Cover
Cover | 12 Months Ended |
Sep. 30, 2019shares | |
Cover [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Period End Date | Sep. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | China Distance Education Holdings LTD |
Entity Central Index Key | 0001438644 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 134,210,745 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | American Depositary Shares, each representing four ordinary shares, par value $0.0001 per share |
Trading Symbol | DL |
Security Exchange Name | NYSE |
Entity Interactive Data Current | Yes |
Entity Address, Country | KY |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 67,977 | $ 30,826 |
Restricted cash | 38,358 | 51,736 |
Short-term investments | 22,118 | 17,073 |
Accounts receivable, net of allowance for doubtful accounts of US$1,342 and US$1,282 as of September 30, 2018 and 2019, respectively | 7,330 | 7,280 |
Inventories | 4,232 | 2,782 |
Prepayment and other current assets | 26,732 | 17,054 |
Amounts due from related parties | 515 | |
Deferred costs | 1,427 | 1,125 |
Total current assets | 168,689 | 127,876 |
Non-current assets | ||
Property, plant and equipment, net | 37,935 | 27,972 |
Goodwill, net | 74,829 | 79,516 |
Other intangible assets, net | 30,113 | 39,500 |
Deposit for purchases of non-current assets | 4,448 | 8,126 |
Long-term investments | 25,379 | 33,837 |
Deferred tax assets | 3,865 | 5,711 |
Other non-current assets | 10,092 | 6,387 |
Total non-current assets | 186,661 | 201,049 |
Total assets | 355,350 | 328,925 |
Current liabilities | ||
Bank borrowings | 38,502 | 50,975 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$34,993 and US$35,491 as of September 30, 2018 and 2019, respectively) | 38,267 | 42,141 |
Amount due to a related party | 600 | |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$4,847 and US$8,188 as of September 30, 2018 and 2019, respectively) | 10,899 | 9,293 |
Deferred revenue – current portion (including deferred revenue of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$77,299 and US$93,364 as of September 30, 2018 and 2019, respectively) | 94,202 | 78,194 |
Refundable fees – current portion (including refundable fees of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$13,837 and US$435 as of September 30, 2018 and 2019, respectively) | 435 | 13,837 |
Total current liabilities | 182,905 | 194,440 |
Non-current liabilities | ||
Deferred revenue – non-current portion (including deferred revenue of the consolidated VIEs without recourse to China Distance Education Holdings Limited of nil and US$33,564 as of September 30, 2018 and 2019, respectively) | 33,564 | |
Refundable fees – non-current portion (including refundable fees of the consolidated VIEs without recourse to China Distance Education Holdings Limited of nil and US$2,440 as of September 30, 2018 and 2019, respectively) | 2,440 | |
Deferred tax liabilities | 12,695 | 12,693 |
Long-term bank borrowing | 12,027 | |
Total non-current liabilities | 48,699 | 24,720 |
Total liabilities | 231,604 | 219,160 |
Commitments and contingencies (Note 21) | ||
Equity | ||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 133,275,521 and 134,210,745 shares issued and outstanding as of September 30, 2018 and 2019, respectively) | 13 | 13 |
Additional paid-in capital | 24,507 | 21,557 |
Accumulated other comprehensive loss | (12,357) | (7,013) |
Retained earnings | 60,668 | 29,717 |
Total China Distance Education Holdings Limited shareholder's equity | 72,831 | 44,274 |
Noncontrolling interests | 50,915 | 65,491 |
Total equity | 123,746 | 109,765 |
Total liabilities and equity | $ 355,350 | $ 328,925 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts receivable, net of allowance for doubtful accounts | $ 1,282 | $ 1,342 |
Accrued expenses and other liabilities | 38,267 | 42,141 |
Income tax payable | 10,899 | 9,293 |
Deferred revenue | 94,202 | $ 78,194 |
Deferred revenue – non-current portion | 33,564 | |
Refundable fees – non-current portion | $ 2,440 | |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Issued | 134,210,745 | 133,275,521 |
Ordinary shares, Outstanding | 134,210,745 | 133,275,521 |
Variable Interest Entity, Primary Beneficiary | ||
Accrued expenses and other liabilities | $ 35,491 | $ 34,993 |
Income tax payable | 8,188 | 4,847 |
Deferred revenue | 93,364 | 77,299 |
Refundable fees | 435 | 13,837 |
Deferred revenue – non-current portion | 33,564 | 0 |
Refundable fees – non-current portion | $ 2,440 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 211,822 | $ 166,668 | $ 130,988 |
Cost of sales | |||
Total cost of sales | (104,741) | (87,883) | (57,412) |
Gross profit | 107,081 | 78,785 | 73,576 |
Operating expenses | |||
Selling expenses | (61,460) | (44,717) | (34,910) |
General and administrative expenses | (24,919) | (21,253) | (19,468) |
Impairment of goodwill | (1,517) | ||
Total operating expenses | (87,896) | (65,970) | (54,378) |
Change in fair value in connection with business combination | 695 | 84 | |
Other operating income | 2,968 | 3,051 | 1,912 |
Operating income (loss) | 22,848 | 15,950 | 21,110 |
Interest income | 2,207 | 2,522 | 1,531 |
Interest expense | (2,819) | (3,331) | (1,049) |
Gain from deconsolidation of a subsidiary | 6,869 | ||
Impairment loss from long-term investments | (6,920) | (2,835) | (679) |
Other income | 318 | ||
Exchange gain | 3,296 | 2,476 | 128 |
Income before income taxes and loss from equity method investments | 25,799 | 14,782 | 21,041 |
Income tax expense | (8,121) | (2,307) | (4,620) |
Loss from equity method investments | (1,484) | (172) | (153) |
Net income | 16,194 | 12,303 | 16,268 |
Less: Net income (loss) attributable to noncontrolling interests | (5,060) | 677 | 1,333 |
Net income attributable to China Distance Education Holdings Limited | $ 21,254 | $ 11,626 | $ 14,935 |
Net income attributable to ordinary shareholders | |||
Basic | $ 0.16 | $ 0.09 | $ 0.11 |
Diluted | $ 0.16 | $ 0.09 | $ 0.11 |
Weighted average shares used in calculating net income per share | |||
Basic | 133,060,900 | 132,363,620 | 131,432,211 |
Diluted | 134,138,117 | 133,117,155 | 133,203,255 |
Service [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 145,917 | $ 117,026 | $ 95,503 |
Cost of sales | |||
Total cost of sales | (85,252) | (78,936) | (50,540) |
Product [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | 27,372 | 10,213 | 8,980 |
Cost of sales | |||
Total cost of sales | (19,489) | (8,947) | (6,872) |
Others [Member] | |||
Sales, net of business tax, value-added tax and related surcharges | |||
Total net revenues | $ 38,533 | $ 39,429 | $ 26,505 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income | $ 16,194 | $ 12,303 | $ 16,268 |
Foreign currency translation adjustments | (8,854) | (8,118) | 264 |
Unrealized gain on available-for-sale investments, net of tax effect of US$26, US$420 and US$219 for years ended September 30, 2017, 2018 and 2019, respectively | 1,375 | 2,599 | 173 |
Comprehensive income | 8,715 | 6,784 | 16,705 |
Less: comprehensive income (loss) attributable to noncontrolling interests | (7,195) | (1,196) | 1,719 |
Comprehensive income attributable to China Distance Education Holdings Limited | $ 15,910 | $ 7,980 | $ 14,986 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Unrealized gain on available-for-sale investments, net of tax effect | $ 219 | $ 420 | $ 26 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings | Total China Distance Education Holding Limited shareholders' equity | Noncontrolling interests |
Beginning Balance (in shares) at Sep. 30, 2016 | 131,729,773 | ||||||
Beginning Balance at Sep. 30, 2016 | $ 56,472 | $ 13 | $ 15,697 | $ (3,418) | $ 32,944 | $ 45,236 | $ 11,236 |
Net income (loss) 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 paid by a subsidiary to its noncontrolling interests shareholders (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 investments, 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 | ||||||
Ending Balance at Sep. 30, 2017 | 72,812 | $ 13 | 19,097 | (3,367) | 33,040 | 48,783 | 24,029 |
Net income (loss) 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 paid by a subsidiary to its noncontrolling interests shareholders (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 investments, 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 |
Net income (loss) for the year | 16,194 | 21,254 | 21,254 | (5,060) | |||
