Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2016shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
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 | 131,729,773 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 53,677 | $ 117,899 |
Term deposits | 4,720 | |
Restricted cash | 15,547 | 16,312 |
Short-term investments | 1,278 | |
Accounts receivable, net of allowance for doubtful accounts of US$158 and US$661 as of September 30, 2015 and 2016, respectively | 5,454 | 2,800 |
Inventories | 971 | 871 |
Prepayment and other current assets | 5,893 | 4,853 |
Amount due from a related party | 208 | 103 |
Deferred tax assets, current portion | 1,676 | 1,508 |
Deferred cost | 1,118 | 1,163 |
Total current assets | 85,822 | 150,229 |
Non-current assets | ||
Property, plant and equipment, net | 13,908 | 12,916 |
Goodwill | 29,392 | 7,429 |
Other intangible assets, net | 11,675 | 1,078 |
Deposit for purchase of non-current assets | 1,116 | 93 |
Long-term investments | 3,079 | |
Other non-current assets | 3,928 | 2,375 |
Total non-current assets | 63,098 | 23,891 |
Total assets | 148,920 | 174,120 |
Current liabilities | ||
Bank borrowing | 15,551 | 16,467 |
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$24,129 and US$26,279 as of September 30, 2015 and 2016, respectively) | 30,564 | 25,993 |
Income tax payable (including income tax payable of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$3,474 and US$3,353 as of September 30, 2015 and 2016, respectively) | 5,308 | 4,453 |
Deferred revenue (including deferred revenue of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$29,540 and US$35,437 as of September 30, 2015 and 2016, respectively) | 36,332 | 29,563 |
Refundable fees (including refundable fees of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$5,245 and US$862 as of September 30, 2015 and 2016, respectively) | 862 | 5,245 |
Total current liabilities | 88,617 | 81,721 |
Non-current liabilities | ||
Deferred tax liabilities, non-current portion | 3,831 | 1,590 |
Total non-current liabilities | 3,831 | 1,590 |
Total liabilities | 92,448 | 83,311 |
Commitments and contingencies (Note 20) | ||
Equity | ||
Ordinary shares (par value of US$0.0001 per share at September 30, 2015 and 2016, respectively; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2015 and 2016; Issued and outstanding - 142,406,933 and 131,729,773 shares at September 30, 2015 and 2016, respectively) | 13 | 14 |
Additional paid-in capital | 15,697 | 55,598 |
Accumulated other comprehensive income (loss) | (3,418) | 2,735 |
Retained earnings | 32,944 | 32,462 |
Total China Distance Education Holdings Limited shareholder's equity | 45,236 | 90,809 |
Noncontrolling interest (Note 21) | 11,236 | |
Total equity | 56,472 | 90,809 |
Total liabilities and equity | $ 148,920 | $ 174,120 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounts receivable, net of allowance for doubtful accounts | $ 661 | $ 158 |
Accrued expenses and other liabilities | 30,564 | 25,993 |
Income tax payable | 5,308 | 4,453 |
Deferred revenue | 36,332 | 29,563 |
Refundable fees | $ 862 | $ 5,245 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Issued | 131,729,773 | 142,406,933 |
Ordinary shares, Outstanding | 131,729,773 | 142,406,933 |
Variable Interest Entity, Primary Beneficiary | ||
Accrued expenses and other liabilities | $ 26,279 | $ 24,129 |
Income tax payable | 3,353 | 3,474 |
Deferred revenue | 35,437 | 29,540 |
Refundable fees | $ 862 | $ 5,245 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sales, net of business tax, value-added tax and related surcharges | |||
Online education services | $ 93,923 | $ 88,657 | $ 80,545 |
Books and reference materials | 8,067 | 6,873 | 6,392 |
Others | 15,558 | 12,647 | 10,259 |
Total net revenues | 117,548 | 108,177 | 97,196 |
Cost of sales | |||
Cost of services and others | (43,796) | (41,043) | (35,187) |
Cost of tangible goods sold | (4,538) | (3,300) | (4,616) |
Total cost of sales | (48,334) | (44,343) | (39,803) |
Gross profit | 69,214 | 63,834 | 57,393 |
Operating expenses | |||
Selling expenses | (24,517) | (24,186) | (21,445) |
General and administrative expenses | (16,778) | (13,211) | (11,645) |
Total operating expenses | (41,295) | (37,397) | (33,090) |
Other operating income | 806 | 224 | 253 |
Operating income | 28,725 | 26,661 | 24,556 |
Interest income | 2,020 | 3,513 | 2,964 |
Interest expense | (555) | (464) | (291) |
Exchange gain | 2,462 | 737 | 232 |
Income before income taxes | 32,652 | 30,447 | 27,461 |
Income tax expense | (6,150) | (5,874) | (4,052) |
Loss from equity method investment | (91) | ||
Net income | 26,411 | 24,573 | 23,409 |
Less: Net income attributable to noncontrolling interest | 121 | ||
Net income attributable to China Distance Education Holdings Limited | $ 26,290 | $ 24,573 | $ 23,409 |
Net income attributable to ordinary shareholders | |||
Basic | $ 0.19 | $ 0.17 | $ 0.17 |
Diluted | $ 0.19 | $ 0.17 | $ 0.17 |
Weighted average shares used in calculating net income per share | |||
Basic | 136,497,929 | 142,720,838 | 139,613,967 |
Diluted | 138,465,944 | 143,767,990 | 140,497,204 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net income | $ 26,411 | $ 24,573 | $ 23,409 |
Other comprehensive (loss) - change in cumulative foreign currency translation adjustments | (6,395) | (3,485) | (75) |
Comprehensive income | 20,016 | 21,088 | 23,334 |
Less: comprehensive (loss) attributable to non-controlling interests | (121) | ||
Comprehensive income attributable to China Distance Education Holdings Limited | $ 20,137 | $ 21,088 | $ 23,334 |
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 | Total China Distance Education Holding Limited shareholders' equity | Noncontrolling interest |
Beginning Balance (in shares) at Sep. 30, 2013 | 135,532,141 | ||||||
Beginning Balance at Sep. 30, 2013 | $ 64,520 | $ 14 | $ 46,742 | $ 6,295 | $ 11,469 | $ 64,520 | |
Net income for the year | 23,409 | 23,409 | 23,409 | ||||
Foreign currency translation adjustments | (75) | (75) | (75) | ||||
Issuance of new ordinary shares (in shares) | 6,000,000 | ||||||
Issuance of new ordinary shares (Note 16) | 29,088 | 29,088 | 29,088 | ||||
Options exercised (in shares) | 1,095,732 | ||||||
Options exercised | 491 | 491 | 491 | ||||
Stock-based compensation expense (in shares) (Note 24) | 125,000 | ||||||
Stock-based compensation expense (Note 24) | 503 | 503 | 503 | ||||
Dividends (Note 25) | (20,258) | (286) | (19,972) | (20,258) | |||
Repayment of loan to optionees in connection with exercise of options | 732 | 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 | 98,410 | |
Net income for the year | 24,573 | 24,573 | 24,573 | ||||
Foreign currency translation adjustments | (3,485) | (3,485) | (3,485) | ||||
Repurchase of ordinary shares (in shares) | (1,137,236) | ||||||
Repurchase of ordinary shares (Note 16) | (3,333) | (3,333) | (3,333) | ||||
Options exercised (in shares) | 123,924 | ||||||
Options exercised | 18 | 18 | 18 | ||||
Stock-based compensation expense (in shares) (Note 24) | 667,372 | ||||||
Stock-based compensation expense (Note 24) | 1,783 | 1,783 | 1,783 | ||||
Dividends (Note 25) | (28,199) | (21,182) | (7,017) | (28,199) | |||
Repayment of loan to optionees in connection with exercise of options | $ 1,042 | 1,042 | 1,042 | ||||
Ending Balance (in shares) at Sep. 30, 2015 | 142,406,933 | 142,406,933 | |||||
Ending Balance at Sep. 30, 2015 | $ 90,809 | $ 14 | 55,598 | 2,735 | 32,462 | 90,809 | |
Net income for the year | 26,411 | 26,290 | 26,290 | $ 121 | |||
Foreign currency translation adjustments | (6,395) | (6,153) | (6,153) | (242) | |||
Repurchase of ordinary shares (in shares) | (11,326,460) | ||||||
Repurchase of ordinary shares (Note 16) | (36,760) | $ (1) | (21,289) | (15,470) | (36,760) | ||
Options exercised (in shares) | 524,300 | ||||||
Options exercised | 1,659 | 1,659 | 1,659 | ||||
Stock-based compensation expense (in shares) (Note 24) | 125,000 | ||||||
Stock-based compensation expense (Note 24) | 2,015 | 2,015 | 2,015 | ||||
Dividends (Note 25) | (31,138) | (20,800) | (10,338) | (31,138) | |||
Capital contribution from noncontrolling interest | 4,824 | 4,824 | |||||
Noncontrolling interest arising from an acquisition | 6,533 | 6,533 | |||||
Loan to optionees in connection with exercise of options | (1,663) | (1,663) | (1,663) | ||||
Repayment of loan to optionees in connection with exercise of options | $ 177 | 177 | 177 | ||||
Ending Balance (in shares) at Sep. 30, 2016 | 131,729,773 | 131,729,773 | |||||
Ending Balance at Sep. 30, 2016 | $ 56,472 | $ 13 | $ 15,697 | $ (3,418) | $ 32,944 | $ 45,236 | $ 11,236 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 26,411 | $ 24,573 | $ 23,409 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Stock-based compensation | 2,015 | 1,783 | 503 |
Depreciation of property, plant and equipment | 2,533 | 2,034 | 1,808 |
Amortization of other intangible assets | 1,116 | 437 | 592 |
Change in allowance for doubtful accounts | (83) | (1,008) | (517) |
Losses on disposition of property, plant and equipment | 24 | 38 | 112 |
Loss from equity method investment | 91 | ||
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 230 | (170) | 2,385 |
(Increase) decrease in inventories | (125) | (447) | 246 |
(Increase) decrease in prepayments and other assets | (843) | (1,315) | 327 |
(Increase) decrease in deferred tax assets | (108) | 547 | (370) |
(Increase) decrease in deferred cost | (10) | 43 | 635 |
(Increase) in other non-current assets | (1,240) | (327) | (586) |
Increase in accrued expenses and other liabilities | 3,792 | 3,450 | 7,944 |
Increase (decrease) in income tax payable | 871 | 397 | (60) |
Increase in deferred revenue | 8,173 | 7,091 | 6,321 |
(Decrease) increase in refundable fees | (4,224) | 229 | 910 |
Increase in deferred tax liabilities | 459 | 529 | 434 |
(Increase) in amount due from a related party | (113) | (105) | |
Net cash generated from (used in) operating activities | 38,969 | 37,779 | 44,093 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of a business, net of cash acquired | (29,695) | ||
Maturity (purchase) of term deposits | 4,593 | 804 | (4,880) |
Purchase of short-term investments | (1,305) | ||
(Placement) of restricted cash | (16,656) | (16,607) | |
Release of restricted cash | 16,405 | ||
Acquisition of property, plant and equipment | (2,605) | (4,648) | (2,241) |
Proceeds from disposition of property, plant and equipment | 1 | ||
Acquisition of other intangible assets | (163) | (154) | (452) |
Payment of deposit for the acquisition of non-current assets | (1,167) | (62) | |
Payment for deposit for the purchase of investment | (459) | ||
Purchase of equity method investment | (1,914) | ||
Purchase of cost method investment | (651) | ||
Purchase of available-for-sale investment | (658) | ||
Net cash used in investing activities | (34,023) | (4,311) | (24,180) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Capital contribution from noncontrolling interests | 4,859 | ||
Loan repayment | (16,071) | ||
Bank borrowing | 16,656 | 16,062 | |
Issuance of new ordinary shares | 29,088 | ||
Repurchase of ordinary shares | (36,760) | (3,333) | |
Proceeds from share options exercised by employees | 1,659 | 18 | 491 |
Loan to optionees in connection with exercise of options | (1,663) | (510) | |
Repayment of loan to optionees in connection with exercise of options | 177 | 1,042 | 1,242 |
Dividends paid to shareholders | (31,138) | (28,199) | (20,258) |
Net cash generated from (used in) financing activities | (62,866) | (29,887) | 26,115 |
Exchange rate effect on cash and cash equivalents | (6,302) | (3,757) | 128 |
Net (decrease) increase in cash and cash equivalents | (64,222) | (176) | 46,156 |
Cash and cash equivalents at beginning of the year | 117,899 | 118,075 | 71,919 |
Cash and cash equivalents at end of the year | 53,677 | 117,899 | 118,075 |
Supplemental schedule of cash flow information | |||
Income tax paid | (5,245) | (4,418) | (4,049) |
Supplemental schedule of non-cash activities | |||
Acquisition of property, plant and equipment and other intangible assets through utilization of deposits | 117 | 60 | 280 |
Income tax reversal | $ 369 | $ 37 | $ 782 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2016 | |
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 entities (“VIEs”) and VIEs’ 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, 2016, details of the Company’s subsidiaries, its VIEs and VIEs’ 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% Provision of college cooperation program services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC 60.06% Provision of start-up Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC 60.06% Provision of start-up Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd. (“Zhongxi Healthcare Education”) December 14, 2015 PRC 100% Inactive Xiamen NetinNet Software Co., Ltd. (“Xiamen NetinNet”) August 15, 2005 PRC 80% Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) August 19, 2011 PRC 80% Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance “) April 7, 2005 PRC 80% Provision of learning simulation software production Variable interest entities Beijing Champion Hi-Tech July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Beijing Champion Healthcare Education Technology Co., Ltd. (“Champion Healthcare Education”) May 13, 2015 PRC Nil Inactive Subsidiaries of variable interest entities: Beijing Caikaowang Company Ltd. (“Caikaowang”) November 28, 2007 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 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 Provision of sales of books and reference materials Beijing Champion Tax Management and Advisory Co., Ltd. (“Champion Tax Advisory”) November 27, 2015 PRC Nil Provision of financial and tax advisory 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 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 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. 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. In December 2015, the Group incorporated Zhongxi Healthcare Education in the PRC. On December 28, 2015, a series of contractual arrangements were signed among Zhongxi Healthcare Education, Champion Healthcare Education, a private company domiciled in the PRC owned by Zhengdong Zhu and his spouse Baohong Yin, and the shareholders of Champion Healthcare Education. These contractual arrangements include an exclusive business cooperation agreement, an equity pledge agreement, a letter of undertaking, an exclusive option agreement, and the powers of attorney. • Agreements that transfer economic benefits to Zhongxi Healthcare Education Exclusive business cooperation agreement Pursuant to the exclusive business cooperation agreement between Zhongxi Healthcare Education and Champion Healthcare Education, Zhongxi Healthcare Education has the exclusive right to provide to Champion Healthcare Education with marketing, technical and management consulting services. Champion Healthcare Education is entitled to charge Zhongxi Healthcare Education a service fee equal to its profit before such service fee and tax. This agreement will remain effective until Zhongxi Healthcare Education ceases its operations or terminates this agreement in writing. Equity pledge agreement Under this agreement, for the purpose to secure the payment obligations of Champion Healthcare Education under the exclusive business cooperation agreement described above, each of Champion Healthcare Education’s shareholders, Mr. Zhu and Ms. Yin, pledged to Zhongxi Healthcare Education his or her entire equity ownership interests in Champion Healthcare Education. The equity pledges under the Equity Pledge Agreements entered into by Champion Technology and Mr. Zhengdong Zhu and Ms. Baohong Yin, respectively, and the equity pledges under the Equity Pledge Agreement entered into by Zhongxi Healthcare Education and Mr. Zhengdong Zhu and Ms. Baohong Yin are in the process of being registered with the relevant local branch of the State Administration for Industry and Commerce, or SAIC. Upon the occurrence of certain events of default specified in this agreement, the pledgee may exercise its rights and foreclose on the pledged equity interest. Under this agreement, the pledgors may not transfer the pledged equity interests without the pledgee’s prior written consent. This agreement will also be binding upon successors of the pledgors and transferees of the pledged equity interests. This agreement will remain effective until the discharge of Champion Healthcare Education’s contractual obligations under the exclusive business cooperation agreement as described above. Letter of Undertaking from Champion Healthcare Education’s Shareholders to Zhongxi Healthcare Education Pursuant to this letter addressed to Zhongxi Healthcare Education, the shareholders of Champion Healthcare Education 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 Champion Healthcare Education to Zhongxi Healthcare Education without compensation, after paying the corresponding tax and any other required expenses, (ii) transfer all or part of their equity interests in Champion Healthcare Education to Zhongxi Healthcare Education at a nominal purchase price, in the event Zhongxi Healthcare Education exercises its exclusive option to acquire any or all of the equity interests in Champion Healthcare Education, (iii) remit to Zhongxi Healthcare Education all considerations they may receive from Zhongxi Healthcare Education’s acquisition of any equity interests in Champion Healthcare Education, without compensation, after paying the corresponding tax and any other required expenses, and (iv) act in the best interest of Zhongxi Healthcare Education. • Agreements that provide the Company effective control over Zhongxi Healthcare Education Exclusive Option Agreement Pursuant to the exclusive option agreement entered into among Zhongxi Healthcare Education, Champion Healthcare Education and its shareholders, Zhongxi Healthcare Education or any third-party designated by it has the right to acquire, in whole or in part, the respective equity interests in Champion Healthcare Education of its shareholders when permitted by applicable PRC laws and regulations. This agreement will remain effective until the entire equity interests in Champion Healthcare Education are transferred to Zhongxi Healthcare Education. Powers of Attorney Pursuant to these powers of attorney, each shareholder of Champion Healthcare Education authorized Zhongxi Healthcare Education or any person it designates to (i) exercise all voting powers that such shareholder enjoys under the laws and the articles of association of Champion Healthcare Education, including the sale, transfer or pledge, in whole or in part, of such shareholder’s equity interests in Champion Healthcare Education; (ii) nominate and appoint, on behalf of such shareholder, the legal representative, directors, supervisors, general manager, and other senior management of Champion Healthcare Education; (iii) execute the share transfer agreement as contemplated by the exclusive option agreement described above, and perform the equity pledge agreement and the exclusive option agreement described above; and (iv) authorize any third party to carry out any of the above actions. In addition, the shareholders undertook to refrain from exercising any of the abovementioned rights. These contractual arrangements allow the Group to effectively control Champion Healthcare Education and to derive substantially all of the economic benefits from them. Accordingly, the Group treats Champion Healthcare Education as a VIE and because the Group is the primary beneficiary of Champion Healthcare Education, the Group has consolidated the financial results of Champion Healthcare Education. To comply with those foreign ownership restrictions, the Company plans to operate substantially all of its healthcare education services through its VIE, Zhongxi Healthcare Education in the PRC. The VIE plans to hold leases and other assets necessary to provide healthcare education services and generate all of the Company’s revenues related to healthcare education, but have not yet actively engaged in business as of September 30, 2016. • Risks in relation to VIE structure The Company believes that the contractual arrangements with Beijing Champion and its shareholders, and Champion Healthcare Education 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 VIEs 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 VIEs and their subsidiaries. The Company’s ability to control Beijing Champion and Champion Healthcare Education also depends on the powers of attorney that enable Champion Technology and Zhongxi Healthcare Education to vote on all matters requiring shareholder approval for Beijing Champion and Champion Healthcare Education, respectively. 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 and Champion Healthcare Education 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 and Champion Healthcare Education. Their interests as beneficial owners of Beijing Champion and Champion Healthcare Education 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 and Champion Healthcare Education, on one hand, and as beneficial owners of the Company, on the other hand. The Company believes the shareholders of Beijing Champion and Champion Healthcare Education 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 and Champion Healthcare Education 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 VIEs and their subsidiaries. For the years ended September 30, 2015 and 2016, the VIEs and their subsidiaries accounted for an aggregate of 74% and 37%, respectively, of the Group’s consolidated total assets, and 75% and 71%, respectively of the Group’s consolidated total liabilities. The assets not associated with the VIEs and their subsidiaries in these years primarily consisted of cash held by China Distance Education Holdings Limited. The following financial information of the Company’s VIEs and VIEs’ subsidiaries as of September 30, 2015 and 2016 and for each of the three years in the period ended September 30, 2016 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIEs and VIEs’ subsidiaries: As of September 30, 2015 2016 US$ US$ Cash and cash equivalents 83,069 26,600 Prepayment and other current assets 4,387 4,991 Total current assets 110,268 132,450 Total assets 128,067 150,563 Deferred revenue 29,540 35,437 Total current liabilities 62,388 65,931 Total liabilities 62,388 65,931 Total equity 65,679 84,632 For the years ended September 30, 2014 2015 2016 US$ US$ US$ Revenues 96,990 108,111 109,947 Net income 31,986 36,760 40,840 Net cash provided by operating activities 36,326 26,988 27,310 Net cash used in investing activities (850 ) (2,140 ) (3,938 ) Effects of exchange rate changes (65 ) (2,797 ) (2,791 ) There are no consolidated VIEs’ assets that are collateral for the VIEs’ obligations and which can only be used to settle the VIEs’ obligations. No creditor (or beneficial interest holders) of the VIEs 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 VIEs. However, if the VIEs 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 VIEs through loans to the shareholders of the VIEs or entrustment loans to the VIEs. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
