Document and Entity Information
Document and Entity Information | 12 Months Ended |
Sep. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
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 | 133,275,521 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 30,826 | $ 60,526 |
Restricted cash | 51,736 | 34,855 |
Short-term investments | 17,073 | 5,261 |
Accounts receivable, net of allowance for doubtful accounts of US$1,191 and US$1,342 as of September 30, 2017 and 2018, respectively | 7,280 | 5,525 |
Inventories | 2,782 | 864 |
Prepayment and other current assets | 17,054 | 10,439 |
Deferred tax assets, current portion | 1,654 | |
Deferred cost | 1,125 | 711 |
Total current assets | 127,876 | 119,835 |
Non-current assets | ||
Property, plant and equipment, net | 27,972 | 14,022 |
Goodwill | 79,516 | 29,459 |
Other intangible assets, net | 39,500 | 9,947 |
Deposit for purchases of non-current assets | 8,126 | 641 |
Long-term investments | 33,837 | 43,631 |
Deferred tax assets, non-current portion | 5,711 | |
Other non-current assets | 6,387 | 7,016 |
Total non-current assets | 201,049 | 104,716 |
Total assets | 328,925 | 224,551 |
Current liabilities | ||
Bank borrowings | 50,975 | 29,965 |
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$31,684 and US$34,993 as of September 30, 2017 and 2018, respectively) | 42,141 | 38,767 |
Amount due to a related party | 1,648 | |
Income tax payable (including income tax payable of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$3,641 and US$4,847 as of September 30, 2017 and 2018, respectively) | 9,293 | 6,750 |
Deferred revenue (including deferred revenue of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$49,575 and US$77,299 as of September 30, 2017 and 2018, respectively) | 78,194 | 50,506 |
Refundable fees (including refundable fees of the consolidated VIE without recourse to China Distance Education Holdings Limited of US$1,074 and US$13,837 as of September 30, 2017 and 2018, respectively) | 13,837 | 1,074 |
Total current liabilities | 194,440 | 128,710 |
Non-current liabilities | ||
Deferred tax liabilities | 12,693 | 3,099 |
Long-term bank borrowing | 12,027 | 19,930 |
Total non-current liabilities | 24,720 | 23,029 |
Total liabilities | 219,160 | 151,739 |
Commitments and contingencies (Note 21) | ||
Equity | ||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 131,854,773 and 133,275,521 shares issued and outstanding at September 30, 2017 and 2018, respectively) | 13 | 13 |
Additional paid-in capital | 21,557 | 19,097 |
Accumulated other comprehensive loss | (7,013) | (3,367) |
Retained earnings | 29,717 | 33,040 |
Total China Distance Education Holdings Limited shareholder's equity | 44,274 | 48,783 |
Noncontrolling interests | 65,491 | 24,029 |
Total equity | 109,765 | 72,812 |
Total liabilities and equity | $ 328,925 | $ 224,551 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts receivable, net of allowance for doubtful accounts | $ 1,342 | $ 1,191 |
Accrued expenses and other liabilities | 42,141 | 38,767 |
Income tax payable | 9,293 | 6,750 |
Deferred revenue | 78,194 | 50,506 |
Refundable fees | $ 13,837 | $ 1,074 |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Issued | 133,275,521 | 131,854,773 |
Ordinary shares, Outstanding | 133,275,521 | 131,854,773 |
Variable Interest Entity, Primary Beneficiary | ||
Accrued expenses and other liabilities | $ 34,993 | $ 31,684 |
Income tax payable | 4,847 | 3,641 |
Deferred revenue | 77,299 | 49,575 |
Refundable fees | $ 13,837 | $ 1,074 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 166,668 | $ 130,988 | $ 117,548 |
Cost of sales | |||
Total cost of sales | (87,883) | (57,412) | (48,334) |
Gross profit | 78,785 | 73,576 | 69,214 |
Operating expenses | |||
Selling expenses | (44,717) | (34,910) | (24,517) |
General and administrative expenses | (21,253) | (19,468) | (16,778) |
Total operating expenses | (65,970) | (54,378) | (41,295) |
Change in fair value in connection with business combination | 84 | ||
Other operating income | 3,051 | 1,912 | 806 |
Operating income (loss) | 15,950 | 21,110 | 28,725 |
Interest income | 2,522 | 1,531 | 2,020 |
Interest expense | (3,331) | (1,049) | (555) |
Impairment loss from long-term investments | (2,835) | (679) | |
Exchange gain | 2,476 | 128 | 2,462 |
Income before income taxes | 14,782 | 21,041 | 32,652 |
Income tax expense | (2,307) | (4,620) | (6,150) |
Loss from equity method investments | (172) | (153) | (91) |
Net income | 12,303 | 16,268 | 26,411 |
Less: Net income attributable to noncontrolling interests | 677 | 1,333 | 121 |
Net income attributable to China Distance Education Holdings Limited | $ 11,626 | $ 14,935 | $ 26,290 |
Net income attributable to ordinary shareholders | |||
Basic | $ 0.09 | $ 0.11 | $ 0.19 |
Diluted | $ 0.09 | $ 0.11 | $ 0.19 |
Weighted average shares used in calculating net income per share | |||
Basic | 132,363,620 | 131,432,211 | 136,497,929 |
Diluted | 133,117,155 | 133,203,255 | 138,465,944 |
Service [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 117,026 | $ 95,503 | $ 93,923 |
Cost of sales | |||
Total cost of sales | (78,936) | (50,540) | (43,796) |
Product [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | 10,213 | 8,980 | 8,067 |
Cost of sales | |||
Total cost of sales | (8,947) | (6,872) | (4,538) |
Others [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 39,429 | $ 26,505 | $ 15,558 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net income | $ 12,303 | $ 16,268 | $ 26,411 |
Other comprehensive (loss) income - change in cumulative foreign currency translation adjustments | (8,118) | 264 | (6,395) |
Unrealized gain on available-for-sale investments, net of tax effect of nil, US$26 and US$420 for years ended September 30, 2016, 2017 and 2018, respectively | 2,599 | 173 | |
Comprehensive income | 6,784 | 16,705 | 20,016 |
Less: comprehensive (loss) income attributable to noncontrolling interests | (1,196) | 1,719 | (121) |
Comprehensive income attributable to China Distance Education Holdings Limited | $ 7,980 | $ 14,986 | $ 20,137 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Unrealized gain on available-for-sale investments, net of tax effect | $ 420 | $ 26 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive income (loss) | Retained earnings | Total China Distance Education Holding Limited shareholders' equity | Noncontrolling interest |
Beginning Balance (in shares) at Sep. 30, 2015 | 142,406,933 | ||||||
Beginning 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) (Note 17) | (11,326,460) | ||||||
Repurchase of ordinary shares (Note 17) | (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 25) | 125,000 | ||||||
Stock-based compensation expense (Note 25) | 2,015 | 2,015 | 2,015 | ||||
Dividends (Note 26) | (31,138) | (20,800) | (10,338) | (31,138) | |||
Capital contribution from noncontrolling interests | 4,824 | 4,824 | |||||
Noncontrolling interest arising from acquisitions | 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 | ||||||
Ending Balance at Sep. 30, 2016 | 56,472 | $ 13 | 15,697 | (3,418) | 32,944 | 45,236 | 11,236 |
Net income for the year | 16,268 | 14,935 | 14,935 | 1,333 | |||
Foreign currency translation adjustments | 264 | (122) | (122) | 386 | |||
Stock-based compensation expense (in shares) (Note 25) | 125,000 | ||||||
Stock-based compensation expense (Note 25) | 2,111 | 2,111 | 2,111 | ||||
Dividends (Note 26) | (14,839) | (14,839) | (14,839) | ||||
Capital contribution from noncontrolling interests | 12,164 | 1,090 | 1,090 | 11,074 | |||
Unrealized gain on available-for-sale securities, net of tax effect | 173 | 173 | 173 | ||||
Repayment of loan to optionees in connection with exercise of options | $ 199 | 199 | 199 | ||||
Ending Balance (in shares) at Sep. 30, 2017 | 131,854,773 | 131,854,773 | |||||
Ending Balance at Sep. 30, 2017 | $ 72,812 | $ 13 | 19,097 | (3,367) | 33,040 | 48,783 | 24,029 |
Net income for the year | 12,303 | 11,626 | 11,626 | 677 | |||
Foreign currency translation adjustments | (8,118) | (6,245) | (6,245) | (1,873) | |||
Options exercised (in shares) | 952,148 | ||||||
Options exercised | 1,489 | 1,489 | 1,489 | ||||
Stock-based compensation expense (in shares) (Note 25) | 468,600 | ||||||
Stock-based compensation expense (Note 25) | 2,306 | 2,306 | 2,306 | ||||
Dividends (Note 26) | (14,949) | (14,949) | (14,949) | ||||
Capital contribution from noncontrolling interests | 89 | 29 | 29 | 60 | |||
Noncontrolling interest arising from acquisitions | 42,598 | 42,598 | |||||
Unrealized gain on available-for-sale securities, net of tax effect | 2,599 | 2,599 | 2,599 | ||||
Loan to optionees in connection with exercise of options | (1,557) | (1,557) | (1,557) | ||||
Repayment of loan to optionees in connection with exercise of options | $ 193 | 193 | 193 | ||||
Ending Balance (in shares) at Sep. 30, 2018 | 133,275,521 | 133,275,521 | |||||
Ending Balance at Sep. 30, 2018 | $ 109,765 | $ 13 | $ 21,557 | $ (7,013) | $ 29,717 | $ 44,274 | $ 65,491 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Unrealized gain on available-for-sale securities, net of tax effect | $ 420 | $ 26 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 12,303 | $ 16,268 | $ 26,411 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Stock-based compensation | 2,306 | 2,111 | 2,015 |
Depreciation of property, plant and equipment | 3,069 | 2,792 | 2,533 |
Amortization of other intangible assets | 3,230 | 1,998 | 1,116 |
Provision of inventories | 15 | 261 | 78 |
Change in allowance for doubtful accounts | 199 | 516 | (83) |
Losses on disposition of property, plant and equipment | 21 | 93 | 24 |
Loss from equity method investment | 172 | 153 | 91 |
Impairment loss from long-term investments | 2,835 | 679 | |
Change in fair value in connection with business combination | (84) | ||
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | (1,921) | (581) | 230 |
(Increase) in inventories | (1,769) | (154) | (203) |
(Increase) in prepayments and other assets | (2,710) | (4,429) | (843) |
(Increase) decrease in deferred tax assets | (3,050) | 25 | (108) |
(Increase) decrease in deferred cost | (458) | 400 | (10) |
(Increase) in other non-current assets | (1,328) | (1,319) | (1,240) |
Increase in accrued expenses and other liabilities | 357 | 4,822 | 3,792 |
Increase in income tax payable | 582 | 679 | 871 |
Increase in deferred revenue | 23,243 | 13,765 | 8,173 |
(Decrease) increase in refundable fees | 13,444 | 205 | (4,224) |
Increase (decrease) in deferred tax liabilities | (369) | (749) | 459 |
(Increase) decrease in amount due from a related party | 7 | 196 | (113) |
Net cash generated from operating activities | 50,094 | 37,731 | 38,969 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of businesses, net of cash acquired | (15,488) | (29,695) | |
Maturity of term deposits | 4,593 | ||
Maturity of short-term investments | 28,211 | 70,532 | |
Purchase of short-term investments | (21,905) | (74,420) | (1,305) |
Acquisition of property, plant and equipment | (15,462) | (2,054) | (2,605) |
Proceeds from disposition of property, plant and equipment | 49 | 1 | |
Acquisition of other intangible assets | (736) | (271) | (163) |
Payment of deposit for the acquisition of non-current assets | (8,359) | (457) | (1,167) |
Payment for deposit for the purchase of investments | (1,688) | (459) | |
Purchase of equity method investment | (2,600) | (1,914) | |
Purchase of cost method investments | (18,136) | (33,710) | (651) |
Purchase of available-for-sale investments | (1,071) | (3,400) | (658) |
Net cash used in investing activities | (55,497) | (45,468) | (34,023) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Capital contribution from noncontrolling interests | 89 | 12,236 | 4,859 |
Loan repayment | (22,190) | (15,550) | |
Bank borrowings | 35,300 | 49,415 | |
Short-term loan acquired from a related party | 7,340 | ||
Repayment of short-term loan to a related party | (1,677) | (5,506) | |
Repurchase of ordinary shares | (36,760) | ||
Proceeds from share options exercised by employees | 1,489 | 1,659 | |
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | |
Repayment of loan to optionees in connection with exercise of options | 193 | 199 | 177 |
Dividends paid to shareholders | (14,949) | (14,839) | (31,138) |
Net cash (used in) generated from financing activities | (3,302) | 33,295 | (62,866) |
Exchange rate effect on cash and cash equivalents and restricted cash | (4,114) | 599 | (7,067) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (12,819) | 26,157 | (64,987) |
Cash and cash equivalents and restricted cash at beginning of the year | 95,381 | 69,224 | 134,211 |
Cash and cash equivalents and restricted cash at end of the year | 82,562 | 95,381 | 69,224 |
Supplemental schedule of cash flow information | |||
Income tax paid | (5,942) | (4,703) | (5,245) |
Supplemental schedule of non-cash activities | |||
Acquisition of property, plant and equipment and other intangible assets through utilization of deposits | 474 | 924 | 117 |
Income tax reversal | $ 299 | $ 437 | $ 369 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2018 | |
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, 2018, details of the Company’s subsidiaries, its VIEs and VIEs’ subsidiaries were as follows: Company Date of establishment 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 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 Zhongxi Champion Healthcare Education Technology Co., Ltd. (“Zhongxi Healthcare Education”) December 14, 2015 PRC 100% Inactive Xiamen Zhongxi Champion Education. Technology Co., Ltd (“Xiamen Zhongxi Education”) November 13, 2017 PRC 100% Provision of technical support and consultancy services and course production Shanghai Xidong Information Technology Co., Ltd. (“Xidong Information Technology”) June 21, 2017 PRC 100% Provision of software development and information technology services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC 35.76% (Note 22) Provision of start-up Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC 35.76%* Provision of start-up Xiamen NetinNet Software Co., Ltd (“Xiamen NetinNet”) August 15, 2005 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) August 19, 2011 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance “) April 7, 2005 PRC 28.608%* Provision of learning simulation software production Beijing NetinNet Technology Co., Ltd. (“Beijing NetinNet”) June 25, 2018 PRC 28.608%* Provision of learning simulation software production Beijing Chuang Qingchun Chuang Weilai Education Technology Co., Ltd. (“Chuang Qingchun “) February 28, 2017 PRC 21.456%* Provision of education consulting services Shanghai Huzheng Education Technology Co., Ltd. (“Huzheng Education “) May 2, 2017 PRC 35.76%* Provision of start-up Guangdong Zhengbao Yucai Education Co., Ltd. (“Guangdong Yucai”) June 23, 2017 PRC 21.456%* Provision of start-up JinMaLan (Tianjin) Business Start-up December 08, 2017 PRC 25.032%* Provision of start-up JinMaLan (Anqing) Business Start-up July 07, 2018 PRC 21.456%* Provision of start-up 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 *Note: These entities are subsidiaries of Zhengbao Yucai. 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 Beijing Champion International Education Technology Co., Ltd. (“Champion Int’l Education”) October 12, 2016 PRC Nil Provision of online education services and sales of books and reference materials Jiangsu Zhengbao Asset Financial Advisory Co., Ltd. (“Jiangsu Asset) May 08, 2017 PRC Nil Provision of financial and tax advisory and accounting service Jiangsu Caishuibang Enterprise Management Co., Ltd. (“Caishuibang”) June 16, 2015 PRC Nil Provision of development of web-based Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) March 11, 2016 PRC Nil Provision of legal profession services Shenzhen Ruida Chengtai Education Technology Co., Ltd. (“Shenzhen Ruida”) May 10, 2016 PRC Nil Provision of legal profession services Guangzhou Ruida Chengtai Education Technology Co., Ltd. (“Guangzhou Ruida”) April 14, 2016 PRC Nil Provision of legal profession services Hangzhou Ruitai Education Technology Co., Ltd. (“Hangzhou Chengtai”) April 19, 2016 PRC Nil Provision of legal profession services Nanjing Ruida Chengtai Education Technology. Co., Ltd. (“Nanjing Chengtai”) March 30, 2016 PRC Nil Provision of legal profession services Beijing Youbang Culture and Art Training School (“Beijing Youbang”) May 18, 2005 PRC Nil Provision of legal profession services 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 Mr. Zhengdong Zhu, chairman and CEO of the Group, and his spouse Ms. 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. Zhengdong Zhu and Ms. Baohong 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 have been 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, 2018. • 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, are valid, binding and enforceable and will not result in any violation of PRC laws or regulations. However, 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, 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 substantially all of the Group’s revenues have been generated from) the VIEs and their subsidiaries. For the years ended September 30, 2017 and 2018, the VIEs and their subsidiaries accounted for an aggregate of 44% and 51%, respectively, of the Group’s consolidated total assets, and 57% and 60%, 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, 2017 and 2018 and for each of the three years in the period ended September 30, 2018 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIEs and VIEs’ subsidiaries: As of September 30, 2017 2018 US$ US$ Cash and cash equivalents 27,098 20,477 Prepayment and other current assets 8,214 13,365 Total current assets 126,892 132,527 Total assets 179,969 258,535 Deferred revenue 49,575 77,299 Total current liabilities 85,974 130,976 Total liabilities 85,974 130,976 Total equity 93,995 127,559 For the years ended September 30, 2016 2017 2018 US$ US$ US$ Revenues 109,947 114,371 151,146 Net income 40,840 31,379 29,532 Net cash provided by operating activities 27,310 22,100 44,054 Net cash used in investing activities (3,938 ) (31,403 ) (44,414 ) Net cash used in financing activities — (5,506 ) (5,706 ) Effects of exchange rate changes (2,791 ) (5,435 ) (555 ) 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 need 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, 2018 | |
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, impairment of long-term investments, change in fair value of contingent consideration, 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, CDEL Hong Kong, Pencil, China Healthcare Investment and China Healthcare Education’s functional currencies are the 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 loss, a component of the 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 assets acquired, the liabilities assumed, and any noncontrolling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. 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 is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the previously held equity interest is remeasured in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. 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. Restricted cash Restricted cash represents deposits not readily available to the Company. Restricted cash as of September 30, 2017 and 2018 represented cash pledged as security for bank borrowings. Refer to Note 15. 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 net realizable value. Cost is determined using the weighted average cost 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, restricted cash, accounts receivable, short-term and long-term investments, bank borrowings, long-term bank borrowing, amount due to a related party, refundable fees and accounts payable. Available-for-sale held-to-maturity year-end. 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. Construction in progress The Group constructs certain of its property and equipment. Construction in progress represents the costs incurred in connection with the construction of property and equipment. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and in the condition necessary for its intended use. Depreciation is recorded at the time the assets are ready for intended use. 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, 2017 and 2018, 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 3~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5~7 years Others 3.5~8 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 recognizes an impairment loss based on the fair value of the assets. The Group did not record any impairment loss related to long-lived assets for the years ended September 30, 2016, 2017 and 2018. 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 investments, equity method investments, and available-for-sale (a) Cost method investments For investee companies 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 investments 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 investments. 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 investments during the years ended September 30, 2016, 2017 and 2018. (b) Equity method investments 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 estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, and the determination of the weighted average cost of capital. The Group recorded nil, US$679, and US$343 impairment loss on its equity method investments during the years ended September 30, 2016, 2017 and 2018. (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 recorded nil, nil, and US$2,492 impairment loss 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 online courses using the non-refundable pre-agreed For online courses using the refundable course model (i.e. elite classes), if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement, they are entitled to either a full refund or the right to retake the course. The participants must notify the Group within a pre-agreed 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 online courses through the use of prepaid study cards which are purchased from distributors. The Group sells to its regional distributors prepaid study cards at a discount to the face value of the cards. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the online course is available to the customers, which generally is from the enrollment date to the completion of the relevant professional examination date. Sales of prepaid study cards that are not activated for course enrollment are recognized as revenues upon expiration of the cards. Prepaid study cards that have been activated but have not been used to enroll online courses typically do not have an expiry date and will be deferred until they are used to enroll in online courses. Participants who enroll with the Company directly are eligible to a refund within a 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 online course is available to the user who enrolls using the study card or recognized as revenue immediately if the related online course has been completed or the study card has expired. The Group provides student enrollment services and online platform to government agencies which use the Group’s online platform to conduct continuing education services. The Group earns service fees as a percentage of total tuition fees based on the agreements entered into with the government agencies. Service fees are initially recorded as deferred revenue and are recognized as revenue when course participants complete the stipulated study hours and take the examinations, or on a straight line basis over the subscription period based on the terms of the agreements. The Group also operates an Online Open Learning Platform, a proprietary education platform that allows other parties to share their educational content or deliver live courses online. After passing the Group’s quality control reviews, experts and scholars of various fields can either record their own lectures and post them on the Open Learning Platform website, or deliver real-time audio-video courses. The group offers coaching services to these lecturers and deploys a user evaluation system to ensure that these courses meet its quality and effectiveness standards. The Group pays the experts and scholars certain percentage of the service fee they received from the end users. Revenues from Open Learning Platform are recognized on gross basis, as the Group is the primary obligor in the arrangement and bears the risks and rewards, including the quality control and the services delivered. For the years ended September 30, 2016, 2017 and 2018, the Group recognized revenues, net of business tax and related surcharges, in connection with expired study cards amounting to US$161, US$132 and US$93, respectively. The online courses service is provided by Beijing Champion and its subsidiaries which are subject to approximately 6% value added tax and related surcharges on and after May 1, 2016, and subject to approximately 3% business tax and related surcharges before May 1, 2016. The Group records revenues net of these taxes in the consolidated statements of operations. Such business tax and related surcharges for the years ended September 30, 2016, 2017 and 2018 were US$3,216, US$390 and US$1,075, respectively. Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are deferred until cash is collected. Inventory costs of products delivered to distributors for which revenues have been deferred are presented as “deferred costs” on the consolidated balance sheets. The Group also sells books and reference materials together with study cards which allow the customers to take a certain number of online courses for no additional charge or by paying at a discount. These sales are considered arrangements with two deliverables, consisting of the delivery of books and reference materials and the online courses service. Because neither vendor-specific objective evidence nor third-party evidence of fair value of the deliverables exist, the Group allocates revenue to each deliverables based on their relative selling price. Other revenues Other revenues include sales of 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 accounting 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. Starting from May 1, 2016, the Pilot Program became effective at a full scale in the PRC. 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. Champion Technology was 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. 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, which is further extended to December 31, 2020. 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 filing 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 Since May 2018, in accordance with Cai Shui [2018] No.32, the VAT rate decreased to 16% of the gross sales for general VAT payer. Therefore, for general VAT payer, VAT on sales is calculated at 16% on revenue from product sales and paid after deducting input VAT on purchases since May 1, 2018. The revenue earned from the sales of software of the Group is subject to 16% VAT rate. 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$11,356, US$17,833 and US$14,785 for the years ended September 30, 2016, 2017 and 2018, 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$763, US$1,134 and US$1,852 for the years ended September 30, 2016, 2017 and 2018, 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 more-likely-than-not Share-based compensation Share-based compensation with employees, officers and non-executive paid-in Share-based compensation with non-employee non-employee’s 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, unrealized gain or loss on available-for-sale 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$52,388 and US$28,021, which were denominated in RMB, at September 30, 2017 and 2018, respectively, representing 86.6% and 90.9% of the cash and cash equivalents at September 30, 2017 and 2018, 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, 2018, 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, 2018. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 4.4% and 8.5% of the Group’s carrying amount of accounts receivable as of September 30, 2017 and 2018, respectively. Newly adopted accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, In November 2015, the FASB issued ASU 2015-17: non-current In March 2016, the FASB issued ASU No. 2016-07, step-by-step available-for-sale In March 2016, the FASB issued ASU 2016-09, In November 2016, the FASB issued a new pronouncement, ASU 2016-18, Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, 2014-09 2014-09 2016-10, 2016-10 2014-09: 2016-10 2014-09. The Group expects to adopt ASU 2014-09 2014-09 In January 2016, the FASB issued a new pronouncement ASU 2016-01 ASU 2016-01 2018-03, 825-10): ASU 2016-01 2018-03 In February 2016, the FASB issued ASU No. 2016-02, right-of-use In July 2018, the FASB issued ASU 2018-11, 2016-02, 2016-02, In June 2016, the FASB issued ASU 2016-13, In January 2017, the FASB issued ASU 2017-01: In January 2017, the FASB issued ASU 2017-04: In June 2018, the FASB issued ASU 2018-07: In August 2018, the FASB issued ASU 2018-13 2018-13 2018-13 2018-13 2018-13 |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Sep. 30, 2018 | |