Foreign currency translation adjustments | (8,854) | (6,719) | (6,719) | (2,135) | |||
Stock-based compensation expense (in shares) (Note 25) | 935,224 | ||||||
Stock-based compensation expense (Note 25) | 2,005 | 2,005 | 2,005 | ||||
Dividends paid by a subsidiary to its noncontrolling interests shareholders (Note 26) | (291) | (291) | |||||
Capital contribution from noncontrolling interests | 29 | 29 | |||||
Unrealized gain on available-for-sale investments, net of tax effect | 1,375 | 1,375 | 1,375 | ||||
Repayment of loan to optionees in connection with exercise of options | 135 | 135 | 135 | ||||
Purchase of noncontrolling interests of a consolidated subsidiary | (6,309) | 810 | 810 | (7,119) | |||
Modified retrospective adjustment of upon adoption of Topic 606 | $ 9,697 | 9,697 | |||||
Ending Balance (in shares) at Sep. 30, 2019 | 134,210,745 | 134,210,745 | |||||
Ending Balance at Sep. 30, 2019 | $ 123,746 | $ 13 | $ 24,507 | $ (12,357) | $ 60,668 | $ 72,831 | $ 50,915 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Unrealized gain on available-for-sale securities, net of tax effect | $ 219 | $ 420 | $ 26 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 16,194 | $ 12,303 | $ 16,268 |
Adjustments to reconcile net income to net cash generated from operating activities: | |||
Stock-based compensation | 2,005 | 2,306 | 2,111 |
Depreciation of property, plant and equipment | 3,958 | 3,069 | 2,792 |
Amortization of other intangible assets | 8,765 | 3,230 | 1,998 |
Provision of inventories | 1,090 | 15 | 261 |
Change in allowance for doubtful accounts | (8) | 199 | 516 |
Impairment loss on goodwill | 1,517 | ||
Losses on disposition of property, plant and equipment | 344 | 21 | 93 |
Loss from equity method investments | 1,484 | 172 | 153 |
Impairment loss from long-term investments | 6,920 | 2,835 | 679 |
Gain from disposal of an investment | (318) | ||
Change in fair value in connection with business combination | (695) | (84) | |
Gain from deconsolidation of a subsidiary | (6,869) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (631) | (1,921) | (581) |
Inventories | (2,712) | (1,769) | (154) |
Prepayments and other current assets | (7,568) | (2,710) | (4,429) |
Amounts due from related parties | (535) | 7 | 196 |
Deferred costs | (359) | (458) | 400 |
Deferred tax assets | 1,154 | (3,050) | 25 |
Other non-current assets | (1,306) | (1,328) | (1,319) |
Accrued expenses and other liabilities | (179) | 357 | 4,822 |
Income tax payable | 1,112 | 582 | 679 |
Deferred revenue | 68,368 | 23,243 | 13,765 |
Refundable fees | (10,836) | 13,444 | 205 |
Deferred tax liabilities | 277 | (369) | (749) |
Amount due to a related party | 623 | ||
Net cash provided by operating activities | 81,795 | 50,094 | 37,731 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of businesses, net of cash acquired of nil, US$565 and nil as of September 30, 2017, 2018 and 2019 | (15,488) | ||
Disposal of a consolidated subsidiary, net of cash disposed of nil, nil US$4,787 as of September 30, 2017, 2018 and 2019 | (2,769) | ||
Maturity of short-term investments | 14,714 | 28,211 | 70,532 |
Purchase of short-term investments | (20,660) | (21,905) | (74,420) |
Acquisition of property, plant and equipment | (9,601) | (15,462) | (2,054) |
Purchase of additional equity interests of a consolidated subsidiary | (5,571) | ||
Settlement of contingent consideration related to previously acquired equity interests of a consolidated subsidiary | (1,048) | ||
Proceeds from disposition of property, plant and equipment | 49 | ||
Proceeds from disposal of an equity securities without readily determinable fair value | 3,589 | ||
Acquisition of other intangible assets | (663) | (736) | (271) |
Payment of deposit for the acquisition of non-current assets | (2,744) | (8,359) | (457) |
Payment for deposit for the purchase of investments | (218) | (1,688) | |
Purchase of equity method investments | (87) | (2,600) | |
Purchase of equity securities without readily determinable fair value | (18,136) | (33,710) | |
Purchase of available-for-sale investments | (1,071) | (3,400) | |
Net cash used in investing activities | (25,058) | (55,497) | (45,468) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Capital contribution from noncontrolling interests | 29 | 89 | 12,236 |
Loan repayments | (24,092) | (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) | |
Proceeds from share options exercised by employees | 1,489 | ||
Loan to optionees in connection with exercise of options | (1,557) | ||
Repayment of loan to optionees in connection with exercise of options | 135 | 193 | 199 |
Dividends paid to shareholders | (14,949) | (14,839) | |
Dividends paid by a subsidiary to its noncontrolling interests shareholders | (291) | ||
Net cash provided by (used in) financing activities | (24,219) | (3,302) | 33,295 |
Exchange rate effect on cash and cash equivalents and restricted cash | (8,745) | (4,114) | 599 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 23,773 | (12,819) | 26,157 |
Cash and cash equivalents and restricted cash at beginning of the year | 82,562 | 95,381 | 69,224 |
Cash and cash equivalents and restricted cash at end of the year | 106,335 | 82,562 | 95,381 |
Supplemental schedule of cash flow information | |||
Income tax paid | (5,898) | (5,942) | (4,703) |
Supplemental schedule of non-cash activities | |||
Acquisition of property, plant and equipment and other intangible assets through utilization of deposits | 6,238 | 474 | 924 |
Income tax reversal | $ 79 | $ 299 | $ 437 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | |||
Cash acquired | $ 0 | $ 565 | $ 0 |
Cash divested from deconsolidation | $ 4,787 | $ 0 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2019 | |
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 (the “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 (the “PRC”). As of September 30, 2019, details of the Company’s subsidiaries, its VIEs and VIEs’ subsidiaries were as follows: Company name Later of date of acquisition Place of incorporation /operation 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”)4 May 3, 2016 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) May 3, 2016 PRC 28.608%* Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance”) May 3, 2016 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 Nanchang Champion Vocational Training School. (“Nanchang Training School”) March 18, 2019 PRC 35.76%* Provision of start-up Haimen Zhengbao Yucai Vocational Training School (“Haimen Training School”) May 20, 2019 PRC 35.76%* Provision of start-up VIEs 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. Company name Later of date of Place of incorporation Percentage of Principal activities 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 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) November 1, 2017 PRC Nil Provision of financial and tax advisory and accounting service Jiangsu Caishuibang Enterprise Management Co., Ltd. (“Caishuibang”) November 1, 2017 PRC Nil Provision of development of web-based Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Shenzhen Ruida Chengtai Education Technology Co., Ltd. (“Shenzhen Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Guangzhou Ruida Chengtai Education Technology Co., Ltd. (“Guangzhou Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Hangzhou Ruitai Education Technology Co., Ltd. (“Hangzhou Chengtai”) July 11, 2018 PRC Nil Provision of legal profession services Nanjing Ruida Chengtai Education Technology. Co., Ltd. (“Nanjing Chengtai”) July 11, 2018 PRC Nil Provision of legal profession services Beijing Youbang Culture and Art Training School (“Beijing Youbang”) July 11, 2018 PRC Nil Provision of legal profession services Jiangsu Champion Healthcare Education Technology Co., Ltd. (“Jiangsu Healthcare”) January 29, 2019 PRC Nil Provision of online education services Jiangsu Champion E&C Education Technology. Co., Ltd (“Jiangsu E&C”) January 29, 2019 PRC Nil Provision of online education services Jiangsu Champion Self-taught Education Co., Ltd. (“Jiangsu Self-taught”) January 29, 2019 PRC Nil Provision of online education services Beijing Champion H&E Technology Co., Ltd. (“Beijing H&E”) March 21, 2019 PRC Nil Provision of online education services Beijing Champion E&C Education Technology. Co., Ltd (“Beijing E&C”) March 05, 2019 PRC Nil Provision of online education services Beijing Champion Self-taught Education