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 VIEs, income tax, impairment of goodwill and long-term assets, share-based compensation expenses and purchase price allocation for business acquisition. 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 VIEs and VIEs’ subsidiaries. All profits, transactions and balances among the Company, its subsidiaries, its VIEs and VIEs’ 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$”). The Company’s PRC subsidiaries, VIEs and VIEs’ subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”). The Company uses the US$ 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. Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Where the consideration in an acquisition includes contingent consideration and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability, it is subsequently carried at fair value with changes in fair value reflected in earnings. As of September 30, 2016, there was no contingent consideration outstanding. 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, 2016 mainly represented cash pledged as security of bank borrowing. Short-term investments Short-term investments consist mostly of held-to-maturity held-to-maturity available-for-sale The Group reviews its short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the carrying amount, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statement of operation. 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. Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposits, restricted cash, accounts receivable, amount due from a related party, short-term and long-term investments, bank borrowing and accounts payable. Available-for-sale held-to-maturity 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 35~50 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 For the years ended September 30, 2015 and 2016, the Group performed its annual impairment test using a two-step 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 5~7 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. Long-term investments The Group’s long-term investments consist of cost method investment, equity method investment, and available-for-sale (a) Cost method investment For an investee company over which the Group does not have significant influence and a controlling interest, the Group carries the investment at cost and recognizes income for any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investment for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Group did not record any impairment loss on its cost method investment during the years ended September 30, 2014, 2015 and 2016. (b) Equity method investment For an investee company over which the Group has the ability to exercise significant influence, but does not have a controlling interest, the Group accounted for those using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group did not record impairment losses on its equity method investment during the years ended September 30, 2014, 2015 and 2016. (c) Available-for-sale For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale held-to-maturity Available-for-sale The Group reviews its investments for OTTI based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group did not record impairment losses on its available-for-sale 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 The on-line non-refundable pre-agreed For on-line pre-agreed 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 on-line on-line on-line 7-day 7-day 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 on-line 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, 2014, 2015 and 2016, the Group recognized revenues before business tax and related surcharges in connection with expired study cards amounting to US$114, US$101, and US$167, respectively. The on-line 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 on-line Other revenues Other revenues include sales of software, sales of offline professional training, courseware production services, platform production services, and others. Revenues from sales of software, which are self-developed learning simulation packaged software, are recognized when the software are delivered and accepted by the customers. The Company has no significant remaining obligation with respect to the software, except for warranty related obligations, which the related costs are estimated upon the acceptance of the customers. 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 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 are required to pay VAT instead of business tax. 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 were rather subject to 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 the 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 until December 31, 2017. As a result, the Group registered a tax exemption application at the 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. Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic Cost of sales Cost of services and others are mainly composed of salaries and related expenses for tutors, course and content development, website maintenance and information technology technicians and other employees, fees paid to the course lecturers, depreciation and amortization expenses, server management and bandwidth leasing fees paid to third-party providers, rental and related expenses, and other miscellaneous expenses. 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. Operating leases Leases where substantially all the rewards and risk of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life. Advertising expenditure Advertising expenditure is expensed when incurred and is included in “selling expenses” in the consolidated statements of operations. Advertising expenses were US$6,464, US$10,377 and US$11,356, for the years ended September 30, 2014, 2015 and 2016, 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$703, US$718 and US$763, for the years ended September 30, 2014, 2015 and 2016, 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 more-likely-than-not 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 Share-based compensation with non-employee non-employee’s 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 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$105,865 and US$50,021, which were denominated in RMB, at September 30, 2015 and 2016, respectively, representing 89.8% and 93.2% of the cash and cash equivalents at September 30, 2015 and 2016, 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, short-term investments, accounts receivable and prepayment and other current assets. As of September 30, 2016, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments 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, 2016. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 13.1% and 4.3% of the Group’s carrying amount of accounts receivable as of September 30, 2015 and September 30, 2016 respectively. Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued, Accounting Standards Update (“ASU”) 2014-09, 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, Under the amendments, all reporting entities are within the scope of Subtopic 810-10, In September 2015, the FASB issued a new pronouncement ASU 2015-16, In November, 2015, the FASB issued a new pronouncement which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. This ASU may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. In January 2016, the FASB issued a new pronouncement ASU 2016-01 not-for-profit The new guidance makes targeted improvements to existing U.S. GAAP by: • Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; • Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; • Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; • Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, right-of-use In March 2016, the FASB issued ASU 2016-08, In March 2016, the FASB issued ASU 2016-09, In April 2016, the FASB issued a new pronouncement ASU 2016-10, 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this update do not change the core principle of the guidance in Topic 606. Rather, the amendments clarify certain aspects related to identifying the performance obligation in the contract and the licensing implementation guidance while retaining the related principles. The Group is in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In May, 2016, the FASB issued a new pronouncement ASU 2016-12 2014-09, • Collectability – ASU 2016-12 • Presentation of sales tax and other similar taxes |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 12 Months Ended |
Sep. 30, 2016 | |
BUSINESS ACQUISITION | 3. BUSINESS ACQUISITION Acquisition of Xiamen NetinNet Software Co., Ltd. and its subsidiaries (“NetinNet”) In an effort to complement the Group’s suite of learning solutions for its growing college cooperation program, and enable it to offer comprehensive simulation-based learning opportunities to college students to master critical accounting skills, on May 3, 2016, the Group acquired an 80% equity interest in NetinNet for a total consideration of RMB212 million (US$32,666) in cash, which was fully paid as of September 30, 2016. This transaction was considered a business acquisition and therefore was recorded using the acquisition method of accounting. The acquired assets and liabilities were recorded at their fair values at the date of acquisition, resulting in a goodwill balance of US$22,921. The management performed a purchase price allocation with the assistance from an independent appraiser, as of the date of acquisition: US$ Amortization Cash 2,783 Other current assets 2,236 Property, plant and equipment 1,516 40 years Intangible assets Trademark 1,649 10 years Copyright 9,507 6-7 years Software 178 10 years Others 524 7 years Goodwill 22,921 Other current liabilities (197 ) Deferred tax liabilities (1,918 ) Noncontrolling interest (6,533 ) Total 32,666 The fair value of noncontrolling interest was derived by using discounted cash flow valuation methodologies. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. Goodwill, which is not tax deductible, is primarily attributable to the synergies expected to be achieved from the acquisition. The results of operations attributable to NetinNet are included in our consolidated statement of operations beginning on May 3, 2016, which included net revenue of US$3,036 and pre-tax The following summary of unaudited pro forma result of operations for the year ended September 30, 2016 was presented with the assumption that the acquisition during the year ended September 30, 2016 occurred as of October 1, 2015. These pro forma results do not purport to be indicative of the results of operations which would have resulted had the significant acquisitions occurred as of October 1, 2015, nor are they indicative of future operating results. Years ended September 30, 2015 2016 US$ US$ Pro forma net revenue 10,410 9,618 Pro forma net income attributable to China Distance Education Ltd. 2,546 2,263 Pro forma net income per ordinary share-basic 0.19 0.21 Pro forma net income per ordinary share-diluted 0.19 0.21 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2016 | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS Short-term investments consist of various fixed-income financial products purchased from banks in China and are classified as held-to-maturity available-for-sale While these fixed-income financial products are not publicly traded, the Company estimated that their fair value approximated their amortized costs considering their short-term maturities and high credit quality. No OTTI loss was recognized for the year ended September 30 2016. Short-term investments consisted of the following: As of September 30, 2015 2016 US$ US$ Available-for-sale — 150 Held-to-maturity — 1,128 — 1,278 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2016 | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of September 30, 2015 2016 US$ US$ Accounts receivable 2,958 6,115 Less: allowance for doubtful accounts (158 ) (661 ) Accounts receivable, net 2,800 5,454 Movement of allowance for doubtful accounts was as follows: As of September 30, 2015 2016 US$ US$ Balance at beginning of the year 1,250 158 Increase (reversal) of the allowance for doubtful accounts (1,078 ) 510 Foreign currency adjustment (14 ) (7 ) Balance at end of the year 158 661 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2016 | |
INVENTORIES | 6. INVENTORIES Inventories consisted of the following: As of September 30, 2015 2016 US$ US$ Books and other goods 1,373 781 Paper and other raw materials 173 316 Less: inventory provisions for slow-moving and obsolescence (675 ) (126 ) 871 971 Inventories provision were US$527, US$58 and US$78 for the years ended September 30, 2014, 2015 and 2016, respectively. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
PREPAYMENT AND OTHER CURRENT ASSETS | 7. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets consisted of the following: As of September 30, Notes 2015 2016 US$ US$ Prepaid expenses 2,929 3,268 Advance to suppliers (1 ) 1,111 1,054 Staff advances (2 ) 387 735 Funds receivable (3 ) 244 156 Interest receivable 163 132 Others 19 548 Prepayment and other current assets, net 4,853 5,893 (1) Advance to 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 (2) Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. (3) 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, 2016 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of September 30, 2015 2016 US$ US$ Buildings 5,826 7,254 Electronic and office equipment 12,207 14,133 Leasehold improvement and building improvement 1,872 1,691 Motor vehicles 1,616 1,827 Total 21,521 24,905 Less: Accumulated depreciation (8,605 ) (10,997 ) 12,916 13,908 Depreciation expenses were US$1,808, US$2,034 and US$2,533, for the years ended September 30, 2014, 2015 and 2016, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Sep. 30, 2016 | |
GOODWILL | 9. GOODWILL Goodwill is comprised of the following: Years ended September 30 2015 2016 Online Start-up Total Online Start-up Software Total US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,863 1,826 7,689 5,662 1,767 — 7,429 Acquisition for the year — — — — — 22,921 22,921 Exchange difference (201 ) (59 ) (260 ) (266 ) (79 ) (613 ) (958 ) Ending balance 5,662 1,767 7,429 5,396 1,688 22,308 29,392 Accumulated impairment loss — — — — — — — Goodwill, net 5,662 1,767 7,429 5,396 1,688 22,308 29,392 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 VIEs and VIEs’ subsidiaries of the Group except for Zhengbao Yucai, Xiamen NetinNet and their subsidiaries. The goodwill arising from the acquisitions of the entities under this reporting unit is fully allocated to this reporting unit. Start-up start-up Software sales service - This reporting unit provides learning simulation packaged software to its customers located in the PRC. It includes Xiamen NetinNet and its subsidiaries, NetinNet Education and NetinNet Finance. The goodwill arising from the acquisition of NetinNet 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 for the years ended September 30, 2014, 2015 and 2016. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2016 | |
OTHER INTANGIBLE ASSETS, NET | 10. OTHER INTANGIBLE ASSETS, NET The balance of other intangible assets consisted of the following: As of September 30, 2015 2016 US$ US$ Computer software 3,480 4,222 Trademarks and domain names 1,449 3,018 Courseware 470 448 Business contracts 511 487 Copyrights 639 10,372 Platform 209 199 Total intangible assets 6,758 18,746 Less: Accumulated amortization Computer software (2,807 ) (3,532 ) Trademarks and domain names (1,045 ) (1,186 ) Courseware (470 ) (448 ) Business contracts (511 ) (487 ) Copyrights (638 ) (1,219 ) Platform (209 ) (199 ) Accumulated amortization (5,680 ) (7,071 ) Intangible assets, net 1,078 11,675 Amortization expenses were US$592, US$437 and US$1,116, for the years ended September 30, 2014, 2015 and 2016, respectively. The estimated amortization expenses for the above other intangible assets for each of the following fiscal years are as follows: Amortization US$ 2017 1,975 2018 1,880 2019 1,796 2020 1,720 2021 1,689 2022 and thereafter 2,615 11,675 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2016 | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of September 30, 2015 2016 US$ US$ Cost method investment: Amdon Consulting Pte Ltd. (“Amdon”) (a) — 658 Equity method investment: Mayi White-Collar Investment Management Co., Ltd. (“Mayi Investment Management”) (b) — 1,784 Available-for-sale Beijing Niuke Technology Co., Ltd. (“Niuke Technology”) (c) — 637 Total — 3,079 (a) In May 2016, the Group invested Singapore Dollar (“S$”) 0.9 million (US$658) in preferred shares representing a 8.18% interest in Amdon, a Singapore based e-learning (b) In November 2015, the Group invested RMB12.5 million (US$1,875) cash in exchange for a 12.5% equity interest in Mayi Investment Management, a person-to-person person-to-business (c) In September 2016, the Group invested RMB4.25 million (US$637) in exchange for a 8.5% equity interest of Niuke Technology, an online professional platform dedicated to the learning and growth of programmers. The investment was classified as available-for-sale |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2016 | |