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS 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 paid in full 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 Acquisition of Jiangsu Asset On November 1, 2017, the Group acquired 80% equity interest in Jiangsu Asset for a total purchase consideration of RMB40 million (US$6,059), which was paid in full on October 25, 2017. The acquisition of Jiangsu Asset complements suite of learning solutions for the Group’s growing College Cooperation Program, enabling the Group to offer comprehensive real-case-based internship opportunities to college students to master critical accounting skills. This business acquisition 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$3,547. The management performed a purchase price allocation with the assistance from an independent appraiser, as of the date of acquisition: US$ Amortization Cash 2,526 Other current assets 753 Property, plant and equipment 1,984 25 years Intangible assets Customer Relationship 545 8 years Others 90 1-5 years Goodwill 3,547 Other current liabilities (1,550 ) Deferred tax liabilities (574 ) Noncontrolling interest (1,262 ) Total 6,059 The amounts of revenue and losses contributed by Jiangsu Asset since the acquisition date included in the consolidated statement of operations for the year ended September 30, 2018 were US$2,557 and US$693, respectively. The following summarized the unaudited pro forma result of operations for the year ended September 30, 2017 and 2018 with the assumption that the acquisition during the year ended September 30, 2018 occurred as of October 1, 2016. The pro forma results have been prepared for comparative purpose only and do not purport to be indicative of the results of operations which would have resulted had the significant acquisition occurred as of October 1, 2016, nor are they indicative of future operating results. Years ended September 30, 2017 2018 US$ US$ Pro forma net revenue 11 2,581 Pro forma net loss attributable to China Distance Education Holdings Limited (54 ) (561 ) Pro forma net income per ordinary share-basic 0.11 0.09 Pro forma net income per ordinary share- diluted 0.11 0.09 Acquisition of Beijing Ruida In June 2017, the Group invested RMB192 million (US$28,758) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China’s Legal Professional Qualification Examination. The investment was initially classified as a cost method investment as the Group determined that the preferred shares were not in-substance pre-agreed On July 10, 2018, the Group exercised a portion of its call option to purchase additional 11% equity interest in Beijing Ruida for cash consideration of RMB39.6 million (US$5,931) and contingent consideration payable depending on Beijing Ruida’s calendar year 2018 operating results. The contingent consideration was valued on the acquisition date at RMB12.0 million (US$1,746) by the management with the assistance from an independent appraiser and was subsequently measured at fair value at September 30, 2018. A gain of US$676 in relation to the 11% call option’s fair value change between the acquisition date and September 30, 2018 was recorded in the Company’s consolidated statements of operations. The acquisition of Beijing Ruida further strengthens the Group’s legal education vertical by adding a leading Legal Professional Qualification Examination preparation business to its current portfolio of professional education services. The additional 11% equity interest purchase was accounted for as a step acquisition whereby the Group remeasured the fair value of its previously held equity interests in Beijing Ruida on July 10, 2018, the step acquisition date. The fair value of the equity interest in Beijing Ruida held by the Group immediately before the step acquisition date amounted to RMB225.3 million (US$32.8 million), resulting in a loss at US$590 related to the remeasurement of the 40% previously held equity interest. Such loss was recorded in change in fair value in the Group’s consolidated statements of operations. Following the completion of the transaction, the Group held a total of 51% equity interest in Beijing Ruida, and Beijing Ruida became a consolidated subsidiary of the Group. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The acquisition-date fair value of the equity interest held by the Group immediately prior to the acquisition date was measured at fair value using a discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. The purchase price allocation described below was based on a valuation analysis provided by an independent appraiser. The purchase price was allocated at the date of acquisition as follows: US$ Amortization Cash 1,639 Other current assets 9,578 Property, plant and equipment 118 5 years Intangible assets Supplier Contracts 25,118 5.5 years Trademark 2,741 3 years Courseware 4,478 3.5 years Software 344 5.3 years Others 210 2.5-5.5 years Goodwill 48,931 Other current liabilities (684 ) Deferred tax liabilities (8,115 ) Noncontrolling interest (41,336 ) Total 43,022 The amounts of revenue and earnings contributed by Beijing Ruida since the acquisition date included in the consolidated income statement for the year ended September 30, 2018 were US$7,748 and US$1,605, respectively. The following summarized the unaudited pro forma result of operations for the year ended September 30, 2017 and 2018 with the assumption that the acquisition during the year ended September 30, 2018 occurred as of October 1, 2016. The pro forma results have been prepared for comparative purpose only and do not purport to be indicative of the results of operations which would have resulted had the significant acquisition occurred as of October 1, 2016, nor are they indicative of future operating results. Years ended September 30, 2017 2018 US$ US$ Pro forma net revenue 28,494 27,568 Pro forma net income attributable to China Distance Education Holdings Limited 460 14 Pro forma net income per ordinary share-basic 0.12 0.09 Pro forma net income per ordinary share- diluted 0.12 0.09 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2018 | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS Short-term investments consist of both held-to-maturity available-for-sale held-to-maturity available-for-sale While these fixed-income financial products are not publicly traded, the Group 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 years ended September 30, 2017 and 2018. Short-term investments consisted of the following: As of September 30, 2017 2018 US$ US$ Held-to-maturity 5,261 2,634 Available-for-sale — 14,439 5,261 17,073 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2018 | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net consisted of the following: As of September 30, 2017 2018 US$ US$ Accounts receivable 6,716 8,622 Less: allowance for doubtful accounts (1,191 ) (1,342 ) Accounts receivable, net 5,525 7,280 Movement of allowance for doubtful accounts was as follows: As of September 30, 2017 2018 US$ US$ Balance at beginning of the year 661 1,191 Increase of the allowance for doubtful accounts 516 199 Foreign currency adjustment 14 (48 ) Balance at end of the year 1,191 1,342 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2018 | |
INVENTORIES | 6. INVENTORIES Inventories consisted of the following: As of September 30, 2017 2018 US$ US$ Books and other goods 884 2,010 Paper and other raw materials 287 900 Less: inventory provisions for slow-moving and obsolescence (307 ) (128 ) 864 2,782 Inventories provision were US$78, US$261 and US$15 for the years ended September 30, 2016, 2017 and 2018, respectively. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
PREPAYMENT AND OTHER CURRENT ASSETS | 7. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets consisted of the following: As of September 30, Notes 2017 2018 US$ US$ Prepaid expenses 4,217 6,812 Advance to suppliers (1 ) 2,020 4,468 Staff advances (2 ) 1,015 1,073 Funds receivable (3 ) 628 1,750 Interest receivable 526 1,380 Deposits 1,242 593 Others 791 978 Prepayment and other current assets, net 10,439 17,054 (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 course 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, 2018 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment consisted of the following: As of September 30, 2017 2018 US$ US$ Buildings 7,271 9,111 Electronic and office equipment 15,208 17,687 Leasehold improvement and building improvement 1,898 2,291 Motor vehicles 2,239 2,099 Total 26,616 31,188 Less: Accumulated depreciation (12,594 ) (15,215 ) Construction in progress — 11,999 14,022 27,972 Depreciation expenses were US$2,533, US$2,792 and US$3,069 for the years ended September 30, 2016, 2017 and 2018, respectively. |
GOODWILL
GOODWILL | 12 Months Ended |
Sep. 30, 2018 | |
GOODWILL | 9. GOODWILL Goodwill is comprised of the following: Years ended September 30 2017 2018 Professional Business start-up Sale of Total Professional Business start-up Sale of Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,396 1,688 22,308 29,392 5,408 1,692 22,359 29,459 Acquisition for the year — — — — 52,478 — — 52,478 Exchange difference 12 4 51 67 (1,672 ) (50 ) (699 ) (2,421 ) Ending balance 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 Accumulated impairment loss — — — — — — — — Goodwill, net 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 The Group tested its goodwill for impairment at the following reporting units level. Professional education services - This reporting unit provides online education services and other education related 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. Business start-up start-up Sale of learning simulation software - This reporting unit provides learning simulation packaged software to its customers located in the PRC. It includes Xiamen NetinNet and its subsidiaries, NetinNet Education, NetinNet Finance and Beijing NetinNet. 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, 2016, 2017 and 2018. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2018 | |
OTHER INTANGIBLE ASSETS, NET | 10. OTHER INTANGIBLE ASSETS, NET The balance of other intangible assets consisted of the following: As of September 30, 2017 2018 US$ US$ Computer software 4,514 5,512 Trademarks and domain names 3,031 5,624 Courseware 448 4,788 Business contracts 489 24,891 Copyrights 10,397 10,087 Others 200 907 Total intangible assets 19,079 51,809 Less: Accumulated amortization Computer software (3,835 ) (4,037 ) Trademarks and domain names (1,475 ) (1,815 ) Courseware (448 ) (711 ) Business contracts (489 ) (1,461 ) Copyrights (2,685 ) (4,023 ) Others (200 ) (262 ) Accumulated amortization (9,132 ) (12,309 ) Intangible assets, net 9,947 39,500 Amortization expenses were US$1,116, US$1,998 and US$3,230, for the years ended September 30, 2016, 2017 and 2018, respectively. The estimated amortization expenses for the above other intangible assets for each of the following fiscal years are as follows: Amortization US$ 2019 8,752 2020 8,692 2021 8,418 2022 6,528 2023 5,414 2024 and thereafter 1,696 39,500 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2018 | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of September 30, 2017 2018 US$ US$ Cost method investments: Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) (a) 32,089 — Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (b) 4,986 — Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing teacheredu”) (c) — 11,655 Beijing Yousian Technology Co., Ltd. (“Beijing Yousian”) (d) — 3,276 Other cost method investments (e) 1,308 1,997 Equity method investment: Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (b) — 6,819 Beijing Taixing #1 Investment Management Centre (LP) (“Beijing Taixing #1 LP”) (f) — 2,184 Other equity method investments (g) 951 931 Available-for-sale Beijing Piyingke Technology Co., Ltd. (“Piyingke Technology”) (h) 2,548 — Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (i) — 3,494 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (j) 813 2,326 Other available-for-sale 936 1,155 Total 43,631 33,837 (a) In September 2017, the Group invested RMB192 million (US$28,858) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China’s Legal Professional Qualification Examination. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance The investment agreement between the Group and Beijing Ruida included a call option and certain contingent consideration payable by the Group. Under the call option, the Group has the option to further increase its equity interest in Beijing Ruida up to 60% before April 2019 if certain pre-agreed pre-agreed In July 2018, the Company settled its contingent consideration and paid RMB46.0 million (US$6,893) to Beijing Ruida in accordance with the terms of the original agreement. As a result, the Group recorded a charge due to change value amounting to US$3,867 in its consolidated statements of operations. Additionally, in July 2018, the Group also exercised partial of its call option to acquire an additional 11% equity interest of Beijing Ruida at cash consideration of RMB39.6 million (US$5,931). Following the completion of the transaction, the Group held 51% equity interest in Beijing Ruida and as a result, Beijing Ruida became a consolidated subsidiary of the Group. Refer to Note 3 for further details. (b) In January, August and September 2017, the Group invested an aggregated of RMB33.2 million (US$4,986) in exchange for preferred shares representing 20.72% equity interest in Hangzhou Wanting. Hangzhou Wanting offers comprehensive simulation-based learning platform to college students to master critical engineering and construction skills. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance In December 2017, the Group further entered into a share transfer agreement with certain shareholders of Hangzhou Wanting, to purchase an additional 10% equity interest in Hangzhou Wanting, with redemption right, for a consideration of RMB16.0 million (US$2,405). Upon the expiration of the redemption right in April 2018, its preferred shares became in-substance (c) In December 2017, the Group entered into a share transfer agreement with certain shareholders of Beijing teacheredu, an organization specialized in teacher’s continuing education, to purchase 14.5% equity interest for a consideration of RMB80.0 million (US$11,655). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance (d) In March 2018, the Group entered into an investment arrangement with certain shareholders of Beijing Yousian, an offline information technology training and recruiting service provider, to acquire 15% of Beijing Yousian’s equity interest for a consideration of RMB22.5 million (US$3,276). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance (e) The “Other cost method investments” represent several insignificant cost method investments. (f) In December 2017, the Group entered into a partnership agreement with certain parties and subscribed 40% interest in Beijing Taixing #1 Investment Management Centre (LP) (“Beijing Taixing #1 LP”), for a consideration of RMB10.0 million (US$1,456). Beijing Taixing #1 LP, a limited partnership, will engage in preschool education investment. In February 2018, Beijing Taixing #1 increased its capital size, and the Group contributed additional RMB5.0 million (US$728), to maintain its equity interest at 40%. In December 2018, Beijing Xinrui Education Technology Co., Ltd. (“Beijing Xinrui”) succeeded Beijing Taixing #1 LP, therefore, the investment in Beijing Taixing#1 LP became 40% equity interest in Beijing Xinrui. (g) The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2017 and 2018. During the year ended September 30, 2016, 2017 and 2018, the Group recorded its respective share of net loss (income) amounting US$91, US$153 and US$(61). (h) On March 9, 2017, the Group invested RMB17.0 million (US$2,548) in exchange for a 19.5% equity interest in Piyingke Technology, an internet animation cloud engine technology provider. The investment was classified as available-for-sale pre-agreed earn-out (i) In November 2017, the Group entered into a capital contribution agreement with Chongqing Moses Robots, an industrial automation solution provider, and its shareholders to purchase 10.0% equity interest for a consideration of RMB10.0 million (US$1,503), with certain redemption features. The investment was classified as available-for-sale pre-agreed (j) In September 2016, the Group purchased 8.5% equity in Niuke Technology for RMB4.3 million (US$639). In April 2018, Niuke Technology issued additional shares of which the Group subscribed additional 3% equity interest for RMB4.5 million (US$655), resulting in a 10.65% stake of total ownership. The Group accounted for both the initial and subsequent investments as available-for-sales (k) Other investments represent several insignificant investments classified as available-for-sale |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2018 | |
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, 2017 and 2018, available-for-sale Available-for-sale The Group’s financial assets and liability measured at fair value on a recurring basis are as follows: Year ended September 30, 2017 Fair value at Quoted prices in Significant Significant September 30, 2017 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 60,526 60,526 — — Long-term investments: Available-for-sale 4,297 — 4,297 — Total assets measured at fair value 64,823 60,526 4,297 — Contingent consideration payable 3,231 — — 3,231 Total Liabilities measured at fair value 3,231 — — 3,231 Year ended September 30, 2018 Fair value at Quoted prices in Significant Significant September 30, 2018 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 30,826 30,826 — — Short-term investments: Available-for-sale 14,439 — 14,439 — Long-term investments: Available-for-sale 6,975 — 2,327 4,648 Total assets measured at fair value 52,240 30,826 16,766 4,648 Contingent consideration payable 1,746 — — 1,746 Total Liabilities measured at fair value 1,746 — — 1,746 Redeemable preferred shares do not have quoted market price and 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. When no recent transactions are available, a market approach or income approach will be used by the Company to measure fair value. The market approach takes into consideration a number of factors including market multiple and discount rates from traded companies in the industry and requires the Company to make certain assumptions and estimates regarding industry factors. Specifically, some of the significant unobservable inputs included the investee’s historical earning on sales, discount of lack of marketability, investee’s time to IPO as well as related volatility. The income approach takes into consideration a number of factors including management projection of discounted future cash flows of the investee as well as an appropriate discount rate. The Company has classified those as level 3 measurement. The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair values. The fair values of available-for-sale The Group did not have any transfers between level 1 and level 2 fair value measurements during the periods presented. The Group transferred a redeemable preferred share investment from level 2 to level 3 at September 30, 2018, as the Group changed its fair value measurement for one investee. Specifically, the Group changed its measurement method from recent transactions to a market approach or income approach to determine the investment’s fair value as no recent transactions were available. The following table provides additional information of reconciliation for the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ Balance as of September 30, 2016 — Balance as of September 30, 2017 — Transfer from level 2 fair value measurements 936 Initial recognition 1,577 Unrealized gain 2,135 Balance as of September 30, 2018 4,648 The fair value of the contingent consideration payable was measured using the Monte Carlo simulation model. The fair value was determined by calculating the net present value of the expected payment using significant inputs that were not observable in the market as of September 30, 2017 and 2018, based on the following assumptions: (1) expected volatility of 5%, (2) discount rate of 16.8% and 14.9%, and (3) expected life of 0.32 and 0.48 of a year, respectively. The fair value of the bank borrowings and long-term bank borrowing were classified as level 2 as set out in Note 15. Measured and disclosed fair value on a nonrecurring basis The Group measures 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 or acquired intangible assets arising from acquisitions for the years ended September 30, 2016, 2017 and 2018. The Group measures cost method investments and equity method investments at fair value on a non-recurring |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
OTHER NON-CURRENT ASSETS | 13. OTHER NON-CURRENT Other non-current As of September 30, Notes 2017 2018 US$ US$ Long-term prepaid expenses (1 ) 2,954 3,823 Rental deposits (2 ) 527 923 Deposit of sole distributor agreement (3 ) 1,353 655 Prepaid investment (4 ) 1,127 — Others 1,055 986 7,016 6,387 (1) Long-term prepaid expenses represent golf club membership fees. Such fees is amortized over ten years and which is 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, which will not be refunded within one year. (3) Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract 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, 2018 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 14. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: As of September 30, Notes 2017 2018 US$ US$ Tuition fee payable to government agencies (1 ) 15,302 13,122 Salary and welfare payable 6,945 8,389 Accrued expenses 5,468 9,351 Remuneration payable to lecturers 2,547 3,520 Uncertain income tax liabilities (Note 19) 163 158 Contingent consideration payable (2 ) 3,231 1,746 Other payable 5,111 5,855 38,767 42,141 (1) 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. The Group is only responsible for the student enrollment and provision of online platform and shares certain percentage of tuition fee as service fees. (2) Contingent consideration payable represents contingent payable related to one of the Group’s acquisitions. Refer to Note 3 for details. |
BANK BORROWINGS
BANK BORROWINGS | 12 Months Ended |
Sep. 30, 2018 | |
BANK BORROWINGS | 15. BANK BORROWINGS On June 22, 2015, the Company entered into a 3-year The Company drew down a loan of RMB103.6 million (US$15,577) under the BEA Facility on June 24, 2015, for a period of 12 months, with an interest rate of 3.625% per annum. On June 24, 2016, the term loan was extended to June 24, 2017 with an interest rate of 3.00% per annum, subject to adjustment each quarter. The loan was secured by a term deposit of RMB103.6 million (US$15,577) provided by Champion Technology, which was extended to July 23, 2017. On December 23, 2016, the loan was terminated and replaced by a new loan agreement, for an amount of US$14,900 under the BEA Facility, with a maturity date of June 24, 2017. The loan bears interest rate at approximately 1.997%, subject to adjustment each quarter. In connection with the loan agreement, an additional term deposit of RMB11.6 million (US$1,738) was provided to the bank. The loan was extended to June 24, 2018, with an annual interest rate of approximately 2.395%. On June 22, 2018, the loan was subsequently renewed in an amount of US$15,081 and extended to June 26, 2019, with an annual interest rate of approximately 3.437%, subject to adjustment each quarter. An additional term deposit of RMB3.6 million (US$526) was made by Champion Technology with maturity date of June 25, 2019 and recorded as restricted cash on the consolidated balance sheet as of September 30, 2018. On December 23, 2016, US$15,000 of the BEA Facility was drawn down at approximately 1.997% interest rate, subject to adjustment each quarter, for a term of 12 months. The loan was secured by a term deposit of RMB116.7 million (US$17,540) provided by Champion Technology, and recorded as “restricted cash” on balance sheet as of September 30, 2017. This loan was repaid on December 18, 2017. On November 17, 2017, the Company entered into a one year Term Loan Facility with a maximum of US$40,000 facility limit with Hang Seng Bank (“HSB Facility”), which was further extended to September 30, 2019 with a new facility limit of US$48,300 on October 23, 2018. The details of the loans entered under the HSB Facility for the year ended September 30, 2018 are listed as follows: On December 18, 2017, US$20,100 of the HSB Facility was drawn down at approximately 2.82% interest rate, subject to adjustment each quarter, for a term of 12 months. The loan was secured by a term deposit of RMB134.7 million (US$20,246) provided by Champion Technology. The Group repaid US$5,000 in November 2018. On December 14, 2018, the remaining US$15,100 of the loan was subsequently renewed and extended to June 19, 2019 with a 3.49% annual interest rate, subject to adjustment each quarter. On January 5, 2018, US$15,200 of the HSB Facility was drawn down at approximately 2.91% interest rate, subject to adjustment each quarter, for a term of 12 months. The loan was secured by a term deposit of RMB101.8 million (US$15,301) provided by Champion Technology. On December 20, 2018, the loan was subsequently renewed and extended to June 19, 2019 with an interest rate of 3.99%, subject to adjustment each quarter. On July 19, 2017, Zhengbao Yucai and Baoshang Bank Co., Ltd Beijing Branch (“BSB”) entered into a loan agreement. Under the agreement, Zhengbao Yucai is able to draw down RMB132.6 million (US$19,307) from BSB for the purpose of acquiring 80% of NetinNet’s equity interest from Champion Technology. Refer to Note 22 for details regarding Zhengbao Yucai’s restructuring. The loan between Zhengbao Yucai and BSB is effective from July 21, 2017 to July 20, 2020, with an annual interest rate of 11%. On July 21, 2017, Zhengbao Yucai and BSB signed an equity pledge agreement, pursuant to which Zhengbao Yucai agreed to provide a pledge of 80% of equity interest of NetinNet held by Zhengbao Yucai to secure the loan. The loan was drawn down on July 21, 2017. On January 31, 2018, Zhengbao Yucai elected to early repay an amount of RMB47.0 million (US$6,843) of the loan. As of September 30, 2018, the loan balance is due as follows: RMB3.0 million (US$437) and RMB82.6 million (US$12,027) in the year ended September 30, 2019 and 2020, respectively. The fair value of the bank borrowings with BEA and Hang Seng Bank was US$29,947 and US$50,547 as of September 30, 2017 and 2018, respectively. The fair value of the long-term bank borrowing with BSB was US$19,930 and US$12,464 as of September 30, 2017 and 2018, respectively. The fair values of bank borrowings are measured based on the present value of the debt using market interest rates. The borrowings are categorized in Level 2 of the fair value hierarchy. |
