 91,228 | 15,069 | |||||||||||||||||||
Investments in subsidiaries and VIE | 572,995 | 635,496 | 104,976 | |||||||||||||||||||
Total assets | 655,953 | 726,724 | 120,045 | |||||||||||||||||||
Liabilities and Equity | ||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||
Accrued expenses and other current liabilities | 1,195 | 483 | 79 | |||||||||||||||||||
Amount due to related parties | 1,922 | 68,061 | 11,243 | |||||||||||||||||||
Short-term debt | — | 4,056 | 670 | |||||||||||||||||||
Total current liabilities | 3,117 | 72,600 | 11,992 | |||||||||||||||||||
Deferred revenue | 2,645 | 2,059 | 340 | |||||||||||||||||||
Long-term debt | — | 215,863 | 35,658 | |||||||||||||||||||
Total liabilities | 5,762 | 290,522 | 47,990 | |||||||||||||||||||
Equity: | ||||||||||||||||||||||
Ordinary shares (RMB0.08 (US$0.01) par value; 100,000,000 shares authorized; 53,428,219 and 47,676,331 shares issued and outstanding, respectively as of December 31, 2012; 30,883,842 and 25,673,185 shares issued and outstanding, respectively as of December 31, 2013) | 4,070 | 2,715 | 448 | |||||||||||||||||||
Additional paid-in capital | 682,239 | 422,322 | 69,763 | |||||||||||||||||||
Treasury stock | — | (3,336 | ) | (551 | ) | |||||||||||||||||
Accumulated deficits | (5,224 | ) | 45,274 | 7,479 | ||||||||||||||||||
Accumulated other comprehensive loss | (30,894 | ) | (30,773 | ) | (5,084 | ) | ||||||||||||||||
Total equity | 650,191 | 436,202 | 72,055 | |||||||||||||||||||
Total liabilities and equity | 655,953 | 726,724 | 120,045 | |||||||||||||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2011 | 2012 | 2013 | 2013 | |||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
General and administrative (including share-based compensation of RMB6,483, RMB8,258, and RMB9,887 for 2011, 2012 and 2013, respectively) | (10,775 | ) | (8,881 | ) | (22,205 | ) | (3,668 | ) | ||||||||||||||
Loss from operations | (10,775 | ) | (8,881 | ) | (22,205 | ) | (3,668 | ) | ||||||||||||||
Other income | 547 | 534 | 512 | 85 | ||||||||||||||||||
Exchange loss | — | — | (2,728 | ) | (451 | ) | ||||||||||||||||
Interest income | 1,176 | 892 | 503 | 82 | ||||||||||||||||||
Interest expense | — | — | (9,739 | ) | (1,609 | ) | ||||||||||||||||
Investment (loss) income | (201 | ) | 226 | 496 | 82 | |||||||||||||||||
Equity in earnings of subsidiaries and VIE | 26,074 | 45,200 | 85,450 | 14,115 | ||||||||||||||||||
Provision for income taxes - current | — | (1,791 | ) | (296 | ) | |||||||||||||||||
Net income | 16,821 | 37,971 | 50,498 | 8,340 | ||||||||||||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||||||||||||
STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2011 | 2012 | 2013 | 2013 | |||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||
Net income | 16,821 | 37,971 | 50,498 | 8,340 | ||||||||||||||||||
Other comprehensive income(losses), net of taxes of nil: | ||||||||||||||||||||||
Foreign currency translation adjustments | (7,019 | ) | (2,585 | ) | 1,066 | 176 | ||||||||||||||||
Change in fair value of available-for-sale investments | 187 | 1,247 | (945 | ) | (156 | ) | ||||||||||||||||
Comprehensive income attributable to ChinaEdu Corporation shareholders | 9,989 | 36,633 | 50,619 | 8,360 | ||||||||||||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF CHANGES IN EQUITY | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||
Additional | other | |||||||||||||||||||||
Ordinary shares | paid-in | Accumulated | comprehensive | |||||||||||||||||||
Outstanding shares | Amount | capital | Treasury stock | deficits | income (loss) | Total | ||||||||||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||||||||||||
Balance at January 1, 2011 | 47,689,306 | 4,071 | 674,648 | — | (60,016 | ) | (22,724 | ) | 595,979 | |||||||||||||
Repurchase and cancellation of ordinary shares | (590,205 | ) | (38 | ) | (8,205 | ) | — | — | — | (8,243 | ) | |||||||||||
Exercise of share options | 116,787 | 8 | 590 | — | — | — | 598 | |||||||||||||||
Amortization of share-based compensation | — | — | 6,483 | — | — | — | 6,483 | |||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | (7,019 | ) | (7,019 | ) | |||||||||||||
Change in fair value of available-for-sale | — | — | — | — | — | 187 | 187 | |||||||||||||||
Net income | — | — | — | — | 16,821 | — | 16,821 | |||||||||||||||
Balance at December 31, 2011 | 47,215,888 | 4,041 | 673,516 | — | (43,195 | ) | (29,556 | ) | 604,806 | |||||||||||||
Repurchase and cancellation of ordinary shares | (376,761 | ) | (24 | ) | (4,550 | ) | — | — | — | (4,574 | ) | |||||||||||
Exercise of share options | 837,204 | 53 | 5,015 | — | — | — | 5,068 | |||||||||||||||
Amortization of share-based compensation | — | — | 8,258 | — | — | — | 8,258 | |||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | (2,585 | ) | (2,585 | ) | |||||||||||||
Change in fair value of available-for-sale | — | — | — | — | — | 1,247 | 1,247 | |||||||||||||||
Net income | — | — | — | — | 37,971 | — | 37,971 | |||||||||||||||
Balance at December 31, 2012 | 47,676,331 | 4,070 | 682,239 | — | (5,224 | ) | (30,894 | ) | 650,191 | |||||||||||||
Repurchase and cancellation of ordinary shares | (23,876,175 | ) | (1,469 | ) | (280,798 | ) | (3,336 | ) | — | — | (285,603 | ) | ||||||||||
Exercise of share options | 1,873,029 | 114 | 10,994 | — | — | — | 11,108 | |||||||||||||||
Amortization of share-based compensation | — | — | 9,887 | — | — | — | 9,887 | |||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | 1,066 | 1,066 | |||||||||||||||
Change in fair value of available-for-sale | — | — | — | — | — | (945 | ) | (945 | ) | |||||||||||||
Net income | — | — | — | — | 50,498 | — | 50,498 | |||||||||||||||
Balance at December 31, 2013 | 25,673,185 | 2,715 | 422,322 | (3336 | ) | 45,274 | (30,773 | ) | 436,202 | |||||||||||||
$ | 448 | $ | 69,763 | $ | (551 | ) | $ | 7,479 | $ | (5,084 | ) | $ | 72,055 | |||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
For the years ended December 31, | ||||||||||||||||||||||
2011 | 2012 | 2013 | 2013 | |||||||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||||
Net income | 16,821 | 37,971 | 50,498 | 8,340 | ||||||||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||||||||
Share based compensation | 6,483 | 8,258 | 9,887 | 1,633 | ||||||||||||||||||
Investment (loss) income | 201 | (226 | ) | (496 | ) | (82 | ) | |||||||||||||||
Equity in earnings of subsidiaries and VIE | (26,074 | ) | (45,200 | ) | (85,450 | ) | (14,115 | ) | ||||||||||||||
Changes in assets and liabilities: | ||||||||||||||||||||||
Prepaid expenses and other current assets | 242 | (31 | ) | 669 | 111 | |||||||||||||||||
Amounts due from related parties | (1,574 | ) | (1,897 | ) | 2,564 | 424 | ||||||||||||||||
Accrued expense and other liabilities | 242 | (2,907 | ) | (766 | ) | (129 | ) | |||||||||||||||
Amount due to a related party | 16 | — | 72,012 | 11,896 | ||||||||||||||||||
Deferred revenue | (546 | ) | (529 | ) | (578 | ) | (95 | ) | ||||||||||||||
Net cash (used in) provided by operating activities | (4,189 | ) | (4,561 | ) | 48,340 | 7,983 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||||
Purchase of term deposits | — | — | (3,632 | ) | (600 | ) | ||||||||||||||||
Maturity of term deposits | — | — | 3,632 | 600 | ||||||||||||||||||
Proceeds from the sale of investment | 8,306 | 7,953 | 7,832 | 1,294 | ||||||||||||||||||
Purchase of investments | (2,556 | ) | (4,546 | ) | — | — | ||||||||||||||||
Net cash provided by investing activities | 5,750 | 3,407 | 7,832 | 1,294 | ||||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||||
Repurchase and cancellation of ordinary shares | (7,437 | ) | (4,574 | ) | (285,603 | ) | (47,178 | ) | ||||||||||||||
Proceeds from exercise of share options | 598 | 5,068 | 11,108 | 1,835 | ||||||||||||||||||
Finance costs relates to loans | — | — | (3,822 | ) | (631 | ) | ||||||||||||||||
Proceeds from borrowings of short-term debt | — | — | 68,410 | 11,301 | ||||||||||||||||||
Proceeds from borrowings of long-term debt | — | — | 380,261 | 62,815 | ||||||||||||||||||
Repayment of borrowings of short-term debt | — | — | (63,290 | ) | (10,455 | ) | ||||||||||||||||
Repayment of borrowings of long-term debt | — | — | (159,750 | ) | (26,389 | ) | ||||||||||||||||
Prepayment for shares repurchases | (168 | ) | — | — | — | |||||||||||||||||
Net cash provided by financing activities | (7,007 | ) | 494 | (52,686 | ) | (8,702 | ) | |||||||||||||||
Effect of exchange rate changes | 80 | 53 | 198 | 33 | ||||||||||||||||||
Net decrease in cash and cash equivalents | (5,366 | ) | (607 | ) | 3,684 | 608 | ||||||||||||||||
Cash and cash equivalents, beginning of year | 6,110 | 744 | 137 | 23 | ||||||||||||||||||
Cash and cash equivalents, end of year | 744 | 137 | 3,821 | 631 | ||||||||||||||||||
SCHEDULE I | ||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||||||||||||
(In thousands, except share-related data) | ||||||||||||||||||||||
1. BASIS FOR PREPARATION | ||||||||||||||||||||||
The condensed financial information of the Company has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements, except that the Company used the equity method to account for investments in its subsidiaries and VIE. | ||||||||||||||||||||||
2. INVESTMENTS IN SUBSIDIARIES AND VIE | ||||||||||||||||||||||
In its consolidated financial statements, the Parent Company consolidates the results of operations and assets and liabilities of its subsidiaries, VIE and VIE’s subsidiaries, and inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Parent Company’s stand-alone financial statements, its investments in subsidiaries, VIE and VIE’s subsidiaries are reported using the equity method of accounting as a single line item and the Parent Company’s share of income from its subsidiaries, VIE and VIE’s subsidiaries are reported as the single line item of equity in losses of subsidiaries and VIE. Ordinarily under the equity method, an investor in an equity method investee would cease to recognize its share of the losses of an investee once the carrying value of the investment has been reduced to nil absent an undertaking by the investor to provide continuing support and fund losses. For the purpose of this Schedule I, the Parent Company has continued to reflect its share, based on its proportionate interest, of the losses of a subsidiary or VIE regardless of the carrying value of the investment even though the Parent Company is not obligated to provide continuing support or fund losses. | ||||||||||||||||||||||
The Parent Company carried the investments in subsidiaries and VIE at RMB572,995 and RMB 635,496 as of December 31, 2012 and 2013, respectively. The Parent Company’s share of equity in income in subsidiaries and the VIE recognized for the years ended December 31, 2011, 2012 and 2013 was RMB26,074, RMB45,200 and RMB85,450, respectively. | ||||||||||||||||||||||
3. INCOME TAXES | ||||||||||||||||||||||
The Company is a Cayman Islands company, and therefore is not subject to income taxes for all the years presented. | ||||||||||||||||||||||
4. RELATED PARTY TRANSACTIONS | ||||||||||||||||||||||
The following represents related party balances as of December 31, 2012 and 2013: | ||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||||
RMB | RMB | |||||||||||||||||||||
Amounts due from related parties: | ||||||||||||||||||||||
Former director-Yang Xueshan (i) | 14,840 | 14,840 | ||||||||||||||||||||
Vice President-Xie Changqing (i) | 39,360 | 39,360 | ||||||||||||||||||||
CMR (ii) | 5,467 | 20,370 | ||||||||||||||||||||
Hongcheng Liye (iii) | 2,499 | 2,499 | ||||||||||||||||||||
BJ-BCIT (iv) | 1,817 | 1,822 | ||||||||||||||||||||
Hongcheng Technology (iii) | 2,087 | 655 | ||||||||||||||||||||
Others | 97 | 103 | ||||||||||||||||||||
66,167 | 79,649 | |||||||||||||||||||||
Amount due to related parties: | ||||||||||||||||||||||
Hongcheng Online (v) | — | 66,125 | ||||||||||||||||||||
WITT (vi) | 1,587 | 1,546 | ||||||||||||||||||||
Others | 335 | 390 | ||||||||||||||||||||
1,922 | 68,061 | |||||||||||||||||||||
(i) The amounts represent loans to the two nominee shareholders of Hongcheng Education. | ||||||||||||||||||||||
(ii) The amount represents the receivable of profit distribution from a subsidiary company. | ||||||||||||||||||||||
(iii) The amounts represent the service fee paid on behalf of a subsidiary company. | ||||||||||||||||||||||
(iv) The amounts represent the payment of students registration fee on behalf of a subsidiary company. | ||||||||||||||||||||||
(v) The amounts represent the payment of share repurchase made by a subsidiary on behalf of the Company. | ||||||||||||||||||||||
(vi) The amounts represent the expenses paid by a subsidiary company on behalf of the Company. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
Basis of presentation | ' | |||||||
Basis of presentation | ||||||||
The consolidated financial statements of the Group have been prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements of the Group are stated in Renminbi (“RMB”). The presentation of the amounts in United States dollar (“US$”) is included solely for the convenience of the reader and were converted at a rate of RMB 6.0537 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2013. Such translation should not be construed to be the amounts that would have been reported under US GAAP. | ||||||||
Basis of consolidation | ' | |||||||
Basis of consolidation | ||||||||
The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and its VIE’s subsidiaries. All inter-company transactions and balances have been eliminated upon consolidation. | ||||||||
Use of estimates | ' | |||||||
Use of estimates | ||||||||
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses in the financial statements and the accompanying notes. Significant accounting estimates reflected in the Group’s financial statements include the useful lives and impairment of property and equipment, and intangible assets with definite lives; valuation allowance for deferred tax assets; impairment of goodwill and other intangible assets with indefinite lives; and share-based compensation expense. Actual results could differ from these estimates. | ||||||||
Cash and cash equivalents | ' | |||||||
Cash and cash equivalents | ||||||||
Cash and cash equivalents consist of cash on hand and demand deposits which are unrestricted as to withdrawal or use, or have original maturities of three months or less when purchased. | ||||||||
Term deposits | ' | |||||||
Term deposits | ||||||||
Term deposits consist of deposits placed with financial institutions with original maturity terms of greater than three months but less than one year. | ||||||||
Short-term investments | ' | |||||||
Short-term investments | ||||||||
The Group’s short-term investments mainly comprise debt securities which are classified as available-for-sale or held-to-maturity investments. The available-for-sale investments are reported at fair values with the unrealized gains or losses recorded in accumulated other comprehensive income in shareholders’ equity. Short-term investments are classified as held-to-maturity when the Group has the positive intent and ability to hold the securities to maturity. All of the Group’s held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. | ||||||||
The Group reviews its available-for-sale short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the cost, and the Group’s intent and ability to hold the investment. OTTI is recognized as a loss in the income statement. | ||||||||
If there is OTTI on debt securities, the Group separates the amount of the OTTI into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings, which represents the difference between a security’s amortized cost basis and the discounted present value of expected future cash flows. The amount due to other factors is recognized in other comprehensive income if the entity neither intends to sell nor will not more likely than not be required to sell the security before recovery. The difference between the amortized cost basis and the cash flows expected to be collected is accreted as interest income. | ||||||||
In addition, the short-term investments as of December 31, 2012 include an equity method investment in a limited partnership which retired in 2013. Accounting policy for equity method investment is presented below. | ||||||||
Equity method investment | ' | |||||||
Equity method investment | ||||||||
Investee companies over which the Group has the ability to exercise significant influence, but does not have a controlling interest are accounted for using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee at between 20% and 50%, and other factors, such as representation on the investee’s Board of Directors, voting rights and the impact of commercial arrangements, are considered in determining whether the equity method of accounting is appropriate. | ||||||||
Investee companies in which the Group has equity interest over 50%, but the noncontrolling shareholders have substantive rights to participate in significant operating and financing decisions are accounted for using the equity method. | ||||||||
An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than-temporary. | ||||||||
Accounts receivable | ' | |||||||
Accounts receivable | ||||||||
Accounts receivable is recorded when it becomes due based on the service agreement, and primarily relates to the online education technical, consulting and recruiting services provided to certain university customers, and online tutoring services. | ||||||||
The Group determines its allowance by considering a number of factors, including the length of time the receivable is past due, the Group’s previous loss history, the counter party’s current ability to pay its obligation to the Group, and the condition of the general economy and the industry as a whole. The Group writes off accounts receivable when it becomes apparent based upon age or customer circumstances that such amounts will not be collected. | ||||||||
Fair value | ' | |||||||
Fair value | ||||||||
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. | ||||||||
Authoritative literature provides a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: | ||||||||
· Level 1 - inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. | ||||||||
· Level 2 - inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||
· Level 3 - inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The fair values are therefore determined using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques. | ||||||||
Land use rights | ' | |||||||
Land use rights | ||||||||
Land use rights are recorded at cost less accumulated amortization. Amortization is provided on a straight-line basis over the estimated useful lives, which is generally 50 years and represents the shorter of the estimated usage periods or the terms of the land use rights agreements. | ||||||||
Property and equipment, net | ' | |||||||
Property and equipment, net | ||||||||
Property and equipment are carried at cost less accumulated depreciation and amortization. Assets under construction are not depreciated until they are ready for their intended use. Depreciation and amortization is calculated on a straight-line basis over the following estimated useful lives: | ||||||||
Buildings | 20 years | |||||||
Furniture, fixtures and equipment | 3-5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | Shorter of the lease term or the | |||||||
estimated useful lives | ||||||||
Acquired intangible assets with definite lives, net | ' | |||||||
Acquired intangible assets with definite lives, net | ||||||||