FAIR VALUE MEASUREMENT | 12. FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measured cash and cash equivalents at fair value on a recurring basis. Cash and cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. As of September 30, 2016, available-for-sale Available-for-sale Year ended September 30, 2016 Fair value at Quoted prices in Significant Significant September 30, 2016 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 53,677 53,677 — — Short-term investments: Available-for-sale 150 — 150 — Long-term investments: Available-for-sale 637 — 637 — Total assets measured at fair value 54,464 53,677 787 — Redeemable preferred shares do not have a quoted market rate and for those, the Company measured their fair value based on recent transactions or based on the market approach when no recent transactions are available. Recent transactions include the purchase price agreed by an independent third party for an investment with similar terms or a recent transaction agreed by the Company and the investee and has been classified as level 2 measurement. The fair value of the short term borrowing was classified as level 2 as set out in Note 15. Term deposits with original maturity over three months and restricted cash approximated fair value and represented a level 1 measurement. Cost method investment and held-to-maturity Measured and disclosed fair value on a nonrecurring basis The Group measures the goodwill and acquired intangible assets at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measures the purchase price allocation at fair value on a nonrecurring basis as of the acquisition dates. The Group measured acquired intangible assets using income approach - discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment loss related to goodwill and acquired intangible assets for the years ended September 30, 2014, 2015 and 2016. |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
OTHER NON-CURRENT ASSETS | 13. OTHER NON-CURRENT Other non-current As of September 30, 2015 2016 US$ US$ Long-term prepaid expenses (1 ) 2,135 1,779 Rental deposits (2 ) 240 349 Deposit of sole distributor agreement (3 ) — 1,350 Prepaid investment (4 ) — 450 2,375 3,928 (1) Long-term prepaid expenses represent golf club membership fees. The amortization of the long-term prepaid expenses was made within a ten-year (2) Rental deposits represent office rental deposits for the Group’s daily operations. These deposits are classified as non-current (3) Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract for the cooperation with a software developer, classified as non-current (4) Prepaid investment represents a deposit of an investment, classified as non-current |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Sep. 30, 2016 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 14. ACCRUED EXPENSES AND OTHER LIABILITIES The components of accrued expenses and other liabilities are as follows: As of September 30, 2015 2016 US$ US$ Tuition fee payables to government agencies 13,084 16,048 Salary and welfare payable 4,555 5,394 Accrued expenses 3,349 3,841 Remuneration payable to lecturers 2,380 2,203 Uncertain income tax liabilities (Note 18) 171 163 Payables to employees in connection with options exercise 7 6 Other payable 2,447 2,909 25,993 30,564 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, 2016 | |
BANK BORROWING | 15. 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 The facility was secured by a term deposit of US$15,542 provided by Champion Technology, which was extended to July 23, 2017 and recorded as “restricted cash” on balance sheet as of September 30, 2016. The fair value of the bank borrowing was US$16,389 and US$15,503 as of September 30, 2015 and 2016. 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 based on the 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, 2016 | |
ORDINARY SHARES | 16. 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 On March 11, 2014, the Company completed a follow-on follow-on |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
RESTRICTED NET ASSETS | 17. 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 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 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 paid-in |
INCOME TAX
INCOME TAX | 12 Months Ended |
Sep. 30, 2016 | |
INCOME TAX | 18. 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, 2015 and 2016. Therefore there is no income that is subject to the U.S. federal income taxes and state income taxes. Hong Kong CDEL Hong Kong, Pencil and China Healthcare Education 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. The newly acquired business NetinNet obtained HNTE qualification and was entitled to preferential income tax rate of 15% in year 2016. Nanjing Training School was qualified as “small-scaled minimal profit enterprise” under the EIT Law and was entitled to preferential income tax rate of 20% in year 2016. 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 PRC-resident 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$1,729 and US$2,210 as of September 30, 2015 and 2016, respectively, on the undistributed earnings from its investment in the PRC entities generated after January 1, 2008. The related income tax expenses were US$371, US$453 and US$481 for the years ended September 30, 2014, 2015 and 2016, 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 2010 to 2015 remain subject to examination by the tax authorities and US$369 was reversed for the unpaid tax liability that was accrued before 2010 tax year. Income before income taxes consisted of: Years ended September 30, 2014 2015 2016 US$ US$ US$ Non - PRC (1,757 ) (2,381 ) (1,929 ) PRC 29,218 32,828 34,581 27,461 30,447 32,652 The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: Years ended September 30, 2014 2015 2016 US$ US$ US$ Current tax expense 3,988 4,798 5,799 Deferred tax expense 64 1,076 351 4,052 5,874 6,150 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations is as follows: Years ended September 30, 2014 2015 2016 US$ US$ US$ Income before taxes 27,461 30,447 32,652 Income tax expense computed at applicable tax rates of 25% 6,865 7,612 8,162 Effect of different tax rates in different jurisdictions 357 614 413 Non-deductible 94 120 670 Effect of tax holidays (2,888 ) (3,001 ) (3,464 ) Effect of valuation allowances 33 59 164 Effect of tax rate changes — — — Withholding tax on undistributed earnings 373 507 574 Income tax reversal (782 ) (37 ) (369 ) 4,052 5,874 6,150 Effective income tax rate 14.76 % 19.29 % 18.83 % The aggregate amount and per share effect of the tax holidays are as follows: Years ended September 30, 2014 2015 2016 US$ US$ US$ The aggregate amount of tax holidays 2,888 3,001 3,464 The aggregate effect on basic and diluted net income per share: - Basic 0.02 0.02 0.03 - Diluted 0.02 0.02 0.03 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, 2015 2016 US$ US$ Current deferred tax assets Payroll payable 679 814 Accrued expenses 604 621 Allowance for doubtful accounts 247 185 Net operating loss carry-forwards 40 76 Total current deferred tax assets 1,570 1,696 Less: valuation allowance (62 ) (20 ) Current deferred tax assets, net 1,508 1,676 Non-current Intangible assets 13 8 Property, plant and equipment 132 123 Net operating loss carry-forwards 346 489 Total non-current 491 620 Less: valuation allowance (337 ) (484 ) Non-current 154 136 Non-current Intangible assets 15 1,757 Withholding tax on undistributed earnings 1,729 2,210 Total non-current 1,744 3,967 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$171 and US$163 as of September 30, 2014, 2015 and 2016, 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, 2014 177 Foreign currency adjustment (6 ) Balance - September 30, 2015 171 Foreign currency adjustment (8 ) Balance - September 30, 2016 163 The Group does not anticipate any significant change in unrecognized tax benefits within 12 months from September 30, 2016. 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 |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Sep. 30, 2016 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 19. 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$5,331, US$6,432 and US$7,113 for the years ended September 30, 2014, 2015 and 2016, 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$3 and US$3 for the years ended September 30, 2014, 2015 and 2016, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2016 | |
COMMITMENTS AND CONTINGENCIES | 20. COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable one-year US$ Years ending September 30, 2017 5,562 2018 2,057 2019 466 2020 209 2021 6 8,300 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, 2014, 2015 and 2016, total rental expenses for all operating leases amounted to US$5,786, US$6,955 and US$6,857, 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 15, on June 24, 2016, CDEL Cayman entered into a loan agreement for a RMB103.6 million (US$15,542) term loan facility. The facility was secured by a term deposit of RMB103.6 million provided by Champion Technology, which was recorded as “restricted cash” on the consolidated balance sheet as of September 30, 2016. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Sep. 30, 2016 | |
NONCONTROLLING INTERESTS | 21. NONCONTROLLING INTERESTS Noncontrolling interests represent the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The accompanying consolidated financial statements include all assets, liabilities, revenues and expenses at their consolidated amounts, which include the amounts attributable to the Company and the noncontrolling interest. The Company recognizes as a separate component of equity and earnings on the portion of income or loss attributable to noncontrolling interests based on the portion of the entity not owned by the Company. The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2014, 2015 and 2016. Zhengbao NetinNet Total US$ US$ US$ Balance as of September 30, 2013, 2014 and 2015 — — — Capital injection from noncontrolling interest shareholders 4,824 — 4,824 Noncontrolling interest shareholders resulting from the acquisition of NetinNet — 6,533 6,533 Foreign currency translation adjustment attributed to noncontrolling interest shareholders (69 ) (173 ) (242 ) Gain (loss) attributed to noncontrolling interest shareholders 226 (105 ) 121 Balance as of September 30, 2016 4,981 6,255 11,236 In January 2016, the Group sold a 39.94% ownership of Zhengbao Yucai to a limited partnership entity, Beijing Champion Tongxin Management Consulting LLP (“Tongxin”), for a cash consideration of US$4,824. Mr Zhengdong Zhu, holds 53.11% interest of the partnership and serves as a co-general partner. All the partners in Tongxin are employees of the Group. The entire cash consideration was fully paid by the investors as of September 30, 2016. As the Group retained control over Zhengbao Yucai subsequent to the above transactions, the disposal was accounted as an equity transaction in the Group’s consolidated financial statements. Subsequent to the transaction, the Group’s interest over Zhengbao Yucai was diluted to 60.06% as of September 30, 2016. In May 2016, the Group acquired an 80% of equity interest in NetinNet. The noncontrolling interest of 20% equity interest over NetinNet has been included in the consolidated financial statements as of September 30, 2016. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2016 | |
SEGMENT REPORTING | 22. SEGMENT REPORTING The Group’s chief operating decision maker has been identified as the Chief Executive Officer who reviews U.S. GAAP financial information of its operating segments when making decisions about allocating resources and assessing the performance of the Group. During the year ended September 30, 2015, the Group operated and managed its business as a single reporting segment which included the provision of online and offline education services and selling of related products. During the year ended September 30, 2016, the Group determined that its start-up start-up The Group primarily operates in the PRC and substantially all of the Group’s long-lived assets are located in the PRC. The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: Year ended September 30, 2016 2014 2015 2016 US$ US$ US$ Net revenues 97,196 108,177 117,548 Online education services 94,458 104,487 110,137 Business start-up 2,738 3,690 4,375 Sale of learning simulation software — — 3,036 Operating costs and expenses: Cost of sales (39,803 ) (44,343 ) (48,334 ) Online education services (38,389 ) (42,993 ) (44,473 ) Business start-up (1,414 ) (1,350 ) (1,915 ) Sale of learning simulation software — — (1,946 ) Selling and marketing (21,445 ) (24,186 ) (24,517 ) Online education services (20,809 ) (23,589 ) (22,556 ) Business start-up (636 ) (597 ) (688 ) Sale of learning simulation software — — (1,273 ) General and administrative (8,689 ) (9,986 ) (13,525 ) Online education services (8,547 ) (9,813 ) (12,049 ) Business start-up (142 ) (173 ) (776 ) Sale of learning simulation software — — (700 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Total operating costs and expenses (72,893 ) (81,740 ) (89,629 ) Online education services (67,745 ) (76,395 ) (79,078 ) Business start-up (2,192 ) (2,120 ) (3,379 ) Sale of learning simulation software — — (3,919 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Other operating income 253 224 806 Online education services 253 224 570 Business start-up — — 2 Sale of learning simulation software — — 234 Operating income (loss) 24,556 26,661 28,725 Online education services 26,966 28,316 31,629 Business start-up 546 1,570 998 Sale of learning simulation software — — (649 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Segment assets 171,629 174,120 148,920 Online education services 169,015 166,250 93,609 Business start-up 2,614 7,870 13,262 Sale of learning simulation software — — 42,049 Total assets 171,629 174,120 148,920 Amortization and depreciation 2,401 2,471 3,639 Online education services 2,105 2,388 2,792 Business start-up 296 83 60 Sale of learning simulation software — — 787 Loss from equity method investment — — (91 ) Online education services — — (91 ) Business start-up — — — Sale of learning simulation software — — — |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Sep. 30, 2016 | |
NET INCOME PER SHARE | 23. 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, 2014 2015 2016 US$ US$ US$ Numerator: Net income 23,409 24,573 26,290 - allocated to ordinary share - basic 23,392 24,485 26,184 - allocated to nonvested restricted share - basic 17 88 106 Denominator: Weighted average number of ordinary shares outstanding 139,613,967 142,720,838 136,497,929 Weighted average number of nonvested restricted share 102,754 512,833 555,489 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 780,483 534,319 1,412,526 Weighted average ordinary shares outstanding used in computing diluted net income per share 140,497,204 143,767,990 138,465,944 Basic net income per share 0.17 0.17 0.19 Basic net income per nonvested restricted share 0.17 0.17 0.19 Diluted net income per share 0.17 0.17 0.19 Diluted net income per nonvested restricted share 0.17 0.17 0.19 |
SHARE INCENTIVE PLAN
SHARE INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2016 | |
SHARE INCENTIVE PLAN | 24. 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 10-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$3.74. These options shall vest subject to a four-year vesting schedule with 25% vesting in each year. A summary of option activity as of September 30, 2014, 2015 and 2016, and changes during the years ended September 30, 2014, 2015 and 2016 are presented below: Share option granted to employees and non-executive Number of Weighted- Weighted - Aggregated Outstanding, September 30, 2013 1,579,732 US$ 0.50 6.37 3,389 Exercised (1,095,732 ) US$ 0.45 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 — Exercised (456,000 ) US$ 3.54 Forfeited (24,000 ) US$ 3.49 Outstanding, September 30, 2016 2,083,600 US$ 2.86 7.55 765 Expected to vest, September 30, 2016 1,698,000 US$ 3.32 8.14 Exercisable at September 30, 2016 385,600 US$ 0.86 4.95 914 A summary of the activities of the share option granted to non-employees Share option granted to non-employees Number Weighted- Weighted- Aggregated Outstanding, September 30, 2013 128,200 US$ 0.50 4.55 275 Exercised — 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 Exercised (68,300 ) — Outstanding, September 30, 2016 57,000 — 1.55 184 Exercisable at September 30, 2016 57,000 — 1.55 184 On November 11, 2015, the Company declared a cash dividend of US$0.225 per ordinary share on its outstanding shares to shareholders as of January 6, 2016. According to the terms of the Prior and New Plan, the exercise price was duly reduced by US$0.225 for all of the outstanding options as of January 6, 2016. The change in exercise price incurred in the year ended September 30, 2016, and therefore was not reflected in the weighted-average exercise price as of September 30, 2015. The total intrinsic value of options exercised during the years ended September 30, 2014, 2015 and 2016 were US$3,906, US$317, and US$372, respectively. As of September 30, 2016, the unrecognized share-based compensation cost related to share options amounted to approximately US$1,941. This compensation cost is expected to be recognized over a weighted-average vesting period of 2.13 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, 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 US$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 US$2,000, to be recognized ratably over the requisite service period of four years. On December 3, 2015, 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$3.8125, which was determined based on the closing price of the Company’s ADSs on NYSE on December 3, 2015. This grant resulted in a total share-based compensation of US$477, which was recognized ratably over the requisite service period of one year. A summary of the nonvested restricted shares activities for the years ended September 30, 2014, 2015 and 2016 is as follows: Number of Weight average Aggregated US$ Nonvested restricted shares outstanding at September 30, 2013 125,000 1.22 330 Granted 125,000 4.58 Vested (125,000 ) 1.22 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 Granted 125,000 3.81 Vested (328,389 ) 4.01 Nonvested restricted shares outstanding at September 30, 2016 463,983 3.72 1,499 Nonvested restricted shares expected to vest at September 30, 2016 463,983 3.72 1,499 The total fair value of nonvested restricted shares vested during the years ended September 30, 2014, 2015 and 2016 were US$153, US$573 and US$1,316, respectively. The Company recorded share-based compensation expenses of US$503, US$921 and US$992 for the years ended September 30, 2014, 2015 and 2016, respectively. As of September 30, 2016, there was US$1,225 of share-based compensation related to nonvested shares that is expected to be recognized over a weighted average period of 2.2 years. Share-based compensation expense Total share-based compensation expense of share-based awards granted to employees, non-employees non-executive As of September 30, 2014 2015 2016 US$ US$ US$ Cost of sales — 143 162 General and administrative expenses 503 1,566 1,769 Selling expenses — 74 84 503 1,783 2,015 |
CASH DIVIDEND
CASH DIVIDEND | 12 Months Ended |
Sep. 30, 2016 | |