RELATED-PARTY TRANSACTION
RELATED-PARTY TRANSACTION | 12 Months Ended |
Sep. 30, 2018 | |
RELATED-PARTY TRANSACTION | 16. RELATED-PARTY TRANSACTION The Group had the following significant balance and transaction with a related party: The amount due to a related party as of September 30, 2017, represented a temporarily non-interest |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Sep. 30, 2018 | |
ORDINARY SHARES | 17. ORDINARY SHARES 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 American Depositary Shares (“ADSs”) during a one-year |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Sep. 30, 2018 | |
RESTRICTED NET ASSETS | 18. 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 consolidated 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 the general reserve fund, the enterprise expansion fund and the 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 the 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 amounting to 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, 2018 | |
INCOME TAX | 19. 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 Service, LLC was established in the United States and remained inactive and later deregistered in the year 2017. 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. Beijing Champion and Champion Technology renewed the HNTE qualification every 3 years, and therefore, were continually entitled to the preferential income tax rate of 15% through 2019. 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 September 2018, Zhengbao Yucai renewed the HNTE qualification, and entitled to the preferential income tax rate in years 2018 through 2020. NetinNet renewed its HNTE Status in September 2017 and therefore entitled to the preferential income tax rate of 15% in years 2017 through 2019. Nanjing Training School, Chuang Qingchun, Tianjin JinMaLan, Anqing JinMaLan and Huzheng Education were qualified as “small-scaled minimal profit enterprise” under the EIT Law and were entitled to preferential income tax rate of 20% in year 2018. 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 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 2012 to 2017 remain subject to examination by the tax authorities and US$299 was reversed for the unpaid tax liability that was accrued before the 2012 tax year. Income before income taxes consisted of: Years ended September 30, 2016 2017 2018 US$ US$ US$ Non - PRC (1,929 ) (4,204 ) (656 ) PRC 34,581 25,245 15,438 32,652 21,041 14,782 The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: Years ended September 30, 2016 2017 2018 US$ US$ US$ Current tax expense 5,799 5,344 5,717 Deferred tax expense (benefit) 351 (724 ) (3,410 ) 6,150 4,620 2,307 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations is as follows: Years ended September 30, 2016 2017 2018 US$ US$ US$ Income before taxes 32,652 21,041 14,782 Income tax expense computed at applicable tax rates of 25% 8,162 5,260 3,696 Effect of different tax rates in different jurisdictions 413 988 770 Non-deductible 670 933 152 Effect of tax holidays (3,464 ) (2,812 ) (2,610 ) Effect of valuation allowances 164 116 285 Withholding tax on undistributed earnings 574 572 313 Income tax reversal (369 ) (437 ) (299 ) 6,150 4,620 2,307 Effective income tax rate 18.83 % 21.96 % 15.61 % The aggregate amount and per share effect of the tax holidays are as follows: Years ended September 30, 2016 2017 2018 US$ US$ US$ The aggregate amount of tax holidays 3,464 2,812 2,610 The aggregate effect on basic and diluted net income per share: - Basic 0.03 0.02 0.02 - Diluted 0.03 0.02 0.02 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of deferred taxes are as follows: As of September 30, 2017 2018 US$ US$ Current deferred tax assets Advertisement expenses 137 — Impairment loss from a long-term investment 170 Accrued expenses 877 — Allowance for doubtful accounts 465 — Net operating loss carry-forwards 215 — Total current deferred tax assets 1,864 — Less: valuation allowance (210 ) — Current deferred tax assets, net 1,654 — Non-current Accrued expenses — 1,217 Allowance for doubtful accounts — 598 Impairment loss from long-term investments — 867 Change in fair value of contingent consideration payable — 435 Intangible assets 1 — Property, plant and equipment 119 111 Net operating loss carry-forwards 1,513 3,364 Total non-current 1,633 6,592 Less: valuation allowance (414 ) (881 ) Non-current 1,219 5,711 Non-current Intangible assets 1,491 9,236 Withholding tax on undistributed earnings 2,801 3,011 Unrealized gain on available-for-sale 26 446 Total non-current 4,318 12,693 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$163, US$163 and US$158 as of September 30, 2016, 2017 and 2018, 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, 2016 163 Foreign currency adjustment — Balance - September 30, 2017 163 Foreign currency adjustment (5 ) Balance - September 30, 2018 158 The Group does not anticipate any significant change in unrecognized tax benefits within 12 months from September 30, 2018. 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, 2018 | |
EMPLOYEE DEFINED CONTRIBUTION PLAN | 20. 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$7,113, US$8,591 and US$12,297 for the years ended September 30, 2016, 2017 and 2018, respectively. Obligations for contributions to defined contribution retirement plans for full-time employee in Hong Kong, including contributions payable under the Hong Kong Mandatory Provident Fund Schemes Ordinance, are recognized as expenses in the consolidated statements of operations as incurred, which the amounts have been immaterial for the years ended September 30, 2016, 2017 and 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable one-year US$ Years ending September 30, 2019 10,924 2020 7,709 2021 5,031 2022 3,936 2023 and thereafter 26,488 54,088 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, 2016, 2017 and 2018, total rental expenses for all operating leases amounted to US$6,857, US$6,607 and US$10,608, 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 borrowings As disclosed in Note 15, on December 18, 2017 and January 5, 2018, the Company entered into two loan agreements with Hang Seng Bank for a total of US$35,300 term loan facility. The Company further extended the existing loan with BEA on June 22, 2018 for an amount of US$15,081 term loan facility. The total facility was secured by term deposits of RMB355.3 million (US$51,736) provided by Champion Technology, which was recorded as “restricted cash” on the consolidated balance sheet as of September 30, 2018. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Sep. 30, 2018 | |
NONCONTROLLING INTERESTS | 22. NONCONTROLLING INTERESTS Noncontrolling interests represent the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The accompanying consolidated financial statements include all assets, liabilities, revenues and expenses at their consolidated amounts, which include the amounts attributable to the Company and the noncontrolling interest. The Company recognizes as a separate component of equity and earnings on the portion of income or loss attributable to noncontrolling interests based on the portion of the entity not owned by the Company. The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2016, 2017 and 2018. Zhengbao Yucai NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ Balance as of September 30, 2016 4,981 6,255 — — 11,236 Capital contribution from noncontrolling interest shareholders 11,074 — — — 11,074 Foreign currency translation adjustment attributed to noncontrolling interest shareholders 362 24 — — 386 Gain attributed to noncontrolling interest shareholders 494 839 — — 1,333 Balance as of September 30, 2017 16,911 7,118 — — 24,029 Capital contribution from noncontrolling interest shareholders 60 — — — 60 Noncontrolling interest shareholders resulting from new acquisitions — — 1,262 41,336 42,598 Foreign currency translation adjustment attributed to noncontrolling interest shareholders (447 ) (229 ) (43 ) (1,154 ) (1,873 ) (Loss) gain attributed to noncontrolling interest shareholders (1,205 ) 1,830 (160 ) 212 677 Balance as of September 30, 2018 15,319 8,719 1,059 40,394 65,491 In January 2016, the Group sold 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 On December 8, 2016, Zhengbao Yucai submitted a revised share issuance plan (“Revised Plan”) to China’s New Third Board. Under the Revised Plan, Zhengbao Yucai proposed 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. Total fund raised by the share issuance were RMB83.3 million (US$11,900). Pursuant to the Revised Plan, Mr. Zhengdong Zhu, chairman and CEO of the Group, and Mr. Liankui Hu, an independent director of the Group, subscribed 63.8% and 24.6%, respectively, of the total shares issued. The share issuance plan was completed in March 2017. Immediately following the share issuance, the equity interest of the Group in Zhengbao Yucai was reduced from 60.1% to 35.8%. The Group recorded an increase of US$1,090 in the Company’s additional paid-in Mr. Zhengdong Zhu, Mr. Liankui Hu, and a partnership, in which Mr. Zhengdong Zhu holds a majority interest, collectively have a combined equity interest in Zhengbao Yucai of 59.5%. Mr. Zhengdong Zhu, Mr. Liankui Hu, and the partnership, therefore, entered into an acting-in-concert In May 2016, the Group acquired 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 and since September 30, 2016. On March 29, 2017, Champion Technology entered into a definitive agreement to sell its 80% equity interest in NetinNet to its controlled associate company, Zhengbao Yucai, for a total cash consideration of RMB221 million (US$33,217). The restructuring was considered a transaction under common control and was approved by the board of directors of Champion Technology and NetinNet. No gain/loss was recorded from this restructuring. On July 13, 2017, NetinNet has completed its Industrial and Commercial Alteration Registration and met the requirements for restructuring. After the restructuring, the corporate structure has changed such that NetinNet became the subsidiary of Zhengbao Yucai. Immediately after the restructuring, Zhengbao Yucai owns 80% of NetinNet and accounts for the shareholding of NetinNet on a consolidated basis. As a result, NetinNet continues to be consolidated within the Company through Zhengbao Yucai. On November 1, 2017, the Group acquired 80% of equity interest in Jiangsu Asset. The noncontrolling interest of 20% equity interest over Jiangsu Asset has been included in the consolidated financial statements as of September 30, 2018. On July 10, 2018, the Group entered into a new share transfer agreement, by exercising a portion of the call option, to purchase additional 11% equity interest of Beijing Ruida, refer to Note 3, for a cash consideration of RMB39.6 million (US$5,931), subject to price adjustment under certain pre-agreed The schedule below discloses the effect of changes in the Company’s ownership interest on the Company’s equity: Years ended September 30, 2016 2017 2018 US$ US$ US$ Net income attributable to China Distance Education Holdings Limited 26,290 14,935 11,626 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in — 1,090 — Increase in the Group’s additional paid-in — — 29 Changes from net income attributable to China Distance Education Holdings Limited’s shareholders and transfer from noncontrolling interests 26,290 16,025 11,655 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2018 | |
SEGMENT REPORTING | 23. 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. The Group identified three operation segments, including professional education services, business start-up The Group operates primarily 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 2017 2018 US$ US$ US$ Net revenues 117,548 130,988 166,668 Professional education services 110,137 114,190 150,484 Business start-up 4,375 5,276 4,608 Sale of learning simulation software 3,036 11,522 11,576 Operating costs and expenses: Cost of sales (48,334 ) (57,412 ) (87,883 ) Professional education services (44,473 ) (50,168 ) (79,168 ) Business start-up (1,915 ) (2,069 ) (2,644 ) Sale of learning simulation software (1,946 ) (5,175 ) (6,071 ) Selling and marketing (24,517 ) (34,910 ) (44,717 ) Professional education services (22,556 ) (30,696 ) (39,698 ) Business start-up (688 ) (869 ) (1,127 ) Sale of learning simulation software (1,273 ) (3,345 ) (3,892 ) General and administrative (13,525 ) (15,955 ) (16,760 ) Professional education services (12,049 ) (12,890 ) (14,548 ) Business start-up (776 ) (1,034 ) (896 ) Sale of learning simulation software (700 ) (2,031 ) (1,316 ) Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Total operating costs and expenses (89,629 ) (111,790 ) (153,853 ) Professional education services (79,078 ) (93,754 ) (133,414 ) Business start-up (3,379 ) (3,972 ) (4,667 ) Sale of learning simulation software (3,919 ) (10,551 ) (11,279 ) Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Other operating income 806 1,912 3,051 Professional education services 570 184 643 Business start-up 2 91 76 Sale of learning simulation software 234 1,637 2,332 Operating income (loss) 28,725 21,110 15,950 Professional education services 31,629 20,620 17,797 Business start-up 998 1,395 17 Sale of learning simulation software (649 ) 2,608 2,629 Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Segment assets 148,920 224,551 328,925 Professional education services 93,609 133,836 236,496 Business start-up 13,262 45,569 46,205 Sale of learning simulation software 42,049 45,146 46,224 Total assets 148,920 224,551 328,925 Amortization and depreciation 3,639 4,790 6,299 Professional education services 2,792 3,001 4,479 Business start-up 60 36 36 Sale of learning simulation software 787 1,753 1,784 (Loss) gain from equity method investments (91 ) (153 ) 172 Professional education services (91 ) (153 ) (58 ) Business start-up — — 230 Sale of learning simulation software — — — |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Sep. 30, 2018 | |
NET INCOME PER SHARE | 24. 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, 2016 2017 2018 US$ US$ US$ Numerator: Net income 26,290 14,935 11,626 - allocated to ordinary share - basic 26,184 14,891 11,583 - allocated to nonvested restricted share - basic 106 44 43 Denominator: Weighted average number of ordinary shares outstanding 136,497,929 131,432,211 132,363,620 Weighted average number of nonvested restricted share 555,489 400,644 487,685 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 1,412,526 1,370,400 265,850 Weighted average ordinary shares outstanding used in computing diluted net income per share 138,465,944 133,203,255 133,117,155 Basic net income per share 0.19 0.11 0.09 Basic net income per nonvested restricted share 0.19 0.11 0.09 Diluted net income per share 0.19 0.11 0.09 Diluted net income per nonvested restricted share 0.19 0.11 0.09 |
SHARE INCENTIVE PLAN
SHARE INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2018 | |
SHARE INCENTIVE PLAN | 25. 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 November 18, 2014, the Company’s board of directors approved to grant certain employees 2,800,000 share options with an exercise price per share at US$3.74. These options vest subject to a four-year vesting schedule with 25% vesting in each year. On August 23, 2017, the Company’s board of directors approved the modification of the exercise price of options granted on November 18, 2014 under Employee Stock Ownership Plan (“ESOP”). The exercise price was modified from US$3.32 to US$1.81 per share, which was determined by the closing price of New York Stock Exchange (“NYSE”) on the approval day. The Group used binomial option pricing model to measure the fair value of the incremental compensation cost, which is the excess of the fair-value-based measure of the modified award on the date of modification over the fair value of the original award immediately before the modification. The incremental fair value was recorded as compensation cost on the date of modification for vested awards and over the remaining service vesting period for unvested awards. A summary of option activity as of September 30, 2016, 2017 and 2018, and changes during the years ended September 30, 2016, 2017 and 2018 are presented below: Share option granted to employees and non-executive Number of Weighted- Weighted- Aggregated Outstanding, September 30, 2015 2,563,600 US$ 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 Exercised — — Forfeited (58,000 ) US$ 3.32 Outstanding, September 30, 2017 2,025,600 US$ 2.85 6.53 — Exercised (895,148 ) US$ 1.66 Forfeited (71,352 ) US$ 1.17 Outstanding, September 30, 2018 1,059,100 US$ 1.39 5.58 718 Expected to vest, September 30, 2018 526,000 US$ 170 6.14 198 Exercisable at September 30, 2018 533,100 US$ 1.09 5.02 520 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, 2015 125,300 US$ 0.15 2.55 382 Exercised (68,300 ) — Outstanding, September 30, 2016 57,000 — 1.55 184 Exercised — — Outstanding, September 30, 2017 57,000 — 0.55 96 Exercised (57,000 ) — Outstanding, September 30, 2018 — — — — Exercisable at September 30, 2018 — — — — The Company declared a cash dividend of US$0.225, US$0.1125 and US$0.1125 per ordinary share on its outstanding shares to shareholders on the record date in the years ended September 30, 2016, 2017 and 2018, respectively. Refer to Note 26 for the disclosure of cash dividend. According to the terms of the Prior and New Plan, the exercise price was duly reduced for all the outstanding options, subject to the approval of the Company’s board of directors. The exercise price was reduced by US$0.225, nil and US$0.1125 for all of the outstanding options on the record date in the years ended September 2016, 2017 and 2018. The change in exercise price incurred in the year of dividend declared and therefore was not reflected in the weighted-average exercise price at the beginning of the year. The total intrinsic value of options exercised during the years ended September 30, 2016, 2017 and 2018 were US$372, US$0 and US$749, respectively. As of September 30, 2018, the unrecognized share-based compensation cost related to share options amounted to approximately US$106. This compensation cost is expected to be recognized over a weighted-average vesting period of 0.13 year. Nonvested restricted shares 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 the closing price of the Company’s ADSs 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 over the requisite service period of one year. On December 3, 2016, 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$3.03, which was determined based on the closing price of the Company’s ADSs on NYSE on December 3, 2016. This grant resulted in a total share-based compensation of US$379, which was recognized over the requisite service period of one year. On December 3, 2017, 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$2.21, which was determined based on the closing price of the Company’s ADSs on NYSE on December 3, 2017. This grant resulted in a total share-based compensation of US$276, which was recognized over the requisite service period of one year. On January 17, 2018, the Company granted 343,600 nonvested restricted shares to executive directors, officers and employees under the New Plan. These nonvested restricted shares are subject to a two-year A summary of the nonvested restricted shares activities for the years ended September 30, 2016, 2017 and 2018 is as follows: Number of Weight average Aggregated US$ 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 Granted 125,000 3.03 Vested (260,593 ) 3.75 Nonvested restricted shares outstanding at September 30, 2017 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested restricted shares outstanding at September 30, 2018 450,497 2.49 933 Nonvested restricted shares expected to vest at September 30, 2018 450,497 2.49 933 The Company recorded share-based compensation expenses of US$992, US$895 and US$1,075 for the years ended September 30, 2016, 2017 and 2018, respectively. As of September 30, 2018, there was US$706 of share-based compensation related to nonvested shares that is expected to be recognized over a weighted average period of 1.0 year. Share-based compensation expense Total share-based compensation expense of share-based awards granted to employees, non-employees non-executive As of September 30, 2016 2017 2018 US$ US$ US$ Cost of sales 162 164 161 General and administrative expenses 1,769 1,862 2,065 Selling expenses 84 85 80 2,015 2,111 2,306 |
CASH DIVIDEND
CASH DIVIDEND | 12 Months Ended |
Sep. 30, 2018 | |
CASH DIVIDEND | 26. CASH DIVIDEND 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 On November 29, 2016, the Company approved and declared a cash dividend of US$0.1125 per ordinary share on its total 131,854,773 outstanding shares as of the close of trading on January 6, 2017, resulting in payments totaling US$14,839 to shareholders. Such dividend was recorded as a reduction against retained earnings. On November 28, 2017, the Company approved and declared a cash dividend of US$0.1125 per ordinary share on its total 132,804,973 outstanding shares as of the close of trading on January 12, 2018, resulting in payments totaling US$14,949 to shareholders. Such dividend was recorded as a reduction against retained earnings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2018 | |
SUBSEQUENT EVENTS | 27. SUBSEQUENT EVENTS (1) On November 12, 2018, the Group’s Board of directors approved to dispose 60% equity interest in Champion Tax Advisory to Champion Tax Advisory’s key employees for a total consideration of RMB35.9 million (US$5,224), which will be paid in three installments over two years . Champion Tax Advisory operates a “Tax School Program” to provide tax related courses for tax and accounting professionals. On December 29, 2018, the Group received the first installment amounting to RMB13.9 million (US$2,020). The Group is in the process of assessing the accounting impact of this transaction. (2) On December 28, 2018, the Company granted 353,200 nonvested restricted shares to executive directors, officers and employees. These nonvested restricted shares are subject to a two-year (3) In January 2019, the Company granted 451,968 nonvested restricted shares to the co-chief one-year |
Financial Statement Schedule I
Financial Statement Schedule I | 12 Months Ended |
Sep. 30, 2018 | |
Financial Statement Schedule I | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS (U.S. dollars in thousands, except share data and per share data) As of September 30, 2017 2018 US$ US$ ASSETS Current assets Cash and cash equivalents 6,021 2,223 Prepayment and other current assets 271 271 Amounts due from subsidiaries 10,272 8,669 Total current assets 16,564 11,163 Non-current Long-term investment 911 2,733 Investment in subsidiaries 150,935 161,896 Total non-current 151,846 164,629 Total assets 168,410 175,792 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities 1,521 1,144 Amounts due to subsidiaries 88,141 79,836 Bank borrowings 29,965 50,538 Total current liabilities 119,627 131,518 Total liabilities 119,627 131,518 Shareholders’ equity Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 131,854,773 and 133,275,521 shares issued and outstanding at September 30, 2017 and 2018, respectively) 13 13 Additional paid-in 19,097 21,557 Accumulated other comprehensive loss (3,367 ) (7,013 ) Retained earnings 33,040 29,717 Total equity 48,783 44,274 Total liabilities and equity 168,410 175,792 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS (U.S. dollars in thousands, except share data and per share data) For the years ended September 30, 2016 2017 2018 US$ US$ US$ Cost of sales (162 ) (164 ) (161 ) Selling expenses (84 ) (85 ) (80 ) General and administrative expenses (2,591 ) (3,250 ) (2,887 ) Operating loss (2,837 ) (3,499 ) (3,128 ) Equity in income of subsidiaries and variable interest entities 27,902 19,287 14,763 Interest income 2 1 1 Interest expense (1,131 ) (1,362 ) (2,110 ) Exchange gain 2,354 508 2,100 Net income 26,290 14,935 11,626 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, 2016 2017 2018 US$ US$ US$ Net income 26,290 14,935 11,626 Other comprehensive loss Foreign currency translation adjustment (6,153 ) (122 ) (6,245 ) Total comprehensive income 20,137 14,813 5,381 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, 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 17) (11,326,460 ) (1 ) (21,289 ) — (15,470 ) (36,760 ) Options exercised 524,300 — 1,659 — — 1,659 Stock-based compensation expense (Note 25) 125,000 — 2,015 — — 2,015 Dividends (Note 26) — — (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 Net income for the year — — — — 14,935 14,935 Foreign currency translation adjustments — — — (122 ) — (122 ) Unrealized gain on available-for-sale — — — 173 — 173 Stock-based compensation expense (Note 25) 125,000 — 2,111 — — 2,111 Dividends (Note 26) — — — (14,839 ) (14,839 ) Capital contribution from noncontrolling interests — — 1,090 — — 1,090 Repayment of loan to optionees in connection with exercise of options — — 199 — — 199 Balance as of September 30, 2017 131,854,773 13 19,097 (3,367 ) 33,040 48,783 Net income for the year — — — — 11,626 11,626 Foreign currency translation adjustments — — — (6,245 ) — (6,245 ) Unrealized gain on available-for-sale — — — 2,599 — 2,599 Options exercised 952,148 — 1,489 — — 1,489 Stock-based compensation expense (Note 25) 468,600 — 2,306 — — 2,306 Dividends (Note 26) — — — — (14,949 ) (14,949 ) Capital contribution from noncontrolling interests — — 29 — — 29 Loan to optionees in connection with exercise of options — — (1,557 ) — — (1,557 ) Repayment of loan to optionees in connection with exercise of options — — 193 — — 193 Balance as of September 30, 2018 133,275,521 13 21,557 (7,013 ) 29,717 44,274 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, 2016 2017 2018 US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net income 26,290 14,935 11,626 Adjustments to reconcile net income to net cash generated from operating activities: Equity in profit of subsidiaries and variable interest entities (27,902 ) (19,287 ) (14,763 ) Share-based compensation 2,015 2,111 2,306 (Decrease) increase in accrued expenses and other liabilities (29 ) 1,263 (377 ) (Increase) decrease in amounts due from subsidiaries (5,120 ) (1,263 ) 1,604 (Increase) decrease in prepayments and other assets (3 ) 12 — Increase (decrease) in amounts due to subsidiaries 65,631 6,059 (8,305 ) Exchange (gain) loss (925 ) 553 (1,666 ) Net cash generated from (used in) operating activities 59,957 4,383 (9,575 ) Purchase of available-for-sale — (911 ) — Net cash used in investing activity — (911 ) — Repurchase of ordinary shares (36,760 ) — — Proceeds from share options exercised by employees 1,659 — 1,489 Loan to optionees in connection with exercise of options (1,663 ) — (1,558 ) Repayment of loan to optionees in connection with exercise of options 177 199 193 Capital contribution from noncontrolling interests — 1,090 29 New short-term loans drawn down — 14,414 20,573 Dividends paid to shareholders (31,138 ) (14,839 ) (14,949 ) Net cash (used in) generated from financing activities (67,725 ) 864 5,777 Net (decrease) increase in cash and cash equivalents and restricted cash (7,768 ) 4,336 (3,798 ) Cash and cash equivalents and restricted cash at beginning of the year 9,453 1,685 6,021 Cash and cash equivalents and restricted cash at end of the year 1,685 6,021 2,223 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, 2018. 2. INVESTMENTS IN SUBSIDIARIES AND VIEs 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$150,935 and US$161,896 at September 30, 2017 and 2018, respectively. The Parent Company’s share of equity in income in subsidiaries and the VIEs recognized in years ended September 30, 2016, 2017 and 2018 were US$27,902, US$19,287 and US$14,763, respectively. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2018 | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions reflected in the Group’s financial statements include, but are not limited to, revenue recognition, consolidation of VIEs, income tax, impairment of goodwill and long-term assets, impairment of long-term investments, change in fair value of contingent consideration, share-based compensation expenses and purchase price allocation for business acquisition. Actual results could materially differ from those estimates. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries. All profits, transactions and balances among the Company, its subsidiaries, its VIEs and VIEs’ subsidiaries have been eliminated upon consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company, CDEL Hong Kong, Pencil, China Healthcare Investment and China Healthcare Education’s functional currencies are the United States dollars (“US$”). 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 loss, a component of the 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 assets acquired, the liabilities assumed, and any noncontrolling interests of the acquiree at the acquisition date, if any, are measured at their fair values as of the acquisition date. Goodwill is recognized and measured as the excess of the total consideration transferred plus the fair value of any noncontrolling interest of the acquiree and fair value of previously held equity interest in the acquiree, if any, at the acquisition date over the fair values of the identifiable net assets acquired. Common forms of the consideration made in acquisitions include cash and common equity instruments. Consideration transferred in a business acquisition is measured at the fair value as of the date of acquisition. Acquisition-related expenses and restructuring costs are expensed as incurred. 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 is recorded as a liability. It is subsequently carried at fair value with changes in fair value reflected in earnings. In a business combination achieved in stages, the previously held equity interest is remeasured in the acquiree immediately before obtaining control at its acquisition-date fair value and the remeasurement gain or loss, if any, is recognized in the consolidated statements of operations. |