Intangible assets, other than goodwill, resulting from the acquisitions of entities accounted for using the acquisition method of accounting are carried at cost less accumulated amortization and impairment. Amortization of acquired intangible assets is calculated on a straight-line basis over the shorter of the contractual terms or the expected useful lives of the acquired assets. The weighted average amortization periods by major intangible assets classes are as follows: | ||||||||
Service agreements with universities and high schools | 26 years | |||||||
Operating platforms used to provide online education service | 6 years | |||||||
Customer base | 4 years | |||||||
Online coursewares | 3 years | |||||||
Partnership with agencies | 5 years | |||||||
Exclusive partnership with universities | 16 years | |||||||
Operational right of private school | 22 years | |||||||
Partnership with local institutes | 7.2 years | |||||||
Acquired right to use trademark | 2.2 years | |||||||
Intangible assets-indefinite lives | ' | |||||||
Intangible assets-indefinite lives | ||||||||
If an intangible asset is determined to have an indefinite life, it should not be amortized until its useful life is determined to be no longer indefinite. An intangible asset that is not subject to amortization is tested for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. Such impairment test consists of comparing the fair values of assets with their carrying value amounts and an impairment loss is recognized if and when the carrying amounts exceed the fair values. The estimates of fair values of intangible assets not subject to amortization are determined using various discounted cash flow valuation methodologies. Significant assumptions are inherent in this process, including estimates of discount rates. | ||||||||
Impairment of long-lived assets and intangible assets with definite life | ' | |||||||
Impairment of long-lived assets and intangible assets with definite life | ||||||||
Long-lived assets, such as property and equipment and definite-lived intangible assets are stated at cost less accumulated depreciation or amortization. The Group evaluates the recoverability of long-lived assets, including intangible assets, with determinable useful lives whenever events or changes in circumstances indicate that a long-lived asset’s carrying amount may not be recoverable. The Group measures the carrying amount of long-lived asset against the estimated undiscounted future cash flows associated with it. Impairment exists when the sum of the expected future net cash flows is less than the carrying value of the asset being evaluated. Impairment loss is calculated as the amount by which the carrying value of the asset exceeds its fair value. Fair value is estimated based on various valuation techniques, including the discounted value of estimated future cash flows. The evaluation of asset impairment requires the Group to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. | ||||||||
Goodwill | ' | |||||||
Goodwill | ||||||||
The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. | ||||||||
Goodwill is not amortized but evaluated for impairment annually or more frequently if event and circumstances indicate that they might be impaired. The Group first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If it is more likely than not that the fair value of a reporting unit is less than its carrying amount, goodwill is then tested following a two-step process. The first step compares the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill is not considered to be impaired and the second step will not be required. If the carrying amount of a reporting unit exceeds its fair value, the second step compares the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill is determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities is the implied fair value of goodwill. An impairment loss is recognized for any excess in the carrying value of goodwill over the implied fair value of goodwill. | ||||||||
Treasury stock | ' | |||||||
Treasury stock | ||||||||
Treasury stock represents shares of the Company’s stock that have been issued, repurchased by the Company, and that have not been retired or canceled. These shares have no voting rights and are not entitled to receive dividends and excluded from the weighted average outstanding shares in calculation of net income per share. Treasury stock is recorded at cost. | ||||||||
Revenue recognition | ' | |||||||
Revenue recognition | ||||||||
The Group’s revenue is principally derived from the following: | ||||||||
(a) Online degree programs, which mainly provide: (i) online education technical and consulting services; and (ii) recruiting services and enrollment marketing services. | ||||||||
(i) Online education technical and consulting services | ||||||||
The Group’s primary business is to provide online education technical and consulting services to the online degree programs of leading Chinese universities. These services mainly include academic program development, technology services, and student support services. All these services are provided over the service period, therefore the related revenue is recognized ratably over the Six-month School Semester (the “Semester”) during which the Group provides the services. The Semesters generally begin in April and October of each calendar year. | ||||||||
(ii) Students recruiting services, online technical services and enrollment marketing services | ||||||||
The Group also provides students recruiting, online technical, enrollment marketing services through its learning centers network for collaborative universities in China, including those universities to which the Group provides online education technical and consulting services. The amount of service fees earned is computed as a percentage of tuition fees, which the Group collected from students on behalf of the universities, based on the agreements entered into with the universities. | ||||||||
Service fees are initially recorded as deferred revenue and are recognized as revenue ratably over the Semester during which the Group provides the services. | ||||||||
(b) Online tutoring programs | ||||||||
The Group offers online interactive tutoring services to the students of primary and secondary schools through prepaid cards. These services allow the students to access the online education services over a fixed period of time, generally ranging from one month to three years, during which period the students can access the online learning platform at any time. The Group sells the prepaid cards to the students directly on its website or through distributors. The payment from distributors are generally received when the prepaid cards are delivered to the distributors, and not contingent upon the resale to the students (end users). | ||||||||
Payments received from students or distributors are initially recognized as deferred revenue. Revenue is recognized on a straight-line basis over the service period, starting from the activation of the prepaid cards by the students and ending with the prepaid cards’ expiration date. | ||||||||
(c) Private primary and secondary schools | ||||||||
The Group operates a number of private primary and secondary schools, which provide educational services to the students through traditional classroom education. Students register and pay for their classes at the beginning of each semester. Fees received from students upfront are initially recorded as deferred revenue. Revenue is recognized ratably over the service period, which is six months for each school semester. If a student withdraws from a class, any collected but unearned portion of the fee is recognized as revenue at that time unless the student is entitled to a refund. | ||||||||
(d) International and elite curriculum programs | ||||||||
The Group provides international post-secondary and English language learning services for high schools in the PRC and international polytechnic curriculum programs through traditional classroom education. For those programs, students register and pay for their classes at the beginning of each semester or each short-term program (i.e. Summer camp). Fees collected from learning institutions are recognized either on a straight-line basis over the service period, which is typically the six-month school semester or when such services are completed. | ||||||||
Business tax | ' | |||||||
Business tax | ||||||||
The Group’s PRC subsidiaries, VIE and VIE’ subsidiaries are subject to business taxes at the rate of 5.6%, which is applied to service revenue generated from online education programs and international and elite curriculum programs. | ||||||||
Value added tax ("VAT") and VAT rebate | ' | |||||||
Value added tax (“VAT”) and VAT rebate | ||||||||
The Group is subject to PRC value added tax (“VAT”) generally at a rate of 17% on certain revenue from the online education technical services and online tutoring services which reduces revenues, and are entitled to an offset for VAT paid or borne on the goods purchased by the Group. The Group is entitled to a rebate of VAT paid at a rate of 14%. The rebates are recorded as a component of revenue when the relevant compliance requirements are met and when there are no further obligations, and the rebates are not subject to future refunds or reimbursements. The rebates granted to the Group during the years ended December 31, 2011, 2012 and 2013 were RMB8,260, RMB12,237 and RMB16,223, respectively. | ||||||||
In July 2012, the Ministry of Finance and the State Administration of Taxation jointly issued a circular regarding the pilot collection of VAT in lieu of business tax in certain areas and industries in the PRC. Such VAT pilot program has been phased in Beijing, Jiangsu, Anhui, Fujian, Guangdong, Tianjin, Zhejiang, and Hubei between September and December 2012. Starting from September 1, 2012, the Group’s six subsidiaries became subject to VAT at the rates of 6%, and seven subsidiaries became subject to VAT at the rates of 3%. Starting from July 2013, the Group’s two subsidiaries became subject to VAT at the rates of 6%, and one subsidiary became subject to VAT at the rates of 3% on certain service revenues which were previously subject to business tax. | ||||||||
Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. However, entities that are VAT small scale taxpayers, cannot offset their input VAT against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in either other current liabilities or other current assets on the consolidated balance sheets. | ||||||||
Research and development | ' | |||||||
Research and development | ||||||||
Research and development expenses mainly include depreciation, payroll, employee benefits, and other headcount-related costs associated with the development of online education technology platform and courseware. The Group expenses all research and development costs as incurred. | ||||||||
Advertising costs | ' | |||||||
Advertising costs | ||||||||
Advertising costs are expensed as incurred. The Group incurred advertising costs totaling RMB13,794, RMB3,801 and RMB 4,919 for the years ended December 31, 2011, 2012 and 2013 respectively, which are recorded as a component of selling and marketing expenses in the accompanying consolidated statements of operations. | ||||||||
Royalty fees | ' | |||||||
Royalty fees | ||||||||
Royalty fees payable to the Fourth Middle School of Anqing for the use of the school’s education resources in the provision of the Group’s private primary and secondary schools services are payable each year from 2005 to 2024. The aggregated royalty fees are recognized as royalty expense on a straight-line basis over the royalty period. The difference between royalty fees paid and the amount reported as expenses was included as a component of accrued expenses and other current liabilities in the accompanying consolidated balance sheets. | ||||||||
Foreign currency translation | ' | |||||||
Foreign currency translation | ||||||||
The functional currency of the Company, BJ-BCIT and BJ-WITT is the US$. The functional currency of all other entities within the Group is the RMB. Transactions in other currencies are recorded in each relevant entity’s functional currency at the rates of exchange prevailing when the transactions occur. Monetary assets and liabilities denominated in other currencies are translated into the applicable functional currencies at rates of exchange in effect at the balance sheet dates. Nonmonetary assets and liabilities are remeasured into the applicable functional currencies at historical exchange rates and transactions denominated in other currencies are converted at the applicable rates of exchange prevailing when the transactions occur. Exchange gains and losses are recorded in the consolidated statements of operations. | ||||||||
The Group’s reporting currency is the RMB. The Group’s entities with functional currency of US$ translate their operating results and financial position into the RMB, the Group’s reporting currency. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity amounts are translated at historical exchange rates and revenues, expenses, gains, and losses are translated using the average rate for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive income (loss) in the consolidated statements of comprehensive income. | ||||||||
Income taxes | ' | |||||||
Income taxes | ||||||||
Current income taxes are provided in accordance with the laws of the relevant tax authorities. | ||||||||
Deferred income taxes are provided using the asset and liability method. Under this method, deferred income taxes are recognized for tax credits and net operating losses available for carry-forwards and significant temporary differences. Deferred tax assets and liabilities are classified as current or non-current based upon the classification of the related asset or liability in the financial statements or the expected timing of their reversal if they do not relate to a specific asset or liability. A valuation allowance is provided to reduce the amount of deferred tax assets if it is considered more likely than not that some portion of, or all of the deferred tax assets will not be realized. | ||||||||
The impact of an uncertain income tax position on the income tax return is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority based solely on technical merits of the associated tax position. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. | ||||||||
Comprehensive income | ' | |||||||
Comprehensive income | ||||||||
Comprehensive income includes net income, foreign currency translation adjustments and change in fair value of available-for-sale investments. The Group presents the components of net income, the components of other comprehensive income and total comprehensive income in two separate but consicutive statements. | ||||||||
Financial instruments | ' | |||||||
Financial instruments | ||||||||
Financial instruments include cash and cash equivalents, term deposits, short-term investments, accounts receivable, accounts payable, and amounts due from and due to related parties. The carrying values of cash and cash equivalents, term deposits, accounts receivable, accounts payable and amounts due from and due to related parties approximate their fair values due to their short-term maturities. The fair values of the equity method investment are not readily determinable. Held-to-maturity investments are recorded at amortized cost. Available-for-sale investments are carried at fair value. | ||||||||
Net income per share | ' | |||||||
Net income per share | ||||||||
Basic net income per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. | ||||||||
Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted. Ordinary share equivalents are excluded from the computation of the diluted net income per share in periods when their effect would be anti-dilutive. The effect of the warrants, stock options, and Restricted Share Units (“RSUs”) are computed using the treasury stock method. | ||||||||
Share-based compensation | ' | |||||||
Share-based compensation | ||||||||
Share-based payment transactions with employees, such as share options are measured based on the grant date fair value of the equity instrument. The Group recognizes the compensation costs net of an estimated forfeiture rate using the straight-line method, over the requisite service period of the award, which is generally the vesting period of the award. The estimate of forfeitures will be adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of stock compensation expense to be recognized in future periods. | ||||||||
Share-based payment issued to non-employees, such as advisors, are measured at fair value at the earlier of the commitment date or the date the service is completed and recognized over the period the service is provided. | ||||||||
A change in any of the terms or conditions of share options shall be accounted for as a modification of the plan. Therefore, the Group calculates incremental compensation cost of a modification as the excess of the fair value of the modified option over the fair value of the original option immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group would recognize incremental compensation cost in the period of the modification occurred and for unvested options, the Group would recognize, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. | ||||||||
Business combinations | ' | |||||||
Business combinations | ||||||||
The Group accounts for its business combinations using the acquisition method of accounting. Acquisition costs are allocated to the assets and liabilities the Group acquired based on their fair values with goodwill being the excess value over the net identifiable assets acquired. | ||||||||
The assets acquired, the liabilities assumed, and any noncontrolling interest of the acquiree at the acquisition date, if any, are measured at their fair values as of that date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. | ||||||||
Common forms of the consideration made in acquisitions are cash. Consideration transferred in a business acquisition is measured at the fair value as at the date of acquisition. | ||||||||
Significant risks and uncertainties | ' | |||||||
Significant risks and uncertainties | ||||||||
Concentration of credit risk | ||||||||
Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable and amount due from related parties. The Group places its cash and cash equivalents and term deposits with financial institutions in the PRC and Hong Kong. | ||||||||
The Group conducts credit evaluations of its customers and generally does not require collateral or other security from them. To date, the Group has not experienced significant losses from uncollectible accounts. An allowance for doubtful accounts amounting to nil, RMB340 and RMB261 was recorded in 2011, 2012 and 2013, respectively and these amounts were written off in the same year. Management will continue to evaluate the Group’s collection experience and provide for an allowance for doubtful accounts as appropriate. | ||||||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated net revenues was as follows: | ||||||||
For the years ended December 31, | ||||||||
Customers | 2011 | 2012 | 2013 | |||||
% | % | % | ||||||
A | 13 | 14 | 16 | |||||
B | 11 | 11 | 11 | |||||
C | 13 | * | * | |||||
D | 11 | 10 | * | |||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated accounts receivable and amounts due from related parties was as follows: | ||||||||
As of December 31, | ||||||||
Customers | 2012 | 2013 | ||||||
% | % | |||||||
A | 36 | 39 | ||||||
B | 11 | * | ||||||
C | 24 | 12 | ||||||
D | 25 | 28 | ||||||