CASH DIVIDEND | 25. CASH DIVIDEND 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 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 On November 11, 2015, the Company approved and declared a cash dividend of US$0.225 per ordinary share on its total 140,219,033 outstanding shares as of the close of trading on January 6, 2016, resulting in payments totaling US$31,138 to shareholders. Such dividend was recorded as a reduction against retained earnings to the extent of the balance as of November 11, 2015 retained by the Company’s wholly owned subsidiaries in the PRC and then as a reduction against additional paid-in |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2016 | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS In October 2016, the Group incorporated Beijing Champion International Education Technology Co., Ltd., or Champion Int’l Education, and plans to introduce international education products and services. The Group believes that the incorporation of this new entity would not result in any substantive impact on its operations. In October 2016, Zhengbao Yucai announced a share issuance plan on China’s New Third Board. Under the plan, Zhengbao Yucai plans to issue no more than 41,880,000 common shares, representing 40.5% of the total outstanding shares of Zhengbao Yucai immediately after the share issuance, to be priced at RMB1.91 per common share. Total fund raised by the share issuance is expected to be no more than RMB80.0 million (US$11,429). The proceeds from this share issuance are expected to be used for working capital and business development, which includes mergers or acquisitions of complementary businesses focused on China’s college market. In November 2016, the Group subscribed for 7.242% equity interest in Nurselink International Limited, or Nurselink Int’l, a company engaged in nurse recruiting and training service, in two rounds at the total consideration of US$911. The first round of the investment was completed in November 2016. On November 29, 2016, the Company approved and declared a special cash dividend of US$0.1125 per ordinary share on its outstanding shares to shareholders of record as of the close of trading on January 6, 2017. Holders of ADS, each representing four ordinary shares of CDEL, are accordingly entitled to the cash dividend of US$0.45 per ADS. The depository, Deutsche Bank Trust Company Americas, will charge a fee of US$0.02 per ADS when the dividends are distributed on or about January 13, 2017. In November 2016, the Group invested S$0.9 million (US$658) for an additional 6.82% equity interest of Amdon (Note 11(a)). Subsequent to this investment, the Group held 15%, in aggregate, equity interest in Amdon. On December 8, 2016, Zhengbao Yucai delivered a revised share issuance plan (“Revised Plan”) to China’s New Third Board. Under the Revised Plan, Zhengbao Yucai plans to issue no more than 41,880,000 common shares, representing 40.5% of the total outstanding shares of Zhengbao Yucai immediately after the share issuance, at a price of RMB1.99 per common share, an increase from RMB1.91 per common share proposed under the prior plan. Total fund raised by the share issuance is expected to be no more than RMB83.3 million (US$11,900), an increase from RMB80.0 million proposed under the prior plan. Pursuant to the Revised Plan, Mr. Zhengdong Zhu, chairman and CEO of CDEL, and Mr. Liankui Hu, an independent director of CDEL, will subscribe 63.8% and 24.6%, respectively, of the total shares to be issued. Immediately following the share issuance, the equity interest of CDEL in Zhengbao Yucai will be reduced from 60.1% to 35.8%, and Mr. Zhu, Mr. Hu, and a partnership in which Mr. Zhu holds a majority of the partnership interests will collectively have a combined equity interest in Zhengbao Yucai of 59.5%. Mr. Zhu, Mr. Hu, and the partnership have entered into an acting-in-concert On December 23, 2016, a loan agreement under the Revolving Term Loan Facility with BEA (Note 15) was terminated and replaced by a new loan agreement, at the amount of $14,900, with BEA and the same maturity date. The loan bears interest rate at approximately 1.997%, subject to adjustment each quarter. And, in connection with the new loan agreement, an additional term deposit of US$1,740 was made. In addition, US$15,000 of the facility was drawn down on December 23, 2016 at approximately 1.997% interest rate, subject to adjustment each quarter, for a term of 12 months. The facility was secured by a term deposit of RMB116.7 million (US$17,500) provided by Champion Technology. In January 2017, the Group entered into a share transfer agreement with certain shareholders of Hangzhou Wanting Technology Co., Ltd., or Hangzhou Wanting, to purchase 10.0% equity interest in Hangzhou Wanting at the consideration of RMB16.0 million (US$2,400). Hangzhou Wanting is a listed company on the New Third Board which offers comprehensive simulation-based learning opportunities to college students to master critical engineering and construction skills. |
Financial Statement Schedule I
Financial Statement Schedule I | 12 Months Ended |
Sep. 30, 2016 | |
Financial Statement Schedule I | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS (U.S. dollars in thousands, except share data and per share data) As of September 30, 2015 2016 US$ US$ ASSETS Current assets Cash and cash equivalents 9,453 1,685 Prepayment and other current assets 280 283 Amount due from subsidiaries 3,889 9,009 Total current assets 13,622 10,977 Non-current Investment in subsidiaries 110,401 132,150 Total non-current 110,401 132,150 Total assets 124,023 143,127 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities 296 258 Amount due to subsidiaries 16,451 82,082 Bank borrowing 16,467 15,551 Total current liabilities 33,214 97,891 Total liabilities 33,214 97,891 Shareholders’ equity Ordinary shares (par value of US$0.0001 per share at September 30, 2015 and 2016; Authorized – 500,000,000 and 500,000,000 shares at September 30, 2015 and 2016; Issued and outstanding –142,406,933 and 131,729,773 shares at September 30, 2015 and 2016, respectively) 14 13 Additional paid-in 55,598 15,697 Accumulated other comprehensive (loss) income 2,735 (3,418 ) Retained earnings 32,462 32,944 Total equity 90,809 45,236 Total liabilities and equity 124,023 143,127 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data and per share data) For the years ended September 30, 2014 2015 2016 US$ US$ US$ Cost of sales — (143 ) (162 ) Selling expenses — (74 ) (84 ) General and administrative expenses (1,378 ) (2,540 ) (2,591 ) Operating loss (1,378 ) (2,757 ) (2,837 ) Equity in income of subsidiaries and variable interest entities 24,627 26,910 27,902 Interest income 160 31 2 Interest expense — (178 ) (1,131 ) Exchange gain — 567 2,354 Net income 23,409 24,573 26,290 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF COMPREHENSIVE INCOME (U.S. dollars in thousands, except share data and per share data) Years ended September 30, 2014 2015 2016 US$ US$ US$ Net income 23,409 24,573 26,290 Other comprehensive (loss) Foreign currency translation adjustment (75 ) (3,485 ) (6,153 ) Total comprehensive income 23,334 21,088 20,137 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 paid-in Accumulated Retained Total US$ US$ US$ US$ US$ 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 16) 6,000,000 — 29,088 — — 29,088 Options exercised 1,095,732 — 491 — — 491 Stock-based compensation expense (Note 24) 125,000 — 503 — — 503 Dividends (Note 25) — — (286 ) — (19,972 ) (20,258 ) Repayment of loan to optionees in connection with 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 (Note 16) (1,137,236 ) — (3,333 ) — — (3,333 ) Options exercised 123,924 — 18 — — 18 Stock-based compensation expense (Note 24) 667,372 — 1,783 — — 1,783 Dividends (Note 25) — — (21,182 ) — (7,017 ) (28,199 ) Repayment of loan to optionees in connection with 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 Net income for the year — — — — 26,290 26,290 Foreign currency translation adjustments — — — (6,153 ) — (6,153 ) Repurchase of ordinary shares (Note 16) (11,326,460 ) (1 ) (21,289 ) — (15,470 ) (36,760 ) Options exercised 524,300 — 1,659 — — 1,659 Stock-based compensation expense (Note 24) 125,000 — 2,015 — — 2,015 Dividends (Note 25) — — (20,800 ) — (10,338 ) (31,138 ) Loan to optionees in connection with exercise of options — — (1,663 ) — — (1,663 ) Repayment of loan to optionees in connection with exercise of options — — 177 — — 177 Balance as of September 30, 2016 131,729,773 13 15,697 (3,418 ) 32,944 45,236 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, 2014 2015 2016 US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net income 23,409 24,573 26,290 Adjustments to reconcile net income to net cash generated from (used in) operating activities: Equity in profit of subsidiaries and variable interest entities (24,627 ) (26,910 ) (27,902 ) Share-based compensation 503 1,783 2,015 (Decrease) increase in accrued expenses and other liabilities (624 ) 111 (29 ) (Increase) in amounts due from subsidiaries (65 ) (1,182 ) (5,120 ) (Increase) decrease in prepayments and other assets (26 ) 24 (3 ) Increase in amounts due to a subsidiary 784 13,319 65,631 Increase in short-term borrowing — 16,467 — Exchange (gain) — — (925 ) Net cash generated from (used in) operating activities (646 ) 28,185 59,957 Repurchase of ordinary shares — (3,333 ) (36,760 ) Proceeds from share options exercised by employees 491 18 1,659 Loan to optionees in connection with exercise of options (510 ) — (1,663 ) Repayment of loan to optionees in connection with exercise of options 1,242 1,042 177 Issuance of new shares 29,088 — — Dividends paid to shareholders (20,258 ) (28,199 ) (31,138 ) Net cash (used in) generated from financing activities 10,053 (30,472 ) (67,725 ) Net (decrease) increase in cash and cash equivalents 9,407 (2,287 ) (7,768 ) Cash and cash equivalents at beginning of the year 2,333 11,740 9,453 Cash and cash equivalents at end of the year 11,740 9,453 1,685 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 VIEs. The condensed financial information is provided since the restricted net assets of the Group’s subsidiaries, VIEs and VIEs’ subsidiaries were over the 25% of the consolidated net assets of the Group as of September 30, 2016. 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, VIEs and VIEs’ 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 VIEs at US$110,401 and US$132,150 at September 30, 2015 and 2016, respectively. The Parent Company’s share of equity in income in subsidiaries and the VIEs recognized in years ended September 30, 2014, 2015 and 2016 was US$24,627, US$26,910 and US$27,902, respectively. |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, revenue recognition, consolidation of VIEs, income tax, impairment of goodwill and long-term assets, share-based compensation expenses and purchase price allocation for business acquisition. Actual results could materially differ from those estimates. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries. All profits, transactions and balances among the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company, DL Education, CDEL Hong Kong, Pencil, China Healthcare Investment and China Healthcare Education’s functional currencies are United States dollars (“US$”). The Company’s PRC subsidiaries, VIEs and VIEs’ 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. |
Business Combinations | Business Combinations Business combinations are recorded using the acquisition method of accounting. The purchase price of the acquisition is allocated to the tangible assets, liabilities, identifiable intangible assets acquired and non-controlling Where the consideration in an acquisition includes contingent consideration and the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability, it is subsequently carried at fair value with changes in fair value reflected in earnings. As of September 30, 2016, there was no contingent consideration outstanding. |
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, 2016 mainly represented cash pledged as security of bank borrowing. |
Short-term investments | Short-term investments Short-term investments consist mostly of held-to-maturity held-to-maturity available-for-sale The Group reviews its short-term investments for other-than-temporary impairment (“OTTI”) based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating the potential impairment of its short-term investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, expected future performance of the investees, the duration and the extent to which the fair value of the investment is less than the carrying amount, and the Group’s intent and ability to hold the investments. OTTI is recognized as a loss in the consolidation statement of operation. |
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. |
Financial instruments | Financial instruments The Group’s financial instruments consist primarily of cash and cash equivalents, term deposits, restricted cash, accounts receivable, amount due from a related party, short-term and long-term investments, bank borrowing and accounts payable. Available-for-sale held-to-maturity |
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 35~50 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 For the years ended September 30, 2015 and 2016, the Group performed its annual impairment test using a two-step |
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 5~7 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. |
Long-term investments | Long-term investments The Group’s long-term investments consist of cost method investment, equity method investment, and available-for-sale (a) Cost method investment For an investee company over which the Group does not have significant influence and a controlling interest, the Group carries the investment at cost and recognizes income for any dividend received from distribution of the investee’s earnings. The Group reviews its cost method investment for impairment whenever an event or circumstance indicates that an OTTI has occurred. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its cost method investment. An impairment charge is recorded if the carrying amount of an investment exceeds its fair value and such excess is determined to be other-than temporary. The Group did not record any impairment loss on its cost method investment during the years ended September 30, 2014, 2015 and 2016. (b) Equity method investment For an investee company over which the Group has the ability to exercise significant influence, but does not have a controlling interest, the Group accounted for those using the equity method. Significant influence is generally considered to exist when the Group has an ownership interest in the voting stock of the investee between 20% and 50%. Other factors, such as representation on the investee’s board of directors, voting rights and the impact of commercial arrangements, are also considered in determining whether the equity method of accounting is appropriate. An impairment charge is recorded if the carrying amount of the investment exceeds its fair value and this condition is determined to be other-than temporary. The Group did not record impairment losses on its equity method investment during the years ended September 30, 2014, 2015 and 2016. (c) Available-for-sale For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale held-to-maturity Available-for-sale The Group reviews its investments for OTTI based on the specific identification method. The Group considers available quantitative and qualitative evidence in evaluating potential impairment of its investments. If the carrying amount of an investment exceeds the investment’s fair value, the Group considers, among other factors, general market conditions, government economic plans, the duration and the extent to which the fair value of the investment is less than the cost, the Group’s intent and ability to hold the investment, and the financial condition and near term prospects of the investees. The Group did not record impairment losses on its available-for-sale |
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 The on-line non-refundable pre-agreed For on-line pre-agreed 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 on-line on-line on-line 7-day 7-day 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 on-line 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, 2014, 2015 and 2016, the Group recognized revenues before business tax and related surcharges in connection with expired study cards amounting to US$114, US$101, and US$167, respectively. The on-line 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 on-line Other revenues Other revenues include sales of software, sales of offline professional training, courseware production services, platform production services, and others. Revenues from sales of software, which are self-developed learning simulation packaged software, are recognized when the software are delivered and accepted by the customers. The Company has no significant remaining obligation with respect to the software, except for warranty related obligations, which the related costs are estimated upon the acceptance of the customers. 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 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 are required to pay VAT instead of business tax. 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 were rather subject to 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 the 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 until December 31, 2017. As a result, the Group registered a tax exemption application at the 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. Since May 2016, in accordance with Cai Shui [2016] No. 68, the non-academic |
Cost of sales | Cost of sales Cost of services and others are mainly composed of salaries and related expenses for tutors, course and content development, website maintenance and information technology technicians and other employees, fees paid to the course lecturers, depreciation and amortization expenses, server management and bandwidth leasing fees paid to third-party providers, rental and related expenses, and other miscellaneous expenses. 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. |
Operating leases | Operating leases Leases where substantially all the rewards and risk of assets remain with the leasing company are accounted for as operating leases. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life. |
Advertising expenditure | Advertising expenditure Advertising expenditure is expensed when incurred and is included in “selling expenses” in the consolidated statements of operations. Advertising expenses were US$6,464, US$10,377 and US$11,356, for the years ended September 30, 2014, 2015 and 2016, 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$703, US$718 and US$763, for the years ended September 30, 2014, 2015 and 2016, 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 more-likely-than-not |
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 Share-based compensation with non-employee non-employee’s 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 |
