Document and Entity Information
Document and Entity Information - Mar. 31, 2015 - shares | Total |
Document and Entity Information | |
Entity Registrant Name | ATA Inc. |
Entity Central Index Key | 1,420,529 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2015 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 45,905,582 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
Current assets: | |||
Cash and cash equivalents (including cash of VIE of RMB33,698,280 and RMB18,397,974 as of March 31, 2014 and 2015, respectively) | $ 38,763,570 | ¥ 240,295,371 | ¥ 311,947,098 |
Restricted cash | 0 | 2,700,000 | |
Accounts receivable, net (including accounts receivable, net of VIE of RMB19,564,392 and RMB23,145,899 as of March 31, 2014 and 2015, respectively) | 7,767,389 | 48,150,046 | 68,353,075 |
Prepaid expenses and other current assets (including prepaid expenses and other current assets of VIE of RMB1,455,916 and RMB5,228,560 as of March 31, 2014 and 2015, respectively) | 3,953,097 | 24,505,249 | 15,092,674 |
Total current assets | 50,484,056 | 312,950,666 | 398,092,847 |
Equity method investments (including equity method investments of VIE of RMB nil and RMB35,729,848 as of March 31, 2014 and 2015, respectively) | 5,763,808 | 35,729,848 | |
Property and equipment, net (including property and equipment, net of VIE of RMB894,182 and RMB562,021 as of March 31, 2014 and 2015, respectively) | 10,117,821 | 62,720,375 | 55,814,182 |
Goodwill | 5,002,727 | 31,011,902 | 31,011,902 |
Intangible assets, net | 152,245 | 943,769 | 1,792,935 |
Other assets (including other assets of VIE of RMB nil and RMB8,171,895 as of March 31, 2014 and 2015, respectively) | 1,917,687 | 11,887,740 | 4,524,858 |
Total assets | 73,438,344 | 455,244,300 | 491,236,724 |
Current liabilities: | |||
Accrued expenses and other payables (including accrued expenses and other payables of VIE without recourse to ATA Inc. of RMB14,280,824 and RMB15,011,489 as of March 31, 2014 and 2015, respectively) | 8,778,097 | 54,415,425 | 68,766,143 |
Deferred revenues (including deferred revenues of VIE without recourse to ATA Inc. of RMB1,308,993 and RMB731,490 as of March 31, 2014 and 2015, respectively) | 3,507,458 | 21,742,735 | 8,383,327 |
Total current liabilities | 12,285,555 | 76,158,160 | 77,149,470 |
Deferred revenues | 284,519 | 1,763,732 | 2,195,382 |
Total liabilities | 12,570,074 | 77,921,892 | 79,344,852 |
Shareholders' equity: | |||
Common shares: Par value USD 0.01, authorized: 500,000,000 shares Issued: 46,224,876 and 46,490,940 shares as of March 31, 2014 and 2015, respectively, Outstanding: 45,281,518 and 45,460,582 shares as of March 31, 2014 and 2015, respectively | 566,820 | 3,513,718 | 3,474,894 |
Treasury shares-133,358 and 585,358 common shares as of March 31, 2014 and 2015, respectively, at cost | (1,322,963) | (8,201,045) | (1,029,766) |
Additional paid-in capital | 62,510,534 | 387,502,800 | 437,964,776 |
Accumulated other comprehensive loss | (4,384,043) | (27,176,682) | (27,145,929) |
Retained earnings (accumulated deficit) | 3,497,922 | 21,683,617 | (1,372,103) |
Total shareholders' equity | $ 60,868,270 | ¥ 377,322,408 | ¥ 411,891,872 |
Commitments and contingencies | |||
Total liabilities and shareholders' equity | $ 73,438,344 | ¥ 455,244,300 | ¥ 491,236,724 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015CNY (¥)shares | Mar. 31, 2014$ / shares | Mar. 31, 2014CNY (¥)shares |
Accounts receivable, net | $ 7,767,389 | ¥ 48,150,046 | ¥ 68,353,075 | |
Prepaid expenses and other current assets | 3,953,097 | 24,505,249 | 15,092,674 | |
Equity method investments | 5,763,808 | 35,729,848 | ||
Property and equipment, net | 10,117,821 | 62,720,375 | 55,814,182 | |
Other assets | 1,917,687 | 11,887,740 | 4,524,858 | |
Accrued expenses and other payables | 8,778,097 | 54,415,425 | 68,766,143 | |
Deferred revenues | $ 3,507,458 | ¥ 21,742,735 | ¥ 8,383,327 | |
Common shares, Par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||
Common shares, authorized shares | shares | 500,000,000 | 500,000,000 | 500,000,000 | |
Common shares, Issued shares | shares | 46,490,940 | 46,490,940 | 46,224,876 | |
Common shares, Outstanding shares | shares | 45,460,582 | 45,460,582 | 45,281,518 | |
Treasury shares, number of common shares | shares | 585,358 | 585,358 | 133,358 | |
VIE | ||||
Cash and cash equivalents | ¥ 18,397,974 | ¥ 33,698,280 | ||
Accounts receivable, net | 23,145,899 | 19,564,392 | ||
Prepaid expenses and other current assets | 5,228,560 | 1,455,916 | ||
Equity method investments | 35,729,848 | 0 | ||
Property and equipment, net | 562,021 | 894,182 | ||
Other assets | 8,171,895 | 0 | ||
Accrued expenses and other payables | 15,011,489 | 14,280,824 | ||
Deferred revenues | ¥ 731,490 | ¥ 1,308,993 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income | 12 Months Ended | |||
Mar. 31, 2015USD ($)$ / shares | Mar. 31, 2015CNY (¥)¥ / shares | Mar. 31, 2014CNY (¥)¥ / shares | Mar. 31, 2013CNY (¥)¥ / shares | |
Consolidated Statements of Comprehensive Income | ||||
Net revenues | $ 56,486,179 | ¥ 350,157,824 | ¥ 384,668,378 | ¥ 366,675,495 |
Cost of revenues | 27,833,402 | 172,539,260 | 188,480,346 | 188,831,873 |
Gross profit | 28,652,777 | 177,618,564 | 196,188,032 | 177,843,622 |
Operating expenses: | ||||
Research and development | 5,942,303 | 36,836,338 | 27,673,298 | 21,846,305 |
Sales and marketing | 7,289,268 | 45,186,175 | 47,259,273 | 49,394,470 |
General and administrative | 10,446,704 | 64,759,122 | 71,605,616 | 70,449,357 |
Impairment of intangible assets | 50,033 | 310,153 | 12,009,457 | 0 |
Provision for (reversal of) doubtful accounts | 136,468 | 845,965 | (3,738,232) | 9,140,062 |
Total operating expenses | 23,864,776 | 147,937,753 | 154,809,412 | 150,830,194 |
Other operating income | 335,135 | 2,077,500 | 1,072,453 | |
Income from operations | 5,123,136 | 31,758,311 | 42,451,073 | 27,013,428 |
Other income: | ||||
Share of losses of equity method investments | (354,372) | (2,196,750) | ||
Interest income | 667,278 | 4,136,454 | 4,770,024 | 3,122,304 |
Foreign currency exchange gains (losses), net | (172,149) | (1,067,149) | (49,200) | 77,240 |
Total other income, net | 140,757 | 872,555 | 4,720,824 | 3,199,544 |
Earnings before income taxes | 5,263,893 | 32,630,866 | 47,171,897 | 30,212,972 |
Income tax expense | 1,544,628 | 9,575,146 | 19,895,462 | 7,004,982 |
Net income | 3,719,265 | 23,055,720 | 27,276,435 | 23,207,990 |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of nil income taxes | (4,961) | (30,753) | (766,783) | (374,747) |
Comprehensive income | $ 3,714,304 | ¥ 23,024,967 | ¥ 26,509,652 | ¥ 22,833,243 |
Basic earnings per common share (in CNY and dollars per share) | (per share) | $ 0.08 | ¥ 0.49 | ¥ 0.59 | ¥ 0.50 |
Diluted earnings per common share (in CNY and dollars per share) | (per share) | $ 0.08 | ¥ 0.49 | ¥ 0.59 | ¥ 0.50 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | Common sharesUSD ($)shares | Common sharesCNY (¥)shares | Treasury SharesUSD ($) | Treasury SharesCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Accumulated other comprehensive lossUSD ($) | Accumulated other comprehensive lossCNY (¥) | Accumulated deficitUSD ($) | Accumulated deficitCNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Mar. 31, 2012 | ¥ 3,442,803 | ¥ 440,832,695 | ¥ (26,004,399) | ¥ (51,856,528) | ¥ 366,414,571 | |||||||
Balance (in shares) at Mar. 31, 2012 | shares | 44,815,626 | 44,815,626 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 23,207,990 | 23,207,990 | ||||||||||
Foreign currency translation adjustment, net of nil tax | (374,747) | (374,747) | ||||||||||
Share-based compensation (Note 12) | 12,874,056 | 12,874,056 | ||||||||||
Issuance of common shares with net-settlement of employee individual income tax (Note 12) | ¥ 18,257 | (931,710) | (913,453) | |||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) (Note 12) | shares | 316,126 | 316,126 | ||||||||||
Repurchase of common shares (Note 13) | ¥ (329,357) | (329,357) | ||||||||||
Repurchase of common shares (Note 13) (in shares) | shares | (26,440) | (26,440) | ||||||||||
Special cash dividend (Note 14) | (25,331,341) | (25,331,341) | ||||||||||
Balance at Mar. 31, 2013 | ¥ 3,461,060 | (329,357) | 427,443,700 | (26,379,146) | (28,648,538) | 375,547,719 | ||||||
Balance (in shares) at Mar. 31, 2013 | shares | 45,105,312 | 45,105,312 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 27,276,435 | 27,276,435 | ||||||||||
Foreign currency translation adjustment, net of nil tax | (766,783) | (766,783) | ||||||||||
Share-based compensation (Note 12) | 10,534,910 | 10,534,910 | ||||||||||
Issuance of common shares with net-settlement of employee individual income tax (Note 12) | ¥ 13,834 | (567,881) | (13,834) | (567,881) | ||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) (Note 12) | shares | 186,884 | 186,884 | ||||||||||
Repurchase of common shares (Note 13) | (132,528) | (132,528) | ||||||||||
Repurchase of common shares (Note 13) (in shares) | shares | (10,678) | (10,678) | ||||||||||
Balance at Mar. 31, 2014 | ¥ 3,474,894 | (1,029,766) | 437,964,776 | (27,145,929) | (1,372,103) | ¥ 411,891,872 | ||||||
Balance (in shares) at Mar. 31, 2014 | shares | 45,281,518 | 45,281,518 | 45,281,518 | 45,281,518 | ||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||
Net income | 23,055,720 | $ 3,719,265 | ¥ 23,055,720 | |||||||||
Foreign currency translation adjustment, net of nil tax | (30,753) | (4,961) | (30,753) | |||||||||
Share-based compensation (Note 12) | 2,983,072 | 4,128,244 | 7,111,316 | |||||||||
Share-based compensation (Note 12) (in shares) | shares | 214,314 | 214,314 | ||||||||||
Issuance of common shares with net-settlement of employee individual income tax (Note 12) | ¥ 38,824 | (1,792,215) | 3,814,809 | 2,061,418 | ||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) (Note 12) | shares | 577,064 | 577,064 | ||||||||||
Repurchase of common shares (Note 13) | (8,362,136) | (8,362,136) | ||||||||||
Repurchase of common shares (Note 13) (in shares) | shares | (612,314) | (612,314) | ||||||||||
Special cash dividend (Note 14) | (58,405,029) | (58,405,029) | ||||||||||
Balance at Mar. 31, 2015 | $ 566,820 | ¥ 3,513,718 | $ (1,322,963) | ¥ (8,201,045) | $ 62,510,534 | ¥ 387,502,800 | $ (4,384,043) | ¥ (27,176,682) | $ 3,497,922 | ¥ 21,683,617 | $ 60,868,270 | ¥ 377,322,408 |
Balance (in shares) at Mar. 31, 2015 | shares | 45,460,582 | 45,460,582 | 45,460,582 | 45,460,582 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | $ 3,719,265 | ¥ 23,055,720 | ¥ 27,276,435 | ¥ 23,207,990 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Provision for (reversal of) doubtful accounts | 136,468 | 845,965 | (3,738,232) | 9,140,062 |
Impairment of intangible assets | 50,033 | 310,153 | 12,009,457 | 0 |
Depreciation and amortization | 1,223,389 | 7,583,790 | 10,754,370 | 10,617,534 |
Loss (gain) from disposal of property and equipment | 118 | 734 | 429,642 | (64,608) |
Share-based compensation | 1,147,171 | 7,111,316 | 10,534,910 | 12,874,056 |
Deferred income tax expense (benefit) | (137,069) | (849,689) | (717,083) | (3,221,555) |
Share of losses of equity method investments | 354,372 | 2,196,750 | ||
Foreign currency exchange loss | 160,856 | 997,149 | ||
Changes in operating assets and liabilities, net of effect of an acquisition: | ||||
Restricted cash | 435,554 | 2,700,000 | (2,700,000) | |
Accounts receivable | 3,122,611 | 19,357,064 | (12,790,125) | 21,589,791 |
Income tax payable | (1,816,229) | (11,258,806) | (1,743,871) | 12,564,291 |
Prepaid expenses and other current assets | (144,194) | (893,856) | (132,091) | 786,842 |
Other assets | (1,221,836) | (7,574,162) | (1,539,462) | 1,358,490 |
Accrued expenses and other payables | (1,719,254) | (10,657,651) | (858,078) | (662,767) |
Deferred revenues | 2,085,459 | 12,927,758 | 557,888 | (20,412,383) |
Net cash provided by operating activities | 7,396,714 | 45,852,235 | 37,343,760 | 67,777,743 |
Cash flows from investing activities : | ||||
Cash paid for property and equipment | (2,393,300) | (14,836,069) | (4,150,169) | (7,966,826) |
Cash receipt from property and equipment disposal | 4,919 | 30,490 | 17,690 | |
Payment for XingWei acquisition, net of cash acquired | (9,826,706) | |||
Cash paid for equity method investments | (6,122,578) | (37,953,864) | ||
Net cash used in investing activities | (8,510,959) | (52,759,443) | (13,959,185) | (7,966,826) |
Cash flows from financing activities : | ||||
Cash paid for employee individual income tax for net-settlement of vested shares | (137,668) | (853,404) | (567,881) | (913,453) |
Cash paid for repurchase of common shares | (1,348,949) | (8,362,136) | (132,528) | (329,357) |
Proceeds from exercise of share options | 629,771 | 3,903,952 | ||
Special cash dividend | (9,412,667) | (58,349,122) | (25,331,341) | |
Net cash used in financing activities | (10,269,513) | (63,660,710) | (700,409) | (26,574,151) |
Effect of foreign exchange rate changes on cash | (174,836) | (1,083,809) | (766,783) | (374,747) |
Net increase (decrease) in cash | (11,558,594) | (71,651,727) | 21,917,383 | 32,862,019 |
Cash and cash equivalents at beginning of year | 50,322,164 | 311,947,098 | 290,029,715 | 257,167,696 |
Cash and cash equivalents at end of year | 38,763,570 | 240,295,371 | 311,947,098 | 290,029,715 |
Supplemental disclosures of cash flow information : | ||||
Cash paid for income tax | 3,727,174 | 23,104,750 | 22,590,270 | 3,920,712 |
Cash refunded for income tax | (229,248) | (1,421,109) | ¥ (233,853) | (6,258,466) |
Non-cash investing and financing activities: | ||||
Acquisition of property and equipment included in accrued expenses and other payables | $ 23,573 | ¥ 146,126 | ¥ 1,841,182 |
DESCRIPTION OF BUSINESS, ORGANI
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | 12 Months Ended |
Mar. 31, 2015 | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | (1) DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS Description of Business and Organization ATA Inc. (the “Company”), through its wholly-owned subsidiaries, ATA Testing Authority (Holdings) Limited (“ATA BVI”), X ing W ei Institute (Hong K ong) L imited (“Xing Wei”), ATA Testing Authority (Beijing) Limited (“ATA Testing”), Beijing JinDiXin Software Technology Limited (“Beijing JDX”), ATA Learning (Beijing) Inc. (“ATA Learning”), Zhong Xiao Zhi Xing Education Technology Company Limited (“Zhi Xing”), and its consolidated variable interest entity (“VIE”), ATA Online (Beijing) Education Technology Limited (“ATA Online”) (collectively, referred to as the “Group”), provides computer-based testing services, test-based educational services, test preparation and training solutions and other related services in the People’s Republic of China (the “PRC”). Significant Concentrations and Risks The Group is subject to the following significant concentration and risks: Country risk The Group is subject to special risks associated with the PRC. These include risks associated with, among others, the political, economic, legal and social environment in the PRC, including the relative difficulty of protecting and enforcing intellectual property rights in the PRC. The interpretation and application of current or proposed requirements and regulations may have an adverse effect on the Group’s business, financial condition and results of operations. In addition, the ability to negotiate and implement specific business development projects in a timely and favorable manner may be impacted by political considerations unrelated to or beyond the control of the Group. Although the PRC government has been pursuing economic reform policies for over three decades, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered. Any change in PRC government policies and regulations affecting the education and testing service industry may have a negative impact on the Group’s operating results and financial condition. Revenue concentration For the years ended March 31, 20 13 , 201 4 and 201 5 , RMB 246.9 million, RMB 250.3 million and RMB 246.2 million, representing 67.3 %, 65.1 % and 70.3 % of the Group’s net revenues, respectively, were generated from service fees from Chinese government controlled entities including governmental agencies, educational institutions and industry associations controlled by the PRC government. The demand for the Group’s products and services by these agencies, institutions and associations is affected by government budgetary cycles, funding availability and government policies. Funding reductions, reallocations or delays could adversely impact demand for the Group’s products and services or reduce the fees these customers are willing to pay for the Group’s products and services. Net revenues from customers that individually exceeded 10% of the Group’s net revenues are as follows: Year Ended March 31, 2013 2014 2015 RMB % RMB % RMB % Securities Association of China The Chinese Institute of Certified Public Accountants China Banking Association Ministry of Human Resources and Social Security Accounts receivable, net from customers, that individually exceeded 10% of the Group’s accounts receivable, net are as follows: March 31, 2014 2015 RMB % RMB % Securities Association of China Concentration of cash and cash equivalent balances held at financial institutions Cash and cash equivalents balances include deposits in: March 31, 2014 2015 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) — Denominated in United Stated Dollars (“USD”) Total cash and cash equivalents balances held at mainland PRC financial institutions Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB — Denominated in Hong Kong Dollar — Denominated in USD — Denominated in GBP — Total cash balances held at HKSAR financial institutions Total cash and cash equivalents balances held at financial institutions Management believes these financial institutions have high credit ratings. Cash and cash equivalents denominated in currencies other than functional currency are subject to foreign currency risk due to the appreciation or depreciation of the RMB under the current exchange rate regime in the PRC and HKSAR. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE for which the Group is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. (b) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the determination of primary beneficiary of VIE, the fair values of assets acquired and liabilities assumed in business combination, the fair values of share-based payments, the plans for indefinite reinvestment of undistributed earnings of the PRC subsidiaries in PRC, the collectability of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets, goodwill and equity method investments, realizable value of inventories and with respect to revenue recognition, the expected service period for course programs and the expected licensing period for perpetual license s . Actual results could differ from those estimates. (d) Foreign currency translation and risks The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries and VIE is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “ Foreign currency exchange gains (losses) , net .” Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. For the convenience of the readers, the 201 5 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD1.00 = RMB 6.1990 , the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 201 5 . No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 201 5 . (e) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. (f) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The Group did not have any nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis as of March 31, 2015. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, and accrued expenses and other payables, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments. (g) Revenue recognition The Group’s revenues are principally derived from the provision of testing services, test-based educational services and test preparation solutions. The Group recognizes revenues when all of the following have occurred: · persuasive evidence of an agreement with the customer exists; · services have been performed and/or delivery of goods has occurred; · the fees for services performed and/or price of goods sold are fixed or determinable; and · collectability of the fees and/or sales proceeds is reasonably assured. The application of the above criteria for revenue recognition for each type of service or product is as follows: i) Testing services Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) Test preparation and training solutions The Group derives test preparation and training solutions revenues from online test preparation and training service and online training platform development and maintenance service. a) Online test preparation and training service fees The Group sells online training to end users directly or through distributors on a consignment basis. The online training entitles end users to access online test preparation and training services during a specified service period, which normally ranges between 90 to 365 days from activation. Online training revenue is recognized on a straight-line basis over the service period commencing at the point of time the online training is activated. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. For online training granted with fixed online hours, the Group compares the revenue recognized to the actual completion status, and makes any revenue adjustments to reflect the actual completion status. The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. b) Online training platform development and maintenance service fees The Group develops online training platform based on customer’s requirements and provides maintenance services during the contract period. The online training platform enables end users to participate online training courses. Fees from online training platform development and maintenance service are recognized, when the platform has been delivered, collectability is reasonably assured, and on a straight-line basis over the contractual period. iii) Other revenue a) Test-based educational services Fees from educational institutions for degree major course programs are recognized, when collectibility is reasonably assured, on a straight-line basis over the contractual period , which typically starts in the month of September and ends in the month of June or August of the following year, or 10 to 12 months. Fees from educational institutions for single course programs are recognized on a straight-line basis over the expected service period or the contractual period, whichever is longer. At the end of each reporting period upon the closing of the Group’s financial records, the Group compares the revenue recognized at the onset of the contracts to the actual completion status of each contract, on a contract by contract basis, and makes any revenue adjustments to reflect the actual completion status. Fees are not refundable if the student fails to complete one or more of the courses or the entire degree major course programs or fails any of the exams. b) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license or an initial fee plus continuing annual fees for renewable annual licenses that provide authorized test centers the right to use the Group’s brand name and E-testing platform. The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Initial fees for renewable annual license and fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. c) Test development services Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. d) Test administration software products Test administration software products sales are recognized upon delivery and when collectibility is reasonably assured. e) Operating lease s The Group rent out one floor of its own building and recognized the revenue from operating lease on a straight-line basis over the lease term. iv) Business tax and value added tax (“VAT”) Revenue is recognized net of business taxes at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. (h) Cost of revenues Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, cost of inventories, payroll compensation, technical support, and other related costs, which are directly attributable to the rendering of services and delivery of goods. The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. The test monitoring costs and royalty fees for the years ended March 31, 201 3 , 201 4 and 201 5 are as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Test monitoring costs Royalty fees (i) Research and development costs Research and development costs primarily consist of software developed for internal use and software developed for sale. i) Software developed for internal use The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. No costs were capitalized for any of periods presented. (j) Income taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. (k) Share-based payment The Group measures the cost of employee share options and nonvested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Company measures the pre-modification and post-modification fair value of the equity instruments as of the modification date and recognizes the incremental value as compensation cost over the remaining service period. When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. (l) Cash and cash equivalents Cash and cash equivalents consist of cash on hand , cash in banks and highly liquid investments with original maturity less than three months . (m) Restricted cash Restricted cash is restricted as to usage based on contracts entered into with third parties. The restricted cash balance was RMB 2,700,000 and RMB nil as of March 31, 201 4 and 201 5 . (n) Accounts receivable Accounts receivable include amounts billed at the invoiced amount. The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. ( o ) Equity method investment s The Company applies the equity method to account for an equity interest in an investee over which the Company has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Company’s share of the investee’s results of operations is reported as share of income (losses) of equity method investments in the consolidated statements of comprehensive income. The Company recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other-than-temporary. The process of assessing and determining whether impairment on an investment is other-than-temporary requires a significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. ( p ) Property and equipment, net Property and equipment is stated at historical cost. Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements the lease terms ( q ) Intangible assets Intangible assets acquired are initially recognized and measured at fair value. Intangible assets other than contracts in progress are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. Contract s in progress acquired in a business combination are subsequently accounted as a reduction of billings upon completion of contracts. The Company has no intangible assets with indefinite useful lives. ( r ) Impairment of long-lived assets, excluding goodwill Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company recognized an impairment loss of intangible assets of RMB nil, RMB 12,009,457 and RMB 310,153 for the years ended March 31, 201 3 , 201 4 and 201 5 , respectively. ( s ) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. T he Company perform s a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. The Company performs its annual impairment review of goodwill at March 31 , and when a triggering event occurs between annual impairment tests. No impairment loss was recorded for any of the periods presented. ( t ) Employee benefit plans As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. Employee benefit expenses recognized under these plans for the years ended March 31, 20 1 3 , 201 4 and 201 5 are allocated to the following expense items: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans ( u ) Earnings per share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to cash dividends. Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. ( v ) Segment reporting The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. ( w ) Variable interest entity (“VIE”) PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its subsidiaries are foreign owned business entities under the PRC law and accordingly are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. ATA Online has an ICP license for the provision of ICP services in the PRC. However, no ICP services were provided by ATA Online for the years ended March 31, 2013, 2014 and 2015. Prior to May 20, 2015, the Group had no legal ownership interest in ATA Online but had control over ATA Online through a series of contractual agreements as further described below. The legal ownership interests of ATA Online were held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director (the “nominee shareholders”). In May 2015, the Company decided to list ATA Online on National Equities Exchange and Quotations System in the PRC. In preparation for the listing of ATA Online in the PRC, the contractual arrangements were terminated and entire equity interests of ATA Online were transferred from the nominee shareholders to ATA Learning and Zhongxiao Zhixing on May 20, 2015 at the consideration of RMB10 million determined based on the registered capital of ATA Online. As a result, ATA Online became a wholly equity-owned subsidiary of the Company. Further, ATA Online is in the process of de-registering its ICP license to be in compliance with PRC regulations. VIE contractual agreements A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. These contractual agreements were terminated in May 2015 as aforementioned. The following is a description of the impact of the VIE Agreements on the Group’s consolidated financial statements during the reporting periods presented. ATA Online was determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang were the equity holders of ATA Online, (i) their equity investment of RMB10 million in ATA Online was financed by the Group and (ii) they did not participate in any profit or loss of ATA Online. A lthough the Group did not have an equity investment in ATA Online, the Group had other variable interests in ATA Online through, among others, (i) the Group’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Group’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Group’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Group had the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. Through the VIE Agreements, the Group had a controlling financial interest in ATA Online because the Group had (i) the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online. Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements for the years ended March 31, 2013, 2014 and 2015. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, no non-controlling interest in ATA Online is presented in the Company’s consolidated financial statements. The termination of the VIE Agreements in May 2015 has no net impact on the Group’s consolidated financial statements and ATA Online continues to be accounted as a wholly-owned subsidiary of the Group. The key terms of these VIE Agreements are as follows: Loan agreements: ATA BVI lent to ATA Online’s equity holders, Mr. Kevin Xiaofeng Ma, and Mr. Walter Lin Wang, interest free loans in the amount of RMB10 million for the sole purpose of investing in ATA Online as ATA Online’s registered capital. The equity holders of ATA Online can only repay the loans by transferring all of their legal ownership interest in ATA Online to ATA BVI or to a third party designated by ATA BVI. The equity holders of ATA Online are required to pay to ATA BVI all dividend received from ATA Online. The initial terms of the loans are ten years, which may be extended upon the agreement of ATA BVI and ATA Online’s equity holders. The approval of ATA Online is not required for the renewal of the loan agreements nor can ATA Online terminate the loan agreement during the contract term. ATA BVI lent RMB 1 million on October 27, 2006 and RMB 9 million on July 7, 2009. As part of the termination of the VIE Agreement in May, the nominee shareholders will repay the RMB10 million loans to ATA BVI with the RMB10 million proceeds from the transfer of the legal ownership interests in ATA Online to ATA Learning and Zhongxiao Zhixing . Technical support agreement: ATA Learning has the exclusive right to provide technical support services to ATA Online. The service fees are mutually agreed by both parties, and are determined based on certain objective criteria such as the actual services required by ATA Online and the actual labor costs, as determined by the number of days and personnel involved, incurred by ATA Learning for providing the services during the relevant period. The term of this agreement is ten years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online may not terminate this agreement during its term or upon its expiration. The agreement was entered into on October 27, 2006 with a remaining term of 1 .6 years as of March 31, 2015 , assuming no renewal of the agreement. Strategic consulting service agreement: ATA Learning provides ATA Online with strategic consulting and related services to ATA Online. The fees for these services are determined by ATA Learning and calculated monthly based on actual time spent providing the services. ATA Learning has the right to adjust the fees payable by ATA Online in accordance with its performance. The term of this agreement is twenty years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online can only terminate this agreement i |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2015 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | ( 3 ) ACCOUNTS RECEIVABLE, NET Accounts receivable, net is summarized as follows: March 31, 2014 2015 RMB RMB Accounts receivable Less: allowance for doubtful accounts ) ) Accounts receivable, net Management performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral on accounts receivable. The activity in the allowance for doubtful accounts for accounts receivable for the years ended March 31, 20 1 3 , 201 4 and 201 5 is as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Beginning allowance for doubtful accounts Additions charged to (reversal of) provision for doubtful accounts ) Write-off of accounts receivable ) ) ) Ending allowance for doubtful accounts |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2015 | |
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 consist of the following: March 31, 2014 2015 RMB RMB Income tax receivable Deferred income tax assets (note 10) Advances to employees Other current assets Total prepaid expenses and other current assets |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Mar. 31, 2015 | |
EQUITY METHOD INVESTMENTS. | |
EQUITY METHOD INVESTMENTS | (5) E QUITY M ETHOD I NVESTMENTS In August 2014, ATA Online made a 45% equity interest investment to establish Beijing Zhishang Education Technology Ltd. (“Zhishang”), an online professional training provider based in the PRC, by paying cash of RMB 13,500,000 . The other shareholder of Zhishang is New Oriental Education & Technology Group. ATA online accounted for the investment under the equity method. As of March 31, 2015, the carrying value of the investment was RMB 12,396,725 . ATA online recognized its share of loss from this equity investment of RMB 1,103,275 for the year ended March 31, 201 5 . In December 2014, ATA Online made a 33% equity interest investment in Master Mind Education Company (“Master Mind”), a digital service provider for K-12 after-school tutoring institute based in the PRC, by paying cash of RMB 18,453,864 in December 2014, and RMB 12,302,000 in June 2015 . Pursuant to the investment agreement, should Master Mind’s net revenue in the year ending March 31, 2017 is less than or equal to RMB 157 ,000,000 , 236 ,000,000 or 315 ,000,000 , the Company’s equity interest in Master Mind will increase by 18%, 12% and 6% respectively without consideration by way of other shareholders’ contribution to the Company ratably. The Company accounted for its 33% equity interest in Master Mind under the equity method, and based on its assessment of Master Mind’s future financial performance, has determined that it is not likely that the Company will receive additional equity interest in Master Mind under the agreement with the other shareholders. As of March 31, 2015, the carrying value of the investment was RMB 17,543,789 . The Company recognized its share of loss from this equity investment of RMB 882,809 for the year ended March 31, 201 5 . In January 201 5 , ATA Online made a 20% equity interest investment in Beijing Satech Internet Educational Technology Ltd. (“ Satech ”), an online SAT learning platform provider based in the PRC, by paying cash of RMB 6,000,000 . Pursuant to the investment agreement with Satech , should Satech ’s net revenue in the year ending March 31, 2017 is less than or equal to RMB 55 ,000,000 , the Company’s equity interest in Satech will increase by 31% without consideration by the way of other shareholders’ contribution to the Company ratably. The Company accounted for its 20% equity interest in Satech under the equity method, and based on its assessment of Satech’s future financial performance, has determined that it is not likely that the Company will receive additional equity interest in Satech under the agreement with the other shareholders. As of March 31, 2015, the carrying value of the investment was RMB 5,789,334 . The Company recognized its share of loss from this equity investment of RMB 210,666 for the year ended March 31, 201 5 . |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | ( 6 ) PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: March 31, 2014 2015 RMB RMB Building Computer equipment Furniture, fixtures and office equipment Software Motor vehicles Leasehold improvements Less: accumulated depreciation and amortization ) ) Property and equipment, net Total depreciation expense recognized for the years ended March 31, 20 1 3 , 201 4 and 201 5 is allocated to the following expense items: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total depreciation expense |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Mar. 31, 2015 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | ( 7 ) INTANGIBLE ASSETS , NET The following table summarizes the Company’s intangible assets, as of March 31, 201 4 and 201 5 . March 31, 2014 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years ETS TOEIC license ) ) — 10 Customer relationships ) — 12 Training platform ) — 5 Contracts in progress (i) ) — — Total intangible assets ) ) March 31, 2015 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Contracts in progress (i) ) ) — — Total intangible assets ) ) (i) Contracts in progress of RMB 569,087 and RMB 346,140 recognized at the acquisition date was deducted from the billing upon completion of certain contracts as of March 31, 2014 and 2015. The Company recognized an impairment charge of RMB 310,153 upon the cancellation of certain contracts during the year ended March 31, 2015. ETS TOEIC license represents the amounts paid to Educational Testing Service (“ETS”) under a master distributor agreement for the exclusive right to market, distribute, administer and sell the Test of English for International Communication (“TOEIC”) in mainland PRC for ten years commencing from March 2009. The TOEIC distributor contract with ETS was terminated on February 28, 2014 and the Company recognized an impairment loss of RMB 12,009,457 for the year ended March 31, 2014 . Amortization expenses for intangible assets recognized as cost of revenues were RMB 2,514,392 , RMB 2,359,475 and RMB 192,873 for the years ended March 31, 20 1 3 , 201 4 and 201 5 , respectively . As of March 31, 2015, the estimated amortization expense for the next five years is as follows: March 31 RMB 2016 2017 2018 2019 2020 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Mar. 31, 2015 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