* Represented less than 10% of consolidated net revenue or accounts receivable and amounts due from related parties’ balances. | ||||||||
Foreign currency risk | ||||||||
The RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents and term deposits of the Group included aggregate amounts of RMB476,425 and RMB563,167, which were denominated in RMB, at December 31, 2012 and 2013, respectively, representing 99.7% and 99.0% of the cash and cash equivalents and term deposits at December 31, 2012 and 2013, respectively. | ||||||||
Recently issued accounting pronouncements | ' | |||||||
Recently issued accounting pronouncements | ||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) has issued an authoritative pronouncement related to parent’s accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. | ||||||||
For an equity method investment that is a foreign entity, the partial sale guidance still applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. | ||||||||
Additionally, the amendments in this pronouncement clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity (i.e., irrespective of any retained investment); and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. | ||||||||
The amendments in this pronouncement are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The Group will adopt this pronouncement on January 1, 2014 and does not expect the adoption of this pronouncement will have a significant impact on its financial condition or results of operations. | ||||||||
In July 2013, the FASB issued a pronouncement which provides guidance on financial statement presentation of an unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this Accounting Standard Updates (“ASU”) is to eliminate diversity in practice resulting from a lack of guidance on this topic in current US GAAP. | ||||||||
The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. | ||||||||
This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The Group will adopt this pronouncement on January 1, 2014 and does not expect the adoption of this pronouncement will have a significant impact on its consolidated financial statements. |
ORGANIZATION_AND_PRINCIPAL_ACT1
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ORGANIZATION AND PRINCIPAL ACTIVITIES | ' | |||||||
Summary of the Company's Subsidiaries, its VIE And its VIE's Subsidiaries | ' | |||||||
A summary of the Company’s subsidiaries and its VIE and its VIE’s subsidiaries as of December 31, 2013 was as follows: | ||||||||
Date of incorporation | Percentage of | |||||||
Name | or acquisition | legal ownership | Place of incorporation | |||||
Subsidiaries of the Company: | ||||||||
CMR Web-learning Co., Ltd. (“CMR Web”) | July 29, 1999 | 70 | % | PRC | ||||
Hongcheng Technology Development Co., Ltd. (“Hongcheng Technology”) | July 31, 2000 | 100 | % | PRC | ||||
Zhong Nongda Networks Development Co., Ltd. (“Zhongnongda Networks”) | October 30, 2001 | 55 | % | PRC | ||||
Beijing Hongcheng Liye Technology Co., Ltd. (“Hongcheng Liye”) | April 15, 2003 | 100 | % | PRC | ||||
Dalian Dongcai Technology Co., Ltd. (“Dongcai”) | June 4, 2003 | 70 | % | PRC | ||||
Beijing WITT Education Consultant Management Co., Ltd. (“WITT Education”) | July 4, 2003 | 100 | % | PRC | ||||
BJ-WITT EDU MAN. LTD. (“BJ-WITT”) | July 4, 2003 | 100 | % | BVI | ||||
Chongqing Chongda Yuanxing Co., Ltd. (“Chongda”) | December 24, 2003 | 51 | % | PRC | ||||
Beijing BCIT Science and Education Management Consulting Limited (“Beijing BCIT”) | January 13, 2005 | 100 | % | PRC | ||||
Beijing Gotop Education Co., Ltd. (“Gotop Hongcheng”) | December 26, 2005 | 100 | % | PRC | ||||
Beijing BCIT Science and Education Management Consulting Limited (“BJ-BCIT”) | February 10, 2006 | 100 | % | BVI | ||||
Beijing Distance Education Technology Co., Ltd. (“Yuancheng Education”) | March 31, 2006 | 100 | % | PRC | ||||
Tianjin Gaotuo Hongcheng Education Technology Co., Ltd. (“Tianjin Gaotuo Hongcheng”) | June 26, 2006 | 100 | % | PRC | ||||
Beijing Beiyuda Education Technology Co., Ltd. (“Beiyuda”) | September 26, 2006 | 51 | % | PRC | ||||
Beijing Mingdaoyuan Technology Co., Ltd. (“Beijing Mingdao”) | March 27, 2007 | 51 | % | PRC | ||||
Shanghai Shangcai Education Technology Co., Ltd. (“Shanghai Shangcai”) | April 18, 2008 | 51 | % | PRC | ||||
Dongcai Online Training Center (“Dongcai Online”) | July 10, 2008 | 70 | % | PRC | ||||
Beijing Zhonglin Technology Co., Ltd. (“Zhonglin”) | November 3, 2008 | 51 | % | PRC | ||||
Date of incorporation | Percentage of | |||||||
Name | or acquisition | legal ownership | Place of incorporation | |||||
Fuzhou Haojiaoshi Distance Education Service Co., Ltd. (“Fuzhou Good Teacher”) | December 7, 2009 | 51 | % | PRC | ||||
Hongyuanboxue Technology Co., Ltd (“Hongyuanboxue”) | August 24, 2010 | 100 | % | PRC | ||||
Beijing Hongcheng Xueyuan Technology Co., Ltd. (“Hongcheng Xueyuan”) | October 31, 2010 | 100 | % | PRC | ||||
Nanning Hongcheng Xueyuan Technology Development Co., Ltd (“Nanning Hongcheng Xueyuan ”) | October 31, 2010 | 51 | % | PRC | ||||
Hangzhou Hongcheng Education Training Service Co., Ltd (“Hangzhou Hongcheng Xueyuan”) | October 31, 2010 | 60 | % | PRC | ||||
Beijing Haidian District New Door Trainning School (“Haidian Trainning School ”) | April 7, 2011 | 55 | % | PRC | ||||
Zhejiang Hongcheng Education Technology Co., Ltd. (“Zhejiang Hongcheng”) | June 30, 2011 | 51 | % | PRC | ||||
HongKong Hongcheng Online Education Technology Co., Ltd (“Hongcheng Online”) | April 12, 2013 | 100 | % | HongKong | ||||
Chongqing Fahong Technology Development Co., Ltd. (“Chongqing Fahong ”) | Feburary 7, 2013 | 100 | % | PRC | ||||
VIE of the Company: | ||||||||
Beijing Hongcheng Education Technology Co., Ltd. (“Hongcheng Education”) | March 7, 2005 | N/A | PRC | |||||
Subsidiaries of VIE: | ||||||||
Beijing Gotop Electronic Science Co., Ltd. (“Gotop Electronic”) (1) | November 29, 1995 | N/A | PRC | |||||
Xiandai Xingye Network Technology Co., Ltd. (“Xiandai Technology”) (1) | November 7, 2000 | N/A | PRC | |||||
Pingdingshan Wellent Bilingual School (“Pingdingshan”) (1) | September 3, 2002 | N/A | PRC | |||||
Anqing Foreign Language Middle School (“Anqing Foreign Language”) (1) | August 2, 2004 | N/A | PRC | |||||
Jingzhou Tianchang Investment Co., Ltd. (“Tianchang”) (2) | September 6, 2005 | N/A | PRC | |||||
Jingzhou Middle School South Campus (“South Campus”) (3) | December 28, 2005 | N/A | PRC | |||||
Beijing Hongcheng YoYo Technology Co., Ltd. (“Hongcheng YoYo”) (1) | November 3, 2009 | N/A | PRC | |||||
Anqing Daguan Hongcheng Anwai Training Centre (“Anqing Daguan”) (1) | April 15, 2010 | N/A | PRC | |||||
Pingdingshan Hongcheng Education Training Centre (“Pingdingshan Training Centre”) (1) | August 11, 2010 | N/A | PRC | |||||
Beijing Xicheng District Hongcheng Training School (“Xicheng Training School”) (1) | January 6, 2011 | N/A | PRC | |||||
(1) Wholly owned subsidiary of Hongcheng Education (VIE of the Company) | ||||||||
(2) 72.5% of its equity is owned by Hongcheng Education (VIE of the Company) | ||||||||
(3) 54% of its equity is owned by Hongcheng Education (VIE of the Company) | ||||||||
Financial information of the Group's VIE and the VIE's subsidiaries | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Cash and cash equivalents | 36,772 | 21,682 | ||||||
Accounts receivable | 9,313 | 1,342 | ||||||
Prepaid expenses and other current assets | 6,714 | 4,319 | ||||||
Total current assets | 67,023 | 47,640 | ||||||
Property and equipment, net | 152,756 | 145,726 | ||||||
Land use rights, net | 26,049 | 25,441 | ||||||
Total assets | 255,170 | 224,380 | ||||||
Total liabilities | 206,098 | 175,525 | ||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | 95,880 | 108,751 | 102,931 | |||||
Net (loss) income | (6,131 | ) | (2,247 | ) | 4,415 | |||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net cash provided by operating activities | 16,487 | 20,339 | (9,488 | ) | ||||
Net cash used in investing activities | (19,656 | ) | (947 | ) | (5,602 | ) | ||
Net cash used in financing activities | (1,479 | ) | — | — |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||
Schedule of Estimated Useful Lives for Computing Depreciation | ' | |||||||
Buildings | 20 years | |||||||
Furniture, fixtures and equipment | 3-5 years | |||||||
Motor vehicles | 5 years | |||||||
Leasehold improvements | Shorter of the lease term or the | |||||||
estimated useful lives | ||||||||
Schedule of Weighted Average Amortization Period by Intangible Asset Class | ' | |||||||
Service agreements with universities and high schools | 26 years | |||||||
Operating platforms used to provide online education service | 6 years | |||||||
Customer base | 4 years | |||||||
Online coursewares | 3 years | |||||||
Partnership with agencies | 5 years | |||||||
Exclusive partnership with universities | 16 years | |||||||
Operational right of private school | 22 years | |||||||
Partnership with local institutes | 7.2 years | |||||||
Acquired right to use trademark | 2.2 years | |||||||
Schedule of Concentration of Credit Risk | ' | |||||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated net revenues was as follows: | ||||||||
For the years ended December 31, | ||||||||
Customers | 2011 | 2012 | 2013 | |||||
% | % | % | ||||||
A | 13 | 14 | 16 | |||||
B | 11 | 11 | 11 | |||||
C | 13 | * | * | |||||
D | 11 | 10 | * | |||||
A summary of the customers who accounted for 10% or more of the Group’s consolidated accounts receivable and amounts due from related parties was as follows: | ||||||||
As of December 31, | ||||||||
Customers | 2012 | 2013 | ||||||
% | % | |||||||
A | 36 | 39 | ||||||
B | 11 | * | ||||||
C | 24 | 12 | ||||||
D | 25 | 28 | ||||||
* Represented less than 10% of consolidated net revenue or accounts receivable and amounts due from related parties’ balances. |
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
ACCOUNTS RECEIVABLE | ' | |||||||
Schedule of Accounts Receivable | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Accounts receivable | 34,917 | 26,561 | ||||||
Less: allowance for doubtful accounts | — | — | ||||||
Accounts receivable, net | 34,917 | 26,561 | ||||||
Movement of allowance for doubtful accounts | ' | |||||||
As of December 31 | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Balance as of January 1 | — | — | — | |||||
Charged to expenses | — | 340 | 261 | |||||
Written off | — | (340 | ) | (261 | ) | |||
Balance as of December 31 | — | — | — |
PREPAID_EXPENSES_AND_OTHER_CUR1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | |||||
Schedule of Prepaid Expenses and Other Current Assets | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Staff advances and others | 4,878 | 7,826 | ||||
Advance to an online school | 341 | — | ||||
Prepaid rental expense | 2,872 | 3,997 | ||||
Prepaid advertisement expense | 601 | 364 | ||||
Prepaid courseware use right | 766 | 241 | ||||
Prepaid professional fees | 2,113 | 510 | ||||
Advances to suppliers | 4,801 | 3,372 | ||||
Interest receivables from term deposits | 953 | 1,996 | ||||
VAT rebate receivable | 6,130 | 4,278 | ||||
23,455 | 22,584 |
SHORTTERM_INVESTMENTS_Tables
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHORT-TERM INVESTMENTS | ' | |||||||||||||||||
Schedule of Short-Term Investments | ' | |||||||||||||||||
As of December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
RMB | RMB | |||||||||||||||||
Available-for-sale investments | 15,575 | 7,127 | ||||||||||||||||
Equity method investment | 8,000 | — | ||||||||||||||||
23,575 | 7,127 | |||||||||||||||||
Schedule of Unrealized Gains and Losses | ' | |||||||||||||||||
As of December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
Accumulated | Net | Accumulated | Net | |||||||||||||||
Exchange | unrealized | carrying | Exchange | unrealized | carrying | |||||||||||||
Cost | difference | (loss) gains | amount | Cost | difference | (loss) gains | amount | |||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||
Available-for-sale | ||||||||||||||||||
Corporate Bonds | 15,939 | (1,483 | ) | 1,119 | 15,575 | 8,627 | (1.674 | ) | 174 | 7,127 | ||||||||
Total | 15,939 | (1,483 | ) | 1,119 | 15,575 | 8,627 | (1, 674 | ) | 174 | 7,127 |
LAND_USE_RIGHTS_NET_Tables
LAND USE RIGHTS, NET (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
LAND USE RIGHTS, NET | ' | |||||
Land Use Rights, Net | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Land use rights | 30,287 | 30,287 | ||||
Less: accumulated amortization | (4,238 | ) | (4,846 | ) | ||
Land use rights, net | 26,049 | 25,441 |
PROPERTY_AND_EQUIPMENT_NET_Tab
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
PROPERTY AND EQUIPMENT, NET | ' | |||||
Property and Equipment, Net | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Buildings | 241,560 | 245,443 | ||||
Furniture, fixtures and equipment | 73,991 | 78,580 | ||||
Motor vehicles | 12,251 | 12,855 | ||||
Leasehold improvements | 19,382 | 21,558 | ||||
347,184 | 358,436 | |||||
Less: accumulated depreciation and amortization | (113,448 | ) | (135,064 | ) | ||
233,736 | 223,372 | |||||
Construction in progress | 4,827 | 9,186 | ||||
238,563 | 232,558 |
ACQUIRED_INTANGIBLE_ASSETS_NET1
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ' | |||||||||||||||||
Schedule of Finite Lived and Indefinite Lived Intangible Assets | ' | |||||||||||||||||
For the years ended December 31, | ||||||||||||||||||
2012 | 2013 | |||||||||||||||||
Gross | Net | Gross | Net | |||||||||||||||
carrying | Accumulated | Accumulated | carrying | carrying | Accumulated | Accumulated | carrying | |||||||||||
amount | amortization | impairment | amount | amount | amortization | impairment | amount | |||||||||||
RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | |||||||||||
Acquired intangible assets with definite lives | ||||||||||||||||||
Service agreements with universities and high schools | 89,235 | (19,103 | ) | (34,958 | ) | 35,174 | 89,235 | (20,318 | ) | (34,958 | ) | 33,959 | ||||||
Operating platforms used to provide online education services | 759 | (759 | ) | — | — | 759 | (759 | ) | — | — | ||||||||
Customer base | 11,708 | (11,708 | ) | — | — | 11,708 | (11,708 | ) | — | — | ||||||||
Online coursewares | 3,623 | (3,623 | ) | — | — | 3,623 | (3,623 | ) | — | — | ||||||||
Partnership with agencies | 356 | (353 | ) | — | 3 | 356 | (356 | ) | — | — | ||||||||
Exclusive partnership with universities | 21,356 | (10,453 | ) | — | 10,903 | 21,356 | (11,732 | ) | — | 9,624 | ||||||||
Operational right of private school | 4,464 | (2,021 | ) | — | 2,443 | 4,464 | (2,275 | ) | — | 2,189 | ||||||||
Partnership with local institutes | 2,380 | (720 | ) | — | 1,660 | 2,380 | (1,052 | ) | — | 1,328 | ||||||||
Reacquired right to use trademark | 300 | (300 | ) | — | — | 300 | (300 | ) | — | — | ||||||||
Total intangible assets with definite lives | 134,181 | (49,040 | ) | (34,958 | ) | 50,183 | 134,181 | (52,123 | ) | (34,958 | ) | 47,100 | ||||||
Acquired intangible assets with indefinite lives | ||||||||||||||||||
Trade name | 4,316 | — | 4,316 | 4,316 | — | — | 4,316 | |||||||||||
Total | 138,497 | (49,040 | ) | (34,958 | ) | 54,499 | 138,497 | (52,123 | ) | (34,958 | ) | 51,416 | ||||||
Schedule of Future Amortization Expense Related to Intangible Assets | ' | |||||||||||||||||
Amortization expenses were RMB4,171, RMB3,903 and RMB3,083 for the years ended December 31, 2011, 2012 and 2013, respectively. Amortization expenses for the next five years are as follows: | ||||||||||||||||||
Years ending December 31, | RMB | |||||||||||||||||
2014 | 2,929 | |||||||||||||||||
2015 | 2,892 | |||||||||||||||||
2016 | 2,720 | |||||||||||||||||
2017 | 2,512 | |||||||||||||||||
2018 | 2,512 |
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
GOODWILL | ' | |||||||||||
Schedule of Goodwill Activity | ' | |||||||||||
2012 and 2013 | ||||||||||||
Online | Private primary | Online | International and | |||||||||
degree | and secondary | tutoring | elite curriculum | |||||||||
programs | schools | programs | programs | Total | ||||||||
RMB | RMB | RMB | RMB | RMB | ||||||||
Gross amount: | ||||||||||||
Beginning balance | 17,960 | 1,924 | 20,798 | 59,801 | 100,483 | |||||||
Changes during the year | — | — | — | — | — | |||||||
Ending balance | 17,960 | 1,924 | 20,798 | 59,801 | 100,483 | |||||||
Accumulated impairment | ||||||||||||
Beginning balance | — | (1,924 | ) | — | (55,304 | ) | (57,228 | ) | ||||
Changes during the year | — | — | — | — | — | |||||||
Ending balance | — | (1,924 | ) | — | (55,304 | ) | (57,228 | ) | ||||
Goodwill, net | 17,960 | — | 20,798 | 4,497 | 43,255 |
BANK_BORROWINGS_Tables
BANK BORROWINGS (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
BANK BORROWINGS | ' | |||||
Schedule of changes in the balances of bank borrowings | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Beginning balance as of January 1 | — | — | ||||
Principal of bank borrowings during the year | — | 448,671 | ||||
Payment of financing cost | — | (8,557 | ) | |||
Accrued interest expenses and amortization of debt discount | — | 12,849 | ||||
Repayment of principle during the year | — | (223,040 | ) | |||
Payment of interest during the year | — | (8,360 | ) | |||
Exchange differences | — | (3,624 | ) | |||
Ending balances as of December 31 | — | 217,939 | ||||
Including: | ||||||
Current | — | 4,056 | ||||
Non-current | — | 213,883 | ||||
Ending balances as of December 31 | — | 217,939 |
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | |||||
Accrued Expenses and Other Current Liabilities | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
Advances from students (1) | 13,804 | 11,850 | ||||
Accrued expenses | 13,730 | 22,815 | ||||
Accrued professional fees | 1,168 | 456 | ||||
Accrued employee payroll and welfare benefits | 67,979 | 74,246 | ||||
Tuition fees payable to universities | 10,324 | 17,877 | ||||
Other payables | 6,553 | 10,253 | ||||
113,558 | 137,497 | |||||
(1) Advances from students represented amounts received for books and materials, which the Group collected from students on behalf of third party vendors. |
OTHER_TAXES_PAYABLE_Tables
OTHER TAXES PAYABLE (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
OTHER TAXES PAYABLE | ' | |||||
Schedule of Other Taxes Payable | ' | |||||
As of December 31, | ||||||
2012 | 2013 | |||||
RMB | RMB | |||||
VAT payable | 10,618 | 16,526 | ||||
Business taxes payable | 15,691 | 18,544 | ||||
Individual income taxes withheld (1) | 944 | 1,143 | ||||
Real estate taxes payable | 41 | 41 | ||||
27,294 | 36,254 | |||||
(1) The Group is required to withhold PRC individual income taxes on employees’ payroll for remittance to the tax authorities. |
SHARE_OPTION_PLAN_Tables
SHARE OPTION PLAN (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
SHARE OPTION PLAN | ' | |||||||||||||||||
Schedule of Assumptions Used in the Option Pricing Model | ' | |||||||||||||||||
2011 | ||||||||||||||||||
Weighted average volatility rate | 47.6 | % | ||||||||||||||||
Weighted average risk-free interest rate | 1.18 | % | ||||||||||||||||
Weighted average expected option life (years) | 6 | |||||||||||||||||
Weighted average dividend yield | — | |||||||||||||||||
Weighted average fair value of underlying ordinary share | $ | 0.84 | ||||||||||||||||
Schedule of Share Option Activity | ' | |||||||||||||||||
Outstanding options | ||||||||||||||||||
Weighted | Weighted average | |||||||||||||||||
average | grant-date | |||||||||||||||||
Number of | exercise | fair value of | ||||||||||||||||
options | price per share | ordinary shares | ||||||||||||||||
US$ | US$ | |||||||||||||||||
Outstanding at January 1, 2013 | 9,128,105 | 1.48 | 1.6 | |||||||||||||||
Exercised | (1,873,029 | ) | 1.1 | 1.21 | ||||||||||||||