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$105,865 and US$50,021, which were denominated in RMB, at September 30, 2015 and 2016, respectively, representing 89.8% and 93.2% of the cash and cash equivalents at September 30, 2015 and 2016, 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, short-term investments, accounts receivable and prepayment and other current assets. As of September 30, 2016, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments 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, 2016. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 13.1% and 4.3% of the Group’s carrying amount of accounts receivable as of September 30, 2015 and September 30, 2016 respectively. |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In May 2014, the Financial Accounting Standards Board (“FASB”) issued, Accounting Standards Update (“ASU”) 2014-09, 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, Under the amendments, all reporting entities are within the scope of Subtopic 810-10, In September 2015, the FASB issued a new pronouncement ASU 2015-16, In November, 2015, the FASB issued a new pronouncement which changes how deferred taxes are classified on organizations’ balance sheets. The ASU eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. For public companies, the amendments are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted for all entities as of the beginning of an interim or annual reporting period. This ASU may be applied prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company does not expect the adoption of this guidance will have a significant effect on its consolidated financial statements. In January 2016, the FASB issued a new pronouncement ASU 2016-01 not-for-profit The new guidance makes targeted improvements to existing U.S. GAAP by: • Requiring equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • Requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • Requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; • Eliminating the requirement to disclose the fair value of financial instruments measured at amortized cost for organizations that are not public business entities; • Eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; • Requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk (also referred to as “own credit”) when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance permits early adoption of the own credit provision. Adoption of the amendment must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, except for amendments related to equity instruments that do not have readily determinable fair values which should be applied prospectively. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, right-of-use In March 2016, the FASB issued ASU 2016-08, In March 2016, the FASB issued ASU 2016-09, In April 2016, the FASB issued a new pronouncement ASU 2016-10, 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations in the contract. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The amendments in this update do not change the core principle of the guidance in Topic 606. Rather, the amendments clarify certain aspects related to identifying the performance obligation in the contract and the licensing implementation guidance while retaining the related principles. The Group is in the process of evaluating the impact of adoption of this ASU on its consolidated financial statements. In May, 2016, the FASB issued a new pronouncement ASU 2016-12 2014-09, • Collectability – ASU 2016-12 • Presentation of sales tax and other similar taxes collected from customers – Entities are permitted to present revenue net of sales taxes collected on behalf of governmental authorities (i.e., to exclude from the transaction price sales taxes that meet certain criteria) • Noncash consideration – An entity’s calculation of the transaction price for contracts containing noncash consideration would include the fair value of the noncash consideration to be received as of the contract inception date. Further, subsequent changes in the fair value of noncash consideration after contract inception would be subject to the variable consideration constraint only if the fair value varies for reasons other than its form. • Contract modifications and completed contracts at transition – The ASU establishes a practical expedient for contract modifications at transition and defines completed contracts as those for which all (or substantially all) revenue was recognized under the applicable revenue guidance before the new revenue standard was initially applied. • Transition technical correction – Entities that elect to use the full retrospective transition method to adopt the new revenue standard would no longer be required to disclose the effect of the change in accounting principle on the period of adoption (as is currently required by ASC 250-10-50-1(b)(2)); The effective date and transition of these amendments is the same as the effective date and transition of ASU 2014-09, In August 2016, the FASB issued new pronouncements ASU 2016-15, In November, 2016, the FASB issued a new pronouncement, ASU 2016-18, • An entity should include in its cash and cash-equivalent balances in the statement of cash flows those amounts that are deemed to be restricted cash and restricted cash equivalents. The ASU does not define the terms “restricted cash” and “restricted cash equivalents” but states that an entity should continue to provide appropriate disclosures about its accounting policies pertaining to restricted cash in accordance with other GAAP. The ASU also states that any change in accounting policy will need to be assessed under ASC 250. • A reconciliation between the statement of financial position and the statement of cash flows must be disclosed when the statement of financial position includes more than one line item for cash, cash equivalents, restricted cash, and restricted cash equivalents. • Changes in restricted cash and restricted cash equivalents that result from transfers between cash, cash equivalents, and restricted cash and restricted cash equivalents should not be presented as cash flow activities in the statement of cash flows. • An entity with a material balance of amounts generally described as restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Group is in the process of evaluating the impact of adoption of this pronouncements on its consolidated financial statements. |
ORGANIZATION AND BASIS OF PRE36
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Details of Company's Subsidiaries and Variable Interest Entities | As of September 30, 2016, details of the Company’s subsidiaries, its VIEs and VIEs’ 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% Provision of college cooperation program services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC 60.06% Provision of start-up Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC 60.06% Provision of start-up Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd. (“Zhongxi Healthcare Education”) December 14, 2015 PRC 100% Inactive Xiamen NetinNet Software Co., Ltd. (“Xiamen NetinNet”) August 15, 2005 PRC 80% Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) August 19, 2011 PRC 80% Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance “) April 7, 2005 PRC 80% Provision of learning simulation software production Variable interest entities Beijing Champion Hi-Tech July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Beijing Champion Healthcare Education Technology Co., Ltd. (“Champion Healthcare Education”) May 13, 2015 PRC Nil Inactive Subsidiaries of variable interest entities: Beijing Caikaowang Company Ltd. (“Caikaowang”) November 28, 2007 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 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 Provision of sales of books and reference materials Beijing Champion Tax Management and Advisory Co., Ltd. (“Champion Tax Advisory”) November 27, 2015 PRC Nil Provision of financial and tax advisory |
Financial Information of Company's VIEs and VIEs' Subsidiaries | The following financial information of the Company’s VIEs and VIEs’ subsidiaries as of September 30, 2015 and 2016 and for each of the three years in the period ended September 30, 2016 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIEs and VIEs’ subsidiaries: As of September 30, 2015 2016 US$ US$ Cash and cash equivalents 83,069 26,600 Prepayment and other current assets 4,387 4,991 Total current assets 110,268 132,450 Total assets 128,067 150,563 Deferred revenue 29,540 35,437 Total current liabilities 62,388 65,931 Total liabilities 62,388 65,931 Total equity 65,679 84,632 For the years ended September 30, 2014 2015 2016 US$ US$ US$ Revenues 96,990 108,111 109,947 Net income 31,986 36,760 40,840 Net cash provided by operating activities 36,326 26,988 27,310 Net cash used in investing activities (850 ) (2,140 ) (3,938 ) Effects of exchange rate changes (65 ) (2,797 ) (2,791 ) |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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 35~50 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 5~7 years Platform 3.5 years |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Summary of Purchase Price Allocation | The management performed a purchase price allocation with the assistance from an independent appraiser, as of the date of acquisition: US$ Amortization Cash 2,783 Other current assets 2,236 Property, plant and equipment 1,516 40 years Intangible assets Trademark 1,649 10 years Copyright 9,507 6-7 years Software 178 10 years Others 524 7 years Goodwill 22,921 Other current liabilities (197 ) Deferred tax liabilities (1,918 ) Noncontrolling interest (6,533 ) Total 32,666 |
Summary of Unaudited Pro Forma Result of Operations | These pro forma results do not purport to be indicative of the results of operations which would have resulted had the significant acquisitions occurred as of October 1, 2015, nor are they indicative of future operating results. Years ended September 30, 2015 2016 US$ US$ Pro forma net revenue 10,410 9,618 Pro forma net income attributable to China Distance Education Ltd. 2,546 2,263 Pro forma net income per ordinary share-basic 0.19 0.21 Pro forma net income per ordinary share-diluted 0.19 0.21 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Short-term Investments | Short-term investments consisted of the following: As of September 30, 2015 2016 US$ US$ Available-for-sale — 150 Held-to-maturity — 1,128 — 1,278 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable, Net | Accounts receivable, net consisted of the following: As of September 30, 2015 2016 US$ US$ Accounts receivable 2,958 6,115 Less: allowance for doubtful accounts (158 ) (661 ) Accounts receivable, net 2,800 5,454 |
Movement Of Allowance For Doubtful Accounts | Movement of allowance for doubtful accounts was as follows: As of September 30, 2015 2016 US$ US$ Balance at beginning of the year 1,250 158 Increase (reversal) of the allowance for doubtful accounts (1,078 ) 510 Foreign currency adjustment (14 ) (7 ) Balance at end of the year 158 661 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventories | Inventories consisted of the following: As of September 30, 2015 2016 US$ US$ Books and other goods 1,373 781 Paper and other raw materials 173 316 Less: inventory provisions for slow-moving and obsolescence (675 ) (126 ) 871 971 |
PREPAYMENT AND OTHER CURRENT 42
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Prepayment And Other Current Assets | Prepayment and other current assets consisted of the following: As of September 30, Notes 2015 2016 US$ US$ Prepaid expenses 2,929 3,268 Advance to suppliers (1 ) 1,111 1,054 Staff advances (2 ) 387 735 Funds receivable (3 ) 244 156 Interest receivable 163 132 Others 19 548 Prepayment and other current assets, net 4,853 5,893 (1) Advance to 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 (2) Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. (3) 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 EQUIPMENT43
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant And Equipment | Property, plant and equipment consisted of the following: As of September 30, 2015 2016 US$ US$ Buildings 5,826 7,254 Electronic and office equipment 12,207 14,133 Leasehold improvement and building improvement 1,872 1,691 Motor vehicles 1,616 1,827 Total 21,521 24,905 Less: Accumulated depreciation (8,605 ) (10,997 ) 12,916 13,908 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill | Goodwill is comprised of the following: Years ended September 30 2015 2016 Online Start-up Total Online Start-up Software Total US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,863 1,826 7,689 5,662 1,767 — 7,429 Acquisition for the year — — — — — 22,921 22,921 Exchange difference (201 ) (59 ) (260 ) (266 ) (79 ) (613 ) (958 ) Ending balance 5,662 1,767 7,429 5,396 1,688 22,308 29,392 Accumulated impairment loss — — — — — — — Goodwill, net 5,662 1,767 7,429 5,396 1,688 22,308 29,392 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Composition Of Other Intangible Assets | The balance of other intangible assets consisted of the following: As of September 30, 2015 2016 US$ US$ Computer software 3,480 4,222 Trademarks and domain names 1,449 3,018 Courseware 470 448 Business contracts 511 487 Copyrights 639 10,372 Platform 209 199 Total intangible assets 6,758 18,746 Less: Accumulated amortization Computer software (2,807 ) (3,532 ) Trademarks and domain names (1,045 ) (1,186 ) Courseware (470 ) (448 ) Business contracts (511 ) (487 ) Copyrights (638 ) (1,219 ) Platform (209 ) (199 ) Accumulated amortization (5,680 ) (7,071 ) Intangible assets, net 1,078 11,675 |
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$ 2017 1,975 2018 1,880 2019 1,796 2020 1,720 2021 1,689 2022 and thereafter 2,615 11,675 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Schedule of Long-term Investments | Long-term investments consisted of the following: As of September 30, 2015 2016 US$ US$ Cost method investment: Amdon Consulting Pte Ltd. (“Amdon”) (a) — 658 Equity method investment: Mayi White-Collar Investment Management Co., Ltd. (“Mayi Investment Management”) (b) — 1,784 Available-for-sale Beijing Niuke Technology Co., Ltd. (“Niuke Technology”) (c) — 637 Total — 3,079 (a) In May 2016, the Group invested Singapore Dollar (“S$”) 0.9 million (US$658) in preferred shares representing a 8.18% interest in Amdon, a Singapore based e-learning (b) In November 2015, the Group invested RMB12.5 million (US$1,875) cash in exchange for a 12.5% equity interest in Mayi Investment Management, a person-to-person person-to-business (c) In September 2016, the Group invested RMB4.25 million (US$637) in exchange for a 8.5% equity interest of Niuke Technology, an online professional platform dedicated to the learning and growth of programmers. The investment was classified as available-for-sale |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares Measured and Recorded At Fair Value Recurring Basis | As of September 30, 2016, available-for-sale Available-for-sale Year ended September 30, 2016 Fair value at Quoted prices in Significant Significant September 30, 2016 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 53,677 53,677 — — Short-term investments: Available-for-sale 150 — 150 — Long-term investments: Available-for-sale 637 — 637 — Total assets measured at fair value 54,464 53,677 787 — |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Non-Current Assets | Other non-current As of September 30, 2015 2016 US$ US$ Long-term prepaid expenses (1 ) 2,135 1,779 Rental deposits (2 ) 240 349 Deposit of sole distributor agreement (3 ) — 1,350 Prepaid investment (4 ) — 450 2,375 3,928 (1) Long-term prepaid expenses represent golf club membership fees. The amortization of the long-term prepaid expenses was made within a ten-year (2) Rental deposits represent office rental deposits for the Group’s daily operations. These deposits are classified as non-current (3) Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract for the cooperation with a software developer, classified as non-current (4) Prepaid investment represents a deposit of an investment, classified as non-current |
ACCRUED EXPENSES AND OTHER LI49
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accrued Expenses And Other Liabilities | The components of accrued expenses and other liabilities are as follows: As of September 30, 2015 2016 US$ US$ Tuition fee payables to government agencies 13,084 16,048 Salary and welfare payable 4,555 5,394 Accrued expenses 3,349 3,841 Remuneration payable to lecturers 2,380 2,203 Uncertain income tax liabilities (Note 18) 171 163 Payables to employees in connection with options exercise 7 6 Other payable 2,447 2,909 25,993 30,564 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Before Income Taxes | Income before income taxes consisted of: Years ended September 30, 2014 2015 2016 US$ US$ US$ Non - PRC (1,757 ) (2,381 ) (1,929 ) PRC 29,218 32,828 34,581 27,461 30,447 32,652 |
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, 2014 2015 2016 US$ US$ US$ Current tax expense 3,988 4,798 5,799 Deferred tax expense 64 1,076 351 4,052 5,874 6,150 |
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, 2014 2015 2016 US$ US$ US$ Income before taxes 27,461 30,447 32,652 Income tax expense computed at applicable tax rates of 25% 6,865 7,612 8,162 Effect of different tax rates in different jurisdictions 357 614 413 Non-deductible 94 120 670 Effect of tax holidays (2,888 ) (3,001 ) (3,464 ) Effect of valuation allowances 33 59 164 Effect of tax rate changes — — — Withholding tax on undistributed earnings 373 507 574 Income tax reversal (782 ) (37 ) (369 ) 4,052 5,874 6,150 Effective income tax rate 14.76 % 19.29 % 18.83 % |
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, 2014 2015 2016 US$ US$ US$ The aggregate amount of tax holidays 2,888 3,001 3,464 The aggregate effect on basic and diluted net income per share: - Basic 0.02 0.02 0.03 - Diluted 0.02 0.02 0.03 |
Components of Deferred Taxes | The components of deferred taxes are as follows: As of September 30, 2015 2016 US$ US$ Current deferred tax assets Payroll payable 679 814 Accrued expenses 604 621 Allowance for doubtful accounts 247 185 Net operating loss carry-forwards 40 76 Total current deferred tax assets 1,570 1,696 Less: valuation allowance (62 ) (20 ) Current deferred tax assets, net 1,508 1,676 Non-current Intangible assets 13 8 Property, plant and equipment 132 123 Net operating loss carry-forwards 346 489 Total non-current 491 620 Less: valuation allowance (337 ) (484 ) Non-current 154 136 Non-current Intangible assets 15 1,757 Withholding tax on undistributed earnings 1,729 2,210 Total non-current 1,744 3,967 |
Reconciliation of Accrued Unrecognized Tax Benefits | Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized Balance - September 30, 2014 177 Foreign currency adjustment (6 ) Balance - September 30, 2015 171 Foreign currency adjustment (8 ) Balance - September 30, 2016 163 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Operating Lease Commitments | Future minimum payments under non-cancelable one-year US$ Years ending September 30, 2017 5,562 2018 2,057 2019 466 2020 209 2021 6 8,300 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Summary of Changes in Noncontrolling Interest | The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2014, 2015 and 2016. Zhengbao NetinNet Total US$ US$ US$ Balance as of September 30, 2013, 2014 and 2015 — — — Capital injection from noncontrolling interest shareholders 4,824 — 4,824 Noncontrolling interest shareholders resulting from the acquisition of NetinNet — 6,533 6,533 Foreign currency translation adjustment attributed to noncontrolling interest shareholders (69 ) (173 ) (242 ) Gain (loss) attributed to noncontrolling interest shareholders 226 (105 ) 121 Balance as of September 30, 2016 4,981 6,255 11,236 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Net Revenues, Operating Costs And Expenses, Operating Income, And Total Assets By Segment | The Group’s chief operating decision maker evaluates performance based on each reporting segment’s net revenue, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: Year ended September 30, 2016 2014 2015 2016 US$ US$ US$ Net revenues 97,196 108,177 117,548 Online education services 94,458 104,487 110,137 Business start-up 2,738 3,690 4,375 Sale of learning simulation software — — 3,036 Operating costs and expenses: Cost of sales (39,803 ) (44,343 ) (48,334 ) Online education services (38,389 ) (42,993 ) (44,473 ) Business start-up (1,414 ) (1,350 ) (1,915 ) Sale of learning simulation software — — (1,946 ) Selling and marketing (21,445 ) (24,186 ) (24,517 ) Online education services (20,809 ) (23,589 ) (22,556 ) Business start-up (636 ) (597 ) (688 ) Sale of learning simulation software — — (1,273 ) General and administrative (8,689 ) (9,986 ) (13,525 ) Online education services (8,547 ) (9,813 ) (12,049 ) Business start-up (142 ) (173 ) (776 ) Sale of learning simulation software — — (700 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Total operating costs and expenses (72,893 ) (81,740 ) (89,629 ) Online education services (67,745 ) (76,395 ) (79,078 ) Business start-up (2,192 ) (2,120 ) (3,379 ) Sale of learning simulation software — — (3,919 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Other operating income 253 224 806 Online education services 253 224 570 Business start-up — — 2 Sale of learning simulation software — — 234 Operating income (loss) 24,556 26,661 28,725 Online education services 26,966 28,316 31,629 Business start-up 546 1,570 998 Sale of learning simulation software — — (649 ) Unallocated corporate expenses (2,956 ) (3,225 ) (3,253 ) Segment assets 171,629 174,120 148,920 Online education services 169,015 166,250 93,609 Business start-up 2,614 7,870 13,262 Sale of learning simulation software — — 42,049 Total assets 171,629 174,120 148,920 Amortization and depreciation 2,401 2,471 3,639 Online education services 2,105 2,388 2,792 Business start-up 296 83 60 Sale of learning simulation software — — 787 Loss from equity method investment — — (91 ) Online education services — — (91 ) Business start-up — — — Sale of learning simulation software — — — |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2014 2015 2016 US$ US$ US$ Numerator: Net income 23,409 24,573 26,290 - allocated to ordinary share - basic 23,392 24,485 26,184 - allocated to nonvested restricted share - basic 17 88 106 Denominator: Weighted average number of ordinary shares outstanding 139,613,967 142,720,838 136,497,929 Weighted average number of nonvested restricted share 102,754 512,833 555,489 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 780,483 534,319 1,412,526 Weighted average ordinary shares outstanding used in computing diluted net income per share 140,497,204 143,767,990 138,465,944 Basic net income per share 0.17 0.17 0.19 Basic net income per nonvested restricted share 0.17 0.17 0.19 Diluted net income per share 0.17 0.17 0.19 Diluted net income per nonvested restricted share 0.17 0.17 0.19 |