ACCRUED EXPENSES AND OTHER PAYABLES | ( 8 ) ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following: March 31, 2014 2015 RMB RMB Business tax, value-added tax and other taxes payable Accrued payroll and welfare Accrued test monitoring fees Accrued certificates costs Royalty fees payable Income taxes payable Other current liabilities Total accrued expenses and other payables Other current liabilities as of March 31, 201 4 and 201 5 mainly include accrued traveling expenses, rental expenses, meeting expense and other operating expenses , none of which individually exceed 5% of total accrued expenses and other payables. |
DEFERRED REVENUES
DEFERRED REVENUES | 12 Months Ended |
Mar. 31, 2015 | |
DEFERRED REVENUES | |
DEFERRED REVENUES | ( 9 ) DEFERRED REVENUES Deferred revenues consist of the following: March 31, 2014 2015 RMB RMB Testing services Test preparation and training solutions Other revenue — test-based education services Other revenue — licensing fees from authorized test centers Other revenue — others Total deferred revenues Representing: Current deferred revenues Non-current deferred revenues |
NET REVENUES
NET REVENUES | 12 Months Ended |
Mar. 31, 2015 | |
NET REVENUES | |
NET REVENUES | ( 10 ) NET REVENUES The components of net revenues for the years ended March 31, 20 1 3 , 201 4 and 201 5 are as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Testing services Test preparation and training solutions Other revenue Net revenues Other revenue primarily includes test-based educational services, licensing fees from authorized test centers, test development services, test certificate services, test administration software product sales and operating lease income . The net revenues from test-based educational services are RMB 6,778,429 , RMB 3,309,944 and RMB 273,187 for the years ended March 31, 201 3 , 201 4 and 201 5 , respectively. The net revenues from p roduct sales are RMB 1,095,370, RMB 569,579 and RMB 1,252,673 for the years ended March 31, 201 3 , 201 4 and 201 5, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES | |
INCOME TAXES | (1 1 ) INCOME TAXES Cayman Islands and British Virgin Islands Under the current laws of the Cayman Islands and the British Virgin Islands, the Group is not subject to any income tax in these jurisdictions. Hong Kong Xing Wei did not derive any income that is subject to Hong Kong profits tax for the taxable year ended March 31, 2015. Accordingly, no provision for Hong Kong profit tax was required. The payment of dividends by Hong Kong companies is not subject to any Hong Kong withholding tax. People’s Republic of China The Company’s consolidated PRC entities file separate income tax returns. On March 16, 2007, the National People’s Congress passed the Enterprise Income Tax Law (“EIT Law”) which statutory income tax rate is 25% effective from January 1, 2008. According to the EIT Law, entities that qualify as “high-and-new technology enterprises eligible for key support from the State” (“HNTE”) are entitled to a preferential income tax rate of 15%. The Company’s PRC entities are subject to income tax at 25%, unless otherwise specified. In December 2008, ATA Testing received approval from the tax authority that it qualified as an HNTE. The certificate entitled ATA Testing to the preferential income tax rate of 15% effective retroactively from January 1, 2008 to December 31, 2010. In October 20 11 , ATA Testing received approval from the tax authority on its renewal as an HNTE which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2011 to December 31, 2013. In October 20 1 4 , ATA Testing received approval from the tax authority on its reapplication as an HNTE which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 201 4 to December 31, 201 6 . ATA Testing’s applicable income tax rate from January 1, 201 7 onwards i s 25%. In December 2009, ATA Learning, ATA Online and Beijing JDX received approvals from the tax authorities that they qualified as HNTEs. The certificates entitled them to the preferential income tax rate of 15% effectively retroactively from January 1, 2009 to December 31, 2011. In May and July 2012 , ATA Learning, ATA Online and Beijing JDX received approvals from the tax authorities on its renewals as HNTEs which entitled them to the preferential income tax rate of 15% effective retroactively from January 1, 201 2 to December 31, 201 4 . As of March 31, 201 5, ATA Online met all the requirement of HNTE re-application. T he Company believes that ATA Online will be granted as an HNTE which will entitle it to the preferential income tax rate of 15% effective from January 1, 2015 to December 31, 2017. As of March 31, 201 5 , ATA Learning and Beijing JDX’s applicable income tax rate from January 1, 201 5 onwards is 25%, ATA Online’s applicable income tax rate from January 1, 2018 onward is 25%. Zhi Xing , a PRC subsidiary of Xing Wei, is subject to an income tax rate of 25%. The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC for earnings generated beginning on January 1, 2008. Undistributed earnings generated prior to January 1, 2008 are exempt from withholding tax. During the year ended March 31, 2014 and as a result of management’s reassessment of the Company’s operating funding needs and future development initiatives, the Company revised the amount of undistributed earnings to be indefinitely reinvested in its PRC consolidated entities to RMB 89,611,563 as of March 31, 2014. A RMB 113,000,000 dividend distribution was made during the year ended March 31, 2014 to the holding company, for which dividend withholding tax of RMB 11,300,000 was recognized and paid during the year ended March 31, 2014. The unrecognized deferred income tax liabilities as of March 31, 2014 related to the undistributed earnings of the Company’s PRC consolidated entities was RMB 8,961,156. As of March 31 , 201 5 , the Company has not provided for income taxes on earnings of RMB 133,856,064 generated by its PRC consolidated entities since January 1, 2008 as the Company plans to reinvest these earnings indefinitely in the PRC . The unrecognized deferred income tax liability related to these earnings was RMB 13,385,606. The earnings before income taxes were generated in the following jurisdictions: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cayman Islands and British Virgin Islands ) ) ) PRC Hong Kong — Earnings before income taxes Income tax expense (benefit) recognized in the consolidated statements of comprehensive income consists of the following: Year Ended March 31, 2013 2014 2015 RMB RMB RMB PRC Current expense Deferred expense (benefit) ) ) ) Dividend withholding tax — — Total income tax expense The actual income tax expense reported in the consolidated statements of comprehensive income differs from the respective amount computed by applying the PRC statutory income tax rate of 25% for each of the years ended March 31, 20 1 3 , 201 4 and 201 5 to earnings before income taxes due to the following: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Computed “expected” income tax expense Increase (decrease) in valuation allowance ) Preferential income tax rate ) ) ) Entities not subject to income tax Non-deductible expenses Entertainment Share-based compensation Bad debt loss Impairment of ETS TOEIC license — — Changes in tax rates — — Tax rate differential ) Dividend withholding tax — — Additional deduction of research and development costs ) ) ) Other Actual income tax expense The applicable PRC statutory tax rate is used since the Group’s taxable income is generated in the PRC. The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows. March 31, 2014 2015 RMB RMB Deferred income tax assets: Tax loss carryforwards Share of loss of equity method investments Property and equipment, net Allowance for doubtful accounts — Write-down of inventories — Accrued expenses and other payables Total gross deferred income tax assets Less: valuation allowance ) ) Net deferred income tax assets Deferred income tax liabilities: Customer relationships Training platform Contract in progress — Total gross deferred income tax liabilities Net deferred income tax assets March 31, 2014 2015 RMB RMB Current deferred income tax assets, included in prepaid expenses and other current assets Non-current deferred income tax assets, included in other assets Net deferred income tax assets The movements of the valuation allowance are as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Balance at the beginning of the year Additions from Xing Wei Group acquisition — — Additions of valuation allowance excluding acquisition — Reduction of valuation allowance ) — — Balance at the end of the year As of March 31, 201 5 , the valuation allowance of RMB 3,882,555 was mainly related to the deferred income tax assets of PRC entities at cumulative losses. As of March 31, 201 5 , management believes it is more likely than not that the Group will realize the deferred income tax assets, net of the valuation allowance. The amount of the deferred income tax assets, however, considered realizable as of March 31, 201 5 could be reduced in the near term if estimates of future taxable income are reduced. As of March 31, 201 5 , the Group had tax loss carry forwards for PRC income tax purpose of RMB 58,324,053 , of which RMB 2,564,040, RMB nil, RMB nil, RMB 4,996,057, RMB 4,907,578 and RMB 45,856,378 will expire if unused by December 31, 2015, 2016, 2017, 2018, 2019 and 2020, respectively . For the years ended March 31, 20 1 3 , 201 4 and 201 5 , the Group had no unrecognized tax benefits, and thus no related interest and penalties were recorded. Also, the Group does not expect that the amount of unrecognized tax benefits will significantly increase within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax return of each of the Company’s PRC consolidated entities is subject to examination by the relevant tax authorities for the calendar tax years beginning in 20 10 . |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2015 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | (1 2 ) SHARE BASED COMPENSATION 2005 Share incentive plan In April 2005, the Company adopted a share incentive plan (the “2005 Plan”), pursuant to which the Company is authorized to issue options to officers, employees, directors and consultants of the Group to purchase up to 2,894,000 of its common shares. In October 2007, the Company’s board of directors approved an increase in the number of shares reserved for issuance under the 2005 Plan to 3,310,300 shares. The 2005 Plan expired in April 201 5 . Options awards provide for accelerated vesting if there is a change in control (as defined in the 2005 Plan). 2008 Share incentive plan On January 7, 2008, the Company adopted a share incentive plan (the “2008 Plan”), pursuant to which the Company is authorized to issue options and other share-based awards to officers, employees, directors and consultants of the Group to purchase up to 336,307 of its common shares, plus, unless the board of directors determines a lesser amount, an annual increase on January 1 of each calendar year beginning in 2009 equal to the lesser of 1) one percent of the number of shares issued and outstanding on December 31 of the immediately preceding calendar year, and 2) 336,307 shares. The 2008 Plan expires in ten years. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2008 Plan). As of March 31, 201 5 , 2,690,456 shares were reserved for issuance under the 2008 Plan. Under both the 2005 Plan and 2008 Plan, share options are generally granted with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months, unless a shorter or longer duration is established at the time of the option grant. Share options are granted at an exercise price equal to the fair market value of the Company’s share at the date of grant and expire 10 years from the grant date. Under the 2008 Plan, nonvested shares are granted with a graded vesting as to 25% at the end of each year from the grant date over 4 years. For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. During the year ended March 31, 2013, the Company extended the exercise period of vested share options of two employees upon their resignation. In addition, the Company also continued the vesting of certain unvested share options and nonvested shares of these former employees. The modification resulted in additional compensation expense of RMB1,294,834 recognized in the “general and administrative expense” for the year ended March 31, 2013. In October 2013, 1,469,460 share options were granted to an officer, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vesting evenly over the following three years. The exercise price of these options is USD2.50 per common share. In October 2014, the remaining 75% share options were forfeited upon the officer’s resignation. The expense of RMB 4,014,513 related to the unvested share options recognized previously was reversed. In February 2015, 1,469,460 share options were granted to an officer, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vest evenly over the following three years. The exercise price of these options is USD2.24 per common share. In February 2015, 100,000 and 114,314 common shares of the Company were granted to two officers respectively, using the Company’s treasury shares. These common shares were immediately vested on grant date. The fair value of the common shares on the grant date of RMB 2,831,396 was recognized as “general and administrative expense” for the year ended March 31, 2015. The difference between the cost of the treasury shares repurchased of RMB 2,983,072 and the fair value of the common shares on grant date of RMB 151,676 was recognized as a reduction of additional paid-in capital. A summary of the shares options activities for the years ended March 31, 20 1 3 , 201 4 and 201 5 is presented below : Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2012 Granted — — Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2013 Granted Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2014 Granted Exercised ) Forfeited ) Expired ) Outstanding as of March 31, 2015 Vested and expected to vest as of March 31, 2015 Nil Exercisable as of March 31, 2015 Nil The aggregate intrinsic value of options outstanding and exercisable at March 31, 201 5 , was determined based on the closing price of the Company’s common shares on March 31, 201 5 . The total intrinsic value of options exercised in the years ended March 31, 201 5 is USD 46,500 . Information relating to options outstanding and exercisable as of March 31, 201 5 is as follows: Options outstanding as of March 31, 2015 Options exercisable as of March 31, 2015 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years — The Company calculated the fair value of the share options on the grant date using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows: Year Ended March 31, 2013 2014 2015 Expected dividend yield — Expected volatility — Expected term — Risk-free interest rate (per annum) — The expected volatility was based on the historical volatilities of the Company. The expected term was related to the period of time the options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the United States treasury yield curve in effect at the time of grant. Compensation expense for share options of RMB 306,659, RMB 3,946,384 and RMB 984,595 was included in general and administrative expense for the years ended March 31, 2013, 2014 and 2015. As of March 31, 201 5 , RMB 12,003,533 of total unrecognized compensation expense related to nonvested share options is expected to be recognized over a weighted average period of approximately 3.90 years . Nonvested shares A summary of the nonvested shares activities for the years ended March 31, 20 1 3 , 201 4 and 201 5 is presented below: Weighted average Number grant date of shares fair value USD Outstanding at March 31, 2012 Granted Vested ) ) Forfeited ) Outstanding at March 31, 2013 Granted Vested ) Forfeited ) Outstanding at March 31, 2014 Granted — — Vested ) Forfeited ) Outstanding at March 31, 2015 The total fair value of shares vested during the years ended March 31, 20 1 3 , 201 4 and 201 5 , was USD 829,077 , USD 560,975 and USD 821,250 respectively. In accordance with the share incentive agreement with the employees, upon the vesting of the nonvested shares, the Company may elect to repurchase certain number of vested shares at the fair market price, with the payment due employees withheld to meet the relevant minimum tax withholding requirements. For the years ended March 31, 2013, 201 4 and 201 5 , the Company reacquired 44,564, 51,676 and 54,000 vested shares upon the vesting of the nonvested shares for a consideration of RMB 913,453, RMB 567,881 and RMB 853,404 respectively to satisfy the minimum tax withholding obligation. Compensation expense recognized for nonvested shares for the years ended March 31, 20 1 3 , 201 4 and 201 5 is allocated to the following expense items: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total share based compensation expense As of March 31, 201 5 , RMB 1,389,270 of total unrecognized compensation expense related to nonvested shares is expected to be recognized over a weighted average period of approximately 1.54 years. |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Mar. 31, 2015 | |
COMMON SHARES | |
COMMON SHARES | (1 3 ) COMMON SHARES The Company’s board of directors approved a share repurchase program on November 1, 20 12 to repurchase up to USD5 million worth of its issued and outstanding American Depository Shares (“ ADS ”) in both open-market and privately negotiated transactions. On January 31 , 201 3 , the Company’s board of director reviewed and approved the continuation of the share repurchase program through Ma y 31, 201 3 . The Company’s board of directors approved a share repurchase program on August 5 , 20 14 to repurchase up to USD5 million worth of its issued and outstanding ADSs in open-market through January 31, 2015 . For the years ended March 31, 20 1 3 , 201 4 and 201 5 , the Company repurchased 26,440 , 10,678 and 612,314 common shares at a repurchase price of RMB 329,357 , RMB 132,528 and RMB 8,362,136 , respectively. |
SPECIAL CASH DIVIDENDS
SPECIAL CASH DIVIDENDS | 12 Months Ended |
Mar. 31, 2015 | |
SPECIAL CASH DIVIDENDS | |