Forfeited | (555,400 | ) | 2.06 | 2.17 | ||||||||||||||
Expired | (52 | ) | 1.31 | 1.42 | ||||||||||||||
Outstanding at December 31, 2013 | 6,699,624 | 1.54 | 1.66 | |||||||||||||||
Vested and expected to vest as of December 31, 2013 | 6,699,624 | 1.54 | 1.66 | |||||||||||||||
Exercisable as of December 31, 2013 | 6,589,624 | 1.49 | 1.65 | |||||||||||||||
Schedule of Information with respect to Share Options Outstanding | ' | |||||||||||||||||
Options outstanding | Options exercisable | |||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||
average | Weighted | average | average | Weighted | average | |||||||||||||
Number | remaining | average | intrinsic | Number | remaining | average | intrinsic | |||||||||||
outstanding | contractual life | exercise price | value | exercisable | contractual life | exercise price | value | |||||||||||
US$ | US$ | US$ | US$ | |||||||||||||||
Average exercise price: | ||||||||||||||||||
US$ | ||||||||||||||||||
0.86 | 961,600 | 0.93 | 0.86 | 1.41 | 961,600 | 0.93 | 0.86 | 1.41 | ||||||||||
1.09-1.85 | 5,155,887 | 2.57 | 1.56 | 0.73 | 5,045,887 | 2.46 | 1.56 | 0.71 | ||||||||||
1.86-2.85 | 582,137 | 5.87 | 1.95 | 0.32 | 582,137 | 5.87 | 1.95 | 0.32 | ||||||||||
6,699,624 | 2.63 | 1.54 | 0.77 | 6,589,624 | 2.54 | 1.49 | 0.78 | |||||||||||
Schedule of Outstanding Restricted Share Units | ' | |||||||||||||||||
Outstanding restricted share units | ||||||||||||||||||
Number of | Weighted average | |||||||||||||||||
restricted | grant date | |||||||||||||||||
share units | fair value | |||||||||||||||||
US$ | ||||||||||||||||||
Outstanding at January 1, 2013 | 3,313,000 | 2.08 | ||||||||||||||||
Forfeited | (222,000 | ) | 2.16 | |||||||||||||||
Outstanding at December 31, 2013 | 3,091,000 | 2.07 | ||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,376,240 | 2.02 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
INCOME TAXES | ' | |||||||||||
Schedule of Preferential Tax Rates by Subsidiary and VIE | ' | |||||||||||
PRC entities | 2011 | 2012 | 2013 | 2014 | 2015 | |||||||
CMR Web | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Hongcheng Liye | 15 | % | 15 | % | 25 | % | 25 | % | 25 | % | ||
Hongcheng Education | 15 | % | 15 | % | 25 | % | 25 | % | 25 | % | ||
ZhongNongda Network | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Beiyuda | 7.5 | % | 7.5 | % | 15 | % | 15 | % | 15 | % | ||
Gotop Hongcheng | 7.5 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Hongcheng Technology | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Dongcai | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Chongda | 15 | % | 15 | % | 15 | % | 15 | % | 15 | % | ||
Zhejiang Hongcheng | 25 | % | 25 | % | 0 | % | 12.5 | % | 12.5 | % | ||
Schedule of Components of Income Tax Expense | ' | |||||||||||
For the years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
RMB | RMB | RMB | ||||||||||
Current tax | 23,078 | 19,939 | 37,282 | |||||||||
Deferred tax (benefit) provision | (6,034 | ) | 6,488 | (9,493 | ) | |||||||
17,044 | 26,427 | 27,789 | ||||||||||
Schedule of Deferred Income Tax Assets and Liabilities | ' | |||||||||||
As of December 31, | ||||||||||||
2012 | 2013 | |||||||||||
RMB | RMB | |||||||||||
Current deferred tax assets | ||||||||||||
Deferred revenues | 11,685 | 13,118 | ||||||||||
Total current deferred tax assets | 11,685 | 13,118 | ||||||||||
Less: valuation allowance on deferred tax assets | (2,114 | ) | (349 | ) | ||||||||
Total net current deferred tax assets | 9,571 | 12,769 | ||||||||||
Non-current deferred tax assets | ||||||||||||
Property and equipment | 339 | 482 | ||||||||||
Deferred revenues | 1,137 | 1,206 | ||||||||||
Net operating loss carry forwards | 11,753 | 7,489 | ||||||||||
Total non-current deferred tax assets | 13,229 | 9,117 | ||||||||||
Less: valuation allowance on deferred tax assets | (11,144 | ) | (5,591 | ) | ||||||||
Total net non-current deferred tax assets | 2,085 | 3,586 | ||||||||||
Non-current deferred tax liabilities | ||||||||||||
Property and equipment | 64 | 805 | ||||||||||
Acquired intangible assets | 7,117 | 7,874 | ||||||||||
Amount due from related party-non current | 6,292 | — | ||||||||||
Total deferred tax liabilities | 13,473 | 8,679 | ||||||||||
Reconciliation of Income Tax Expense to Statutory Tax Rate | ' | |||||||||||
For the years ended December 31, | ||||||||||||
2011 | 2012 | 2013 | ||||||||||
% | % | % | ||||||||||
Statutory rate | 25 | 25 | 25 | |||||||||
Tax holiday and preferential tax rates | (18 | ) | (14 | ) | (12 | ) | ||||||
Effect on tax rates in different tax jurisdiction | 5 | 3 | 5 | |||||||||
Expenses non-deductible for tax purposes | — | 7 | 8 | |||||||||
Changes in valuation allowance | 8 | — | (6 | ) | ||||||||
Increase (decrease) in unrecognized tax benefit | 3 | 3 | 2 | |||||||||
Effective tax rates | 23 | 24 | 22 | |||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefit | ' | |||||||||||
RMB | ||||||||||||
Balance at January 1, 2012 | 6,089 | |||||||||||
Additions based on tax positions related to the current year | 2,221 | |||||||||||
Other - interest and penalty | 485 | |||||||||||
Balance at December 31, 2012 | 8,795 | |||||||||||
Additions based on tax positions related to the current year | 1,372 | |||||||||||
Other - interest and penalty | 706 | |||||||||||
Balance at December 31, 2013 | 10,873 |
NONCONTROLLING_INTEREST_Tables
NONCONTROLLING INTEREST (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
NONCONTROLLING INTEREST | ' | |||||||
Schedule of Noncontrolling Interest | ' | |||||||
For the years ended December 31 | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Balance at January | 133,485 | 167,253 | 196,911 | |||||
Net income (i) | 39,752 | 45,338 | 49,500 | |||||
Capital injection by noncontrolling shareholders(ii) | 2,960 | — | — | |||||
Foreign currency translation adjustments | 6,268 | 2,498 | 5,037 | |||||
Dividend to noncontrolling shareholders | (15,212 | ) | (17,321 | ) | (25,009 | ) | ||
Disposal of the subsidiaries (iii) | — | (857 | ) | — | ||||
Balance at December 31 | 167,253 | 196,911 | 226,439 | |||||
(i) The Group computed net income attributable to noncontrolling interests for each less-than-wholly-owned subsidiary as the net income or loss of that subsidiary multiplied by the ownership percentage held by NCI. | ||||||||
(ii) Represented the capital contributions from the noncontrolling shareholders, which are in proportion to their ownership percentages in the respective subsidiaries. | ||||||||
(iii) Represented the disposal of noncontrolling interests in Guangzhou Hongcheng and Guangxi Hongcheng in 2012. |
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
NET INCOME PER SHARE | ' | |||||||
Computation of Basic and Diluted Net Income Per Share | ' | |||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net income attributable to ChinaEdu Corporation (numerator) | 16,821 | 37,971 | 50,498 | |||||
Shares (denominator): | ||||||||
Weighted average ordinary shares outstanding used in computing basic net income per share | 47,453,930 | 47,523,375 | 28,250,473 | |||||
Incremental weighted average ordinary shares from assumed conversions of share option and RSUs using treasury stock method | 3,215,299 | 2,963,858 | 3,627,443 | |||||
Weighted average ordinary shares outstanding used in computing diluted net income per share | 50,669,229 | 50,487,233 | 31,877,916 | |||||
Net income per share attributable to ChinaEdu Corporation-basic | 0.35 | 0.8 | 1.79 | |||||
Net income per share attributable to ChinaEdu Corporation-diluted | 0.33 | 0.75 | 1.58 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | ' | |||||||||
Quoted price in | Significant | |||||||||
active markets | other | Significant | ||||||||
for identical | observable | unobservable | ||||||||
investments | inputs | inputs | ||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||
RMB | RMB | RMB | RMB | |||||||
As of December 31, 2012 | ||||||||||
Assets: | ||||||||||
Available-for-sale investments | 15,575 | — | — | 15,575 | ||||||
Total assets at fair value | 15,575 | — | — | 15,575 | ||||||
As of December 31, 2013 | ||||||||||
Assets: | ||||||||||
Available-for-sale investments | 7,127 | — | — | 7,127 | ||||||
Total assets at fair value | 7,127 | — | — | 7,127 |
COMMITMENTS_Tables
COMMITMENTS (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
COMMITMENTS | ' | |||
Future minimum lease payments under non-cancelable operating leases | ' | |||
Years ending December 31 | RMB | |||
2014 | 9,075 | |||
2015 | 4,355 | |||
2016 | 3,444 | |||
2017 | 2,002 | |||
2018 and thereafter | 1,600 | |||
20,476 |
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||
Schedule of assets and liabilities by segment | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Assets | ||||||||
Online degree programs | 937,541 | 1,018,814 | ||||||
Online tutoring programs | 49,980 | 64,138 | ||||||
Private primary and secondary schools | 150,723 | 148,576 | ||||||
International and elite curriculum programs | 23,132 | 19,996 | ||||||
Corporate assets | 80,877 | 89,246 | ||||||
Total assets | 1,242,253 | 1,340,770 | ||||||
Liabilities | ||||||||
Online degree programs | 184,190 | 186,491 | ||||||
Online tutoring programs | 57,188 | 62,039 | ||||||
Private primary and secondary schools | 112,008 | 103,552 | ||||||
International and elite curriculum programs | 38,081 | 37,505 | ||||||
Corporate liabilities | 3,684 | 288,542 | ||||||
Total liabilities | 395,151 | 678,129 | ||||||
Schedule of operating results of segment | ' | |||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Net revenue | ||||||||
Online degree programs | 347,107 | 393,343 | 438,375 | |||||
Online tutoring programs | 25,755 | 25,266 | 31,312 | |||||
Private primary and secondary schools | 49,653 | 59,937 | 68,747 | |||||
International and elite curriculum programs | 13,344 | 9,776 | 9,506 | |||||
Total net revenue | 435,859 | 488,322 | 547,940 | |||||
Cost of revenue | ||||||||
Online degree programs | 124,242 | 137,689 | 147,597 | |||||
Online tutoring programs | 9,107 | 11,861 | 10,829 | |||||
Private primary and secondary schools | 36,127 | 42,713 | 46,945 | |||||
International and elite curriculum programs | 16,128 | 9,846 | 5,628 | |||||
Total cost of revenue | 185,604 | 202,109 | 210,999 | |||||
Gross profit (loss) | ||||||||
Online degree programs | 222,865 | 255,654 | 290,778 | |||||
Online tutoring programs | 16,648 | 13,405 | 20,483 | |||||
Private primary and secondary schools | 13,526 | 17,224 | 21,802 | |||||
International and elite curriculum programs | (2,784 | ) | (70 | ) | 3,878 | |||
Total gross profit | 250,255 | 286,213 | 336,941 | |||||
Schedule of net revenue | ' | |||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Third parties: | ||||||||
Online degree programs | 97,284 | 121,541 | 146,816 | |||||
Online tutoring programs | 25,755 | 25,266 | 31,312 | |||||
Private primary and secondary schools | 49,653 | 59,937 | 68,747 | |||||
International and elite curriculum programs | 13,344 | 9,776 | 9,506 | |||||
186,036 | 216,520 | 256,381 | ||||||
Related parties: | ||||||||
Online education technical services, consulting services and recruiting services | 249,823 | 271,802 | 291,559 | |||||
249,823 | 271,802 | 291,559 | ||||||
435,859 | 488,322 | 547,940 | ||||||
Schedule of goodwill and acquired intangible assets by segment | ' | |||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Acquired intangible assets, net: | ||||||||
Online degree programs | 43,798 | 41,439 | ||||||
Online tutoring programs | 4,324 | 4,315 | ||||||
Private primary and secondary schools | 2,442 | 2,189 | ||||||
International and elite curriculum programs | 3,935 | 3,473 | ||||||
54,499 | 51,416 | |||||||
Goodwill: | ||||||||
Online degree programs | 17,960 | 17,960 | ||||||
Online tutoring programs | 20,798 | 20,798 | ||||||
Private primary and secondary schools | — | — | ||||||
International and elite curriculum programs | 4,497 | 4,497 | ||||||
43,255 | 43,255 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||
Schedule of Related Party Balances and Transactions | ' | |||||||
For the years ended December 31, | ||||||||
2011 | 2012 | 2013 | ||||||
RMB | RMB | RMB | ||||||
Online education technical and consulting services: | ||||||||
Online Education School of Dongbei University of Finance and Economics | 46,459 | 54,576 | 62,202 | |||||
Online Education School of Renmin University of China | 56,758 | 47,389 | 47,138 | |||||
Online Education School of Chongqing University | 57,175 | 70,149 | 86,028 | |||||
Online Education School of China Agricultural University | 49,068 | 49,394 | 44,231 | |||||
Online Education School of Beijing Language and Culture University | 33,531 | 39,042 | 39,712 | |||||
Online Education School of Central University of Finance and Economics | 2,834 | 2,284 | 3,467 | |||||
Online Education School of Guangxi Radio and TV University | 251 | 1,585 | 340 | |||||
Online Education School of Fujian Radio and TV University | 3,747 | 5,191 | 5,792 | |||||
Zhejiang Normal University | — | 2,192 | 2,505 | |||||
Shanghai Normal University | — | — | 144 | |||||
Total | 249,823 | 271,802 | 291,559 | |||||
Deferred revenues associated with services provided to related parties were as follows: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Online Education School of Dongbei University of Finance and Economics | 14,616 | 11,692 | ||||||
Online Education School of Renmin University of China | 11,431 | 12,133 | ||||||
Online Education School of Chongqing University | 18,385 | 19,506 | ||||||
Online Education School of China Agricultural University | 11,018 | 13,738 | ||||||
Online Education School of Beijing Language and Culture University | 10,005 | 10,392 | ||||||
Online Education School of Guangxi Radio and TV University | 76 | 55 | ||||||
Online Education School of Fujian Radio and TV University | 150 | 193 | ||||||
65,681 | 67,709 | |||||||
As of December 31, 2012 and 2013, the following balances were due from related parties: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Schools owned by the noncontrolling shareholders of the Company’s subsidiaries: | ||||||||
Online Education School of Dongbei University of Finance and Economics (i) | 31,272 | 30,910 | ||||||
Online Education School of Renmin University of China (i) | 71,361 | 46,081 | ||||||
Online Education School of Chongqing University (i)(ii) | 107,396 | 143,059 | ||||||
Online Education School of China Agricultural University of China (i) | 72,768 | 102,778 | ||||||
Online Education School of Beijing Language and Culture University (i) | 14,133 | 13,418 | ||||||
Online Education School of Guangxi Radio and TV University (i) | 325 | 521 | ||||||
Online Education School of Fujian Radio and TV University (i) | 2,920 | 5,350 | ||||||
Zhejiang Normal University | 1,988 | 1,516 | ||||||
Shanghai Normal University | — | 117 | ||||||
Online Education School of Central University of Finance and Economics (i) | — | 220 | ||||||
302,163 | 343,970 | |||||||
(i) The fees for services provided to the online schools are collected on a periodic basis. The excess amount of revenue recognized over the cash collection is recorded as amounts due from related parties. | ||||||||
(ii) The amounts due from Online Education School of Chongqing University includes RMB 41,979 of amounts due from related party-non-current as of December 31, 2012. | ||||||||
All of the amounts due from related parties are unsecured and non-interest bearing. The Group expects the amounts to be received within the next 12 months. | ||||||||
As of December 31, 2012 and 2013, the following balances were due to related parties: | ||||||||
As of December 31, | ||||||||
2012 | 2013 | |||||||
RMB | RMB | |||||||
Entity managed by management of the Group: | ||||||||
The Fourth Middle School of Anqing (ii) | 1,926 | 1,853 | ||||||
Parent company of a noncontrolling shareholder: | ||||||||
Rendashiji Technology Development Co., Ltd.(iii) | 522 | 8,199 | ||||||
Schools owned by the noncontrolling shareholders of the Company’s subsidiaries: | ||||||||
Online Education School of Dongbei University of Finance and Economics (i) | 32,018 | 39,259 | ||||||
Online Education School of Chongqing University (i) | 268 | 1,257 | ||||||
Online Education School of Central University of Finance and Economics (i) | 226 | 220 | ||||||
Online Education School of China Agricultural University of China (i) | 355 | 321 | ||||||
Online Education School of Guangxi Radio and TV University (i) | — | 40 | ||||||
Online Education School of Fujian Radio and TV University (i) | 46 | 47 | ||||||
Online Education School of Beijing Language and Culture University (i) | — | 728 | ||||||
Zhejiang Normal University (i) | 146 | 175 | ||||||
35,507 | 52,099 | |||||||
(i) The amounts represented cash collected on behalf of the related parties. | ||||||||
(ii) The amount primarily represents royalty fees to be paid. | ||||||||
(iii) The amount represents dividend declared but not paid as of December 31, 2013. |
ORGANIZATION_AND_PRINCIPAL_ACT2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 16, 2012 | Sep. 28, 2012 | Sep. 25, 2012 | Dec. 31, 2013 |
USD ($) | CNY | CNY | CNY | Nominee shareholders of the VIE | Consolidated VIE | Consolidated VIE | Consolidated VIE | Guangzhou Hongcheng | Guangxi Hongcheng | Beijing Xuezhi | Hongcheng Technology | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | Hongcheng Education | |||||
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of exclusive technical consulting and services agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Automatic renewal term of agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Interest free loan to nominee shareholders of the VIE | ' | ' | ' | ' | 54,200 | ' | ' | ' | ' | ' | ' | ' |
Term of loan to nominee shareholders of the VIE | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' |
Sale of subsidiary | ' | ' | 5,026 | ' | ' | ' | ' | ' | 4,000 | 1,020 | 6 | ' |
Carrying amounts of net assets (liabilities) disposed in sale of subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | 3,123 | 126 | -420 | ' |
Gain on disposal of subsidiaries | ' | ' | 2,197 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $92,380 | 559,240 | 504,052 | 453,116 | ' | 102,931 | 108,751 | 95,880 | ' | ' | ' | ' |
Percent of total net revenues attributable to the VIE and its subsidiaries | ' | ' | ' | ' | ' | 19.00% | 22.00% | 22.00% | ' | ' | ' | ' |
Percentage of consolidated total assets | ' | ' | ' | ' | ' | 17.00% | 21.00% | ' | ' | ' | ' | ' |
Percentage of consolidated total liabilities | ' | ' | ' | ' | ' | 26.00% | 17.00% | ' | ' | ' | ' | ' |
ORGANIZATION_AND_PRINCIPAL_ACT3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 7-Mar-05 |
Place of incorporation | 'PRC |
CMR Web | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 29-Jul-99 |
Percentage of legal ownership held by parent | 70.00% |
Place of incorporation | 'PRC |
Hongcheng Technology | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 31-Jul-00 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Zhongnongda Networks | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 30-Oct-01 |
Percentage of legal ownership held by parent | 55.00% |
Place of incorporation | 'PRC |
Hongcheng Liye | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 15-Apr-03 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Dongcai | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 4-Jun-03 |
Percentage of legal ownership held by parent | 70.00% |
Place of incorporation | 'PRC |
WITT Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 4-Jul-03 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