Co., Ltd. (“Beijing Self-taught”) March 07, 2019 PRC Nil Provision of online education 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, 2019. • 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, 2018 and 2019, the VIEs and their subsidiaries accounted for an aggregate of 51% and 57%, respectively, of the Group’s consolidated total assets, and 60% and 75%, 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, 2018 and 2019 and for each of the three years ended September 30, 2019 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within the VIEs and VIEs’ subsidiaries: As of September 30, 2018 2019 US$ US$ Cash and cash equivalents 20,477 39,919 Prepayment and other current assets 13,365 24,533 Total current assets 132,527 192,471 Total assets 258,535 314,943 Deferred revenue – current portion 77,299 93,364 Total current liabilities 130,976 137,478 Deferred revenue – non-current — 33,564 Total non-current — 36,004 Total liabilities 130,976 173,483 Total equity 127,559 141,460 For the years ended September 30, 2017 2018 2019 US$ US$ US$ Net revenues 114,371 151,146 183,893 Net income 31,379 29,532 36,393 Net cash provided by operating activities 22,100 44,054 41,568 Net cash used in investing activities (31,403 ) (44,414 ) (20,517 ) Net cash used in financing activities (5,506 ) (5,706 ) — Effects of exchange rate changes (5,435 ) (555 ) (1,609 ) 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, 2019 | |
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, VIEs, and VIEs’ subsidiaries, 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, 2018 and 2019 represented cash pledged as security for bank borrowings. Refer to Note 15. Short-term investments Short-term investments consist 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. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs and disposal. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value for obsolete and slow-moving goods. 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, amounts due from related parties, short-term and long-term investments, bank borrowings, long-term bank borrowing, amount due to a related party and accounts payable. Available-for-sale held-to-maturity Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Allowance is reversed when the underlying balance of doubtful accounts are subsequently collected. Accounts receivable balances are written off after all collection efforts have been exhausted. Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Estimated residual value Buildings 35~50 years 5-10 % Electronic and office equipment 5 years 5-10 % Motor vehicles 5 years 5-10 % Leasehold improvement and building improvement Shorter of lease term or 5 years — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations. 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, net 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, 2018 and 2019, 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 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, 2017, 2018 and 2019. 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 equity securities without readily determinable fair value, equity method investments, and available-for-sale (a) Equity securities without readily determinable fair values On October 1, 2018, the Group adopted Accounting Standards Update (“ASU”) No. 2016-01 2018-03 825-10): With the adoption of ASU 2016-01, The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASU No. 2011-4: of es (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 US$679, US$343, and US$6,374 impairment loss on its equity method investments during the years ended September 30, 2017, 2018 and 2019. (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, US$2,492, and nil impairment loss on its available-for-sale Revenue recognition On October 1, 2018, the Group adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of October 1, 2018. Results for the year ended September 30, 2019 are presented under Topic 606, while revenues for the years ended September 30, 2017 and 2018 are not adjusted and continue to be reported under ASC Topic 605, Revenue Recognition (“Topic 605”). Revenues is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group generates substantially all of its revenues in the PRC. The following table presents the Group’s revenues disaggregated by revenue sources. revenues are reported net of VAT and surcharges . Disaggregation of net revenues Over-time A point-in-time Total US$ US$ US$ Online education services 144,221 1,696 145,917 Books and reference materials — 27,372 27,372 Other professional education services 14,079 8,679 22,758 Professional education services 158,300 37,747 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 158,300 53,552 211,822 Refundable Non-refundable Total US$ US$ US$ Online education services 22,465 123,452 145,917 Books and reference materials — 27,372 27,372 Other professional education services — 22,758 22,758 Professional education services 22,465 173,582 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 22,465 189,357 211,822 The total of other professional education services, sales of learning simulation software, and business start-up The Group capitalizes sales commission paid to sales personnel and student recruitment agencies as cost of obtaining a contract when those cost are incremental to obtaining a contract and if the Group expects to recover those costs. Contract costs are amortized in the same manner as the revenue recognized. As of September 30, 2019, the balance of capitalized cost of obtaining contracts with customers amounted to which was recorded in Prepayment and Other Current Assets and Other Non-Current 6,166 in selling expenses in its consolidated statement of operations. The Group did no The Group’s contract liabilities mainly consist of prepayments from students (deferred revenue), with a balance of US$ 80,560 62,363 127,766 : US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 Refund liability mainly related to the estimated refunds that are expected to be paid to eligible students and recorded as Refundable fees on the consolidated balance sheet. Refund liability estimates are based on historical refund ratio (i.e. passage rate) on a portfolio basis using the expected value method. As of October 1, 2018 and September 30, 2019, refund liability amounted to US$2,020 and US$2,875, respectively. The following table presents the impact of the adoption of Topic 606 on the consolidated balance sheet and statement of operations as of and for the year ended September 30, 2019: As of and for the year ended September 30, 2019 Balances without adoption of Effect change As reported Topic 606 higher/(lower) US$ US$ US$ Net revenues 211,822 195,531 16,291 Selling expenses – commission fee (10,752 ) (16,178 ) (5,426 ) Prepayment and other current asset 4,974 — 4,974 Other non-current 3,251 — 3,251 Deferred revenue – current portion 94,202 92,896 1,306 Deferred revenue – non-current 33,564 27,570 5,994 Refundable fees – current portion 435 3,673 (3,238 ) Refundable fees – non-current 2,440 23,245 (20,805 ) Retained earnings at beginning 39,414 29,717 9,697 The primary sources of the Group’s revenues and recognition policies are as follows: Online education services The online education services 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 highly interdependent and interrelated in the context of the contract with the online education services. Therefore, the Group has determined that the online education services represent a single performance obligation. 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 non-refundable pre-agreed pre-agreed The online courses using the refundable course model are mainly comprised of uninsured elite classes whereas the Group is obligated to refund the tuition fee or provide the students with a right to retake the course if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement. 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 month in which the customers enroll in the courses to the month in which the subscribed courses terminate. Based on the history of usage of prepaid study cards, the Group concluded that any breakage related to prepaid study cards that are not activated or that have not been used to enroll in courses is insignificant. 