Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2015shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | FY |
Trading Symbol | DL |
Entity Registrant Name | CHINA DISTANCE EDUCATION HOLDINGS LTD |
Entity Central Index Key | 1,438,644 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 142,406,933 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $ 117,899 | $ 118,075 |
Term deposits | 4,720 | 5,702 |
Restricted cash | 16,312 | 16,637 |
Accounts receivable, net of allowance for doubtful accounts of US$1,250 and US$158 as of September 30, 2014 and 2015, respectively | 2,800 | 1,637 |
Inventories | 871 | 449 |
Prepayment and other current assets | 4,853 | 3,749 |
Amount due from a related party | 103 | |
Deferred tax assets, current portion | 1,508 | 2,116 |
Deferred cost | 1,163 | 1,248 |
Total current assets | 150,229 | 149,613 |
Non-current assets | ||
Property, plant and equipment, net | 12,916 | 10,721 |
Goodwill | 7,429 | 7,689 |
Other intangible assets, net | 1,078 | 1,384 |
Deposit for purchase of non-current assets | 93 | 94 |
Other non-current assets | 2,375 | 2,128 |
Total non-current assets | 23,891 | 22,016 |
Total assets | 174,120 | 171,629 |
Current liabilities | ||
Bank borrowing | 16,467 | 16,583 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$21,275 and US$24,129 as of September 30, 2014 and 2015, respectively) | 25,993 | 22,695 |
Income tax payable (including income tax payable of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$3,504 and US$3,474 as of September 30, 2014 and 2015, respectively) | 4,453 | 4,209 |
Deferred revenue (including deferred revenue of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$23,319 and US$29,540 as of September 30, 2014 and 2015, respectively) | 29,563 | 23,423 |
Refundable fees (including refundable fees of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$5,199 and US$5,245 as of September 30, 2014 and 2015, respectively) | 5,245 | 5,199 |
Total current liabilities | 81,721 | 72,109 |
Non-current liabilities | ||
Deferred tax liabilities, non-current portion | 1,590 | 1,110 |
Total non-current liabilities | 1,590 | 1,110 |
Total liabilities | $ 83,311 | $ 73,219 |
Commitments and contingencies (Note 16) | ||
Equity | ||
Ordinary shares (par value of US$0.0001 per share at September 30, 2014 and 2015, respectively; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2014 and 2015; Issued and outstanding - 142,752,873 and 142,406,933 shares at September 30, 2014 and 2015, respectively) | $ 14 | $ 14 |
Additional paid-in capital | 55,598 | 77,270 |
Accumulated other comprehensive income | 2,735 | 6,220 |
Retained earnings | 32,462 | 14,906 |
Total equity | 90,809 | 98,410 |
Total liabilities and equity | $ 174,120 | $ 171,629 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts receivable, net of allowance for doubtful accounts | $ 158 | $ 1,250 |
Accrued expenses and other liabilities | 25,993 | 22,695 |
Income tax payable | 4,453 | 4,209 |
Deferred revenue | 29,563 | 23,423 |
Refundable fees | $ 5,245 | $ 5,199 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Issued | 142,406,933 | 142,752,873 |
Ordinary Shares, Outstanding | 142,406,933 | 142,752,873 |
Variable Interest Entity, Primary Beneficiary | ||
Accrued expenses and other liabilities | $ 24,129 | $ 21,275 |
Income tax payable | 3,474 | 3,504 |
Deferred revenue | 29,540 | 23,319 |
Refundable fees | $ 5,245 | $ 5,199 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Sales, net of business tax, value-added tax and related surcharges | |||
Online education services | $ 88,657 | $ 80,545 | $ 58,573 |
Books and reference materials | 6,873 | 6,392 | 5,129 |
Others | 12,647 | 10,259 | 7,658 |
Total net revenues | 108,177 | 97,196 | 71,360 |
Cost of sales | |||
Cost of services | (41,043) | (35,187) | (27,073) |
Cost of tangible goods sold | (3,300) | (4,616) | (2,844) |
Total cost of sales | (44,343) | (39,803) | (29,917) |
Gross profit | 63,834 | 57,393 | 41,443 |
Operating expenses | |||
Selling expenses | (24,186) | (21,445) | (15,673) |
General and administrative expenses | (13,211) | (11,645) | (9,806) |
Total operating expenses | (37,397) | (33,090) | (25,479) |
Other operating income | 224 | 253 | 59 |
Operating income (loss) | 26,661 | 24,556 | 16,023 |
Interest income | 3,513 | 2,964 | 1,415 |
Interest expense | (464) | (291) | |
Exchange gain/(loss) | 737 | 232 | (77) |
Income before income taxes | 30,447 | 27,461 | 17,361 |
Less: Income tax expense | (5,874) | (4,052) | (3,797) |
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Net income attributable to ordinary shareholders | |||
Basic | $ 0.17 | $ 0.17 | $ 0.10 |
Diluted | $ 0.17 | $ 0.17 | $ 0.10 |
Weighted average shares used in calculating net income per share | |||
Basic | 142,720,838 | 139,613,967 | 135,174,562 |
Diluted | 143,767,990 | 140,497,204 | 136,399,233 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Other comprehensive (loss)/income - change in cumulative foreign currency translation adjustments | (3,485) | (75) | 1,373 |
Comprehensive income | $ 21,088 | $ 23,334 | $ 14,937 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive income | Retained earnings/ (Cumulative deficits) |
Beginning Balance (in shares) at Sep. 30, 2012 | 134,386,849 | ||||
Beginning Balance at Sep. 30, 2012 | $ 64,617 | $ 13 | $ 61,777 | $ 4,922 | $ (2,095) |
Net income for the year | 13,564 | 13,564 | |||
Foreign currency translation adjustments | 1,373 | 1,373 | |||
Repurchase of ordinary shares (in shares) | (67,100) | ||||
Repurchase of ordinary shares | (93) | (93) | |||
Options exercised (in shares) | 987,392 | ||||
Options exercised | 603 | $ 1 | 602 | ||
Stock-based compensation expense (in shares)(Note 20) | 225,000 | ||||
Stock-based compensation expense (Note 19) | 625 | 625 | |||
Dividends (Note 20) | (16,056) | (16,056) | |||
Repayment of loan to optionees in connection with exercise of options | (113) | (113) | |||
Ending Balance (in shares) at Sep. 30, 2013 | 135,532,141 | ||||
Ending Balance at Sep. 30, 2013 | 64,520 | $ 14 | 46,742 | 6,295 | 11,469 |
Net income for the year | 23,409 | 23,409 | |||
Foreign currency translation adjustments | (75) | (75) | |||
Issuance of new ordinary shares (Note 12) (in shares) | 6,000,000 | ||||
Issuance of new ordinary shares (Note 12) | 29,088 | 29,088 | |||
Options exercised (in shares) | 1,095,732 | ||||
Options exercised | 491 | 491 | |||
Stock-based compensation expense (in shares)(Note 20) | 125,000 | ||||
Stock-based compensation expense (Note 19) | 503 | 503 | |||
Dividends (Note 20) | (20,258) | (286) | (19,972) | ||
Repayment of loan to optionees in connection with exercise of options | 732 | 732 | |||
Ending Balance (in shares) at Sep. 30, 2014 | 142,752,873 | ||||
Ending Balance at Sep. 30, 2014 | 98,410 | $ 14 | 77,270 | 6,220 | 14,906 |
Net income for the year | 24,573 | 24,573 | |||
Foreign currency translation adjustments | (3,485) | (3,485) | |||
Repurchase of ordinary shares (in shares) | (1,137,236) | ||||
Repurchase of ordinary shares | (3,333) | (3,333) | |||
Options exercised (in shares) | 123,924 | ||||
Options exercised | 18 | 18 | |||
Stock-based compensation expense (in shares)(Note 20) | 667,372 | ||||
Stock-based compensation expense (Note 19) | 1,783 | 1,783 | |||
Dividends (Note 20) | (28,199) | (21,182) | (7,017) | ||
Repayment of loan to optionees in connection with exercise of options | 1,042 | 1,042 | |||
Ending Balance (in shares) at Sep. 30, 2015 | 142,406,933 | ||||
Ending Balance at Sep. 30, 2015 | $ 90,809 | $ 14 | $ 55,598 | $ 2,735 | $ 32,462 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands, ¥ in Millions | 12 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Stock-based compensation | 1,783 | 503 | 625 |
Depreciation of property, plant and equipment | 2,034 | 1,808 | 1,848 |
Amortization of other intangible assets | 437 | 592 | 771 |
Provision of inventories | 58 | 527 | 67 |
Change in allowance for doubtful accounts | (1,008) | (517) | (371) |
Losses on disposition of property, plant and equipment | 38 | 112 | 151 |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (170) | 2,385 | 1,036 |
(Increase) in inventories | (505) | (281) | (89) |
(Increase) decrease in prepayments and other assets | (1,315) | 327 | (420) |
Decrease (increase) in deferred tax assets | 547 | (370) | 154 |
Decrease (increase) in deferred cost | 43 | 635 | (45) |
(Increase) in other non-current assets | (327) | (586) | (422) |
Increase in accrued expenses and other liabilities | 3,450 | 7,944 | 5,132 |
Increase (decrease) in income tax payable | 397 | (60) | 1,567 |
Increase in deferred revenue | 7,091 | 6,321 | 7,360 |
Increase in refundable fees | 229 | 910 | 674 |
Increase in deferred tax liabilities | 529 | 434 | 536 |
(Increase) in amount due from a related party | (105) | ||
Net cash generated from operating activities | 37,779 | 44,093 | 32,138 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Maturity (purchase) of term deposits | 804 | (4,880) | 7,275 |
(Placement) of restricted cash | (16,656) | (16,607) | |
Release of restricted cash | 16,405 | ||
Acquisition of property, plant and equipment | (4,648) | (2,241) | (2,128) |
Acquisition of other intangible assets | (154) | (452) | (271) |
Payment of deposit for the acquisition of non-current assets | (62) | (370) | |
Net cash (used in) generated from investing activities | (4,311) | (24,180) | 4,506 |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Loan repayment | (16,071) | ||
Bank borrowing | 16,656 | 16,062 | |
Issuance of new ordinary shares | 29,088 | ||
Repurchase of ordinary shares | (3,333) | (93) | |
Proceeds from share options exercised by employees | 18 | 491 | 603 |
Loan to optionees in connection with exercise of options | (510) | (408) | |
Repayment of loan to optionees in connection with exercise of options | 1,042 | 1,242 | 295 |
Dividends paid to shareholders | (28,199) | (20,258) | (16,056) |
Net cash (used in) generated from financing activities | (29,887) | 26,115 | (15,659) |
Exchange rate effect on cash and cash equivalents | (3,757) | 128 | 1,211 |
Net (decrease) increase in cash and cash equivalents | (176) | 46,156 | 22,196 |
Cash and cash equivalents at beginning of the year | 118,075 | 71,919 | 49,723 |
Cash and cash equivalents at end of the year | 117,899 | 118,075 | 71,919 |
Supplemental schedule of cash flow information | |||
Income tax paid | (4,418) | (4,049) | (1,539) |
Supplemental schedule of non-cash activities | |||
Acquisition of property, plant and equipment and other intangible assets through utilization of deposits | 60 | 280 | $ 133 |
Income tax reversal | $ 37 | $ 782 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2015 | |
ORGANIZATION AND BASIS OF PRESENTATION | 1. ORGANIZATION AND BASIS OF PRESENTATION China Distance Education Holdings Limited (the “Company”) was incorporated under the law of the Cayman Islands on January 11, 2008. The Company, its subsidiaries, its consolidated variable interest entity (“VIE”) and VIE’s subsidiaries (collectively the “Group”) are primarily engaged in providing online and offline education services, and selling related products in the People’s Republic of China (“PRC”). As of September 30, 2015, details of the Company’s subsidiaries, its VIE and VIE’s subsidiaries were as follows: Company Date of Place of Percentage of Principal activities Subsidiaries: China Distance Education Limited (“CDEL Hong Kong”) March 13, 2003 Hong Kong 100% Investment holding and provision of education services Practice Enterprises Network China International Links Limited (“Pencil”) February 23, 2010 Hong Kong 100% Inactive DL Education Service, LLC (“DL Education”) September 27,2012 US 100% Inactive Beijing Champion Distance Education Technology Co., Ltd. (“Champion Technology”) January 5, 2004 PRC 100% Provision of technical support and consultancy services and course production Beijing Champion Education Technology Co., Ltd. (“Champion Education Technology”) April 23, 2007 PRC 100% Software licensing and course production China Healthcare Investment Limited (“China Healthcare Investment”) May 20, 2015 BVI 100% Inactive China Healthcare Education Limited (“China Healthcare Education”) July 24, 2015 Hong Kong 100% Inactive Beijing Champion Accounting Education Technology Co., Ltd. (“Champion Accounting”) July 28, 2015 PRC 100% Inactive Variable interest entity: Beijing Champion Hi-Tech Co., Ltd. (“Beijing Champion”) July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Subsidiaries of variable interest entity: Beijing Caikaowang Company Ltd. (“Caikaowang”) November 28, PRC Nil Provision of online education services Beijing Champion Wangge Education Technology Co., Ltd. (“Champion Wangge”) June 24, 2008 PRC Nil Provision of online education services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC Nil Provision of start-up training services Beijing Haidian District Champion Training School (“Beijing Training School”) February 19, 2009 PRC Nil Provision of online and offline education services Beijing Champion Culture Development Co., Ltd. (“Champion Culture”) June 03, 2015 PRC Nil Inactive Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC Nil Inactive The VIE arrangements There are some uncertainties as to whether applicable PRC laws and regulations prohibit foreign investors from providing telecommunications value-added services in the PRC. As a Cayman Islands corporation, the Company is deemed a foreign legal person under PRC laws. Accordingly, Champion Technology, the Company’s wholly owned subsidiary in the PRC, as a foreign invested company, may be deemed to be ineligible to engage in education business in the PRC. To comply with these foreign ownership restrictions, the Company operates substantially all of its online education services through its VIE, Beijing Champion, and the VIE’s subsidiaries in the PRC. The VIE and its subsidiaries hold leases and other assets necessary to provide online education services and generate all of the Company’s revenues. To provide the Company effective control over the VIE and the ability to receive substantially all of the economic benefits of the VIE and its subsidiaries, a series of contractual arrangements were entered into amongst CDEL Hong Kong, Champion Technology, Beijing Champion and Beijing Champion’s direct equity holders. • Agreements that transfer economic benefits to Champion Technology Exclusive technical support and consultancy services agreement Pursuant to the exclusive technical support and consultancy services agreement between Beijing Champion and Champion Technology, Champion Technology has the exclusive right to provide to Beijing Champion technical and consulting services. Champion Technology is entitled to charge Beijing Champion a service fee equal to its profit before such service fee and tax. This agreement will remain effective until Beijing Champion ceases its operations. Equity pledge agreement Pursuant to the equity pledge agreement between Beijing Champion and Champion Technology, the nominee shareholders of Beijing Champion have pledged their equity interest in Beijing Champion to Champion Technology to secure the payment obligations of Beijing Champion under the technical support and consultancy services agreement between Beijing Champion and Champion Technology. If Beijing Champion breaches its contractual obligations under that agreement, Champion Technology, as the pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The nominee shareholders of Beijing Champion agree that, without prior written consent of Champion Technology, they will not dispose of the pledged equity interests or create or allow any encumbrance on the pledged equity interests that would prejudice Champion Technology’s interest. This agreement will remain effective until the discharge of Beijing Champion’s contractual obligations under the exclusive technical support and consultancy services agreement as described above. Letter of undertaking from Beijing Champion’s shareholders to Champion Technology Pursuant to this letter addressed to Champion Technology, the shareholders of Beijing Champion undertook to, unless restricted by laws, regulations or legal procedures, (i) remit all dividends, interests, other distributions or remnant assets after liquidation, if any, they receive from Beijing Champion to Champion Technology without compensation, after paying the corresponding tax and any other required expenses, (ii) transfer all or part of their equity interests to CDEL Hong Kong at a nominal or minimal purchase price, in the event CDEL Hong Kong exercises its exclusive purchase right to acquire any or all of the equity interests in Beijing Champion, (iii) remit to Champion Technology all considerations they may receive from CDEL Hong Kong’s acquisition of any equity interests in Beijing Champion, without compensation, after paying the corresponding tax and any other required expenses and (iv) act in the best interest of Champion Technology. • Agreements that provide the Company effective control over Beijing Champion Exclusive purchase right contract Pursuant to the exclusive purchase right agreement, CDEL Hong Kong has the unconditional right to purchase the entire equity interest in, or all the assets of Beijing Champion, for a purchase price equal to the net assets of Beijing Champion or the minimum price permitted by PRC laws, if and when PRC laws are amended to permit such a transaction. The term of this agreement is ten years from the date thereof and can be extended for another ten years, at the discretion of CDEL Hong Kong. On December 19, 2014, CDEL Hong Kong decided to extend the term of this agreement for another ten years and retroactively acknowledged the validity of this agreement for the period from May 9, 2014 to December 19, 2014. Through the exclusive purchase right contract, each of Beijing Champion’s shareholders irrevocably granted CDEL Hong Kong an exclusive right to acquire, at any time, for its own account or through one or more PRC individuals or entities as nominee shareholders of its choice to replace the existing shareholders of Beijing Champion. This kick-out right reinforces CDEL Hong Kong’s ability to direct the activities that most significantly impact Beijing Champion’s economic performance. Power of attorney Pursuant to the power of attorney, the nominee shareholders of Beijing Champion each executed an irrevocable power of attorney assigning Champion Technology or any person designated by Champion Technology as their attorney-in-fact to vote on their behalf on all matters of Beijing Champion requiring shareholder approval under PRC laws and regulations and the articles of association of Beijing Champion. The Articles of Incorporation of Beijing Champion states that the major rights of the shareholders include the power to review and approve annual budget, operating strategy and investment plan, elect the members of board of directors and approve their compensation plan. Therefore, through the irrevocable power of attorney arrangement, Champion Technology has the ability to exercise effective control over Beijing Champion through equity holder votes and, through such votes, to also control the composition of the board of directors. Deed of undertaking: The Company, Mr. Zhengdong Zhu and his wife, Ms. Baohong Yin executed a deed of undertaking (“Deed”) on September 26, 2013. Pursuant to this deed, Mr. Zhengdong Zhu and Ms. Baohong irrevocably covenanted an undertaking to the Company to abstain from (1) utilizing their status as majority shareholders of the Company to vote for the appointment or removal of a director of the Company and (2) any matters related to the Deed. This deed was terminated automatically upon the completion of the follow-on public offering on March 11, 2014 as Mr. Zhengdong Zhu and Ms. Baohong Yin no longer owned a majority of outstanding ordinary shares after the follow-on public offering. These contractual arrangements allow the Group to effectively control Beijing Champion and its subsidiaries and to derive substantially all of the economic benefits from them. Accordingly, the Group treats Beijing Champion as a VIE and because the Group is the primary beneficiary of Beijing Champion, the Group has consolidated the financial results of Beijing Champion and its subsidiaries. • Risks in relation to VIE structure The Company believes that the contractual arrangements with Beijing Champion and its shareholders are in compliance with existing PRC laws and regulations and are valid, binding and enforceable and will not result in any violation of PRC laws or regulations and the PRC regulatory authorities may take a contrary view. If the legal structure and contractual arrangements were found to be in violation of any existing PRC laws and regulations, the regulatory authorities may exercise their discretion and: • revoke the business and operating licenses of the Company’s PRC subsidiaries or consolidated affiliated entities; • restrict the rights to collect revenues from any of the Company’s PRC subsidiaries; • discontinue or restrict the operations of any related-party transactions among the Company’s PRC subsidiaries or consolidated affiliated entities; • require the Company’s PRC subsidiaries or consolidated affiliated entities to restructure the relevant ownership structure or operations; • take other regulatory or enforcement action is, including levying fines that could be harmful to the Company’s business; or • impose additional conditions or requirements with which the Company may not be able to comply. The imposition of any of these penalties may result in a material adverse effect on the Company’s ability to conduct its business. In addition, if the imposition of any of these penalties causes the Company to lose the rights to direct the activities of the VIE and their subsidiaries or the right to receive their economic benefits, the Company would no longer be able to consolidate the financial results of the VIE and its subsidiaries. The Company’s ability to control Beijing Champion also depends on the powers of attorney that enable Champion