SPECIAL CASH DIVIDENDS | (1 4 ) SPECIAL CASH DIVIDENDS On August 7 , 201 2 , the Company ’s board of directors declared a special cash dividend of USD0. 087 per common share, or USD0. 174 per ADS. The total amount of cash distributed in the dividend was USD 4.0 million (RMB 25,331,341 ) and was paid from the cash held by ATA Inc . in September 201 2 . On May 30 , 201 4 , the Company ’s board of directors declared a special cash dividend of USD0. 205 per common share, or USD0. 41 per ADS. The total amount of cash distributed in the dividend was USD 9.5 million (RMB 58,349,122 ) and was paid by cash in July 201 4 . |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Mar. 31, 2015 | |
STATUTORY RESERVES | |
STATUTORY RESERVES | (1 5 ) STATUTORY RESERVES In accordance with the relevant laws and regulations of the PRC, the Company’s PRC consolidated entities are required to transfer 10% of their respective after tax profit, as determined in accordance with PRC accounting standards and regulations to a general reserve fund until the balance of the fund reaches 50% of the registered capital of the respective entity. The transfer to this general reserve fund must be made before distribution of dividends can be made. As of March 31, 201 4 and 201 5 , the PRC consolidated entities had appropriated RMB 20,648,182 and RMB 26,389,274 , respectively, to the general reserve fund, which is restricted for distribution to the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (1 6 ) COMMITMENTS AND CONTINGENCIES (a) Lease commitments The Group entered into non-cancelable operating leases, primarily for office space, for initial terms of nineteen months to six years. Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease, including any periods of free rent. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 201 5 are: Minimum Lease Payments Amount RMB Year ended March 31: 2016 2017 2018 2019 2020 Thereafter — Rental expense for operating leases (except leases with a term of one month or less that are not renewed) for the years ended March 31, 20 1 3 , 201 4 and 201 5 were RMB 6,517,907 , RMB 7,848,918 and RMB 14,096,009 respectively. (b) Purchase commitments On August, 11, 2011, t he Group entered into an agreement with a vender granting the Group a license to distribute the vendor’s test related products in Mainland China for 10 years. Each party may terminate this agreement at any time for any reason by giving the other party not less than twelve months written notice subject only that the earliest termination date may not be before the fifth anniversary of this agreement unless either party is in breach of this agreement. The future minimum payments under the non-cancelable purchase agreement as of March 31, 2015 are: Required Payments Amount RMB Year ended March 31: 2016 2017 License fee for the non-cancelable purchase agreement for the year ended March 31, 20 1 3 , 201 4 and 201 5 were RMB 2,897,395 , RMB 2,820,414 and RMB 2,282,288 respectively. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Mar. 31, 2015 | |
OPERATING LEASES | |
OPERATING LEASES | (1 7 ) OPERATING LEASES The Group leased one floor of its building on March 1, 2014. The operating lease term is six years and will expire on February 29, 2020 . Minimum ren tal income under operating lease is recognized on a straight-line basis over the term of the lease, including any periods of free rent. Property on Operating Lease March 31, 2014 March 31, 2015 RMB RMB Building Less: Accumulated depreciation ) ) Rentals under Operating Lease Future minimum rentals under non-cancelable operating lease as of March 31, 201 5 are: Minimum Rentals Amount RMB Year ended March 31: 2016 2017 2018 2019 2020 Thereafter — |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2015 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | (1 8 ) EARNINGS PER COMMON SHARE Basic and diluted earnings per common share are calculated as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Numerator: Net earnings Less: Dividends paid to participating securities ) — ) Net earnings attributable to participating securities — ) — Net earnings available to common shareholders Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding Plus: Incremental shares issuable upon exercise of share options — Denominator for diluted earnings per share Basic earnings per common share Diluted earnings per common share The following table summarizes potential common shares outstanding excluded from the calculation of diluted earnings per share for the years ended March 31, 20 1 3 , 201 4 and 201 5 , because their effect is anti-dilutive: Year ended March 31, 2013 2014 2015 Shares issuable under share options |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 31, 2015 | |
ACQUISITION | |
ACQUISITION | (19) ACQUISITION On October 31, 2013, ATA Inc. acquired the entire equity interest of Xing Wei and its wholly owned subsidiary Zhi Xing (collectively the “Xing Wei Group”) for cash consideration of USD 3.19 million (equivalent RMB 19,612,120). Xing Wei Group provides training solutions as well as mobile training platforms for corporations in the PRC. The Company expected the acquisition will provide the Company a more comprehensive set of service offerings, which will enable it to deepen its existing client relationships in the PRC. The Company paid the selling shareholder of Xing Wei Group USD 3.19 million in cash on November 1, 2013. This acquisition was accounted for under the acquisition method and resulted in Xing Wei Group becoming consolidated subsidiar ies of the Company . The acquired business contributed net revenue of RMB 305,607 and net loss of RMB 1,702,306 to the Company for the period from October 31, 2013 to March 31, 2014. The following unaudited pro forma summary presents consolidated information of the Company as if the business combination had occurred on April 1, 2012: Pro forma year ended March 31, 2013(Unaudited) Pro forma year ended March 31, 2014(Unaudited) RMB RMB Net revenue Net income The Company had no material, nonrecurring pro forma adjustment directly attributable to the business combination included in the reported pro forma net revenue and net income. Acquisition related costs of RMB 676,237 were included in the general and administration expenses in the Company’s consolidated statement of comprehensive income for the year ended March 31, 2014. The following table summarizes the consideration paid to acquire Xing Wei Group and the amounts of identifiable assets acquired and liabilities assumed at the acquisition date: October 31, 2013 RMB Fair value of consideration transferred: Cash Fair values of identifiable assets acquired and liabilities assumed: Cash Accounts receivable and other current assets Contracts in progress Property and equipment Training platform Accrued expenses and other current liabilities ) Total identifiable net assets Goodwill The goodwill represents the workforce of the acquired business and synergies expected to arise after the Company’s acquisition of Xing Wei Group and expanding the product offering of testing services. All of the goodwill was assigned to the enterprise level. The goodwill is not expected to be deductible for income tax purpose. |
ATA INC. ("Parent Company")
ATA INC. ("Parent Company") | 12 Months Ended |
Mar. 31, 2015 | |
ATA INC. ("Parent Company") | |
ATA INC. ("Parent Company") | ( 20 ) ATA INC. (“Parent Company”) The following presents condensed financial information of the Parent Company only. Condensed Balance Sheets March 31, 2014 2015 2015 RMB RMB USD Cash Prepaid expenses and other current assets Investments in subsidiaries Total assets Accrued expenses and other current liabilities Total liabilities Common shares Treasury shares ) ) ) Additional paid in capital Accumulated other comprehensive loss ) ) ) Retained earnings (accumulated deficit) ) Total shareholders’ equity Total liabilities and shareholders’ equity Condensed Statements of Comprehensive Income Year Ended March 31, 2013 2014 2015 2015 RMB RMB RMB USD Operating expenses ) ) ) ) Investment income Interest income Foreign currency exchange gains (losses), net ) ) ) Earnings before income taxes Income tax expense — — — — Net income Foreign currency translation adjustment, net of nil income taxes ) ) ) ) Comprehensive income Condensed Statements of Cash Flows Year Ended March 31, 2013 2014 2015 2015 RMB RMB RMB USD Net cash used in operating activities ) ) ) ) Cash flows from investing activities : Collection from (payment to) subsidiaries ) Payment for XingWei acquisition — ) — — Net cash provided by investing activities ) Cash flows from financing activities : Proceeds from exercise of share options — — — — Cash paid for employee individual income tax of net-settlement of vested shares ) — — — Cash paid for repurchase of common shares ) ) ) ) Proceeds from exercise of share options — — Special cash dividend ) — — — Net cash used in financing activities ) ) ) ) Effect of foreign exchange rate changes on cash ) ) ) ) Net decrease in cash ) ) ) ) Cash at beginning of year Cash at end of year |
SUMMARY OF SIGNIFICANT ACCOUN27
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and its VIE for which the Group is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. |
Basis of presentation | (b) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the determination of primary beneficiary of VIE, the fair values of assets acquired and liabilities assumed in business combination, the fair values of share-based payments, the plans for indefinite reinvestment of undistributed earnings of the PRC subsidiaries in PRC, the collectability of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets, goodwill and equity method investments, realizable value of inventories and with respect to revenue recognition, the expected service period for course programs and the expected licensing period for perpetual license s . Actual results could differ from those estimates. |
Foreign currency translation and risks | (d) Foreign currency translation and risks The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries and VIE is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “ Foreign currency exchange gains (losses) , net .” Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. For the convenience of the readers, the 201 5 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD1.00 = RMB 6.1990 , the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 201 5 . No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 201 5 . |
Commitments and contingencies | (e) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. |
Fair value measurements | (f) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The Group did not have any nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis as of March 31, 2015. The Company’s financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, and accrued expenses and other payables, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments. |
Revenue recognition | (g) Revenue recognition The Group’s revenues are principally derived from the provision of testing services, test-based educational services and test preparation solutions. The Group recognizes revenues when all of the following have occurred: · persuasive evidence of an agreement with the customer exists; · services have been performed and/or delivery of goods has occurred; · the fees for services performed and/or price of goods sold are fixed or determinable; and · collectability of the fees and/or sales proceeds is reasonably assured. The application of the above criteria for revenue recognition for each type of service or product is as follows: i) Testing services Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) Test preparation and training solutions The Group derives test preparation and training solutions revenues from online test preparation and training service and online training platform development and maintenance service. a) Online test preparation and training service fees The Group sells online training to end users directly or through distributors on a consignment basis. The online training entitles end users to access online test preparation and training services during a specified service period, which normally ranges between 90 to 365 days from activation. Online training revenue is recognized on a straight-line basis over the service period commencing at the point of time the online training is activated. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. For online training granted with fixed online hours, the Group compares the revenue recognized to the actual completion status, and makes any revenue adjustments to reflect the actual completion status. The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. b) Online training platform development and maintenance service fees The Group develops online training platform based on customer’s requirements and provides maintenance services during the contract period. The online training platform enables end users to participate online training courses. Fees from online training platform development and maintenance service are recognized, when the platform has been delivered, collectability is reasonably assured, and on a straight-line basis over the contractual period. iii) Other revenue a) Test-based educational services Fees from educational institutions for degree major course programs are recognized, when collectibility is reasonably assured, on a straight-line basis over the contractual period , which typically starts in the month of September and ends in the month of June or August of the following year, or 10 to 12 months. Fees from educational institutions for single course programs are recognized on a straight-line basis over the expected service period or the contractual period, whichever is longer. At the end of each reporting period upon the closing of the Group’s financial records, the Group compares the revenue recognized at the onset of the contracts to the actual completion status of each contract, on a contract by contract basis, and makes any revenue adjustments to reflect the actual completion status. Fees are not refundable if the student fails to complete one or more of the courses or the entire degree major course programs or fails any of the exams. b) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license or an initial fee plus continuing annual fees for renewable annual licenses that provide authorized test centers the right to use the Group’s brand name and E-testing platform. The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Initial fees for renewable annual license and fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. c) Test development services Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. d) Test administration software products Test administration software products sales are recognized upon delivery and when collectibility is reasonably assured. e) Operating lease s The Group rent out one floor of its own building and recognized the revenue from operating lease on a straight-line basis over the lease term. iv) Business tax and value added tax (“VAT”) Revenue is recognized net of business taxes at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. |
Cost of revenues | (h) Cost of revenues Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, cost of inventories, payroll compensation, technical support, and other related costs, which are directly attributable to the rendering of services and delivery of goods. The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. The test monitoring costs and royalty fees for the years ended March 31, 201 3 , 201 4 and 201 5 are as follows: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Test monitoring costs Royalty fees |
Research and development costs | (i) Research and development costs Research and development costs primarily consist of software developed for internal use and software developed for sale. i) Software developed for internal use The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. No costs were capitalized for any of periods presented. |
Income taxes | (j) Income taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. |
Share-based payment | (k) Share-based payment The Group measures the cost of employee share options and nonvested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and nonvested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Company measures the pre-modification and post-modification fair value of the equity instruments as of the modification date and recognizes the incremental value as compensation cost over the remaining service period. When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. |
Cash and cash equivalents | (l) Cash and cash equivalents Cash and cash equivalents consist of cash on hand , cash in banks and highly liquid investments with original maturity less than three months . |
Restricted cash | (m) Restricted cash Restricted cash is restricted as to usage based on contracts entered into with third parties. The restricted cash balance was RMB 2,700,000 and RMB nil as of March 31, 201 4 and 201 5 . |
Accounts receivable | (n) Accounts receivable Accounts receivable include amounts billed at the invoiced amount. The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. |
Equity method investments | ( o ) Equity method investment s The Company applies the equity method to account for an equity interest in an investee over which the Company has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Company’s share of the investee’s results of operations is reported as share of income (losses) of equity method investments in the consolidated statements of comprehensive income. The Company recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other-than-temporary. The process of assessing and determining whether impairment on an investment is other-than-temporary requires a significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. |
Property and equipment, net | ( p ) Property and equipment, net Property and equipment is stated at historical cost. Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements the lease terms |
Intangible assets | ( q ) Intangible assets Intangible assets acquired are initially recognized and measured at fair value. Intangible assets other than contracts in progress are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. Contract s in progress acquired in a business combination are subsequently accounted as a reduction of billings upon completion of contracts. The Company has no intangible assets with indefinite useful lives. |
Impairment of long-lived assets, excluding goodwill | ( r ) Impairment of long-lived assets, excluding goodwill Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Company recognized an impairment loss of intangible assets of RMB nil, RMB 12,009,457 and RMB 310,153 for the years ended March 31, 201 3 , 201 4 and 201 5 , respectively. |
Goodwill | ( s ) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually. T he Company perform s a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. The Company performs its annual impairment review of goodwill at March 31 , and when a triggering event occurs between annual impairment tests. No impairment loss was recorded for any of the periods presented. |
Employee benefit plans | ( t ) Employee benefit plans As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. Employee benefit expenses recognized under these plans for the years ended March 31, 20 1 3 , 201 4 and 201 5 are allocated to the following expense items: Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans |