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. |
Restricted cash | Restricted cash Restricted cash represents deposits not readily available to the Company. Restricted cash as of September 30, 2017 and 2018 represented cash pledged as security for bank borrowings. Refer to Note 15. |
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 net realizable value. Cost is determined using the weighted average cost 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, restricted cash, accounts receivable, short-term and long-term investments, bank borrowings, long-term bank borrowing, amount due to a related party, refundable fees and accounts payable. Available-for-sale held-to-maturity year-end. |
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. Construction in progress The Group constructs certain of its property and equipment. Construction in progress represents the costs incurred in connection with the construction of property and equipment. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location and in the condition necessary for its intended use. Depreciation is recorded at the time the assets are ready for intended use. |
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, 2017 and 2018, 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 3~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5~7 years Others 3.5~8 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 recognizes an impairment loss based on the fair value of the assets. The Group did not record any impairment loss related to long-lived assets for the years ended September 30, 2016, 2017 and 2018. 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 investments, equity method investments, and available-for-sale (a) Cost method investments For investee companies 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 investments 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 investments. 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 investments during the years ended September 30, 2016, 2017 and 2018. (b) Equity method investments 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 estimated the fair value of the investee company based on comparable quoted price for similar investment in active market, if applicable, or discounted cash flow approach which requires significant judgments, including the estimation of future cash flows, which is dependent on internal forecasts, the estimation of long term growth rate of a company’s business, and the determination of the weighted average cost of capital. The Group recorded nil, US$679, and US$343 impairment loss on its equity method investments during the years ended September 30, 2016, 2017 and 2018. (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 recorded nil, nil, and US$2,492 impairment loss 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 online courses using the non-refundable pre-agreed For online courses using the refundable course model (i.e. elite classes), if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement, they are entitled to either a full refund or the right to retake the course. The participants must notify the Group within a pre-agreed 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 online courses through the use of prepaid study cards which are purchased from distributors. The Group sells to its regional distributors prepaid study cards at a discount to the face value of the cards. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the online course is available to the customers, which generally is from the enrollment date to the completion of the relevant professional examination date. Sales of prepaid study cards that are not activated for course enrollment are recognized as revenues upon expiration of the cards. Prepaid study cards that have been activated but have not been used to enroll online courses typically do not have an expiry date and will be deferred until they are used to enroll in online courses. Participants who enroll with the Company directly are eligible to a refund within a 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 online course is available to the user who enrolls using the study card or recognized as revenue immediately if the related online course has been completed or the study card has expired. The Group provides student enrollment services and online platform to government agencies which use the Group’s online platform to conduct continuing education services. The Group earns service fees as a percentage of total tuition fees based on the agreements entered into with the government agencies. Service fees are initially recorded as deferred revenue and are recognized as revenue when course participants complete the stipulated study hours and take the examinations, or on a straight line basis over the subscription period based on the terms of the agreements. The Group also operates an Online Open Learning Platform, a proprietary education platform that allows other parties to share their educational content or deliver live courses online. After passing the Group’s quality control reviews, experts and scholars of various fields can either record their own lectures and post them on the Open Learning Platform website, or deliver real-time audio-video courses. The group offers coaching services to these lecturers and deploys a user evaluation system to ensure that these courses meet its quality and effectiveness standards. The Group pays the experts and scholars certain percentage of the service fee they received from the end users. Revenues from Open Learning Platform are recognized on gross basis, as the Group is the primary obligor in the arrangement and bears the risks and rewards, including the quality control and the services delivered. For the years ended September 30, 2016, 2017 and 2018, the Group recognized revenues, net of business tax and related surcharges, in connection with expired study cards amounting to US$161, US$132 and US$93, respectively. The online courses service is provided by Beijing Champion and its subsidiaries which are subject to approximately 6% value added tax and related surcharges on and after May 1, 2016, and subject to approximately 3% business tax and related surcharges before May 1, 2016. The Group records revenues net of these taxes in the consolidated statements of operations. Such business tax and related surcharges for the years ended September 30, 2016, 2017 and 2018 were US$3,216, US$390 and US$1,075, respectively. Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are deferred until cash is collected. Inventory costs of products delivered to distributors for which revenues have been deferred are presented as “deferred costs” on the consolidated balance sheets. The Group also sells books and reference materials together with study cards which allow the customers to take a certain number of online courses for no additional charge or by paying at a discount. These sales are considered arrangements with two deliverables, consisting of the delivery of books and reference materials and the online courses service. Because neither vendor-specific objective evidence nor third-party evidence of fair value of the deliverables exist, the Group allocates revenue to each deliverables based on their relative selling price. Other revenues Other revenues include sales of 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 accounting 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. Starting from May 1, 2016, the Pilot Program became effective at a full scale in the PRC. 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. Champion Technology was 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. 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, which is further extended to December 31, 2020. 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 filing 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 Since May 2018, in accordance with Cai Shui [2018] No.32, the VAT rate decreased to 16% of the gross sales for general VAT payer. Therefore, for general VAT payer, VAT on sales is calculated at 16% on revenue from product sales and paid after deducting input VAT on purchases since May 1, 2018. The revenue earned from the sales of software of the Group is subject to 16% VAT rate. |
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$11,356, US$17,833 and US$14,785 for the years ended September 30, 2016, 2017 and 2018, 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$763, US$1,134 and US$1,852 for the years ended September 30, 2016, 2017 and 2018, 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 more-likely-than-not |
Share-based compensation | Share-based compensation Share-based compensation with employees, officers and non-executive paid-in Share-based compensation with non-employee non-employee’s |
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, unrealized gain or loss on available-for-sale |
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$52,388 and US$28,021, which were denominated in RMB, at September 30, 2017 and 2018, respectively, representing 86.6% and 90.9% of the cash and cash equivalents at September 30, 2017 and 2018, 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, 2018, 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, 2018. Primarily due to the long payment cycles of government agencies, the Group had one customer that accounted for 4.4% and 8.5% of the Group’s carrying amount of accounts receivable as of September 30, 2017 and 2018, respectively. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-11, In November 2015, the FASB issued ASU 2015-17: non-current In March 2016, the FASB issued ASU No. 2016-07, step-by-step available-for-sale In March 2016, the FASB issued ASU 2016-09, In November 2016, the FASB issued a new pronouncement, ASU 2016-18, |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In May 2014, the FASB issued ASU 2014-09, 2014-09 2014-09 2016-10, 2016-10 2014-09: 2016-10 2014-09. The Group expects to adopt ASU 2014-09 2014-09 In January 2016, the FASB issued a new pronouncement ASU 2016-01 ASU 2016-01 2018-03, 825-10): ASU 2016-01 2018-03 In February 2016, the FASB issued ASU No. 2016-02, right-of-use In July 2018, the FASB issued ASU 2018-11, 2016-02, 2016-02, In June 2016, the FASB issued ASU 2016-13, In January 2017, the FASB issued ASU 2017-01: In January 2017, the FASB issued ASU 2017-04: In June 2018, the FASB issued ASU 2018-07: In August 2018, the FASB issued ASU 2018-13 2018-13 2018-13 2018-13 2018-13 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Details of Company's Subsidiaries and Variable Interest Entities | As of September 30, 2018, details of the Company’s subsidiaries, its VIEs and VIEs’ subsidiaries were as follows: Company Date of establishment 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 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 Zhongxi Champion Healthcare Education Technology Co., Ltd. (“Zhongxi Healthcare Education”) December 14, 2015 PRC 100% Inactive Xiamen Zhongxi Champion Education. Technology Co., Ltd (“Xiamen Zhongxi Education”) November 13, 2017 PRC 100% Provision of technical support and consultancy services and course production Shanghai Xidong Information Technology Co., Ltd. (“Xidong Information Technology”) June 21, 2017 PRC 100% Provision of software development and information technology services Beijing Zhengbao Yucai Education Technology Co., Ltd. (“Zhengbao Yucai”) February 19, 2009 PRC 35.76% (Note 22) Provision of start-up Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC 35.76%* Provision of start-up Xiamen NetinNet Software Co., Ltd (“Xiamen NetinNet”) August 15, 2005 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) August 19, 2011 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance “) April 7, 2005 PRC 28.608%* Provision of learning simulation software production Beijing NetinNet Technology Co., Ltd. (“Beijing NetinNet”) June 25, 2018 PRC 28.608%* Provision of learning simulation software production Beijing Chuang Qingchun Chuang Weilai Education Technology Co., Ltd. (“Chuang Qingchun “) February 28, 2017 PRC 21.456%* Provision of education consulting services Shanghai Huzheng Education Technology Co., Ltd. (“Huzheng Education “) May 2, 2017 PRC 35.76%* Provision of start-up Guangdong Zhengbao Yucai Education Co., Ltd. (“Guangdong Yucai”) June 23, 2017 PRC 21.456%* Provision of start-up JinMaLan (Tianjin) Business Start-up December 08, 2017 PRC 25.032%* Provision of start-up JinMaLan (Anqing) Business Start-up July 07, 2018 PRC 21.456%* Provision of start-up 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 *Note: These entities are subsidiaries of Zhengbao Yucai. 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 Beijing Champion International Education Technology Co., Ltd. (“Champion Int’l Education”) October 12, 2016 PRC Nil Provision of online education services and sales of books and reference materials Jiangsu Zhengbao Asset Financial Advisory Co., Ltd. (“Jiangsu Asset) May 08, 2017 PRC Nil Provision of financial and tax advisory and accounting service Jiangsu Caishuibang Enterprise Management Co., Ltd. (“Caishuibang”) June 16, 2015 PRC Nil Provision of development of web-based Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) March 11, 2016 PRC Nil Provision of legal profession services Shenzhen Ruida Chengtai Education Technology Co., Ltd. (“Shenzhen Ruida”) May 10, 2016 PRC Nil Provision of legal profession services Guangzhou Ruida Chengtai Education Technology Co., Ltd. (“Guangzhou Ruida”) April 14, 2016 PRC Nil Provision of legal profession services Hangzhou Ruitai Education Technology Co., Ltd. (“Hangzhou Chengtai”) April 19, 2016 PRC Nil Provision of legal profession services Nanjing Ruida Chengtai Education Technology. Co., Ltd. (“Nanjing Chengtai”) March 30, 2016 PRC Nil Provision of legal profession services Beijing Youbang Culture and Art Training School (“Beijing Youbang”) May 18, 2005 PRC Nil Provision of legal profession services |
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, 2017 and 2018 and for each of the three years in the period ended September 30, 2018 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIEs and VIEs’ subsidiaries: As of September 30, 2017 2018 US$ US$ Cash and cash equivalents 27,098 20,477 Prepayment and other current assets 8,214 13,365 Total current assets 126,892 132,527 Total assets 179,969 258,535 Deferred revenue 49,575 77,299 Total current liabilities 85,974 130,976 Total liabilities 85,974 130,976 Total equity 93,995 127,559 For the years ended September 30, 2016 2017 2018 US$ US$ US$ Revenues 109,947 114,371 151,146 Net income 40,840 31,379 29,532 Net cash provided by operating activities 27,310 22,100 44,054 Net cash used in investing activities (3,938 ) (31,403 ) (44,414 ) Net cash used in financing activities — (5,506 ) (5,706 ) Effects of exchange rate changes (2,791 ) (5,435 ) (555 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 3~11 years Courseware 1~5 years Website 5 years Business contracts 3~5 years Copyrights 5~7 years Others 3.5~8 years |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Unaudited Pro Forma Result of Operations | The pro forma results have been prepared for comparative purpose only and do not purport to be indicative of the results of operations which would have resulted had the significant acquisition occurred as of October 1, 2016, nor are they indicative of future operating results. Years ended September 30, 2017 2018 US$ US$ Pro forma net revenue 28,494 27,568 Pro forma net income attributable to China Distance Education Holdings Limited 460 14 Pro forma net income per ordinary share-basic 0.12 0.09 Pro forma net income per ordinary share- diluted 0.12 0.09 |
Xiamen NetinNet | |
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 |
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |
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 2,526 Other current assets 753 Property, plant and equipment 1,984 25 years Intangible assets Customer Relationship 545 8 years Others 90 1-5 years Goodwill 3,547 Other current liabilities (1,550 ) Deferred tax liabilities (574 ) Noncontrolling interest (1,262 ) Total 6,059 |
Summary of Unaudited Pro Forma Result of Operations | The pro forma results have been prepared for comparative purpose only and do not purport to be indicative of the results of operations which would have resulted had the significant acquisition occurred as of October 1, 2016, nor are they indicative of future operating results. Years ended September 30, 2017 2018 US$ US$ Pro forma net revenue 11 2,581 Pro forma net loss attributable to China Distance Education Holdings Limited (54 ) (561 ) Pro forma net income per ordinary share-basic 0.11 0.09 Pro forma net income per ordinary share- diluted 0.11 0.09 |
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | |
Summary of Purchase Price Allocation | The purchase price was allocated at the date of acquisition as follows: US$ Amortization Cash 1,639 Other current assets 9,578 Property, plant and equipment 118 5 years Intangible assets Supplier Contracts 25,118 5.5 years Trademark 2,741 3 years Courseware 4,478 3.5 years Software 344 5.3 years Others 210 2.5-5.5 years Goodwill 48,931 Other current liabilities (684 ) Deferred tax liabilities (8,115 ) Noncontrolling interest (41,336 ) Total 43,022 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Short-term Investments | Short-term investments consisted of the following: As of September 30, 2017 2018 US$ US$ Held-to-maturity 5,261 2,634 Available-for-sale — 14,439 5,261 17,073 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accounts Receivable, Net | Accounts receivable, net consisted of the following: As of September 30, 2017 2018 US$ US$ Accounts receivable 6,716 8,622 Less: allowance for doubtful accounts (1,191 ) (1,342 ) Accounts receivable, net 5,525 7,280 |
Movement Of Allowance For Doubtful Accounts | Movement of allowance for doubtful accounts was as follows: As of September 30, 2017 2018 US$ US$ Balance at beginning of the year 661 1,191 Increase of the allowance for doubtful accounts 516 199 Foreign currency adjustment 14 (48 ) Balance at end of the year 1,191 1,342 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Inventories | Inventories consisted of the following: As of September 30, 2017 2018 US$ US$ Books and other goods 884 2,010 Paper and other raw materials 287 900 Less: inventory provisions for slow-moving and obsolescence (307 ) (128 ) 864 2,782 |
PREPAYMENT AND OTHER CURRENT _2
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Prepayment And Other Current Assets | Prepayment and other current assets consisted of the following: As of September 30, Notes 2017 2018 US$ US$ Prepaid expenses 4,217 6,812 Advance to suppliers (1 ) 2,020 4,468 Staff advances (2 ) 1,015 1,073 Funds receivable (3 ) 628 1,750 Interest receivable 526 1,380 Deposits 1,242 593 Others 791 978 Prepayment and other current assets, net 10,439 17,054 (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 course fees are treated as a receivable until the cash is received. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Property, Plant And Equipment | Property, plant and equipment consisted of the following: As of September 30, 2017 2018 US$ US$ Buildings 7,271 9,111 Electronic and office equipment 15,208 17,687 Leasehold improvement and building improvement 1,898 2,291 Motor vehicles 2,239 2,099 Total 26,616 31,188 Less: Accumulated depreciation (12,594 ) (15,215 ) Construction in progress — 11,999 14,022 27,972 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Goodwill | Goodwill is comprised of the following: Years ended September 30 2017 2018 Professional Business start-up Sale of Total Professional Business start-up Sale of Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,396 1,688 22,308 29,392 5,408 1,692 22,359 29,459 Acquisition for the year — — — — 52,478 — — 52,478 Exchange difference 12 4 51 67 (1,672 ) (50 ) (699 ) (2,421 ) Ending balance 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 Accumulated impairment loss — — — — — — — — Goodwill, net 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Composition Of Other Intangible Assets | The balance of other intangible assets consisted of the following: As of September 30, 2017 2018 US$ US$ Computer software 4,514 5,512 Trademarks and domain names 3,031 5,624 Courseware 448 4,788 Business contracts 489 24,891 Copyrights 10,397 10,087 Others 200 907 Total intangible assets 19,079 51,809 Less: Accumulated amortization Computer software (3,835 ) (4,037 ) Trademarks and domain names (1,475 ) (1,815 ) Courseware (448 ) (711 ) Business contracts (489 ) (1,461 ) Copyrights (2,685 ) (4,023 ) Others (200 ) (262 ) Accumulated amortization (9,132 ) (12,309 ) Intangible assets, net 9,947 39,500 |