Technology to vote on all matters requiring shareholder approval for Beijing Champion. As noted above, the Company believes these powers of attorney are valid, binding and enforceable under existing PRC laws and regulations but may not be as effective as direct equity ownership. Certain shareholders of Beijing Champion are also beneficial owners or directors of the Company. In addition, certain beneficial owners and directors of the Company are also directors or officers of Beijing Champion. Their interests as beneficial owners of Beijing Champion may differ from the interests of the Company as a whole. The Company cannot be certain that if conflicts of interest arise, these parties will act in the best interests of the Company or that conflicts of interests will resolve in the Company’s favor. Currently, the Company does not have existing arrangements to address potential conflicts of interest these parties may encounter in their capacity as beneficial owners of Beijing Champion, on one hand, and as beneficial owners of the Company, on the other hand. The Company believes the shareholders of Beijing Champion will not act contrary to any of the contractual arrangements and the exclusive purchase right contract provides the Company with a mechanism to remove them as shareholders of Beijing Champion should they act to the detriment of the Company. If any conflict of interest or dispute between the Company and the shareholders of Beijing Champion arises and the Company is unable to resolve it, the Company would have to rely on legal proceedings in the PRC. Such legal proceedings could result in disruption of its business; moreover, there is substantial uncertainty as to the ultimate outcome of any such legal proceedings. The Group’s online education business has been directly operated by (and as a result all of the Group’s revenues have been generated from) the VIE and its subsidiaries. For the years ended September 30, 2014 and 2015, Beijing Champion and its subsidiaries accounted for an aggregate of 61% and 74%, respectively, of the Group’s consolidated total assets, and 73% and 75%, respectively of the Group’s consolidated total liabilities. The assets not associated with Beijing Champion and its subsidiaries in these years primarily consisted of cash held by China Distance Education Holdings Limited. The following financial information of the Company’s VIE and VIE’s subsidiaries as of September 30, 2014 and 2015 and for each of the three years in the period ended September 30, 2015 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIE and VIE’s subsidiaries: As of September 30, 2014 2015 US$ US$ Cash and cash equivalents 75,117 83,069 Prepayment and other current assets 3,100 4,387 Total current assets 87,205 110,268 Total assets 104,569 128,067 Deferred revenue 23,319 29,540 Total current liabilities 53,297 62,388 Total liabilities 53,297 62,388 Total equity 51,272 65,679 For the years ended September 30, 2013 2014 2015 US$ US$ US$ Revenues 70,942 96,990 108,111 Net income 21,062 31,986 36,760 Net cash provided by operating activities 25,755 36,326 26,988 Net cash used in investing activities (2,521 ) (850 ) (2,140 ) Effects of exchange rate changes 674 (65 ) (2,797 ) There are no consolidated VIE’s assets that are collateral for the VIE’s obligations and which can only be used to settle the VIE’s obligations. No creditor (or beneficial interest holders) of the VIE have recourse to the general credit of the Company or any of its consolidated subsidiaries. No terms in any arrangements, considering both explicit arrangements and implicit variable interests, require the Company or its subsidiaries to provide financial support to the VIE. However, if the VIE ever needs financial support, the Company or its subsidiaries may, at its option and subject to statutory limits and restrictions, provide financial support to the VIE through loans to the shareholders of the VIE or entrustment loans to the VIE. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
SIGNIFICANT ACCOUNTING POLICIES | 2. SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, revenue recognition, consolidation of VIE, income tax, allowance for doubtful accounts, impairment of goodwill and long-term assets and share-based compensation expenses. Actual results could materially differ from those estimates. Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and VIE’s subsidiaries. All transactions and balances among the Company, its subsidiaries, its VIE and VIE’s subsidiaries have been eliminated upon consolidation. Foreign currency translation and transactions The Company, DL Education, CDEL Hong Kong, Pencil, China Healthcare Investment and China Healthcare Education’s functional currencies are United States dollars (“US$”). The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”). The Company uses the US$ as its reporting currency and uses the monthly average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position of its PRC subsidiaries and its variable interest entities, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of consolidated statements of changes in equity. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the balance sheet date exchange rate. Exchange gains and losses are included in the consolidated statements of comprehensive income. Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have an original maturity of three months or less when purchased. Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. Restricted cash Restricted cash represents deposits not readily available to the Company. Restricted cash as of September 30, 2015 mainly represented cash pledged as security of bank borrowing. Inventories Inventories, consisting of paper and professional examination reference books, are stated at the lower of cost or market value. Cost is determined using the first in, first out method. Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments consist of cash equivalents, term deposits, restricted cash, accounts receivable, other current assets, and other current liabilities. The carrying amounts of these instruments approximate their fair values due to their short-term maturity. The Group reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. Other intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Allowance is reversed when the underlying balance of doubtful accounts are subsequently collected. Accounts receivable balances are written off after all collection efforts have been exhausted. Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Estimated residual value Buildings 35 years 5-10 % Electronic and office equipment 5 years 5-10 % Motor vehicles 5 years 5-10 % Leasehold improvement and building improvement Shorter of lease term or 5 years — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations. Goodwill Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. The guidance permits the Company to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. For the years ended September 30, 2014 and 2015, the Group performed its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. Other intangible assets, net Other intangible assets are amortized using the straight-line basis over the estimated useful lives as follows: Category Estimated useful life Computer software 3~5 years Trademarks and domain names 10~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5 years Platform 3.5 years Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. If the intent is to hold the asset for sale and certain other criteria are met (i.e., the asset can be disposed of currently, appropriate levels of authority have approved sale, and there is an actively pursuing buyer), the impairment test is a comparison of the asset’s carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. Assets held for sale are separately presented on the balance sheet and are no longer depreciated. Revenue recognition Revenues are recognized when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. Online education services The online education service provided by the Group to its customers is an integrated service, including audio-video course content, mock examinations and online chat rooms during the subscription period. Audio-video course content, mock examinations and online chat rooms are not practical to be sold on standalone basis and have never been sold separately. The Group earns revenues by providing online education services to customers pursuant to two types of revenue models - non-refundable course model and refundable course model. The on-line courses using the non-refundable course model are mainly comprised of regular classes and premium classes. The revenues for the regular classes are recognized on a straight line basis over the subscription period from the month in which the customers enroll in the courses to the month in which subscribed courses terminate. For premium classes, if participants fail to pass the course examination and certain pre-agreed conditions are met, the participants can be offered by certain course fee discount to retake the same premium course. As such, the discount is proportionately applied as a deduction to revenue recognized for each of the premium classes that participants take. For on-line courses using the refundable course model (i.e. elite classes), if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement, they are entitled to either a full refund or the right to retake the course. The participants must notify the Group within a pre-agreed period after the professional examinations scores are released in order to be eligible for the refund or the right to retake the course. The proceeds from the refundable course model are initially recorded as “refundable fees”. Revenues are recognized upon the expiration of the participants’ right to receive a refund or ratably over the retake course period when the participants decide to retake the course before the expiration of such right. Most of the course participants pay course fees via online payment systems provided by third parties including internet debit or credit card payment systems and other third-party payment systems. Some participants may choose to enroll for on-line courses through the use of prepaid study cards which are purchased from distributors. The Group sells to its regional distributors prepaid study cards at a discount to the face value of the cards. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the on-line course is available to the customers, which generally is from the enrollment date to the completion of the relevant professional examination date. Sales of prepaid study cards that are not activated for course enrollment are recognized as revenues upon expiration of the cards. Prepaid study cards that have been activated but have not been used to enroll on-line courses do not have an expiry date and will be deferred until they are used to enroll in on-line courses. Participants who enroll with the Company directly are eligible to a refund within a 7-day trial period. Revenues from direct enrollment with the Company are recognized over the period from the lapse of the 7-day trial period to the completion of the relevant professional examination date. The Group may, at times, offer volume discounts to its regional distributors for purchases over a specified amount of prepaid cards during a specified period of time, generally, one year. The amount of future rebates relating to these volume discounts cannot be reasonably estimated and accordingly a deferred revenue balance is recognized for the maximum potential amount of volume discount. If the number of purchases specified in the volume discount provisions is not reached upon the expiry of the volume discount period, the deferred revenue relating to such volume discount for each study card is recognized as revenue over the remaining period the on-line course is available to the user who enrolls using the study card or recognized as revenue immediately if the related on-line course has been completed or the study card has expired. The Group provides student enrollment services and online platform to government agencies which use the Group’s online platform to conduct continuing education services. The Group earns service fees as a percentage of total tuition fees based on the agreements entered into with the government agencies. Service fees are initially recorded as deferred revenue and are recognized as revenue when course participants complete the stipulated study hours and take the examinations, or on a straight line basis over the subscription period based on the terms of the agreements. The Group also operates an Online Open Learning Platform, a proprietary education platform that allows other parties to share their educational content or deliver live courses online. After passing the Group’s quality control reviews, experts and scholars of various fields can either record their own lectures and post them on the Open Learning Platform website, or deliver real-time audio-video courses. The group offers coaching services to these lecturers and deploys a user evaluation system to ensure that these courses meet its quality and effectiveness standards. The Group pays the experts and scholars certain percentage of the service fee they received from the end users. Revenues from Open Learning Platform are recognized on gross basis, as the Group is the primary obligor in the arrangement and bears the risks and rewards, including the quality control and the services delivered. For the years ended September 30, 2013, 2014 and 2015, the Group recognized revenues before business tax and related surcharges in connection with expired study cards amounting to US$164, US$114, and US$101, respectively. The on-line courses service is provided by Beijing Champion and its subsidiaries which are subject to approximately 3% business tax and related surcharges. The Group records revenues net of these taxes in the consolidated statements of operations. Such business tax and related surcharges for the years ended September 30, 2013, 2014 and 2015 were US$1,986, US$2,699 and US$2,996 respectively. Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are deferred until cash is collected. Inventory costs of products delivered to distributors for which revenues have been deferred are presented as “deferred costs” on the consolidated balance sheets. The Group also sells books and reference materials together with study cards which allow the customers to take a certain number of on-line courses for no additional charge. These sales are considered arrangements with two deliverables, consisting of the delivery of books and reference material and the on-line courses service. Because neither vendor-specific objective evidence nor third-party evidence of fair value of the deliverables exist, the Group allocates revenue to each deliverables based on their relative selling price. Other revenues Other revenues include sales of offline professional training, courseware production services, platform production services, and others. Revenues from offline professional training are recognized when the training courses are provided. For offline training sponsored by government authorities, the tuition fees of the training participants are subsidized by the government. Qualified enrollments and the fees to be earned cannot be determined until the confirmation from government authorities regarding the number of students and fees is received by the Company, which is after the completion of services. Therefore, revenues from such services are recognized upon cash receipt or the receipt of confirmations from government authorities, whichever is earlier, when all the other revenue recognition criteria have been met. Revenues from sales of courseware, which are designed and developed pursuant to the requests from customers, are recognized when the courseware or platforms are accepted by the customers. The Company has no significant remaining obligation with respect to the courseware or platforms upon the acceptance of the customers. From time to time, the Group enters into arrangement to provide the development and maintenance of online platforms to its customers. After the development of online platforms, the Group provides support and maintenance services. The development of online platform and the support and maintenance services have never been sold separately and they do not have standalone value to the customers. Accordingly, revenues from such arrangement is accounted as a single unit of accounting and recognized ratably over the support and maintenance services period. Revenues from other services, including magazine content production, advertising and consulting services, are recognized over the period when such services are provided. Value added taxes On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot value-added tax (“VAT”) reform program (“Pilot Program”), applicable to businesses in selected industries. Businesses in the Pilot Program would pay VAT instead of business tax. The Pilot Program initially applied only to transportation industry and “modern service industries” (“Pilot Industries”) in Shanghai and subsequently was expanded to ten other provinces and municipalities between August and December 2012. As a result, since September 1, 2012, technical and consulting service, software licensing and course production services provided by Champion Technology and Champion Education Technology; and since July 1, 2014, course production services provided by Champion Wangge were no longer subject to business tax but VAT instead. Champion Technology is a VAT general taxpayer. Champion Education Technology was a VAT small-scale taxpayer but was treated as a general taxpayer since February 1, 2014. Champion Wangge was a VAT small-scale taxpayer but was treated as a general taxpayer since January 1, 2015. The applicable VAT rates are 6% and 3% for the entities that are general taxpayer and small-scale taxpayer, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other current liabilities on the consolidated balance sheets. Pursuant to a circular jointly released by Ministry of Finance and State Administration of Taxation on December 25, 2013, the Group is subject to a VAT exemption for the proceeds received from customers for sales related to books and reference materials till December 31, 2017. As a result, the Group registered a tax exemption application at state tax bureau in February 2014 and started to enjoy such tax exemption for the relevant sales since March 2014. Prior to the filling of tax exemption application in February 2014, the Group was subject to VAT generally at a rate of 13% on the proceeds received for the sales of books and reference materials. Cost of sales Cost of online education services primarily includes the production costs of study cards, server and bandwidth leasing fees, lecturer fees, staff costs involved in the operation of online education services including network operation and maintenance, course production and tutor services and other direct costs of providing these services. These costs are expensed when incurred. The cost of books and reference materials, including direct materials used for production of books, authorship fee and printing cost, are initially deferred and recorded as “deferred cost”. The deferred costs are recognized as cost of sales when the related revenue is recognized upon cash receipt. Advertising expenditure Advertising expenditure is expensed when incurred and are included in “selling expenses” in the consolidated statements of operations. Advertising expenses were US$3,167, US$6,464 and US$10,377, for the years ended September 30, 2013, 2014 and 2015, respectively. Shipping and handling costs Shipping and handling costs of books and reference materials are classified as a component of “selling expenses” in the consolidated statements of operations. Shipping and handling costs classified as selling expenses were US$489, US$703 and US$718, for the years ended September 30, 2013, 2014 and 2015, respectively. Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. Share-based compensation Share-based compensation with employees is measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to paid-in capital. The Group recognizes compensation expense over the vesting term on a straight-line basis with the amount of compensation expense recognized at any date not less than the portion of the grant-date value of the option vested at that date. Share-based compensation with non-employee is measured based on the fair value of options at the earlier of the performance commitment date or the date at which the non-employee’s performance is complete (hereafter referred to as the measurement date). The Group recognizes compensation expense using the graded vesting attribution method. Share-based compensation awards which require the issuance of a variable number of shares to settle a fixed monetary amount are accounted for as liabilities. Net income per share Basic net income per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Nonvested restricted shares are also participating securities as they enjoy identical dividend rights as ordinary shares. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to each participating share to the extent that each class may share in income for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of outstanding share-based awards is reflected in the diluted net income per share by application of the treasury stock method. Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of comprehensive income. Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of US$110,342 and US$105,865, which were denominated in RMB, at September 30, 2014 and 2015, respectively, representing 93.5% and 89.8% of the cash and cash equivalents at September 30, 2014 and 2015, respectively. Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, term deposits, restricted cash, accounts receivable and prepayment and other current assets. As of September 30, 2015, substantially all of the Group’s cash and cash equivalents, term deposits and restricted cash were deposited in financial institutions located in the PRC and Hong Kong. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended September 30, 2015. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 21.7% and 13.1% of the Group’s carrying amount of accounts receivable as of September 30, 2014 and September 30, 2015 respectively. Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The guidance substantially converges final standards on revenue recognition between the FASB and the International Accounting Standards Board providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all exiting revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should 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. To achieve that core principle, an entity should apply the following steps: • Step 1: Identify the contract(s) with a customer. • Step 2: Identify the performance obligations in the contract. • Step 3: Determine the transaction price. • Step 4: Allocate the transaction price to the performance obligations in the contract. • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) — Amendments to the Consolidation Analysis”. The amendments in Topic 810 respond to stakeholders’ concerns about the current accounting for consolidation of variable interest entities, by changing aspects of the analysis that a reporting entity must perform to determine whether it should consolidate such entities. Under the amendments, all reporting entities are within the scope of Subtopic 810-10, Consolidation – Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The amendments are intended to be an improvement to current U.S. GAAP, as they simplify the codification of FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R), with changes including reducing the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and placing more emphasis on risk of loss when determining a controlling financial interest. The amendments are effective for publicly-traded companies for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Earlier adoption is permitted. The implementation of this update is not expected to have any material impact on the Group’s consolidated financial statements. |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2015 | |