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. Under ASC 605, the Group deferred the portion of revenue of the prepaid study card based on the maximum potential amount of discount provided to the distributors. Revenue was recognized during the remaining period the online course was available to the user who enrolls using the study card or was recognized immediately if the related online course has been completed or the study card expired. Upon the adoption of Topic 606, volume discounts are considered a form of variable consideration. Accordingly, volume discounts are estimated and recognized based on historical experience and adjusted based on actual purchase volumes at each reset period. 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. Each contract of these services is accounted for as single performance obligation which is satisfied ratably over the service period. Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period based on the terms of the agreements. The online education services provided by Beijing Champion and its subsidiaries are subject to approximately 6% value added tax and related surcharges . Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are recorded when control of the promised goods is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. 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, and the customers can also get certain number of electronic books for free. The Group has determined that books and online course services represent two separate performance obligations. The Group allocates the proceeds to each performance obligation based on their relative selling price. The relative selling price are based on observable price sold on a standalone basis if available. If not, the Group estimates the relative selling price based on internal pricing models. Other revenues Other revenues include sales of learning simulation software, sales of offline professional training, and others. Revenues from sales of learning simulation software, which are self-developed learning simulation packaged software, are recognized when the control of the software is transferred to the customers in an amount of consideration to which the Company expects to be entitled to in exchange for the software. 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 proportionately when the training courses are delivered. Each contract of these services is accounted for as a single performance obligation which is satisfied ratably over the service period. For offline training sponsored by government authorities related to business start-up Revenues from other services, including accounting and consulting services, courseware production services, and platform production services, are recognized when the services are delivered. 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. Since April 2019, in accordance with Cai Shui [2019] No.39, the VAT rate decreased to 13% of the gross sales for general VAT payer. Therefore, for general VAT payer, VAT on sales is calculated at 13% on revenue from product sales and paid after deducting input VAT on purchases since April 1, 2019. The revenue earned from the sales of software of the Group is subject to 13% 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 tangible goods sold, including direct materials used for production of books and reference materials, authorship fee and printing cost, are initially deferred and recorded as “deferred costs”. The deferred costs are recognized as cost of sales when the related revenues are recognized upon cash receipt. Operating leases Leases where substantially all the rewards and risk of as s Advertising expenditure Advertising expenditure is expensed when incurred and is included in “selling expenses” in the consolidated statements of operations. Advertising expenses were US$17,833, US$14,785 and US$23,668 for the years ended September 30, 2017, 2018 and 2019, 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$1,134, US$1,852 and US$3,154 for the years ended September 30, 2017, 2018 and 2019, 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 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 investments and foreign currency translation adjustments, and is reported in the consolidated statements of comprehensive income. Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of US$28,021 and US$65,673, which were denominated in RMB, as of as of Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable and prepayment and other current assets. As of September 30, 2019, substantially all of the Group’s c a There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended September 30, 2019. Newly adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, 2014-09 2016-10, 2016-10 2014-09: 2016-10 2014-09. On October 1, 2018, the Group adopted Revenue from Contracts with Customers (Topic 606), applying the modified retrospective method to all contracts that the performance of which were not completed as of October 1, 2018. Results for reporting periods beginning October 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. The Group assessed variable consideration related to certain types of its online education services over the expected service period, as well as incremental commission fees of obtaining a contract which were capitalized and amortized over the expected service period. The cumulative effect of initially applying the new standard of US$ was recorded a |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Sep. 30, 2019 | |
BUSINESS ACQUISITIONS | 3. BUSINESS ACQUISITIONS Business acquisitions in fiscal year 2018: 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 following summarized the unaudited pro forma result of operations for the year s Years ended September 30, 2017 2018 US$ US$ Pro forma net revenues 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 before the adoption of ASU 2016-01 in-substance pre-agreed On July 10, 2018, the Group exercised a portion of its call option to purchase an as of 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 c 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 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, 2017 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 s 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 On April 26, 2019, Beijing Ruida completed the audit of its consolidated financial statements for the year ended December 31, 2018. As a result, the contingent consideration payable to Beijing Ruida was adjusted from RMB 12.0 1,746 7.2 1,048 On May 15, 2019, the Group exercised the remaining portion of its call option and acquired the additional 9 38.3 5,580 49 40 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2019 | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS Short-term investments consist of both held-to-maturity and available-for-sale investments. Fixed-income financial products purchased from banks in China are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturity of the financial product is 34 3.15 for the product the Group hold s held-to-maturity available-for-sale While these fixed-income financial products are not publicly traded, the Group esti m Short-term investments consisted of the following: As of September 30, 2018 2019 US$ US$ Held-to-maturity 2,634 1,517 Available-for-sale 14,439 20,601 17,073 22,118 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2019 | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net , As of September 30, 2018 2019 US$ US$ Accounts receivable 8,622 8,612 Less: allowance for doubtful accounts (1,342 ) (1,282 ) Accounts receivable, net 7,280 7,330 Movement of allowance for doubtful accounts w a As of September 30, 2018 2019 US$ US$ Balance at beginning of the year 1,191 1,342 Increase (reversal) of the allowance for doubtful accounts 199 (8 ) Foreign currency adjustment (48 ) (52 ) Balance at end of the year 1,342 1,282 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2019 | |
INVENTORIES | 6. INVENTORIES Inventories consisted of the following: As of September 30, 2018 2019 US$ US$ Books and other goods 2,010 3,727 Paper and other raw materials 900 1,035 Less: inventory provisions for slow-moving and obsolescence (128 ) (530 ) Total 2,782 4,232 Inventories provision were US$261, US$15 and US$1,090 for the years ended September 30, 2017, 2018 and 2019, respectively. |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2019 | |