BJ-WITT | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 4-Jul-03 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'BVI |
Chongda | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 24-Dec-03 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Beijing BCIT | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 13-Jan-05 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Gotop Hongcheng | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 26-Dec-05 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
BJ-BCIT | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 10-Feb-06 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'BVI |
Yuancheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 31-Mar-06 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Tianjin Gaotuo Hongcheng | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 26-Jun-06 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Beiyuda | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 26-Sep-06 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Beijing Mingdao | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 27-Mar-07 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Shanghai Shangcai | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 18-Apr-08 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Dongcai Online | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 10-Jul-08 |
Percentage of legal ownership held by parent | 70.00% |
Place of incorporation | 'PRC |
Zhonglin | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 3-Nov-08 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Fuzhou Good Teacher | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 7-Dec-09 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Hongyuanboxue | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 24-Aug-10 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Hongcheng Xueyuan | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 31-Oct-10 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Nanning Hongcheng Xueyuan | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 31-Oct-10 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Hangzhou Hongcheng Xueyuan | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 31-Oct-10 |
Percentage of legal ownership held by parent | 60.00% |
Place of incorporation | 'PRC |
Haidian Trainning School | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 7-Apr-11 |
Percentage of legal ownership held by parent | 55.00% |
Place of incorporation | 'PRC |
Zhejiang Hongcheng | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 30-Jun-11 |
Percentage of legal ownership held by parent | 51.00% |
Place of incorporation | 'PRC |
Hongcheng Online | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 12-Apr-13 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'HongKong |
Chongqing Fahong | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 7-Feb-13 |
Percentage of legal ownership held by parent | 100.00% |
Place of incorporation | 'PRC |
Gotop Electronic | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 29-Nov-95 |
Place of incorporation | 'PRC |
Xiandai Technology | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 7-Nov-00 |
Place of incorporation | 'PRC |
Pingdingshan | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 3-Sep-02 |
Place of incorporation | 'PRC |
Anqing Foreign Language | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 2-Aug-04 |
Place of incorporation | 'PRC |
Tianchang | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 6-Sep-05 |
Percentage of legal ownership held by parent | 72.50% |
Place of incorporation | 'PRC |
South Campus | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 28-Dec-05 |
Percentage of legal ownership held by parent | 54.00% |
Place of incorporation | 'PRC |
Hongcheng YoYo | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 3-Nov-09 |
Place of incorporation | 'PRC |
Anqing Daguan | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 15-Apr-10 |
Place of incorporation | 'PRC |
Pingdingshan Training Centre | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 11-Aug-10 |
Place of incorporation | 'PRC |
Xicheng Training School | Primary beneficiary | Hongcheng Education | ' |
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' |
Date of incorporation or acquisition | 6-Jan-11 |
Place of incorporation | 'PRC |
ORGANIZATION_AND_PRINCIPAL_ACT4
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 3) | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | Consolidated VIE | Consolidated VIE | Consolidated VIE | |
CNY | CNY | CNY | |||||||
creditor | |||||||||
Subsidiaries Variable Interest Entities And Subsidiaries Of Variable Interest Entities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $71,336 | 431,844 | 385,922 | 273,746 | $63,750 | 190,493 | 21,682 | 36,772 | ' |
Accounts receivable | 4,388 | 26,561 | 34,917 | ' | ' | ' | 1,342 | 9,313 | ' |
Prepaid expenses and other current assets | 3,731 | 22,584 | 23,455 | ' | ' | ' | 4,319 | 6,714 | ' |
Total current assets | 150,642 | 911,938 | 829,652 | ' | ' | ' | 47,640 | 67,023 | ' |
Property and equipment, net | 38,416 | 232,558 | 238,563 | ' | ' | ' | 145,726 | 152,756 | ' |
Land use rights, net | 4,203 | 25,441 | 26,049 | ' | ' | ' | 25,441 | 26,049 | ' |
Total assets | 221,479 | 1,340,770 | 1,242,253 | ' | ' | ' | 224,380 | 255,170 | ' |
Total liabilities | 112,019 | 678,129 | 395,151 | ' | ' | ' | 175,525 | 206,098 | ' |
Net revenue | 92,380 | 559,240 | 504,052 | 453,116 | ' | ' | 102,931 | 108,751 | 95,880 |
Net (loss) income | 16,518 | 99,998 | 83,309 | 56,573 | ' | ' | 4,415 | -2,247 | -6,131 |
Net cash (used in) provided by operating activities | 27,325 | 165,422 | 122,296 | 124,458 | ' | ' | -9,488 | 20,339 | 16,487 |
Net cash used in investing activities | -7,424 | -44,944 | 10,774 | -22,249 | ' | ' | -5,602 | -947 | -19,656 |
Net cash used in financing activities | -12,348 | -74,754 | -20,947 | -19,036 | ' | ' | ' | ' | -1,479 |
Consolidated VIE assets held as collateral for VIE obligations | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Number of creditors (or beneficial interest holders) having recourse to the general credit of the Company or any of its consolidated subsidiaries | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basis of presentation | ' | ' | ' |
Rate used to convert RMB to USD | 6.0537 | ' | ' |
Land use rights | ' | ' | ' |
Land use rights, useful life | '50 years | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rebate rate | 14.00% | ' | ' |
Value added tax rebates granted | 16,223 | 12,237 | 8,260 |
Advertising costs | ' | ' | ' |
Advertising costs | 4,919 | 3,801 | 13,794 |
Foreign currency risk | ' | ' | ' |
Cash, cash equivalents and term deposits denominated in Renminbi | 563,167 | 476,425 | ' |
Cash, cash equivalents and term deposits denominated in Renminbi, percentage | 99.00% | 99.70% | ' |
Six subsidiaries | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rate | 6.00% | ' | ' |
Seven subsidiaries | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rate | 3.00% | ' | ' |
Two subsidiaries | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rate | 6.00% | ' | ' |
One subsidiary | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rate | 3.00% | ' | ' |
Online degree programs | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Business tax rate | 5.60% | ' | ' |
Value added tax rate | 17.00% | ' | ' |
Online tutoring programs | ' | ' | ' |
Business and value added taxes | ' | ' | ' |
Value added tax rate | 17.00% | ' | ' |
Online tutoring programs | Minimum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Access period for online education services | '1 month | ' | ' |
Online tutoring programs | Maximum | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Access period for online education services | '3 years | ' | ' |
Private primary and secondary schools | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Length of semester | '6 months | ' | ' |
International and elite curriculum programs | ' | ' | ' |
Revenue recognition | ' | ' | ' |
Length of semester | '6 months | ' | ' |
Business and value added taxes | ' | ' | ' |
Business tax rate | 5.60% | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings | ' |
Property, Plant and Equipment | ' |
Property and equipment, estimated useful life | '20 years |
Furniture, fixtures and equipment | Minimum | ' |
Property, Plant and Equipment | ' |
Property and equipment, estimated useful life | '3 years |
Furniture, fixtures and equipment | Maximum | ' |
Property, Plant and Equipment | ' |
Property and equipment, estimated useful life | '5 years |
Motor vehicles | ' |
Property, Plant and Equipment | ' |
Property and equipment, estimated useful life | '5 years |
Leasehold improvements | ' |
Property, Plant and Equipment | ' |
Estimated useful lives | 'Shorter of the lease term or the estimated useful lives |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended |
Dec. 31, 2013 | |
Service agreements with universities and high schools | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '26 years |
Operating platforms used to provide online education service | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '6 years |
Customer base | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '4 years |
Online coursewares | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '3 years |
Partnership with agencies | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '5 years |
Exclusive partnership with universities | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '16 years |
Operational right of private school | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '22 years |
Partnership with local institutes | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '7 years 2 months 12 days |
Acquired right to use trademark | ' |
Acquired Finite-Lived Intangible Assets | ' |
Weighted average amortization period of intangible asset | '2 years 2 months 12 days |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended | |||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated net revenues | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | Consolidated accounts receivable and amounts due from related parties | |
Customer A | Customer A | Customer A | Customer B | Customer B | Customer B | Customer C | Customer C | Customer C | Customer D | Customer D | Customer D | Customer A | Customer A | Customer B | Customer B | Customer C | Customer C | Customer D | Customer D | |||||
Maximum | Maximum | Maximum | Maximum | |||||||||||||||||||||
Concentration of credit risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | $43 | 261 | 340 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration by customer as a percentage of total amount | ' | ' | ' | ' | 16.00% | 14.00% | 13.00% | 11.00% | 11.00% | 11.00% | 13.00% | 10.00% | 10.00% | 10.00% | 11.00% | 10.00% | 39.00% | 36.00% | 11.00% | 10.00% | 12.00% | 24.00% | 28.00% | 25.00% |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
ACCOUNTS RECEIVABLE | ' | ' | ' | ' |
Accounts receivable | ' | 26,561 | 34,917 | ' |
Accounts receivable, net | 4,388 | 26,561 | 34,917 | ' |
Movement of allowance for doubtful accounts | ' | ' | ' | ' |
Charged to expenses | 43 | 261 | 340 | 0 |
Written off | ' | -261 | -340 | ' |
PREPAID_EXPENSES_AND_OTHER_CUR2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | ' | ' | ' |
Staff advances and others | ' | 7,826 | 4,878 |
Advance to an online school | ' | ' | 341 |
Prepaid rental expense | ' | 3,997 | 2,872 |
Prepaid advertisement expense | ' | 364 | 601 |
Prepaid courseware use right | ' | 241 | 766 |
Prepaid professional fees | ' | 510 | 2,113 |
Advances to suppliers | ' | 3,372 | 4,801 |
Interest receivables from term deposits | ' | 1,996 | 953 |
VAT rebate receivable | ' | 4,278 | 6,130 |
Prepaid expenses and other current assets | $3,731 | 22,584 | 23,455 |
SHORTTERM_INVESTMENTS_Details
SHORT-TERM INVESTMENTS (Details) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | 31-May-11 | 31-May-10 | Mar. 31, 2012 | Mar. 31, 2011 | Apr. 30, 2012 | Apr. 30, 2011 | 31-May-12 | Dec. 31, 2011 | 31-May-11 |
USD ($) | CNY | USD ($) | CNY | Trust Fund Managed By Hainan Airline Group | Trust Fund Managed By Hainan Airline Group | Trust Fund Managed By Hainan Airline Group | Trust Fund Managed By Zhongrong Trust Co., initial investment May 2010 | Trust Fund Managed By Zhongrong Trust Co., initial investment May 2010 | Trust Fund Managed By Zhongrong Trust Co., initial investment March 2011 | Trust Fund Managed By Zhongrong Trust Co., initial investment March 2011 | Trust Fund Managed By Minmetal International Trust Co., initial investment April 2011 | Trust Fund Managed By Minmetal International Trust Co., initial investment April 2011 | Trust Fund Managed By Minmetal International Trust Co., initial investment May 2011 | Trust Fund Managed By Minmetal International Trust Co., initial investment May 2011 | Trust Fund Managed By Minmetal International Trust Co., initial investment May 2011 | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
SHORT-TERM INVESTMENTS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Held to maturity investments | ' | ' | ' | ' | ' | ' | ' | ' | 8,000 | ' | 6,000 | ' | 3,000 | ' | ' | 8,000 |
Investment income | 234 | 1,460 | 234 | 1,460 | ' | ' | ' | 646 | ' | 605 | ' | 241 | ' | 388 | 387 | ' |
Equity method investment | ' | ' | ' | 8,000 | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | ' | 12.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share of earnings on investment | $115 | 692 | ' | 261 | 480 | 480 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHORTTERM_INVESTMENTS_Details_
SHORT-TERM INVESTMENTS (Details 2) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
SHORT-TERM INVESTMENTS | ' | ' | ' |
Available-for-sale investments | ' | 7,127 | 15,575 |
Equity method investment | ' | ' | 8,000 |
Short-term investments | $1,177 | 7,127 | 23,575 |
SHORTTERM_INVESTMENTS_Details_1
SHORT-TERM INVESTMENTS (Details 3) (CNY) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
SHORT-TERM INVESTMENTS | ' | ' |
Cost | 8,627 | 15,939 |
Exchange difference | -1,674 | -1,483 |
Accumulated unrealized (loss) gains | 174 | 1,119 |
Net carrying amount | 7,127 | 15,575 |
Corporate Bonds | ' | ' |
SHORT-TERM INVESTMENTS | ' | ' |
Cost | 8,627 | 15,939 |
Exchange difference | -1,674 | -1,483 |
Accumulated unrealized (loss) gains | 174 | 1,119 |
Net carrying amount | 7,127 | 15,575 |
Amount of corporate bonds sold during the period | 7,312 | 7,717 |
Investment gain | 497 | 226 |
LONGTERM_INVESTMENT_Details
LONG-TERM INVESTMENT (Details) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2012 |
USD ($) | CNY | CNY | Shanghai Shihong Technology Co., Ltd. | Shanghai Shihong Technology Co., Ltd. | Shanghai Shihong Technology Co., Ltd. | Shanghai Normal University | Shanghai Normal University | |
CNY | CNY | CNY | Shanghai Shihong Technology Co., Ltd. | Shanghai Shihong Technology Co., Ltd. | ||||
seat | seat | CNY | ||||||
Long-term investment | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid to acquire entity | ' | ' | 8,000 | ' | ' | 1,020 | ' | 980 |
Ownership interest | ' | ' | ' | ' | ' | 51.00% | ' | 49.00% |
Number of seats on board of directors of investment controlled by the entity | ' | ' | ' | 3 | ' | ' | 2 | ' |
Number of seats on board of directors of investment | ' | ' | ' | 5 | ' | ' | ' | ' |
Percentage of directors of investment needed for approval of operating budget and appointment and dismissal of general manager | ' | ' | ' | 67.00% | ' | ' | ' | ' |
Share of (loss) gain on investment | $115 | 692 | 261 | 212 | -219 | ' | ' | ' |
LAND_USE_RIGHTS_NET_Details
LAND USE RIGHTS, NET (Details) | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Land Use Right | Land Use Right | Land Use Right | |
CNY | CNY | CNY | |||||
Land Use Right | ' | ' | ' | ' | ' | ' | ' |
Land use rights | ' | 134,181 | 134,181 | ' | 30,287 | 30,287 | ' |
Less: accumulated amortization | ' | -52,123 | -49,040 | ' | -4,846 | -4,238 | ' |
Land use rights, net | ' | 47,100 | 50,183 | ' | 25,441 | 26,049 | ' |
Amortization expenses | 509 | 3,083 | 3,903 | 4,171 | 608 | 608 | 608 |
2014 | ' | 2,929 | ' | ' | 608 | ' | ' |
2015 | ' | 2,892 | ' | ' | 608 | ' | ' |
2016 | ' | 2,720 | ' | ' | 608 | ' | ' |
2017 | ' | 2,512 | ' | ' | 608 | ' | ' |
2018 | ' | 2,512 | ' | ' | 608 | ' | ' |
PROPERTY_AND_EQUIPMENT_NET_Det
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | CNY | Buildings | Buildings | Furniture, fixtures and equipment | Furniture, fixtures and equipment | Motor vehicles | Motor vehicles | Leasehold improvements | Leasehold improvements | Construction in progress | Construction in progress | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
Property, Plant and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, gross | ' | 358,436 | 347,184 | ' | 245,443 | 241,560 | 78,580 | 73,991 | 12,855 | 12,251 | 21,558 | 19,382 | ' | ' |
Less: accumulated depreciation and amortization | ' | -135,064 | -113,448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment excluding construction in progress, net | ' | 223,372 | 233,736 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | 38,416 | 232,558 | 238,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,186 | 4,827 |
Depreciation and amortization of property and equipment | $4,229 | 25,599 | 25,377 | 23,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUIRED_INTANGIBLE_ASSETS_NET2
ACQUIRED INTANGIBLE ASSETS, NET (Details) | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
CNY | CNY | CNY | USD ($) | Trade name | Trade name | Service agreements with universities and high schools | Service agreements with universities and high schools | Operating platforms used to provide online education service | Operating platforms used to provide online education service | Customer base | Customer base | Online coursewares | Online coursewares | Partnership with agencies | Partnership with agencies | Exclusive partnership with universities | Exclusive partnership with universities | Exclusive partnership with universities | Operational right of private school | Operational right of private school | Partnership with local institutes | Partnership with local institutes | Reacquired right to use trademark | Reacquired right to use trademark | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
item | |||||||||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount | 134,181 | 134,181 | ' | ' | ' | ' | 89,235 | 89,235 | 759 | 759 | 11,708 | 11,708 | 3,623 | 3,623 | 356 | 356 | ' | 21,356 | 21,356 | 4,464 | 4,464 | 2,380 | 2,380 | 300 | 300 |
Accumulated amortization | -52,123 | -49,040 | ' | ' | ' | ' | -19,103 | -20,318 | -759 | -759 | -11,708 | -11,708 | -3,623 | -3,623 | -356 | -353 | ' | -11,732 | -10,453 | -2,275 | -2,021 | -1,052 | -720 | -300 | -300 |
Accumulated impairment | -34,958 | -34,958 | ' | ' | ' | ' | -34,958 | -34,958 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net carrying amount | 47,100 | 50,183 | ' | ' | ' | ' | 35,174 | 33,959 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | 9,624 | 10,903 | 2,189 | 2,443 | 1,328 | 1,660 | ' | ' |
Net carrying amount | ' | ' | ' | ' | 4,316 | 4,316 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount | 138,497 | 138,497 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated impairment | -34,958 | -34,958 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets, net | 51,416 | 54,499 | ' | 8,493 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of intangible assets disposed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of assets to be disposed of | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 315 | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received for sale of intangible assets | ' | 315 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 315 | ' | ' | ' | ' | ' | ' | ' | ' |