ACCOUNTS RECEIVABLE, NET | 3. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of September 30, 2014 2015 US$ US$ Accounts receivable 2,887 2,958 Less: allowance for doubtful accounts (1,250 ) (158 ) Accounts receivable, net 1,637 2,800 Movement of allowance for doubtful accounts was as follows: As of September 30, 2014 2015 US$ US$ Balance at beginning of the year 1,773 1,250 Reversal of the allowance for doubtful accounts (517 ) (1,078 ) Foreign currency adjustment (6 ) (14 ) Balance at end of the year 1,250 158 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2015 | |
INVENTORIES | 4. INVENTORIES Inventories consisted of the following: As of September 30, 2014 2015 US$ US$ Books and other goods 968 1,373 Paper and other raw materials 121 173 Less: inventory provisions for slow-moving and obsolescence (640 ) (675 ) 449 871 Inventories provision provided in the years ended September 30, 2013, 2014 and 2015 were US$67, US$527 and US$58, respectively. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2015 | |
PREPAYMENT AND OTHER CURRENT ASSETS | 5. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets consisted of the following: As of September 30, Notes 2014 2015 US$ US$ Prepaid expenses 1,669 2,929 Advance to the suppliers (1 ) 766 1,111 Interest receivable 369 163 Funds receivable (2 ) 306 244 Deposits 23 10 Others 616 396 Prepayment and other current assets, net 3,749 4,853 (1) Advance to the suppliers represents interest-free cash deposits paid to suppliers for future purchase of raw materials and finished goods. The risk of loss arising from non-performance by or bankruptcy of the suppliers is assessed prior to making the deposits and is monitored on a regular basis by management. A charge to cost of sales will be recorded in the period in which a loss becomes probable. To date, the Group has not experienced any loss of advances to suppliers. (2) Funds receivable arise due to the time taken to clear customers’ payment transactions through external payment networks. When customers remit fees to the Group via external payment networks using their bank account or credit card, there is a clearing period before the cash is received by the Group which usually takes one to three business days. These fees are treated as a receivable until the cash is received. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of September 30, 2014 2015 US$ US$ Buildings 6,033 5,826 Electronic and office equipment 9,896 12,207 Leasehold improvement and building improvement 511 1,872 Motor vehicles 1,563 1,616 Total 18,003 21,521 Less: Accumulated depreciation (7,282 ) (8,605 ) 10,721 12,916 Depreciation expenses were US$1,848, US$1,808 and US$2,034, for the years ended September 30, 2013, 2014 and 2015, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Sep. 30, 2015 | |
GOODWILL | 7. GOODWILL Goodwill is comprised of the following: Years ended September 30 2014 2015 Online Start-up Total Online Start-up Total US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,880 1,831 7,711 5,863 1,826 7,689 Exchange difference (17 ) (5 ) (22 ) (201 ) (59 ) (260 ) Ending balance 5,863 1,826 7,689 5,662 1,767 7,429 Accumulated impairment loss — — — — — — Goodwill, net 5,863 1,826 7,689 5,662 1,767 7,429 The Group tested its goodwill for impairment at the following reporting units level. Online education service - This reporting unit provides online education services to its customers located in the PRC. It includes all the subsidiaries, the VIE and VIE’s subsidiaries of the Group except for Zhengbao Yucai. The goodwill arising from the acquisitions of the entities under this reporting unit is fully allocated to this reporting unit. Start-up training service - This reporting unit provides start-up training services to the Group’s customers located in the PRC. It includes Zhengbao Yucai. The goodwill arising from the acquisition of Zhengbao Yucai is fully allocated to this reporting unit. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. The Group did not record any impairment of goodwill on online education service and start-up training service for the years ended September 30, 2013, 2014 and 2015. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2015 | |
OTHER INTANGIBLE ASSETS, NET | 8. OTHER INTANGIBLE ASSETS, NET The balance of other intangible assets consisted of the following: As of September 30, 2014 2015 US$ US$ Computer software 3,428 3,480 Trademarks and domain names 1,499 1,449 Courseware 486 470 Business contracts 530 511 Copyrights 662 639 Platform 217 209 Total intangible assets 6,822 6,758 Less: Accumulated amortization Computer software (2,595 ) (2,807 ) Trademarks and domain names (952 ) (1,045 ) Courseware (486 ) (470 ) Business contracts (530 ) (511 ) Copyrights (658 ) (638 ) Platform (217 ) (209 ) Accumulated amortization (5,438 ) (5,680 ) Intangible assets, net 1,384 1,078 Amortization expenses were US$771, US$592 and US$437, for the years ended September 30, 2013, 2014 and 2015, respectively. The estimated amortization expenses for the above other intangible assets for each of the following fiscal years are as follows: Amortization US$ 2016 345 2017 317 2018 193 2019 122 2020 55 2021 and thereafter 46 1,078 |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2015 | |
OTHER NON-CURRENT ASSETS | 9. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: As of September 30, 2014 2015 US$ US$ Long-term prepaid expenses (1 ) 1,903 2,135 Rental deposits (2 ) 225 240 2,128 2,375 (1) Long-term prepaid expenses represent golf club membership fees. The amortization of the long term prepaid expenses was made within a ten-year amortizing period and was recorded as “general and administrative expenses” on the consolidated statements of operations. (2) Rental deposits represent office rental deposits for the Group’s daily operations. These deposits are classified as non-current deposits since they will not be refunded within one year. |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Sep. 30, 2015 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 10. ACCRUED EXPENSES AND OTHER LIABILITIES The components of accrued expenses and other liabilities are as follows: As of September 30, 2014 2015 US$ US$ Tuition fee payables to government agencies 10,096 13,084 Salary and welfare payable 5,222 4,555 Accrued expenses 3,726 3,349 Remuneration payable to lecturers 1,802 2,380 Uncertain income tax liabilities (Note 14) 177 171 Payables to employees in connection with options exercise 94 7 Other payable 1,578 2,447 22,695 25,993 Tuition fee payable to government agencies mainly represents the portion of tuition fee collected by the Group on behalf of the government agencies which provide certain continuing education courses and the Group is only responsible for the student enrollment and provision of online platform and shares certain percentage of tuition fee as service fees. |
BANK BORROWING
BANK BORROWING | 12 Months Ended |
Sep. 30, 2015 | |
BANK BORROWING | 11. BANK BORROWING On December 6, 2013, CDEL Hong Kong entered into a loan agreement with Deutsche Bank, AG, Singapore Branch, for a RMB100 million, approximately US$16,000, term loan facility with an 2.40% annual interest rate for a term of 18 months. The facility was secured by a term deposit of RMB100 million provided by Champion Technology, which was recorded as “restricted cash” on balance sheet as of September 30, 2014. On June 22, 2015, CDEL Cayman entered into a 3-year USD/RMB Revolving Term Loan Facility with a maximum of RMB300 million facility limit with The Bank of East Asia, Limited (“BEA”) which will remain effective for three years. In order to repay the term loan from Deutsche Bank, AG, Singapore Branch borrowed by CDEL Hong Kong, CDEL Cayman drew down a loan of RMB103.6 million from BEA on June 24, 2015 under the USD/RMB Revolving Term Loan Facility. The loan between CDEL Cayman and BEA is effective from June 24, 2015 to June 24, 2016 for a period of 12 months, with an interest rate of 3.625% per annum. The term loan from Deutsche Bank, AG, Singapore Branch was repaid in full on June 24, 2015, and such bank borrowing was no longer recorded on balance sheet as of September 30, 2015. The bank borrowing from BEA was recorded as short-term liability as of September 30, 2015, as it matures within 12 months. The new facility was secured by a term deposit of RMB103.6 million provided by Champion Technology, which was recorded as “restricted cash” on balance sheet as of September 30, 2015. The previously recorded “restricted cash” of RMB100 million had been released. The fair value of the bank borrowing was $16,362 and $16,389 as of September 30, 2014 and 2015. The recorded value of the bank borrowing approximates its fair value, as interest rates approximates market rates. The fair value of bank borrowing is determined as present value of the debt using market interest rates. The borrowings are categorized in Level 2 of the fair value hierarchy. |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Sep. 30, 2015 | |
ORDINARY SHARES | 12. ORDINARY SHARES Under the share repurchase programs approved by the Company’s board of directors on November 20, 2008 and April 29, 2011, the Company is authorized to repurchase up to US$20,000 worth of its issued and outstanding American Depositary Shares (“ADSs”) from time to time in open-market transactions on NYSE. On August 18, 2015, the Board of Directors approved a share repurchase program which authorized the Company to repurchase up to US$10,000 of its issued and outstanding ADSs during a one-year period from August 18, 2015 to August 17, 2016. During the years ended September 30, 2013, 2014 and 2015, the Company repurchased 67,100, nil and 1,137,236 ordinary shares at total considerations of US$93, US$ nil and US$3,333 respectively. Such shares were immediately canceled after the repurchase. On March 11, 2014, the Company completed a follow-on public offering of ADSs by the Company and certain selling shareholders. Through the follow-on public offering, the Company issued and sold 6,000,000 ordinary shares, representing 1,500,000 ADSs at the price of US$21.00 per ADS. The net proceeds received by the Company, after deducting underwriting commissions and other professional service fees, amounted to US$29,088. |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Sep. 30, 2015 | |
RESTRICTED NET ASSETS | 13. RESTRICTED NET ASSETS Relevant PRC statutory laws and regulations permit payments of dividends by the Group’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts, which is included in retained earnings accounts in equity section of the consolidated balance sheets. A wholly-owned foreign invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Champion Technology and Champion Education Technology were established as wholly-owned foreign invested enterprises and therefore are subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory common reserve at least 10% of its annual after-tax profit until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The Group’s provision for the statutory common reserve is in compliance with the aforementioned requirement of the Company Law. A domestic enterprise is also required to provide for discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with PRC accounting standards, the Group’s entities in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Group’s entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Group’s entities in the PRC (mainland) not available for distribution, were US$23,581 and US$23,428, as of September 30, 2014 and 2015, respectively. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAX | 14. INCOME TAX Cayman Islands Under current law of Cayman Islands, the Company is not subject to income or capital gains taxes. In addition, dividends payments are not subject to tax withholding in the Cayman Islands. The United States DL Education was established in the United States and is inactive in the years ended September 30, 2014 and 2015. Therefore there is no income that is subject to the U.S. federal income taxes and state income taxes. Hong Kong CDEL Hong Kong and Pencil have not recorded tax provision for Hong Kong profits tax as the companies have not had assessable profits arising in or derived from Hong Kong. China The Enterprise Income Tax Law (the “EIT Law”) of the PRC, which took effect on January 1, 2008, applies a uniform 25% enterprise income tax rate to all resident enterprise in China, including foreign invested enterprises. Since 2008, Beijing Champion and Champion Technology qualified as “high and new technology enterprise strongly supported by the State” (“HNTE”) under the EIT Law, and therefore, were entitled to preferential income tax rates. In October 2011 and October 2014, Beijing Champion and Champion Technology renewed the HNTE qualification, and therefore, were continually entitled to the preferential income tax rate of 15% in years 2011 through 2016. As a result, the Group applied 15% to determine the tax liabilities for these two entities. Since 2012, Zhengbao Yucai obtained HNTE qualification and was entitled to preferential income tax rate of 15%. In December 2015, Zhengbao Yucai renewed the HNTE qualification, and therefore was continually entitled to the preferential income tax rate in years 2015 through 2017. Under the EIT Law and its implementation rules, a withholding tax at 10%, unless reduced by a tax treaty or arrangement, is applied on dividends received by non-PRC-resident corporate investors from PRC-resident enterprises, such as the Company’s PRC subsidiaries. Undistributed earnings prior to January 1, 2008 are exempt from such withholding tax. Under the China-HK Tax Arrangement and the relevant regulations, a qualified Hong Kong tax resident which is the “beneficial owner” and holds 25% equity interests or more of a PRC enterprise is entitled to a reduced withholding rate of 5%. The Company believes that CDEL Hong Kong qualifies for the 5% withholding tax rate. CDEL Hong Kong’s deferred tax liabilities related to potential withholding tax were US$1,276 and US$1,729 as of September 30, 2014 and 2015, respectively, on the undistributed earnings from its investment in the PRC entities generated after January 1, 2008. The related income tax expenses were US$271, US$371 and US$453 for the years ended September 30, 2013, 2014 and 2015, respectively. In general, the PRC tax authorities have up to five years to conduct examinations of the PRC entities’ tax filings. Accordingly, the PRC entities’ tax years from 2009 to 2014 remain subject to examination by the tax authorities and US$37 was reversed for the unpaid tax liability that was accrued before 2009 tax year. Income before income taxes consisted of: Years ended September 30, 2013 2014 2015 US$ US$ US$ Non - PRC (2,003 ) (1,757 ) (2,381 ) PRC 19,364 29,218 32,828 17,361 27,461 30,447 The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Current tax expense 3,107 3,988 4,798 Deferred tax expense 690 64 1,076 3,797 4,052 5,874 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations is as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Income before taxes 17,361 27,461 30,447 Income tax expense computed at applicable tax rates of 25% 4,340 6,865 7,612 Effect of different tax rates in different jurisdictions 440 357 614 Non-deductible expenses 75 94 120 Effect of tax holidays (1,740 ) (2,888 ) (3,001 ) Effect of valuation allowances 194 33 59 Effect of tax rate changes 237 — — Withholding tax on undistributed earnings 251 373 507 Income tax reversal — (782 ) (37 ) 3,797 4,052 5,874 Effective income tax rate 21.87 % 14.76 % 19.29 % The aggregate amount and per share effect of the tax holidays are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ The aggregate amount of tax holidays 1,740 2,888 3,001 The aggregate effect on basic and diluted net income per share: - Basic 0.01 0.02 0.02 - Diluted 0.01 0.02 0.02 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred taxes are as follows: As of September 30, 2014 2015 US$ US$ Current deferred tax assets Payroll payable 794 679 Accrued expenses 599 604 Allowance for doubtful accounts 546 247 Net operating loss carry-forwards 255 40 Total current deferred tax assets 2,194 1,570 Less: valuation allowance (78 ) (62 ) Current deferred tax assets, net 2,116 1,508 Non-current deferred tax assets Intangible assets 19 13 Property, plant and equipment 140 132 Net operating loss carry-forwards 314 346 Total non-current deferred tax assets 473 491 Less: valuation allowance (268 ) (337 ) Non-current deferred tax assets, net 205 154 Non-current deferred tax liabilities Intangible assets 39 15 Withholding tax on undistributed earnings 1,276 1,729 Total non-current deferred tax liabilities 1,315 1,744 The authoritative guidance requires that the Group recognizes the impact of a tax position in the financial statements if that position is more likely than not of being sustained upon audit by the tax authority, based on the technical merits of the position. Under PRC laws and regulations, arrangements and transactions among related parties may be subject to examination by the PRC tax authorities. If the PRC tax authorities determine that the contractual arrangements among related companies do not represent a price under normal commercial terms, they may make adjustments to the companies’ income and expenses. A transfer pricing adjustment could result in additional tax liabilities. As a result of the Group’s assessment of its tax positions, the unrecognized tax benefit related to transfer price position prior to the year 2009 was recorded at US$177, US$177 and US$171 as of September 30, 2013, 2014 and 2015, respectively. The subsequent changes of the unrecognized tax benefit were due to foreign currency adjustment. Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized Balance - September 30, 2013 177 Foreign currency adjustment — Balance - September 30, 2014 177 Foreign currency adjustment (6 ) Balance - September 30, 2015 171 The Group does not anticipate any significant change in unrecognized tax benefits within 12 months from September 30, 2015. In addition, uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The New EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the New EIT Law provide that non-resident legal entities will be considered PRC residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting and properties, occurs within the PRC. Despite the present uncertainties resulting from the limited PRC tax guidance on the issue, the Group does not believe that the legal entities organized outside of the PRC within the Group should be treated as residents for EIT law purposes. If the PRC tax authorities subsequently determine that the Company and its subsidiaries registered outside the PRC should be deemed resident enterprises, the Company and its subsidiaries registered outside the PRC will be subject to the PRC income taxes, at a rate of 25%. |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Sep. 30, 2015 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 15. EMPLOYEE DEFINED CONTRIBUTION PLAN Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiaries of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Group has no legal obligation for the benefits beyond the contributions made. The total amounts for such employee benefits, which were expensed as incurred, were US$3,910, US$5,331 and US$6,432 for the years ended September 30, 2013, 2014 and 2015, respectively. Obligations for contributions to defined contribution retirement plans for full-time employee in Hong Kong, including contributions payable under the Hong Kong Mandatory Provident Fund Schemes Ordinance, are recognized as expenses in the consolidated statements of operations as incurred. The total amounts for such employee benefits were US$2, US$2 and US$3 for the years ended September 30, 2013, 2014 and 2015, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2015 | |