SHARE INCENTIVE PLAN (Tables)
SHARE INCENTIVE PLAN (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Summary of Option Activity | A summary of option activity as of September 30, 2014, 2015 and 2016, and changes during the years ended September 30, 2014, 2015 and 2016 are presented below: Share option granted to employees and non-executive Number of Weighted- Weighted - Aggregated Outstanding, September 30, 2013 1,579,732 US$ 0.50 6.37 3,389 Exercised (1,095,732 ) US$ 0.45 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 — Exercised (456,000 ) US$ 3.54 Forfeited (24,000 ) US$ 3.49 Outstanding, September 30, 2016 2,083,600 US$ 2.86 7.55 765 Expected to vest, September 30, 2016 1,698,000 US$ 3.32 8.14 Exercisable at September 30, 2016 385,600 US$ 0.86 4.95 914 |
Share Options, NonEmployees | A summary of the activities of the share option granted to non-employees Share option granted to non-employees Number Weighted- Weighted- Aggregated Outstanding, September 30, 2013 128,200 US$ 0.50 4.55 275 Exercised — 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 Exercised (68,300 ) — Outstanding, September 30, 2016 57,000 — 1.55 184 Exercisable at September 30, 2016 57,000 — 1.55 184 |
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 Activities | A summary of the nonvested restricted shares activities for the years ended September 30, 2014, 2015 and 2016 is as follows: Number of Weight average Aggregated US$ Nonvested restricted shares outstanding at September 30, 2013 125,000 1.22 330 Granted 125,000 4.58 Vested (125,000 ) 1.22 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 Granted 125,000 3.81 Vested (328,389 ) 4.01 Nonvested restricted shares outstanding at September 30, 2016 463,983 3.72 1,499 Nonvested restricted shares expected to vest at September 30, 2016 463,983 3.72 1,499 |
Share-Based Compensation Expense of Share-Based Awards Granted | Total share-based compensation expense of share-based awards granted to employees, non-employees non-executive As of September 30, 2014 2015 2016 US$ US$ US$ Cost of sales — 143 162 General and administrative expenses 503 1,566 1,769 Selling expenses — 74 84 503 1,783 2,015 |
Details of Subsidiaries and Var
Details of Subsidiaries and Variable Interest Entities (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
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 | Provision of college cooperation program 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 | 60.06% |
Principal activities | Provision of start-up training services |
Nanjing Champion Vocational 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 | 60.06% |
Principal activities | Provision of start-up training services |
Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd. (Zhongxi Healthcare Education) | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | Dec. 14, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 100.00% |
Principal activities | Inactive |
Xiamen NetinNet Software Co., Ltd. | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | Aug. 15, 2005 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 80.00% |
Principal activities | Provision of learning simulation software production |
Xiamen NetinNet Education Technology Co., Ltd. ("NetinNet Education") | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | Aug. 19, 2011 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 80.00% |
Principal activities | Provision of learning simulation software production |
Xiamen NetinNet Finance Technology Co., Ltd. ("NetinNet Finance") | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | Apr. 7, 2005 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | 80.00% |
Principal activities | Provision of learning simulation software production |
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 Champion Healthcare Education Technology Co., Ltd. (''Champion Healthcare Education'') | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | May 13, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Inactive |
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 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 | Provision of sales of books and reference materials |
Beijing Champion Tax Management and Advisory Co., Ltd., (''Champion Tax Advisory'') | People's Republic of China | |
Subsidiaries And Variable Entities [Line Items] | |
Date of establishment | Nov. 27, 2015 |
Place of establishment | PRC |
Percentage of legal ownership by the Company | |
Principal activities | Provision of financial and tax advisory |
Organization and Basis of Pre57
Organization and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
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 | 37.00% | 74.00% |
Percent of liabilities | 71.00% | 75.00% |
Financial Information of Compan
Financial Information of Company's VIEs and VIEs' Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 53,677 | $ 117,899 | |
Prepayment and other current assets | 5,893 | 4,853 | |
Total current assets | 85,822 | 150,229 | |
Total assets | 148,920 | 174,120 | $ 171,629 |
Total current liabilities | 88,617 | 81,721 | |
Total liabilities | 92,448 | 83,311 | |
Total equity | 45,236 | 90,809 | |
Revenues | 117,548 | 108,177 | 97,196 |
Net income | 26,411 | 24,573 | 23,409 |
Net cash provided by operating activities | 38,969 | 37,779 | 44,093 |
Net cash used in investing activities | (34,023) | (4,311) | (24,180) |
Effects of exchange rate changes | (6,302) | (3,757) | 128 |
Consolidated VIE | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 26,600 | 83,069 | |
Prepayment and other current assets | 4,991 | 4,387 | |
Total current assets | 132,450 | 110,268 | |
Total assets | 150,563 | 128,067 | |
Deferred revenue | 35,437 | 29,540 | |
Total current liabilities | 65,931 | 62,388 | |
Total liabilities | 65,931 | 62,388 | |
Total equity | 84,632 | 65,679 | |
Revenues | 109,947 | 108,111 | 96,990 |
Net income | 40,840 | 36,760 | 31,986 |
Net cash provided by operating activities | 27,310 | 26,988 | 36,326 |
Net cash used in investing activities | (3,938) | (2,140) | (850) |
Effects of exchange rate changes | $ (2,791) | $ (2,797) | $ (65) |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
Building | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 35 years |
Estimated residual value | 5.00% |
Building | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 50 years |
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 |
Significant Accounting Polici60
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Significant Accounting Policies [Line Items] | |||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Advertising expenses | 11,356,000 | 10,377,000 | 6,464,000 |
Shipping and handling costs | 763,000 | 718,000 | 703,000 |
Cash and cash equivalents, denominated in RMB | $ 50,021,000 | $ 105,865,000 | |
Foreign currency risk, cash and cash equivalents, represented amount, percent | 93.20% | 89.80% | |
Minimum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of voting rights of stock | 20.00% | ||
Maximum | |||
Significant Accounting Policies [Line Items] | |||
Percentage of voting rights of stock | 50.00% | ||
Accounts Receivable | Concentration Risk Customer One | |||
Significant Accounting Policies [Line Items] | |||
One customer's accounts receivable, Maximum percentage | 4.30% | 13.10% | |
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 | $ 167,000 | $ 101,000 | $ 114,000 |
Business tax and related surcharges, percent | 6.00% | 3.00% | 3.00% |
Business tax and related surcharges, amount | $ 3,216,000 | $ 2,996,000 | $ 2,699,000 |
Other Intangible Assets Estimat
Other Intangible Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
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 | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Copyrights | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 7 years |
Platform | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years 6 months |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) $ in Thousands, ¥ in Millions | May 03, 2016USD ($) | May 03, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 29,392 | $ 29,392 | $ 7,429 | |||
Net revenue | 117,548 | 108,177 | $ 97,196 | |||
Income before income taxes | 32,652 | $ 30,447 | $ 27,461 | |||
Xiamen NetinNet | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of equity interest acquired | 80.00% | |||||
Total consideration | $ 32,666 | ¥ 212 | ||||
Goodwill | $ 22,921 | 22,921 | $ 22,921 | |||
Net revenue | 3,036 | |||||
Income before income taxes | $ (616) |
Business Acquisition - Summary
Business Acquisition - Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | May 03, 2016 | Sep. 30, 2015 | |
Intangible assets | |||
Goodwill | $ 29,392 | $ 7,429 | |
Trademarks and domain names | Minimum | |||
Intangible assets | |||
Amortization period | 10 years | ||
Trademarks and domain names | Maximum | |||
Intangible assets | |||
Amortization period | 11 years | ||
Copyrights | Minimum | |||
Intangible assets | |||
Amortization period | 5 years | ||
Copyrights | Maximum | |||
Intangible assets | |||
Amortization period | 7 years | ||
Computer Software | Minimum | |||
Intangible assets | |||
Amortization period | 3 years | ||
Computer Software | Maximum | |||
Intangible assets | |||
Amortization period | 5 years | ||
Xiamen NetinNet | |||
Business Acquisition [Line Items] | |||
Cash | $ 2,783 | ||
Other current assets | 2,236 | ||
Property, plant and equipment | $ 1,516 | ||
Amortization period | 40 years | ||
Intangible assets | |||
Goodwill | $ 22,921 | $ 22,921 | |
Other current liabilities | (197) | ||
Deferred tax liabilities | (1,918) | ||
Noncontrolling interest | (6,533) | ||
Total | 32,666 | ||
Xiamen NetinNet | Trademarks and domain names | |||
Intangible assets | |||
Intangible assets | $ 1,649 | ||
Amortization period | 10 years | ||
Xiamen NetinNet | Copyrights | |||
Intangible assets | |||
Intangible assets | $ 9,507 | ||
Xiamen NetinNet | Copyrights | Minimum | |||
Intangible assets | |||
Amortization period | 6 years | ||
Xiamen NetinNet | Copyrights | Maximum | |||
Intangible assets | |||
Amortization period | 7 years | ||
Xiamen NetinNet | Computer Software | |||
Intangible assets | |||
Intangible assets | $ 178 | ||
Amortization period | 10 years | ||
Xiamen NetinNet | Others | |||
Intangible assets | |||
Intangible assets | $ 524 | ||
Amortization period | 7 years |
Summary of Unaudited Pro Forma
Summary of Unaudited Pro Forma Result of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Pro forma net revenue | $ 9,618 | $ 10,410 |
Pro forma net income attributable to China Distance Education Ltd. | $ 2,263 | $ 2,546 |
Pro forma net income per ordinary share-basic | $ 0.21 | $ 0.19 |
Pro forma net income per ordinary share-diluted | $ 0.21 | $ 0.19 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Schedule of Investments [Line Items] | |
Other than temporary impairment losses, investments | $ 0 |
Minimum | |
Schedule of Investments [Line Items] | |
Short term investments, maturity period | P15D |
Investment, interest range | 3.62% |
Maximum | |
Schedule of Investments [Line Items] | |
Short term investments, maturity period | P59D |
Investment, interest range | 3.75% |
Short-term Investments (Detail)
Short-term Investments (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Schedule of Investments [Line Items] | |
Short-term investments | $ 1,278 |
Available-for-sale securities | |
Schedule of Investments [Line Items] | |
Short-term investments | 150 |
Held-to-maturity securities | |
Schedule of Investments [Line Items] | |
Short-term investments | $ 1,128 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable | $ 6,115 | $ 2,958 |
Less: allowance for doubtful accounts | (661) | (158) |
Accounts receivable, net | $ 5,454 | $ 2,800 |
Movement of Allowance For Doubt
Movement of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of the year | $ 158 | $ 1,250 |
Increase (reversal) of the allowance for doubtful accounts | 510 | (1,078) |
Foreign currency adjustment | (7) | (14) |
Balance at end of the year | $ 661 | $ 158 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Inventory [Line Items] | ||
Books and other goods | $ 781 | $ 1,373 |
Paper and other raw materials | 316 | 173 |
Less: inventory provisions for slow-moving and obsolescence | (126) | (675) |
Inventories, net | $ 971 | $ 871 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Inventory [Line Items] | |||
Inventories provision | $ 78 | $ 58 | $ 527 |
Prepayment and Other Current 71
Prepayment and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 3,268 | $ 2,929 | |
Advance to suppliers | [1] | 1,054 | 1,111 |
Staff advances | [2] | 735 | 387 |
Funds receivable | [3] | 156 | 244 |
Interest receivable | 132 | 163 | |
Others | 548 | 19 | |
Prepayment and other current assets, net | $ 5,893 | $ 4,853 | |
[1] | Advance to 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] | Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. | ||
[3] | 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, 2016 | Sep. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 24,905 | $ 21,521 |
Less: Accumulated depreciation | (10,997) | (8,605) |
Property, Plant and Equipment, Net | 13,908 | 12,916 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 7,254 | 5,826 |
Electronic And Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 14,133 | 12,207 |
Leasehold Improvement And Building Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total | 1,691 | 1,872 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 1,827 | $ 1,616 |
Property, Plant and Equipment73
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 2,533 | $ 2,034 | $ 1,808 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Line Items] | ||
Beginning balance | $ 7,429 | $ 7,689 |
Acquisition for the year | 22,921 | |
Exchange difference | (958) | (260) |
Ending balance | 29,392 | 7,429 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 29,392 | 7,429 |
Online Education Service | ||
Goodwill [Line Items] | ||
Beginning balance | 5,662 | 5,863 |
Exchange difference | (266) | (201) |
Ending balance | 5,396 | 5,662 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 5,396 | 5,662 |
Beijing Zhengbao Yucai Education Technology Co Ltd ("Zhengbao Yucai") | Startup Training Service | ||
Goodwill [Line Items] | ||
Beginning balance | 1,767 | 1,826 |
Exchange difference | (79) | (59) |
Ending balance | 1,688 | 1,767 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 1,688 | 1,767 |
Xiamen NetinNet Software Co., Ltd. | Software Sales Service | ||
Goodwill [Line Items] | ||
Beginning balance | 0 | |
Acquisition for the year | 22,921 | |
Exchange difference | (613) | |
Ending balance | 22,308 | $ 0 |
Accumulated impairment loss | 0 | |
Goodwill, net | $ 22,308 |
Composition of Other Intangible
Composition of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 18,746 | $ 6,758 |
Less: Accumulated amortization | (7,071) | (5,680) |
Other intangible assets, Net | 11,675 | 1,078 |
Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,222 | 3,480 |
Less: Accumulated amortization | (3,532) | (2,807) |
Trademarks and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 3,018 | 1,449 |
Less: Accumulated amortization | (1,186) | (1,045) |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 448 | 470 |
Less: Accumulated amortization | (448) | (470) |
Business Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 487 | 511 |
Less: Accumulated amortization | (487) | (511) |
Copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 10,372 | 639 |
Less: Accumulated amortization | (1,219) | (638) |
Platform | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 199 | 209 |
Less: Accumulated amortization | $ (199) | $ (209) |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 1,116 | $ 437 | $ 592 |
Estimated Amortization Expenses
Estimated Amortization Expenses for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
2,017 | $ 1,975 | |
2,018 | 1,880 | |
2,019 | 1,796 | |
2,020 | 1,720 | |
2,021 | 1,689 | |
2022 and thereafter | 2,615 | |
Other intangible assets, Net | $ 11,675 | $ 1,078 |
Summary of Long-term Investment
Summary of Long-term Investments (Detail) SGD in Thousands, $ in Thousands | Sep. 30, 2016USD ($) | May 31, 2016USD ($) | May 31, 2016SGD | ||
Available-for-sale securities investment: | |||||
Total | $ 3,079 | ||||
Amdon Consulting Pte Ltd ("Amdon") | |||||
Cost method investment: | |||||
Cost method investments | 658 | [1] | $ 658 | SGD 900 | |
Mayi White-Collar Investment Management Co., Ltd. ("Mayi Investment Management") | |||||
Equity method investment: | |||||
Equity method investments | [2] | 1,784 | |||
Beijing Niuke Technology Co., Ltd. ("Niuke Technology") | |||||
Available-for-sale securities investment: | |||||
Available-for-sale securities investments | [3] | $ 637 | |||
[1] | In May 2016, the Group invested Singapore Dollar ("S$") 0.9 million (US$658) in preferred shares representing a 8.18% interest in Amdon, a Singapore based e-learning solution provider. The Group further committed to invest an additional S$0.9 million (US$658) for an additional 6.82% interest upon Amdon meeting certain revenue criteria. The fair value of Amdon's equity interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Amdon. As a result, the investment was accounted for as a cost method investment. | ||||
[2] | In November 2015, the Group invested RMB12.5 million (US$1,875) cash in exchange for a 12.5% equity interest in Mayi Investment Management, a person-to-person ("P2P") and person-to-business ("P2B") integrated network lending platform. The Group uses the equity method to account for the investment, because the Group has the ability to exercise significant influence but does not have control over the investee. Mayi Investment Management qualified as a related party and the amount due from Mayi Investment Management recorded on the consolidated balance sheet was US$208 as of September 30, 2016. | ||||
[3] | In September 2016, the Group invested RMB4.25 million (US$637) in exchange for a 8.5% equity interest of Niuke Technology, an online professional platform dedicated to the learning and growth of programmers. The investment was classified as available-for-sale security as the Group determined that the shares were debt securities in nature due to the redemption option available to the investors and measured the investment subsequently at fair value. |
Summary of Long-term Investme79
Summary of Long-term Investments (Parenthetical) (Detail) ¥ in Thousands, SGD in Thousands, $ in Thousands | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | May 31, 2016USD ($) | May 31, 2016SGD | Nov. 30, 2015USD ($) | Nov. 30, 2015CNY (¥) | Sep. 30, 2015USD ($) | |
Investment Holdings [Line Items] | ||||||||
Amount due from a related party | $ 208 | $ 103 | ||||||
Mayi White-Collar Investment Management Co., Ltd. ("Mayi Investment Management") | ||||||||
Investment Holdings [Line Items] | ||||||||
Equity method investments | $ 1,875 | ¥ 12,500 | ||||||
Percentage of ownership interest | 12.50% | 12.50% | ||||||
Beijing Niuke Technology Co., Ltd. ("Niuke Technology") | ||||||||
Investment Holdings [Line Items] | ||||||||
Available-for-sale securities investments | $ 637 | ¥ 4,250 | ||||||
Investment ownership interest | 8.50% | 8.50% | ||||||
Amdon Consulting Pte Ltd ("Amdon") | ||||||||
Investment Holdings [Line Items] | ||||||||
Cost method investments | $ 658 | [1] | $ 658 | SGD 900 | ||||
Equity ownership interest | 8.18% | 8.18% | ||||||
Committed Investment | Amdon Consulting Pte Ltd ("Amdon") | ||||||||
Investment Holdings [Line Items] | ||||||||
Cost method investments | $ 658 | SGD 900 | ||||||
Equity ownership interest | 6.82% | 6.82% | ||||||
[1] | In May 2016, the Group invested Singapore Dollar ("S$") 0.9 million (US$658) in preferred shares representing a 8.18% interest in Amdon, a Singapore based e-learning solution provider. The Group further committed to invest an additional S$0.9 million (US$658) for an additional 6.82% interest upon Amdon meeting certain revenue criteria. The fair value of Amdon's equity interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Amdon. As a result, the investment was accounted for as a cost method investment. |
Available-For-Sale Securities R
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares Measured and Recorded At Fair Value Recurring Basis (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | $ 1,278 |
Long-term investments | 3,079 |
Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 150 |
Fair Value, Measurements, Recurring | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | 53,677 |
Total assets measured at fair value | 54,464 |
Fair Value, Measurements, Recurring | Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 150 |
Long-term investments | 637 |
Fair Value, Measurements, Recurring | Level 1 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Cash and cash equivalents | 53,677 |
Total assets measured at fair value | 53,677 |
Fair Value, Measurements, Recurring | Level 2 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Total assets measured at fair value | 787 |
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale securities | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Short-term investments | 150 |
Long-term investments | $ 637 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment loss related to investments, goodwill and acquired intangible assets | $ 0 | $ 0 | $ 0 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Assets Noncurrent [Line Items] | |||
Long-term prepaid expenses | [1] | $ 1,779 | $ 2,135 |
Rental deposits | [2] | 349 | 240 |
Deposit of sole distributor agreement | [3] | 1,350 | |
Prepaid investment | [4] | 450 | |
Other Assets, Miscellaneous, Total | $ 3,928 | $ 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. | ||
[3] | Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract for the cooperation with a software developer, classified as non-current deposits since the contract is longer than one year. | ||
[4] | Prepaid investment represents a deposit of an investment, classified as non-current deposit due to the underlying investment term. |
Other Non-Current Assets (Paren
Other Non-Current Assets (Parenthetical) (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
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, 2016 | Sep. 30, 2015 |
Accrued Expenses and Other Current Liabilities [Line Items] | ||
Tuition fee payables to government agencies | $ 16,048 | $ 13,084 |
Salary and welfare payable | 5,394 | 4,555 |
Accrued expenses | 3,841 | 3,349 |
Remuneration payable to lecturers | 2,203 | 2,380 |
Uncertain income tax liabilities (Note 18) | 163 | 171 |
Payables to employees in connection with options exercise | 6 | 7 |
Other payable | 2,909 | 2,447 |
Accrued expenses and other liabilities | $ 30,564 | $ 25,993 |
Bank Borrowing - Additional Inf
Bank Borrowing - Additional Information (Detail) $ in Thousands, ¥ in Millions | Jun. 24, 2016USD ($) | Jun. 24, 2015 | Jun. 22, 2015CNY (¥) | Dec. 06, 2013USD ($) | Sep. 30, 2016USD ($) | Jun. 24, 2016CNY (¥) | Sep. 30, 2015USD ($) | Dec. 06, 2013CNY (¥) |
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | ¥ 300 | |||||||
Term deposit used as collateral | $ | $ 15,542 | |||||||
Line of credit facility, current borrowing | ¥ 103.6 | |||||||
Line of credit facility , interest rate | 3.625% | |||||||
Line of credit facility, effective period | 3 years | |||||||
Bank borrowing, fair value | $ | $ 15,503 | $ 16,389 | ||||||
China Distance Education Limited ("CDEL Hong Kong") | Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 15,542 | $ 16,000 | ¥ 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 | ||||||
Line of credit facility , interest rate | 3.00% |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Nov. 11, 2015 | Sep. 30, 2015 | Aug. 18, 2015 | Sep. 30, 2014 | Mar. 11, 2014 | Sep. 30, 2014 | Feb. 24, 2016 | Apr. 29, 2011 |
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized amount, value | $ 20,000,000 | $ 40,000,000 | $ 20,000,000 | ||||||
Stock repurchase program, additional authorized amount, value | $ 10,000,000 | $ 10,000,000 | |||||||
Repurchase of ordinary shares | $ 36,760,000 | $ 3,333,000 | |||||||
Net proceeds from issuance of shares | $ 29,088,000 | ||||||||
Ordinary shares | |||||||||
Class of Stock [Line Items] | |||||||||
Repurchase of ordinary shares, shares | 11,326,460 | 1,137,236 | |||||||
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, 2016 | Sep. 30, 2015 | |
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 | $ 24,071 | $ 23,428 |
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 | $ 2,210 | $ 1,729 | |||||
Income tax expenses | 6,150 | 5,874 | $ 4,052 | ||||
Income tax reverse | 369 | 37 | 782 | ||||
Unrecognized tax benefits | $ 163 | 171 | 177 | ||||
China Distance Education Limited ("CDEL Hong Kong") | |||||||
Income Tax Disclosure [Line Items] | |||||||
Withholding tax rate | 5.00% | ||||||
Withholding tax on undistributed earnings | $ 2,210 | 1,729 | |||||
Income tax expenses | $ 481 | $ 453 | $ 371 | ||||
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% | 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% | 15.00% | |
Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | Scenario, Forecast | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | ||||||
Beijing Champion and Champion Technology | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | ||||||
Xiamen NetinNet | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 15.00% | ||||||
Nanjing Champion Vocational Training School (''Nanjing Training School'') | |||||||
Income Tax Disclosure [Line Items] | |||||||
Preferential income tax rate | 20.00% |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Before Income Taxes [Line Items] | |||
Non - PRC | $ (1,929) | $ (2,381) | $ (1,757) |
PRC | 34,581 | 32,828 | 29,218 |
Income before income taxes | $ 32,652 | $ 30,447 | $ 27,461 |
Current and Deferred Components
Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current tax expense | $ 5,799 | $ 4,798 | $ 3,988 |
Deferred tax (benefit)/expense | 351 | 1,076 | 64 |
Income Tax Expense, Total | $ 6,150 | $ 5,874 | $ 4,052 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income before taxes | $ 32,652 | $ 30,447 | $ 27,461 |
Income tax expense computed at applicable tax rates of 25% | 8,162 | 7,612 | 6,865 |
Effect of different tax rates in different jurisdictions | 413 | 614 | 357 |
Non-deductible expenses | 670 | 120 | 94 |
Effect of tax holidays | (3,464) | (3,001) | (2,888) |
Effect of valuation allowances | 164 | 59 | 33 |
Effect of tax rate changes | 0 | 0 | 0 |
Withholding tax on undistributed earnings | 574 | 507 | 373 |
Income tax reversal | (369) | (37) | (782) |
Income Tax Expense, Total | $ 6,150 | $ 5,874 | $ 4,052 |
Effective income tax rate | 18.83% | 19.29% | 14.76% |
Reconciliation of Effective T92
Reconciliation of Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
The aggregate amount of tax holidays | $ 3,464 | $ 3,001 | $ 2,888 |
Basic | |||
The aggregate effect on basic and diluted net income per share: | $ 0.03 | $ 0.02 | $ 0.02 |
Diluted | |||
The aggregate effect on basic and diluted net income per share: | $ 0.03 | $ 0.02 | $ 0.02 |
Components of Deferred Taxes (D
Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Payroll payable | $ 814 | $ 679 |
Accrued expenses | 621 | 604 |
Allowance for doubtful accounts | 185 | 247 |
Net operating loss carry-forwards | 76 | 40 |
Total current deferred tax assets | 1,696 | 1,570 |
Less: valuation allowance | (20) | (62) |
Current deferred tax assets, net | 1,676 | 1,508 |
Intangible assets | 8 | 13 |
Property, plant and equipment | 123 | 132 |
Net operating loss carry-forwards | 489 | 346 |
Total non-current deferred tax assets | 620 | 491 |
Less: valuation allowance | (484) | (337) |
Non-current deferred tax assets, net | 136 | 154 |
Intangible assets | 1,757 | 15 |
Withholding tax on undistributed earnings | 2,210 | 1,729 |
Total non-current deferred tax liabilities | $ 3,967 | $ 1,744 |
Reconciliation of Accrued Unrec
Reconciliation of Accrued Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Beginning balance | $ 171 | $ 177 |
Foreign currency adjustment | (8) | (6) |
Ending balance | $ 163 | $ 171 |
Employee Defined Contribution96
Employee Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total contributions to the government, employee benefits, expensed as incurred | $ 7,113 | $ 6,432 | $ 5,331 |
Employee benefits, mandatory contributions to defined contribution retirement plans for full time employees in Hong Kong | $ 3 | $ 3 | $ 2 |
Operating Lease Commitments (De
Operating Lease Commitments (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments and Contingencies [Line Items] | |
2,017 | $ 5,562 |
2,018 | 2,057 |
2,019 | 466 |
2,020 | 209 |
2,021 | 6 |
Operating leases, future minimum payments due, total | $ 8,300 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | |||||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 24, 2016USD ($) | Jun. 24, 2016CNY (¥) | Jun. 22, 2015CNY (¥) | Dec. 06, 2013USD ($) | Dec. 06, 2013CNY (¥) | |
Commitment And Contingencies [Line Items] | ||||||||
Operating leases rent expenses | $ | $ 6,857 | $ 6,955 | $ 5,786 | |||||
Term loan agreement value | ¥ | ¥ 300 | |||||||
Term deposit used as collateral | $ | $ 15,542 | |||||||
China Distance Education Limited ("CDEL Hong Kong") | Term Loan | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Term loan agreement value | $ 15,542 | ¥ 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 |
Summary of Changes in Noncontro
Summary of Changes in Noncontrolling Interest (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Noncontrolling Interest [Line Items] | |
Capital injection from noncontrolling interest shareholders | $ 4,824 |
Noncontrolling interest shareholders resulting from the acquisition of NetinNet | 6,533 |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (242) |
Gain (loss) attributed to noncontrolling interest shareholders | 121 |
Balance as of September 30, 2016 | 11,236 |
Beijing Zhengbao Yucai Education Technology Co Ltd ("Zhengbao Yucai") | |
Noncontrolling Interest [Line Items] | |
Capital injection from noncontrolling interest shareholders | 4,824 |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (69) |
Gain (loss) attributed to noncontrolling interest shareholders | 226 |
Balance as of September 30, 2016 | 4,981 |
Xiamen NetinNet Software Co., Ltd. | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest shareholders resulting from the acquisition of NetinNet | 6,533 |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (173) |
Gain (loss) attributed to noncontrolling interest shareholders | (105) |
Balance as of September 30, 2016 | $ 6,255 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2016 | Sep. 30, 2016 | May 31, 2016 | |
Beijing Zhengbao Yucai Education Technology Co Ltd ("Zhengbao Yucai") | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest, ownership percentage by non controlling owners | 39.94% | ||
Noncontrolling interest, ownership percentage by parent | 60.06% | ||
Proceeds from sale of ownership interests | $ 4,824 | ||
Beijing Champion Tongxin Management Consulting LLP ("Tongxin") | |||
Noncontrolling Interest [Line Items] | |||
Ownership interest of co-general partner | 53.11% | ||
Xiamen NetinNet Software Co., Ltd. | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest, ownership percentage by non controlling owners | 20.00% | ||
Noncontrolling interest, ownership percentage by parent | 80.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Sep. 30, 2016Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Xiamen NetinNet | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 1 |
Revenues Attributable to Differ
Revenues Attributable to Different Service and Product Groups (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 117,548 | $ 108,177 | $ 97,196 |
Total operating costs and expenses | (41,295) | (37,397) | (33,090) |
Operating costs and expenses: | |||
Cost of revenues | (48,334) | (44,343) | (39,803) |
Selling and marketing | (24,517) | (24,186) | (21,445) |
General and administrative | (16,778) | (13,211) | (11,645) |
Unallocated corporate expenses | (3,253) | (3,225) | (2,956) |
Other operating income | 806 | 224 | 253 |
Unallocated corporate expenses | (3,253) | (3,225) | (2,956) |
Operating income (loss) | 28,725 | 26,661 | 24,556 |
Unallocated corporate expenses | (3,253) | (3,225) | (2,956) |
Total assets | 148,920 | 174,120 | 171,629 |
Total assets | 148,920 | 174,120 | 171,629 |
Loss from equity method investment | (91) | ||
Cost of Sales | |||
Operating costs and expenses: | |||
Cost of revenues | (48,334) | (44,343) | (39,803) |
Selling Expense | |||
Operating costs and expenses: | |||
Selling and marketing | (24,517) | (24,186) | (21,445) |
General and Administrative Expense | |||
Operating costs and expenses: | |||
General and administrative | (13,525) | (9,986) | (8,689) |
Operating Expense | |||
Segment Reporting Information [Line Items] | |||
Total operating costs and expenses | (89,629) | (81,740) | (72,893) |
Other Operating Income (Expense) | |||
Operating costs and expenses: | |||
Other operating income | 806 | 224 | 253 |
Operating Income (Loss) | |||
Operating costs and expenses: | |||
Operating income (loss) | 28,725 | 26,661 | 24,556 |
Depreciation And Amortization | |||
Operating costs and expenses: | |||
Amortization and depreciation | 3,639 | 2,471 | 2,401 |
Loss From Equity Method Investments | |||
Operating costs and expenses: | |||
Loss from equity method investment | (91) | ||
Online Education Service | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 110,137 | 104,487 | 94,458 |
Total operating costs and expenses | (79,078) | (76,395) | (67,745) |
Operating costs and expenses: | |||
Cost of revenues | (44,473) | (42,993) | (38,389) |
Selling and marketing | (22,556) | (23,589) | (20,809) |
General and administrative | (12,049) | (9,813) | (8,547) |
Other operating income | 570 | 224 | 253 |
Operating income (loss) | 31,629 | 28,316 | 26,966 |
Total assets | 93,609 | 166,250 | 169,015 |
Total assets | 93,609 | 166,250 | 169,015 |
Amortization and depreciation | 2,792 | 2,388 | 2,105 |
Loss from equity method investment | (91) | ||
Startup Training Service | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4,375 | 3,690 | 2,738 |
Total operating costs and expenses | (3,379) | (2,120) | (2,192) |
Operating costs and expenses: | |||
Cost of revenues | (1,915) | (1,350) | (1,414) |
Selling and marketing | (688) | (597) | (636) |
General and administrative | (776) | (173) | (142) |
Other operating income | 2 | ||
Operating income (loss) | 998 | 1,570 | 546 |
Total assets | 13,262 | 7,870 | 2,614 |
Total assets | 13,262 | 7,870 | 2,614 |
Amortization and depreciation | 60 | $ 83 | $ 296 |
Software Sales Service | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,036 | ||
Total operating costs and expenses | (3,919) | ||
Operating costs and expenses: | |||
Cost of revenues | (1,946) | ||
Selling and marketing | (1,273) | ||
General and administrative | (700) | ||
Other operating income | 234 | ||
Operating income (loss) | (649) | ||
Total assets | 42,049 | ||
Total assets | 42,049 | ||
Amortization and depreciation | $ 787 |
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, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income | $ 26,290 | $ 24,573 | $ 23,409 |
Allocated to ordinary share - basic | 26,184 | 24,485 | 23,392 |
Allocated to nonvested restricted share - basic | $ 106 | $ 88 | $ 17 |
Weighted average number of ordinary shares outstanding | 136,497,929 | 142,720,838 | 139,613,967 |
Weighted average number of nonvested restricted share | 555,489 | 512,833 | 102,754 |
Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method | 1,412,526 | 534,319 | 780,483 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 138,465,944 | 143,767,990 | 140,497,204 |
Basic net income per share | $ 0.19 | $ 0.17 | $ 0.17 |
Basic net income per nonvested restricted share | 0.19 | 0.17 | 0.17 |
Diluted net income per share | 0.19 | 0.17 | 0.17 |
Diluted net income per nonvested restricted share | $ 0.19 | $ 0.17 | $ 0.17 |
Share Incentive Plan - Addition
Share Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 06, 2016 | Dec. 03, 2015 | Jan. 12, 2015 | Dec. 03, 2014 | Nov. 18, 2014 | May 21, 2013 | Jul. 02, 2008 | Apr. 18, 2008 | Sep. 30, 2016 | 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 | $ 2,015 | $ 1,783 | $ 503 | ||||||||||
Share options granted | 2,800,000 | ||||||||||||
Share options granted to selected employees exercise, price | $ 3.74 | ||||||||||||
Dividends payable, amount per share | $ 0.225 | ||||||||||||
Authorized reduction in exercise price of outstanding options | $ 0.225 | ||||||||||||
Total intrinsic value of options exercised | $ 372 | $ 317 | $ 3,906 | ||||||||||
Nonvested restricted shares granted | 542,372 | 125,000 | 667,372 | 125,000 | |||||||||
Grant date fair value non vested restricted share | $ 3.6875 | $ 3.81 | $ 3.85 | $ 4.58 | |||||||||
Total share base compensation | $ 2,000 | ||||||||||||
Share-based compensation requisite service period | 4 years | ||||||||||||
Share-based compensation expenses | $ 2,015 | $ 1,783 | $ 503 | ||||||||||
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 | $ 1,941 | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 2 years 1 month 17 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 | $ 3.8125 | $ 4.53 | |||||||||||
Total share base compensation | $ 477 | $ 566 | |||||||||||
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 | $ 1,225 | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 2 years 2 months 12 days | ||||||||||||
Total fair value of nonvested restricted shares | $ 1,316 | 573 | 153 | ||||||||||
Share-based compensation expenses | $ 992 | $ 921 | $ 503 | ||||||||||
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, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
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 | 2,563,600 | 484,000 | 1,579,732 | ||
Number of shares, Outstanding, Granted | 2,800,000 | ||||
Weighted-average exercise price, Granted | $ 3.74 | ||||
Weighted-average remaining contractual term (years), Granted | 9 years 1 month 21 days | ||||
Number of shares, Exercised | (456,000) | (121,024) | (1,095,732) | ||
Number of shares, Outstanding, Forfeited | (24,000) | (599,376) | |||
Number of shares, Outstanding, Ending | 2,083,600 | 2,563,600 | 484,000 | 1,579,732 | |
Weighted-average exercise price, Outstanding, Beginning | $ 3.36 | $ 0.35 | $ 0.50 | ||
Number of shares, Expected to vest | 1,698,000 | ||||
Number of shares, Exercisable | 385,600 | ||||
Weighted-average exercise price, Exercised | $ 3.54 | 0.15 | 0.45 | ||
Weighted-average exercise price, Forfeited | 3.49 | 3.22 | |||
Weighted-average exercise price, Outstanding, Ending | 2.86 | $ 3.36 | $ 0.35 | $ 0.50 | |
Weighted-average exercise price: Expected to vest | 3.32 | ||||
Aggregated intrinsic value, Outstanding, Beginning | $ 1,528 | $ 3,389 | |||
Weighted-average exercise price: Exercisable | $ 0.86 | ||||
Weighted-average remaining contractual term (years), Outstanding | 7 years 6 months 18 days | 8 years 8 months 9 days | 5 years 8 months 23 days | 6 years 4 months 13 days | |
Number of shares, Expected to vest | 8 years 1 month 21 days | ||||
Weighted-average remaining contractual term (years), Exercisable | 4 years 11 months 12 days | ||||
Outstanding, September 30, 2014 | $ 765 | $ 1,528 | |||
Aggregated intrinsic value, Exercisable | $ 914 |
Share Options, Nonemployees (De
Share Options, Nonemployees (Detail) - Non Employee - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 125,300 | 128,200 | 128,200 | |
Number of shares, Exercised | (68,300) | (2,900) | ||
Number of shares, Outstanding, Ending | 57,000 | 125,300 | 128,200 | 128,200 |
Weighted-average exercise price, Outstanding, Beginning | $ 0.15 | $ 0.35 | $ 0.50 | |
Number of shares, Exercisable | 57,000 | |||
Weighted-average exercise price, Exercised | 0.18 | |||
Weighted-average exercise price, Outstanding, Ending | $ 0.15 | $ 0.35 | $ 0.50 | |
Aggregated intrinsic value, Outstanding, Beginning | $ 382 | $ 405 | $ 275 | |
Weighted-average exercise price: Exercisable | $ 0 | |||
Outstanding, September 30, 2014 | $ 184 | $ 382 | $ 405 | $ 275 |
Weighted-average remaining contractual term (years), Outstanding | 1 year 6 months 18 days | 2 years 6 months 18 days | 3 years 6 months 18 days | 4 years 6 months 18 days |
Exercisable at September 30, 2016 | $ 184 | |||
Weighted-average remaining contractual term (years), Exercisable | 1 year 6 months 18 days |
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 Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested restricted shares outstanding, Beginning balance | 667,372 | 125,000 | 125,000 | ||
Granted | 542,372 | 125,000 | 667,372 | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (328,389) | (125,000) | (125,000) | ||