Earnings per share | ( u ) Earnings per share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s nonvested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to cash dividends. Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. |
Segment reporting | ( v ) Segment reporting The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Variable interest entity ("VIE") | ( w ) Variable interest entity (“VIE”) PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its subsidiaries are foreign owned business entities under the PRC law and accordingly are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. ATA Online has an ICP license for the provision of ICP services in the PRC. However, no ICP services were provided by ATA Online for the years ended March 31, 2013, 2014 and 2015. Prior to May 20, 2015, the Group had no legal ownership interest in ATA Online but had control over ATA Online through a series of contractual agreements as further described below. The legal ownership interests of ATA Online were held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director (the “nominee shareholders”). In May 2015, the Company decided to list ATA Online on National Equities Exchange and Quotations System in the PRC. In preparation for the listing of ATA Online in the PRC, the contractual arrangements were terminated and entire equity interests of ATA Online were transferred from the nominee shareholders to ATA Learning and Zhongxiao Zhixing on May 20, 2015 at the consideration of RMB10 million determined based on the registered capital of ATA Online. As a result, ATA Online became a wholly equity-owned subsidiary of the Company. Further, ATA Online is in the process of de-registering its ICP license to be in compliance with PRC regulations. VIE contractual agreements A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. These contractual agreements were terminated in May 2015 as aforementioned. The following is a description of the impact of the VIE Agreements on the Group’s consolidated financial statements during the reporting periods presented. ATA Online was determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang were the equity holders of ATA Online, (i) their equity investment of RMB10 million in ATA Online was financed by the Group and (ii) they did not participate in any profit or loss of ATA Online. A lthough the Group did not have an equity investment in ATA Online, the Group had other variable interests in ATA Online through, among others, (i) the Group’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Group’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Group’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Group had the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. Through the VIE Agreements, the Group had a controlling financial interest in ATA Online because the Group had (i) the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online; and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online. Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements for the years ended March 31, 2013, 2014 and 2015. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, no non-controlling interest in ATA Online is presented in the Company’s consolidated financial statements. The termination of the VIE Agreements in May 2015 has no net impact on the Group’s consolidated financial statements and ATA Online continues to be accounted as a wholly-owned subsidiary of the Group. The key terms of these VIE Agreements are as follows: Loan agreements: ATA BVI lent to ATA Online’s equity holders, Mr. Kevin Xiaofeng Ma, and Mr. Walter Lin Wang, interest free loans in the amount of RMB10 million for the sole purpose of investing in ATA Online as ATA Online’s registered capital. The equity holders of ATA Online can only repay the loans by transferring all of their legal ownership interest in ATA Online to ATA BVI or to a third party designated by ATA BVI. The equity holders of ATA Online are required to pay to ATA BVI all dividend received from ATA Online. The initial terms of the loans are ten years, which may be extended upon the agreement of ATA BVI and ATA Online’s equity holders. The approval of ATA Online is not required for the renewal of the loan agreements nor can ATA Online terminate the loan agreement during the contract term. ATA BVI lent RMB 1 million on October 27, 2006 and RMB 9 million on July 7, 2009. As part of the termination of the VIE Agreement in May, the nominee shareholders will repay the RMB10 million loans to ATA BVI with the RMB10 million proceeds from the transfer of the legal ownership interests in ATA Online to ATA Learning and Zhongxiao Zhixing . Technical support agreement: ATA Learning has the exclusive right to provide technical support services to ATA Online. The service fees are mutually agreed by both parties, and are determined based on certain objective criteria such as the actual services required by ATA Online and the actual labor costs, as determined by the number of days and personnel involved, incurred by ATA Learning for providing the services during the relevant period. The term of this agreement is ten years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online may not terminate this agreement during its term or upon its expiration. The agreement was entered into on October 27, 2006 with a remaining term of 1 .6 years as of March 31, 2015 , assuming no renewal of the agreement. Strategic consulting service agreement: ATA Learning provides ATA Online with strategic consulting and related services to ATA Online. The fees for these services are determined by ATA Learning and calculated monthly based on actual time spent providing the services. ATA Learning has the right to adjust the fees payable by ATA Online in accordance with its performance. The term of this agreement is twenty years, automatically renewable for successive one year terms unless ATA Learning notifies ATA Online of its intention not to renew 30 days before the relevant term expires. ATA Online can only terminate this agreement if ATA Learning fails to perform its obligation under this agreement. The agreement was entered into on October 27, 2006 with a remaining term of 11.6 years as of March 31, 2015 , assuming no renewal of the agreement. For the years ended March 31, 2013, 2014 and 2015, ATA Learning billed RMB 12.6 million, RMB 8.0 million and RMB 18.0 million to ATA Online based on the technical support agreement and strategic consulting service agreement. For the years ended March 31, 2013, 2014 and 2015, RMB 12.6 million, RMB nil and RMB 8.0 million was collected, respectively. Call option and cooperation agreement: Through the call option and cooperation agreement entered into among ATA BVI, ATA Online and its equity holders, ATA BVI or any party designated by ATA BVI, has an exclusive purchase option to acquire the equity interest in ATA Online from its equity holders or acquire ATA Online’s assets at any time when permitted by applicable Chinese laws and regulations. The proceeds from the exercise of the call option will be applied to repay the loans under the loan agreements described above. Further, without ATA BVI’s prior written consent, ATA Online or its equity holders cannot sell, assign, mortgage or dispose any of ATA Online’s assets or operation, cannot enter into any transaction which may materially affect ATA Online’s assets, liability, operation, equity or other legal rights, and cannot distribute any dividend to its equity holders. ATA BVI is also obligated to provide financial support to ATA Online’s operation to which ATA BVI has no recourse right if ATA Online cannot repay such financing due to its losses. This agreement has an indefinite term and can only be terminated with the unanimous consent of all parties, except that ATA BVI may terminate this agreement with 30 days prior notice to the other parties. Equity pledge agreement: To secure the payment obligations of ATA Online under the technical support agreement and the strategic consulting service agreement described above, ATA Online’s equity holders have pledged to ATA Learning their entire equity ownership interests in ATA Online. Under this agreement, equity holders of ATA Online may not transfer the pledged equity interest without ATA Learning’s prior written consent. This agreement will also be binding upon successors of the pledgor and transferees of the pledged equity interest. The term of the pledge is the same as the term of the strategic consulting service agreement. ATA Online may terminate this agreement upon the completion of its contractual obligations under the technical support agreement and the strategic consulting service agreement as described above. As of March 31, 2015 , the remaining term of this agreement is 11.6 years, assuming no renewal of the strategic consulting service agreement. Power of attorney: Each of Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang signed a power of attorney, on March 27, 2013 and April 3, 2013 respectively, with ATA Learning to exclusively assign their rights as an shareholder of ATA Online to ATA Learning, including but not limited to voting right and right to appoint director and executive management of ATA Online. The assignment of the shareholder’s rights is legally binding, irrevocable. The agreement is retrospectively effective when the call option and cooperation agreement and equity pledge agreement were effective and remains effective as long as the call option and cooperation agreement and equity pledge agreement are effective. The Company’s involvement with the VIEs under the VIE Agreements affected the Company’s consolidated financial position, results of operations and cash flows as indicated below. The assets and liabilities of ATA Online as of March 31, 201 4 and 201 5 and the net revenue and net income (loss) and cash flows for the years ended March 31, 20 1 3 , 201 4 and 201 5 are as follows: March 31, 2014 2015 RMB RMB Cash Accounts receivable, net Prepayment and other current assets Amounts due from related parties Total current assets Equity method investments — Property and equipment, net Other assets — Total assets Accrued expenses and other payables Amounts due to related parties Deferred revenue Total current liabilities and total liabilities Year ended March 31, 2013 2014 2015 RMB RMB RMB Net revenue Net income (loss) ) Year ended March 31, 2013 2014 2015 RMB RMB RMB Net cash provided by (used in) operating activities ) Net cash used in investing activities ) ) ) Net cash used in financing activities — — — Amounts due from related parties’ represent the amount due from ATA BVI , ATA Learning and ATA Testing , which are eliminated on consolidation. Amounts due to related parties represent the amount due to ATA BVI , ATA Learning and ATA Testing , which are eliminated on consolidation. All of the assets of ATA Online can be used only to settle obligations of ATA Online. None of the assets of ATA Online has been pledged or collateralized. The creditors of ATA Online do not have recourse to the general credit of ATA BVI or the Company. |
Recently issued accounting standards | ( x ) Recently issued accounting standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”) . ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is effective for annual reporting periods beginning after December 15, 2017. The Company will implement the provision of ASU 2014-09 as of April 1, 2018. The Company has not yet determined the impact of the new standard on its current policies for revenue recognition. |
DESCRIPTION OF BUSINESS, ORGA28
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
Net revenues | Customer concentration risk | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | Year Ended March 31, 2013 2014 2015 RMB % RMB % RMB % Securities Association of China The Chinese Institute of Certified Public Accountants China Banking Association Ministry of Human Resources and Social Security |
Accounts receivable, net | Credit concentration risk, customers or financial institutions | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | March 31, 2014 2015 RMB % RMB % Securities Association of China |
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | March 31, 2014 2015 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) — Denominated in United Stated Dollars (“USD”) Total cash and cash equivalents balances held at mainland PRC financial institutions Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB — Denominated in Hong Kong Dollar — Denominated in USD — Denominated in GBP — Total cash balances held at HKSAR financial institutions Total cash and cash equivalents balances held at financial institutions |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of test monitoring costs and royalty fees | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Test monitoring costs Royalty fees |
Schedule of useful lives of property and equipment | Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements the lease terms |
Schedule of allocation of recognized employee benefit expenses | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans |
Schedule of assets and liabilities and the net revenue and net income (loss) and cash flows of ATA Online | March 31, 2014 2015 RMB RMB Cash Accounts receivable, net Prepayment and other current assets Amounts due from related parties Total current assets Equity method investments — Property and equipment, net Other assets — Total assets Accrued expenses and other payables Amounts due to related parties Deferred revenue Total current liabilities and total liabilities Year ended March 31, 2013 2014 2015 RMB RMB RMB Net revenue Net income (loss) ) Year ended March 31, 2013 2014 2015 RMB RMB RMB Net cash provided by (used in) operating activities ) Net cash used in investing activities ) ) ) Net cash used in financing activities — — — |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | March 31, 2014 2015 RMB RMB Accounts receivable Less: allowance for doubtful accounts ) ) Accounts receivable, net |
Schedule of activities in the allowance for doubtful accounts | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Beginning allowance for doubtful accounts Additions charged to (reversal of) provision for doubtful accounts ) Write-off of accounts receivable ) ) ) Ending allowance for doubtful accounts |
PREPAID EXPENSES AND OTHER CU31
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | March 31, 2014 2015 RMB RMB Income tax receivable Deferred income tax assets (note 10) Advances to employees Other current assets Total prepaid expenses and other current assets |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | March 31, 2014 2015 RMB RMB Building Computer equipment Furniture, fixtures and office equipment Software Motor vehicles Leasehold improvements Less: accumulated depreciation and amortization ) ) Property and equipment, net |
Schedule of allocation of depreciation expense recognized | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total depreciation expense |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
INTANGIBLE ASSETS, NET | |
Summary of company's intangible assets | March 31, 2014 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years ETS TOEIC license ) ) — 10 Customer relationships ) — 12 Training platform ) — 5 Contracts in progress (i) ) — — Total intangible assets ) ) March 31, 2015 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Contracts in progress (i) ) ) — — Total intangible assets ) ) (i) Contracts in progress of RMB 569,087 and RMB 346,140 recognized at the acquisition date was deducted from the billing upon completion of certain contracts as of March 31, 2014 and 2015. The Company recognized an impairment charge of RMB 310,153 upon the cancellation of certain contracts during the year ended March 31, 2015. |
Schedule of estimated amortization expense | March 31 RMB 2016 2017 2018 2019 2020 |
ACCRUED EXPENSES AND OTHER PA34
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
Schedule of accrued expenses and other payables | March 31, 2014 2015 RMB RMB Business tax, value-added tax and other taxes payable Accrued payroll and welfare Accrued test monitoring fees Accrued certificates costs Royalty fees payable Income taxes payable Other current liabilities Total accrued expenses and other payables |
DEFERRED REVENUES (Tables)
DEFERRED REVENUES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
DEFERRED REVENUES | |
Schedule of deferred revenues | March 31, 2014 2015 RMB RMB Testing services Test preparation and training solutions Other revenue — test-based education services Other revenue — licensing fees from authorized test centers Other revenue — others Total deferred revenues Representing: Current deferred revenues Non-current deferred revenues |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
NET REVENUES | |
Schedule of net revenues | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Testing services Test preparation and training solutions Other revenue Net revenues |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
INCOME TAXES | |
Schedule of earnings before income taxes generated in jurisdictions | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cayman Islands and British Virgin Islands ) ) ) PRC Hong Kong — Earnings before income taxes |
Schedule of income tax expense (benefit) | Year Ended March 31, 2013 2014 2015 RMB RMB RMB PRC Current expense Deferred expense (benefit) ) ) ) Dividend withholding tax — — Total income tax expense |
Schedule of difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings before income taxes | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Computed “expected” income tax expense Increase (decrease) in valuation allowance ) Preferential income tax rate ) ) ) Entities not subject to income tax Non-deductible expenses Entertainment Share-based compensation Bad debt loss Impairment of ETS TOEIC license — — Changes in tax rates — — Tax rate differential ) Dividend withholding tax — — Additional deduction of research and development costs ) ) ) Other Actual income tax expense |
Schedule of components of deferred income tax assets and liabilities | March 31, 2014 2015 RMB RMB Deferred income tax assets: Tax loss carryforwards Share of loss of equity method investments Property and equipment, net Allowance for doubtful accounts — Write-down of inventories — Accrued expenses and other payables Total gross deferred income tax assets Less: valuation allowance ) ) Net deferred income tax assets Deferred income tax liabilities: Customer relationships Training platform Contract in progress — Total gross deferred income tax liabilities Net deferred income tax assets |
Schedule of current and non-current deferred income tax assets and liabilities | March 31, 2014 2015 RMB RMB Current deferred income tax assets, included in prepaid expenses and other current assets Non-current deferred income tax assets, included in other assets Net deferred income tax assets |
Summary of movements of the valuation allowance | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Balance at the beginning of the year Additions from Xing Wei Group acquisition — — Additions of valuation allowance excluding acquisition — Reduction of valuation allowance ) — — Balance at the end of the year |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
SHARE BASED COMPENSATION | |