COMMITMENTS AND CONTINGENCIES | 16. COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable operating leases related to offices, servers and bandwidth with initial terms of one-year or longer consisted of the following at September 30, 2015: US$ Years ending September 30, 2016 4,796 2017 3,341 2018 1,427 2019 118 2020 98 9,780 Payments under operating leases are expensed on the straight-line basis over the periods of their respective leases. The terms of the leases do not contain rent escalation or contingent rents. For the years ended September 30, 2013, 2014 and 2015, total rental expenses for all operating leases amounted to US$3,904, US$5,786 and US$6,955, respectively. Legal contingencies The group is a party in potential claims arising in the ordinary course of business. The Group does not believe that the resolution of these matters will have a material effect on its financial position or results of operations. Assets pledged as security for bank borrowing As disclosed in Note 11, on June 24, 2015, CDEL Cayman entered into a loan agreement for a RMB103.6 million, approximately US$16,300, term loan facility. The facility was secured by a term deposit of RMB103.6 million provided by Champion Technology, which was recorded as “restricted cash” on the consolidated balance sheet as of September 30, 2015. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2015 | |
SEGMENT REPORTING | 17. SEGMENT REPORTING The Group operates and manages its business as a single segment that includes primarily the provision of online and offline education services and selling of related products. The revenues attributable to the different service and product groups are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Online education services 58,573 80,545 88,657 Books and reference materials 5,129 6,392 6,873 Offline education services 4,617 7,817 10,758 Others 3,041 2,442 1,889 71,360 97,196 108,177 Online education services accounted for 82.1%, 82.9% and 82.0% of the Group’s total net revenue for the years ended September 30, 2013, 2014 and 2015, respectively. Geographic disclosures: As the Group primarily generates its revenues from customers in the PRC, no geographical segments are presented. The majority of the Group’s long-lived assets are located in the PRC. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Sep. 30, 2015 | |
NET INCOME PER SHARE | 18. NET INCOME PER SHARE Basic and diluted net income per share for each of the periods presented were calculated as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Numerator: Net income 13,564 23,409 24,573 - allocated to ordinary share - basic 13,554 23,392 24,485 - allocated to nonvested restricted share - basic 10 17 88 Denominator: Weighted average number of ordinary shares outstanding 135,174,562 139,613,967 142,720,838 Weighted average number of nonvested restricted share 103,082 102,754 512,833 Plus incremental weighted average ordinary sharesfrom assumed exercise of share options usingthe treasury stock method 1,121,589 780,483 534,319 Weighted average ordinary shares outstanding used incomputing diluted net income per share 136,399,233 140,497,204 143,767,990 Basic net income per share 0.10 0.17 0.17 Basic net income per nonvested restricted share 0.10 0.17 0.17 Diluted net income per share 0.10 0.17 0.17 Diluted net income per nonvested restricted share 0.10 0.17 0.17 |
SHARE INCENTIVE PLAN
SHARE INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2015 | |
SHARE INCENTIVE PLAN | 19. SHARE INCENTIVE PLAN Share options On April 18, 2008, the Company’s shareholders approved the “China Distance Education Holdings Limited Share Incentive Plan” (the “Prior Plan”), which permits the grant of share options and shares to its employees and non-employees (the “Participants”). The maximum number of ordinary shares that may be delivered pursuant to compensatory awards granted to the “Participants” under the Prior Plan should not exceed 11,652,556 ordinary shares of par value US$0.0001 per share. On July 2, 2008, the Company’s shareholders approved the “China Distance Education Holdings Limited 2008 Performance Incentive Plan” (the “New Plan”). Subject to any amendment of the New Plan, the maximum number of ordinary shares that may be issued pursuant to the New Plan is equal to 5% of the total number of ordinary shares issued and outstanding as of August 4, 2008, plus an automatic annual increase on October 1 of each calendar year commencing with October 1, 2008, by an amount equal to the lesser of (i) 1% of the total number of ordinary shares issued and outstanding on September 30 of the same calendar year, or (ii) such number of ordinary shares as may be determined by the Company’s board of directors. The purpose of these share incentive plans is to promote the success of the Company and the interests of its shareholders by providing a means through which the Company may grant equity-based incentives to attract, motivate, retain and reward certain officers, employees, directors and other eligible persons and to further link the interests of recipients with those of the Company’s shareholders generally. The Prior Plan will expire on April 17, 2018. The New Plan will expire on the tenth anniversary date of August 4, 2008. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest within 4 years of continuous service and have 10-year contractual terms. Share awards generally vest for 1 year. On May 21, 2013, the Company’s board of directors and compensation committee approved to cancel 400,000 options that were granted to the five directors on December 2, 2008 with an exercise price per share equal to US$0.615. Since these options were fully vested and the corresponding share-based compensation was recognized before the cancellation date, no expense related to such options was recorded in the year ended September 30, 2013. By the same resolution of the board of directors on May 21, 2013, 720,900 options that were granted to the selected employees on November 17, 2009 with an exercise price per share equal to US$1.87 were cancelled. This cancellation resulted in an immediate recording of the remaining share-based compensation of US$146 in the year ended September 30, 2013. On November 18, 2014, the Company’s board of directors approved to grant to certain employees 2,800,000 share options for an exercise price per share at US$3.74. These options shall vest subject to a four-year vesting schedule with 25% vesting in each year. A summary of option activity as of September 30, 2015, and changes during the years ended September 30, 2015 are presented below: Share option granted to employees and non-executive directors Number of Weighted- Weighted- Aggregated Outstanding, September 30, 2014 484,000 US$ 0.35 5.73 1,528 Granted 2,800,000 US$ 3.74 9.14 Exercised (121,024 ) US$ 0.15 Forfeited (599,376 ) US$ 3.22 Outstanding, September 30, 2015 2,563,600 US$ 3.36 8.69 Expected to vest, September 30, 2015 2,288,000 US$ 3.74 9.14 Exercisable at September 30, 2015 275,600 US$ 0.15 4.91 841 A summary of the activities of the share option granted to non-employees as of September 30, 2015, and changes during the year ended September 30, 2015 are presented below: Share option granted to non-employees Number Weighted- Weighted- Aggregated Outstanding, September 30, 2014 128,200 US$ 0.35 3.55 405 Exercised (2,900 ) US$ 0.18 Outstanding, September 30, 2015 125,300 US$ 0.15 2.55 382 Exercisable at September 30, 2015 125,300 US$ 0.15 2.55 382 On November 18, 2014, the Company declared a cash dividend of US$0.20 per ordinary share on its outstanding shares to shareholders as of January 6, 2015. According to the terms of the Prior and New Plan, the exercise price was duly reduced by US$0.20 for all of the outstanding options as of January 6, 2015. The change in exercise price incurred in the year ended September 30, 2015, and therefore was not reflected in the weighted-average exercise price as of September 30, 2014. The total intrinsic value of options exercised during the year ended September 30, 2015 was US$317. As of September 30, 2015, the unrecognized share-based compensation cost related to share options amounted to approximately US$2,878. This compensation cost is expected to be recognized over a weighted-average vesting period of 3.14 years. The fair value of options granted on November 18, 2014 was estimated on the date of grant using the binomial option pricing model with the following assumptions: For the year ended Weighted average expected volatility 56 % Risk-free interest rate 2.32 % Weighted average expected dividend yield 2.79 % Weighted average fair value of the underlying ordinary shares $ 3.7425 per share Expected average exercise multiple 1.95 times Nonvested restricted shares On December 3, 2013, the Company granted 125,000 nonvested restricted shares of the Company to its directors. These shares are restricted on transferability and will be forfeited if the directors cease to provide requisite service to the Company. The restriction will be removed upon the vesting of the nonvested restricted shares on the first anniversary of the issuance day. Before the removal of such restrictions, the holders of the nonvested shares shall be entitled to all rights and privileges of those of ordinary shareholders, and shall be entitled to voting rights and dividends. Therefore, these nonvested shares are considered participating securities for the purpose of net earnings per share calculation. The grant-date fair value of a nonvested restricted share was US$4.58, which was determined based on the closing price of the Company’s ADSs on NYSE on December 3, 2013. This grant resulted in a total share-based compensation of US$573, which was recognized ratably over the requisite service period of one year. On December 3, 2014, the Company granted 125,000 nonvested restricted shares of the Company to its directors. These shares are restricted on transferability and will be forfeited if the directors cease to provide requisite service to the Company. The restriction will be removed upon the vesting of the nonvested restricted shares on the first anniversary of the issuance day. Before the removal of such restrictions, the holders of the nonvested shares shall be entitled to all rights and privileges of those of ordinary shareholders, and shall be entitled to voting rights and dividends. Therefore, these nonvested shares are considered participating securities for the purpose of net earnings per share calculation. The grant-date value of a nonvested restricted share was US$4.53, which was determined based on the closing price of the Company’s ADSs on NYSE on December 3, 2014. This grant resulted in a total share-based compensation of USD$566, which was recognized ratably over the requisite service period of one year. On January 12, 2015, the Company granted 542,372 nonvested restricted shares. These nonvested restricted shares are subject to a four-year vesting period with 25% vesting on the first anniversary of the issuance date and the remaining 75% vesting in six substantially equal semi-annual installments. Before the removal of restriction on the transferability, the holder of the nonvested shares shall be entitled to all rights and privileges of those of ordinary shareholders, and shall be entitled to voting rights and dividends. Therefore, these nonvested shares are considered participating securities for the purpose of net earnings per share calculation. The grant-date value of a nonvested restricted share was US$3.6875, which was determined based the closing price of the Company’s ASDs on NYSE on January 12, 2015. This grant resulted in a total share-based compensation of USD$2,000, to be recognized ratably over the requisite service period of four years. A summary of the nonvested restricted shares activity is as follows: Number of Weight average Aggregated US$ Nonvested restricted shares outstanding at September 30, 2014 125,000 4.58 $ 438 Granted 667,372 3.85 Vested (125,000 ) 4.58 Nonvested restricted shares outstanding at September 30, 2015 667,372 3.85 $ 2,132 Nonvested restricted shares expected to vest at September 30, 2015 667,372 3.85 $ 2,132 The total fair value of nonvested restricted shares vested during the years ended September 30, 2013, 2014 and 2015 were $122, $153 and $573, respectively. The Company recorded share-based compensation expenses of $250, $503 and $921 for the years ended September 30, 2013, 2014 and 2015, respectively. As of September 30, 2015, there was $1,615 of share-based compensation related to nonvested shares that is expected to be recognized over a weighted average period of 3.1 years. Share-based compensation expense Total share-based compensation expense of share-based awards granted to employees, non-employees and non-executive directors recognized for the years ended September 30, 2013, 2014 and 2015 are as follows: As of September 30, 2013 2014 2015 US$ US$ US$ Cost of services 56 — 143 General and administrative expenses 522 503 1,566 Selling expenses 47 — 74 625 503 1,783 |
CASH DIVIDEND
CASH DIVIDEND | 12 Months Ended |
Sep. 30, 2015 | |
CASH DIVIDEND | 20. CASH DIVIDEND On November 13, 2012, the Company approved and declared a cash dividend of US$0.12 per ordinary share on its total 135,409,521 outstanding shares as of the close of trading on December 7, 2012, resulting in payments totaling US$16,056 to shareholders. Such dividend was recorded as a reduction to additional paid-in capital since the Company had cumulative deficits at the declaration date. On November 20, 2013, the Company approved and declared a cash dividend of US$0.15 per ordinary share on its total 136,409,633 outstanding shares as of the close of trading on January 8, 2014, resulting in payments totaling US$20,258 to shareholders. Such dividend was recorded as a reduction against retained earnings to the extent of the balance as of November 20, 2013 retained by the Company’s wholly owned subsidiaries in the PRC and then as a reduction against additional paid-in capital for the remainder. On November 18, 2014, the Company approved and declared a cash dividend of US$0.20 per ordinary share on its total 142,878,373 outstanding shares as of the close of trading on January 6, 2015, resulting in payments totaling US$28,199 to shareholders. Such dividend was recorded as a reduction against retained earnings to the extent of the balance as of November 18, 2014 retained by the Company’s wholly owned subsidiaries in the PRC and then as a reduction against additional paid-in capital for the remainder. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2015 | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS On November 11, 2015, the Company approved and declared a cash dividend of US$0.225 per ordinary share on its outstanding shares to shareholders of record as of the close of trading on January 6, 2016. Holders of ADS, each representing four ordinary shares of CDEL, are accordingly entitled to the cash dividend of $0.90 per ADS. The depository, Deutsche Bank Trust Company Americas, will charge a fee of $0.02 per ADS when the dividends are distributed on or about January 13, 2016. On November 11, 2015, the Board of Directors approved an increase to the share repurchase authorization of an additional $10,000 to a total of $20,000. The Group is in the process to submit its application of Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”), an original 100% owned subsidiary of the consolidated VIE of the Group, for listing on the National Equities Exchange and Quotations, an emerging over-the-counter market in China. To facilitate the proposed listing, the 99.73% equity interest of Zhengbao Yucai owned by Beijing Champion Hi-Tech Co., Ltd., was transferred to Beijing Champion Distance Education Technology Co., Ltd., in October 2015. The rest 0.27% equity interest of Zhengbao Yucai was owned by Beijing Champion Wangge Education Technology Co., Ltd, a wholly owned subsidiary of Beijing Champion Hi-Tech Co., Ltd. The transfer is a transaction under common control as both are entities consolidated by the Group. In January 2016, Zhengbao Yucai issued new shares to selected directors, officers and employees, and as a result, the equity interest of the Group in Zhengbao Yucai reduced to 60.1%. The net proceeds received by Zhengbao Yucai amounted to RMB 31.7 million ($4,993). In December 2015, the Group incorporated Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd., (“Zhongxi Healthcare Education”), in the PRC. Also in December 2015, a series of contractual arrangements was signed among Zhongxi Healthcare Education, Beijing Champion Healthcare Education Technology Co., Ltd (“Champion Healthcare Education”), a private company domiciled in the PRC owned by Zhengdong Zhu and Baohong Yin, and the shareholders of Champion Healthcare Education. These contractual arrangements include an exclusive business cooperation agreement, an equity pledge agreement, an exclusive option agreement, the powers of attorney and letter of undertaking. The purpose of this arrangement is to facilitate further development of healthcare education related services and products. |
Financial Statement Schedule I
Financial Statement Schedule I | 12 Months Ended |
Sep. 30, 2015 | |
Financial Statement Schedule I | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS (U.S. dollars in thousands, except share data and per share data) As of September 30, 2014 2015 US$ US$ ASSETS Current assets Cash and cash equivalents 11,740 9,453 Prepayment and other current assets 304 280 Amount due from subsidiaries 2,707 3,889 Total current assets 14,751 13,622 Non-current assets Investment in subsidiaries 86,976 110,401 Total non-current assets 86,976 110,401 Total assets 101,727 124,023 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities 185 296 Amount due to subsidiaries 3,132 16,451 Bank borrowing — 16,467 Total current liabilities 3,317 33,214 Total liabilities 3,317 33,214 Shareholders’ equity Ordinary shares (par value of US$0.0001 per share at September 30, 2014 and 2015; Authorized – 500,000,000 and 500,000,000 shares at September 30, 2014 and 2015; Issued and outstanding – 142,752,873 and 142,406,933 shares at September 30, 2014 and 2015, respectively) 14 14 Additional paid-in capital 77,270 55,598 Accumulated other comprehensive income 6,220 2,735 Retained earnings 14,906 32,462 Total equity 98,410 90,809 Total liabilities and equity 101,727 124,023 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data and per share data) For the years ended September 30, 2013 2014 2015 US$ US$ US$ Cost of revenues (56 ) — (143 ) Selling expenses (47 ) — (74 ) General and administrative expenses (1,556 ) (1,378 ) (2,540 ) Operating loss (1,659 ) (1,378 ) (2,757 ) Equity in income of subsidiaries and variable interest entities 15,215 24,627 26,910 Interest income 8 160 31 Interest expense — — (178 ) Exchange gain — — 567 Net income 13,564 23,409 24,573 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (U.S. dollars in thousands, except share data and per share data) Years ended September 30, 2013 2014 2015 US$ US$ US$ Net income 13,564 23,409 24,573 Other comprehensive (loss) income: Foreign currency translation adjustment 1,373 (75 ) (3,485 ) Total comprehensive income 14,937 23,334 21,088 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENT OF CHANGES IN EQUITY (U.S. dollars in thousands, except share data and per share data) China Distance Education Holding Limited shareholders Number of Ordinary Additional Accumulated Retained Total US$ US$ US$ US$ US$ Balance as of September 30, 2012 134,386,849 13 61,777 4,922 (2,095 ) 64,617 Net income for the year — — — — 13,564 13,564 Foreign currency translation adjustments — — — 1,373 — 1,373 Repurchase of ordinary shares (67,100 ) — (93 ) — — (93 ) Options exercised 987,392 1 602 — — 603 Stock-based compensation expense (Note 19) 225,000 — 625 — — 625 Dividends (Note 20) — — (16,056 ) — — (16,056 ) Loan to optionees in connection with exercise of options — — (113 ) — — (113 ) Balance as of September 30, 2013 135,532,141 14 46,742 6,295 11,469 64,520 Net income for the year — — — — 23,409 23,409 Foreign currency translation adjustments — — — (75 ) — (75 ) Repurchase of ordinary shares — — — — — — Issuance of new ordinary shares (Note 12) 6,000,000 — 29,088 — — 29,088 Options exercised 1,095,732 — 491 — — 491 Stock-based compensation expense (Note 19) 125,000 — 503 — — 503 Dividends (Note 20) — — (286 ) — (19,972 ) (20,258 ) Repayment of loan to optionees in connectionwith exercise of options — — 732 — — 732 Balance as of September 30, 2014 142,752,873 14 77,270 6,220 14,906 98,410 Net income for the year — — — — 24,573 24,573 Foreign currency translation adjustments — — — (3,485 ) — (3,485 ) Repurchase of ordinary shares (1,137,236 ) — (3,333 ) — — (3,333 ) Options exercised 123,924 — 18 — — 18 Stock-based compensation expense (Note 19) 667,372 — 1,783 — — 1,783 Dividends (Note 20) — — (21,182 ) — (7,017 ) (28,199 ) Repayment of loan to optionees in connectionwith exercise of options — — 1,042 — — 1,042 Balance as of September 30, 2015 142,406,933 14 55,598 2,735 32,462 90,809 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF CASH FLOWS (U.S. dollars in thousands, except share data and per share data) For the years ended September 30, 2013 2014 2015 US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income 13,564 23,409 24,573 Adjustments to reconcile net incometo net cash used in operating activities: Equity in profit of subsidiaries and variable interest entities (15,215 ) (24,627 ) (26,910 ) Share-based compensation 625 503 1,783 Increase (decrease) in accrued expenses and other liabilities 650 (624 ) 111 (Increase) decrease in amounts due from subsidiaries 6,262 (65 ) (1,182 ) Decrease (increase) in prepayments and other assets 15 (26 ) 24 Increase in amounts due to a subsidiary 93 784 13,319 Increase in short-term borrowing — — 16,467 Net cash generated in operating activities 5,994 (646 ) 28,185 Repurchase of ordinary shares (93 ) — (3,333 ) Proceeds from share options exercised by employees 603 491 18 Loan to optionees in connection with exercise of options (408 ) (510 ) — Repayment of loan to optioneesin connection with exercise of options 295 1,242 1,042 Issuance of new shares — 29,088 — Dividends paid to shareholders (16,056 ) (20,258 ) (28,199 ) Net cash used in financing activities (15,659 ) 10,053 (30,472 ) Net (decrease) increase in cash and cash equivalents (9,665 ) 9,407 (2,287 ) Cash and cash equivalents at beginning of the year 11,998 2,333 11,740 Cash and cash equivalents and end of the year 2,333 11,740 9,453 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company NOTES TO FINANCIAL STATEMENTS (U.S. dollars in thousands, except share data and per share data) 1. BASIS FOR PREPARATION The condensed financial information of the Parent Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries and VIE. The condensed financial information is provided since the restricted net assets of the Group’s subsidiaries, VIE and VIE’s subsidiaries were over the 25% of the consolidated net assets of the Group as of September 30, 2015. 2. INVESTMENTS IN SUBSIDIARIES AND VIE In its consolidated financial statements, the Parent Company consolidates the results of operations and assets and liabilities of its subsidiaries, VIE and VIE’s subsidiaries, and inter-company balances and transactions were eliminated upon consolidation. For the purpose of the Parent Company’s standalone financial statements, its investments in subsidiaries are reported using the equity method of accounting as a single line item and the Parent Company’s share of income from its subsidiaries are reported as the single line item of equity in income of subsidiaries and variable interest entities. The Parent Company carried the investments in subsidiaries and VIE at $86,976 and $110,401 at September 30, 2014 and 2015, respectively. The Parent Company’s share of equity in income in subsidiaries and the VIE recognized in years ended September 30, 2013, 2014 and 2015 was $15,215, $24,627and $26,910, respectively. |