Gain or loss from disposal of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment loss | 0 | ' | 0 | ' | ' | ' | 5,901 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUIRED_INTANGIBLE_ASSETS_NET3
ACQUIRED INTANGIBLE ASSETS, NET (Details 2) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
ACQUIRED INTANGIBLE ASSETS, NET | ' | ' | ' | ' |
Amortization expenses | $509 | 3,083 | 3,903 | 4,171 |
2014 | ' | 2,929 | ' | ' |
2015 | ' | 2,892 | ' | ' |
2016 | ' | 2,720 | ' | ' |
2017 | ' | 2,512 | ' | ' |
2018 | ' | 2,512 | ' | ' |
GOODWILL_Details
GOODWILL (Details) | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
CNY | CNY | CNY | USD ($) | Online degree programs | Online degree programs | Private primary and secondary schools | Private primary and secondary schools | Online tutoring programs | Online tutoring programs | International and elite curriculum programs | International and elite curriculum programs | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
Goodwill | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross amount: Beginning balance | 100,483 | ' | ' | ' | 17,960 | 17,960 | 1,924 | 1,924 | 20,798 | 20,798 | 59,801 | 59,801 |
Gross amount: Ending balance | 100,483 | 100,483 | ' | ' | 17,960 | 17,960 | 1,924 | 1,924 | 20,798 | 20,798 | 59,801 | 59,801 |
Accumulated impairment, Beginning balance | -57,228 | ' | ' | ' | ' | ' | -1,924 | -1,924 | ' | ' | -55,304 | -55,304 |
Accumulated impairment, Ending balance | -57,228 | -57,228 | ' | ' | ' | ' | -1,924 | -1,924 | ' | ' | -55,304 | -55,304 |
Goodwill, net | 43,255 | 43,255 | ' | 7,145 | 17,960 | 17,960 | ' | ' | 20,798 | 20,798 | 4,497 | 4,497 |
Period of cash flow forecasts used in goodwill impairment test | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes during the year | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
BANK_BORROWINGS_Details
BANK BORROWINGS (Details) | 12 Months Ended | 1 Months Ended | 4 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Jan. 31, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Jan. 31, 2013 | Feb. 01, 2013 | Feb. 01, 2013 | Jan. 31, 2013 | Feb. 01, 2013 | Jan. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
USD ($) | CNY | CNY | Revolving loan | Revolving loan | Revolving loan | Revolving loan | Facility 1 | Facility 1 | Facility 1 | Facility 2 | Facility 2 | Facility 2 | Facility agreement | Facility agreement | |
Credit Agricole (Suisse) SA | Credit Agricole (Suisse) SA | Credit Agricole (Suisse) SA | Credit Agricole (Suisse) SA | BEA | BEA | BEA | BEA | BEA | BEA | CMB | CMB | ||||
USD ($) | CNY | USD ($) | CNY | CNY | USD ($) | CNY | CNY | USD ($) | USD ($) | USD ($) | CNY | ||||
Bank borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit, maximum borrowing amount | ' | ' | ' | $998 | 6,211 | ' | ' | 160,000 | ' | ' | ' | ' | $10,000 | $36,000 | ' |
Debt instrument interest rate (as a percent) | ' | ' | ' | 1.21% | 1.21% | ' | ' | 4.50% | ' | ' | 4.45% | ' | ' | ' | ' |
Amount withdrawn | ' | ' | ' | ' | ' | ' | ' | ' | 26,389 | 159,750 | ' | 10,000 | ' | ' | ' |
Amount cancelled | ' | ' | ' | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' | ' |
Cash pledge amount | ' | ' | ' | 1,608 | 10,008 | ' | ' | 95,850 | ' | ' | ' | ' | ' | 30,000 | ' |
Amount repaid | ' | ' | ' | ' | ' | 333 | 2,037 | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate | ' | ' | ' | ' | ' | ' | ' | 'BEA CNY Prime Rate | ' | ' | 'three-month LIBOR | ' | ' | 'three-month LIBOR | ' |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | 4.20% | ' | ' | 2.79% | ' |
Debt instrument term | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '1 year | ' | ' | '3 years | ' |
Cash pledge term | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | '1 year | ' |
LIBOR rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' |
Minimum daily average balance required to maintain an RMB deposit with BEA Beijing branch | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' |
Property and equipment | 38,416 | 232,558 | 238,563 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,575 |
Changes in the balances of bank borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal of bank borrowings during the year | ' | 448,671 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of financing cost | -1,414 | -8,557 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued interest expenses and amortization of debt discount | ' | 12,849 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of principle during the year | ' | -223,040 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of interest during the year | -1,381 | -8,360 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange difference | ' | -3,624 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balances | ' | 217,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | 670 | 4,056 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-current | 35,331 | 213,883 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balances | ' | 217,939 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCRUED_EXPENSES_AND_OTHER_CUR2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ' | ' | ' |
Advances from students | ' | 11,850 | 13,804 |
Accrued expenses | ' | 22,815 | 13,730 |
Accrued professional fees | ' | 456 | 1,168 |
Accrued employee payroll and welfare benefits | ' | 74,246 | 67,979 |
Tuition fees payable to universities | ' | 17,877 | 10,324 |
Other payables | ' | 10,253 | 6,553 |
Accrued expenses and other current liabilities | $22,713 | 137,497 | 113,558 |
OTHER_TAXES_PAYABLE_Details
OTHER TAXES PAYABLE (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
OTHER TAXES PAYABLE | ' | ' | ' |
VAT payable | ' | 16,526 | 10,618 |
Business taxes payable | ' | 18,544 | 15,691 |
Individual income taxes withheld | ' | 1,143 | 944 |
Real estate taxes payable | ' | 41 | 41 |
Other taxes payable | $5,989 | 36,254 | 27,294 |
SHARE_OPTION_PLAN_Details
SHARE OPTION PLAN (Details) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 14, 2012 | Feb. 14, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2008 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2008 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 10, 2000 | Aug. 10, 2000 | Dec. 13, 2004 | Mar. 31, 2007 | Mar. 31, 2007 | Mar. 31, 2007 | Nov. 30, 2007 | Nov. 30, 2007 | Nov. 30, 2007 | Nov. 30, 2007 | Aug. 18, 2010 | Dec. 31, 2013 | Aug. 18, 2010 |
USD ($) | CNY | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | American Depository Shares | Employees | Employees | Employees | Original Plan | Original Plan | Amended Plan | Second Amended Plan | Second Amended Plan | Second Amended Plan | Equity Incentive Plan | Equity Incentive Plan | Equity Incentive Plan | Equity Incentive Plan | Second Amended Equity Incentive Plan | Second Amended Equity Incentive Plan | Second Amended Equity Incentive Plan | |||
item | Employees and non-employees | Employees and non-employees | Employees and non-employees | CNY | CNY | CNY | Options | Options | Greater Than 10% Shareholder | Options | Minimum | Greater Than 10% Shareholder | Greater Than 10% Shareholder | Maximum | ||||||||||||
Minimum | Maximum | Minimum | Maximum | |||||||||||||||||||||||
SHARE OPTION PLAN | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of ordinary shares eligible for option share grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price as a percentage of fair market value of common stock on date of grant | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 110.00% | ' | ' | 100.00% | 110.00% | ' | ' | ' | ' |
Vesting period for options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | '3 years | ' | '3 years | ' | ' | ' | ' | '4 years |
Ordinary shares eligible for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,846,621 | 12,846,621 | ' | ' | 12,846,621 | ' | ' | ' | 16,071,593 | ' | ' |
Shareholder ownership interest subject to exercise price limitations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Annual increase in number of shares issuable under the plan relative to the number of outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | 2.50% | ' | ' |
Period during which options are exercisable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' |
Options outstanding | ' | ' | 6,699,624 | 9,128,105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,699,624 | ' |
Options to purchase ordinary shares available to future grants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,110,061 | ' |
Number of shares issued to depositary bank to be issued upon exercise of share options | ' | ' | ' | ' | 8,344,305 | ' | ' | ' | ' | 2,781,435 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of ordinary shares issued due to exercises | ' | ' | 1,873,029 | ' | ' | ' | 793,029 | 837,204 | 116,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares held by depositary bank for future issuance | ' | ' | ' | ' | ' | 5,210,658 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of underwater options | 1,031,000 | 1,031,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option price (in dollars per ADSs) | $5.85 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees affected by plan modification | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total incremental compensation cost | ' | 604 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 611 | 3,804 | 3,446 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHARE_OPTION_PLAN_Details_2
SHARE OPTION PLAN (Details 2) (Options, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Options | ' | ' | ' |
SHARE OPTION PLAN | ' | ' | ' |
Weighted average volatility rate | ' | ' | 47.60% |
Weighted average risk-free interest rate | ' | ' | 1.18% |
Weighted average expected option life (years) | ' | ' | '6 years |
Weighted average fair value of underlying ordinary shares | ' | ' | $0.84 |
Options granted during the period | 0 | 0 | ' |
Weighted average dividend yield | 0.00% | ' | ' |
SHARE_OPTION_PLAN_Details_3
SHARE OPTION PLAN (Details 3) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
SHARE OPTION PLAN | ' |
Number of options, Outstanding at beginning of year | 9,128,105 |
Number of options, Exercised | -1,873,029 |
Number of options, Forfeited | -555,400 |
Number of options, Expired | -52 |
Number of options, Outstanding at end of year | 6,699,624 |
Number of options, Vested and expected to vest as of December 31, 2013 | 6,699,624 |
Number of options, Exercisable as of December 31, 2013 | 6,589,624 |
Weighted average exercise price per share, Outstanding at beginning of year | $1.48 |
Weighted average exercise price per share, Exercised | $1.10 |
Weighted average exercise price per share, Forfeited | $2.06 |
Weighted average exercise price per share, Expired | $1.31 |
Weighted average exercise price per share, Outstanding at end of year | $1.54 |
Weighted average exercise price per share, Vested and expected to vest as of December 31, 2013 | $1.54 |
Weighted average exercise price per share, Exercisable as of December 31, 2013 | $1.49 |
Weighted average grant-date fair value of ordinary shares, Outstanding at beginning of year | $1.60 |
Weighted average grant-date fair value of ordinary shares, Exercised | $1.21 |
Weighted average grant-date fair value of ordinary shares, Forfeited | $2.17 |
Weighted average grant-date fair value of ordinary shares, Expired | $1.42 |
Weighted average grant-date fair value of ordinary shares, Outstanding at end of year | $1.66 |
Weighted-average grant-date fair value of ordinary shares, Vested and expected to vest as of December 31, 2013 | $1.66 |
Weighted average grant-date fair value of ordinary shares, Exercisable as of December 31, 2013 | $1.65 |
SHARE_OPTION_PLAN_Details_4
SHARE OPTION PLAN (Details 4) | 12 Months Ended | |||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | CNY | CNY | CNY | $0.86 | $1.09-1.85 | $1.86-2.85 | Options | |
USD ($) | USD ($) | USD ($) | CNY | |||||
SHARE OPTION PLAN | ' | ' | ' | ' | ' | ' | ' | ' |
Average exercise price | ' | ' | ' | ' | $0.86 | ' | ' | ' |
Average exercise price, lower limit | ' | ' | ' | ' | ' | $1.09 | $1.86 | ' |
Average exercise price, upper limit | ' | ' | ' | ' | ' | $1.85 | $2.85 | ' |
Options outstanding, Number outstanding | 6,699,624 | 6,699,624 | ' | ' | 961,600 | 5,155,887 | 582,137 | ' |
Options outstanding, Weighted average remaining contractual life | '2 years 7 months 17 days | '2 years 7 months 17 days | ' | ' | '11 months 5 days | '2 years 6 months 25 days | '5 years 10 months 13 days | ' |
Options outstanding, Weighted average exercise price | $1.54 | ' | ' | ' | $0.86 | $1.56 | $1.95 | ' |
Options outstanding, Weighted average intrinsic value | $0.77 | ' | ' | ' | $1.41 | $0.73 | $0.32 | ' |
Options exercisable, Number exercisable | 6,589,624 | 6,589,624 | ' | ' | 961,600 | 5,045,887 | 582,137 | ' |
Options exercisable. Weighted average remaining contractual life | '2 years 6 months 14 days | '2 years 6 months 14 days | ' | ' | '11 months 5 days | '2 years 5 months 16 days | '5 years 10 months 13 days | ' |
Options exercisable, Weighted average exercise price | $1.49 | ' | ' | ' | $0.86 | $1.56 | $1.95 | ' |
Options exercisable, Weighted average intrinsic value | $0.78 | ' | ' | ' | $1.41 | $0.71 | $0.32 | ' |
Total intrinsic value of options exercised | ' | 13,141 | 5,103 | 840 | ' | ' | ' | ' |
Unrecognized share-based compensation cost related to share options | ' | ' | ' | ' | ' | ' | ' | 466 |
Unrecognized compensation cost, recognition period | ' | ' | ' | ' | ' | ' | ' | '9 months 29 days |
SHARE_OPTION_PLAN_Details_5
SHARE OPTION PLAN (Details 5) (Restricted Stock Units (RSUs)) | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2012 | 31-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2012 | Nov. 30, 2012 |
USD ($) | CNY | CNY | CNY | Third year after issuance | Fourth year after issuance | |||
November 2012 Awards | November 2012 Awards | |||||||
SHARE OPTION PLAN | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at beginning of year | ' | ' | 3,313,000 | 3,313,000 | ' | ' | ' | ' |
Granted | 1,599,000 | 124,000 | ' | ' | ' | ' | ' | ' |
Forfeited | ' | ' | -222,000 | -222,000 | ' | ' | ' | ' |
Outstanding at end of year | ' | ' | 3,091,000 | 3,091,000 | ' | ' | ' | ' |
Vested and expected to vest at December 31, 2013 | ' | ' | 2,376,240 | 2,376,240 | ' | ' | ' | ' |
Outstanding at beginning of year | ' | ' | $2.08 | ' | ' | ' | ' | ' |
Forfeited | ' | ' | $2.16 | ' | ' | ' | ' | ' |
Outstanding at end of year | ' | ' | $2.07 | ' | ' | ' | ' | ' |
Vested and expected to vest at December 31, 2013 | ' | ' | $2.02 | ' | ' | ' | ' | ' |
Vesting percentage | ' | ' | ' | ' | ' | ' | 75.00% | 25.00% |
Share-based compensation expenses | ' | ' | ' | 9,276 | 4,454 | 3,037 | ' | ' |
Unrecognized compensation cost related to restricted share units | ' | ' | ' | 11,219 | ' | ' | ' | ' |
Unrecognized compensation cost, recognition period | ' | ' | '1 year 11 months 23 days | '1 year 11 months 23 days | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | 25.00% | 25.00% |
CMR Web-learning Co., Ltd. | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
CMR Web-learning Co., Ltd. | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Hongcheng Liye | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Liye | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Liye | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Zhongnongda Networks | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Zhongnongda Networks | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Beiyuda | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Beiyuda | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Gotop Hongcheng | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Gotop Hongcheng | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Dongcai | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Dongcai | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Hongcheng Technology | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Hongcheng Technology | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Chongda | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Chongda | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
Zhejiang Hongcheng | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 12.50% | ' | ' |
Zhejiang Hongcheng | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 12.50% | ' | ' |
High And New Technology Enterprise | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 15.00% | ' | ' |
High And New Technology Enterprise | CMR Web-learning Co., Ltd. | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Hongcheng Liye | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Hongcheng Education | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Zhongnongda Networks | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Beiyuda | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Gotop Hongcheng | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Dongcai | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | ' | '3 years |
High And New Technology Enterprise | Hongcheng Technology | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Renewal period for favorable tax status | ' | '3 years | ' |
High And New Technology Enterprise Located In Beijing | Gotop Hongcheng | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | ' | ' | 7.50% |
Approval From Local Tax Bureau | Beiyuda | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | ' | 7.50% | 7.50% |
Software enterprise | Zhejiang Hongcheng | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 12.50% | ' | ' |
Software enterprise | Zhejiang Hongcheng | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 12.50% | ' | ' |
Software enterprise | Zhejiang Hongcheng | 2016 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rate | 12.50% | ' | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | 25.00% | 25.00% |
CMR Web-learning Co., Ltd. | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
CMR Web-learning Co., Ltd. | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
CMR Web-learning Co., Ltd. | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
CMR Web-learning Co., Ltd. | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
CMR Web-learning Co., Ltd. | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Liye | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Liye | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Liye | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Liye | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Liye | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Liye | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Education | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Education | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Hongcheng Education | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Zhongnongda Networks | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Zhongnongda Networks | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Zhongnongda Networks | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Zhongnongda Networks | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Zhongnongda Networks | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Beiyuda | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 7.50% | ' | ' |
Beiyuda | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 7.50% | ' | ' |
Beiyuda | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Beiyuda | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Beiyuda | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Gotop Hongcheng | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 7.50% | ' | ' |