Schedule of stock options activity | Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2012 Granted — — Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2013 Granted Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2014 Granted Exercised ) Forfeited ) Expired ) Outstanding as of March 31, 2015 Vested and expected to vest as of March 31, 2015 Nil Exercisable as of March 31, 2015 Nil |
Schedule of information relating to options outstanding and exercisable | Options outstanding as of March 31, 2015 Options exercisable as of March 31, 2015 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years — |
Summary of assumptions used in the valuation model | Year Ended March 31, 2013 2014 2015 Expected dividend yield — Expected volatility — Expected term — Risk-free interest rate (per annum) — |
SHARE BASED COMPENSATION | |
Summary of the nonvested share activities | Weighted average Number grant date of shares fair value USD Outstanding at March 31, 2012 Granted Vested ) ) Forfeited ) Outstanding at March 31, 2013 Granted Vested ) Forfeited ) Outstanding at March 31, 2014 Granted — — Vested ) Forfeited ) Outstanding at March 31, 2015 |
Nonvested shares | |
SHARE BASED COMPENSATION | |
Schedule of allocation of recognized compensation expense | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total share based compensation expense |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments under non-cancelable operating leases | Minimum Lease Payments Amount RMB Year ended March 31: 2016 2017 2018 2019 2020 Thereafter — |
Schedule of future minimum payments under the non-cancelable purchase agreement | Required Payments Amount RMB Year ended March 31: 2016 2017 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
OPERATING LEASES | |
Schedule of property on operating leases | Property on Operating Lease March 31, 2014 March 31, 2015 RMB RMB Building Less: Accumulated depreciation ) ) |
Schedule of future minimum rentals under non-cancelable operating leases | Rentals under Operating Lease Future minimum rentals under non-cancelable operating lease as of March 31, 201 5 are: Minimum Rentals Amount RMB Year ended March 31: 2016 2017 2018 2019 2020 Thereafter — |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
EARNINGS PER COMMON SHARE | |
Schedule of basic and diluted earnings per common share | Year Ended March 31, 2013 2014 2015 RMB RMB RMB Numerator: Net earnings Less: Dividends paid to participating securities ) — ) Net earnings attributable to participating securities — ) — Net earnings available to common shareholders Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding Plus: Incremental shares issuable upon exercise of share options — Denominator for diluted earnings per share Basic earnings per common share Diluted earnings per common share |
Summary of potential common shares outstanding excluded from the calculation of diluted earnings per share | Year ended March 31, 2013 2014 2015 Shares issuable under share options |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
ACQUISITION | |
Schedule of pro forma summary presents consolidated information of the Company as if the business combination had occurred on April 1, 2012 | Pro forma year ended March 31, 2013(Unaudited) Pro forma year ended March 31, 2014(Unaudited) RMB RMB Net revenue Net income |
Summary of consideration paid to acquire Xing Wei Group and the amounts of identifiable assets acquired and liabilities assumed at the acquisition date | October 31, 2013 RMB Fair value of consideration transferred: Cash Fair values of identifiable assets acquired and liabilities assumed: Cash Accounts receivable and other current assets Contracts in progress Property and equipment Training platform Accrued expenses and other current liabilities ) Total identifiable net assets Goodwill |
ATA INC (Parent Company) (Table
ATA INC (Parent Company) (Tables) | 12 Months Ended |
Mar. 31, 2015 | |
ATA INC. ("Parent Company") | |
Schedule of condensed balance sheets | Condensed Balance Sheets March 31, 2014 2015 2015 RMB RMB USD Cash Prepaid expenses and other current assets Investments in subsidiaries Total assets Accrued expenses and other current liabilities Total liabilities Common shares Treasury shares ) ) ) Additional paid in capital Accumulated other comprehensive loss ) ) ) Retained earnings (accumulated deficit) ) Total shareholders’ equity Total liabilities and shareholders’ equity |
Schedule of condensed statements of comprehensive income | Condensed Statements of Comprehensive Income Year Ended March 31, 2013 2014 2015 2015 RMB RMB RMB USD Operating expenses ) ) ) ) Investment income Interest income Foreign currency exchange gains (losses), net ) ) ) Earnings before income taxes Income tax expense — — — — Net income Foreign currency translation adjustment, net of nil income taxes ) ) ) ) Comprehensive income |
Schedule of condensed statements of cash flows | Condensed Statements of Cash Flows Year Ended March 31, 2013 2014 2015 2015 RMB RMB RMB USD Net cash used in operating activities ) ) ) ) Cash flows from investing activities : Collection from (payment to) subsidiaries ) Payment for XingWei acquisition — ) — — Net cash provided by investing activities ) Cash flows from financing activities : Proceeds from exercise of share options — — — — Cash paid for employee individual income tax of net-settlement of vested shares ) — — — Cash paid for repurchase of common shares ) ) ) ) Proceeds from exercise of share options — — Special cash dividend ) — — — Net cash used in financing activities ) ) ) ) Effect of foreign exchange rate changes on cash ) ) ) ) Net decrease in cash ) ) ) ) Cash at beginning of year Cash at end of year |
DESCRIPTION OF BUSINESS, ORGA44
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Details) | 12 Months Ended | |||||||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014USD ($) | Mar. 31, 2014CNY (¥) | Mar. 31, 2012CNY (¥) | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | ||||||||
Period in which PRC government pursuing economic reform policies | 30 years | 30 years | ||||||
Significant Concentrations and Risks | ||||||||
Net revenue | $ 56,486,179 | ¥ 350,157,824 | ¥ 384,668,378 | ¥ 366,675,495 | ||||
Accounts receivable, net | 7,767,389 | ¥ 48,150,046 | ¥ 68,353,075 | |||||
Cash and cash equivalents balances | $ 38,763,570 | 290,029,715 | 240,295,371 | $ 50,322,164 | 311,947,098 | ¥ 257,167,696 | ||
Net revenues | Customer concentration risk | Chinese government controlled entities | ||||||||
Significant Concentrations and Risks | ||||||||
Service fees | ¥ 246,200,000 | ¥ 250,300,000 | ¥ 246,900,000 | |||||
Percentage of concentration of risk | 70.30% | 70.30% | 65.10% | 67.30% | ||||
Net revenues | Customer concentration risk | Securities Association of China | ||||||||
Significant Concentrations and Risks | ||||||||
Net revenue | ¥ 66,847,350 | ¥ 64,057,268 | ¥ 84,244,267 | |||||
Percentage of concentration of risk | 19.10% | 19.10% | 16.70% | 23.00% | ||||
Net revenues | Customer concentration risk | The Chinese Institute of Certified Public Accountants | ||||||||
Significant Concentrations and Risks | ||||||||
Net revenue | ¥ 64,944,327 | ¥ 61,654,948 | ¥ 54,255,662 | |||||
Percentage of concentration of risk | 18.50% | 18.50% | 16.00% | 14.80% | ||||
Net revenues | Customer concentration risk | China Banking Association | ||||||||
Significant Concentrations and Risks | ||||||||
Net revenue | ¥ 64,169,577 | ¥ 67,516,046 | ¥ 60,573,979 | |||||
Percentage of concentration of risk | 18.30% | 18.30% | 17.60% | 16.50% | ||||
Net revenues | Customer concentration risk | Ministry of Human Resources and Social Security | ||||||||
Significant Concentrations and Risks | ||||||||
Net revenue | ¥ 35,132,028 | ¥ 29,333,419 | ¥ 22,747,389 | |||||
Percentage of concentration of risk | 10.00% | 10.00% | 7.60% | 6.20% | ||||
Accounts receivable, net | Credit concentration risk, customers or financial institutions | Securities Association of China | ||||||||
Significant Concentrations and Risks | ||||||||
Percentage of concentration of risk | 44.90% | 44.90% | 25.60% | |||||
Accounts receivable, net | 21,601,986 | 17,481,156 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 240,295,371 | 311,947,098 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | PRC | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 190,965,075 | 298,016,426 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | PRC | Denominated in Renminbi ("RMB") | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 190,964,354 | 291,498,542 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | PRC | Denominated in United Stated Dollars ("USD") | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 721 | 6,517,884 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | HKSAR | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 49,330,296 | 13,930,672 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Renminbi ("RMB") | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 43,214,291 | 12,052,519 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Hong Kong Dollar | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 33,442 | 307,363 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in United Stated Dollars ("USD") | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | 5,973,846 | ¥ 1,570,790 | ||||||
Cash and cash equivalent | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in GBP | ||||||||
Significant Concentrations and Risks | ||||||||
Cash and cash equivalents balances | ¥ 108,717 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Mar. 01, 2014floor | Mar. 31, 2015CNY (¥)flooritem¥ / $ | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) |
Foreign currency translation and risks | ||||
Rate for translation of balances of financial statements from RMB to US$ | ¥ / $ | 6.1990 | |||
Revenue recognition | ||||
Business tax as a percentage of gross revenues | 5.00% | |||
VAT rate one as a percentage of gross revenues | 3.00% | |||
VAT rate two as a percentage of gross revenues | 6.00% | |||
Cost of revenues | ||||
Test monitoring costs | ¥ 113,042,449 | ¥ 124,427,159 | ¥ 129,127,028 | |
Royalty fees | 4,991,524 | 14,850,125 | 15,594,990 | |
Restricted cash | ||||
Restricted cash | ¥ 0 | 2,700,000 | ||
Building | ||||
Revenue recognition | ||||
Number of floor rented out under operating lease | floor | 1 | 1 | ||
Software developed for internal use | ||||
Research and development costs | ||||
Capitalized costs for the period | ¥ 0 | 0 | 0 | |
Software developed for sale | ||||
Research and development costs | ||||
Capitalized costs for the period | ¥ 0 | ¥ 0 | ¥ 0 | |
Online test preparation and training service | Minimum | ||||
Revenue recognition | ||||
Period for which end users can access services | 90 days | |||
Online test preparation and training service | Maximum | ||||
Revenue recognition | ||||
Period for which end users can access services | 365 days | |||
Test-based education services | Minimum | ||||
Revenue recognition | ||||
Number of courses for which fees are not refundable if they are not completed | item | 1 | |||
Test-based educational services for degree major course programs | Minimum | ||||
Revenue recognition | ||||
Period of revenue recognition | 10 months | |||
Test-based educational services for degree major course programs | Maximum | ||||
Revenue recognition | ||||
Period of revenue recognition | 12 months | |||
Other revenue - licensing fees from authorized test centers | ||||
Revenue recognition | ||||
Period of revenue recognition | 10 years | |||
Test development services | Minimum | ||||
Revenue recognition | ||||
Period for development of tests | 2 months | |||
Test development services | Maximum | ||||
Revenue recognition | ||||
Period for development of tests | 6 months |
SUMMARY OF SIGNIFICANT ACCOUN46
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Mar. 31, 2015 | |
Building | |
Property and equipment, net | |
Useful lives | 30 years |
Computer equipment | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Computer equipment | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Furniture, fixtures and office equipment | |
Property and equipment, net | |
Useful lives | 5 years |
Software | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Software | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Motor vehicles | |
Property and equipment, net | |
Useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Intangible assets | ||||
Intangible assets with indefinite useful lives | ¥ 0 | |||
Impairment of long-lived assets, excluding goodwill | ||||
Impairment loss of intangible assets | $ 50,033 | 310,153 | ¥ 12,009,457 | ¥ 0 |
Goodwill | ||||
Goodwill impairment loss | ¥ 0 | ¥ 0 | ¥ 0 | |
Minimum | ||||
Intangible assets | ||||
Estimated useful lives | 5 years | 5 years | ||
Maximum | ||||
Intangible assets | ||||
Estimated useful lives | 12 years | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) | 12 Months Ended | ||
Mar. 31, 2015CNY (¥)segment | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 18,077,892 | ¥ 16,415,881 | ¥ 16,990,702 |
Segment reporting | |||
Number of operating segments | segment | 1 | ||
Cost of revenues | |||
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 5,597,846 | 5,375,566 | 4,898,098 |
Research and development | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 5,563,607 | 4,960,632 | 4,214,374 |
Sales and marketing | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 4,045,878 | 3,511,656 | 5,269,923 |
General and administrative | |||
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 2,870,561 | ¥ 2,568,027 | ¥ 2,608,307 |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 5) | May. 20, 2015CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | May. 19, 2015 | Mar. 31, 2015CNY (¥) | Jul. 07, 2009CNY (¥) | Oct. 27, 2006CNY (¥) |
Assets and liabilities | |||||||||
Accounts receivable, net | $ 7,767,389 | ¥ 68,353,075 | ¥ 48,150,046 | ||||||
Prepayment and other current assets | 3,953,097 | 15,092,674 | 24,505,249 | ||||||
Total current assets | 50,484,056 | 398,092,847 | 312,950,666 | ||||||
Equity method investments | 5,763,808 | 35,729,848 | |||||||
Property and equipment, net | 10,117,821 | 55,814,182 | 62,720,375 | ||||||
Other assets | 1,917,687 | 4,524,858 | 11,887,740 | ||||||
Total assets | 73,438,344 | 491,236,724 | 455,244,300 | ||||||
Accrued expenses and other payables | 8,778,097 | 68,766,143 | 54,415,425 | ||||||
Deferred revenues | 3,507,458 | 8,383,327 | 21,742,735 | ||||||
Total current liabilities and total liabilities | 12,570,074 | 79,344,852 | 77,921,892 | ||||||
Net revenue and net income (loss) | |||||||||
Net revenue | 56,486,179 | ¥ 350,157,824 | 384,668,378 | ¥ 366,675,495 | |||||
Net income (loss) | 3,719,265 | 23,055,720 | 27,276,435 | 23,207,990 | |||||
Cash flows | |||||||||
Net cash provided by (used in) operating activities | 7,396,714 | 45,852,235 | 37,343,760 | 67,777,743 | |||||
Net cash used in investing activities | (8,510,959) | (52,759,443) | (13,959,185) | (7,966,826) | |||||
Net cash used in financing activities | $ (10,269,513) | (63,660,710) | (700,409) | (26,574,151) | |||||
VIE | |||||||||
Assets and liabilities | |||||||||
Cash | 33,698,280 | 18,397,974 | |||||||
Accounts receivable, net | 19,564,392 | 23,145,899 | |||||||
Prepayment and other current assets | 1,455,916 | 5,228,560 | |||||||
Amounts due from related parties | 3,815,811 | 25,159 | |||||||
Total current assets | 58,534,399 | 46,797,592 | |||||||
Equity method investments | 0 | 35,729,848 | |||||||
Property and equipment, net | 894,182 | 562,021 | |||||||
Other assets | 0 | 8,171,895 | |||||||
Total assets | 59,428,581 | 91,261,356 | |||||||
Accrued expenses and other payables | 14,280,824 | 15,011,489 | |||||||
Amounts due to related parties | 9,708,450 | 19,436,997 | |||||||
Deferred revenues | 1,308,993 | 731,490 | |||||||
Total current liabilities and total liabilities | 25,298,267 | 35,179,976 | |||||||
Net revenue and net income (loss) | |||||||||
Net revenue | 154,454,044 | 100,204,186 | 24,960,260 | ||||||
Net income (loss) | 21,951,065 | 13,224,130 | (10,495,582) | ||||||
Cash flows | |||||||||
Net cash provided by (used in) operating activities | 22,655,696 | 21,829,320 | (13,227,174) | ||||||
Net cash used in investing activities | ¥ (37,956,001) | (249,904) | (1,128,140) | ||||||
Assets pledged or collateralized | 0 | ||||||||
VIE | |||||||||
Variable Interest Entity | |||||||||
Legal ownership interest (as a percent) | 0.00% | ||||||||
Consideration/proceeds for transferring VIE to ATA Learning and Zhongxiao Zhixing | ¥ 10,000,000 | ||||||||
Percentage of equity interest that can be acquired as per exclusive purchase option | 100.00% | 100.00% | |||||||
VIE | Technical support agreement and strategic consulting service agreement | |||||||||
Variable Interest Entity | |||||||||
Amount billed | ¥ 18,000,000 | 8,000,000 | 12,600,000 | ||||||
Amount collected | ¥ 0 | ¥ 12,600,000 | 8,000,000 | ||||||
VIE | Technical support agreement | |||||||||
Variable Interest Entity | |||||||||
Term of agreement | 10 years | 10 years | |||||||
Remaining term of agreement | 1 year 7 months 6 days | 1 year 7 months 6 days | |||||||
Automatic renewal term of the agreement | 1 year | 1 year | |||||||
Notice period prior to expiration of agreement | 30 days | 30 days | |||||||
VIE | Strategic consulting service agreement | |||||||||
Variable Interest Entity | |||||||||
Term of agreement | 20 years | 20 years | |||||||
Remaining term of agreement | 11 years 7 months 6 days | 11 years 7 months 6 days | |||||||
Automatic renewal term of the agreement | 1 year | 1 year | |||||||
Notice period prior to expiration of agreement | 30 days | 30 days | |||||||
VIE | Call option and cooperation agreement | |||||||||
Variable Interest Entity | |||||||||
Notice period prior to expiration of agreement | 30 days | 30 days | |||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | |||||||||
Variable Interest Entity | |||||||||
Equity investment by co-founders in Variable Interest Entity | 10,000,000 | ||||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Loan agreements | |||||||||
Variable Interest Entity | |||||||||
Interest free loans to VIE's equity holders for the sole purpose of investing in VIE as VIE's registered capital | ¥ 10,000,000 | ||||||||
Term of agreement | 10 years | 10 years | |||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Loan on October 27, 2006 | |||||||||
Variable Interest Entity | |||||||||
Interest free loans to VIE's equity holders for the sole purpose of investing in VIE as VIE's registered capital | ¥ 1,000,000 | ||||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Loan on July 7, 2009 | |||||||||
Variable Interest Entity | |||||||||
Interest free loans to VIE's equity holders for the sole purpose of investing in VIE as VIE's registered capital | ¥ 9,000,000 | ||||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Equity pledge agreement | |||||||||
Variable Interest Entity | |||||||||
Remaining term of agreement | 11 years 7 months 6 days | 11 years 7 months 6 days |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) | 12 Months Ended | |||||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | |
ACCOUNTS RECEIVABLE, NET | ||||||
Accounts receivable | ¥ 53,153,164 | ¥ 73,041,508 | ||||
Less: allowance for doubtful accounts | ¥ (4,688,433) | ¥ (35,005,069) | ¥ (30,100,005) | (5,003,118) | (4,688,433) | |
Accounts receivable, net | $ 7,767,389 | ¥ 48,150,046 | ¥ 68,353,075 | |||
Activity in allowance for doubtful accounts for accounts receivable | ||||||
Beginning allowance for doubtful accounts | 4,688,433 | 35,005,069 | 30,100,005 | |||