SIGNIFICANT ACCOUNTING POLICI30
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, revenue recognition, consolidation of VIE, income tax, allowance for doubtful accounts, impairment of goodwill and long-term assets and share-based compensation expenses. Actual results could materially differ from those estimates. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIE and VIE’s subsidiaries. All transactions and balances among the Company, its subsidiaries, its VIE and VIE’s subsidiaries have been eliminated upon consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company, DL Education, CDEL Hong Kong, Pencil, China Healthcare Investment and China Healthcare Education’s functional currencies are United States dollars (“US$”). The Company’s PRC subsidiaries, VIE and VIE’s subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”). The Company uses the US$ as its reporting currency and uses the monthly average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position of its PRC subsidiaries and its variable interest entities, respectively. Translation differences are recorded in accumulated other comprehensive income, a component of consolidated statements of changes in equity. Transactions denominated in foreign currencies are remeasured into the functional currency at the exchange rates prevailing on the transaction dates. Foreign currency denominated financial assets and liabilities are remeasured at the balance sheet date exchange rate. Exchange gains and losses are included in the consolidated statements of comprehensive income. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand and highly liquid investments which are unrestricted as to withdrawal or use, and which have an original maturity of three months or less when purchased. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with an original maturity of greater than three months and less than one year. |
Restricted cash | Restricted cash Restricted cash represents deposits not readily available to the Company. Restricted cash as of September 30, 2015 mainly represented cash pledged as security of bank borrowing. |
Inventories | Inventories Inventories, consisting of paper and professional examination reference books, are stated at the lower of cost or market value. Cost is determined using the first in, first out method. |
Fair value | Fair value Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability. Authoritative literature provides a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The level in the hierarchy within which the fair value measurement in its entirety falls is based upon the lowest level of input that is significant to the fair value measurement as follows: Level 1 Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Group’s financial instruments consist of cash equivalents, term deposits, restricted cash, accounts receivable, other current assets, and other current liabilities. The carrying amounts of these instruments approximate their fair values due to their short-term maturity. The Group reviews goodwill for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. Other intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. |
Allowance for doubtful accounts | Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Allowance is reversed when the underlying balance of doubtful accounts are subsequently collected. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Estimated residual value Buildings 35 years 5-10 % Electronic and office equipment 5 years 5-10 % Motor vehicles 5 years 5-10 % Leasehold improvement and building improvement Shorter of lease term or 5 years — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations. |
Goodwill | Goodwill Goodwill is not amortized, but tested for impairment annually or more frequently if event and circumstances indicate that it might be impaired. The excess of the purchase price over the fair value of net assets acquired is recorded on the consolidated balance sheet as goodwill. The guidance permits the Company to first assess qualitative factors to determine whether it is “more likely than not” that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. For the years ended September 30, 2014 and 2015, the Group performed its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. |
Other intangible assets, net | Other intangible assets, net Other intangible assets are amortized using the straight-line basis over the estimated useful lives as follows: Category Estimated useful life Computer software 3~5 years Trademarks and domain names 10~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5 years Platform 3.5 years |
Impairment of long-lived assets | Impairment of long-lived assets The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. When these events occur, the Group measures impairment by comparing the carrying value of the long-lived assets to the estimated undiscounted future cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Group would recognize an impairment loss based on the fair value of the assets. If the intent is to hold the asset for sale and certain other criteria are met (i.e., the asset can be disposed of currently, appropriate levels of authority have approved sale, and there is an actively pursuing buyer), the impairment test is a comparison of the asset’s carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. Assets held for sale are separately presented on the balance sheet and are no longer depreciated. |
Revenue recognition | Revenue recognition Revenues are recognized when the following four criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the service has been rendered, (iii) the fees are fixed or determinable, and (iv) collectability is reasonably assured. Online education services The online education service provided by the Group to its customers is an integrated service, including audio-video course content, mock examinations and online chat rooms during the subscription period. Audio-video course content, mock examinations and online chat rooms are not practical to be sold on standalone basis and have never been sold separately. The Group earns revenues by providing online education services to customers pursuant to two types of revenue models - non-refundable course model and refundable course model. The on-line courses using the non-refundable course model are mainly comprised of regular classes and premium classes. The revenues for the regular classes are recognized on a straight line basis over the subscription period from the month in which the customers enroll in the courses to the month in which subscribed courses terminate. For premium classes, if participants fail to pass the course examination and certain pre-agreed conditions are met, the participants can be offered by certain course fee discount to retake the same premium course. As such, the discount is proportionately applied as a deduction to revenue recognized for each of the premium classes that participants take. For on-line courses using the refundable course model (i.e. elite classes), if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement, they are entitled to either a full refund or the right to retake the course. The participants must notify the Group within a pre-agreed period after the professional examinations scores are released in order to be eligible for the refund or the right to retake the course. The proceeds from the refundable course model are initially recorded as “refundable fees”. Revenues are recognized upon the expiration of the participants’ right to receive a refund or ratably over the retake course period when the participants decide to retake the course before the expiration of such right. Most of the course participants pay course fees via online payment systems provided by third parties including internet debit or credit card payment systems and other third-party payment systems. Some participants may choose to enroll for on-line courses through the use of prepaid study cards which are purchased from distributors. The Group sells to its regional distributors prepaid study cards at a discount to the face value of the cards. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the on-line course is available to the customers, which generally is from the enrollment date to the completion of the relevant professional examination date. Sales of prepaid study cards that are not activated for course enrollment are recognized as revenues upon expiration of the cards. Prepaid study cards that have been activated but have not been used to enroll on-line courses do not have an expiry date and will be deferred until they are used to enroll in on-line courses. Participants who enroll with the Company directly are eligible to a refund within a 7-day trial period. Revenues from direct enrollment with the Company are recognized over the period from the lapse of the 7-day trial period to the completion of the relevant professional examination date. The Group may, at times, offer volume discounts to its regional distributors for purchases over a specified amount of prepaid cards during a specified period of time, generally, one year. The amount of future rebates relating to these volume discounts cannot be reasonably estimated and accordingly a deferred revenue balance is recognized for the maximum potential amount of volume discount. If the number of purchases specified in the volume discount provisions is not reached upon the expiry of the volume discount period, the deferred revenue relating to such volume discount for each study card is recognized as revenue over the remaining period the on-line course is available to the user who enrolls using the study card or recognized as revenue immediately if the related on-line course has been completed or the study card has expired. The Group provides student enrollment services and online platform to government agencies which use the Group’s online platform to conduct continuing education services. The Group earns service fees as a percentage of total tuition fees based on the agreements entered into with the government agencies. Service fees are initially recorded as deferred revenue and are recognized as revenue when course participants complete the stipulated study hours and take the examinations, or on a straight line basis over the subscription period based on the terms of the agreements. The Group also operates an Online Open Learning Platform, a proprietary education platform that allows other parties to share their educational content or deliver live courses online. After passing the Group’s quality control reviews, experts and scholars of various fields can either record their own lectures and post them on the Open Learning Platform website, or deliver real-time audio-video courses. The group offers coaching services to these lecturers and deploys a user evaluation system to ensure that these courses meet its quality and effectiveness standards. The Group pays the experts and scholars certain percentage of the service fee they received from the end users. Revenues from Open Learning Platform are recognized on gross basis, as the Group is the primary obligor in the arrangement and bears the risks and rewards, including the quality control and the services delivered. For the years ended September 30, 2013, 2014 and 2015, the Group recognized revenues before business tax and related surcharges in connection with expired study cards amounting to US$164, US$114, and US$101, respectively. The on-line courses service is provided by Beijing Champion and its subsidiaries which are subject to approximately 3% business tax and related surcharges. The Group records revenues net of these taxes in the consolidated statements of operations. Such business tax and related surcharges for the years ended September 30, 2013, 2014 and 2015 were US$1,986, US$2,699 and US$2,996 respectively. Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are deferred until cash is collected. Inventory costs of products delivered to distributors for which revenues have been deferred are presented as “deferred costs” on the consolidated balance sheets. The Group also sells books and reference materials together with study cards which allow the customers to take a certain number of on-line courses for no additional charge. These sales are considered arrangements with two deliverables, consisting of the delivery of books and reference material and the on-line courses service. Because neither vendor-specific objective evidence nor third-party evidence of fair value of the deliverables exist, the Group allocates revenue to each deliverables based on their relative selling price. Other revenues Other revenues include sales of offline professional training, courseware production services, platform production services, and others. Revenues from offline professional training are recognized when the training courses are provided. For offline training sponsored by government authorities, the tuition fees of the training participants are subsidized by the government. Qualified enrollments and the fees to be earned cannot be determined until the confirmation from government authorities regarding the number of students and fees is received by the Company, which is after the completion of services. Therefore, revenues from such services are recognized upon cash receipt or the receipt of confirmations from government authorities, whichever is earlier, when all the other revenue recognition criteria have been met. Revenues from sales of courseware, which are designed and developed pursuant to the requests from customers, are recognized when the courseware or platforms are accepted by the customers. The Company has no significant remaining obligation with respect to the courseware or platforms upon the acceptance of the customers. From time to time, the Group enters into arrangement to provide the development and maintenance of online platforms to its customers. After the development of online platforms, the Group provides support and maintenance services. The development of online platform and the support and maintenance services have never been sold separately and they do not have standalone value to the customers. Accordingly, revenues from such arrangement is accounted as a single unit of accounting and recognized ratably over the support and maintenance services period. Revenues from other services, including magazine content production, advertising and consulting services, are recognized over the period when such services are provided. |
Value added taxes | Value added taxes On January 1, 2012, the PRC Ministry of Finance and the State Administration of Taxation officially launched a pilot value-added tax (“VAT”) reform program (“Pilot Program”), applicable to businesses in selected industries. Businesses in the Pilot Program would pay VAT instead of business tax. The Pilot Program initially applied only to transportation industry and “modern service industries” (“Pilot Industries”) in Shanghai and subsequently was expanded to ten other provinces and municipalities between August and December 2012. As a result, since September 1, 2012, technical and consulting service, software licensing and course production services provided by Champion Technology and Champion Education Technology; and since July 1, 2014, course production services provided by Champion Wangge were no longer subject to business tax but VAT instead. Champion Technology is a VAT general taxpayer. Champion Education Technology was a VAT small-scale taxpayer but was treated as a general taxpayer since February 1, 2014. Champion Wangge was a VAT small-scale taxpayer but was treated as a general taxpayer since January 1, 2015. The applicable VAT rates are 6% and 3% for the entities that are general taxpayer and small-scale taxpayer, respectively. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in the line item of accrued expenses and other current liabilities on the consolidated balance sheets. Pursuant to a circular jointly released by Ministry of Finance and State Administration of Taxation on December 25, 2013, the Group is subject to a VAT exemption for the proceeds received from customers for sales related to books and reference materials till December 31, 2017. As a result, the Group registered a tax exemption application at state tax bureau in February 2014 and started to enjoy such tax exemption for the relevant sales since March 2014. Prior to the filling of tax exemption application in February 2014, the Group was subject to VAT generally at a rate of 13% on the proceeds received for the sales of books and reference materials. |
Cost of sales | Cost of sales Cost of online education services primarily includes the production costs of study cards, server and bandwidth leasing fees, lecturer fees, staff costs involved in the operation of online education services including network operation and maintenance, course production and tutor services and other direct costs of providing these services. These costs are expensed when incurred. The cost of books and reference materials, including direct materials used for production of books, authorship fee and printing cost, are initially deferred and recorded as “deferred cost”. The deferred costs are recognized as cost of sales when the related revenue is recognized upon cash receipt. |
Advertising expenditure | Advertising expenditure Advertising expenditure is expensed when incurred and are included in “selling expenses” in the consolidated statements of operations. Advertising expenses were US$3,167, US$6,464 and US$10,377, for the years ended September 30, 2013, 2014 and 2015, respectively. |
Shipping and handling costs | Shipping and handling costs Shipping and handling costs of books and reference materials are classified as a component of “selling expenses” in the consolidated statements of operations. Shipping and handling costs classified as selling expenses were US$489, US$703 and US$718, for the years ended September 30, 2013, 2014 and 2015, respectively. |
Income taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Share-based compensation | Share-based compensation Share-based compensation with employees is measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to paid-in capital. The Group recognizes compensation expense over the vesting term on a straight-line basis with the amount of compensation expense recognized at any date not less than the portion of the grant-date value of the option vested at that date. Share-based compensation with non-employee is measured based on the fair value of options at the earlier of the performance commitment date or the date at which the non-employee’s performance is complete (hereafter referred to as the measurement date). The Group recognizes compensation expense using the graded vesting attribution method. Share-based compensation awards which require the issuance of a variable number of shares to settle a fixed monetary amount are accounted for as liabilities. |
Net income per share | Net income per share Basic net income per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Nonvested restricted shares are also participating securities as they enjoy identical dividend rights as ordinary shares. Accordingly, the Group uses the two-class method whereby undistributed net income is allocated on a pro rata basis to each participating share to the extent that each class may share in income for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of outstanding share-based awards is reflected in the diluted net income per share by application of the treasury stock method. |