PREPAYMENT AND OTHER CURRENT ASSETS | 7. PREPAYMENT AND OTHER CURRENT ASSETS Prepayment and other current assets consisted of the following: As of September 30, Notes 2018 2019 US$ US$ Prepaid expenses 6,812 8,974 Capitalized commission fees (1 ) — 4,974 Advance to suppliers (2 ) 4,468 3,938 Funds receivable (3 ) 1,750 2,364 Staff advances (4 ) 1,073 1,591 Receivable from disposal of a subsidiary (5 ) — 1,540 Rental and other deposits 593 1,045 Interest receivabl e 1,380 133 Others 978 2,173 Prepayment and other current assets, ne t 17,054 26,732 (1) Capitalized commission fees primarily consist of the incremental sal e e as described in Note 2 . (2) 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 (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. (4) Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. (5) Receivable from disposal of a subsidiary refers to the remaining consideration receivable due from the buyers of Beijing Champion Tax Management and Advisory Co., Ltd. (“Champion Tax Advisory”), a previously consolidated subsidiary of the Group. The balance was received on January 8, 2020. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following: As of September 30, 2018 2019 US$ US$ Buildings 9,111 8,756 Electronic and office equipment 17,687 20,069 Leasehold improvement and building improvement 2,291 2,086 Motor vehicles 2,099 10,843 Total 31,188 41,754 Less: Accumulated depreciation (15,215 ) (17,454 ) Construction in progress 11,999 13,635 27,972 37,935 Depreciation expenses were US$2,792, US$3,069 and US$3,958 for the years ended September 30, 2017, 2018 and 2019, respectively. |
GOODWILL, NET
GOODWILL, NET | 12 Months Ended |
Sep. 30, 2019 | |
GOODWILL, NET | 9. GOODWILL, NET Goodwill, net, consisted of the following: Years ended September 30 2018 2019 Professional Business start-up Sale s Total Professional Business start-up Sale s Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 Acquisition for the year 52,478 — — 52,478 — — — — Exchange difference (1,672 ) (50 ) (699 ) (2,421 ) (2,198 ) (125 ) (847 ) (3,170 ) Ending balance 56,214 1,642 21,660 79,516 54,016 1,517 20,813 76,346 Accumulated impairment loss — — — — — (1,517 ) — (1,517 ) Goodwill, net 56,214 1,642 21,660 79,516 54,016 — 20,813 74,829 Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that it might be impaired. 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. The Group did no Business start-up start-up start-up two-step as impairment loss on goodwill related to the business start-up Sales 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. The Group did no |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2019 | |
OTHER INTANGIBLE ASSETS, NET | 10. OTHER INTANGIBLE ASSETS, NET The balance of other intangible assets, net, consisted of the following: As of September 30, 2018 2019 US$ US$ Computer software 5,512 5,858 Trademarks and domain names 5,624 5,429 Courseware 4,788 4,601 Business contracts 24,891 23,917 Copyrights 10,087 9,692 Others 907 871 Total intangible assets 51,809 50,368 Less: Accumulated amortization Computer software (4,037 ) (4,316 ) Trademarks and domain names (1,815 ) (2,727 ) Courseware (711 ) (1,857 ) Business contracts (1,461 ) (5,667 ) Copyrights (4,023 ) (5,346 ) Others (262 ) (342 ) Accumulated amortization (12,309 ) (20,255 ) Intangible assets, net 39,500 30,113 Amortization expenses were US$1,998, US$3,230 The estimated amortization expenses for the intangible assets for each of the following fiscal years are as follows: Amortization US$ 2020 8,289 2021 8,051 2022 6,469 2023 5,589 2024 1,308 2025 and thereafter 407 30,113 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2019 | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of September 30, 2018 2019 US$ US$ Equity securities without readily determinable fair value: Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing 11,655 11,199 Beijing Yousian Technology Co., Ltd. (“Beijing Yousian”) (b) 3,276 — Other equity securities without readily determinable fair value 1,997 762 Equity method investments: Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (c) 6,819 — Beijing Champion Yuanjian Education Technology Co., Ltd. (“Yuanjian”) (d) — 2,488 Other equity method investments (e) 3,115 2,590 Available-for-sale Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (f) 3,494 4,617 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (g) 2,326 2,434 Other available-for-sale 1,155 1,289 Total 33,837 25,379 (a) 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$11,119). The investment was classified as a cost method investment before the adoption of ASU 2016-01 in-substance ASU 2016-01, (b) 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 before the adoption of ASU 2016-01 in-substance In June 2019, the Group exercised its call option and redeemed all of the equity interest of Beijing Yousian. (c) 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 before adoption of ASU 2016-01, 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 During the year ended September 30, 2019, the Group determined that Hangzhou Wanting Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient future net cash flow. As a result, the Group fully impaired the investment and US$6,374 was recorded in impairment loss from long-term investments during the year ended September 30, 2019. (d) On December 29, 2018, the Group entered into a Share Transfer Agreement with Beijing Zhengbao TongChuang Technology Co., Ltd (“TongChuang”) and Beijing Zhengbao TongCheng Co., Ltd (“TongCheng”), to transfer 60% equity interest of Champion Tax Advisory to its key employees, for a total consideration of RMB35.9 million (US$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. The Group shared loss of US$658 from Yuanjian during the year ended September 30, 2019. (e) The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2018 and 2019. During the years ended September 30, 2017, 2018 and 2019, the Group recorded share of net loss (income) amounting US$153, US$(61) and US$47, respectively. (f) 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 (g) 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 (h) Other investments represent several insignificant investments classified as available-for-sale |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2019 | |
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, 2018 and 2019, available-for-sale Available-for-sale contingent consideration payable related to the acquisition of Beijing Ruida was measured and recorded at fair value on a recurring basis included under “Accrued expenses and other liabilities”, and was subsequently settled during the year ended September 30, 2019. Refer to Note 3 for further details. The Group’s financial assets and liability measured at fair value on a recurring basis are as follows: Year ended September 30, 2019 Fair value 2019 Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 67,977 67,977 — — Short-term investments: Available-for-sale 20,601 — 20,601 — Long-term investments: Available-for-sale 8,340 — 1,289 7,051 Total assets measured at fair value 96,918 67,977 21,890 7,051 Year ended September 30, 2018 Fair value Quoted prices in Significant Significant (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 (Note 3) 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 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 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. As of September 30, 2018, the available-for-sale were : (1) expected volatility of 48.8 55 30.0 38.0 3.8 5.3 : The Group did not have any transfers between level 1 and level 2 fair value measurements during the periods presented. The Group transferred one redeemable preferred share investment from level 2 to level 3 as of o as of 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, 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 Transfer from level 2 fair value measurement 2,327 Transfer to level 2 fair value measurement (1,154 ) Unrealized gain 1,459 Exchange loss (229 ) Balance as of September 30, 2019 7,051 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, 2018, based on the following assumptions: (1) expected volatility of 5%, (2) 14.9%, and (3) expected life of 0.48 of a year. The contingent consideration payable was subsequently settled in May 2019. 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 no any es 7 The Group recognized nil, nil and US$1,517 impairment loss related to goodwill for the years ended September 30, 2017, 2018 and 2019, respectively . The Group measures equity securities without readily determinable fair value and equity method investments at fair value on a non-recurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. The group recorded US$546 impairment loss on its equity securities without readily determinable fair value during the year ended September 30, 2019. The Group recorded and impairment loss on its equity method investments during the years ended September 30, 2017, 2018 and 2019 , respectively. Refer to Note 11 . |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2019 | |