Additions charged to (reversal of) provision for doubtful accounts | $ 136,468 | 845,965 | (3,738,232) | 9,140,062 | ||
Write-off of accounts receivable | (531,280) | (26,578,404) | (4,234,998) | |||
Ending allowance for doubtful accounts | ¥ 5,003,118 | ¥ 4,688,433 | ¥ 35,005,069 |
PREPAID EXPENSES AND OTHER CU51
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Income tax receivable | ¥ 7,876,523 | ¥ 429,642 | |
Deferred income tax assets (note 10) | 9,490,107 | 8,429,138 | |
Advances to employees | 1,432,927 | 1,134,415 | |
Other current assets | 5,705,692 | 5,099,479 | |
Total prepaid expenses and other current assets | $ 3,953,097 | ¥ 24,505,249 | ¥ 15,092,674 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015CNY (¥) | Jan. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Aug. 31, 2014CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2015CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | |||||||
Cash consideration | $ 6,122,578 | ¥ 37,953,864 | |||||
Carrying value of the investment | 5,763,808 | ¥ 35,729,848 | |||||
Share of loss recognized | $ 354,372 | 2,196,750 | |||||
Zhishang | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of investment made | 45.00% | ||||||
Cash consideration | ¥ 13,500,000 | ||||||
Carrying value of the investment | 12,396,725 | ||||||
Share of loss recognized | 1,103,275 | ||||||
Master Mind | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of investment made | 33.00% | ||||||
Cash consideration | ¥ 12,302,000 | ¥ 18,453,864 | |||||
Carrying value of the investment | 17,543,789 | ||||||
Share of loss recognized | 882,809 | ||||||
Master Mind | Net revenue of equity investee, threshold one | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Net revenue threshold | ¥ 157,000,000 | ||||||
Increase in ownership percentage | 18.00% | 18.00% | |||||
Master Mind | Net revenue of equity investee, threshold two | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Net revenue threshold | ¥ 236,000,000 | ||||||
Increase in ownership percentage | 12.00% | 12.00% | |||||
Master Mind | Net revenue of equity investee, threshold three | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Net revenue threshold | ¥ 315,000,000 | ||||||
Increase in ownership percentage | 6.00% | 6.00% | |||||
Satech | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of investment made | 20.00% | ||||||
Cash consideration | ¥ 6,000,000 | ||||||
Carrying value of the investment | ¥ 5,789,334 | ||||||
Share of loss recognized | ¥ 210,666 | ||||||
Satech | Net revenue of equity investee, threshold four | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Net revenue threshold | ¥ 55,000,000 | ||||||
Increase in ownership percentage | 31.00% | 31.00% |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | ||||
Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 101,964,588 | ¥ 115,347,127 | |||
Less: accumulated depreciation and amortization | (46,150,406) | (52,626,752) | |||
Property and equipment, net | 55,814,182 | $ 10,117,821 | 62,720,375 | ||
Total depreciation expense | ¥ 7,044,777 | 7,825,808 | ¥ 8,103,142 | ||
Cost of revenues | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 2,218,458 | 1,774,066 | 1,746,736 | ||
Research and development | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 199,886 | 727,821 | 876,166 | ||
Sales and marketing | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 464,404 | 460,870 | 726,239 | ||
General and administrative | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | ¥ 4,162,029 | 4,863,051 | ¥ 4,754,001 | ||
Building | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 53,049,213 | 53,049,213 | |||
Computer equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 25,831,772 | 26,720,083 | |||
Furniture, fixtures and office equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 337,442 | 2,312,815 | |||
Software | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 13,676,153 | 15,473,639 | |||
Motor vehicles | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 2,277,113 | 2,277,113 | |||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 6,792,895 | ¥ 15,514,264 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Intangible assets | ||||
Gross carrying amount | ¥ 2,948,080 | ¥ 27,074,786 | ||
Accumulated amortization/deduction | (1,694,158) | (13,272,394) | ||
Impairment | (310,153) | (12,009,457) | ||
Net carrying amount | 943,769 | 1,792,935 | ||
Amortization expenses | 192,873 | 2,359,475 | ¥ 2,514,392 | |
Impairment of intangible assets | $ 50,033 | 310,153 | 12,009,457 | ¥ 0 |
Estimated amortization expense | ||||
2,016 | 192,873 | |||
2,017 | 192,873 | |||
2,018 | 192,873 | |||
2,019 | 157,648 | |||
2,020 | 108,333 | |||
ETS TOEIC license | ||||
Intangible assets | ||||
Gross carrying amount | 24,126,706 | |||
Accumulated amortization/deduction | (12,117,249) | |||
Impairment | ¥ (12,009,457) | |||
Weighted Average Amortization Period | 10 years | |||
Impairment of intangible assets | ¥ 12,009,457 | |||
Customer relationships | ||||
Intangible assets | ||||
Gross carrying amount | 1,300,000 | 1,300,000 | ||
Accumulated amortization/deduction | (659,166) | (550,833) | ||
Net carrying amount | ¥ 640,834 | ¥ 749,167 | ||
Weighted Average Amortization Period | 12 years | 12 years | 12 years | |
Training platform | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 422,700 | ¥ 422,700 | ||
Accumulated amortization/deduction | (119,765) | (35,225) | ||
Net carrying amount | ¥ 302,935 | ¥ 387,475 | ||
Weighted Average Amortization Period | 5 years | 5 years | 5 years | |
Contracts in progress | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 1,225,380 | ¥ 1,225,380 | ||
Accumulated amortization/deduction | (915,227) | (569,087) | ||
Impairment | (310,153) | |||
Net carrying amount | 656,293 | |||
Amortization expenses | 346,140 | ¥ 569,087 | ||
Impairment of intangible assets | ¥ 310,153 |
ACCRUED EXPENSES AND OTHER PA55
ACCRUED EXPENSES AND OTHER PAYABLES (Details) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
ACCRUED EXPENSES AND OTHER PAYABLES | |||
Business tax, value-added tax and other taxes payable | ¥ 4,377,930 | ¥ 8,556,910 | |
Accrued payroll and welfare | 13,748,579 | 19,379,016 | |
Accrued test monitoring fees | 12,235,005 | 14,183,667 | |
Accrued certificates costs | 3,982,958 | 2,702,086 | |
Royalty fees payable | 1,409,520 | 2,622,744 | |
Income taxes payable | 3,676,704 | 7,488,629 | |
Other current liabilities | 14,984,729 | 13,833,091 | |
Total accrued expenses and other payables | $ 8,778,097 | ¥ 54,415,425 | ¥ 68,766,143 |
DEFERRED REVENUES (Details)
DEFERRED REVENUES (Details) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
DEFERRED REVENUES | |||
Total deferred revenues | ¥ 23,506,467 | ¥ 10,578,709 | |
Representing: | |||
Current deferred revenues | $ 3,507,458 | 21,742,735 | 8,383,327 |
Non-current deferred revenues | $ 284,519 | 1,763,732 | 2,195,382 |
Testing services | |||
DEFERRED REVENUES | |||
Total deferred revenues | 19,223,983 | 4,704,072 | |
Test preparation and training solutions | |||
DEFERRED REVENUES | |||
Total deferred revenues | 578,640 | 1,210,307 | |
Test-based education services | |||
DEFERRED REVENUES | |||
Total deferred revenues | 295,135 | 327,735 | |
Other revenue - licensing fees from authorized test centers | |||
DEFERRED REVENUES | |||
Total deferred revenues | 2,425,333 | 3,036,530 | |
Other revenue - others | |||
DEFERRED REVENUES | |||
Total deferred revenues | ¥ 983,376 | ¥ 1,300,065 |
NET REVENUES (Details)
NET REVENUES (Details) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
NET REVENUES | ||||
Net revenues | $ 56,486,179 | ¥ 350,157,824 | ¥ 384,668,378 | ¥ 366,675,495 |
Testing services | ||||
NET REVENUES | ||||
Net revenues | 319,055,019 | 358,837,352 | 335,790,689 | |
Test preparation and training solutions | ||||
NET REVENUES | ||||
Net revenues | 5,710,827 | 5,949,183 | 11,343,066 | |
Other revenue | ||||
NET REVENUES | ||||
Net revenues | 25,391,978 | 19,881,843 | 19,541,740 | |
Test-based education services | ||||
NET REVENUES | ||||
Net revenues | 273,187 | 3,309,944 | 6,778,429 | |
Product sales | ||||
NET REVENUES | ||||
Net revenues | ¥ 1,252,673 | ¥ 569,579 | ¥ 1,095,370 |
INCOME TAXES (Details)
INCOME TAXES (Details) - CNY (¥) | 3 Months Ended | 12 Months Ended | 15 Months Ended | 21 Months Ended | 33 Months Ended | 36 Months Ended | 87 Months Ended | |||||||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2015 | |
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||||||||||
Undistributed earnings generated by the PRC consolidated entities | ¥ 133,856,064 | ¥ 133,856,064 | ¥ 89,611,563 | ¥ 133,856,064 | ¥ 133,856,064 | |||||||||
Unrecognized deferred income tax liability related to undistributed earnings | ¥ 13,385,606 | ¥ 13,385,606 | 8,961,156 | ¥ 13,385,606 | ¥ 13,385,606 | |||||||||
Dividend distribution from PRC subsidiaries to holding company | 113,000,000 | |||||||||||||
Dividend withholding tax | ¥ 11,300,000 | |||||||||||||
PRC | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | ||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
Withholding tax rate for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC (as a percent) | 10.00% | |||||||||||||
PRC | ATA Testing | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | ATA Testing | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
PRC | ATA Learning | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | ||||||||||||
PRC | VIE | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | VIE | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
PRC | Beijing JDX | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | ||||||||||||
PRC | Zhi Xing | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Income Taxes | ||||
Earnings before income taxes | $ 5,263,893 | ¥ 32,630,866 | ¥ 47,171,897 | ¥ 30,212,972 |
Current expense | 10,424,835 | 9,312,545 | 10,226,537 | |
Deferred expense (benefit) | (849,689) | (717,083) | (3,221,555) | |
Dividend withholding tax | 11,300,000 | |||
Total income tax expense | $ 1,544,628 | 9,575,146 | 19,895,462 | 7,004,982 |
Cayman Islands and British Virgin Islands | ||||
Income Taxes | ||||
Earnings before income taxes | (15,524,612) | (18,615,565) | (19,373,510) | |
PRC | ||||
Income Taxes | ||||
Earnings before income taxes | 48,142,932 | 65,782,659 | ¥ 49,586,482 | |
HKSAR | ||||
Income Taxes | ||||
Earnings before income taxes | ¥ 12,546 | ¥ 4,803 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
INCOME TAXES | ||||
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings (loss) before income taxes | ||||
Computed "expected" income tax expense | ¥ 8,157,716 | ¥ 11,792,976 | ¥ 7,553,243 | |
Increase (decrease) in valuation allowance | 1,307,368 | 737,572 | (735,773) | |
Preferential income tax rate | (4,922,088) | (6,208,364) | (7,069,673) | |
Entities not subject to income tax | 2,100,188 | 2,018,962 | 1,624,864 | |
Non-deductible expenses | ||||
Entertainment | 1,225,250 | 972,624 | 1,213,569 | |
Share-based compensation | 1,777,829 | 2,633,728 | 3,218,514 | |
Bad debt loss | 1,383,597 | 462,751 | 1,058,750 | |
Impairment of ETS TOEIC license | 3,002,364 | |||
Changes in tax rates | 429,667 | |||
Tax rate differential | 5,629,196 | (4,213,407) | 1,977,043 | |
Dividend withholding tax | 11,300,000 | |||
Additional deduction of research and development costs | (8,489,742) | (2,805,937) | (2,309,671) | |
Other | 1,405,832 | 202,193 | 44,449 | |
Total income tax expense | $ 1,544,628 | ¥ 9,575,146 | ¥ 19,895,462 | ¥ 7,004,982 |
INCOME TAXES (Details 4)
INCOME TAXES (Details 4) - CNY (¥) | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 |
Deferred income tax assets: | ||||
Tax loss carryforwards | ¥ 10,228,873 | ¥ 4,644,352 | ||
Share of loss of equity method investments | 164,021 | |||
Property and equipment, net | 1,091,914 | 1,494,298 | ||
Allowance for doubtful accounts | 1,172,108 | |||
Write-down of inventories | 24,237 | |||
Accrued expenses and other payables | 3,375,252 | 5,572,175 | ||
Total gross deferred income tax assets | 14,860,060 | 12,907,170 | ||
Less: valuation allowance | (3,882,555) | (2,575,187) | ¥ (921,751) | ¥ (1,657,524) |
Net deferred income tax assets | 10,977,505 | 10,331,983 | ||
Income taxes | ||||
Total gross deferred income tax liabilities | 235,977 | 440,144 | ||
Net deferred income tax assets | 10,741,528 | 9,891,839 | ||
Deferred income tax assets | ||||
Current deferred income tax assets, included in prepaid expenses and other current assets | 9,490,107 | 8,429,138 | ||
Non-current deferred income tax assets, included in other assets | 1,251,421 | 1,462,701 | ||
Net deferred income tax assets | 10,741,528 | 9,891,839 | ||
Customer relationships | ||||
Income taxes | ||||
Intangible assets acquired | 160,243 | 179,202 | ||
Training platform | ||||
Income taxes | ||||
Intangible assets acquired | ¥ 75,734 | 96,869 | ||
Contracts in progress | ||||
Income taxes | ||||
Intangible assets acquired | ¥ 164,073 |
INCOME TAXES (Details 5)
INCOME TAXES (Details 5) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Movements of the valuation allowance | |||
Balance at the beginning of the year | ¥ 2,575,187 | ¥ 921,751 | ¥ 1,657,524 |
Additions from Xing Wei Group acquisition | 915,864 | ||
Additions of valuation allowance excluding acquisition | 1,307,368 | 737,572 | |
Reduction of valuation allowance | (735,773) | ||
Balance at the end of the year | 3,882,555 | 2,575,187 | 921,751 |
Additional disclosures | |||
Unrecognized tax benefits | 0 | 0 | 0 |
Interest and penalties recorded | ¥ 0 | ¥ 0 | ¥ 0 |
Period of statute of limitations, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent | 3 years | ||
Period of statute of limitations, if the underpayment is more than RMB 100,000 | 5 years | ||
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | ¥ 100,000 | ||
Period of statute of limitations for transfer pricing issues | 10 years | ||
PRC | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | ¥ 58,324,053 | ||
PRC | December 31, 2015 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | 2,564,040 | ||
PRC | December 31, 2016 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | 0 | ||
PRC | December 31, 2017 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | 0 | ||
PRC | December 31, 2018 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | 4,996,057 | ||
PRC | December 31, 2019 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | 4,907,578 | ||
PRC | December 31, 2020 | |||
Valuation allowance and loss carry forwards | |||
Tax loss carry forwards for PRC income tax purpose | ¥ 45,856,378 |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) | Jan. 07, 2008shares | Feb. 28, 2015CNY (¥)$ / shares | Feb. 28, 2015CNY (¥)itemshares | Oct. 31, 2014CNY (¥) | Oct. 30, 2013$ / sharesshares | Apr. 30, 2005shares | Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015CNY (¥)shares | Mar. 31, 2014$ / sharesshares | Mar. 31, 2013$ / shares | Mar. 31, 2013CNY (¥)employeeshares | Oct. 31, 2007shares |
Officer(s) | Common share | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Number of officers | item | 2 | |||||||||||
Fair value of shares on the grant date | ¥ | ¥ 2,831,396 | |||||||||||
Cost of treasury shares repurchased | ¥ | ¥ 2,983,072 | ¥ 2,983,072 | ||||||||||
Amount recognized as a reduction of additional paid-in capital | ¥ | ¥ 151,676 | |||||||||||
Officer One | Common share | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Number of shares granted (in shares) | 100,000 | |||||||||||
Officer Two | Common share | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Number of shares granted (in shares) | 114,314 | |||||||||||
Options | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Number of employees of whom vested share options' exercise period is extended upon resignation | employee | 2 | |||||||||||
Additional compensation expense due to modifications recognized in the general and administrative expense | ¥ | ¥ 1,294,834 | |||||||||||
Number of shares | ||||||||||||
Outstanding at the beginning of the period (in shares) | 4,214,667 | 4,214,667 | 2,747,342 | 2,788,342 | ||||||||
Granted (in shares) | 1,469,460 | 1,469,460 | 1,469,460 | |||||||||
Exercised (in shares) | (300,000) | (300,000) | ||||||||||
Forfeited (in shares) | (1,102,095) | (1,102,095) | ||||||||||
Expired (in shares) | (396,365) | (396,365) | (2,135) | (41,000) | ||||||||
Outstanding at the end of the period (in shares) | 3,885,667 | 3,885,667 | 4,214,667 | 2,747,342 | ||||||||
Vested and expected to vest at the end of the period (in shares) | 3,885,667 | |||||||||||
Exercisable at the end of the period (in shares) | 2,416,207 | |||||||||||
Weighted average exercise | ||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 2.72 | $ 2.84 | $ 2.85 | |||||||||
Granted (in dollars per share) | $ / shares | 2.24 | 2.50 | ||||||||||
Exercised (in dollars per share) | $ / shares | 2.12 | |||||||||||
Forfeited (in dollars per share) | $ / shares | 2.50 | |||||||||||
Expired (in dollars per share) | $ / shares | 2.58 | 2.69 | 3.60 | |||||||||
Outstanding at the end of the period (in dollars per share) | $ / shares | 2.66 | $ 2.72 | $ 2.84 | |||||||||
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | 2.66 | |||||||||||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 2.92 | |||||||||||
Weighted remaining contractual Years | ||||||||||||
Vested and expected to vest at the end of the period | 4 years 1 month 17 days | 4 years 1 month 17 days | ||||||||||
Exercisable at the end of the period | 7 months 13 days | 7 months 13 days | ||||||||||
Aggregate intrinsic value | ||||||||||||
Vested and expected to vest at the end of the period (in dollars) | $ | $ 0 | |||||||||||
Exercisable at the end of the period (in dollars) | $ | 0 | |||||||||||
Additional disclosures | ||||||||||||
Total intrinsic value of options exercised (in dollars) | $ | $ 46,500 | |||||||||||
Options | Officer(s) | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | 25.00% | ||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | 75.00% | ||||||||||
Vesting period for remaining 75% shares | 3 years | 3 years | ||||||||||
Percentage forfeited | 75.00% | |||||||||||
Expense reversed, related to the unvested share options recognized previously | ¥ | ¥ 4,014,513 | |||||||||||
Number of shares | ||||||||||||
Granted (in shares) | 1,469,460 | 1,469,460 | ||||||||||
Weighted average exercise | ||||||||||||
Granted (in dollars per share) | $ / shares | ¥ 2.24 | $ 2.50 | ||||||||||
2005 Share incentive plan | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Shares authorized | 2,894,000 | 3,310,300 | ||||||||||
2005 Share incentive plan | Options | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Expiration term | 10 years | |||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | 25.00% | ||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | 75.00% | ||||||||||
Vesting period for remaining 75% shares | 36 months | 36 months | ||||||||||
2008 Share incentive plan | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Shares authorized | 336,307 | 2,690,456 | ||||||||||
Expiration term | 10 years | |||||||||||
Annual increase in shares reserved (in shares) | 336,307 | |||||||||||
Annual increase in shares reserved (as a percent) | 1.00% | |||||||||||
2008 Share incentive plan | Options | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Expiration term | 10 years | |||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | 25.00% | ||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | 75.00% | ||||||||||