Comprehensive income | Comprehensive income Comprehensive income includes net income and foreign currency translation adjustments and is reported in the consolidated statements of comprehensive income. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of US$110,342 and US$105,865, which were denominated in RMB, at September 30, 2014 and 2015, respectively, representing 93.5% and 89.8% of the cash and cash equivalents at September 30, 2014 and 2015, respectively. Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, term deposits, restricted cash, accounts receivable and prepayment and other current assets. As of September 30, 2015, substantially all of the Group’s cash and cash equivalents, term deposits and restricted cash were deposited in financial institutions located in the PRC and Hong Kong. Accounts receivable are typically unsecured and are derived from revenue earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended September 30, 2015. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 21.7% and 13.1% of the Group’s carrying amount of accounts receivable as of September 30, 2014 and September 30, 2015 respectively. |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued, ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The guidance substantially converges final standards on revenue recognition between the FASB and the International Accounting Standards Board providing a framework on addressing revenue recognition issues and, upon its effective date, replaces almost all exiting revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should 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. To achieve that core principle, an entity should apply the following steps: • Step 1: Identify the contract(s) with a customer. • Step 2: Identify the performance obligations in the contract. • Step 3: Determine the transaction price. • Step 4: Allocate the transaction price to the performance obligations in the contract. • Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Group is in the process of evaluating the impact of adoption of this guidance on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810) — Amendments to the Consolidation Analysis”. The amendments in Topic 810 respond to stakeholders’ concerns about the current accounting for consolidation of variable interest entities, by changing aspects of the analysis that a reporting entity must perform to determine whether it should consolidate such entities. Under the amendments, all reporting entities are within the scope of Subtopic 810-10, Consolidation – Overall, including limited partnerships and similar legal entities, unless a scope exception applies. The amendments are intended to be an improvement to current U.S. GAAP, as they simplify the codification of FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R), with changes including reducing the number of consolidation models through the elimination of the indefinite deferral of Statement 167 and placing more emphasis on risk of loss when determining a controlling financial interest. The amendments are effective for publicly-traded companies for fiscal years beginning after December 15, 2015, and for interim periods within those fiscal years. Earlier adoption is permitted. The implementation of this update is not expected to have any material impact on the Group’s consolidated financial statements. |
ORGANIZATION AND BASIS OF PRE31
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Details of Company's Subsidiaries and Variable Interest Entities | As of September 30, 2015, details of the Company’s subsidiaries, its VIE and VIE’s subsidiaries were as follows: Company Date of Place of Percentage of Principal activities Subsidiaries: China Distance Education Limited (“CDEL Hong Kong”) March 13, 2003 Hong Kong 100% Investment holding and provision of education services Practice Enterprises Network China International Links Limited (“Pencil”) February 23, 2010 Hong Kong 100% Inactive DL Education Service, LLC (“DL Education”) September 27,2012 US 100% Inactive Beijing Champion Distance Education Technology Co., Ltd. (“Champion Technology”) January 5, 2004 PRC 100% Provision of technical support and consultancy services and course production Beijing Champion Education Technology Co., Ltd. (“Champion Education Technology”) April 23, 2007 PRC 100% Software licensing and course production China Healthcare Investment Limited (“China Healthcare Investment”) May 20, 2015 BVI 100% Inactive China Healthcare Education Limited (“China Healthcare Education”) July 24, 2015 Hong Kong 100% Inactive Beijing Champion Accounting Education Technology Co., Ltd. (“Champion Accounting”) July 28, 2015 PRC 100% Inactive Variable interest entity: Beijing Champion Hi-Tech Co., Ltd. (“Beijing Champion”) July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Subsidiaries of variable interest entity: Beijing Caikaowang Company Ltd. (“Caikaowang”) November 28, PRC Nil Provision of online education services Beijing Champion Wangge Education Technology Co., Ltd. (“Champion Wangge”) June 24, 2008 PRC Nil Provision of online education services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC Nil Provision of start-up training services Beijing Haidian District Champion Training School (“Beijing Training School”) February 19, 2009 PRC Nil Provision of online and offline education services Beijing Champion Culture Development Co., Ltd. (“Champion Culture”) June 03, 2015 PRC Nil Inactive Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC Nil Inactive |
Financial Information of Company's VIE and VIE's Subsidiaries | The following financial information of the Company’s VIE and VIE’s subsidiaries as of September 30, 2014 and 2015 and for each of the three years in the period ended September 30, 2015 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIE and VIE’s subsidiaries: As of September 30, 2014 2015 US$ US$ Cash and cash equivalents 75,117 83,069 Prepayment and other current assets 3,100 4,387 Total current assets 87,205 110,268 Total assets 104,569 128,067 Deferred revenue 23,319 29,540 Total current liabilities 53,297 62,388 Total liabilities 53,297 62,388 Total equity 51,272 65,679 For the years ended September 30, 2013 2014 2015 US$ US$ US$ Revenues 70,942 96,990 108,111 Net income 21,062 31,986 36,760 Net cash provided by operating activities 25,755 36,326 26,988 Net cash used in investing activities (2,521 ) (850 ) (2,140 ) Effects of exchange rate changes 674 (65 ) (2,797 ) |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Schedule of Estimated Useful Lives of Property, Plant and Equipment | Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Estimated residual value Buildings 35 years 5-10 % Electronic and office equipment 5 years 5-10 % Motor vehicles 5 years 5-10 % Leasehold improvement and building improvement Shorter of lease term or 5 years — |
Schedule Of Estimated Useful Lives Of Other Intangible Assets | Other intangible assets are amortized using the straight-line basis over the estimated useful lives as follows: Category Estimated useful life Computer software 3~5 years Trademarks and domain names 10~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5 years Platform 3.5 years |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accounts Receivable, Net | Accounts receivable, net consisted of the following: As of September 30, 2014 2015 US$ US$ Accounts receivable 2,887 2,958 Less: allowance for doubtful accounts (1,250 ) (158 ) Accounts receivable, net 1,637 2,800 |
Movement Of Allowance For Doubtful Accounts | Movement of allowance for doubtful accounts was as follows: As of September 30, 2014 2015 US$ US$ Balance at beginning of the year 1,773 1,250 Reversal of the allowance for doubtful accounts (517 ) (1,078 ) Foreign currency adjustment (6 ) (14 ) Balance at end of the year 1,250 158 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Inventories | Inventories consisted of the following: As of September 30, 2014 2015 US$ US$ Books and other goods 968 1,373 Paper and other raw materials 121 173 Less: inventory provisions for slow-moving and obsolescence (640 ) (675 ) 449 871 |
PREPAYMENT AND OTHER CURRENT 35
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Prepayment And Other Current Assets | Prepayment and other current assets consisted of the following: As of September 30, Notes 2014 2015 US$ US$ Prepaid expenses 1,669 2,929 Advance to the suppliers (1 ) 766 1,111 Interest receivable 369 163 Funds receivable (2 ) 306 244 Deposits 23 10 Others 616 396 Prepayment and other current assets, net 3,749 4,853 (1) Advance to the suppliers represents interest-free cash deposits paid to suppliers for future purchase of raw materials and finished goods. The risk of loss arising from non-performance by or bankruptcy of the suppliers is assessed prior to making the deposits and is monitored on a regular basis by management. A charge to cost of sales will be recorded in the period in which a loss becomes probable. To date, the Group has not experienced any loss of advances to suppliers. (2) Funds receivable arise due to the time taken to clear customers’ payment transactions through external payment networks. When customers remit fees to the Group via external payment networks using their bank account or credit card, there is a clearing period before the cash is received by the Group which usually takes one to three business days. These fees are treated as a receivable until the cash is received. |
PROPERTY, PLANT AND EQUIPMENT36
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Property, Plant And Equipment | Property, plant and equipment consisted of the following: As of September 30, 2014 2015 US$ US$ Buildings 6,033 5,826 Electronic and office equipment 9,896 12,207 Leasehold improvement and building improvement 511 1,872 Motor vehicles 1,563 1,616 Total 18,003 21,521 Less: Accumulated depreciation (7,282 ) (8,605 ) 10,721 12,916 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Goodwill | Goodwill is comprised of the following: Years ended September 30 2014 2015 Online Start-up Total Online Start-up Total US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,880 1,831 7,711 5,863 1,826 7,689 Exchange difference (17 ) (5 ) (22 ) (201 ) (59 ) (260 ) Ending balance 5,863 1,826 7,689 5,662 1,767 7,429 Accumulated impairment loss — — — — — — Goodwill, net 5,863 1,826 7,689 5,662 1,767 7,429 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Composition Of Other Intangible Assets | The balance of other intangible assets consisted of the following: As of September 30, 2014 2015 US$ US$ Computer software 3,428 3,480 Trademarks and domain names 1,499 1,449 Courseware 486 470 Business contracts 530 511 Copyrights 662 639 Platform 217 209 Total intangible assets 6,822 6,758 Less: Accumulated amortization Computer software (2,595 ) (2,807 ) Trademarks and domain names (952 ) (1,045 ) Courseware (486 ) (470 ) Business contracts (530 ) (511 ) Copyrights (658 ) (638 ) Platform (217 ) (209 ) Accumulated amortization (5,438 ) (5,680 ) Intangible assets, net 1,384 1,078 |
Estimated Amortization Expenses for Other Intangible Assets | The estimated amortization expenses for the above other intangible assets for each of the following fiscal years are as follows: Amortization US$ 2016 345 2017 317 2018 193 2019 122 2020 55 2021 and thereafter 46 1,078 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Other Non-Current Assets | Other non-current assets consisted of the following: As of September 30, 2014 2015 US$ US$ Long-term prepaid expenses (1 ) 1,903 2,135 Rental deposits (2 ) 225 240 2,128 2,375 (1) Long-term prepaid expenses represent golf club membership fees. The amortization of the long term prepaid expenses was made within a ten-year amortizing period and was recorded as “general and administrative expenses” on the consolidated statements of operations. (2) Rental deposits represent office rental deposits for the Group’s daily operations. These deposits are classified as non-current deposits since they will not be refunded within one year. |
ACCRUED EXPENSES AND OTHER LI40
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Accrued Expenses And Other Liabilities | The components of accrued expenses and other liabilities are as follows: As of September 30, 2014 2015 US$ US$ Tuition fee payables to government agencies 10,096 13,084 Salary and welfare payable 5,222 4,555 Accrued expenses 3,726 3,349 Remuneration payable to lecturers 1,802 2,380 Uncertain income tax liabilities (Note 14) 177 171 Payables to employees in connection with options exercise 94 7 Other payable 1,578 2,447 22,695 25,993 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Income (Loss) Before Income Taxes | Income before income taxes consisted of: Years ended September 30, 2013 2014 2015 US$ US$ US$ Non - PRC (2,003 ) (1,757 ) (2,381 ) PRC 19,364 29,218 32,828 17,361 27,461 30,447 |
Current and Deferred Components of Income Tax Expense | The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Current tax expense 3,107 3,988 4,798 Deferred tax expense 690 64 1,076 3,797 4,052 5,874 |
Reconciliation of Effective Tax Rate and Statutory Income Tax Rate Applicable to PRC Operations | The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations is as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Income before taxes 17,361 27,461 30,447 Income tax expense computed at applicable tax rates of 25% 4,340 6,865 7,612 Effect of different tax rates in different jurisdictions 440 357 614 Non-deductible expenses 75 94 120 Effect of tax holidays (1,740 ) (2,888 ) (3,001 ) Effect of valuation allowances 194 33 59 Effect of tax rate changes 237 — — Withholding tax on undistributed earnings 251 373 507 Income tax reversal — (782 ) (37 ) 3,797 4,052 5,874 Effective income tax rate 21.87 % 14.76 % 19.29 % |
Aggregate Amount and per Share Effect of Tax Holidays | The aggregate amount and per share effect of the tax holidays are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ The aggregate amount of tax holidays 1,740 2,888 3,001 The aggregate effect on basic and diluted net income per share: - Basic 0.01 0.02 0.02 - Diluted 0.01 0.02 0.02 |
Components of Deferred Taxes | The components of deferred taxes are as follows: As of September 30, 2014 2015 US$ US$ Current deferred tax assets Payroll payable 794 679 Accrued expenses 599 604 Allowance for doubtful accounts 546 247 Net operating loss carry-forwards 255 40 Total current deferred tax assets 2,194 1,570 Less: valuation allowance (78 ) (62 ) Current deferred tax assets, net 2,116 1,508 Non-current deferred tax assets Intangible assets 19 13 Property, plant and equipment 140 132 Net operating loss carry-forwards 314 346 Total non-current deferred tax assets 473 491 Less: valuation allowance (268 ) (337 ) Non-current deferred tax assets, net 205 154 Non-current deferred tax liabilities Intangible assets 39 15 Withholding tax on undistributed earnings 1,276 1,729 Total non-current deferred tax liabilities 1,315 1,744 |
Reconciliation of Accrued Unrecognized Tax Benefits | Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized Balance - September 30, 2013 177 Foreign currency adjustment — Balance - September 30, 2014 177 Foreign currency adjustment (6 ) Balance - September 30, 2015 171 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Operating Lease Commitments | Future minimum payments under non-cancelable operating leases related to offices, servers and bandwidth with initial terms of one-year or longer consisted of the following at September 30, 2015: US$ Years ending September 30, 2016 4,796 2017 3,341 2018 1,427 2019 118 2020 98 9,780 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Revenues Attributable To The Different Service And Product Groups | The revenues attributable to the different service and product groups are as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Online education services 58,573 80,545 88,657 Books and reference materials 5,129 6,392 6,873 Offline education services 4,617 7,817 10,758 Others 3,041 2,442 1,889 71,360 97,196 108,177 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Basic and diluted net income per share | Basic and diluted net income per share for each of the periods presented were calculated as follows: Years ended September 30, 2013 2014 2015 US$ US$ US$ Numerator: Net income 13,564 23,409 24,573 - allocated to ordinary share - basic 13,554 23,392 24,485 - allocated to nonvested restricted share - basic 10 17 88 Denominator: Weighted average number of ordinary shares outstanding 135,174,562 139,613,967 142,720,838 Weighted average number of nonvested restricted share 103,082 102,754 512,833 Plus incremental weighted average ordinary sharesfrom assumed exercise of share options usingthe treasury stock method 1,121,589 780,483 534,319 Weighted average ordinary shares outstanding used incomputing diluted net income per share 136,399,233 140,497,204 143,767,990 Basic net income per share 0.10 0.17 0.17 Basic net income per nonvested restricted share 0.10 0.17 0.17 Diluted net income per share 0.10 0.17 0.17 Diluted net income per nonvested restricted share 0.10 0.17 0.17 |
SHARE INCENTIVE PLAN (Tables)
SHARE INCENTIVE PLAN (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Summary of Option Activity | A summary of option activity as of September 30, 2015, and changes during the years ended September 30, 2015 are presented below: Share option granted to employees and non-executive directors Number of Weighted- Weighted- Aggregated Outstanding, September 30, 2014 484,000 US$ 0.35 5.73 1,528 Granted 2,800,000 US$ 3.74 9.14 Exercised (121,024 ) US$ 0.15 Forfeited (599,376 ) US$ 3.22 Outstanding, September 30, 2015 2,563,600 US$ 3.36 8.69 Expected to vest, September 30, 2015 2,288,000 US$ 3.74 9.14 Exercisable at September 30, 2015 275,600 US$ 0.15 4.91 841 |
Share Options, NonEmployees | A summary of the activities of the share option granted to non-employees as of September 30, 2015, and changes during the year ended September 30, 2015 are presented below: Share option granted to non-employees Number Weighted- Weighted- Aggregated Outstanding, September 30, 2014 128,200 US$ 0.35 3.55 405 Exercised (2,900 ) US$ 0.18 Outstanding, September 30, 2015 125,300 US$ 0.15 2.55 382 Exercisable at September 30, 2015 125,300 US$ 0.15 2.55 382 |
Weighted-Average Assumptions Used to Calculate Fair Value of Options Granted | The fair value of options granted on November 18, 2014 was estimated on the date of grant using the binomial option pricing model with the following assumptions: For the year ended Weighted average expected volatility 56 % Risk-free interest rate 2.32 % Weighted average expected dividend yield 2.79 % Weighted average fair value of the underlying ordinary shares $ 3.7425 per share Expected average exercise multiple 1.95 times |
Summary of Nonvested Restricted Shares Activity | A summary of the nonvested restricted shares activity is as follows: Number of Weight average Aggregated US$ Nonvested restricted shares outstanding at September 30, 2014 125,000 4.58 $ 438 Granted 667,372 3.85 Vested (125,000 ) 4.58 Nonvested restricted shares outstanding at September 30, 2015 667,372 3.85 $ 2,132 Nonvested restricted shares expected to vest at September 30, 2015 667,372 3.85 $ 2,132 |
Share-Based Compensation Expense of Share-Based Awards Granted | Total share-based compensation expense of share-based awards granted to employees, non-employees and non-executive directors recognized for the years ended September 30, 2013, 2014 and 2015 are as follows: As of September 30, 2013 2014 2015 US$ US$ US$ Cost of services 56 — 143 General and administrative expenses 522 503 1,566 Selling expenses 47 — 74 625 503 1,783 |
Details of Subsidiaries and Var
Details of Subsidiaries and Variable Interest Entities (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
China Distance Education Limited ("CDEL Hong Kong") | HONG KONG | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Mar. 13, 2003 |
Place of establishment | Hong Kong |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Investment holding and provision of education services |
Practice Enterprises Network China International Links Limited ("Pencil") | HONG KONG | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Feb. 23, 2010 |
Place of establishment | Hong Kong |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
DL Education Service , LLC ("DL Education") | UNITED STATES | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Sep. 27, 2012 |
Place of establishment | US |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jan. 5, 2004 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Provision of technical support and consultancy services and course production |
Beijing Champion Education Technology Co Ltd ("Champion Education Technology") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Apr. 23, 2007 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Software licensing and course production |
China Healthcare Investment Limited ("China Healthcare Investment") | British Virgin Islands | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | May 20, 2015 |
Place of establishment | BVI |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
China Healthcare Education Limited ("China Healthcare Education") | HONG KONG | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jul. 24, 2015 |
Place of establishment | Hong Kong |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
Beijing Champion Accounting Education Technology ("Champion Accounting") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jul. 28, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
Beijing Champion Hi-Tech Co Ltd ("Beijing Champion") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jul. 12, 2000 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of online education services and sales of books and reference materials |
Beijing Caikaowang Company Ltd ("Caikaowang") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Nov. 28, 2007 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of online education services |
Beijing Champion Wangge Education Technology Co Ltd ("Champion Wangge") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jun. 24, 2008 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of online education services |
Beijing Zhengbao Yucai Education Technology Co Ltd ("Zhengbao Yucai") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Feb. 19, 2009 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of start-up training services |