OTHER NON-CURRENT ASSETS | 13. OTHER NON-CURRENT Other non-current As of September 30, Notes 2018 2019 US$ US$ Long-term prepaid expenses (1 ) 3,823 3,864 Rental deposits (2 ) 923 1,017 Deposit of sole distributor agreement (3 ) 655 — Long-term capitalized commission fees (4 ) — 3,251 Long-term receivables — 1,540 Others 986 420 6,387 10,092 (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 The (4) Long-term capitalized commission fees primarily consist of the long-term incremental sales commission relating to obtaining the customers contract as described in Note 2 . |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Sep. 30, 2019 | |
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 2018 2019 US$ US$ Tuition fee payable to government agencies (1 ) 13,122 12,971 Salary and welfare payable 8,389 8,317 Accrued expenses 9,351 8,691 Remuneration payable to lecturers 3,520 2,701 Uncertain income tax liabilities (Note 19) 158 152 Contingent consideration payable (2 ) 1,746 — Other payable 5,855 5,435 42,141 38,267 (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, 2019 | |
BANK BORROWINGS | 15. BANK BORROWINGS On June 22, 2015, the Company entered into a 3-year BEA • On June 22, 2018, the loan originally drawn down in 2017 was subsequently renewed in an amount of US$15,081 and extended to June 26, 2019 on June 25, 2019 • On June 27, 2019, the loan was terminated and replaced by a new loan agreement, for an amount of RMB115.2 million under the BEA Facility, with a maturity date of March 31, 2020 , O On November 17, 2017, the Company entered into a one-year • 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$15,100 of the loan was subsequently renewed and extended to June 19, 2019 with a 3.49% annual interest rate, subject to adjustment each quarter. On May 17, 2019, the loan was subsequently renewed and extended to November 30, 2019 January 14, 2020 The balance of the loan of US$ 1,100 was r epaid on December 13, 2019. • 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$15,301) provided by Champion Technology. On December 20, 2018, the loan was subsequently renewed and extended to June 19, 2019 with an interest rate of 3.99%, subject to adjustment each quarter. On May 17, 2019, the loan was subsequently renewed and extended to December 19, 2019 January 14, 2020 The balance of the loan amounting to US$ 6,900 8,300 On July 19, 2017, Zhengbao Yucai entered into a three-year loan agreement with RMB132.6 million (US$19,307) with Baoshang Bank Co., Ltd Beijing Branch (“BSB”). 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 for the year s • 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. On May 24, 2019, Zhengbao Yucai elected to early repay an amount of RMB35.0 million (US$5,073). As of September 30, 2019, the loan balance amounting to RMB50.6 million (US$7,072) is due The fair value of the bank borrowings with BEA, BSB and Hang Seng Bank was US$50,547 and US$38,502 as of September 30, 2018 and 2019, respectively. The fair value of the long-term bank borrowing with BSB was US$12,464 and nil as of September 30, 2018 and 2019, 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 TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2019 | |
RELATED-PARTY TRANSACTIONS | 16. RELATED-PARTY TRANSACTION S The Group had the following balances and transactions with related parties: The amounts due from related parties represent prepayments to certain investees for service fees related to student recruitment. The commission service fees related to student recruitment incurred for the year ended September 30, 2019 amounted to US$2,013 . The amount due to a related party represent accrued service fees to a n US$7,499. |
DECONSOLIDATION OF A SUBSIDIARY
DECONSOLIDATION OF A SUBSIDIARY | 12 Months Ended |
Sep. 30, 2019 | |
DECONSOLIDATION OF A SUBSIDIARY | 17. DECONSOLIDATION OF A SUBSIDIARY On December 29, 2018, the Group entered into a Share Transfer Agreement with Beijing Zhengbao TongChuang Technology Co., Ltd (“TongChuang”) and Beijing Zhengbao TongCheng Co., Ltd (“TongCheng”), to transfer 60% equity interest of Champion Tax Advisory to certain of its former employees, who ceased to be employees of the Group after the completion of the deconsolidation, for a total consideration of RMB35.9 million (US$ 5,020 The Group has determined with the assistance of a valuer that the consideration is representative of the fair value of Champion Tax Advisory. In accordance with the Agreement, the total consideration shall be paid in three installments over two years from the date the agreement was entered into. The Group received the first two installments on December 29, 2018 and January 8, 2020, respectively. The remaining installment is due in December 2020 and is recorded as other non-current asset as of September 30, 2019. On December 27, 2018, the transfer in equity interest of Champion Tax Advisory was completed and the effective control of Champion Tax Advisory was transferred. Therefore, Champion Tax Advisory was deconsolidated from the Group, and the Group recognized a gain amounting to RMB 47.5 6,869 14.3 2,081 was contributed from the remeasurement gain related to the retained 40% equity interests. In addition, as the Group maintains significant influence over the deconsolidated subsidiary, the remaining 40% equity interests retained by the Group has been accounted for by using equity method, and Champion Tax Advisory is considered as a related party to the Company after the deconsolidation. The remaining 40% equity interest was measured at its fair value using discounted cash flow method with the following assumptions: (1) discount rate of 18.96 3 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Sep. 30, 2019 | |
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, 2019 | |
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 Zhongxi Healthcare Education, Champion Healthcare Education, Caikaowang, Beijing Training School, Nanjing Training School, Chuang Qingchun, Xidong Information Technology, Guangdong Yucai, Huzheng Education, Caishuibang, Xiamen Zhongxi Education, Tianjin JinMaLan, Anqing JinMaLan, Jiangsu Healthcare, Jiangsu E&C, Jiangsu Self-taught, Nanchang Training School, Haimen Training School (collectively “small and micro businesses”) are small and micro business having annual taxable income of 1 million or less. The statutory tax rate of them is for the calendar year 2019. However, according to Guoshui[2019]13 No.2, a small and micro business having annual taxable income of RMB1.0 million (US$140) or less, shall be included in the taxable income, and the enterprise income tax shall be paid at the rate of Under the EIT Law and its implementation rules, a withholding tax at 10%, unless reduced by a tax treaty or arrangement, is applied on dividends received by non-PRC-resident PRC-resident China-HK In general, the PRC tax authorities have up to five years to conduct examinations of the PRC entities’ tax filings. Accordingly, the PRC entities’ calendar calendar year. Income before income taxes consisted of: Years ended September 30, 2017 2018 2019 US$ US$ US$ Non - PRC (4,204 ) (656 ) (3,332 ) PRC 25,245 15,438 29,131 21,041 14,782 25,799 The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: Years ended September 30, 2017 2018 2019 US$ US$ US$ Current tax expense 5,344 5,717 7,060 Deferred tax (benefit) expense (724 ) (3,410 ) 1,061 4,620 2,307 8,121 The reconciliation of the effective tax rate and the statutory income tax rate applicable to PRC operations is as follows: Years ended September 30, 2017 2018 2019 US$ US$ US$ Income before taxes 21,041 14,782 25,799 Income tax expense computed at applicable tax rates of 25 5,260 3,696 6,450 Effect of different tax rates in different jurisdictions 988 770 704 Non-deductible 933 152 1,059 Effect of tax holidays (2,812 ) (2,610 ) (1,934 ) Effect of valuation allowances 116 285 1,232 Withholding tax on