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$ 2019 8,752 2020 8,692 2021 8,418 2022 6,528 2023 5,414 2024 and thereafter 1,696 39,500 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Schedule of Long-term Investments | Long-term investments consisted of the following: As of September 30, 2017 2018 US$ US$ Cost method investments: Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) (a) 32,089 — Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (b) 4,986 — Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing teacheredu”) (c) — 11,655 Beijing Yousian Technology Co., Ltd. (“Beijing Yousian”) (d) — 3,276 Other cost method investments (e) 1,308 1,997 Equity method investment: Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (b) — 6,819 Beijing Taixing #1 Investment Management Centre (LP) (“Beijing Taixing #1 LP”) (f) — 2,184 Other equity method investments (g) 951 931 Available-for-sale Beijing Piyingke Technology Co., Ltd. (“Piyingke Technology”) (h) 2,548 — Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (i) — 3,494 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (j) 813 2,326 Other available-for-sale 936 1,155 Total 43,631 33,837 (a) In June 2017, the Group invested RMB192 million (US$28,858) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China’s Legal Professional Qualification Examination. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance The investment agreement between the Group and Beijing Ruida included a call option and certain contingent consideration payable by the Group. Under the call option, the Group has the option to further increase its equity interest in Beijing Ruida up to 60% before April 2019 if certain pre-agreed pre-agreed In July 2018, the Company settled its contingent consideration and paid RMB46.0 million (US$6,893) to Beijing Ruida in accordance with the terms of the original agreement. As a result, the Group recorded a charge due to change value amounting to US$3,867 in its consolidated statements of operations. Additionally, in July 2018, the Group also exercised partial of its call option to acquire an additional 11% equity interest of Beijing Ruida at cash consideration of RMB39.6 million (US$5,931). Following the completion of the transaction, the Group held 51% equity interest in Beijing Ruida and as a result, Beijing Ruida became a consolidated subsidiary of the Group. Refer to Note 3 for further details. (b) In January, August and September 2017, the Group invested an aggregated of RMB33.2 million (US$4,986) in exchange for preferred shares representing 20.72% equity interest in Hangzhou Wanting. Hangzhou Wanting offers comprehensive simulation-based learning platform to college students to master critical engineering and construction skills. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance In December 2017, the Group further entered into a share transfer agreement with certain shareholders of Hangzhou Wanting, to purchase an additional 10% equity interest in Hangzhou Wanting, with redemption right, for a consideration of RMB16.0 million (US$2,405). Upon the expiration of the redemption right in April 2018, its preferred shares became in-substance (c) In December 2017, the Group entered into a share transfer agreement with certain shareholders of Beijing teacheredu, an organization specialized in teacher’s continuing education, to purchase 14.5% equity interest for a consideration of RMB80.0 million (US$11,655). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance (d) In January 2018, the Group entered into an investment arrangement with certain shareholders of Beijing Yousian, an offline information technology training and recruiting service provider, to acquire 15% of Beijing Yousian’s equity interest for a consideration of RMB22.5 million (US$3,276). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance (e) The “Other cost method investments” represent several insignificant cost method investments. (f) In December 2017, the Group entered into a partnership agreement with certain parties and subscribed 40% interest in Beijing Taixing #1 Investment Management Centre (LP) (“Beijing Taixing #1 LP”), for a consideration of RMB10.0 million (US$1,456). Beijing Taixing #1 LP, a limited partnership, will engage in preschool education investment. In February 2018, Beijing Taixing #1 increased its capital size, and the Group contributed additional RMB5.0 million (US$728), to maintain its equity interest at 40%. In December 2018, Beijing Xinrui Education Technology Co., Ltd. (“Beijing Xinrui”) succeeded Beijing Taixing #1 LP, therefore, the investment in Beijing Taixing#1 LP became 40% equity interest in Beijing Xinrui. (g) The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2017 and 2018. During the year ended September 30, 2016, 2017 and 2018, the Group recorded its respective share of net loss (income) amounting US$91, US$153 and US$(61). (h) On December 4, 2016, the Group invested RMB17.0 million (US$2,548) in exchange for a 19.5% equity interest in Piyingke Technology, an internet animation cloud engine technology provider. The investment was classified as available-for-sale pre-agreed earn-out (i) In November 2017, the Group entered into a capital contribution agreement with Chongqing Moses Robots, an industrial automation solution provider, and its shareholders to purchase 10.0% equity interest for a consideration of RMB10.0 million (US$1,503), with certain redemption features. The investment was classified as available-for-sale pre-agreed (j) In September 2016, the Group purchased 8.5% equity in Niuke Technology for RMB4.3 million (US$639). In February 2018, Niuke Technology issued additional shares of which the Group subscribed additional 3% equity interest for RMB4.5 million (US$655), resulting in a 10.65% stake of total ownership. The Group accounted for both the initial and subsequent investments as available-for-sales (k) Other investments represent several insignificant investments classified as available-for-sale |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares, Call Option and Contingent Consideration Payable Measured and Recorded At Fair Value Recurring Basis | As of September 30, 2017 and 2018, available-for-sale Available-for-sale The Group’s financial assets and liability measured at fair value on a recurring basis are as follows: Year ended September 30, 2017 Fair value at Quoted prices in Significant Significant September 30, 2017 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 60,526 60,526 — — Long-term investments: Available-for-sale 4,297 — 4,297 — Total assets measured at fair value 64,823 60,526 4,297 — Contingent consideration payable 3,231 — — 3,231 Total Liabilities measured at fair value 3,231 — — 3,231 Year ended September 30, 2018 Fair value at Quoted prices in Significant Significant September 30, 2018 (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 30,826 30,826 — — Short-term investments: Available-for-sale 14,439 — 14,439 — Long-term investments: Available-for-sale 6,975 — 2,327 4,648 Total assets measured at fair value 52,240 30,826 16,766 4,648 Contingent consideration payable 1,746 — — 1,746 Total Liabilities measured at fair value 1,746 — — 1,746 |
Summary of Reconciliation for the Fair Value Measurements of Assets and Liabilities | The following table provides additional information of reconciliation for the fair value measurements of assets and liabilities using significant unobservable inputs (level 3). Available-for-sale US$ Balance as of September 30, 2016 — Balance as of September 30, 2017 — Transfer from level 2 fair value measurements 936 Initial recognition 1,577 Unrealized gain 2,135 Balance as of September 30, 2018 4,648 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Other Non-Current Assets | Other non-current As of September 30, Notes 2017 2018 US$ US$ Long-term prepaid expenses (1 ) 2,954 3,823 Rental deposits (2 ) 527 923 Deposit of sole distributor agreement (3 ) 1,353 655 Prepaid investment (4 ) 1,127 — Others 1,055 986 7,016 6,387 (1) Long-term prepaid expenses represent golf club membership fees. Such fees is amortized over ten years and which is 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, which will not be refunded within one year. (3) Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract 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 LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consisted of the following: As of September 30, Notes 2017 2018 US$ US$ Tuition fee payable to government agencies (1 ) 15,302 13,122 Salary and welfare payable 6,945 8,389 Accrued expenses 5,468 9,351 Remuneration payable to lecturers 2,547 3,520 Uncertain income tax liabilities (Note 19) 163 158 Contingent consideration payable (2 ) 3,231 1,746 Other payable 5,111 5,855 38,767 42,141 (1) 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. The Group is only responsible for the student enrollment and provision of online platform and shares certain percentage of tuition fee as service fees. (2) Contingent consideration payable represents contingent payable related to one of the Group’s acquisitions. Refer to Note 3 for details. |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Income Before Income Taxes | Income before income taxes consisted of: Years ended September 30, 2016 2017 2018 US$ US$ US$ Non - PRC (1,929 ) (4,204 ) (656 ) PRC 34,581 25,245 15,438 32,652 21,041 14,782 |
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, 2016 2017 2018 US$ US$ US$ Current tax expense 5,799 5,344 5,717 Deferred tax expense (benefit) 351 (724 ) (3,410 ) 6,150 4,620 2,307 |
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, 2016 2017 2018 US$ US$ US$ Income before taxes 32,652 21,041 14,782 Income tax expense computed at applicable tax rates of 25% 8,162 5,260 3,696 Effect of different tax rates in different jurisdictions 413 988 770 Non-deductible 670 933 152 Effect of tax holidays (3,464 ) (2,812 ) (2,610 ) Effect of valuation allowances 164 116 285 Withholding tax on undistributed earnings 574 572 313 Income tax reversal (369 ) (437 ) (299 ) 6,150 4,620 2,307 Effective income tax rate 18.83 % 21.96 % 15.61 % |
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, 2016 2017 2018 US$ US$ US$ The aggregate amount of tax holidays 3,464 2,812 2,610 The aggregate effect on basic and diluted net income per share: - Basic 0.03 0.02 0.02 - Diluted 0.03 0.02 0.02 |
Components of Deferred Taxes | The components of deferred taxes are as follows: As of September 30, 2017 2018 US$ US$ Current deferred tax assets Advertisement expenses 137 — Impairment loss from a long-term investment 170 Accrued expenses 877 — Allowance for doubtful accounts 465 — Net operating loss carry-forwards 215 — Total current deferred tax assets 1,864 — Less: valuation allowance (210 ) — Current deferred tax assets, net 1,654 — Non-current Accrued expenses — 1,217 Allowance for doubtful accounts — 598 Impairment loss from long-term investments — 867 Change in fair value of contingent consideration payable — 435 Intangible assets 1 — Property, plant and equipment 119 111 Net operating loss carry-forwards 1,513 3,364 Total non-current 1,633 6,592 Less: valuation allowance (414 ) (881 ) Non-current 1,219 5,711 Non-current Intangible assets 1,491 9,236 Withholding tax on undistributed earnings 2,801 3,011 Unrealized gain on available-for-sale 26 446 Total non-current 4,318 12,693 |
Reconciliation of Accrued Unrecognized Tax Benefits | Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized Balance - September 30, 2016 163 Foreign currency adjustment — Balance - September 30, 2017 163 Foreign currency adjustment (5 ) Balance - September 30, 2018 158 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Operating Lease Commitments | Future minimum payments under non-cancelable one-year US$ Years ending September 30, 2019 10,924 2020 7,709 2021 5,031 2022 3,936 2023 and thereafter 26,488 54,088 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Changes in Noncontrolling Interest | The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2016, 2017 and 2018. Zhengbao Yucai NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ Balance as of September 30, 2016 4,981 6,255 — — 11,236 Capital contribution from noncontrolling interest shareholders 11,074 — — — 11,074 Foreign currency translation adjustment attributed to noncontrolling interest shareholders 362 24 — — 386 Gain attributed to noncontrolling interest shareholders 494 839 — — 1,333 Balance as of September 30, 2017 16,911 7,118 — — 24,029 Capital contribution from noncontrolling interest shareholders 60 — — — 60 Noncontrolling interest shareholders resulting from new acquisitions — — 1,262 41,336 42,598 Foreign currency translation adjustment attributed to noncontrolling interest shareholders (447 ) (229 ) (43 ) (1,154 ) (1,873 ) (Loss) gain attributed to noncontrolling interest shareholders (1,205 ) 1,830 (160 ) 212 677 Balance as of September 30, 2018 15,319 8,719 1,059 40,394 65,491 |
Schedule Discloses Effect of Changes in Ownership Interest | The schedule below discloses the effect of changes in the Company’s ownership interest on the Company’s equity: Years ended September 30, 2016 2017 2018 US$ US$ US$ Net income attributable to China Distance Education Holdings Limited 26,290 14,935 11,626 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in — 1,090 — Increase in the Group’s additional paid-in — — 29 Changes from net income attributable to China Distance Education Holdings Limited’s shareholders and transfer from noncontrolling interests 26,290 16,025 11,655 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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 2017 2018 US$ US$ US$ Net revenues 117,548 130,988 166,668 Professional education services 110,137 114,190 150,484 Business start-up 4,375 5,276 4,608 Sale of learning simulation software 3,036 11,522 11,576 Operating costs and expenses: Cost of sales (48,334 ) (57,412 ) (87,883 ) Professional education services (44,473 ) (50,168 ) (79,168 ) Business start-up (1,915 ) (2,069 ) (2,644 ) Sale of learning simulation software (1,946 ) (5,175 ) (6,071 ) Selling and marketing (24,517 ) (34,910 ) (44,717 ) Professional education services (22,556 ) (30,696 ) (39,698 ) Business start-up (688 ) (869 ) (1,127 ) Sale of learning simulation software (1,273 ) (3,345 ) (3,892 ) General and administrative (13,525 ) (15,955 ) (16,760 ) Professional education services (12,049 ) (12,890 ) (14,548 ) Business start-up (776 ) (1,034 ) (896 ) Sale of learning simulation software (700 ) (2,031 ) (1,316 ) Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Total operating costs and expenses (89,629 ) (111,790 ) (153,853 ) Professional education services (79,078 ) (93,754 ) (133,414 ) Business start-up (3,379 ) (3,972 ) (4,667 ) Sale of learning simulation software (3,919 ) (10,551 ) (11,279 ) Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Other operating income 806 1,912 3,051 Professional education services 570 184 643 Business start-up 2 91 76 Sale of learning simulation software 234 1,637 2,332 Operating income (loss) 28,725 21,110 15,950 Professional education services 31,629 20,620 17,797 Business start-up 998 1,395 17 Sale of learning simulation software (649 ) 2,608 2,629 Unallocated corporate expenses (3,253 ) (3,513 ) (4,493 ) Segment assets 148,920 224,551 328,925 Professional education services 93,609 133,836 236,496 Business start-up 13,262 45,569 46,205 Sale of learning simulation software 42,049 45,146 46,224 Total assets 148,920 224,551 328,925 Amortization and depreciation 3,639 4,790 6,299 Professional education services 2,792 3,001 4,479 Business start-up 60 36 36 Sale of learning simulation software 787 1,753 1,784 (Loss) gain from equity method investments (91 ) (153 ) 172 Professional education services (91 ) (153 ) (58 ) Business start-up — — 230 Sale of learning simulation software — — — |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
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, 2016 2017 2018 US$ US$ US$ Numerator: Net income 26,290 14,935 11,626 - allocated to ordinary share - basic 26,184 14,891 11,583 - allocated to nonvested restricted share - basic 106 44 43 Denominator: Weighted average number of ordinary shares outstanding 136,497,929 131,432,211 132,363,620 Weighted average number of nonvested restricted share 555,489 400,644 487,685 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 1,412,526 1,370,400 265,850 Weighted average ordinary shares outstanding used in computing diluted net income per share 138,465,944 133,203,255 133,117,155 Basic net income per share 0.19 0.11 0.09 Basic net income per nonvested restricted share 0.19 0.11 0.09 Diluted net income per share 0.19 0.11 0.09 Diluted net income per nonvested restricted share 0.19 0.11 0.09 |
SHARE INCENTIVE PLAN (Tables)
SHARE INCENTIVE PLAN (Tables) | 12 Months Ended |
Sep. 30, 2018 | |
Summary of Option Activity | A summary of option activity as of September 30, 2016, 2017 and 2018, and changes during the years ended September 30, 2016, 2017 and 2018 are presented below: Share option granted to employees and non-executive Number of Weighted- Weighted- Aggregated 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 Exercised — — Forfeited (58,000 ) US$ 3.32 Outstanding, September 30, 2017 2,025,600 US$ 2.85 6.53 — Exercised (895,148 ) US$ 1.66 Forfeited (71,352 ) US$ 1.17 Outstanding, September 30, 2018 1,059,100 US$ 1.39 5.58 718 Expected to vest, September 30, 2018 526,000 US$ 170 6.14 198 Exercisable at September 30, 2018 533,100 US$ 1.09 5.02 520 |
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, 2015 125,300 US$ 0.15 2.55 382 Exercised (68,300 ) — Outstanding, September 30, 2016 57,000 — 1.55 184 Exercised — — Outstanding, September 30, 2017 57,000 — 0.55 96 Exercised (57,000 ) — Outstanding, September 30, 2018 — — — — Exercisable at September 30, 2018 — — — — |
Summary of Nonvested Restricted Shares Activities | A summary of the nonvested restricted shares activities for the years ended September 30, 2016, 2017 and 2018 is as follows: Number of Weight average Aggregated US$ 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 Granted 125,000 3.03 Vested (260,593 ) 3.75 Nonvested restricted shares outstanding at September 30, 2017 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested restricted shares outstanding at September 30, 2018 450,497 2.49 933 Nonvested restricted shares expected to vest at September 30, 2018 450,497 2.49 933 |
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, 2016 2017 2018 US$ US$ US$ Cost of sales 162 164 161 General and administrative expenses 1,769 1,862 2,065 Selling expenses 84 85 80 2,015 2,111 2,306 |
Details of Subsidiaries and Var
Details of Subsidiaries and Variable Interest Entities (Detail) | 12 Months Ended | |
Sep. 30, 2018 | ||
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 | |
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 Co., Ltd. (''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 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 Zhongxi Champion Education. Technology Co., Ltd (''Xiamen Zhongxi Education'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Nov. 13, 2017 | |
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 | |
Shanghai Xidong Information Technology Co., Ltd. (''Xidong Information Technology'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jun. 21, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 100.00% | |
Principal activities | Provision of software development and information technology 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 | 35.76% | |
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 | 35.76% | [1] |
Principal activities | Provision of start-up training services | |
Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | 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 | 28.608% | [1] |
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 | 28.608% | [1] |
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 | 28.608% | [1] |
Principal activities | Provision of learning simulation software production | |
Beijing NetinNet Technology Co., Ltd. (''Beijing NetinNet'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jun. 25, 2018 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 28.608% | [1] |
Principal activities | Provision of learning simulation software production | |
Beijing Chuang Qingchun Chuang Weilai Education Technology Co., Ltd. (''Chuang Qingchun'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Feb. 28, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 21.456% | [1] |
Principal activities | Provision of education consulting services | |
Shanghai Huzheng Education Technology Co., Ltd. (''Huzheng Education'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 2, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 35.76% | [1] |
Principal activities | Provision of start-up training services | |
Guangdong Zhengbao Yucai Education Co., Ltd. (''Guangdong Yucai'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jun. 23, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 21.456% | [1] |
Principal activities | Provision of start-up training services | |
JinMaLan (Tianjin) Business Start-up Services Co., Ltd. (''Tianjin JinMaLan'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Dec. 8, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 25.032% | [1] |
Principal activities | Provision of start-up training services | |
JinMaLan (Anqing) Business Start-up Services Co., Ltd. (''Anqing JinMaLan'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jul. 7, 2018 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 21.456% | [1] |
Principal activities | Provision of start-up training services | |
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 | |
Beijing Champion International Education Technology Co., Ltd. (''Champion Int'l Education'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Oct. 12, 2016 | |
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 | |
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd. (''Jiangsu Asset) | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 8, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of financial and tax advisory and accounting service | |
Jiangsu Caishuibang Enterprise Management Co., Ltd. (''Caishuibang'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jun. 16, 2015 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of development of web-based semi-automatic accounting software | |
Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 11, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
Shenzhen Ruida Chengtai Education Technology Co., Ltd. (''Shenzhen Ruida'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 10, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
Guangzhou Ruida Chengtai Education Technology Co., Ltd. (''Guangzhou Ruida'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Apr. 14, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
Hangzhou Ruitai Education Technology Co., Ltd. (''Hangzhou Chengtai'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Apr. 19, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
Nanjing Ruida Chengtai Education Technology. Co., Ltd. (''Nanjing Chengtai'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 30, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
Beijing Youbang Culture and Art Training School (''Beijing Youbang'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 18, 2005 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of legal profession services | |
[1] | These entities are subsidiaries of Zhengbao Yucai. |
Organization and Basis of Pre_3
Organization and Basis of Presentation - Additional Information (Detail) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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 | 51.00% | 44.00% |
Percent of liabilities | 60.00% | 57.00% |
Financial Information of Compan
Financial Information of Company's VIEs and VIEs' Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 30,826 | $ 60,526 | |
Prepayment and other current assets | 17,054 | 10,439 | |
Total current assets | 127,876 | 119,835 | |
Total assets | 328,925 | 224,551 | $ 148,920 |
Total current liabilities | 194,440 | 128,710 | |
Total liabilities | 219,160 | 151,739 | |
Total equity | 44,274 | 48,783 | |
Net cash provided by operating activities | 50,094 | 37,731 | 38,969 |
Net cash used in investing activities | (55,497) | (45,468) | (34,023) |
Net cash used in financing activities | (3,302) | 33,295 | (62,866) |
Consolidated VIE | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 20,477 | 27,098 | |
Prepayment and other current assets | 13,365 | 8,214 | |
Total current assets | 132,527 | 126,892 | |
Total assets | 258,535 | 179,969 | |
Deferred revenue | 77,299 | 49,575 | |
Total current liabilities | 130,976 | 85,974 | |
Total liabilities | 130,976 | 85,974 | |
Total equity | 127,559 | 93,995 | |
Revenues | 151,146 | 114,371 | 109,947 |
Net income | 29,532 | 31,379 | 40,840 |
Net cash provided by operating activities | 44,054 | 22,100 | 27,310 |
Net cash used in investing activities | (44,414) | (31,403) | (3,938) |
Net cash used in financing activities | (5,706) | (5,506) | |
Effects of exchange rate changes | $ (555) | $ (5,435) | $ (2,791) |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2018 | |
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 Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Significant Accounting Policies [Line Items] | |||
Goodwill impairment loss | $ 0 | $ 0 | $ 0 |
Impairment loss on equity method investment | 2,835,000 | 679,000 | |
Impairment loss on available-for-salesecurities investments | 2,492,000 | ||
Recognized revenues net of business tax and related surcharges in connection with expired study cards | 166,668,000 | 130,988,000 | 117,548,000 |
Advertising expenses | 14,785,000 | 17,833,000 | 11,356,000 |
Selling expenses | 87,883,000 | 57,412,000 | 48,334,000 |
Cash and cash equivalents, denominated in RMB | $ 28,021,000 | $ 52,388,000 | |
Foreign currency risk, cash and cash equivalents, represented amount, percent | 90.90% | 86.60% | |
ASU 2016-18 | |||
Significant Accounting Policies [Line Items] | |||
Rastricted cash | $ 51,736,000 | $ 34,855,000 | 15,547,000 |
Shipping and Handling | |||
Significant Accounting Policies [Line Items] | |||
Selling expenses | $ 1,852,000 | $ 1,134,000 | 763,000 |
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 | 8.50% | 4.40% | |
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | |||
Significant Accounting Policies [Line Items] | |||
Recognized revenues net of business tax and related surcharges in connection with expired study cards | $ 93,000 | $ 132,000 | $ 161,000 |
Business tax and related surcharges, percent | 6.00% | 6.00% | 3.00% |
Business tax and related surcharges, amount | $ 1,075,000 | $ 390,000 | $ 3,216,000 |
Beijing Champion Education Technology Co., Ltd. (''Champion Education Technology'') | |||
Significant Accounting Policies [Line Items] | |||
PRC value added tax ("VAT"), general rate | 16.00% |
Other Intangible Assets Estimat
Other Intangible Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Sep. 30, 2018 | |
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 | 3 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 |
Others | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 3 years 6 months |
Others | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 8 years |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) ¥ in Thousands | Jul. 10, 2018USD ($) | Jul. 10, 2018CNY (¥) | Nov. 01, 2017USD ($) | Nov. 01, 2017CNY (¥) | May 03, 2016USD ($) | May 03, 2016CNY (¥) | Jul. 31, 2018USD ($) | Jul. 31, 2018CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Jul. 10, 2018CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Jun. 30, 2017CNY (¥) | Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | $ 79,516,000 | $ 29,459,000 | ||||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of equity interest acquired | 60.00% | 60.00% | ||||||||||||||||
Total consideration | $ 5,931,000 | ¥ 39,600 | $ 5,931,000 | ¥ 39,600 | ||||||||||||||
Revenue | 7,748,000 | |||||||||||||||||
Earnings since the acquisition date included in the consolidated income statement | $ 1,605,000 | |||||||||||||||||
Cost method investments | $ 28,758,000 | $ 32,089,000 | [1] | ¥ 192,000 | ¥ 192,000 | |||||||||||||
Equity ownership interest | 11.00% | 11.00% | 11.00% | 40.00% | 51.00% | 51.00% | 11.00% | 40.00% | 40.00% | 40.00% | ||||||||
Settlement of contingent consideration | $ 7,098,000 | ¥ 46,000 | ||||||||||||||||
Contingent consideration payable | $ 1,746,000 | ¥ 12,000 | ||||||||||||||||
Change in fair value gain | $ 676,000 | |||||||||||||||||
Change in fair value of option percentage | 11.00% | |||||||||||||||||
Net purchase price | $ 32,800,000 | ¥ 225,300 | ||||||||||||||||
Equity interest in acquiree, remeasurement loss | $ 590,000 | |||||||||||||||||
Equity interest in acquiree, percentage | 40.00% | 40.00% | ||||||||||||||||
Xiamen NetinNet | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of equity interest acquired | 80.00% | |||||||||||||||||
Total consideration | $ 32,666,000 | ¥ 212,000 | ||||||||||||||||
Goodwill | $ 22,921,000 | $ 22,921,000 | ||||||||||||||||
Net purchase price | $ 32,666,000 | |||||||||||||||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Percentage of equity interest acquired | 80.00% | |||||||||||||||||
Total consideration | $ 6,059,000 | ¥ 40,000 | ||||||||||||||||
Goodwill | 3,547,000 | |||||||||||||||||
Revenue | $ 2,557,000 | |||||||||||||||||
Earnings since the acquisition date included in the consolidated income statement | $ 693,000 | |||||||||||||||||
Net purchase price | $ 6,059,000 | |||||||||||||||||