Vesting period for remaining 75% shares | 36 months | 36 months | ||||||||||
2008 Share incentive plan | Nonvested shares | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Vesting rate (as a percent) at the end of each year from the grant date over 4 years | 25.00% | 25.00% | ||||||||||
Vesting period | 4 years |
SHARE BASED COMPENSATION (Det64
SHARE BASED COMPENSATION (Details 2) - Mar. 31, 2015 - $ / shares | Total |
Options outstanding at the end of the period | |
Number of Shares | 3,885,667 |
Exercise Price per Share (in dollars per share) | $ 2.66 |
Remaining Contractual Life | 4 years 1 month 17 days |
Options exercisable as of the end of the period | |
Number of Shares | 2,416,207 |
Exercise Price per Share (in dollars per share) | $ 2.92 |
Remaining Contractual Life | 7 months 13 days |
Exercise price one | |
Options outstanding at the end of the period | |
Number of Shares | 1,312,600 |
Exercise Price per Share (in dollars per share) | $ 2.26 |
Remaining Contractual Life | 1 month 6 days |
Options exercisable as of the end of the period | |
Number of Shares | 1,312,600 |
Exercise Price per Share (in dollars per share) | $ 2.26 |
Remaining Contractual Life | 1 month 6 days |
Exercise price two | |
Options outstanding at the end of the period | |
Number of Shares | 665,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 8 months 12 days |
Options exercisable as of the end of the period | |
Number of Shares | 665,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 8 months 12 days |
Exercise price three | |
Options outstanding at the end of the period | |
Number of Shares | 250,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 1 year 7 months 6 days |
Options exercisable as of the end of the period | |
Number of Shares | 250,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 1 year 7 months 6 days |
Exercise price four | |
Options outstanding at the end of the period | |
Number of Shares | 81,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 2 years 8 months 12 days |
Options exercisable as of the end of the period | |
Number of Shares | 81,000 |
Exercise Price per Share (in dollars per share) | $ 3.60 |
Remaining Contractual Life | 2 years 8 months 12 days |
Exercise price five | |
Options outstanding at the end of the period | |
Number of Shares | 100,000 |
Exercise Price per Share (in dollars per share) | $ 4.75 |
Remaining Contractual Life | 2 years 6 months |
Options exercisable as of the end of the period | |
Number of Shares | 100,000 |
Exercise Price per Share (in dollars per share) | $ 4.75 |
Remaining Contractual Life | 2 years 6 months |
Exercise price six | |
Options outstanding at the end of the period | |
Number of Shares | 7,607 |
Exercise Price per Share (in dollars per share) | $ 2.69 |
Remaining Contractual Life | 3 years 10 months 24 days |
Options exercisable as of the end of the period | |
Number of Shares | 7,607 |
Exercise Price per Share (in dollars per share) | $ 2.69 |
Remaining Contractual Life | 3 years 10 months 24 days |
Exercise price seven | |
Options outstanding at the end of the period | |
Number of Shares | 1,469,460 |
Exercise Price per Share (in dollars per share) | $ 2.24 |
Remaining Contractual Life | 9 years 10 months 24 days |
Options exercisable as of the end of the period | |
Exercise Price per Share (in dollars per share) | $ 2.24 |
Remaining Contractual Life | 9 years 10 months 24 days |
SHARE BASED COMPENSATION (Det65
SHARE BASED COMPENSATION (Details 3) - Options | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Assumptions used in the valuation model | ||
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Expected volatility (as a percent) | 71.00% | 75.00% |
Expected term | 6 years 3 months | 6 years 3 months |
Risk-free interest rate (as a percent) | 1.70% | 1.77% |
SHARE BASED COMPENSATION (Det66
SHARE BASED COMPENSATION (Details 4) - Options - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
SHARE BASED COMPENSATION | |||
Total unrecognized compensation expense | ¥ 12,003,533 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 3 years 10 months 24 days | ||
General and administrative | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 984,595 | ¥ 3,946,384 | ¥ 306,659 |
SHARE BASED COMPENSATION (Det67
SHARE BASED COMPENSATION (Details 5) | 12 Months Ended | |||||
Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015CNY (¥)shares | Mar. 31, 2014USD ($)$ / sharesshares | Mar. 31, 2014CNY (¥)shares | Mar. 31, 2013USD ($)$ / sharesshares | Mar. 31, 2013CNY (¥)shares | |
Additional disclosures | ||||||
Consideration to reacquire vested shares upon vesting to satisfy the minimum tax withholding obligation | $ 137,668 | ¥ 853,404 | ¥ 567,881 | ¥ 913,453 | ||
Nonvested shares | ||||||
Number of shares | ||||||
Outstanding at the beginning of the period (in shares) | 810,000 | 810,000 | 895,000 | 895,000 | 1,146,750 | 1,146,750 |
Granted (in shares) | 280,000 | 280,000 | 100,000 | 100,000 | ||
Vested (in shares) | (335,000) | (335,000) | (265,000) | (265,000) | (334,250) | (334,250) |
Forfeited (in shares) | (30,000) | (30,000) | (100,000) | (100,000) | (17,500) | (17,500) |
Outstanding at the end of the period (in shares) | 445,000 | 445,000 | 810,000 | 810,000 | 895,000 | 895,000 |
Weighted average grant date fair value | ||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 3.989 | $ 4.633 | $ 4.788 | |||
Granted (in dollars per share) | $ / shares | 2.145 | 2.015 | ||||
Vested (in dollars per share) | $ / shares | 4.380 | 4.963 | (4.348) | |||
Forfeited (in dollars per share) | $ / shares | 2.145 | 2.015 | 1.904 | |||
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 3.819 | $ 3.989 | $ 4.633 | |||
Additional disclosures | ||||||
Total fair value of shares vested (in dollars) | $ | $ 821,250 | $ 560,975 | $ 829,077 | |||
Number of vested shares reacquired upon vesting to satisfy the minimum tax withholding obligation | 54,000 | 54,000 | 51,676 | 51,676 | 44,564 | 44,564 |
Consideration to reacquire vested shares upon vesting to satisfy the minimum tax withholding obligation | ¥ | ¥ 853,404 | ¥ 567,881 | ¥ 913,453 |
SHARE BASED COMPENSATION (Det68
SHARE BASED COMPENSATION (Details 6) - Nonvested shares - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 6,126,721 | ¥ 6,588,526 | ¥ 11,272,563 |
Total unrecognized compensation expense | ¥ 1,389,270 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 1 year 6 months 15 days | ||
Cost of revenues | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 164,741 | 228,854 | 21,813 |
Research and development | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | 179,186 | 336,869 | 308,577 |
Sales and marketing | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | 295,519 | 454,503 | 702,683 |
General and administrative | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 5,487,275 | ¥ 5,568,300 | ¥ 10,239,490 |
COMMON SHARES (Details)
COMMON SHARES (Details) $ in Millions | 12 Months Ended | ||||
Mar. 31, 2015CNY (¥)shares | Mar. 31, 2014CNY (¥)shares | Mar. 31, 2013CNY (¥)shares | Aug. 05, 2014USD ($) | Nov. 01, 2012USD ($) | |
Common shares | |||||
Repurchase price | ¥ 8,362,136 | ¥ 132,528 | ¥ 329,357 | ||
ADS | |||||
Common shares | |||||
Authorized amount to be repurchased (in dollars) | $ | $ 5 | $ 5 | |||
Common share | |||||
Common shares | |||||
Shares repurchased | shares | 612,314 | 10,678 | 26,440 | ||
Repurchase price | ¥ 8,362,136 | ¥ 132,528 | ¥ 329,357 |
SPECIAL CASH DIVIDENDS (Details
SPECIAL CASH DIVIDENDS (Details) | May. 30, 2014$ / shares | Aug. 07, 2012$ / shares | Jul. 31, 2014USD ($) | Jul. 31, 2014CNY (¥) | Sep. 30, 2012USD ($) | Sep. 30, 2012CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2013CNY (¥) |
Special cash dividend | |||||||||
Total amount of cash distributed in the dividend | $ 9,500,000 | ¥ 58,349,122 | $ 4,000,000 | ¥ 25,331,341 | $ 9,412,667 | ¥ 58,349,122 | ¥ 25,331,341 | ||
Common share | |||||||||
Special cash dividend | |||||||||
Special cash dividend declared per share (in dollars per share) | $ 0.205 | $ 0.087 | |||||||
ADS | |||||||||
Special cash dividend | |||||||||
Special cash dividend declared per share (in dollars per share) | $ 0.41 | $ 0.174 |
STATUTORY RESERVES (Details)
STATUTORY RESERVES (Details) - CNY (¥) | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
STATUTORY RESERVES | ||
Required percentage of after tax profit transferred to general reserve fund | 10.00% | |
Percentage of registered capital limit for transfer of after tax profit to general reserve fund | 50.00% | |
Appropriation of after tax profit to general reserve fund | ¥ 26,389,274 | ¥ 20,648,182 |
COMMITMENTS AND CONTINGENCIES72
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Year ended March 31: | |||
2,016 | ¥ 14,092,657 | ||
2,017 | 9,688,776 | ||
2,018 | 10,115,305 | ||
2,019 | 10,467,905 | ||
2,020 | 10,986,576 | ||
Total | 55,351,219 | ||
Rental expense for operating leases | ¥ 14,096,009 | ¥ 7,848,918 | ¥ 6,517,907 |
Minimum | |||
Lease commitments | |||
Operating lease term | 19 months | ||
Maximum | |||
Lease commitments | |||
Operating lease term | 6 years | ||
Year ended March 31: | |||
Operating lease term which were not renewed | 1 month |
COMMITMENTS AND CONTINGENCIES73
COMMITMENTS AND CONTINGENCIES (Details 2) - CNY (¥) | Aug. 11, 2011 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Purchase commitments | ||||
License fee | ¥ 4,991,524 | ¥ 14,850,125 | ¥ 15,594,990 | |
Purchase commitments | ||||
Purchase commitments | ||||
Period covered by the purchase agreement | 10 years | |||
2,016 | 3,456,000 | |||
2,017 | 1,152,000 | |||
Total | 4,608,000 | |||
License fee | ¥ 2,282,288 | ¥ 2,820,414 | ¥ 2,897,395 | |
Purchase commitments | Minimum | ||||
Purchase commitments | ||||
Written notice period required to terminate agreement | 12 months |
OPERATING LEASES (Details)
OPERATING LEASES (Details) - Building | Mar. 01, 2014floor | Mar. 31, 2015CNY (¥)floor | Mar. 31, 2014CNY (¥) |
Operating leases | |||
Number of floor leased | floor | 1 | 1 | |
Operating lease term | 6 years | ||
Property on Operating Lease, gross | ¥ 26,251,157 | ¥ 26,251,157 | |
Less: Accumulated depreciation | (5,038,472) | (4,156,433) | |
Property and equipment, net | 21,212,685 | ¥ 22,094,724 | |
Future minimum rentals | |||
2,016 | 3,308,825 | ||
2,017 | 3,475,825 | ||
2,018 | 3,647,360 | ||
2,019 | 3,830,195 | ||
2,020 | 3,663,927 | ||
Total | ¥ 17,926,132 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) | 12 Months Ended | |||
Mar. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2015CNY (¥)¥ / sharesshares | Mar. 31, 2014CNY (¥)¥ / sharesshares | Mar. 31, 2013CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net earnings | $ 3,719,265 | ¥ 23,055,720 | ¥ 27,276,435 | ¥ 23,207,990 |
Less: Dividends paid to participating securities | ¥ | (693,728) | (525,049) | ||
Net earnings attributable to participating securities | ¥ | (509,201) | |||
Net earnings available to common shareholders | ¥ | ¥ 22,361,992 | ¥ 26,767,234 | ¥ 22,682,941 | |
Denominator for basic earnings per share: | ||||
Weighted average common shares outstanding | 45,597,580 | 45,597,580 | 45,227,159 | 44,967,823 |
Plus: Incremental shares issuable upon exercise of share options | 4,396 | 147,794 | ||
Denominator for diluted earnings per share | 45,597,580 | 45,597,580 | 45,231,555 | 45,115,617 |
Basic earnings per common share | (per share) | $ 0.08 | ¥ 0.49 | ¥ 0.59 | ¥ 0.50 |
Diluted earnings per common share | (per share) | $ 0.08 | ¥ 0.49 | ¥ 0.59 | ¥ 0.50 |
Shares issuable under share options | 3,885,667 | 3,885,667 | 3,914,667 | 1,134,742 |
ACQUISITION (Details)
ACQUISITION (Details) | Nov. 01, 2013USD ($) | Oct. 31, 2013USD ($) | Oct. 31, 2013CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) |
Fair values of identifiable assets acquired and liabilities assumed | ||||||||
Goodwill | ¥ 31,011,902 | ¥ 31,011,902 | $ 5,002,727 | ¥ 31,011,902 | ||||
Xing Wei Group | ||||||||
Acquisition | ||||||||
Cash consideration | $ 3,190,000 | ¥ 19,612,120 | ||||||
Cash paid | $ | $ 3,190,000 | |||||||
Net revenue | 305,607 | |||||||
Net loss | ¥ 1,702,306 | |||||||
Pro forma | ||||||||
Net revenue | 386,386,238 | ¥ 367,598,801 | ||||||
Net income | 23,342,382 | ¥ 20,640,931 | ||||||
Additional disclosure | ||||||||
Acquisition related costs | ¥ 676,237 | |||||||
Fair value of consideration transferred: | ||||||||
Cash | $ 3,190,000 | 19,612,120 | ||||||
Fair values of identifiable assets acquired and liabilities assumed | ||||||||
Cash | 9,785,414 | |||||||
Accounts receivable and other current assets | 710,300 | |||||||
Property and equipment | 165,168 | |||||||
Accrued expenses and other current liabilities | (285,894) | |||||||
Total identifiable net assets | 12,023,068 | |||||||
Goodwill | 7,589,052 | |||||||
Total identifiable assets acquired and liabilities assumed, including goodwill | 19,612,120 | |||||||
Xing Wei Group | Training platform | ||||||||
Fair values of identifiable assets acquired and liabilities assumed | ||||||||
Intangible asset | 422,700 | |||||||
Xing Wei Group | Contracts in progress | ||||||||
Fair values of identifiable assets acquired and liabilities assumed | ||||||||
Intangible asset | ¥ 1,225,380 |
ATA INC (Parent Company) (Detai
ATA INC (Parent Company) (Details) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014USD ($) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | Mar. 31, 2012CNY (¥) |
Condensed Financial Statements | ||||||
Prepaid expenses and other current assets | $ 3,953,097 | ¥ 24,505,249 | ¥ 15,092,674 | |||
Total assets | 73,438,344 | 455,244,300 | 491,236,724 | |||
Accrued expenses and other current liabilities | 8,778,097 | 54,415,425 | 68,766,143 | |||
Total liabilities | 12,570,074 | 77,921,892 | 79,344,852 | |||
Common shares | 566,820 | 3,513,718 | 3,474,894 | |||
Treasury shares | (1,322,963) | (8,201,045) | (1,029,766) | |||
Additional paid in capital | 62,510,534 | 387,502,800 | 437,964,776 | |||
Accumulated other comprehensive loss | (4,384,043) | (27,176,682) | (27,145,929) | |||
Retained earnings (accumulated deficit) | 3,497,922 | 21,683,617 | (1,372,103) | |||
Total shareholders' equity | 60,868,270 | 377,322,408 | 411,891,872 | ¥ 375,547,719 | ¥ 366,414,571 | |
Total liabilities and shareholders' equity | 73,438,344 | 455,244,300 | 491,236,724 | |||
ATA INC. | ||||||
Condensed Financial Statements | ||||||
Cash | 1,323,455 | 8,204,099 | $ 1,504,668 | 9,327,438 | ¥ 41,744,636 | ¥ 48,532,826 |
Prepaid expenses and other current assets | 29,725 | 184,266 | 174,575 | |||
Investments in subsidiaries | 59,751,156 | 370,397,418 | 403,522,684 | |||
Total assets | 61,104,336 | 378,785,783 | 413,024,697 | |||
Accrued expenses and other current liabilities | 236,066 | 1,463,375 | 1,132,825 | |||
Total liabilities | 236,066 | 1,463,375 | 1,132,825 | |||
Common shares | 566,820 | 3,513,718 | 3,474,894 | |||
Treasury shares | (1,322,963) | (8,201,045) | (1,029,766) | |||
Additional paid in capital | 62,510,534 | 387,502,800 | 437,964,776 | |||
Accumulated other comprehensive loss | (4,384,043) | (27,176,682) | (27,145,929) | |||
Retained earnings (accumulated deficit) | 3,497,922 | 21,683,617 | (1,372,103) | |||
Total shareholders' equity | 60,868,270 | 377,322,408 | 411,891,872 | |||
Total liabilities and shareholders' equity | $ 61,104,336 | ¥ 378,785,783 | ¥ 413,024,697 |
ATA INC (Parent Company) (Det78
ATA INC (Parent Company) (Details 2) | 12 Months Ended | |||
Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Condensed Financial Statements | ||||
Operating expenses | $ (23,864,776) | ¥ (147,937,753) | ¥ (154,809,412) | ¥ (150,830,194) |
Interest income | 667,278 | 4,136,454 | 4,770,024 | 3,122,304 |
Foreign currency exchange gains (losses), net | (172,149) | (1,067,149) | (49,200) | 77,240 |
Earnings before income taxes | 5,263,893 | 32,630,866 | 47,171,897 | 30,212,972 |
Income tax expense | 1,544,628 | 9,575,146 | 19,895,462 | 7,004,982 |
Net income | 3,719,265 | 23,055,720 | 27,276,435 | 23,207,990 |
Foreign currency translation adjustment, net of nil income taxes | (4,961) | (30,753) | (766,783) | (374,747) |
Comprehensive income | 3,714,304 | 23,024,967 | 26,509,652 | 22,833,243 |
ATA INC. | ||||
Condensed Financial Statements | ||||
Operating expenses | (744,040) | (4,612,306) | (5,415,249) | (7,567,474) |
Investment income | 4,453,817 | 27,609,211 | 32,612,787 | 30,685,632 |
Interest income | 23,370 | 144,869 | 40,889 | 112,656 |
Foreign currency exchange gains (losses), net | (13,882) | (86,054) | 38,008 | (22,824) |
Earnings before income taxes | 3,719,265 | 23,055,720 | 27,276,435 | 23,207,990 |
Net income | 3,719,265 | 23,055,720 | 27,276,435 | 23,207,990 |
Foreign currency translation adjustment, net of nil income taxes | (4,961) | (30,753) | (766,783) | (374,747) |
Comprehensive income | $ 3,714,304 | ¥ 23,024,967 | ¥ 26,509,652 | ¥ 22,833,243 |
ATA INC (Parent Company) (Det79
ATA INC (Parent Company) (Details 3) | 1 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2014USD ($) | Jul. 31, 2014CNY (¥) | Sep. 30, 2012USD ($) | Sep. 30, 2012CNY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) | Mar. 31, 2013CNY (¥) | |
Condensed Financial Statements | ||||||||
Net cash used in operating activities | $ 7,396,714 | ¥ 45,852,235 | ¥ 37,343,760 | ¥ 67,777,743 | ||||
Cash flows from investing activities : | ||||||||
Payment for XingWei acquisition | (9,826,706) | |||||||
Net cash used in investing activities | (8,510,959) | (52,759,443) | (13,959,185) | (7,966,826) | ||||
Cash flows from financing activities : | ||||||||
Cash paid for employee individual income tax of net-settlement of vested shares | (137,668) | (853,404) | (567,881) | (913,453) | ||||
Cash paid for repurchase of common shares | (1,348,949) | (8,362,136) | (132,528) | (329,357) | ||||
Proceeds from exercise of share options | 629,771 | 3,903,952 | ||||||
Special cash dividend | $ (9,500,000) | ¥ (58,349,122) | $ (4,000,000) | ¥ (25,331,341) | (9,412,667) | (58,349,122) | (25,331,341) | |
Net cash used in financing activities | (10,269,513) | (63,660,710) | (700,409) | (26,574,151) | ||||
Effect of foreign exchange rate changes on cash | (174,836) | (1,083,809) | (766,783) | (374,747) | ||||
Net decrease in cash | (11,558,594) | (71,651,727) | 21,917,383 | 32,862,019 | ||||
ATA INC. | ||||||||
Condensed Financial Statements | ||||||||
Net cash used in operating activities | (694,463) | (4,304,976) | (4,994,557) | (6,675,424) | ||||
Cash flows from investing activities : | ||||||||
Collection from (payment to) subsidiaries | 1,237,389 | 7,670,574 | (6,911,210) | 26,836,132 | ||||
Payment for XingWei acquisition | (19,612,120) | |||||||
Net cash used in investing activities | 1,237,389 | 7,670,574 | (26,523,330) | 26,836,132 | ||||
Cash flows from financing activities : | ||||||||
Cash paid for employee individual income tax of net-settlement of vested shares | (913,453) | |||||||
Cash paid for repurchase of common shares | (1,348,949) | (8,362,136) | (132,528) | (329,357) | ||||
Proceeds from exercise of share options | 629,771 | 3,903,952 | ||||||
Special cash dividend | (25,331,341) | |||||||
Net cash used in financing activities | (719,178) | (4,458,184) | (132,528) | (26,574,151) | ||||
Effect of foreign exchange rate changes on cash | (4,961) | (30,753) | (766,783) | (374,747) | ||||
Net decrease in cash | (181,213) | (1,123,339) | (32,417,198) | (6,788,190) | ||||
Cash at beginning of year | 1,504,668 | 9,327,438 | 41,744,636 | 48,532,826 | ||||
Cash at end of year | $ 1,323,455 | ¥ 8,204,099 | ¥ 9,327,438 | ¥ 41,744,636 |