Nonvested restricted shares outstanding, Ending balance | 463,983 | 667,372 | 125,000 | ||
Weighted average grant-date fair value, outstanding Beginning balance | $ 3.85 | $ 4.58 | $ 1.22 | ||
Nonvested restricted shares, Expected to vest | 463,983 | ||||
Weighted average grant-date fair value, Granted | $ 3.6875 | $ 3.81 | 3.85 | 4.58 | |
Weighted average grant-date fair value, Vested | 4.01 | 4.58 | 1.22 | ||
Weighted average grant-date fair value, outstanding Ending balance | 3.72 | $ 3.85 | $ 4.58 | ||
Weighted average grant-date fair value, Expected to vest | $ 3.72 | ||||
Aggregated intrinsic value, Nonvested restricted shares outstanding | $ 1,499 | $ 2,132 | $ 438 | $ 330 | |
Aggregated intrinsic value, Expected to vest | $ 1,499 |
Total Share-Based Compensation
Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 2,015 | $ 1,783 | $ 503 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 162 | 143 | |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,769 | 1,566 | $ 503 |
Selling Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 84 | $ 74 |
Cash Dividend - Additional Info
Cash Dividend - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 11, 2015 | Nov. 18, 2014 | Nov. 20, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Jan. 06, 2016 | Jan. 06, 2015 | Jan. 08, 2014 |
Cash dividend declared per ordinary share | $ 0.225 | $ 0.20 | $ 0.15 | ||||||
Ordinary shares, Outstanding | 131,729,773 | 142,406,933 | 140,219,033 | 142,878,373 | 136,409,633 | ||||
Dividends | $ 31,138 | $ 28,199 | $ 20,258 | $ 31,138 | $ 28,199 | $ 20,258 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ / shares in Units, $ / shares in Units, SGD in Thousands, $ in Thousands, ¥ in Millions | Jan. 06, 2017$ / shares | Dec. 23, 2016USD ($) | Dec. 08, 2016USD ($) | Dec. 08, 2016CNY (¥)¥ / sharesshares | Nov. 29, 2016$ / shares | Jun. 24, 2015 | Jun. 22, 2015CNY (¥) | Jul. 02, 2008 | Oct. 31, 2016USD ($) | Oct. 31, 2016CNY (¥)¥ / sharesshares | Jan. 25, 2017USD ($) | Jan. 25, 2017CNY (¥) | Dec. 23, 2016CNY (¥) | Nov. 30, 2016USD ($) | Nov. 30, 2016SGD | Sep. 30, 2016USD ($)$ / shares | May 31, 2016USD ($) | May 31, 2016SGD | Jan. 06, 2016$ / shares | Sep. 30, 2015$ / shares | Apr. 18, 2008$ / sharesshares | |
Subsequent Event [Line Items] | ||||||||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the Prior Plan, shares | shares | 11,652,556 | |||||||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the New Plan, percent | 5.00% | |||||||||||||||||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||||||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.225 | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ | ¥ 300 | |||||||||||||||||||||
Line of credit facility , interest rate | 3.625% | |||||||||||||||||||||
Term deposit used as collateral | $ | $ 15,542 | |||||||||||||||||||||
Line of credit facility, effective period | 3 years | |||||||||||||||||||||
Amdon Consulting Pte Ltd ("Amdon") | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Equity ownership interest | 8.18% | 8.18% | ||||||||||||||||||||
Cost method investments | $ 658 | [1] | $ 658 | SGD 900 | ||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Dividends payable, date declared | Nov. 29, 2016 | |||||||||||||||||||||
Dividends payable, amount per share | $ / shares | $ 0.1125 | |||||||||||||||||||||
Dividends payable, date of record | Jan. 6, 2017 | |||||||||||||||||||||
Ordinary shares | Four ordinary shares | |||||||||||||||||||||
Cash dividend per ordinary share | $ / shares | $ 0.45 | |||||||||||||||||||||
Dividend fees to Deutsche Bank | $ / shares | $ 0.02 | |||||||||||||||||||||
Dividends payable, date of record | Jan. 13, 2017 | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ | $ 14,900 | |||||||||||||||||||||
Line of credit facility , interest rate | 1.997% | |||||||||||||||||||||
Term deposit used as collateral | $ | $ 1,740 | |||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ | $ 15,000 | |||||||||||||||||||||
Line of credit facility, effective period | 12 months | |||||||||||||||||||||
Subsequent Event | Nurselink International Limited | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Equity method investment, ownership percentage | 7.242% | 7.242% | ||||||||||||||||||||
Equity method investment | $ | $ 911 | |||||||||||||||||||||
Subsequent Event | Amdon Consulting Pte Ltd ("Amdon") | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Equity ownership interest | 6.82% | 6.82% | ||||||||||||||||||||
Cost method investments | $ 658 | SGD 900 | ||||||||||||||||||||
Subsequent Event | Hangzhou Wanting | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Equity method investment, ownership percentage | 10.00% | 10.00% | ||||||||||||||||||||
Equity method investment | $ 2,400 | ¥ 16 | ||||||||||||||||||||
Subsequent Event | Beijing Champion Distance Education Technology Co., Ltd. ("Champion Technology") | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Term deposit used as collateral | $ 17,500 | ¥ 116.7 | ||||||||||||||||||||
Subsequent Event | Zhengbao Yucai | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the New Plan, percent | 40.50% | 40.50% | 40.50% | 40.50% | ||||||||||||||||||
Ordinary shares, par value | ¥ / shares | ¥ 1.91 | |||||||||||||||||||||
Equity ownership percentage, owned by parent | 60.10% | |||||||||||||||||||||
Combined equity interest percentage | 59.50% | |||||||||||||||||||||
Subsequent Event | Zhengbao Yucai | Revised Plan | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Ordinary shares, par value | ¥ / shares | ¥ 1.99 | |||||||||||||||||||||
Equity ownership percentage, owned by parent | 35.80% | |||||||||||||||||||||
Subsequent Event | Zhengbao Yucai | Revised Plan | Mr.Zhengdong Zhu | Chairman and Chief Executive Officer | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percent of equity interest for subscription | 63.80% | 63.80% | ||||||||||||||||||||
Subsequent Event | Zhengbao Yucai | Prior Plans | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Ordinary shares, par value | ¥ / shares | ¥ 1.91 | |||||||||||||||||||||
Total fund raised by share issuance | ¥ | ¥ 80 | |||||||||||||||||||||
Subsequent Event | Zhengbao Yucai | Prior Plans | Independent Director Two | Mr.Liankui Hu | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Percent of equity interest for subscription | 24.60% | 24.60% | ||||||||||||||||||||
Subsequent Event | Maximum | Zhengbao Yucai | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the Prior Plan, shares | shares | 41,880,000 | 41,880,000 | ||||||||||||||||||||
Total fund raised by share issuance | $ 11,429 | ¥ 80 | ||||||||||||||||||||
Subsequent Event | Maximum | Zhengbao Yucai | Revised Plan | ||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||
Total fund raised by share issuance | $ 11,900 | ¥ 83.3 | ||||||||||||||||||||
[1] | In May 2016, the Group invested Singapore Dollar ("S$") 0.9 million (US$658) in preferred shares representing a 8.18% interest in Amdon, a Singapore based e-learning solution provider. The Group further committed to invest an additional S$0.9 million (US$658) for an additional 6.82% interest upon Amdon meeting certain revenue criteria. The fair value of Amdon's equity interest was not readily determinable and the Group did not have the ability to exercise significant influence over the operating and financial policies of Amdon. As a result, the investment was accounted for as a cost method investment. |
Schedule I - BALANCE SHEETS (De
Schedule I - BALANCE SHEETS (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
Current assets | ||||
Cash and cash equivalents | $ 53,677 | $ 117,899 | ||
Prepayment and other current assets | 5,893 | 4,853 | ||
Amount due from subsidiaries | 208 | 103 | ||
Total current assets | 85,822 | 150,229 | ||
Non-current assets | ||||
Total non-current assets | 63,098 | 23,891 | ||
Total assets | 148,920 | 174,120 | $ 171,629 | |
Current liabilities | ||||
Accrued expenses and other liabilities | 30,564 | 25,993 | ||
Bank borrowing | 15,551 | 16,467 | ||
Total current liabilities | 88,617 | 81,721 | ||
Total liabilities | 92,448 | 83,311 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share at September 30, 2015 and 2016; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2015 and 2016; Issued and outstanding -142,406,933 and 131,729,773 shares at September 30, 2015 and 2016, respectively) | 13 | 14 | ||
Additional paid-in capital | 15,697 | 55,598 | ||
Accumulated other comprehensive (loss) income | (3,418) | 2,735 | ||
Retained earnings | 32,944 | 32,462 | ||
Total equity | 45,236 | 90,809 | ||
Total liabilities and equity | 148,920 | 174,120 | ||
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 1,685 | 9,453 | 11,740 | $ 2,333 |
Prepayment and other current assets | 283 | 280 | ||
Amount due from subsidiaries | 9,009 | 3,889 | ||
Total current assets | 10,977 | 13,622 | ||
Non-current assets | ||||
Investment in subsidiaries | 132,150 | 110,401 | ||
Total non-current assets | 132,150 | 110,401 | ||
Total assets | 143,127 | 124,023 | ||
Current liabilities | ||||
Accrued expenses and other liabilities | 258 | 296 | ||
Amount due to subsidiaries | 82,082 | 16,451 | ||
Bank borrowing | 15,551 | 16,467 | ||
Total current liabilities | 97,891 | 33,214 | ||
Total liabilities | 97,891 | 33,214 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share at September 30, 2015 and 2016; Authorized - 500,000,000 and 500,000,000 shares at September 30, 2015 and 2016; Issued and outstanding -142,406,933 and 131,729,773 shares at September 30, 2015 and 2016, respectively) | 13 | 14 | ||
Additional paid-in capital | 15,697 | 55,598 | ||
Accumulated other comprehensive (loss) income | (3,418) | 2,735 | ||
Retained earnings | 32,944 | 32,462 | ||
Total equity | 45,236 | 90,809 | $ 98,410 | $ 64,520 |
Total liabilities and equity | 143,127 | 124,023 | ||
Parent Company | Investments In Subsidiaries And Equity Method Investees | ||||
Non-current assets | ||||
Investment in subsidiaries | $ 132,150 | $ 110,401 |
Schedule I - BALANCE SHEETS (Pa
Schedule I - BALANCE SHEETS (Parenthetical) (Detail) - $ / shares | Sep. 30, 2016 | Jan. 06, 2016 | Sep. 30, 2015 | Jan. 06, 2015 | Jan. 08, 2014 | 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 | 131,729,773 | 142,406,933 | ||||
Ordinary shares, Outstanding | 131,729,773 | 140,219,033 | 142,406,933 | 142,878,373 | 136,409,633 | |
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 | 131,729,773 | 142,406,933 | ||||
Ordinary shares, Outstanding | 131,729,773 | 142,406,933 |
Schedule I - STATEMENTS OF OPER
Schedule I - STATEMENTS OF OPERATIONS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
Selling expenses | $ (24,517) | $ (24,186) | $ (21,445) |
General and administrative expenses | (16,778) | (13,211) | (11,645) |
Operating income | 28,725 | 26,661 | 24,556 |
Equity in income of subsidiaries and variable interest entities | (91) | ||
Interest income | 2,020 | 3,513 | 2,964 |
Interest expense | (555) | (464) | (291) |
Exchange gain | 2,462 | 737 | 232 |
Net income attributable to China Distance Education Holdings Limited | 26,290 | 24,573 | 23,409 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of sales | (162) | (143) | |
Selling expenses | (84) | (74) | |
General and administrative expenses | (2,591) | (2,540) | (1,378) |
Operating income | (2,837) | (2,757) | (1,378) |
Equity in income of subsidiaries and variable interest entities | 27,902 | 26,910 | 24,627 |
Interest income | 2 | 31 | 160 |
Interest expense | (1,131) | (178) | |
Exchange gain | 2,354 | 567 | |
Net income attributable to China Distance Education Holdings Limited | $ 26,290 | $ 24,573 | $ 23,409 |
Schedule I - STATEMENTS OF COMP
Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | $ 26,290 | $ 24,573 | $ 23,409 |
Other comprehensive (loss) | |||
Foreign currency translation adjustment | (6,395) | (3,485) | (75) |
Total comprehensive income | 20,137 | 21,088 | 23,334 |
Parent Company | |||
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | 26,290 | 24,573 | 23,409 |
Other comprehensive (loss) | |||
Foreign currency translation adjustment | (6,153) | (3,485) | (75) |
Total comprehensive income | $ 20,137 | $ 21,088 | $ 23,334 |
Schedule I - STATEMENT OF CHANG
Schedule I - STATEMENT OF CHANGES IN EQUITY (Detail) - USD ($) $ in Thousands | Nov. 11, 2015 | Nov. 18, 2014 | Nov. 20, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 142,406,933 | |||||
Beginning Balance | $ 90,809 | |||||
Net income for the year | 26,290 | $ 24,573 | $ 23,409 | |||
Foreign currency translation adjustments | (6,395) | (3,485) | (75) | |||
Repurchase of ordinary shares (Note 16) | (36,760) | (3,333) | ||||
Issuance of new ordinary shares (Note 16) | 29,088 | |||||
Options exercised | 1,659 | 18 | 491 | |||
Stock-based compensation expense (Note 24) | 2,015 | 1,783 | 503 | |||
Dividends (Note 25) | $ (31,138) | $ (28,199) | $ (20,258) | (31,138) | (28,199) | (20,258) |
Loan to optionees in connection with exercise of options | $ 177 | $ 1,042 | $ 732 | |||
Ending Balance (in shares) | 131,729,773 | 142,406,933 | ||||
Ending Balance | $ 45,236 | $ 90,809 | ||||
Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 142,406,933 | 142,752,873 | 135,532,141 | |||
Repurchase of ordinary shares (Note 16) | $ (1) | |||||
Issuance of new ordinary shares (in shares) | 6,000,000 | |||||
Repurchase of ordinary shares (in shares) | (11,326,460) | (1,137,236) | ||||
Options exercised (in shares) | 524,300 | 123,924 | 1,095,732 | |||
Stock-based compensation expense (in shares)(Note 19) | 125,000 | 667,372 | 125,000 | |||
Ending Balance (in shares) | 131,729,773 | 142,406,933 | 142,752,873 | |||
Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repurchase of ordinary shares (Note 16) | $ (21,289) | $ (3,333) | ||||
Issuance of new ordinary shares (Note 16) | $ 29,088 | |||||
Options exercised | 1,659 | 18 | 491 | |||
Stock-based compensation expense (Note 24) | 2,015 | 1,783 | 503 | |||
Dividends (Note 25) | (20,800) | (21,182) | (286) | |||
Loan to optionees in connection with exercise of options | 177 | 1,042 | 732 | |||
Accumulated other comprehensive income | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Foreign currency translation adjustments | (6,153) | (3,485) | (75) | |||
Retained earnings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repurchase of ordinary shares (Note 16) | (15,470) | |||||
Dividends (Note 25) | $ (10,338) | (7,017) | (19,972) | |||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 142,406,933 | |||||
Beginning Balance | $ 90,809 | 98,410 | 64,520 | |||
Net income for the year | 26,290 | 24,573 | 23,409 | |||
Foreign currency translation adjustments | (6,153) | (3,485) | (75) | |||
Repurchase of ordinary shares (Note 16) | (36,760) | (3,333) | ||||
Issuance of new ordinary shares (Note 16) | 29,088 | |||||
Options exercised | 1,659 | 18 | 491 | |||
Stock-based compensation expense (Note 24) | 2,015 | 1,783 | 503 | |||
Dividends (Note 25) | (31,138) | (28,199) | (20,258) | |||
Loan to optionees in connection with exercise of options | $ 177 | $ 1,042 | 732 | |||
Ending Balance (in shares) | 131,729,773 | 142,406,933 | ||||
Ending Balance | $ 45,236 | $ 90,809 | $ 98,410 | |||
Parent Company | Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 142,406,933 | 142,752,873 | 135,532,141 | |||
Beginning Balance | $ 14 | $ 14 | $ 14 | |||
Repurchase of ordinary shares (Note 16) | $ (1) | |||||
Issuance of new ordinary shares (in shares) | 6,000,000 | |||||
Repurchase of ordinary shares (in shares) | (11,326,460) | (1,137,236) | ||||
Options exercised (in shares) | 524,300 | 123,924 | 1,095,732 | |||
Stock-based compensation expense (in shares)(Note 19) | 125,000 | 667,372 | 125,000 | |||
Ending Balance (in shares) | 131,729,773 | 142,406,933 | 142,752,873 | |||
Ending Balance | $ 13 | $ 14 | $ 14 | |||
Parent Company | Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 55,598 | 77,270 | 46,742 | |||
Repurchase of ordinary shares (Note 16) | (21,289) | (3,333) | ||||
Issuance of new ordinary shares (Note 16) | 29,088 | |||||
Options exercised | 1,659 | 18 | 491 | |||
Stock-based compensation expense (Note 24) | 2,015 | 1,783 | 503 | |||
Dividends (Note 25) | (20,800) | (21,182) | (286) | |||
Loan to optionees in connection with exercise of options | 177 | 1,042 | 732 | |||
Ending Balance | 15,697 | 55,598 | 77,270 | |||
Parent Company | Accumulated other comprehensive income | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 2,735 | 6,220 | 6,295 | |||
Foreign currency translation adjustments | (6,153) | (3,485) | (75) | |||
Ending Balance | (3,418) | 2,735 | 6,220 | |||
Parent Company | Retained earnings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 32,462 | 14,906 | 11,469 | |||
Net income for the year | 26,290 | 24,573 | 23,409 | |||
Repurchase of ordinary shares (Note 16) | (15,470) | |||||
Dividends (Note 25) | (10,338) | (7,017) | (19,972) | |||
Ending Balance | $ 32,944 | $ 32,462 | $ 14,906 |
Schedule I - STATEMENTS OF CASH
Schedule I - STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 26,290 | $ 24,573 | $ 23,409 |
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | |||
Equity in profit of subsidiaries and variable interest entities | 91 | ||
Share-based compensation | 2,015 | 1,783 | 503 |
(Decrease) increase in accrued expenses and other liabilities | 3,792 | 3,450 | 7,944 |
(Increase) decrease in prepayments and other assets | (843) | (1,315) | 327 |
Exchange (gain) | (2,462) | (737) | (232) |
Net cash generated from (used in) operating activities | 38,969 | 37,779 | 44,093 |
Repurchase of ordinary shares | (36,760) | (3,333) | |
Proceeds from share options exercised by employees | 1,659 | 18 | 491 |
Loan to optionees in connection with exercise of options | (1,663) | (510) | |
Repayment of loan to optionees in connection with exercise of options | 177 | 1,042 | 1,242 |
Issuance of new shares | 29,088 | ||
Dividends paid to shareholders | (31,138) | (28,199) | (20,258) |
Net cash generated from (used in) financing activities | (62,866) | (29,887) | 26,115 |
Net (decrease) increase in cash and cash equivalents | (64,222) | (176) | 46,156 |
Cash and cash equivalents at beginning of the year | 117,899 | ||
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 26,290 | 24,573 | 23,409 |
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | |||
Equity in profit of subsidiaries and variable interest entities | (27,902) | (26,910) | (24,627) |
Share-based compensation | 2,015 | 1,783 | 503 |
(Decrease) increase in accrued expenses and other liabilities | (29) | 111 | (624) |
(Increase) in amounts due from subsidiaries | (5,120) | (1,182) | (65) |
(Increase) decrease in prepayments and other assets | (3) | 24 | (26) |
Increase in amounts due to a subsidiary | 65,631 | 13,319 | 784 |
Increase in short-term borrowing | 16,467 | ||
Exchange (gain) | (2,354) | (567) | |
Net cash generated from (used in) operating activities | 59,957 | 28,185 | (646) |
Repurchase of ordinary shares | (36,760) | (3,333) | |
Proceeds from share options exercised by employees | 1,659 | 18 | 491 |
Loan to optionees in connection with exercise of options | (1,663) | (510) | |
Repayment of loan to optionees in connection with exercise of options | 177 | 1,042 | 1,242 |
Issuance of new shares | 29,088 | ||
Dividends paid to shareholders | (31,138) | (28,199) | (20,258) |
Net cash generated from (used in) financing activities | (67,725) | (30,472) | 10,053 |
Net (decrease) increase in cash and cash equivalents | (7,768) | (2,287) | 9,407 |
Cash and cash equivalents at beginning of the year | 9,453 | 11,740 | 2,333 |
Cash and cash equivalents at end of the year | 1,685 | $ 9,453 | $ 11,740 |
Parent Company | Long Term Intra Entity Foreign Currency Transaction Losses | |||
Adjustments to reconcile net income to net cash generated from (used in) operating activities: | |||
Exchange (gain) | $ (925) |
Schedule I - Basis of Preparati
Schedule I - Basis of Preparation (Detail) | Sep. 30, 2016 |
Parent Company | |
Condensed Financial Statements, Captions [Line Items] | |
Subsidiaries, VIE and VIEs' subsidiaries consolidated net assets percentage | 25.00% |
Schedule I - Investments in Sub
Schedule I - Investments in Subsidiaries and VIES (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ (91) | ||
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investments in subsidiaries and VIEs | 132,150 | $ 110,401 | |
Equity in income of subsidiaries and variable interest entities | $ 27,902 | $ 26,910 | $ 24,627 |