undistributed earnings 572 313 689 Income tax reversal (437 ) (299 ) (79 ) 4,620 2,307 8,121 Effective income tax rate 21.96 % 15.61 % 31.48 % The aggregate amount and per share effect of the tax holidays are as follows: Years ended September 30, 2017 2018 2019 US$ US$ US$ The aggregate amount of tax holidays 2,812 2,610 1,934 The aggregate effect on basic and diluted net income per share: - Basic 0.02 0.02 0.01 - Diluted 0.02 0.02 0.01 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, 2018 2019 US$ US$ Deferred tax assets Accrued expenses 1,217 984 Allowance for doubtful accounts 598 1,031 Impairment loss from long-term investments 867 1,178 Change in fair value of contingent consideration payable 435 — Property, plant and equipment 111 103 Net operating loss carry-forwards 3,364 2,811 Total deferred tax assets 6,592 6,107 Less: valuation allowance (881 ) (2,242 ) Deferred tax assets, net 5,711 3,865 Deferred tax liabilities Intangible assets 9,236 7,085 Withholding tax on undistributed earnings 3,011 3,556 Unrealized gain on available-for-sale 446 647 Capitalized c — 1,407 Total deferred tax liabilities 12,693 12,695 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$158 and US$152 as of September 30, 2017, 2018 and 2019, respectively. The subsequent changes of the unrecognized tax benefit were due to foreign currency adjustment. Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized US$ Balance as of September 30, 2017 163 Foreign currency adjustment (5 ) Balance as of September 30, 2018 158 Foreign currency adjustment (6 ) Balance as of September 30, 2019 152 The Group does not anticipate any significant change in unrecognized tax benefits within 12 months from September 30, 2019. 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, 2019 | |
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$8,591, US$12,297 and US$12,773 for the years ended September 30, 2017, 2018 and 2019, respectively. Obligations for contributions to defined contribution retirement plans for full-time employee in Hong Kong, including contributions payable under the Hong Kong Mandatory Provident Fund Schemes Ordinance, are recognized as expenses in the consolidated statements of operations as incurred, which the amounts have been immaterial for the years ended September 30, 2017, 2018 and 2019 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES Operating lease commitments Future minimum payments under non-cancelable one-year as of US$ Years ending September 30, 2020 9,225 2021 5,169 2022 3,775 2023 3,701 2024 3,805 T 21,195 46,870 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, 2017, 2018 and 2019, total rental expenses for all operating leases amounted to US$6,607, US$10,608 and US$11,289, 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 term loan facility. In addition, the Term Loan Facility with BEA was further extended to April 1, 2020 115.2 16,117 secured by term deposits of RMB274.17 million (US$38,358) provided by Champion Technology, which was recorded as “restricted cash” on the consolidated balance sheet as of September 30, 201 9 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Sep. 30, 2019 | |
NONCONTROLLING INTERESTS | 22. NONCONTROLLING INTERESTS Noncontrolling interests represent the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The accompanying consolidated financial statements include all assets, liabilities, revenues and expenses at their consolidated amounts, which include the amounts attributable to the Company and the noncontrolling interest. The Company recognizes as a separate component of equity and earnings on the portion of income or loss attributable to noncontrolling interests based on the portion of the entity not owned by the Company. The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2017, 2018 and 2019. Zhengbao Y NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ 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 Capital contribution from noncontrolling interest shareholders 29 — — — 29 Purchase of equity interests from noncontrolling interest shareholders — — — (7,119 ) (7,119 ) Foreign currency translation adjustment attributed to noncontrolling interest shareholders (463 ) (372 ) (39 ) (1,261 ) (2,135 ) Cash dividends paid to noncontrolling interests by a subsidiary — (291 ) — — (291 ) (Loss) gain attributed to noncontrolling interest shareholders (6,173 ) 1,808 (55 ) (640 ) (5,060 ) Balance as of September 30, 2019 8,712 9,864 965 31,374 50,915 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 In March 2017, Zhengbao Yucai completed its issuance of and a total cash consideration of paid-in acting-in-concert d 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, for a cash consideration of RMB39.6 million (US$5,931), subject to price adjustment under certain pre-agreed Refer to Note 3. On May 15, 2019, the Group decided to exercise the remaining portion of the call option, to acquire the additional 9% equity interest of Beijing Ruida according to the agreement, for a total consideration of RMB38.3 million (US$ 5,580 The total consideration was paid on May 26, 2019. The Group completed the transaction on August 1, 2019, which was accounted for as an equity transaction. Together with the 51% equity interest acquired previously, the Group holds a total of 60% equity interest of Beijing Ruida. The schedule below discloses the effect of changes in the ownership interest on the Company’s equity: Years ended September 30, 2017 2018 2019 US$ US$ US$ Net income attributable to China Distance Education Holdings Limited 14,935 11,626 21,254 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in 1,090 — — Increase in the Group’s additional paid-in — 29 — Increase in the Group’s additional paid-in — — 810 Changes from net income attributable to China Distance Education Holdings Limited’s shareholders and transfer from noncontrolling interests 16,025 11,655 22,064 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2019 | |
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 s 8 9 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 s Year s 2017 2018 2019 US$ US$ US$ Net revenues 130,988 166,668 211,822 Professional education services 114,190 150,484 196,047 Business start-up 5,276 4,608 2,796 Sale s 11,522 11,576 12,979 Operating costs and expenses: Cost of sales (57,412 ) (87,883 ) (104,741 ) Professional education services (50,168 ) (79,168 ) (96,044 ) Business start-up (2,069 ) (2,644 ) (1,777 ) Sale s (5,175 ) (6,071 ) (6,920 ) Selling and marketing (34,910 ) (44,717 ) (61,460 ) Professional education services (30,696 ) (39,698 ) (56,334 ) Business start-up (869 ) (1,127 ) (1,226 ) Sale s (3,345 ) (3,892 ) (3,900 ) General and administrative (15,955 ) (16,760 ) (20,064 ) Professional education services (12,890 ) (14,548 ) (16,745 ) Business start-up (1,034 ) (896 ) (1,930 ) Sale s (2,031 ) (1,316 ) (1,389 ) Impairment of goodwill — — (1,517 ) Business start-up training services — — (1,517 ) Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Total operating costs and expenses (111,790 ) (153,853 ) (192,637 ) Professional education services (93,754 ) (133,414 ) (169,123 ) Business start-up (3,972 ) (4,667 ) (6,450 ) Sale s (10,551 ) (11,279 ) (12,209 ) Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Other operating income 1,912 3,051 2,968 Professional education services 184 643 1,053 Business start-up 91 76 102 Sale s 1,637 2,332 1,813 Operating income (loss) 21,110 15,950 22,848 Professional education services 20,620 17,797 28,672 Business start-up 1,395 17 (3,552 ) Sale s 2,608 2,629 2,583 Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Segment assets 224,551 328,925 355,350 Professional education services 133,836 236,496 273,005 Business start-up 45,569 46,205 36,735 Sale s 45,146 46,224 45,610 Total assets 224,551 328,925 355,350 Amortization and depreciation 4,790 6,299 12,723 Professional education services 3,001 4,479 10,939 Business start-up 36 36 69 Sale s 1,753 1,784 1,715 (Loss) gain from equity method investments (153 ) (172 ) (1,484 ) Professional education services (153 ) 58 (1,173 ) Business start-up — (230 ) (311 ) Sale s — — — |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Sep. 30, 2019 | |