[1] | In September 2017, the Group invested RMB192 million (US$28,858) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China's Legal Professional Qualification Examination. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. The investment agreement between the Group and Beijing Ruida included a call option and certain contingent consideration payable by the Group. Under the call option, the Group has the option to further increase its equity interest in Beijing Ruida up to 60% before April 2019 if certain pre-agreed conditions are met. In addition, the Group was also subject to certain contingent consideration to Beijing Ruida if certain pre-agreed conditions were met. With the assistance of an independent appraiser, the Company initially estimated the fair value of the call option and the contingent consideration payable to approximate RMB10.5 million (US$1,580) and RMB21.5 million (US$3,231), respectively. The call option was included as part of the preferred shares investment. The Company recorded the contingent consideration payable at fair value included under "Accrued expenses and other liabilities" and remeasured the contingent consideration to fair value at each reporting period. In July 2018, the Company settled its contingent consideration and paid RMB46.0 million (US$6,893) to Beijing Ruida in accordance with the terms of the original agreement. As a result, the Group recorded a charge due to change value amounting to US$3,867 in its consolidated statements of operations. Additionally, in July 2018, the Group also exercised partial of its call option to acquire an additional 11% equity interest of Beijing Ruida at cash consideration of RMB39.6 million (US$5,931). Following the completion of the transaction, the Group held 51% equity interest in Beijing Ruida and as a result, Beijing Ruida became a consolidated subsidiary of the Group. Refer to Note 3 for further details. |
Business Acquisition - Summary
Business Acquisition - Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Jun. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2016 | Sep. 30, 2017 | May 03, 2016 |
Intangible assets | ||||||
Goodwill | $ 79,516 | $ 29,459 | ||||
Trademarks and domain names | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 3 years | |||||
Trademarks and domain names | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 11 years | |||||
Copyrights | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years | |||||
Copyrights | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 7 years | |||||
Computer Software | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 3 years | |||||
Computer Software | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years | |||||
Others | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 3 years 6 months | |||||
Others | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 8 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 | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 10 years | |||||
Intangible assets | ||||||
Intangible assets | $ 1,649 | |||||
Xiamen NetinNet | Copyrights | ||||||
Intangible assets | ||||||
Intangible assets | $ 9,507 | |||||
Xiamen NetinNet | Copyrights | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 6 years | |||||
Xiamen NetinNet | Copyrights | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 7 years | |||||
Xiamen NetinNet | Computer Software | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 10 years | |||||
Intangible assets | ||||||
Intangible assets | $ 178 | |||||
Xiamen NetinNet | Others | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 7 years | |||||
Intangible assets | ||||||
Intangible assets | $ 524 | |||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 2,526 | |||||
Other current assets | 753 | |||||
Property, plant and equipment | $ 1,984 | |||||
Amortization period | 25 years | |||||
Intangible assets | ||||||
Goodwill | $ 3,547 | |||||
Other current liabilities | (1,550) | |||||
Deferred tax liabilities | (574) | |||||
Noncontrolling interest | (1,262) | |||||
Total | $ 6,059 | |||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | Customer Relationship | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 8 years | |||||
Intangible assets | ||||||
Intangible assets | $ 545 | |||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | Others | ||||||
Intangible assets | ||||||
Intangible assets | $ 90 | |||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | Others | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 1 year | |||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | Others | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 1,639 | |||||
Other current assets | 9,578 | |||||
Property, plant and equipment | $ 118 | |||||
Amortization period | 5 years | |||||
Intangible assets | ||||||
Goodwill | $ 48,931 | |||||
Other current liabilities | (684) | |||||
Deferred tax liabilities | (8,115) | |||||
Noncontrolling interest | (41,336) | |||||
Total | $ 43,022 | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Trademarks and domain names | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 3 years | |||||
Intangible assets | ||||||
Intangible assets | $ 2,741 | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Computer Software | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years 3 months 18 days | |||||
Intangible assets | ||||||
Intangible assets | $ 344 | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Others | ||||||
Intangible assets | ||||||
Intangible assets | $ 210 | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Others | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 2 years 6 months | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Others | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years 6 months | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Supplier Contracts | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 5 years 6 months | |||||
Intangible assets | ||||||
Intangible assets | $ 25,118 | |||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Courseware | ||||||
Business Acquisition [Line Items] | ||||||
Amortization period | 3 years 6 months | |||||
Intangible assets | ||||||
Intangible assets | $ 4,478 |
Business Acquisition - Summar_2
Business Acquisition - Summary of Unaudited Pro Forma Result of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Business Acquisition [Line Items] | ||
Pro forma net revenue | $ 27,568 | $ 28,494 |
Pro forma net income (loss) attributable to China Distance Education Holdings Limited | $ 14 | $ 460 |
Pro forma net income per ordinary share-basic | $ 0.09 | $ 0.12 |
Pro forma net income per ordinary share-diluted | $ 0.09 | $ 0.12 |
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | ||
Business Acquisition [Line Items] | ||
Pro forma net revenue | $ 2,581 | $ 11 |
Pro forma net income (loss) attributable to China Distance Education Holdings Limited | $ (561) | $ (54) |
Pro forma net income per ordinary share-basic | $ 0.09 | $ 0.11 |
Pro forma net income per ordinary share-diluted | $ 0.09 | $ 0.11 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Investments [Line Items] | ||
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Minimum | ||
Schedule of Investments [Line Items] | ||
Short term investments, maturity period | 28 days | |
Investment, interest range | 3.15% | |
Maximum | ||
Schedule of Investments [Line Items] | ||
Short term investments, maturity period | 62 days | |
Investment, interest range | 4.70% |
Short-term Investments (Detail)
Short-term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule of Investments [Line Items] | ||
Short-term investments | $ 17,073 | $ 5,261 |
Available-for-sale securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | 14,439 | |
Held-to-maturity securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | $ 2,634 | $ 5,261 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable | $ 8,622 | $ 6,716 |
Less: allowance for doubtful accounts | (1,342) | (1,191) |
Accounts receivable, net | $ 7,280 | $ 5,525 |
Movement of Allowance For Doubt
Movement of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of the year | $ 1,191 | $ 661 |
Increase of the allowance for doubtful accounts | 199 | 516 |
Foreign currency adjustment | (48) | 14 |
Balance at end of the year | $ 1,342 | $ 1,191 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Inventory [Line Items] | ||
Books and other goods | $ 2,010 | $ 884 |
Paper and other raw materials | 900 | 287 |
Less: inventory provisions for slow-moving and obsolescence | (128) | (307) |
Inventories, net | $ 2,782 | $ 864 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory [Line Items] | |||
Inventories provision | $ 15 | $ 261 | $ 78 |
Prepayment and Other Current _3
Prepayment and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 6,812 | $ 4,217 | |
Advance to suppliers | [1] | 4,468 | 2,020 |
Staff advances | [2] | 1,073 | 1,015 |
Funds receivable | [3] | 1,750 | 628 |
Interest receivable | 1,380 | 526 | |
Deposits | 593 | 1,242 | |
Others | 978 | 791 | |
Prepayment and other current assets, net | $ 17,054 | $ 10,439 | |
[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 course 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, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 31,188 | $ 26,616 |
Less: Accumulated depreciation | (15,215) | (12,594) |
Construction in progress | 11,999 | |
Property, Plant and Equipment, Net | 27,972 | 14,022 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 9,111 | 7,271 |
Electronic And Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 17,687 | 15,208 |
Leasehold Improvement And Building Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,291 | 1,898 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,099 | $ 2,239 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 3,069 | $ 2,792 | $ 2,533 |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | ||
Beginning balance | $ 29,459 | $ 29,392 |
Acquisition for the year | 52,478 | |
Exchange difference | (2,421) | 67 |
Ending balance | 79,516 | 29,459 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 79,516 | 29,459 |
Professional Education Services | ||
Goodwill [Line Items] | ||
Beginning balance | 5,408 | 5,396 |
Acquisition for the year | 52,478 | |
Exchange difference | (1,672) | 12 |
Ending balance | 56,214 | 5,408 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 56,214 | 5,408 |
Beijing Haidian District Champion Training School (''Beijing Training School'') | Business Startup Training Service | ||
Goodwill [Line Items] | ||
Beginning balance | 1,692 | 1,688 |
Exchange difference | (50) | 4 |
Ending balance | 1,642 | 1,692 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | 1,642 | 1,692 |
Nanjing Champion Vocational Training School (''Nanjing Training School'') | Sale of Learning Simulation Software | ||
Goodwill [Line Items] | ||
Beginning balance | 22,359 | 22,308 |
Exchange difference | (699) | 51 |
Ending balance | 21,660 | 22,359 |
Accumulated impairment loss | 0 | 0 |
Goodwill, net | $ 21,660 | $ 22,359 |
Composition of Other Intangible
Composition of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 51,809 | $ 19,079 |
Less: Accumulated amortization | (12,309) | (9,132) |
Other intangible assets, Net | 39,500 | 9,947 |
Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,512 | 4,514 |
Less: Accumulated amortization | (4,037) | (3,835) |
Trademarks and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,624 | 3,031 |
Less: Accumulated amortization | (1,815) | (1,475) |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,788 | 448 |
Less: Accumulated amortization | (711) | (448) |
Business Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 24,891 | 489 |
Less: Accumulated amortization | (1,461) | (489) |
Copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 10,087 | 10,397 |
Less: Accumulated amortization | (4,023) | (2,685) |
Others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 907 | 200 |
Less: Accumulated amortization | $ (262) | $ (200) |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 3,230 | $ 1,998 | $ 1,116 |
Estimated Amortization Expenses
Estimated Amortization Expenses for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | $ 8,752 | |
2,020 | 8,692 | |
2,021 | 8,418 | |
2,022 | 6,528 | |
2,023 | 5,414 | |
2024 and thereafter | 1,696 | |
Other intangible assets, Net | $ 39,500 | $ 9,947 |
Summary of Long-term Investment
Summary of Long-term Investments (Detail) ¥ in Thousands, $ in Thousands | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017USD ($) | Nov. 30, 2017CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Mar. 09, 2017USD ($) | Mar. 09, 2017CNY (¥) | |||
Available-for-sale securities investments: | ||||||||||||||||
Total | $ 33,837 | $ 43,631 | ||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | ||||||||||||||||
Cost method investments: | ||||||||||||||||
Cost method investments | 32,089 | [1] | ¥ 192,000 | $ 28,758 | ¥ 192,000 | |||||||||||
Hangzhou Wanting Technology Co., Ltd. ("Hangzhou Wanting") | ||||||||||||||||
Cost method investments: | ||||||||||||||||
Cost method investments | $ 2,405 | ¥ 16,000 | 4,986 | [2] | ¥ 33,200 | |||||||||||
Equity method investment: | ||||||||||||||||
Equity method investments | [2] | 6,819 | ||||||||||||||
Beijing Teacheredu Cn Science And Technology Co Ltd. ("Beijing teacheredu") | ||||||||||||||||
Cost method investments: | ||||||||||||||||
Cost method investments | [3] | 11,655 | ||||||||||||||
Beijing Yousian Technology Co Ltd. (''Beijing Yousian'') | ||||||||||||||||
Cost method investments: | ||||||||||||||||
Cost method investments | 3,276 | [4] | $ 632 | ¥ 3,300 | ||||||||||||
Other Cost Method Investments | ||||||||||||||||
Cost method investments: | ||||||||||||||||
Cost method investments | [5] | 1,997 | 1,308 | |||||||||||||
Equity method investment: | ||||||||||||||||
Equity method investments | [6] | 931 | 951 | |||||||||||||
Beijing Taixing One Investment Management Centre (LP) ("Beijing Taixing One LP") | ||||||||||||||||
Equity method investment: | ||||||||||||||||
Equity method investments | [7] | 2,184 | ||||||||||||||
Beijing Piyingke Technology Co., Ltd. ("Piyingke Technology") | ||||||||||||||||
Available-for-sale securities investments: | ||||||||||||||||
Available-for-sale securities investments | 2,548 | [8] | $ 2,548 | ¥ 17,000 | ||||||||||||
Chongqing Moses Robots Co Ltd. ("Moses Robots") | ||||||||||||||||
Equity method investment: | ||||||||||||||||
Equity method investments | $ 1,503 | ¥ 10,000 | ||||||||||||||
Available-for-sale securities investments: | ||||||||||||||||
Available-for-sale securities investments | [9] | 3,494 | ||||||||||||||
Beijing Niuke Technology Co., Ltd. ("Niuke Technology") | ||||||||||||||||
Available-for-sale securities investments: | ||||||||||||||||
Available-for-sale securities investments | [10] | 2,326 | 813 | |||||||||||||
Other Investments | ||||||||||||||||
Available-for-sale securities investments: | ||||||||||||||||
Available-for-sale securities investments | [11] | $ 1,155 | $ 936 | |||||||||||||
[1] | In September 2017, the Group invested RMB192 million (US$28,858) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China's Legal Professional Qualification Examination. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. The investment agreement between the Group and Beijing Ruida included a call option and certain contingent consideration payable by the Group. Under the call option, the Group has the option to further increase its equity interest in Beijing Ruida up to 60% before April 2019 if certain pre-agreed conditions are met. In addition, the Group was also subject to certain contingent consideration to Beijing Ruida if certain pre-agreed conditions were met. With the assistance of an independent appraiser, the Company initially estimated the fair value of the call option and the contingent consideration payable to approximate RMB10.5 million (US$1,580) and RMB21.5 million (US$3,231), respectively. The call option was included as part of the preferred shares investment. The Company recorded the contingent consideration payable at fair value included under "Accrued expenses and other liabilities" and remeasured the contingent consideration to fair value at each reporting period. In July 2018, the Company settled its contingent consideration and paid RMB46.0 million (US$6,893) to Beijing Ruida in accordance with the terms of the original agreement. As a result, the Group recorded a charge due to change value amounting to US$3,867 in its consolidated statements of operations. Additionally, in July 2018, the Group also exercised partial of its call option to acquire an additional 11% equity interest of Beijing Ruida at cash consideration of RMB39.6 million (US$5,931). Following the completion of the transaction, the Group held 51% equity interest in Beijing Ruida and as a result, Beijing Ruida became a consolidated subsidiary of the Group. Refer to Note 3 for further details. | |||||||||||||||
[2] | In January, August and September 2017, the Group invested an aggregated of RMB33.2 million (US$4,986) in exchange for preferred shares representing 20.72% equity interest in Hangzhou Wanting. Hangzhou Wanting offers comprehensive simulation-based learning platform to college students to master critical engineering and construction skills. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. In December 2017, the Group further entered into a share transfer agreement with certain shareholders of Hangzhou Wanting, to purchase an additional 10% equity interest in Hangzhou Wanting, with redemption right, for a consideration of RMB16.0 million (US$2,405). Upon the expiration of the redemption right in April 2018, its preferred shares became in-substance common shares. The Group applies 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. The Group shared loss of US$359 from Hangzhou Wanting for the year ended September 30, 2018. | |||||||||||||||
[3] | In December 2017, the Group entered into a share transfer agreement with certain shareholders of Beijing teacheredu, an organization specialized in teacher's continuing education, to purchase 14.5% equity interest for a consideration of RMB80.0 million (US$11,655). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. | |||||||||||||||
[4] | In March 2018, the Group entered into an investment arrangement with certain shareholders of Beijing Yousian, an offline information technology training and recruiting service provider, to acquire 15% of Beijing Yousian's equity interest for a consideration of RMB22.5 million (US$3,276). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. In addition, the investment agreement between the Group and Beijing Yousian includes a call option. With the assistance of an independent appraiser, the Company estimated the fair value of the call option to approximate RMB3.3 million (US$632), which was accounted as a cost method investment and carried initially at its fair value. | |||||||||||||||
[5] | The "Other cost method investments" represent several insignificant cost method investments. | |||||||||||||||
[6] | The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2017 and 2018. During the year ended September 30, 2016, 2017 and 2018, the Group recorded its respective share of net loss (income) amounting US$91, US$153 and US$(61). | |||||||||||||||
[7] | In December 2017, the Group entered into a partnership agreement with certain parties and subscribed 40% interest in Beijing Taixing #1 Investment Management Centre (LP) ("Beijing Taixing #1 LP"), for a consideration of RMB10.0 million (US$1,456). Beijing Taixing #1 LP, a limited partnership, will engage in preschool education investment. In February 2018, Beijing Taixing #1 increased its capital size, and the Group contributed additional RMB5.0 million (US$728), to maintain its equity interest at 40%. In December 2018, Beijing Xinrui Education Technology Co., Ltd. ("Beijing Xinrui") succeeded Beijing Taixing #1 LP, therefore, the investment in Beijing Taixing#1 LP became 40% equity interest in Beijing Xinrui. | |||||||||||||||
[8] | On March 9, 2017 the Group invested RMB17.0 million (US$2,548) in exchange for a 19.5% equity interest in Piyingke Technology, an internet animation cloud engine technology provider. 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. Piyingke Technology did not achieve the pre-agreed earn-out provision, which triggered the redemption right in October 2018. The Group determined that Piyingke Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient cash reserve. In addition, Piyingke Technology failed to respond to the Group's redemption request within a reasonable time period. As a result, the Group fully impaired the investment during the year ended September 30, 2018 | |||||||||||||||
[9] | In November 2017, the Group entered into a capital contribution agreement with Chongqing Moses Robots, an industrial automation solution provider, and its shareholders to purchase 10.0% equity interest for a consideration of RMB10.0 million (US$1,503), with certain redemption features. 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 features and measured the investment subsequently at fair value. Chongqing Moses Robots did not achieve pre-agreed performance target, as a result, one of the redemption events was triggered. As part of the redemption process, the Group and the investee agreed to exchange the cash redemption for a 5% additional equity interest issued by the founding shareholders to the Group. As a result, the Group further increased its equity interest in Chongqing Moses Robots to 15%. Unrealized holding gain of US$1,917 was reported in other comprehensive income for the year ended September 30, 2018. | |||||||||||||||
[10] | In September 2016, the Group purchased 8.5% equity in Niuke Technology for RMB4.3 million (US$639). In April 2018, Niuke Technology issued additional shares of which the Group subscribed additional 3% equity interest for RMB4.5 million (US$655), resulting in a 10.65% stake of total ownership. The Group accounted for both the initial and subsequent investments as available-for-sales as the Group determined that the shares were debt securities in nature due to certain redemption features. The Group initially and subsequently measured the investment at fair value. Unrealized holding gain of US$174 and US$884 were reported in other comprehensive income for the years ended September 30, 2017 and 2018. | |||||||||||||||
[11] | Other investments represent several insignificant investments classified as available-for-sale investments as of September 30, 2017 and 2018. Unrealized holding gains of US$25 and US$218 were reported in other comprehensive income for the year ended September 30, 2017 and 2018. |
Summary of Long-term Investme_2
Summary of Long-term Investments (Parenthetical) (Detail) ¥ in Thousands, $ in Thousands | Jul. 10, 2018USD ($) | Jul. 10, 2018CNY (¥) | Jul. 31, 2018USD ($) | Jul. 31, 2018CNY (¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Feb. 28, 2018USD ($) | Feb. 28, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Sep. 30, 2017USD ($) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016USD ($) | Apr. 30, 2019 | Dec. 31, 2018 | Jul. 31, 2018CNY (¥) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017USD ($) | Nov. 30, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Mar. 09, 2017USD ($) | Mar. 09, 2017CNY (¥) | Sep. 30, 2016CNY (¥) | |||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Change in fair value in connection with business combination | $ 84 | ||||||||||||||||||||||||||||||||
Net investment loss | (172) | $ (153) | $ (91) | ||||||||||||||||||||||||||||||
Unrealized holding gain in other comprehensive income | $ 2,599 | 173 | |||||||||||||||||||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Cost method investment | $ 32,089 | [1] | ¥ 192,000 | $ 28,758 | ¥ 192,000 | ||||||||||||||||||||||||||||
Equity ownership interest | 11.00% | 11.00% | 11.00% | 51.00% | 40.00% | 11.00% | 40.00% | 40.00% | 40.00% | ||||||||||||||||||||||||
Contingent consideration | $ 1,580 | ¥ 10,500 | $ 3,231 | ¥ 21,500 | |||||||||||||||||||||||||||||
Fair value of contingent consideration | $ 6,893 | ¥ 46,000 | |||||||||||||||||||||||||||||||
Change in fair value in connection with business combination | 3,867 | ||||||||||||||||||||||||||||||||
Total consideration | $ 5,931 | ¥ 39,600 | $ 5,931 | ¥ 39,600 | |||||||||||||||||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | Maximum | Scenario, Forecast | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Equity ownership interest | 60.00% | ||||||||||||||||||||||||||||||||
Hangzhou Wanting Technology Co., Ltd. ("Hangzhou Wanting") | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Cost method investment | $ 2,405 | $ 4,986 | [2] | ¥ 16,000 | ¥ 33,200 | ||||||||||||||||||||||||||||
Equity ownership interest | 10.00% | 20.72% | 10.00% | 20.72% | |||||||||||||||||||||||||||||
Net investment loss | 359 | ||||||||||||||||||||||||||||||||
Equity method inverstments | [2] | 6,819 | |||||||||||||||||||||||||||||||
Beijing Yousian Technology Co Ltd. (''Beijing Yousian'') | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Cost method investment | $ 632 | $ 3,276 | [3] | ¥ 3,300 | |||||||||||||||||||||||||||||
Equity ownership interest | 15.00% | 15.00% | |||||||||||||||||||||||||||||||
Contingent consideration | $ 3,276 | ¥ 22,500 | |||||||||||||||||||||||||||||||
Beijing Piyingke Technology Co., Ltd. ("Piyingke Technology") | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Available-for-sale securities investments | $ 2,548 | [4] | $ 2,548 | ¥ 17,000 | |||||||||||||||||||||||||||||
Investment ownership interest | 19.50% | 19.50% | |||||||||||||||||||||||||||||||
Chongqing Moses Robots Co Ltd. ("Moses Robots") | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Equity ownership interest | 10.00% | 10.00% | |||||||||||||||||||||||||||||||
Equity method inverstments | $ 1,503 | ¥ 10,000 | |||||||||||||||||||||||||||||||
Percentage of ownership interest | 15.00% | ||||||||||||||||||||||||||||||||
Available-for-sale securities investments | [5] | $ 3,494 | |||||||||||||||||||||||||||||||
Share compensation, percentage | 5.00% | ||||||||||||||||||||||||||||||||
Unrealized holding gain in other comprehensive income | $ 1,917 | ||||||||||||||||||||||||||||||||
Other Investments | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Available-for-sale securities investments | [6] | 1,155 | 936 | ||||||||||||||||||||||||||||||
Unrealized holding gain in other comprehensive income | 218 | 25 | |||||||||||||||||||||||||||||||
Beijing Teacheredu [Member] | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Equity ownership interest | 14.50% | 14.50% | |||||||||||||||||||||||||||||||
Equity method inverstments | $ 11,655 | ¥ 80,000 | |||||||||||||||||||||||||||||||
Beijing Taixing One Investment Management centre [Member] | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Contingent consideration | $ 728 | ¥ 5,000 | $ 1,456 | ¥ 10,000 | |||||||||||||||||||||||||||||
Percentage of ownership interest | 40.00% | 40.00% | 40.00% | 40.00% | |||||||||||||||||||||||||||||
Beijing Xinrui Education Technology Co Ltd [Member] | Scenario, Forecast | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Percentage of ownership interest | 40.00% | ||||||||||||||||||||||||||||||||
Niuke Technology [Member] | |||||||||||||||||||||||||||||||||
Investment Holdings [Line Items] | |||||||||||||||||||||||||||||||||
Equity ownership interest | 10.65% | 10.65% | 8.50% | 8.50% | |||||||||||||||||||||||||||||
Contingent consideration | $ 655 | ¥ 4,500 | |||||||||||||||||||||||||||||||
Equity method inverstments | $ 639 | ¥ 4,300 | |||||||||||||||||||||||||||||||
Percentage of ownership interest | 3.00% | 3.00% | |||||||||||||||||||||||||||||||
Unrealized holding gain in other comprehensive income | $ 884 | $ 174 | |||||||||||||||||||||||||||||||