Beijing Haidian District Champion Training School ("Beijing Training School") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Feb. 19, 2009 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of online and offline education services |
Beijing Champion Culture Development Co., Ltd. ("Champion Culture") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jun. 3, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Inactive |
Nanjing Champion Training School ("Nanjing Training School") | People's Republic of China | |
Subsidiaries And Variable Entities Line Items | |
Date of establishment | Jul. 3, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Inactive |
Organization and Basis of Pre47
Organization and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Basis Of Presentation And Organization [Line Items] | ||
Exclusive purchase right contract term | 10 years | |
Beijing Champion Hi-Tech Co Ltd ("Beijing Champion") and Subsidiaries | ||
Basis Of Presentation And Organization [Line Items] | ||
Percent of assets | 74.00% | 61.00% |
Percent of liabilities | 75.00% | 73.00% |
Financial Information of VIE an
Financial Information of VIE and VIE's Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 117,899 | $ 118,075 | |
Prepayment and other current assets | 4,853 | 3,749 | |
Total current assets | 150,229 | 149,613 | |
Total assets | 174,120 | 171,629 | |
Total current liabilities | 81,721 | 72,109 | |
Total liabilities | 83,311 | 73,219 | |
Revenues | 108,177 | 97,196 | $ 71,360 |
Net income | 24,573 | 23,409 | 13,564 |
Net cash provided by operating activities | 37,779 | 44,093 | 32,138 |
Net cash used in investing activities | (4,311) | (24,180) | 4,506 |
Effects of exchange rate changes | (3,757) | 128 | 1,211 |
Consolidated VIE | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 83,069 | 75,117 | |
Prepayment and other current assets | 4,387 | 3,100 | |
Total current assets | 110,268 | 87,205 | |
Total assets | 128,067 | 104,569 | |
Deferred revenue | 29,540 | 23,319 | |
Total current liabilities | 62,388 | 53,297 | |
Total liabilities | 62,388 | 53,297 | |
Total equity | 65,679 | 51,272 | |
Revenues | 108,111 | 96,990 | 70,942 |
Net income | 36,760 | 31,986 | 21,062 |
Net cash provided by operating activities | 26,988 | 36,326 | 25,755 |
Net cash used in investing activities | (2,140) | (850) | (2,521) |
Effects of exchange rate changes | $ (2,797) | $ (65) | $ 674 |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Building | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 35 years |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 5.00% |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 10.00% |
Electronic And Office Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Electronic And Office Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 5.00% |
Electronic And Office Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 10.00% |
Motor vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Motor vehicles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 5.00% |
Motor vehicles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated residual value | 10.00% |
Leasehold Improvement And Building Improvement | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Shorter of lease term or 5 years |
Other Intangible Assets Estimat
Other Intangible Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Computer Software | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
Computer Software | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Trademarks and domain names | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Trademarks and domain names | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 11 years |
Courseware | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 1 year |
Courseware | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Website | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Business Contracts | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years |
Business Contracts | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Copyrights | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Platform | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years 6 months |
Significant Accounting Polici51
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Significant Accounting Policies [Line Items] | |||
Advertising expenses | $ 10,377 | $ 6,464 | $ 3,167 |
Shipping and handling costs | 718 | 703 | 489 |
Cash and cash equivalents, denominated in RMB | $ 105,865 | $ 110,342 | |
Foreign currency risk, cash and cash equivalents, represented amount, percent | 89.80% | 93.50% | |
Accounts Receivable | Concentration Risk Customer One | |||
Significant Accounting Policies [Line Items] | |||
One customer's accounts receivable, Maximum percentage | 13.10% | 21.70% | |
Beijing Champion Hi-Tech Co Ltd ("Beijing Champion") | |||
Significant Accounting Policies [Line Items] | |||
Recognized revenues before business tax and related surcharges in connection with expired study cards | $ 101 | $ 114 | $ 164 |
Business tax and related surcharges, percent | 3.00% | 3.00% | 3.00% |
Business tax and related surcharges, amount | $ 2,996 | $ 2,699 | $ 1,986 |
PRC value added tax ("VAT"), general rate | 13.00% | ||
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | |||
Significant Accounting Policies [Line Items] | |||
PRC value added tax ("VAT"), general rate | 6.00% | ||
Beijing Champion Education Technology Co Ltd ("Champion Education Technology") | |||
Significant Accounting Policies [Line Items] | |||
PRC value added tax ("VAT"), general rate | 3.00% |
Accounts Receivable Net (Detail
Accounts Receivable Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable | $ 2,958 | $ 2,887 |
Less: allowance for doubtful accounts | (158) | (1,250) |
Accounts receivable, net | $ 2,800 | $ 1,637 |
Movement of Allowance For Doubt
Movement of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of the year | $ 1,250 | $ 1,773 |
Reversal of the allowance for doubtful accounts | (1,078) | (517) |
Foreign currency adjustment | (14) | (6) |
Balance at end of the year | $ 158 | $ 1,250 |
Inventories Net (Detail)
Inventories Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Inventory [Line Items] | ||
Books and other goods | $ 1,373 | $ 968 |
Paper and other raw materials | 173 | 121 |
Less: inventory provisions for slow-moving and obsolescence | (675) | (640) |
Inventories, net | $ 871 | $ 449 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Inventory [Line Items] | |||
Inventories provision | $ 58 | $ 527 | $ 67 |
Prepayment and Other Current 56
Prepayment and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | [1] | $ 2,929 | $ 1,669 |
Advance to the suppliers | 1,111 | 766 | |
Interest receivable | 163 | 369 | |
Funds receivable | [2] | 244 | 306 |
Deposits | 10 | 23 | |
Others | 396 | 616 | |
Prepayment and other current assets, net | $ 4,853 | $ 3,749 | |
[1] | Advance to the suppliers represents interest-free cash deposits paid to suppliers for future purchase of raw materials and finished goods. The risk of loss arising from non-performance by or bankruptcy of the suppliers is assessed prior to making the deposits and is monitored on a regular basis by management. A charge to cost of sales will be recorded in the period in which a loss becomes probable. To date, the Group has not experienced any loss of advances to suppliers. | ||
[2] | Funds receivable arise due to the time taken to clear customers' payment transactions through external payment networks. When customers remit fees to the Group via external payment networks using their bank account or credit card, there is a clearing period before the cash is received by the Group which usually takes one to three business days. These fees are treated as a receivable until the cash is received. |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 21,521 | $ 18,003 |
Less: Accumulated depreciation | (8,605) | (7,282) |
Property, Plant and Equipment, Net | 12,916 | 10,721 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 5,826 | 6,033 |
Electronic And Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 12,207 | 9,896 |
Leasehold Improvement And Building Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,872 | 511 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,616 | $ 1,563 |
Property, Plant and Equipment -
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 2,034 | $ 1,808 | $ 1,848 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Goodwill [Line Items] | ||
Beginning balance | $ 7,689 | $ 7,711 |
Exchange difference | (260) | (22) |
Ending balance | 7,429 | 7,689 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 7,429 | 7,689 |
Online Education Service | ||
Goodwill [Line Items] | ||
Beginning balance | 5,863 | 5,880 |
Exchange difference | (201) | (17) |
Ending balance | 5,662 | 5,863 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 5,662 | 5,863 |
Beijing Zhengbao Yucai Education Technology Co Ltd ("Zhengbao Yucai") | Startup Training Service | ||
Goodwill [Line Items] | ||
Beginning balance | 1,826 | 1,831 |
Exchange difference | (59) | (5) |
Ending balance | 1,767 | 1,826 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | $ 1,767 | $ 1,826 |
Composition of Other Intangible
Composition of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | $ 6,758 | $ 6,822 |
Less: Accumulated amortization | (5,680) | (5,438) |
Other intangible assets, Net | 1,078 | 1,384 |
Computer Software | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 3,480 | 3,428 |
Less: Accumulated amortization | (2,807) | (2,595) |
Trademarks and domain names | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 1,449 | 1,499 |
Less: Accumulated amortization | (1,045) | (952) |
Courseware | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 470 | 486 |
Less: Accumulated amortization | (470) | (486) |
Business Contracts | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 511 | 530 |
Less: Accumulated amortization | (511) | (530) |
Copyrights | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 639 | 662 |
Less: Accumulated amortization | (638) | (658) |
Platform | ||
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
Total intangible assets | 209 | 217 |
Less: Accumulated amortization | $ (209) | $ (217) |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Finite-Lived Intangible Assets And Liabilities [Line Items] | |||
Amortization expenses | $ 437 | $ 592 | $ 771 |
Estimated Amortization Expenses
Estimated Amortization Expenses for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Finite-Lived Intangible Assets And Liabilities [Line Items] | ||
2,016 | $ 345 | |
2,017 | 317 | |
2,018 | 193 | |
2,019 | 122 | |
2,020 | 55 | |
2021 and thereafter | 46 | |
Other intangible assets, Net | $ 1,078 | $ 1,384 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Assets Noncurrent [Line Items] | |||
Long-term prepaid expenses | [1] | $ 2,135 | $ 1,903 |
Rental deposits | [2] | 240 | 225 |
Other Assets, Miscellaneous, Total | $ 2,375 | $ 2,128 | |
[1] | Long-term prepaid expenses represent golf club membership fees. The amortization of the long term prepaid expenses was made within a ten-year amortizing period and was recorded as "general and administrative expenses" on the consolidated statements of operations. | ||
[2] | Rental deposits represent office rental deposits for the Group's daily operations. These deposits are classified as non-current deposits since they will not be refunded within one year. |
Other Non-Current Assets (Paren
Other Non-Current Assets (Parenthetical) (Detail) | 12 Months Ended |
Sep. 30, 2015 | |
Other Assets Noncurrent [Line Items] | |
Period over which golf club membership fee is valid | 10 years |
Components of Accrued Expenses
Components of Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Tuition fee payables to government agencies | $ 13,084 | $ 10,096 |
Salary and welfare payable | 4,555 | 5,222 |
Accrued expenses | 3,349 | 3,726 |
Remuneration payable to lecturers | 2,380 | 1,802 |
Uncertain income tax liabilities (Note 15) | 171 | 177 |
Payables to employees in connection with options exercise | 7 | 94 |
Other payable | 2,447 | 1,578 |
Accrued expenses and other liabilities | $ 25,993 | $ 22,695 |
Bank Borrowing - Additional Inf
Bank Borrowing - Additional Information (Detail) $ in Thousands, ¥ in Millions | Jun. 22, 2015CNY (¥) | Dec. 06, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2015CNY (¥) | Jun. 24, 2015USD ($) | Jun. 24, 2015CNY (¥) | Sep. 30, 2014USD ($) | Dec. 06, 2013CNY (¥) |
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | ¥ 300 | ||||||||
Term deposit used as collateral | ¥ 103.6 | ||||||||
Line of credit facility, current borrowing | ¥ 103.6 | ||||||||
Line of credit facility , interest rate | 3.625% | ||||||||
Line of credit facility, effective period | 3 years | ||||||||
Release of restricted cash | $ 16,405 | ¥ 100 | |||||||
Bank borrowing, fair value | $ | $ 16,389 | $ 16,362 | |||||||
China Distance Education Limited ("CDEL Hong Kong") | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 16,000 | $ 16,300 | ¥ 103.6 | ¥ 100 | |||||
Term loan agreement interest rate | 2.40% | 2.40% | |||||||
Term loan maturity period | 18 months | ||||||||
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Term deposit used as collateral | ¥ 103.6 | ¥ 100 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - USD ($) | Aug. 18, 2015 | Mar. 11, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 29, 2011 |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount, value | $ 20,000,000 | |||||
Stock repurchase program, additional authorized amount, value | $ 10,000,000 | |||||
Repurchase of ordinary shares | $ 3,333,000 | $ 93,000 | ||||
Net proceeds from issuance of shares | $ 29,088,000 | |||||
Ordinary shares | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of ordinary shares, shares | 1,137,236 | 67,100 | ||||
Number of shares issued and sold | 6,000,000 | |||||
ADS Shares | Follow-on Public Offering | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued and sold | 6,000,000 | |||||
Price per share sold | $ 21 | |||||
Net proceeds from issuance of shares | $ 29,088,000 | |||||
ADS Shares | Follow-on Public Offering | Selling Shareholders | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued and sold | 1,500,000 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Assets And Liabilities Relating To Securitization [Line Items] | ||
Minimum required percent of annual after-tax profit, general reserve | 10.00% | |
Required reserve, percent of respective registered capital | 50.00% | |
Minimum required percent of annual after-tax profit, statutory common reserve | 10.00% | |
Aggregate amount of paid-in capital and statutory reserves not available for distribution | $ 23,428 | $ 23,581 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Line Items] | |||||||
Income tax rate | 25.00% | 25.00% | 25.00% | ||||
Withholding tax on undistributed earnings | $ 1,729 | $ 1,276 | |||||
Income tax expenses | 5,874 | 4,052 | $ 3,797 | ||||
Income tax reverse | 37 | 782 | |||||
Unrecognized tax benefits | $ 171 | 177 | 177 | ||||
China Distance Education Limited ("CDEL Hong Kong") | |||||||
Income Tax Disclosure [Line Items] | |||||||
Withholding tax rate | 5.00% | ||||||
Withholding tax on undistributed earnings | $ 1,729 | 1,276 | |||||
Income tax expenses | $ 453 | $ 371 | $ 271 | ||||
Beijing Champion Hi-Tech Co Ltd ("Beijing Champion") | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Beijing Champion Hi-Tech Co Ltd ("Beijing Champion") | Scenario, Forecast | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | ||||||
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | Scenario, Forecast | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | 15.00% | |||||
Beijing Champion and Champion Technology | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% |
Income (Loss) before Income Tax
Income (Loss) before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Before Income Taxes [Line Items] | |||
Non - PRC | $ (2,381) | $ (1,757) | $ (2,003) |
PRC | 32,828 | 29,218 | 19,364 |
Income before income taxes | $ 30,447 | $ 27,461 | $ 17,361 |
Current and Deferred Components
Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current tax expense | $ 4,798 | $ 3,988 | $ 3,107 |
Deferred tax (benefit)/expense | 1,076 | 64 | 690 |
Income Tax Expense, Total | $ 5,874 | $ 4,052 | $ 3,797 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income before taxes | $ 30,447 | $ 27,461 | $ 17,361 |
Income tax expense computed at applicable tax rates of 25% | 7,612 | 6,865 | 4,340 |
Effect of different tax rates in different jurisdictions | 614 | 357 | 440 |
Non-deductible expenses | 120 | 94 | 75 |
Effect of tax holidays | (3,001) | (2,888) | (1,740) |
Effect of valuation allowances | 59 | 33 | 194 |
Effect of tax rate changes | 237 | ||
Withholding tax on undistributed earnings | 507 | 373 | 251 |
Income tax reversal | (37) | (782) | |
Income Tax Expense, Total | $ 5,874 | $ 4,052 | $ 3,797 |
Effective income tax rate | 19.29% | 14.76% | 21.87% |
Reconciliation of Effective T73
Reconciliation of Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income tax expense, applicable tax rates | 25.00% | 25.00% | 25.00% |
Aggregate Amount and Per Share
Aggregate Amount and Per Share Effect of Tax Holidays (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
The aggregate amount of tax holidays | $ 3,001 | $ 2,888 | $ 1,740 |
Basic | |||
The aggregate effect on basic and diluted net income per share: | $ 0.02 | $ 0.02 | $ 0.01 |
Diluted | |||
The aggregate effect on basic and diluted net income per share: | $ 0.02 | $ 0.02 | $ 0.01 |
Components of Deferred Taxes (D
Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Payroll payable | $ 679 | $ 794 |
Accrued expenses | 604 | 599 |
Allowance for doubtful accounts | 247 | 546 |
Net operating loss carry-forwards | 40 | 255 |
Total current deferred tax assets | 1,570 | 2,194 |
Less: valuation allowance | (62) | (78) |
Current deferred tax assets, net | 1,508 | 2,116 |
Intangible assets | 13 | 19 |
Property, plant and equipment | 132 | 140 |
Net operating loss carry-forwards | 346 | 314 |
Total non-current deferred tax assets | 491 | 473 |
Less: valuation allowance | (337) | (268) |
Non-current deferred tax assets, net | 154 | 205 |
Intangible assets | 15 | 39 |
Withholding tax on undistributed earnings | 1,729 | 1,276 |
Total non-current deferred tax liabilities | $ 1,744 | $ 1,315 |
Reconciliation of Accrued Unrec
Reconciliation of Accrued Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Beginning balance | $ 177 | $ 177 |
Foreign currency adjustment | (6) | |
Ending balance | $ 171 | $ 177 |
Employee Defined Contribution77
Employee Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total contributions to the government, employee benefits, expensed as incurred | $ 6,432 | $ 5,331 | $ 3,910 |
Employee benefits, mandatory contributions to defined contribution retirement plans for full time employees in Hong Kong | $ 3 | $ 2 | $ 2 |
Operating Lease Commitments (De
Operating Lease Commitments (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Commitments and Contingencies [Line Items] | |
2,016 | $ 4,796 |
2,017 | 3,341 |
2,018 | 1,427 |
2,019 | 118 |
2,020 | 98 |
Operating leases, future minimum payments due, total | $ 9,780 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | Sep. 30, 2015CNY (¥) | Jun. 24, 2015USD ($) | Jun. 24, 2015CNY (¥) | Jun. 22, 2015CNY (¥) | Dec. 06, 2013USD ($) | Dec. 06, 2013CNY (¥) | |
Commitment And Contingencies [Line Items] | |||||||||
Operating leases rent expenses | $ | $ 6,955 | $ 5,786 | $ 3,904 | ||||||
Term loan agreement value | ¥ 300 | ||||||||
Term deposit used as collateral | ¥ 103.6 | ||||||||
China Distance Education Limited ("CDEL Hong Kong") | Term Loan | |||||||||
Commitment And Contingencies [Line Items] | |||||||||
Term loan agreement value | $ 16,300 | ¥ 103.6 | $ 16,000 | ¥ 100 | |||||
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | Term Loan | |||||||||
Commitment And Contingencies [Line Items] | |||||||||
Term deposit used as collateral | ¥ 103.6 | ¥ 100 |
Revenues Attributable to Differ
Revenues Attributable to Different Service and Product Groups (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 108,177 | $ 97,196 | $ 71,360 |
Online Education Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 88,657 | 80,545 | 58,573 |
Books And Reference Materials | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6,873 | 6,392 | 5,129 |
Offline Education Service | |||
Segment Reporting Information [Line Items] | |||
Revenues | 10,758 | 7,817 | 4,617 |
Others | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,889 | $ 2,442 | $ 3,041 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Online Education Service | Sales Revenue, Net | Customer Concentration Risk | |||
Segment Reporting Information [Line Items] | |||
Percentage of total contract revenue from Online education services, percent | 82.00% | 82.90% | 82.10% |
Basic and Diluted Net Income pe
Basic and Diluted Net Income per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Allocated to ordinary share - basic | 24,485 | 23,392 | 13,554 |
Allocated to nonvested restricted share - basic | $ 88 | $ 17 | $ 10 |
Weighted average number of ordinary shares outstanding | 142,720,838 | 139,613,967 | 135,174,562 |
Weighted average number of nonvested restricted share | 512,833 | 102,754 | 103,082 |
Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method | 534,319 | 780,483 | 1,121,589 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 143,767,990 | 140,497,204 | 136,399,233 |
Basic net income per share | $ 0.17 | $ 0.17 | $ 0.10 |
Basic net income per nonvested restricted share | 0.17 | 0.17 | 0.10 |
Diluted net income per share | 0.17 | 0.17 | 0.10 |
Diluted net income per nonvested restricted share | $ 0.17 | $ 0.17 | $ 0.10 |
Share Incentive Plan - Addition