Gotop Hongcheng | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Gotop Hongcheng | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Gotop Hongcheng | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Gotop Hongcheng | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Technology | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Technology | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Technology | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Technology | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Hongcheng Technology | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Dongcai | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Dongcai | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Dongcai | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Dongcai | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Dongcai | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Chongda | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Chongda | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Chongda | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Chongda | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Chongda | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 15.00% | ' | ' |
Zhejiang Hongcheng | 2011 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Zhejiang Hongcheng | 2012 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Enterprise income tax rate | 25.00% | ' | ' |
Zhejiang Hongcheng | 2013 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 0.00% | ' | ' |
Zhejiang Hongcheng | 2014 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 12.50% | ' | ' |
Zhejiang Hongcheng | 2015 | ' | ' | ' |
INCOME TAXES | ' | ' | ' |
Preferential tax rates | 12.50% | ' | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
INCOME TAXES | ' | ' | ' | ' |
Current tax | $6,159 | 37,282 | 19,939 | 23,078 |
Deferred tax (benefit) provision | -1,569 | -9,493 | 6,488 | -6,034 |
Total income tax provisions | $4,590 | 27,789 | 26,427 | 17,044 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY |
Current deferred tax assets | ' | ' | ' |
Deferred revenues | ' | 13,118 | 11,685 |
Total current deferred tax assets | ' | 13,118 | 11,685 |
Less: valuation allowance on deferred tax assets | ' | -349 | -2,114 |
Total net current deferred tax assets | ' | 12,769 | 9,571 |
Non-current deferred tax assets | ' | ' | ' |
Property and equipment | ' | 482 | 339 |
Deferred revenues | ' | 1,206 | 1,137 |
Net operating loss carry forwards | ' | 7,489 | 11,753 |
Total non-current deferred tax assets | ' | 9,117 | 13,229 |
Less: valuation allowance on deferred tax assets | ' | -5,591 | -11,144 |
Total net non-current deferred tax assets | ' | 3,586 | 2,085 |
Non-current deferred tax liabilities | ' | ' | ' |
Property and equipment | ' | 805 | 64 |
Acquired intangible assets | ' | 7,874 | 7,117 |
Amount due from related party - noncurrent | ' | ' | 6,292 |
Total deferred tax liabilities | 1,434 | 8,679 | 13,473 |
Net operating loss carryforward | ' | 54,037 | ' |
Deferred tax assets, valuation allowance | ' | 5,940 | ' |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (CNY) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES | ' | ' | ' |
Tax rate | 25.00% | 25.00% | 25.00% |
Tax holiday and preferential tax rates | -12.00% | -14.00% | -18.00% |
Effect on tax rates in different tax jurisdiction | 5.00% | 3.00% | 5.00% |
Expenses non-deductable for tax purposes | 8.00% | 7.00% | ' |
Changes in valuation allowance | -6.00% | ' | 8.00% |
Increase (decrease) in unrecognized tax benefit | 2.00% | 3.00% | 3.00% |
Effective tax rates | 22.00% | 24.00% | 23.00% |
Increase to income tax expense without tax exemption | 15,362 | 15,829 | 10,418 |
Decrease to earnings per share basic without tax exemption | 0.54 | 0.33 | 0.21 |
Decrease to earnings per share diluted without tax exemption | 0.48 | 0.31 | 0.2 |
INCOME_TAXES_Details_6
INCOME TAXES (Details 6) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
CNY | CNY | USD ($) | |
INCOME TAXES | ' | ' | ' |
Balance at beginning of year | 8,795 | 6,089 | $1,796 |
Additions based on tax positions related to the current year | 1,372 | 2,221 | ' |
Other - interest and penalty | 706 | 485 | ' |
Balance at end of year | 10,873 | 8,795 | $1,796 |
INCOME_TAXES_Details_7
INCOME TAXES (Details 7) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INCOME TAXES | ' | ' | ' |
Tax rate | 25.00% | 25.00% | 25.00% |
Withholding tax rate for entities classified as non-residents for PRC tax purpose | 10.00% | ' | ' |
Aggregate accumulated earning | 173,749 | ' | ' |
Provision for withholding tax on dividend | 0 | ' | ' |
Deferred tax liability accrued | 0 | ' | ' |
NONCONTROLLING_INTEREST_Detail
NONCONTROLLING INTEREST (Details) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
NONCONTROLLING INTEREST | ' | ' | ' | ' |
Net income generated by subsidiaries | ' | 119,430 | 108,998 | 97,376 |
Net income attributed to noncontrolling interest | $8,178 | 49,500 | 45,338 | 39,752 |
Percent of net income generated by subsidiaries | 41.40% | 41.40% | 41.60% | 40.80% |
Percent of net income attributed to noncontrolling interest | 49.50% | 49.50% | 54.40% | 70.30% |
NONCONTROLLING_INTEREST_Detail1
NONCONTROLLING INTEREST (Details 2) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
NONCONTROLLING INTEREST | ' | ' | ' | ' |
Beginning Balance | ' | 196,911 | 167,253 | 133,485 |
Net income attributed to noncontrolling interest | 8,178 | 49,500 | 45,338 | 39,752 |
Capital injection by noncontrolling shareholders | ' | ' | ' | 2,960 |
Foreign currency translation adjustments | ' | 5,037 | 2,498 | 6,268 |
Distributions paid to noncontrolling interests | ' | -25,009 | -17,321 | -15,212 |
Disposal of the subsidiaries | ' | ' | -857 | ' |
Ending Balance | $37,405 | 226,439 | 196,911 | 167,253 |
NET_INCOME_PER_SHARE_Details
NET INCOME PER SHARE (Details) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
NET INCOME PER SHARE | ' | ' | ' | ' |
Net income attributable to ChinaEdu Corporation (numerator) | ' | 50,498 | 37,971 | 16,821 |
Weighted average ordinary shares outstanding used in computing basic net income per share | 28,250,473 | 28,250,473 | 47,523,375 | 47,453,930 |
Incremental weighted average ordinary shares from assumed conversions of share option and RSUs using treasury stock method | 3,627,443 | 3,627,443 | 2,963,858 | 3,215,299 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 31,877,916 | 31,877,916 | 50,487,233 | 50,669,229 |
Net income per share attributable to ChinaEdu Corporation-basic | $0.30 | 1.79 | 0.8 | 0.35 |
Net income per share attributable to ChinaEdu Corporation-diluted | $0.26 | 1.58 | 0.75 | 0.33 |
SHARE_REPURCHASES_Details
SHARE REPURCHASES (Details) | 12 Months Ended | 7 Months Ended | 12 Months Ended | 7 Months Ended | 6 Months Ended | 8 Months Ended | 6 Months Ended | 8 Months Ended | 7 Months Ended | 1 Months Ended | 7 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Nov. 30, 2010 | Nov. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2011 | Nov. 30, 2010 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | 31-May-11 | Dec. 31, 2012 | Dec. 31, 2012 | Apr. 30, 2010 | |
CNY | CNY | CNY | Ordinary shares | Ordinary shares | Ordinary shares | Ordinary shares | American Depository Shares | Share Repurchase Plan 2010 | Share Repurchase Plan 2010 | Share Repurchase Plan 2010 | Share Repurchase Plan 2010 | Share Repurchase Plan 2010 | Share Repurchase Plan 2010 | Share Repurchase Plan 2011 | Share Repurchase Plan 2011 | Share Repurchase Plan 2011 | Share Repurchase Plan 2011 | Share Repurchase Plan 2012 | Share Repurchase Plan 2012 | |
USD ($) | CNY | USD ($) | CNY | USD ($) | Ordinary shares | Ordinary shares | Ordinary shares | Ordinary shares | American Depository Shares | American Depository Shares | Ordinary shares | Ordinary shares | American Depository Shares | American Depository Shares | American Depository Shares | American Depository Shares | ||||
USD ($) | CNY | USD ($) | CNY | USD ($) | USD ($) | USD ($) | CNY | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||
SHARE REPURCHASES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of shares approved for repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | ' | $40,000,000 | $3,000,000 |
Shares repurchased during period | ' | ' | ' | 23,876,175 | 23,876,175 | 251,799 | 251,799 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid for repurchase of shares | ' | ' | ' | 45,955,000 | 285,603,000 | 551,000 | 3,336,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average price per share | ' | ' | ' | $1.92 | ' | ' | ' | $5.77 | $2.34 | ' | $2.16 | ' | $7.03 | $6.48 | $1.83 | ' | ' | $5.48 | ' | ' |
Repurchase and cancellation of ordinary shares (note 19) (in shares) | ' | ' | ' | 23,624,376 | 23,624,376 | ' | ' | ' | 852,144 | 852,144 | 590,205 | 590,205 | ' | ' | 376,761 | 376,761 | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares (note 17) | 285,603,000 | 4,574,000 | 8,243,000 | ' | ' | ' | ' | ' | $1,996,000 | 13,262,000 | $1,274,000 | 8,243,000 | ' | ' | $723,000 | 4,574,000 | ' | ' | ' | ' |
MAINLAND_CHINA_CONTRIBUTION_PL1
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
MAINLAND CHINA CONTRIBUTION PLAN AND PROFIT APPROPRIATION | ' | ' | ' |
Provisions for employee benefits under government-mandated defined contribution plan | 38,428 | 36,039 | 35,384 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (CNY) | 12 Months Ended | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Recurring Basis | Recurring Basis | Nonrecurring basis | Level 1 | Level 1 | |||
Recurring Basis | Recurring Basis | ||||||
FAIR VALUE MEASUREMENTS | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale investments | ' | ' | 7,127 | 15,575 | ' | 7,127 | 15,575 |
Total assets at fair value | ' | ' | 7,127 | 15,575 | ' | 7,127 | 15,575 |
Impairment loss | 0 | 0 | ' | ' | 5,901 | ' | ' |
COMMITMENTS_Details
COMMITMENTS (Details) (Fourth Middle School of Anqing, CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Royalty fee commitment | ' | ' | ' |
Royalty expenses | 1,088 | 1,088 | 1,088 |
Accrued expenses and other current liabilities | ' | ' | ' |
Royalty fee commitment | ' | ' | ' |
Deferred commitment fees | 1,238 | 1,350 | ' |
2005 to 2007 | ' | ' | ' |
Royalty fee commitment | ' | ' | ' |
Annual royalty fee commitment | 650 | ' | ' |
2008 To 2010 | ' | ' | ' |
Royalty fee commitment | ' | ' | ' |
Annual royalty fee commitment | 1,200 | ' | ' |
2011 To 2024 | ' | ' | ' |
Royalty fee commitment | ' | ' | ' |
Annual royalty fee commitment | 1,200 | ' | ' |
COMMITMENTS_Details_2
COMMITMENTS (Details 2) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
COMMITMENTS | ' | ' | ' |
Rent expenses | 15,960 | 18,091 | 14,858 |
Future minimum lease payments | ' | ' | ' |
2014 | 9,075 | ' | ' |
2015 | 4,355 | ' | ' |
2016 | 3,444 | ' | ' |
2017 | 2,002 | ' | ' |
2018 and thereafter | 1,600 | ' | ' |
Future minimum lease payments | 20,476 | ' | ' |
COMMITMENTS_Details_3
COMMITMENTS (Details 3) (CNY) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Anqing and Pingdingshan schools | Construction in progress | ' |
Long-term purchase commitment | ' |
Capital commitments | 1,075 |
School expansion | ' |
Long-term purchase commitment | ' |
Capital commitments | 65,827 |
School expansion | Jingzhou school | ' |
Long-term purchase commitment | ' |
Capital commitments | 64,752 |
School expansion | Jingzhou school | Construction in progress | ' |
Long-term purchase commitment | ' |
Capital commitments | 5,572 |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION (Details) | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
USD ($) | CNY | CNY | Operating Segment | Operating Segment | Operating Segment | Operating Segment | Operating Segment | Operating Segment | Operating Segment | Operating Segment | Corporate | Corporate | |
item | item | Online degree programs | Online degree programs | Online tutoring programs | Online tutoring programs | Private primary and secondary schools | Private primary and secondary schools | International and elite curriculum programs | International and elite curriculum programs | CNY | CNY | ||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operating segments | 4 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | $221,479 | 1,340,770 | 1,242,253 | 1,018,814 | 937,541 | 64,138 | 49,980 | 148,576 | 150,723 | 19,996 | 23,132 | 89,246 | 80,877 |
Total liabilities | $112,019 | 678,129 | 395,151 | 186,491 | 184,190 | 62,039 | 57,188 | 103,552 | 112,008 | 37,505 | 38,081 | 288,542 | 3,684 |
SEGMENT_AND_GEOGRAPHIC_INFORMA3
SEGMENT AND GEOGRAPHIC INFORMATION (Details 2) | 12 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Online degree programs | Online degree programs | Online degree programs | Online tutoring programs | Online tutoring programs | Online tutoring programs | Private primary and secondary schools | Private primary and secondary schools | Private primary and secondary schools | International and elite curriculum programs | International and elite curriculum programs | International and elite curriculum programs | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $90,513 | 547,940 | 488,322 | 435,859 | 438,375 | 393,343 | 347,107 | 31,312 | 25,266 | 25,755 | 68,747 | 59,937 | 49,653 | 9,506 | 9,776 | 13,344 |
Cost of revenue | 34,855 | 210,999 | 202,109 | 185,604 | 147,597 | 137,689 | 124,242 | 10,829 | 11,861 | 9,107 | 46,945 | 42,713 | 36,127 | 5,628 | 9,846 | 16,128 |
Gross profit (loss) | $55,658 | 336,941 | 286,213 | 250,255 | 290,778 | 255,654 | 222,865 | 20,483 | 13,405 | 16,648 | 21,802 | 17,224 | 13,526 | 3,878 | -70 | -2,784 |
SEGMENT_AND_GEOGRAPHIC_INFORMA4
SEGMENT AND GEOGRAPHIC INFORMATION (Details 3) | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Online degree programs | Online degree programs | Online degree programs | Online tutoring programs | Online tutoring programs | Online tutoring programs | Private primary and secondary schools | Private primary and secondary schools | Private primary and secondary schools | International and elite curriculum programs | International and elite curriculum programs | International and elite curriculum programs | Online education technical services, consulting services and recruiting services | Online education technical services, consulting services and recruiting services | Online education technical services, consulting services and recruiting services | |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | |||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue | $90,513 | 547,940 | 488,322 | 435,859 | 146,816 | 121,541 | 97,284 | 31,312 | 25,266 | 25,755 | 68,747 | 59,937 | 49,653 | 9,506 | 9,776 | 13,344 | ' | ' | ' |
Net revenue from third parties | ' | 256,381 | 216,520 | 186,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net revenue from related parties | ' | 291,559 | 271,802 | 249,823 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 291,559 | 271,802 | 249,823 |
SEGMENT_AND_GEOGRAPHIC_INFORMA5
SEGMENT AND GEOGRAPHIC INFORMATION (Details 4) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Online degree programs | Online degree programs | Online tutoring programs | Online tutoring programs | Private primary and secondary schools | Private primary and secondary schools | International and elite curriculum programs | International and elite curriculum programs |
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired intangible assets, net | $8,493 | 51,416 | 54,499 | 41,439 | 43,798 | 4,315 | 4,324 | 2,189 | 2,442 | 3,473 | 3,935 |
Goodwill | $7,145 | 43,255 | 43,255 | 17,960 | 17,960 | 20,798 | 20,798 | ' | ' | 4,497 | 4,497 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 291,559 | 271,802 | 249,823 |
Online Education School of Dongbei University of Finance and Economics | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 62,202 | 54,576 | 46,459 |
Online Education School of Renmin University of China | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 47,138 | 47,389 | 56,758 |
Online Education School of Chongqing University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 86,028 | 70,149 | 57,175 |
Online Education School of China Agricultural University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 44,231 | 49,394 | 49,068 |
Online Education School of Beijing Language and Culture University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 39,712 | 39,042 | 33,531 |
Online Education School of Central University of Finance and Economics | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 3,467 | 2,284 | 2,834 |
Online Education School of Guangxi Radio and TV University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 340 | 1,585 | 251 |
Online Education School of Fujian Radio and TV University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 5,792 | 5,191 | 3,747 |
Zhejiang Normal University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 2,505 | 2,192 | ' |
Shanghai Normal University | ' | ' | ' |
Related Party Transaction | ' | ' | ' |
Online education technical and consulting services | 144 | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det1
RELATED PARTY TRANSACTIONS (Details 2) (CNY) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 67,709 | 65,681 |
Online Education School of Dongbei University of Finance and Economics | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 11,692 | 14,616 |
Online Education School of Renmin University of China | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 12,133 | 11,431 |
Online Education School of Chongqing University | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 19,506 | 18,385 |
Online Education School of China Agricultural University | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 13,738 | 11,018 |
Online Education School of Beijing Language and Culture University | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 10,392 | 10,005 |
Online Education School of Guangxi Radio and TV University | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 55 | 76 |
Online Education School of Fujian Radio and TV University | ' | ' |
Related Party Transaction | ' | ' |
Deferred revenues associated with services provided to related parties | 193 | 150 |
RELATED_PARTY_TRANSACTIONS_Det2
RELATED PARTY TRANSACTIONS (Details 3) (CNY) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction | ' | ' |
Amounts due from related party | 343,970 | 302,163 |
Amounts due from related party-non-current | ' | 41,979 |
Online Education School of Dongbei University of Finance and Economics | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 30,910 | 31,272 |
Online Education School of Renmin University of China | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 46,081 | 71,361 |
Online Education School of Chongqing University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 143,059 | 107,396 |
Amounts due from related party-non-current | ' | 41,979 |
Online Education School of China Agricultural University of China | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 102,778 | 72,768 |
Online Education School of Beijing Language and Culture University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 13,418 | 14,133 |
Online Education School of Guangxi Radio and TV University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 521 | 325 |
Online Education School of Fujian Radio and TV University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 5,350 | 2,920 |
Zhejiang Normal University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 1,516 | 1,988 |