[1] | In September 2017, the Group invested RMB192 million (US$28,858) in preferred shares representing 40% interest in Beijing Ruida, a leading provider of exam preparation services in China's Legal Professional Qualification Examination. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. The investment agreement between the Group and Beijing Ruida included a call option and certain contingent consideration payable by the Group. Under the call option, the Group has the option to further increase its equity interest in Beijing Ruida up to 60% before April 2019 if certain pre-agreed conditions are met. In addition, the Group was also subject to certain contingent consideration to Beijing Ruida if certain pre-agreed conditions were met. With the assistance of an independent appraiser, the Company initially estimated the fair value of the call option and the contingent consideration payable to approximate RMB10.5 million (US$1,580) and RMB21.5 million (US$3,231), respectively. The call option was included as part of the preferred shares investment. The Company recorded the contingent consideration payable at fair value included under "Accrued expenses and other liabilities" and remeasured the contingent consideration to fair value at each reporting period. In July 2018, the Company settled its contingent consideration and paid RMB46.0 million (US$6,893) to Beijing Ruida in accordance with the terms of the original agreement. As a result, the Group recorded a charge due to change value amounting to US$3,867 in its consolidated statements of operations. Additionally, in July 2018, the Group also exercised partial of its call option to acquire an additional 11% equity interest of Beijing Ruida at cash consideration of RMB39.6 million (US$5,931). Following the completion of the transaction, the Group held 51% equity interest in Beijing Ruida and as a result, Beijing Ruida became a consolidated subsidiary of the Group. Refer to Note 3 for further details. | ||||||||||||||||||||||||||||||||
[2] | In January, August and September 2017, the Group invested an aggregated of RMB33.2 million (US$4,986) in exchange for preferred shares representing 20.72% equity interest in Hangzhou Wanting. Hangzhou Wanting offers comprehensive simulation-based learning platform to college students to master critical engineering and construction skills. The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. In December 2017, the Group further entered into a share transfer agreement with certain shareholders of Hangzhou Wanting, to purchase an additional 10% equity interest in Hangzhou Wanting, with redemption right, for a consideration of RMB16.0 million (US$2,405). Upon the expiration of the redemption right in April 2018, its preferred shares became in-substance common shares. The Group applies 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. The Group shared loss of US$359 from Hangzhou Wanting for the year ended September 30, 2018. | ||||||||||||||||||||||||||||||||
[3] | In March 2018, the Group entered into an investment arrangement with certain shareholders of Beijing Yousian, an offline information technology training and recruiting service provider, to acquire 15% of Beijing Yousian's equity interest for a consideration of RMB22.5 million (US$3,276). The investment was classified as a cost method investment as the Group determined that the preferred shares were not in-substance common share due to certain liquidation preferences. In addition, the investment agreement between the Group and Beijing Yousian includes a call option. With the assistance of an independent appraiser, the Company estimated the fair value of the call option to approximate RMB3.3 million (US$632), which was accounted as a cost method investment and carried initially at its fair value. | ||||||||||||||||||||||||||||||||
[4] | On March 9, 2017 the Group invested RMB17.0 million (US$2,548) in exchange for a 19.5% equity interest in Piyingke Technology, an internet animation cloud engine technology provider. 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. Piyingke Technology did not achieve the pre-agreed earn-out provision, which triggered the redemption right in October 2018. The Group determined that Piyingke Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient cash reserve. In addition, Piyingke Technology failed to respond to the Group's redemption request within a reasonable time period. As a result, the Group fully impaired the investment during the year ended September 30, 2018 | ||||||||||||||||||||||||||||||||
[5] | In November 2017, the Group entered into a capital contribution agreement with Chongqing Moses Robots, an industrial automation solution provider, and its shareholders to purchase 10.0% equity interest for a consideration of RMB10.0 million (US$1,503), with certain redemption features. 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 features and measured the investment subsequently at fair value. Chongqing Moses Robots did not achieve pre-agreed performance target, as a result, one of the redemption events was triggered. As part of the redemption process, the Group and the investee agreed to exchange the cash redemption for a 5% additional equity interest issued by the founding shareholders to the Group. As a result, the Group further increased its equity interest in Chongqing Moses Robots to 15%. Unrealized holding gain of US$1,917 was reported in other comprehensive income for the year ended September 30, 2018. | ||||||||||||||||||||||||||||||||
[6] | Other investments represent several insignificant investments classified as available-for-sale investments as of September 30, 2017 and 2018. Unrealized holding gains of US$25 and US$218 were reported in other comprehensive income for the year ended September 30, 2017 and 2018. |
Available-For-Sale Securities R
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares, Call Option and Contingent Consideration Payable Measured and Recorded At Fair Value Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 17,073 | $ 5,261 |
Long-term investments | 33,837 | 43,631 |
Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 14,439 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 30,826 | 60,526 |
Total assets measured at fair value | 52,240 | 64,823 |
Contingent consideration payable (Note 3) | 1,746 | 3,231 |
Total Liabilities measured at fair value | 1,746 | 3,231 |
Fair Value, Measurements, Recurring | Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 14,439 | |
Long-term investments | 6,975 | 4,297 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 30,826 | 60,526 |
Total assets measured at fair value | 30,826 | 60,526 |
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 | 16,766 | 4,297 |
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 | 14,439 | |
Long-term investments | 2,327 | 4,297 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 4,648 | |
Contingent consideration payable (Note 3) | 1,746 | 3,231 |
Total Liabilities measured at fair value | 1,746 | $ 3,231 |
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term investments | $ 4,648 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between level 1 and level 2 fair value measurements | $ 0 | ||
Impairment loss related to investments, goodwill and acquired intangible assets | 0 | $ 0 | $ 0 |
Impairment loss on equity method investment | $ 2,835 | $ 679 | |
Measurement Input, Price Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business combination contingent consideration liability measurement input | 0.05 | 0.05 | |
Discount rate | 0.39 | 0.39 | |
Measurement Input, Price Volatility | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.488 | ||
Measurement Input, Price Volatility | Level 3 | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.550 | ||
Measurement Input, Discount Rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business combination contingent consideration liability measurement input | 0.149 | 0.168 | |
Discount rate | 0.19 | 0.20 | |
Measurement Input, Discount Rate | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.30 | ||
Measurement Input, Discount Rate | Level 3 | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.38 | ||
Measurement Input, Expected Term | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Business combination contingent consideration liability term | 5 months 23 days | 3 months 25 days | |
Expected life of investment | 2 years 2 months 1 day | 3 years 2 months 1 day | |
Measurement Input, Expected Term | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected life of investment | 3 years 9 months 18 days | ||
Measurement Input, Expected Term | Level 3 | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected life of investment | 5 years 3 months 18 days |
Summary of Reconciliation of th
Summary of Reconciliation of the Fair Value Measurements of Assets and Liabilities (Detail) - Level 3 - Available-for-sale securities $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Transfer from level 2 fair value measurements | $ 936 |
Initial recognition | 1,577 |
Unrealized gain | 2,135 |
Ending balance | $ 4,648 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
Other Assets Noncurrent [Line Items] | |||
Long-term prepaid expenses | [1] | $ 3,823 | $ 2,954 |
Rental deposits | [2] | 923 | 527 |
Deposit of sole distributor agreement | [3] | 655 | 1,353 |
Prepaid investment | [4] | 1,127 | |
Others | 986 | 1,055 | |
Other Assets, Miscellaneous, Total | $ 6,387 | $ 7,016 | |
[1] | Long-term prepaid expenses represent golf club membership fees. Such fees is amortized over ten years and which is 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, which will not be refunded within one year. | ||
[3] | Deposit of sole distributor agreement represents a refundable deposit for a newly entered contract with a software developer, classified as non-current deposits since the contract is longer than a year. A partial deposit in an amount of US$698 was returned to the Group during the year ended September 30, 2018. | ||
[4] | Prepaid investment represents a deposit of an investment, classified as non-current deposit due to the underlying investment term, refer to Note 11 for details. |
Other Non-Current Assets (Paren
Other Non-Current Assets (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($) | |
Other Assets Noncurrent [Line Items] | |
Period over which golf club membership fee is valid | 10 years |
Partial deposit returned | $ 698 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | |
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Tuition fee payable to government agencies | [1] | $ 13,122 | $ 15,302 |
Salary and welfare payable | 8,389 | 6,945 | |
Accrued expenses | 9,351 | 5,468 | |
Remuneration payable to lecturers | 3,520 | 2,547 | |
Uncertain income tax liabilities (Note 19) | 158 | 163 | |
Contingent consideration payable | [2] | 1,746 | 3,231 |
Other payable | 5,855 | 5,111 | |
Accrued expenses and other liabilities | $ 42,141 | $ 38,767 | |
[1] | 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. The Group is only responsible for the student enrollment and provision of online platform and shares certain percentage of tuition fee as service fees. | ||
[2] | Contingent consideration payable represents contingent payable related to one of the Group's acquisitions. Refer to Note 3 for details. |
Bank Borrowings - Additional In
Bank Borrowings - Additional Information (Detail) ¥ in Millions | Jun. 26, 2019 | Dec. 20, 2018 | Dec. 14, 2018USD ($) | Nov. 30, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 24, 2018 | Jun. 22, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018CNY (¥) | Jan. 05, 2018USD ($) | Dec. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Jul. 19, 2017USD ($) | Jul. 19, 2017CNY (¥) | Dec. 23, 2016USD ($) | Jun. 24, 2016 | Jun. 24, 2015 | Jun. 22, 2015USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Oct. 23, 2018USD ($) | Sep. 30, 2018CNY (¥) | Jun. 22, 2018CNY (¥) | Jan. 05, 2018CNY (¥) | Dec. 18, 2017CNY (¥) | Sep. 30, 2017USD ($) | Dec. 23, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | Jun. 22, 2015CNY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,081,000 | $ 14,900,000 | ¥ 300 | |||||||||||||||||||||||||||||
Line of credit facility, current borrowing | $ 15,577,000 | ¥ 103.6 | ||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 2.395% | 2.91% | 2.82% | 1.997% | 3.625% | |||||||||||||||||||||||||||
Line of credit facility, effective period | 12 months | 12 months | 12 months | 3 years | ||||||||||||||||||||||||||||
Term deposit used as collateral | $ 1,738,000 | ¥ 11.6 | $ 15,577,000 | ¥ 103.6 | ||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 26, 2019 | |||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,200,000 | $ 20,100,000 | 15,000,000 | |||||||||||||||||||||||||||||
Long term bank borrowing, fair value | $ 12,464,000 | $ 19,930,000 | ||||||||||||||||||||||||||||||
Bank borrowing, fair value | 50,547,000 | $ 29,947,000 | ||||||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 3.99% | 3.49% | ||||||||||||||||||||||||||||||
Repaid amount | $ 15,100,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||
Scenario, Forecast | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 3.437% | |||||||||||||||||||||||||||||||
Term Loan | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 35,300,000 | 15,081,000 | $ 40,000,000 | |||||||||||||||||||||||||||||
Line of credit facility, effective period | 1 year | |||||||||||||||||||||||||||||||
Term Loan | Subsequent Event | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 48,300,000 | |||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Term deposit used as collateral | $ 526,000 | $ 15,301,000 | $ 20,246,000 | $ 17,540,000 | ¥ 3.6 | ¥ 101.8 | ¥ 134.7 | ¥ 116.7 | ||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 25, 2019 | |||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 3.00% | |||||||||||||||||||||||||||||||
Term deposit used as collateral | $ 51,736,000 | ¥ 355.3 | ||||||||||||||||||||||||||||||
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jul. 20, 2020 | Jul. 20, 2020 | ||||||||||||||||||||||||||||||
Repaid amount | $ 6,843,000 | ¥ 47 | ||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 19,307,000 | ¥ 132.6 | ||||||||||||||||||||||||||||||
Equity interest percentage | 80.00% | 80.00% | ||||||||||||||||||||||||||||||
Line of Credit Facility, Initiation Date | Jul. 21, 2017 | Jul. 21, 2017 | ||||||||||||||||||||||||||||||
Term loan agreement interest rate | 11.00% | 11.00% | ||||||||||||||||||||||||||||||
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | Scenario, Forecast | ||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||
Long term bank borrowing, fair value | $ 12,027,000 | ¥ 82.6 | $ 437,000 | ¥ 3 |
Related-Party Transaction - Add
Related-Party Transaction - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Schedule Of Related Party Transaction Details [Line Items] | |||
Outstanding loan paid | $ 1,677 | $ 5,506 | |
Mr Zhu Zhengdong | |||
Schedule Of Related Party Transaction Details [Line Items] | |||
Loan from a related party | $ 7,340 | ||
Outstanding loan paid | $ 1,648 |
Ordinary Shares - Additional In
Ordinary Shares - Additional Information (Detail) - USD ($) | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Feb. 24, 2016 | Nov. 11, 2015 | Aug. 18, 2015 |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount, value | $ 40,000,000 | $ 20,000,000 | ||||
Stock repurchase program, additional authorized amount, value | $ 20,000,000 | $ 10,000,000 | $ 10,000,000 | |||
Repurchase of shares | $ 0 | $ 0 | $ 36,760,000 | |||
Ordinary shares | ||||||
Class of Stock [Line Items] | ||||||
Repurchase of shares, shares | 0 | 0 | 11,326,460 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 33,120 | $ 31,555 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | ||||||
Income tax rate | 25.00% | 25.00% | 25.00% | |||
Withholding tax on undistributed earnings | $ 3,011 | $ 2,801 | ||||
Income tax expenses | 2,307 | 4,620 | $ 6,150 | |||
Income tax reverse | 299 | 437 | 369 | |||
Unrecognized tax benefits | $ 158 | $ 163 | 163 | |||
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | |||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Beijing Champion and Champion Technology | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | |||||
Xiamen NetinNet | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | ||||
Xiamen NetinNet | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | |||||
China Distance Education Limited (''CDEL Hong Kong'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate | 5.00% | |||||
Withholding tax on undistributed earnings | $ 3,011 | $ 2,801 | ||||
Income tax expenses | $ 210 | $ 591 | $ 481 | |||
Nanjing Training School, Chuang Qingchun, Tianjin JinMaLan, Anqing JinMalan and Huzheng Education | ||||||
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Before Income Taxes [Line Items] | |||
Non - PRC | $ (656) | $ (4,204) | $ (1,929) |
PRC | 15,438 | 25,245 | 34,581 |
Income before income taxes | $ 14,782 | $ 21,041 | $ 32,652 |
Current and Deferred Components
Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current tax expense | $ 5,717 | $ 5,344 | $ 5,799 |
Deferred tax expense (benefit) | (3,410) | (724) | 351 |
Income Tax Expense, Total | $ 2,307 | $ 4,620 | $ 6,150 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income before taxes | $ 14,782 | $ 21,041 | $ 32,652 |
Income tax expense computed at applicable tax rates of 25% | 3,696 | 5,260 | 8,162 |
Effect of different tax rates in different jurisdictions | 770 | 988 | 413 |
Non-deductible expenses | 152 | 933 | 670 |
Effect of tax holidays | (2,610) | (2,812) | (3,464) |
Effect of valuation allowances | 285 | 116 | 164 |
Withholding tax on undistributed earnings | 313 | 572 | 574 |
Income tax reversal | (299) | (437) | (369) |
Income Tax Expense, Total | $ 2,307 | $ 4,620 | $ 6,150 |
Effective income tax rate | 15.61% | 21.96% | 18.83% |
Reconciliation of Effective T_2
Reconciliation of Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
The aggregate amount of tax holidays | $ 2,610 | $ 2,812 | $ 3,464 |
Basic | |||
The aggregate effect on basic and diluted net income per share: | $ 0.02 | $ 0.02 | $ 0.03 |
Diluted | |||
The aggregate effect on basic and diluted net income per share: | $ 0.02 | $ 0.02 | $ 0.03 |
Components of Deferred Taxes (D
Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 |
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Advertisement expenses | $ 137 | |
Accrued expenses | 877 | |
Allowance for doubtful accounts | 465 | |
Net operating loss carry-forwards | 215 | |
Total current deferred tax assets | 1,864 | |
Less: valuation allowance | (210) | |
Current deferred tax assets, net | 1,654 | |
Accrued expenses | $ 1,217 | |
Allowance for doubtful accounts | 598 | |
Change in fair value of contingent consideration payable | 435 | |
Intangible assets | 1 | |
Property, plant and equipment | 111 | 119 |
Net operating loss carry-forwards | 3,364 | 1,513 |
Total non-current deferred tax assets | 6,592 | 1,633 |
Less: valuation allowance | (881) | (414) |
Non-current deferred tax assets, net | 5,711 | 1,219 |
Intangible assets | 9,236 | 1,491 |
Withholding tax on undistributed earnings | 3,011 | 2,801 |
Unrealized gain on available-for-sale investments | 446 | 26 |
Total non-current deferred tax liabilities | 12,693 | 4,318 |
Investment | ||
Deferred Income Tax Assets And Liabilities [Line Items] | ||
Impairment loss from a long-term investment | $ 170 | |
Impairment loss from long-term investments | $ 867 |
Reconciliation of Accrued Unrec
Reconciliation of Accrued Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Beginning balance | $ 163 | $ 163 |
Foreign currency adjustment | (5) | 0 |
Ending balance | $ 158 | $ 163 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total contributions to the government, employee benefits, expensed as incurred | $ 12,297 | $ 8,591 | $ 7,113 |
Operating Lease Commitments (De
Operating Lease Commitments (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Commitments and Contingencies [Line Items] | |
Years ending September 30, 2019 | $ 10,924 |
2,020 | 7,709 |
2,021 | 5,031 |
2,022 | 3,936 |
2023 and thereafter | 26,488 |
Operating leases, future minimum payments due, total | $ 54,088 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||||||||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2018CNY (¥) | Jun. 22, 2018USD ($) | Jun. 22, 2018CNY (¥) | Jan. 05, 2018USD ($) | Jan. 05, 2018CNY (¥) | Dec. 18, 2017USD ($) | Dec. 18, 2017CNY (¥) | Nov. 17, 2017USD ($) | Dec. 23, 2016USD ($) | Dec. 23, 2016CNY (¥) | Sep. 30, 2016CNY (¥) | Jun. 22, 2015CNY (¥) | |
Commitment And Contingencies [Line Items] | |||||||||||||||
Operating leases rent expenses | $ 10,608 | $ 6,607 | $ 6,857 | ||||||||||||
Term loan agreement value | $ 15,081 | $ 14,900 | ¥ 300 | ||||||||||||
Term deposit used as collateral | $ 15,577 | 1,738 | ¥ 11.6 | ¥ 103.6 | |||||||||||
Term Loan | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Term loan agreement value | 35,300 | 15,081 | $ 40,000 | ||||||||||||
Number of loan agreements | 2 | 2 | 2 | 2 | |||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Term deposit used as collateral | $ 526 | ¥ 3.6 | $ 15,301 | ¥ 101.8 | $ 20,246 | ¥ 134.7 | $ 17,540 | ¥ 116.7 | |||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | |||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||
Term deposit used as collateral | $ 51,736 | ¥ 355.3 |
Summary of Changes in Noncontro
Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Noncontrolling Interest [Line Items] | |||
Beginning balance | $ 24,029 | ||
Capital contribution from noncontrolling interest shareholders | 89 | $ 12,164 | $ 4,824 |
Noncontrolling interest shareholders resulting from new acquisitions | 42,598 | 6,533 | |
(Loss) gain attributed to noncontrolling interest shareholders | (677) | (1,333) | (121) |
Ending balance | 65,491 | 24,029 | |
Noncontrolling interest | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 24,029 | 11,236 | |
Capital contribution from noncontrolling interest shareholders | 60 | 11,074 | 4,824 |
Noncontrolling interest shareholders resulting from new acquisitions | 42,598 | 6,533 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (1,873) | 386 | |
(Loss) gain attributed to noncontrolling interest shareholders | 677 | 1,333 | |
Ending balance | 65,491 | 24,029 | 11,236 |
Noncontrolling interest | Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 16,911 | 4,981 | |
Capital contribution from noncontrolling interest shareholders | 60 | 11,074 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (447) | 362 | |
(Loss) gain attributed to noncontrolling interest shareholders | (1,205) | 494 | |
Ending balance | 15,319 | 16,911 | 4,981 |
Noncontrolling interest | Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 7,118 | 6,255 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (229) | 24 | |
(Loss) gain attributed to noncontrolling interest shareholders | 1,830 | 839 | |
Ending balance | 8,719 | $ 7,118 | $ 6,255 |
Noncontrolling interest | Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest shareholders resulting from new acquisitions | 1,262 | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (43) | ||
(Loss) gain attributed to noncontrolling interest shareholders | (160) | ||
Ending balance | 1,059 | ||
Noncontrolling interest | Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | |||
Noncontrolling Interest [Line Items] | |||
Noncontrolling interest shareholders resulting from new acquisitions | 41,336 | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (1,154) | ||
(Loss) gain attributed to noncontrolling interest shareholders | 212 | ||
Ending balance | $ 40,394 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) ¥ / shares in Units, $ / shares in Units, $ in Thousands, ¥ in Millions | Jul. 10, 2018USD ($) | Jul. 10, 2018CNY (¥) | Nov. 01, 2017USD ($) | Nov. 01, 2017CNY (¥) | Mar. 29, 2017USD ($) | Mar. 29, 2017CNY (¥) | Dec. 08, 2016USD ($) | Dec. 08, 2016CNY (¥)¥ / sharesshares | Jul. 02, 2008 | Jan. 31, 2016USD ($) | Sep. 30, 2017USD ($)$ / shares | Sep. 30, 2018$ / shares | Jun. 30, 2017 | Sep. 30, 2016 | May 31, 2016 | Apr. 18, 2008$ / sharesshares |
Noncontrolling Interest [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 | |||||||||||||
Zhengbao Yucai | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the New Plan, percent | 40.50% | 40.50% | ||||||||||||||
Ordinary shares, par value | ¥ / shares | ¥ 1.99 | |||||||||||||||
Total fund raised by share issuance | $ 11,900 | ¥ 83.3 | ||||||||||||||
Combined equity interest percentage | 59.50% | |||||||||||||||
Zhengbao Yucai | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 60.10% | |||||||||||||||
Zhengbao Yucai | Revised Plan | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 35.80% | |||||||||||||||
Zhengbao Yucai | Revised Plan | Mr.Zhengdong Zhu | Chairman and Chief Executive Officer | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Percent of equity interest for subscription | 63.80% | 63.80% | ||||||||||||||
Zhengbao Yucai | Prior Plans | Independent Director Two | Mr.Liankui Hu | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Percent of equity interest for subscription | 24.60% | 24.60% | ||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, additional ownership percentage by non controlling owners | 11.00% | 11.00% | ||||||||||||||
Total consideration | $ 5,931 | ¥ 39.6 | ||||||||||||||
Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by non controlling owners | 49.00% | |||||||||||||||
Noncontrolling interest, ownership percentage by parent | 51.00% | 51.00% | 40.00% | |||||||||||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Total consideration | $ 6,059 | ¥ 40 | ||||||||||||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by non controlling owners | 20.00% | |||||||||||||||
Noncontrolling interest, ownership percentage by parent | 80.00% | 80.00% | ||||||||||||||
Maximum | Zhengbao Yucai | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Maximum number of ordinary shares that may be issued pursuant to the Prior Plan, shares | shares | 41,880,000 | |||||||||||||||
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Increase in China Distance Education Holdings Limited additional paid-in capital resulting from subscription of common shares of Zhengbao Yucai | $ 1,090 | |||||||||||||||
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | Beijing Champion Tongxin Management Consulting LLP ("Tongxin") | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by non controlling owners | 39.94% | |||||||||||||||
Capital injection from noncontrolling interest shareholders | $ 4,824 | |||||||||||||||
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 60.06% | |||||||||||||||
Beijing Champion Tongxin Management Consulting LLP ("Tongxin") | Mr.Zhengdong Zhu | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Ownership interest of co-general partner | 53.11% | |||||||||||||||
Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by non controlling owners | 20.00% | |||||||||||||||
Noncontrolling interest, ownership percentage by parent | 80.00% | |||||||||||||||
Beijing Haidian District Champion Training School (''Beijing Training School'') | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Increase in China Distance Education Holdings Limited additional paid-in capital resulting from subscription of common shares of Zhengbao Yucai | $ 1,090 | |||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Capital injection from noncontrolling interest shareholders | $ 33,217 | ¥ 221 | ||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Noncontrolling interest, ownership percentage by non controlling owners | 80.00% | 80.00% |
Schedule Discloses Effect of Ch
Schedule Discloses Effect of Changes in Ownership Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Noncontrolling Interest [Line Items] | |||
Net income attributable to China Distance Education Holdings Limited | $ 11,626 | $ 14,935 | $ 26,290 |
Transfers from noncontrolling interest: | |||
Changes from net income attributable to China Distance Education Holdings Limited's shareholders and transfer from noncontrolling interests | 11,655 | 16,025 | $ 26,290 |
Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | |||
Transfers from noncontrolling interest: | |||
Increase in the Group's additional paid-in capital in relation to capital contribution noncontrolling interest | $ 1,090 | ||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd. (''Jiangsu Asset) | |||
Transfers from noncontrolling interest: | |||
Increase in the Group's additional paid-in capital in relation to capital contribution noncontrolling interest | $ 29 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | 3 | 3 |
Revenues Attributable to Differ
Revenues Attributable to Different Service and Product Groups (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 166,668 | $ 130,988 | $ 117,548 |
Other operating income | 3,051 | 1,912 | 806 |
Operating costs and expenses: | |||
Cost of revenues | (87,883) | (57,412) | (48,334) |
Selling and marketing | (44,717) | (34,910) | (24,517) |
General and administrative | (21,253) | (19,468) | (16,778) |
Unallocated corporate expenses | (4,493) | (3,513) | (3,253) |
Operating income (loss) | 15,950 | 21,110 | 28,725 |
Unallocated corporate expenses | (4,493) | (3,513) | (3,253) |
Unallocated corporate expenses | (4,493) | (3,513) | (3,253) |
Total assets | 328,925 | 224,551 | 148,920 |
Total assets | 328,925 | 224,551 | 148,920 |
(Loss) gain from equity method investments | (172) | (153) | (91) |
Cost of Sales | |||
Operating costs and expenses: | |||
Cost of revenues | (87,883) | (57,412) | (48,334) |
Selling Expense | |||
Operating costs and expenses: | |||
Selling and marketing | (44,717) | (34,910) | (24,517) |
General and Administrative Expense | |||
Operating costs and expenses: | |||
General and administrative | (16,760) | (15,955) | (13,525) |
Operating Expense | |||
Operating costs and expenses: | |||
Total operating costs and expenses | (153,853) | (111,790) | (89,629) |
Other Operating Income (Expense) | |||
Segment Reporting Information [Line Items] | |||
Other operating income | 3,051 | 1,912 | 806 |
Operating Income (Loss) | |||
Operating costs and expenses: | |||
Operating income (loss) | 15,950 | 21,110 | 28,725 |
Depreciation And Amortization | |||
Operating costs and expenses: | |||
Amortization and depreciation | 6,299 | 4,790 | 3,639 |
Loss From Equity Method Investments | |||
Operating costs and expenses: | |||
(Loss) gain from equity method investments | 172 | (153) | (91) |
Professional education services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 150,484 | 114,190 | 110,137 |
Other operating income | 643 | 184 | 570 |
Operating costs and expenses: | |||
Cost of revenues | (79,168) | (50,168) | (44,473) |
Selling and marketing | (39,698) | (30,696) | (22,556) |
General and administrative | (14,548) | (12,890) | (12,049) |
Total operating costs and expenses | (133,414) | (93,754) | (79,078) |
Operating income (loss) | 17,797 | 20,620 | 31,629 |
Total assets | 236,496 | 133,836 | 93,609 |
Total assets | 236,496 | 133,836 | 93,609 |
Amortization and depreciation | 4,479 | 3,001 | 2,792 |
(Loss) gain from equity method investments | (58) | (153) | (91) |
Business Startup Training Service | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 4,608 | 5,276 | 4,375 |
Other operating income | 76 | 91 | 2 |
Operating costs and expenses: | |||
Cost of revenues | (2,644) | (2,069) | (1,915) |
Selling and marketing | (1,127) | (869) | (688) |
General and administrative | (896) | (1,034) | (776) |
Total operating costs and expenses | (4,667) | (3,972) | (3,379) |
Operating income (loss) | 17 | 1,395 | 998 |
Total assets | 46,205 | 45,569 | 13,262 |
Total assets | 46,205 | 45,569 | 13,262 |
Amortization and depreciation | 36 | 36 | 60 |
(Loss) gain from equity method investments | 230 | ||
Sale of Learning Simulation Software | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 11,576 | 11,522 | 3,036 |
Other operating income | 2,332 | 1,637 | 234 |
Operating costs and expenses: | |||
Cost of revenues | (6,071) | (5,175) | (1,946) |
Selling and marketing | (3,892) | (3,345) | (1,273) |
General and administrative | (1,316) | (2,031) | (700) |
Total operating costs and expenses | (11,279) | (10,551) | (3,919) |
Operating income (loss) | 2,629 | 2,608 | (649) |
Total assets | 46,224 | 45,146 | 42,049 |
Total assets | 46,224 | 45,146 | 42,049 |
Amortization and depreciation | $ 1,784 | $ 1,753 | $ 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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income | $ 11,626 | $ 14,935 | $ 26,290 |
Allocated to ordinary share - basic | 11,583 | 14,891 | 26,184 |
Allocated to nonvested restricted share - basic | $ 43 | $ 44 | $ 106 |
Weighted average number of ordinary shares outstanding | 132,363,620 | 131,432,211 | 136,497,929 |
Weighted average number of nonvested restricted share | 487,685 | 400,644 | 555,489 |
Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method | 265,850 | 1,370,400 | 1,412,526 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 133,117,155 | 133,203,255 | 138,465,944 |
Basic net income per share | $ 0.09 | $ 0.11 | $ 0.19 |
Basic net income per nonvested restricted share | 0.09 | 0.11 | 0.19 |
Diluted net income per share | 0.09 | 0.11 | 0.19 |
Diluted net income per nonvested restricted share | $ 0.09 | $ 0.11 | $ 0.19 |
Share Incentive Plan - Addition
Share Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 17, 2018 | Dec. 03, 2017 | Aug. 23, 2017 | Dec. 03, 2016 | Dec. 03, 2015 | Jan. 12, 2015 | Nov. 18, 2014 | Jul. 02, 2008 | Apr. 18, 2008 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Nov. 28, 2017 |
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 | ||||||||||||
Share options granted | 2,800,000 | ||||||||||||
Share options granted to selected employees exercise, price | $ 3.74 | ||||||||||||
Dividends payable, amount per share | 0.1125 | 0.1125 | $ 0.2250 | ||||||||||
Authorized reduction in exercise price of outstanding options | $ 0.1125 | $ 0 | $ 0.2250 | ||||||||||
Total intrinsic value of options exercised | $ 749 | $ 0 | $ 372 | ||||||||||
Nonvested restricted shares granted | 542,372 | 468,600 | 125,000 | 125,000 | |||||||||
Grant date fair value non vested restricted share | $ 3.6875 | $ 2.29 | $ 3.03 | $ 3.81 | |||||||||
Total share base compensation | $ 2,000 | ||||||||||||
Share-based compensation requisite service period | 4 years | ||||||||||||
Share-based compensation expenses | $ 2,306 | $ 2,111 | $ 2,015 | ||||||||||
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 options granted to selected employees exercise, price | $ 1.81 | $ 3.32 | |||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized | $ 106 | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 1 month 17 days | ||||||||||||
Share Awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 2 years | ||||||||||||
New Plan | |||||||||||||
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 | 2,850,000 | ||||||||||||
Non Vested Restricted Stock Awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 2 years | ||||||||||||
Nonvested restricted shares granted | 343,600 | 125,000 | 125,000 | 125,000 | |||||||||
Grant date fair value non vested restricted share | $ 2.32 | $ 2.21 | $ 3.03 | $ 3.8125 | |||||||||
Total share base compensation | $ 796 | $ 276 | $ 379 | $ 477 | |||||||||
Share-based compensation requisite service period | 2 years | 1 year | 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 | $ 706 | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 1 year | ||||||||||||
Share-based compensation expenses | $ 1,075 | $ 895 | $ 992 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - Employees - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 2,025,600 | 2,083,600 | 2,563,600 | |
Number of shares, Exercised | (895,148) | (456,000) | ||
Number of shares, Outstanding, Forfeited | (71,352) | (58,000) | (24,000) | |
Number of shares, Outstanding, Ending | 1,059,100 | 2,025,600 | 2,083,600 | 2,563,600 |
Weighted-average exercise price, Outstanding, Beginning | $ 2.85 | $ 2.86 | $ 3.36 | |
Number of shares, Expected to vest | 526,000 | |||
Weighted-average exercise price, Exercised | $ 1.66 | 3.54 | ||
Number of shares, Exercisable | 533,100 | |||
Weighted-average exercise price, Forfeited | $ 1.17 | 3.32 | 3.49 | |
Weighted-average exercise price, Outstanding, Ending | 1.39 | $ 2.85 | $ 2.86 | $ 3.36 |
Weighted-average exercise price: Expected to vest | 1.70 | |||
Aggregated intrinsic value, Outstanding, Beginning | $ 765 | |||
Weighted-average exercise price: Exercisable | $ 1.09 | |||
Weighted-average remaining contractual term (years), Outstanding | 5 years 6 months 29 days | 6 years 6 months 10 days | 7 years 6 months 18 days | 8 years 8 months 8 days |
Weighted-average remaining contractual term (years), Expected to vest | 6 years 1 month 20 days | |||
Weighted-average remaining contractual term (years), Exercisable | 5 years 7 days | |||
Outstanding, September 30, 2016 | $ 718 | $ 765 | ||
Aggregated intrinsic value, Expected to vest | 198 | |||
Aggregated intrinsic value, Exercisable | $ 520 |
Share Options, Nonemployees (De
Share Options, Nonemployees (Detail) - Non Employee - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 57,000 | 57,000 | 125,300 | |
Number of shares, Exercised | (57,000) | (68,300) | ||
Number of shares, Outstanding, Ending | 57,000 | 57,000 | 125,300 | |
Weighted-average exercise price, Outstanding, Beginning | $ 0.15 | |||
Number of shares, Exercisable | 0 | |||
Weighted-average exercise price, Exercised | $ 0 | $ 0 | $ 0 | |
Weighted-average exercise price, Outstanding, Ending | $ 0.15 | |||
Aggregated intrinsic value, Outstanding, Beginning | $ 96 | $ 184 | $ 382 | |
Weighted-average exercise price: Exercisable | $ 0 | |||
Outstanding, September 30, 2016 | $ 96 | $ 184 | $ 382 | |
Weighted-average remaining contractual term (years), Outstanding | 0 years | 6 months 18 days | 1 year 6 months 18 days | 2 years 6 months 18 days |
Exercisable at September 30, 2018 | $ 0 | |||
Weighted-average remaining contractual term (years), Exercisable | 0 years |
Nonvested Restricted Shares Act
Nonvested Restricted Shares Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested restricted shares outstanding, Beginning balance | 328,390 | 463,983 | 667,372 | ||
Granted | 542,372 | 468,600 | 125,000 | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (346,493) | (260,593) | (328,389) | ||
Nonvested restricted shares outstanding, Ending balance | 450,497 | 328,390 | 463,983 | ||
Weighted average grant-date fair value, outstanding Beginning balance | $ 3.44 | $ 3.72 | $ 3.85 | ||
Nonvested restricted shares, Expected to vest | 450,497 | ||||
Weighted average grant-date fair value, Granted | $ 3.6875 | $ 2.29 | 3.03 | 3.81 | |
Weighted average grant-date fair value, Vested | 3.11 | 3.75 | 4.01 | ||
Weighted average grant-date fair value, outstanding Ending balance | 2.49 | $ 3.44 | $ 3.72 | ||
Weighted average grant-date fair value, Expected to vest | $ 2.49 | ||||
Aggregated intrinsic value, Nonvested restricted shares outstanding | $ 933 | $ 551 | $ 1,499 | $ 2,132 | |
Aggregated intrinsic value, Expected to vest | $ 933 |
Total Share-Based Compensation
Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 2,306 | $ 2,111 | $ 2,015 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 161 | 164 | 162 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 2,065 | 1,862 | 1,769 |
Selling Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 80 | $ 85 | $ 84 |
Cash Dividend - Additional Info
Cash Dividend - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 28, 2017 | Nov. 29, 2016 | Nov. 11, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 12, 2018 | Jan. 06, 2017 | Jan. 06, 2016 |
Cash dividend declared per ordinary share | $ 0.1125 | $ 0.1125 | $ 0.2250 | ||||||
Ordinary shares, Outstanding | 133,275,521 | 131,854,773 | 132,804,973 | 131,854,773 | 140,219,033 | ||||
Dividends | $ 14,949 | $ 14,839 | $ 31,138 | $ 14,949 | $ 14,839 | $ 31,138 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Dec. 29, 2018USD ($) | Dec. 29, 2018CNY (¥) | Dec. 28, 2018shares | Jan. 17, 2018shares | Dec. 03, 2017shares | Dec. 03, 2016shares | Dec. 03, 2015shares | Jan. 12, 2015shares | Jan. 31, 2019shares | Nov. 12, 2018USD ($) | Nov. 12, 2018CNY (¥) | Sep. 30, 2018shares | Sep. 30, 2017shares | Sep. 30, 2016shares |
Subsequent Event [Line Items] | ||||||||||||||
Nonvested restricted shares granted | 542,372 | 468,600 | 125,000 | 125,000 | ||||||||||
Vesting period | 4 years | |||||||||||||
Non Vested Restricted Stock Awards | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Nonvested restricted shares granted | 343,600 | 125,000 | 125,000 | 125,000 | ||||||||||
Vesting period | 2 years | |||||||||||||
Subsequent Event | Non Vested Restricted Stock Awards | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Nonvested restricted shares granted | 353,200 | 451,968 | ||||||||||||
Vesting period | 2 years | 1 year | ||||||||||||
Subsequent Event | Champion Tax Advisory [Member] | ||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||
Equity ownership interest | 60.00% | 60.00% | ||||||||||||
Total consideration | $ 2,020 | ¥ 13,900 | $ 5,224 | ¥ 35,900 |
Schedule I - BALANCE SHEETS (De
Schedule I - BALANCE SHEETS (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Current assets | ||||
Cash and cash equivalents | $ 30,826 | $ 60,526 | ||
Prepayment and other current assets | 17,054 | 10,439 | ||
Total current assets | 127,876 | 119,835 | ||
Non-current assets | ||||
Long-term investment | 33,837 | 43,631 | ||
Total non-current assets | 201,049 | 104,716 | ||
Total assets | 328,925 | 224,551 | $ 148,920 | |
Current liabilities | ||||
Accrued expenses and other liabilities | 42,141 | 38,767 | ||
Amounts due to subsidiaries | 1,648 | |||
Bank borrowings | 50,975 | 29,965 | ||
Total current liabilities | 194,440 | 128,710 | ||
Total liabilities | 219,160 | 151,739 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 131,854,773 and 133,275,521 shares issued and outstanding at September 30, 2017 and 2018, respectively) | 13 | 13 | ||
Additional paid-in capital | 21,557 | 19,097 | ||
Accumulated other comprehensive loss | (7,013) | (3,367) | ||
Retained earnings | 29,717 | 33,040 | ||
Total equity | 44,274 | 48,783 | ||
Total liabilities and equity | 328,925 | 224,551 | ||
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 2,223 | 6,021 | ||
Prepayment and other current assets | 271 | 271 | ||
Amounts due from subsidiaries | 8,669 | 10,272 | ||
Total current assets | 11,163 | 16,564 | ||
Non-current assets | ||||
Long-term investment | 2,733 | 911 | ||
Investment in subsidiaries | 161,896 | 150,935 | ||
Total non-current assets | 164,629 | 151,846 | ||
Total assets | 175,792 | 168,410 | ||
Current liabilities | ||||
Accrued expenses and other liabilities | 1,144 | 1,521 | ||
Amounts due to subsidiaries | 79,836 | 88,141 | ||
Bank borrowings | 50,538 | 29,965 | ||
Total current liabilities | 131,518 | 119,627 | ||
Total liabilities | 131,518 | 119,627 | ||
Shareholders' equity | ||||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 and 500,000,000 shares authorized; 131,854,773 and 133,275,521 shares issued and outstanding at September 30, 2017 and 2018, respectively) | 13 | 13 | ||
Additional paid-in capital | 21,557 | 19,097 | ||
Accumulated other comprehensive loss | (7,013) | (3,367) | ||
Retained earnings | 29,717 | 33,040 | ||
Total equity | 44,274 | 48,783 | $ 90,809 | |
Total liabilities and equity | 175,792 | 168,410 | ||
Parent Company | Investments In Subsidiaries And Equity Method Investees | ||||
Non-current assets | ||||
Investment in subsidiaries | $ 161,896 | $ 150,935 |
Schedule I - BALANCE SHEETS (Pa
Schedule I - BALANCE SHEETS (Parenthetical) (Detail) - $ / shares | Sep. 30, 2018 | Jan. 12, 2018 | Sep. 30, 2017 | Jan. 06, 2017 | Jan. 06, 2016 | 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 | 133,275,521 | 131,854,773 | ||||
Ordinary shares, Outstanding | 133,275,521 | 132,804,973 | 131,854,773 | 131,854,773 | 140,219,033 | |
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 | 133,275,521 | 131,854,773 | ||||
Ordinary shares, Outstanding | 133,275,521 | 131,854,773 |
Schedule I - STATEMENTS OF OPER
Schedule I - STATEMENTS OF OPERATIONS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | $ (87,883) | $ (57,412) | $ (48,334) |
Selling expenses | (44,717) | (34,910) | (24,517) |
General and administrative expenses | (21,253) | (19,468) | (16,778) |
Operating income (loss) | 15,950 | 21,110 | 28,725 |
Equity in income of subsidiaries and variable interest entities | (172) | (153) | (91) |
Interest income | 2,522 | 1,531 | 2,020 |
Interest expense | (3,331) | (1,049) | (555) |
Exchange gain | 2,476 | 128 | 2,462 |
Net income attributable to China Distance Education Holdings Limited | 11,626 | 14,935 | 26,290 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | (161) | (164) | (162) |
Selling expenses | (80) | (85) | (84) |
General and administrative expenses | (2,887) | (3,250) | (2,591) |
Operating income (loss) | (3,128) | (3,499) | (2,837) |
Equity in income of subsidiaries and variable interest entities | 14,763 | 19,287 | 27,902 |
Interest income | 1 | 1 | 2 |
Interest expense | (2,110) | (1,362) | (1,131) |
Exchange gain | 2,100 | 508 | 2,354 |
Net income attributable to China Distance Education Holdings Limited | $ 11,626 | $ 14,935 | $ 26,290 |
Schedule I - STATEMENTS OF COMP
Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | $ 11,626 | $ 14,935 | $ 26,290 |
Other comprehensive loss | |||
Foreign currency translation adjustment | (8,118) | 264 | (6,395) |
Total comprehensive income | 7,980 | 14,986 | 20,137 |
Parent Company | |||
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | 11,626 | 14,935 | 26,290 |
Other comprehensive loss | |||
Foreign currency translation adjustment | (6,245) | (122) | (6,153) |
Total comprehensive income | $ 5,381 | $ 14,813 | $ 20,137 |
Schedule I - STATEMENT OF CHANG
Schedule I - STATEMENT OF CHANGES IN EQUITY (Detail) - USD ($) $ in Thousands | Nov. 28, 2017 | Nov. 29, 2016 | Nov. 11, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | $ 48,783 | |||||
Beginning Balance (in shares) | 131,854,773 | |||||
Net income for the year | $ 11,626 | $ 14,935 | $ 26,290 | |||
Foreign currency translation adjustments | (8,118) | 264 | (6,395) | |||
Repurchase of ordinary shares (Note 17) | (36,760) | |||||
Unrealized gain on available-for-sale investments, net of tax effect of US$26 | 2,599 | 173 | ||||
Options exercised | 1,489 | 1,659 | ||||
Stock-based compensation expense (Note 25) | 2,306 | 2,111 | 2,015 | |||
Dividends (Note 26) | $ (14,949) | $ (14,839) | $ (31,138) | (14,949) | (14,839) | (31,138) |
Capital contribution from noncontrolling interests | 89 | 12,164 | 4,824 | |||
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | ||||
Repayment of loan to optionees in connection with exercise of options | $ 193 | $ 199 | 177 | |||
Ending Balance (in shares) | 133,275,521 | 131,854,773 | ||||
Ending Balance | $ 109,765 | $ 72,812 | $ 56,472 | |||
Ending Balance | $ 44,274 | $ 48,783 | ||||
Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance (in shares) | 131,854,773 | 131,729,773 | 142,406,933 | |||
Repurchase of ordinary shares (Note 17) | $ (1) | |||||
Repurchase of ordinary shares (in shares) | 11,326,460 | |||||
Options exercised (in shares) | 952,148 | 524,300 | ||||
Stock-based compensation expense (in shares) (Note 25) | 468,600 | 125,000 | 125,000 | |||
Ending Balance (in shares) | 133,275,521 | 131,854,773 | 131,729,773 | |||
Ending Balance | $ 13 | $ 13 | $ 13 | |||
Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repurchase of ordinary shares (Note 17) | (21,289) | |||||
Options exercised | 1,489 | 1,659 | ||||
Stock-based compensation expense (Note 25) | 2,306 | 2,111 | 2,015 | |||
Dividends (Note 26) | (20,800) | |||||
Capital contribution from noncontrolling interests | 29 | 1,090 | ||||
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | ||||
Repayment of loan to optionees in connection with exercise of options | 193 | 199 | 177 | |||
Ending Balance | 21,557 | 19,097 | 15,697 | |||
Accumulated other comprehensive income (loss) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Foreign currency translation adjustments | (6,245) | (122) | (6,153) | |||
Unrealized gain on available-for-sale investments, net of tax effect of US$26 | 2,599 | 173 | ||||
Ending Balance | (7,013) | (3,367) | (3,418) | |||
Retained earnings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Repurchase of ordinary shares (Note 17) | (15,470) | |||||
Dividends (Note 26) | (14,949) | (14,839) | (10,338) | |||
Ending Balance | 29,717 | 33,040 | 32,944 | |||
Parent Company | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | $ 48,783 | 90,809 | ||||
Beginning Balance (in shares) | 131,854,773 | |||||
Net income for the year | $ 11,626 | 14,935 | 26,290 | |||
Foreign currency translation adjustments | (6,245) | (122) | (6,153) | |||
Repurchase of ordinary shares (Note 17) | (36,760) | |||||
Unrealized gain on available-for-sale investments, net of tax effect of US$26 | 2,599 | 173 | ||||
Options exercised | 1,489 | 1,659 | ||||
Stock-based compensation expense (Note 25) | 2,306 | 2,111 | 2,015 | |||
Dividends (Note 26) | (14,949) | (14,839) | (31,138) | |||
Capital contribution from noncontrolling interests | 29 | 1,090 | ||||
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | ||||
Repayment of loan to optionees in connection with exercise of options | $ 193 | $ 199 | 177 | |||
Ending Balance (in shares) | 133,275,521 | 131,854,773 | ||||
Ending Balance | $ 44,274 | 45,236 | ||||
Ending Balance | 44,274 | $ 48,783 | ||||
Parent Company | Ordinary shares | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | $ 13 | $ 14 | ||||
Beginning Balance (in shares) | 131,854,773 | 131,729,773 | 142,406,933 | |||
Repurchase of ordinary shares (Note 17) | $ (1) | |||||
Repurchase of ordinary shares (in shares) | (11,326,460) | |||||
Options exercised (in shares) | 952,148 | 524,300 | ||||
Stock-based compensation expense (in shares) (Note 25) | 468,600 | 125,000 | 125,000 | |||
Ending Balance (in shares) | 133,275,521 | 131,854,773 | 131,729,773 | |||
Ending Balance | $ 13 | $ 13 | ||||
Ending Balance | $ 13 | |||||
Parent Company | Additional paid-in capital | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 19,097 | 55,598 | ||||
Repurchase of ordinary shares (Note 17) | (21,289) | |||||
Options exercised | 1,489 | 1,659 | ||||
Stock-based compensation expense (Note 25) | 2,306 | 2,111 | 2,015 | |||
Dividends (Note 26) | (20,800) | |||||
Capital contribution from noncontrolling interests | 29 | 1,090 | ||||
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | ||||
Repayment of loan to optionees in connection with exercise of options | 193 | 199 | 177 | |||
Ending Balance | 21,557 | 15,697 | ||||
Ending Balance | 19,097 | |||||
Parent Company | Accumulated other comprehensive income (loss) | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | (3,367) | 2,735 | ||||
Foreign currency translation adjustments | (6,245) | (122) | (6,153) | |||
Unrealized gain on available-for-sale investments, net of tax effect of US$26 | 2,599 | 173 | ||||
Ending Balance | (7,013) | (3,418) | ||||
Ending Balance | (3,367) | |||||
Parent Company | Retained earnings | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Beginning Balance | 33,040 | 32,462 | ||||
Net income for the year | 11,626 | 14,935 | 26,290 | |||
Repurchase of ordinary shares (Note 17) | (15,470) | |||||
Dividends (Note 26) | (14,949) | (14,839) | (10,338) | |||
Ending Balance | $ 29,717 | $ 32,944 | ||||
Ending Balance | $ 33,040 |
Schedule I - STATEMENT OF CHA_2
Schedule I - STATEMENT OF CHANGES IN EQUITY (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, net of tax effect | $ 420 | $ 26 | $ 0 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, net of tax effect | $ 420 | $ 26 |
Schedule I - STATEMENTS OF CASH
Schedule I - STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 12,303 | $ 16,268 | $ 26,411 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Equity in profit of subsidiaries and variable interest entities | 172 | 153 | 91 |
Share-based compensation | 2,306 | 2,111 | 2,015 |
(Decrease) increase in accrued expenses and other liabilities | 357 | 4,822 | 3,792 |
(Increase) decrease in prepayments and other assets | (2,710) | (4,429) | (843) |
Exchange (gain) loss | (2,476) | (128) | (2,462) |
Net cash generated from operating activities | 50,094 | 37,731 | 38,969 |
Purchase of available-for-sale investment | (1,071) | (3,400) | (658) |
Net cash used in investing activity | (55,497) | (45,468) | (34,023) |
Repurchase of ordinary shares | (36,760) | ||
Proceeds from share options exercised by employees | 1,489 | 1,659 | |
Loan to optionees in connection with exercise of options | (1,557) | (1,663) | |
Repayment of loan to optionees in connection with exercise of options | 193 | 199 | 177 |
Capital contribution from noncontrolling interests | 89 | 12,236 | 4,859 |
Dividends paid to shareholders | (14,949) | (14,839) | (31,138) |
Net cash (used in) generated from financing activities | (3,302) | 33,295 | (62,866) |
Cash and cash equivalents and restricted cash at beginning of the year | 95,381 | 69,224 | 134,211 |
Cash and cash equivalents and restricted cash at end of the year | 82,562 | 95,381 | 69,224 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | 11,626 | 14,935 | 26,290 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Equity in profit of subsidiaries and variable interest entities | (14,763) | (19,287) | (27,902) |
Share-based compensation | 2,306 | 2,111 | 2,015 |
(Decrease) increase in accrued expenses and other liabilities | (377) | 1,263 | (29) |
(Increase) decrease in amounts due from subsidiaries | 1,604 | (1,263) | (5,120) |
(Increase) decrease in prepayments and other assets | 12 | (3) | |
Increase (decrease) in amounts due to subsidiaries | (8,305) | 6,059 | 65,631 |
Exchange (gain) loss | (2,100) | (508) | (2,354) |
Net cash generated from operating activities | (9,575) | 4,383 | 59,957 |
Purchase of available-for-sale investment | (911) | ||
Net cash used in investing activity | (911) | ||
Repurchase of ordinary shares | (36,760) | ||
Proceeds from share options exercised by employees | 1,489 | 1,659 | |
Loan to optionees in connection with exercise of options | (1,558) | (1,663) | |
Repayment of loan to optionees in connection with exercise of options | 193 | 199 | 177 |
Capital contribution from noncontrolling interests | 29 | 1,090 | |
New short-term loans drawn down | 20,573 | 14,414 | |
Dividends paid to shareholders | (14,949) | (14,839) | (31,138) |
Net cash (used in) generated from financing activities | 5,777 | 864 | (67,725) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (3,798) | 4,336 | (7,768) |
Cash and cash equivalents and restricted cash at beginning of the year | 6,021 | 1,685 | 9,453 |
Cash and cash equivalents and restricted cash at end of the year | 2,223 | 6,021 | 1,685 |
Parent Company | Long Term Intra Entity Foreign Currency Transaction Losses | |||
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Exchange (gain) loss | $ (1,666) | $ 553 | $ (925) |
Schedule I - Basis of Preparati
Schedule I - Basis of Preparation (Detail) | Sep. 30, 2018 |
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, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ (172) | $ (153) | $ (91) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Investments in subsidiaries and VIEs | 161,896 | 150,935 | |
Equity in income of subsidiaries and variable interest entities | $ 14,763 | $ 19,287 | $ 27,902 |