Share Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2015 | Jan. 06, 2015 | Dec. 03, 2014 | Nov. 18, 2014 | Dec. 03, 2013 | May. 21, 2013 | Jul. 02, 2008 | Apr. 18, 2008 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 17, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the Prior Plan, shares | 11,652,556 | |||||||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||
Maximum number of ordinary shares that may be issued pursuant to the New Plan, percent | 5.00% | |||||||||||
Vesting period | 4 years | |||||||||||
Total share base compensation | $ 1,783 | $ 503 | $ 625 | |||||||||
Share options granted | 2,800,000 | |||||||||||
Share options granted to selected employees exercise, price | $ 3.74 | |||||||||||
Dividends payable, amount per share | $ 0.20 | |||||||||||
Authorized reduction in exercise price of outstanding options | $ 0.20 | |||||||||||
Total intrinsic value of options exercised | $ 317 | |||||||||||
Nonvested restricted shares granted | 542,372 | 667,372 | ||||||||||
Grant date fair value non vested restricted share | $ 3.6875 | $ 3.85 | ||||||||||
Total share base compensation | $ 2,000 | |||||||||||
Share-based compensation requisite service period | 4 years | |||||||||||
Share-based compensation expenses | $ 1,783 | 503 | 625 | |||||||||
Vesting Period | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | |||||||||||
Vesting Period 1 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 25.00% | |||||||||||
Vesting Period 2 | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 75.00% | |||||||||||
Employee Stock Option | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 4 years | 4 years | ||||||||||
Contractual terms | 10 years | |||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized | $ 2,878 | |||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 3 years 1 month 21 days | |||||||||||
Share Awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 1 year | |||||||||||
Options Cancelled | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total share base compensation | 146 | |||||||||||
Non Vested Restricted Stock Awards | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Nonvested restricted shares granted | 125,000 | 125,000 | ||||||||||
Grant date fair value non vested restricted share | $ 4.53 | $ 4.58 | ||||||||||
Total share base compensation | $ 566 | $ 573 | ||||||||||
Share-based compensation requisite service period | 1 year | 1 year | ||||||||||
Nonvested Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized | $ 1,615 | |||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 3 years 1 month 6 days | |||||||||||
Total fair value of nonvested restricted shares | $ 573 | 153 | 122 | |||||||||
Share-based compensation expenses | $ 921 | $ 503 | $ 250 | |||||||||
Director | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options cancelled | 400,000 | |||||||||||
Employees | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Options cancelled | 720,900 | |||||||||||
Exercise price per share | $ 1.87 | |||||||||||
Share options granted | 2,800,000 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 18, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Outstanding, Granted | 2,800,000 | ||
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Outstanding, Beginning | 484,000 | ||
Number of shares, Outstanding, Granted | 2,800,000 | ||
Number of shares, Exercised | (121,024) | ||
Number of shares, Outstanding, Forfeited | (599,376) | ||
Number of shares, Outstanding, Ending | 2,563,600 | 484,000 | |
Number of shares, Expected to vest | 2,288,000 | ||
Number of shares, Exercisable | 275,600 | ||
Weighted-average exercise price, Outstanding, Beginning | $ 0.35 | ||
Weighted-average exercise price, Granted | 3.74 | ||
Weighted-average exercise price, Exercised | 0.15 | ||
Weighted-average exercise price, Forfeitedzz | 3.22 | ||
Weighted-average exercise price, Outstanding, Ending | 3.36 | $ 0.35 | |
Weighted-average exercise price: Expected to vest | 3.74 | ||
Weighted-average exercise price: Exercisable | $ 0.15 | ||
Weighted-average remaining contractual term (years), Granted | 9 years 1 month 21 days | ||
Weighted-average remaining contractual term (years), Outstanding | 8 years 8 months 9 days | 5 years 8 months 23 days | |
Number of shares, Expected to vest | 9 years 1 month 21 days | ||
Weighted-average remaining contractual term (years), Exercisable | 4 years 10 months 28 days | ||
Aggregated intrinsic value, Outstanding, Beginning | $ 1,528 | ||
Aggregated intrinsic value, Exercisable | $ 841 |
Share Options, Nonemployees (De
Share Options, Nonemployees (Detail) - Non Employee - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares, Outstanding, Beginning | 128,200 | |
Number of shares, Exercised | (2,900) | |
Number of shares, Outstanding, Ending | 125,300 | 128,200 |
Number of shares, Exercisable | 125,300 | |
Weighted-average exercise price, Outstanding, Beginning | $ 0.35 | |
Weighted-average exercise price, Exercised | 0.18 | |
Weighted-average exercise price, Outstanding, Ending | 0.15 | $ 0.35 |
Weighted-average exercise price: Exercisable | $ 0.15 | |
Weighted-average remaining contractual term (years), Outstanding | 2 years 6 months 18 days | 3 years 6 months 18 days |
Weighted-average remaining contractual term (years), Exercisable | 2 years 6 months 18 days | |
Aggregated intrinsic value, Outstanding, Beginning | $ 405 | |
Aggregated intrinsic value, Outstanding, Ending | 382 | $ 405 |
Aggregated intrinsic value, Exercisable | $ 382 |
Assumptions Used to Estimate Gr
Assumptions Used to Estimate Grant Date Fair Value of Options Granted (Detail) - Employee Stock Option | 12 Months Ended |
Sep. 30, 2015$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average expected volatility | 56.00% |
Risk-free interest rate | 2.32% |
Weighted average expected dividend yield | 2.79% |
Weighted average fair value of the underlying ordinary shares | $ 3.7425 |
Expected average exercise multiple | 1.95 |
Nonvested Restricted Shares Act
Nonvested Restricted Shares Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonvested restricted shares outstanding, Beginning balance | 125,000 | ||
Granted | 542,372 | 667,372 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (125,000) | ||
Nonvested restricted shares outstanding, Ending balance | 667,372 | ||
Nonvested restricted shares, Expected to vest | 667,372 | ||
Weighted average grant-date fair value, outstanding Beginning balance | $ 4.58 | ||
Weighted average grant-date fair value, Granted | $ 3.6875 | 3.85 | |
Weighted average grant-date fair value, Vested | 4.58 | ||
Weighted average grant-date fair value, outstanding Ending balance | 3.85 | ||
Weighted average grant-date fair value, Expected to vest | $ 3.85 | ||
Aggregated intrinsic value, Nonvested restricted shares outstanding | $ 2,132 | $ 438 | |
Aggregated intrinsic value, Expected to vest | $ 2,132 |
Total Share-Based Compensation
Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 1,783 | $ 503 | $ 625 |
Cost of Services | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 143 | 56 | |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,566 | $ 503 | 522 |
Selling Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 74 | $ 47 |
Cash Dividend - Additional Info
Cash Dividend - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 18, 2014 | Nov. 20, 2013 | Nov. 13, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 06, 2015 | Jan. 08, 2014 | Dec. 07, 2012 |
Cash dividend declared per ordinary share | $ 0.20 | $ 0.15 | $ 0.12 | ||||||
Ordinary Shares, Outstanding | 142,406,933 | 142,752,873 | 142,878,373 | 136,409,633 | 135,409,521 | ||||
Dividends | $ 28,199 | $ 20,258 | $ 16,056 | $ 28,199 | $ 20,258 | $ 16,056 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ / shares in Units, ¥ in Millions | Jan. 06, 2016$ / shares | Nov. 11, 2015USD ($)$ / shares | Aug. 18, 2015USD ($) | Jan. 27, 2016USD ($) | Jan. 27, 2016CNY (¥) | Dec. 31, 2015 | Oct. 31, 2015 | Jan. 06, 2015$ / shares | Apr. 29, 2011USD ($) |
Subsequent Event [Line Items] | |||||||||
Dividends payable, amount per share | $ / shares | $ 0.20 | ||||||||
Stock repurchase program, additional authorized amount, value | $ | $ 10,000,000 | ||||||||
Share repurchase authorization | $ | $ 20,000,000 | ||||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable, date declared | Nov. 11, 2015 | ||||||||
Dividends payable, amount per share | $ / shares | $ 0.225 | ||||||||
Dividends payable, date of record | Jan. 6, 2016 | ||||||||
Ordinary shares | Four ordinary shares | ||||||||
Cash dividend per ordinary share | $ / shares | $ 0.90 | ||||||||
Dividend fees to Deutsche Bank | $ / shares | $ 0.02 | ||||||||
Dividends payable, date of record | Jan. 13, 2016 | ||||||||
Stock repurchase program, additional authorized amount, value | $ | $ 10,000,000 | ||||||||
Share repurchase authorization | $ | $ 20,000,000 | ||||||||
Contractual arrangements, descriptions | Also in December 2015, a series of contractual arrangements was signed among Zhongxi Healthcare Education, Beijing Champion Healthcare Education Technology Co., Ltd (“Champion Healthcare Education”), a private company domiciled in the PRC owned by Zhengdong Zhu and Baohong Yin, and the shareholders of Champion Healthcare Education. These contractual arrangements include an exclusive business cooperation agreement, an equity pledge agreement, an exclusive option agreement, the powers of attorney and letter of undertaking. The purpose of this arrangement is to facilitate further development of healthcare education related services and products. | ||||||||
Subsequent Event | Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd., ("Zhongxi Healthcare Education") | |||||||||
Subsequent Event [Line Items] | |||||||||
Date of establishment | Dec. 31, 2015 | ||||||||
Place of establishment | PRC | ||||||||
Subsequent Event | Zhengbao Yucai | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity interest owned | 100.00% | ||||||||
Equity interest, percentage | 60.10% | 60.10% | |||||||
Net proceeds received | $ 4,993,000 | ¥ 31.7 | |||||||
Subsequent Event | Zhengbao Yucai | Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity interest acquired | 99.73% | ||||||||
Subsequent Event | Zhengbao Yucai | Beijing Champion Wangge Education Technology Co Ltd ("Champion Wangge") | |||||||||
Subsequent Event [Line Items] | |||||||||
Equity interest by minority | 0.27% |
Schedule I - BALANCE SHEETS (De
Schedule I - BALANCE SHEETS (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Current assets | ||||
Cash and cash equivalents | $ 117,899 | $ 118,075 | ||
Prepayment and other current assets | 4,853 | 3,749 | ||
Amount due from subsidiaries | 103 | |||
Total current assets | 150,229 | 149,613 | ||
Non-current assets | ||||
Total non-current assets | 23,891 | 22,016 | ||
Total assets | 174,120 | 171,629 | ||
Current liabilities | ||||
Accrued expenses and other liabilities | 25,993 | 22,695 | ||
Bank borrowing | 16,467 | 16,583 | ||
Total current liabilities | 81,721 | 72,109 | ||
Total liabilities | 83,311 | 73,219 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share at September 30, 2014 and 2015; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2014 and 2015; Issued and outstanding - 142,752,873 and 142,406,933 shares at September 30, 2014 and 2015, respectively) | 14 | 14 | ||
Additional paid-in capital | 55,598 | 77,270 | ||
Accumulated other comprehensive income | 2,735 | 6,220 | ||
Retained earnings | 32,462 | 14,906 | ||
Total liabilities and equity | 174,120 | 171,629 | ||
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 9,453 | 11,740 | $ 2,333 | $ 11,998 |
Prepayment and other current assets | 280 | 304 | ||
Amount due from subsidiaries | 3,889 | 2,707 | ||
Total current assets | 13,622 | 14,751 | ||
Non-current assets | ||||
Investment in subsidiaries | 110,401 | 86,976 | ||
Total non-current assets | 110,401 | 86,976 | ||
Total assets | 124,023 | 101,727 | ||
Current liabilities | ||||
Accrued expenses and other liabilities | 296 | 185 | ||
Amount due to subsidiaries | 16,451 | 3,132 | ||
Bank borrowing | 16,467 | |||
Total current liabilities | 33,214 | 3,317 | ||
Total liabilities | 33,214 | 3,317 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share at September 30, 2014 and 2015; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2014 and 2015; Issued and outstanding - 142,752,873 and 142,406,933 shares at September 30, 2014 and 2015, respectively) | 14 | 14 | ||
Additional paid-in capital | 55,598 | 77,270 | ||
Accumulated other comprehensive income | 2,735 | 6,220 | ||
Retained earnings | 32,462 | 14,906 | ||
Total equity | 90,809 | 98,410 | $ 64,520 | $ 64,617 |
Total liabilities and equity | $ 124,023 | $ 101,727 |
Schedule I - BALANCE SHEETS (Pa
Schedule I - BALANCE SHEETS (Parenthetical) (Detail) - $ / shares | Sep. 30, 2015 | Jan. 06, 2015 | Sep. 30, 2014 | Jan. 08, 2014 | Dec. 07, 2012 | Apr. 18, 2008 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Ordinary shares, Authorized | 500,000,000 | 500,000,000 | ||||
Ordinary shares, Issued | 142,406,933 | 142,752,873 | ||||
Ordinary Shares, Outstanding | 142,406,933 | 142,878,373 | 142,752,873 | 136,409,633 | 135,409,521 | |
Parent Company | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Ordinary shares, par value | $ 0.0001 | $ 0.0001 | ||||
Ordinary shares, Authorized | 500,000,000 | 500,000,000 | ||||
Ordinary shares, Issued | 142,406,933 | 142,752,873 | ||||
Ordinary Shares, Outstanding | 142,406,933 | 142,752,873 |
Schedule I - STATEMENTS OF OPER
Schedule I - STATEMENTS OF OPERATIONS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Selling expenses | $ (24,186) | $ (21,445) | $ (15,673) |
General and administrative expenses | (13,211) | (11,645) | (9,806) |
Operating income (loss) | 26,661 | 24,556 | 16,023 |
Interest income | 3,513 | 2,964 | 1,415 |
Interest expense | (464) | (291) | |
Exchange gain | 737 | 232 | (77) |
Net income | 24,573 | 23,409 | 13,564 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | (143) | (56) | |
Selling expenses | (74) | (47) | |
General and administrative expenses | (2,540) | (1,378) | (1,556) |
Operating income (loss) | (2,757) | (1,378) | (1,659) |
Equity in income of subsidiaries and variable interest entities | 26,910 | 24,627 | 15,215 |
Interest income | 31 | 160 | 8 |
Interest expense | (178) | ||
Exchange gain | 567 | ||
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Schedule I - STATEMENTS OF COMP
Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | $ 24,573 | $ 23,409 | $ 13,564 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (3,485) | (75) | 1,373 |
Total comprehensive income | 21,088 | 23,334 | 14,937 |
Parent Company | |||
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | 24,573 | 23,409 | 13,564 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustment | (3,485) | (75) | 1,373 |
Total comprehensive income | $ 21,088 | $ 23,334 | $ 14,937 |
Schedule I - STATEMENT OF CHANG
Schedule I - STATEMENT OF CHANGES IN EQUITY (Detail) - USD ($) $ in Thousands | Nov. 18, 2014 | Nov. 20, 2013 | Nov. 13, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Net income for the year | $ 24,573 | $ 23,409 | $ 13,564 | |||
Foreign currency translation adjustments | (3,485) | (75) | 1,373 | |||
Repurchase of ordinary shares | (3,333) | (93) | ||||
Issuance of new ordinary shares (Note 12) | 29,088 | |||||
Options exercised | 18 | 491 | 603 | |||
Stock-based compensation expense (Note 19) | 1,783 | 503 | 625 | |||
Dividends (Note 20) | $ (28,199) | $ (20,258) | $ (16,056) | (28,199) | (20,258) | (16,056) |
Loan to optionees in connection with exercise of options | $ 1,042 | $ 732 | $ (113) | |||
Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 142,752,873 | 135,532,141 | 134,386,849 | |||
Repurchase of ordinary shares (in shares) | (1,137,236) | (67,100) | ||||
Issuance of new ordinary shares (in shares) | 6,000,000 | |||||
Options exercised (in shares) | 123,924 | 1,095,732 | 987,392 | |||
Options exercised | $ 1 | |||||
Stock-based compensation expense (in shares)(Note 19) | 667,372 | 125,000 | 225,000 | |||
Ending Balance (in shares) | 142,406,933 | 142,752,873 | 135,532,141 | |||
Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repurchase of ordinary shares | $ (3,333) | $ (93) | ||||
Issuance of new ordinary shares (Note 12) | $ 29,088 | |||||
Options exercised | 18 | 491 | 602 | |||
Stock-based compensation expense (Note 19) | 1,783 | 503 | 625 | |||
Dividends (Note 20) | (21,182) | (286) | (16,056) | |||
Loan to optionees in connection with exercise of options | 1,042 | 732 | (113) | |||
Accumulated other comprehensive income | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Foreign currency translation adjustments | (3,485) | (75) | 1,373 | |||
Retained earnings/ (Cumulative deficits) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Dividends (Note 20) | (7,017) | (19,972) | ||||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 98,410 | 64,520 | 64,617 | |||
Net income for the year | 24,573 | 23,409 | 13,564 | |||
Foreign currency translation adjustments | (3,485) | (75) | 1,373 | |||
Repurchase of ordinary shares | (3,333) | (93) | ||||
Issuance of new ordinary shares (Note 12) | 29,088 | |||||
Options exercised | 18 | 491 | 603 | |||
Stock-based compensation expense (Note 19) | 1,783 | 503 | 625 | |||
Dividends (Note 20) | (28,199) | (20,258) | (16,056) | |||
Loan to optionees in connection with exercise of options | 1,042 | 732 | (113) | |||
Ending Balance | 90,809 | 98,410 | 64,520 | |||
Parent Company | Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | $ 14 | $ 14 | $ 13 | |||
Beginning Balance (in shares) | 142,752,873 | 135,532,141 | 134,386,849 | |||
Repurchase of ordinary shares (in shares) | (1,137,236) | (67,100) | ||||
Issuance of new ordinary shares (in shares) | 6,000,000 | |||||
Options exercised (in shares) | 123,924 | 1,095,732 | 987,392 | |||
Options exercised | $ 1 | |||||
Stock-based compensation expense (in shares)(Note 19) | 667,372 | 125,000 | 225,000 | |||
Ending Balance | $ 14 | $ 14 | $ 14 | |||
Ending Balance (in shares) | 142,406,933 | 142,752,873 | 135,532,141 | |||
Parent Company | Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | $ 77,270 | $ 46,742 | $ 61,777 | |||
Repurchase of ordinary shares | (3,333) | (93) | ||||
Issuance of new ordinary shares (Note 12) | 29,088 | |||||
Options exercised | 18 | 491 | 602 | |||
Stock-based compensation expense (Note 19) | 1,783 | 503 | 625 | |||
Dividends (Note 20) | (21,182) | (286) | (16,056) | |||
Loan to optionees in connection with exercise of options | 1,042 | 732 | (113) | |||
Ending Balance | 55,598 | 77,270 | 46,742 | |||
Parent Company | Accumulated other comprehensive income | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 6,220 | 6,295 | 4,922 | |||
Foreign currency translation adjustments | (3,485) | (75) | 1,373 | |||
Ending Balance | 2,735 | 6,220 | 6,295 | |||
Parent Company | Retained earnings/ (Cumulative deficits) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 14,906 | 11,469 | (2,095) | |||
Net income for the year | 24,573 | 23,409 | 13,564 | |||
Dividends (Note 20) | (7,017) | (19,972) | ||||
Ending Balance | $ 32,462 | $ 14,906 | $ 11,469 |
Schedule I - STATEMENTS OF CASH
Schedule I - STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ 24,573 | $ 23,409 | $ 13,564 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Share-based compensation | 1,783 | 503 | 625 |
Increase (decrease) in accrued expenses and other liabilities | 3,450 | 7,944 | 5,132 |
Decrease (increase) in prepayments and other assets | (1,315) | 327 | (420) |
Net cash generated from operating activities | 37,779 | 44,093 | 32,138 |
Repurchase of ordinary shares | (3,333) | (93) | |
Proceeds from share options exercised by employees | 18 | 491 | 603 |
Loan to optionees in connection with exercise of options | (510) | (408) | |
Repayment of loan to optionees in connection with exercise of options | 1,042 | 1,242 | 295 |
Issuance of new shares | 29,088 | ||
Dividends paid to shareholders | (28,199) | (20,258) | (16,056) |
Net cash (used in) generated from financing activities | (29,887) | 26,115 | (15,659) |
Net (decrease) increase in cash and cash equivalents | (176) | 46,156 | 22,196 |
Cash and cash equivalents at beginning of the year | 118,075 | ||
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | 24,573 | 23,409 | 13,564 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity in profit of subsidiaries and variable interest entities | (26,910) | (24,627) | (15,215) |
Share-based compensation | 1,783 | 503 | 625 |
Increase (decrease) in accrued expenses and other liabilities | 111 | (624) | 650 |
(Increase) decrease in amounts due from subsidiaries | (1,182) | (65) | 6,262 |
Decrease (increase) in prepayments and other assets | 24 | (26) | 15 |
Increase in amounts due to a subsidiary | 13,319 | 784 | 93 |
Increase in short-term borrowing | 16,467 | ||
Net cash generated from operating activities | 28,185 | (646) | 5,994 |
Repurchase of ordinary shares | (3,333) | (93) | |
Proceeds from share options exercised by employees | 18 | 491 | 603 |
Loan to optionees in connection with exercise of options | (510) | (408) | |
Repayment of loan to optionees in connection with exercise of options | 1,042 | 1,242 | 295 |
Issuance of new shares | 29,088 | ||
Dividends paid to shareholders | (28,199) | (20,258) | (16,056) |
Net cash (used in) generated from financing activities | (30,472) | 10,053 | (15,659) |
Net (decrease) increase in cash and cash equivalents | (2,287) | 9,407 | (9,665) |
Cash and cash equivalents at beginning of the year | 11,740 | 2,333 | 11,998 |
Cash and cash equivalents and end of the year | $ 9,453 | $ 11,740 | $ 2,333 |
Schedule I - Basis of Preparati
Schedule I - Basis of Preparation (Detail) | Sep. 30, 2015 |
Parent Company | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiaries, VIE and VIE's subsidiaries consolidated net assets percentage | 25.00% |
Schedule I - Investments in Sub
Schedule I - Investments in Subsidiaries and VIES (Detail) - Parent Company - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||
Investments in subsidiaries and VIEs | $ 110,401 | $ 86,976 | |
Equity in income of subsidiaries and variable interest entities | $ 26,910 | $ 24,627 | $ 15,215 |