Shanghai Normal University | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 117 | ' |
Online Education School of Central University of Finance and Economics | ' | ' |
Related Party Transaction | ' | ' |
Amounts due from related party | 220 | ' |
RELATED_PARTY_TRANSACTIONS_Det3
RELATED PARTY TRANSACTIONS (Details 4) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | The Fourth Middle School of Anqing | The Fourth Middle School of Anqing | Rendashiji Technology Development Co., Ltd. | Rendashiji Technology Development Co., Ltd. | Online Education School of Dongbei University of Finance and Economics | Online Education School of Dongbei University of Finance and Economics | Online Education School of Chongqing University | Online Education School of Chongqing University | Online Education School of Central University of Finance and Economics | Online Education School of Central University of Finance and Economics | Online Education School of China Agricultural University of China | Online Education School of China Agricultural University of China | Online Education School of Guangxi Radio and TV University | Online Education School of Fujian Radio and TV University | Online Education School of Fujian Radio and TV University | Online Education School of Beijing Language and Culture University | Zhejiang Normal University | Zhejiang Normal University |
Royalty fees to be paid | Royalty fees to be paid | Dividend declared not paid as of year end | Dividend declared not paid as of year end | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | Cash collected on behalf of related party | ||||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | ||||
Related Party Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due to related parties | $8,606 | 52,099 | 35,507 | 1,853 | 1,926 | 8,199 | 522 | 39,259 | 32,018 | 1,257 | 268 | 220 | 226 | 321 | 355 | 40 | 47 | 46 | 728 | 175 | 146 |
STATUTORY_RESERVES_Details
STATUTORY RESERVES (Details) (CNY) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
STATUTORY RESERVES | ' | ' | ' |
Required percentage of after-tax-profit allocated to general reserve | 10.00% | ' | ' |
General reserve as a percentage of registered capital up to which after-tax profit shall be transferred | 50.00% | ' | ' |
Required percentage of after tax profit allocated to development fund | 25.00% | ' | ' |
Percentage of annual increase of net assets to be set aside prior to payment of dividends | 25.00% | ' | ' |
Appropriation to statutory reserve | 5,094 | 4,341 | 7,043 |
RESTRICTED_NET_ASSETS_Details
RESTRICTED NET ASSETS (Details) (CNY) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
RESTRICTED NET ASSETS | ' | ' |
Required percentage of after-tax-profit allocated to general reserve | 10.00% | ' |
Required percentage of after tax profit allocated to development fund | 25.00% | ' |
Percentage of annual increase of net assets to be set aside prior to payment of dividends | 25.00% | ' |
Restricted net assets | 524,148 | 509,421 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Apr. 23, 2014 | Apr. 23, 2014 | Apr. 22, 2014 | Apr. 23, 2014 | Apr. 22, 2014 |
In Millions, except Share data, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event |
USD ($) | Holdings | Ordinary shares | Ordinary shares | American Depository Shares | |||||
USD ($) | USD ($) | Holdings | USD ($) | ||||||
USD ($) | |||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary share, par value (in dollars per share) | $0.01 | 0.08 | $0.01 | 0.08 | ' | ' | $0.01 | $0.00 | ' |
Cash payable on cancellation of shares | ' | ' | ' | ' | ' | ' | $2.33 | ' | $7 |
Number of shares represented by ADS | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Total cash consideration to close the Merger | ' | ' | ' | ' | $30.70 | ' | ' | ' | ' |
Portion of merger consideration funded by withdrawn amount of credit facility | ' | ' | ' | ' | ' | 30 | ' | ' | ' |
Portion of merger consideration funded by cash | ' | ' | ' | ' | $0.70 | ' | ' | ' | ' |
Number of fully paid and non-assessable ordinary shares that can be acquired upon exercise of Holdings Option | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | USD ($) | CNY | USD ($) | CNY | CNY | CNY | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company |
USD ($) | CNY | USD ($) | CNY | CNY | CNY | |||||||
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $71,336 | 431,844 | $63,750 | 385,922 | 273,746 | 190,493 | $631 | 3,821 | $23 | 137 | 744 | 6,110 |
Short-term investments | 1,177 | 7,127 | ' | 23,575 | ' | ' | 1,177 | 7,127 | ' | 15,575 | ' | ' |
Prepaid expenses and other current assets | 3,731 | 22,584 | ' | 23,455 | ' | ' | 104 | 631 | ' | 1,079 | ' | ' |
Amounts due from related parties | 56,820 | 343,970 | ' | 260,184 | ' | ' | 13,157 | 79,649 | ' | 66,167 | ' | ' |
Total current assets | 150,642 | 911,938 | ' | 829,652 | ' | ' | 15,069 | 91,228 | ' | 82,958 | ' | ' |
Investments in subsidiaries and VIE | ' | ' | ' | ' | ' | ' | 104,976 | 635,496 | ' | 572,995 | ' | ' |
Total assets | 221,479 | 1,340,770 | ' | 1,242,253 | ' | ' | 120,045 | 726,724 | ' | 655,953 | ' | ' |
LIABILITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses and other current liabilities | 22,713 | 137,497 | ' | 113,558 | ' | ' | 79 | 483 | ' | 1,195 | ' | ' |
Amounts due to related parties | 8,606 | 52,099 | ' | 35,507 | ' | ' | 11,243 | 68,061 | ' | 1,922 | ' | ' |
Short-term loan | 670 | 4,056 | ' | ' | ' | ' | 670 | 4,056 | ' | ' | ' | ' |
Total liabilities current | 71,778 | 434,521 | ' | 362,229 | ' | ' | 11,992 | 72,600 | ' | 3,117 | ' | ' |
Deferred revenue - non-current | 1,680 | 10,173 | ' | 10,654 | ' | ' | 340 | 2,059 | ' | 2,645 | ' | ' |
Long-term loan | 35,331 | 213,883 | ' | ' | ' | ' | 35,658 | 215,863 | ' | ' | ' | ' |
Total liabilities | 112,019 | 678,129 | ' | 395,151 | ' | ' | 47,990 | 290,522 | ' | 5,762 | ' | ' |
Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary shares (RMB0.08 (US$0.01) par value; 100,000,000 shares authorized; 53,428,219 and 47,676,331 shares issued and outstanding, respectively as of December 31, 2012; 30,883,842 and 25,673,185 shares issued and outstanding, respectively as of December 31, 2013) | 448 | 2,715 | ' | 4,070 | ' | ' | 448 | 2,715 | ' | 4,070 | ' | ' |
Additional paid-in capital | 69,763 | 422,322 | ' | 682,239 | ' | ' | 69,763 | 422,322 | ' | 682,239 | ' | ' |
Treasury stock | -551 | -3,336 | ' | ' | ' | ' | -551 | -3,336 | ' | ' | ' | ' |
Accumulated deficits | -1,062 | -6,428 | ' | -46,200 | ' | ' | 7,479 | 45,274 | ' | -5,224 | ' | ' |
Accumulated other comprehensive loss | -5,084 | -30,773 | ' | -30,894 | ' | ' | -5,084 | -30,773 | ' | -30,894 | ' | ' |
Total equity | 72,055 | 436,202 | ' | 650,191 | ' | ' | 72,055 | 436,202 | ' | 650,191 | ' | ' |
Total liabilities and equity | $221,479 | 1,340,770 | ' | 1,242,253 | ' | ' | $120,045 | 726,724 | ' | 655,953 | ' | ' |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 2) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
USD ($) | CNY | USD ($) | CNY | Parent Company | Parent Company | Parent Company | Parent Company | |
USD ($) | CNY | USD ($) | CNY | |||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' | ' | ' | ' | ' |
Ordinary share, par value | $0.01 | 0.08 | $0.01 | 0.08 | $0.01 | 0.08 | $0.01 | 0.08 |
Ordinary share, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Ordinary share, shares issued | 30,883,842 | 30,883,842 | 53,428,219 | 53,428,219 | 30,883,842 | 30,883,842 | 53,428,219 | 53,428,219 |
Ordinary share, shares outstanding | 25,673,185 | 25,673,185 | 47,676,331 | 47,676,331 | 25,673,185 | 25,673,185 | 47,676,331 | 47,676,331 |
CONDENSED_FINANCIAL_INFORMATIO3
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 3) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Parent Company | Parent Company | Parent Company | Parent Company | |
USD ($) | CNY | CNY | CNY | |||||
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses (including share-based compensation of RMB6,483, RMB8,258 and RMB9,887 for 2011, 2012 and 2013, respectively) | ($18,717) | -113,305 | -100,204 | -93,950 | ($3,668) | -22,205 | -8,881 | -10,775 |
Loss from operations | 21,049 | 127,431 | 91,189 | 62,939 | -3,668 | -22,205 | -8,881 | -10,775 |
Other income | 322 | 1,951 | 1,376 | 1,003 | 85 | 512 | 534 | 547 |
Exchange loss | -451 | -2,728 | ' | ' | -451 | -2,728 | ' | ' |
Interest income | 2,113 | 12,793 | 13,253 | 8,843 | 82 | 503 | 892 | 1,176 |
Interest expense | -2,122 | -12,849 | ' | ' | -1,609 | -9,739 | ' | ' |
Investment (loss) income | 82 | 497 | 1,460 | 832 | 82 | 496 | 226 | -201 |
Equity in earnings of subsidiaries and VIE | ' | ' | ' | ' | 14,115 | 85,450 | 45,200 | 26,074 |
Provision for income taxes - current | 6,159 | 37,282 | 19,939 | 23,078 | -296 | -1,791 | ' | ' |
Net income | $16,518 | 99,998 | 83,309 | 56,573 | $8,340 | 50,498 | 37,971 | 16,821 |
CONDENSED_FINANCIAL_INFORMATIO4
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 4) | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | General and administrative | General and administrative | General and administrative | General and administrative | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | |
USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | General and administrative | General and administrative | General and administrative | |||||
CNY | CNY | CNY | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | $1,633 | 9,887 | 8,258 | 6,483 | $1,120 | 6,780 | 4,176 | 2,909 | $1,633 | 9,887 | 8,258 | 6,483 | 9,887 | 8,258 | 6,483 |
CONDENSED_FINANCIAL_INFORMATIO5
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 5) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Parent Company | Parent Company | Parent Company | Parent Company | |
USD ($) | CNY | CNY | CNY | |||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $16,518 | 99,998 | 83,309 | 56,573 | $8,340 | 50,498 | 37,971 | 16,821 |
Foreign currency translation adjustments | 1,008 | 6,103 | -87 | -751 | 176 | 1,066 | -2,585 | -7,019 |
Change in fair value of available-for-sale investments | -156 | -945 | 1,247 | 187 | -156 | -945 | 1,247 | 187 |
Comprehensive income attributable to ChinaEdu Corporation shareholders | 8,361 | 50,619 | 36,633 | 9,989 | 8,360 | 50,619 | 36,633 | 9,989 |
Other comprehensive income (losses), taxes | $0 | 0 | 0 | 0 | $0 | 0 | 0 | 0 |
CONDENSED_FINANCIAL_INFORMATIO6
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 6) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
USD ($) | CNY | CNY | CNY | Ordinary shares | Ordinary shares | Ordinary shares | Ordinary shares | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | Treasury Stock | Treasury Stock | Accumulated deficits | Accumulated deficits | Accumulated deficits | Accumulated deficits | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | |
CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | USD ($) | CNY | CNY | CNY | Ordinary shares | Ordinary shares | Ordinary shares | Ordinary shares | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | Additional paid-in capital | Treasury Stock | Treasury Stock | Accumulated deficits | Accumulated deficits | Accumulated deficits | Accumulated deficits | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | Accumulated other comprehensive (loss) income | |||||
CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | USD ($) | CNY | CNY | CNY | USD ($) | CNY | CNY | CNY | USD ($) | |||||||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance (in shares) | ' | ' | ' | ' | 47,676,331 | 47,215,888 | 47,689,306 | 25,673,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,676,331 | 47,215,888 | 47,689,306 | 25,673,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | ' | 847,102 | 772,059 | 729,464 | 4,070 | 4,041 | 4,071 | $448 | 682,239 | 673,516 | 674,648 | $69,763 | ' | ($551) | -46,200 | -79,830 | -89,608 | ($1,062) | -30,894 | -29,556 | -22,724 | ($5,084) | ' | 650,191 | 604,806 | 595,979 | 4,070 | 4,041 | 4,071 | $448 | 682,239 | 673,516 | 674,648 | $69,763 | ' | ($551) | -5,224 | -43,195 | -60,016 | $7,479 | -30,894 | -29,556 | -22,724 | ($5,084) |
Repurchase and cancellation of ordinary shares (in shares) | ' | ' | ' | ' | 23,876,175 | 376,761 | 590,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -23,876,175 | -376,761 | -590,205 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares | ' | -285,603 | -4,574 | -8,243 | -1,469 | -24 | -38 | ' | -280,798 | -4,550 | -8,205 | ' | -3,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -285,603 | -4,574 | -8,243 | -1,469 | -24 | -38 | ' | -280,798 | -4,550 | -8,205 | ' | -3,336 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options | ' | 11,108 | 5,068 | 598 | 114 | 53 | 8 | ' | 10,994 | 5,015 | 590 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,108 | 5,068 | 598 | 114 | 53 | 8 | ' | 10,994 | 5,015 | 590 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of share options (note 14) (in shares) | 1,873,029 | 1,873,029 | ' | ' | 1,873,029 | 837,204 | 116,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,873,029 | 837,204 | 116,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of share-based compensation | ' | 9,887 | 8,258 | 6,483 | ' | ' | ' | ' | 9,887 | 8,258 | 6,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,887 | 8,258 | 6,483 | ' | ' | ' | ' | 9,887 | 8,258 | 6,483 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustments | 1,008 | 6,103 | -87 | -751 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,066 | -2,585 | -7,019 | ' | 176 | 1,066 | -2,585 | -7,019 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,066 | -2,585 | -7,019 | ' |
Change in fair value of available-for-sale | -156 | -945 | 1,247 | 187 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -945 | 1,247 | 187 | ' | -156 | -945 | 1,247 | 187 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -945 | 1,247 | 187 | ' |
Net income | 16,518 | 99,998 | 83,309 | 56,573 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,498 | 37,971 | 16,821 | ' | ' | ' | ' | ' | 8,340 | 50,498 | 37,971 | 16,821 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,498 | 37,971 | 16,821 | ' | ' | ' | ' | ' |
Ending Balance (in shares) | ' | ' | ' | ' | ' | 47,676,331 | 47,215,888 | 25,673,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47,676,331 | 47,215,888 | 25,673,185 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | $109,460 | 662,641 | 847,102 | 772,059 | 2,715 | 4,070 | 4,041 | $448 | 422,322 | 682,239 | 673,516 | $69,763 | -3,336 | ($551) | -6,428 | -46,200 | -79,830 | ($1,062) | -30,773 | -30,894 | -29,556 | ($5,084) | $72,055 | 436,202 | 650,191 | 604,806 | 2,715 | 4,070 | 4,041 | $448 | 422,322 | 682,239 | 673,516 | $69,763 | -3,336 | ($551) | 45,274 | -5,224 | -43,195 | $7,479 | -30,773 | -30,894 | -29,556 | ($5,084) |
CONDENSED_FINANCIAL_INFORMATIO7
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 7) | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | Parent Company | Parent Company | Parent Company | Parent Company | |
USD ($) | CNY | CNY | CNY | |||||
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $16,518 | 99,998 | 83,309 | 56,573 | $8,340 | 50,498 | 37,971 | 16,821 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' | ' | ' | ' | ' | ' | ' |
Share based compensation | 1,633 | 9,887 | 8,258 | 6,483 | 1,633 | 9,887 | 8,258 | 6,483 |
Investment (loss) income | -82 | -497 | -1,460 | 201 | -82 | -496 | -226 | 201 |
Equity in earnings of subsidiaries and VIE | ' | ' | ' | ' | -14,115 | -85,450 | -45,200 | -26,074 |
Changes in assets and liabilities: | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | 135 | 814 | 532 | 7,458 | 111 | 669 | -31 | 242 |
Amounts due from related parties | -6,913 | -41,850 | -64,325 | 8,646 | 424 | 2,564 | -1,897 | -1,574 |
Accrued expense and other liabilities | 3,936 | 23,830 | 20,851 | 8,700 | -129 | -766 | -2,907 | 242 |
Amount due to a related party | 1,487 | 9,000 | 22,468 | -19,717 | 11,896 | 72,012 | ' | 16 |
Deferred revenue | 684 | 4,143 | 7,438 | 21,858 | -95 | -578 | -529 | -546 |
Net cash (used in) provided by operating activities | 27,325 | 165,422 | 122,296 | 124,458 | 7,983 | 48,340 | -4,561 | -4,189 |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of term deposits | -98,758 | -597,850 | -526,347 | -341,963 | -600 | -3,632 | ' | ' |
Maturity of term deposits | 91,305 | 552,736 | 532,482 | 364,300 | 600 | 3,632 | ' | ' |
Proceeds from the sale of investment | 1,294 | 7,832 | 26,187 | 16,306 | 1,294 | 7,832 | 7,953 | 8,306 |
Purchase of investments | ' | ' | ' | ' | ' | ' | -4,546 | -2,556 |
Net cash provided by investing activities | -7,424 | -44,944 | 10,774 | -22,249 | 1,294 | 7,832 | 3,407 | 5,750 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase and cancellation of ordinary shares | ' | ' | ' | ' | -47,178 | -285,603 | -4,574 | -7,437 |
Proceeds from exercise of share options | 1,835 | 11,108 | 5,068 | 598 | 1,835 | 11,108 | 5,068 | 598 |
Financing costs related to loans | -1,414 | -8,557 | ' | ' | -631 | -3,822 | ' | ' |
Proceeds from borrowings of short-term debt | 11,301 | 68,410 | ' | ' | 11,301 | 68,410 | ' | ' |
Proceeds from borrowings of long-term debt | 62,815 | 380,261 | ' | ' | 62,815 | 380,261 | ' | ' |
Repayment of borrowings of short-term debt | -10,455 | -63,290 | ' | ' | 10,455 | -63,290 | ' | ' |
Repayment of borrowings of long-term debt | -26,389 | -159,750 | ' | ' | 26,389 | -159,750 | ' | ' |
Prepayment for shares repurchases | -47,178 | -285,603 | -4,574 | -7,437 | ' | ' | ' | -168 |
Net cash provided by financing activities | -12,348 | -74,754 | -20,947 | -19,036 | -8,702 | -52,686 | 494 | -7,007 |
Effect of exchange rate changes | 33 | 198 | 53 | 80 | 33 | 198 | 53 | 80 |
Net decrease in cash and cash equivalents | 7,586 | 45,922 | 112,176 | 83,253 | 608 | 3,684 | -607 | -5,366 |
Cash and cash equivalents, beginning of year | 63,750 | 385,922 | 273,746 | 190,493 | 23 | 137 | 744 | 6,110 |
Cash and cash equivalents, end of year | $71,336 | 431,844 | 385,922 | 273,746 | $631 | 3,821 | 137 | 744 |
CONDENSED_FINANCIAL_INFORMATIO8
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 8) (Parent Company) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
USD ($) | CNY | CNY | CNY | |
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' |
Investments in subsidiaries and VIE | $104,976 | 635,496 | 572,995 | ' |
Equity in income in subsidiaries and the VIE | $14,115 | 85,450 | 45,200 | 26,074 |
CONDENSED_FINANCIAL_INFORMATIO9
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details 9) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | CNY | CNY | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Parent Company | Hongcheng Education | Hongcheng Education |
USD ($) | CNY | CNY | Former director-Yang Xueshan | Former director-Yang Xueshan | Vice President-Xie Changqing | Vice President-Xie Changqing | CMR | CMR | Hongcheng Liye | Hongcheng Liye | BJ-BCIT | BJ-BCIT | Hongcheng Technology | Hongcheng Technology | Hongcheng Online | WITT Education | WITT Education | Others | Others | Former director-Yang Xueshan | Former director-Yang Xueshan | ||||
CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | CNY | item | item | |||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts due from related parties | $56,820 | 343,970 | 260,184 | $13,157 | 79,649 | 66,167 | 14,840 | 14,840 | 39,360 | 39,360 | 20,370 | 5,467 | 2,499 | 2,499 | 1,822 | 1,817 | 655 | 2,087 | ' | ' | ' | 103 | 97 | ' | ' |
Amounts due to related parties | $8,606 | 52,099 | 35,507 | $11,243 | 68,061 | 1,922 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66,125 | 1,546 | 1,587 | 390 | 335 | ' | ' |
Number of nominee shareholders related to the loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 2 |