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, 2017 2018 2019 US$ US$ US$ Numerator: Net income 14,935 11,626 21,254 - allocated to ordinary share - basic 14,891 11,583 21,117 - allocated to nonvested share - basic 44 43 137 Denominator: Weighted average number of ordinary shares outstanding 131,432,211 132,363,620 133,060,900 Weighted average number of nonvested share 400,644 487,685 862,436 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 1,370,400 265,850 214,781 Weighted average ordinary shares outstanding used in computing diluted net income per share 133,203,255 133,117,155 134,138,117 Basic net income per share 0.11 0.09 0.16 Basic net income per nonvested share 0.11 0.09 0.16 Diluted net income per share 0.11 0.09 0.16 Diluted net income per nonvested share 0.11 0.09 0.16 |
SHARE INCENTIVE PLAN
SHARE INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2019 | |
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 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$1.81 per share, which was determined by the closing price of New York Stock Exchange (“NYSE”) on the approval day. The Group used binomial option pricing model to measure the fair value of the incremental compensation cost, which is the excess of the fair-value-based measure of the modified award on the date of modification over the fair value of the original award immediately before the modification. The incremental fair value was recorded as compensation cost on the date of modification for vested awards and over the remaining service vesting period for unvested awards. A summary of option activity of the share option granted to employees and non-executive directors as of September 30, 2017, 2018 and 2019, and changes during the years ended September 30, 2017, 2018 and 2019 are presented below: Share option granted to Number of Weighted- Weighted- Aggregated employees and non-executive shares exercise price term (years) intrinsic value Outstanding, September 30, 2016 2,083,600 US$ 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 Exercised — — Forfeited (19,000 ) US$ 1.81 5.14 — Outstanding, September 30, 2019 1,040,100 US$ 1.39 4.57 — Expected to vest, September 30, 2019 — — Exercisable as of 1,040,100 US$ 1.39 4.57 — 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, 2016 57,000 — 1.55 184 Exercised — — Outstanding, September 30, 2017 57,000 — 0.55 96 Exercised (57,000 ) — Outstanding, September 30, 2018 and — — — — Exercisable as of 2018 and — — — — The Company declared a cash dividend of US$0.1125, US$0.1125 and nil by US$0.1125 during the year ended September 30, 2017 following the approval of the Company’s board of directors. The total intrinsic value of options exercised during the years ended September 30, 2017, 2018 and 2019 were nil, US$749 and nil, respectively. The Company recorded share-based compensation expenses related to share options of US$1,216, US$1,231 and US$143 for the years ended September 30, 2017, 2018 and 2019, respectively. As of September 30, 2019, there was no unrecognized share-based compensation cost related to share options. Nonvested shares On December 3, 2018, the Company granted 150,000 non-vested shares to non-executive directors, which will be vested on the first anniversary of the issuance date. The grant-date value of a nonvested share was US$1.92 , which was the closing price of the Company’s ADSs on NYSE on December 3, 2018. This grant resulted in a total share-based compensation of US$287 , which to be recognized ratably over the requisite service period of one year. On December 28, 2018, the Company granted 353,200 nonvested shares to executive directors, officers and employees under the New Plan. These nonvested shares are subject to a two vesting period with four substantially equal semi-annual installments. The grant-date value of the nonvested share was US$1.76, which was the closing price of the Company’s ADSs on NYSE on December 28, 2018. This grant resulted in a total share-based compensation of US$627, which is to be recognized ratably over the requisite service period of two years. On January 1 and January 12, 2019, the Company granted 160,000 and 291,968 nonvested shares to the co-chief financial officers. These nonvested shares are subject to a one-year vesting period with two semi-annual installments. The grant-date value of the nonvested share was US$1.68 and US$1.71, which was the closing price of the Company’s ADSs on NYSE on January 1 and January 12, 2019, respectively. This grant resulted in a total share-based compensation of US$768, which is to be recognized ratably over the requisite service period of one year. These nonvested shares granted are restricted on transferability and will be forfeited if the directors cease to provide requisite service to the Company. 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 Company recorded share-based compensation expenses related to nonvested shares of US$895, US$1,075 and US$1,862 for the years ended September 30, 2017, 2018 and 2019, respectively. As of September 30, 2019, there was US$750 of share-based compensation related to nonvested shares that is expected to be recognized over a weighted average period of 0.8 year. A summary of the nonvested shares activities for the years ended September 30, 2017, 2018 and 2019 is as follows: Number of Weight average Aggregated US$ Nonvested shares outstanding as of 463,983 3.72 1,498 Granted 125,000 3.03 Vested (260,593 ) 3.75 Nonvested shares outstanding as of 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested shares outstanding as of 450,497 2.49 933 Granted 955,168 1.76 Forfeited (19,944 ) 2.13 Vested (678,881 ) 2.16 Nonvested shares outstanding as of 706,840 1.84 965 Nonvested shares expected to vest as of 706,840 1.84 965 Share-based compensation expense s Total share-based compensation expense of share-based awards granted to employees, non-employees non-executive As of September 30, 2017 2018 2019 US$ US$ US$ Cost of sales 164 161 23 General and administrative expenses 1,862 2,065 1,972 Selling expenses 85 80 10 2,111 2,306 2,005 |
CASH DIVIDEND
CASH DIVIDEND | 12 Months Ended |
Sep. 30, 2019 | |
CASH DIVIDEND | 26. CASH DIVIDEND 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, 2019 | |
SUBSEQUENT EVENTS | 27. SUBSEQUENT EVENTS (1) In December 2019, the Company granted 541,132 nonvested shares to executive directors, officers and employees. These nonvested shares are subject to one The Company is in the process of assessing the accounting impact of this transaction. (2) In January 2020, the Company granted 393,556 nonvested shares to the Co-CFOs. one-year (3) In January 2020, the Group entered into an investment agreement with a professional training services provider, to acquire 20% of its equity interest for a consideration of RMB10.0 million (US$1,399). The Group is in the process of assessing the accounting impact of this transaction. |
Financial Statement Schedule I
Financial Statement Schedule I | 12 Months Ended |
Sep. 30, 2019 | |
Financial Statement Schedule I | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS ( I As of September 30, 2018 2019 US$ US$ ASSETS Current assets Cash and cash equivalents 2,223 1,383 Prepayment and other current assets 271 381 Amounts due from subsidiaries 8,669 8,474 Total current assets 11,163 10,238 Non-current Long-term i s 2,733 1,289 Investment in subsidiaries 161,896 192,265 Total non-current 164,629 193,554 Total assets 175,792 203,792 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities 1,144 989 Amounts due to subsidiaries 79,836 98,434 Bank borrowings 50,538 31,538 Total current liabilities 131,518 130,961 Total liabilities 131,518 130,961 Shareholders’ equity Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 133,275,521 and 134,210,745 as of 13 13 Additional paid-in 21,557 24,507 Accumulated other comprehensive loss (7,013 ) (12,357 ) Retained earnings 29,717 60,668 Total equity 44,274 72,831 Total liabilities and equity 175,792 203,792 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Compan y STATEMENTS OF OPERATIONS ( I For the years ended September 30, 2017 2018 2019 US$ US$ US$ Cost of sales (164 ) (161 ) (23 ) Selling expenses (85 ) (80 ) (10 ) General and administrative expenses (3,250 ) (2,887 ) (3,100 ) Operating loss (3,499 ) (3,128 ) (3,133 ) Equity in income of subsidiaries and variable interest entities 19,287 14,763 23,776 Interest income 1 1 21 Interest expense (1,362 ) (2,110 ) (2,261 ) Exchange gain 508 2,100 2,851 Net income 14,935 11,626 21,254 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF COMPREHENSIVE INCOME ( I Years ended September 30, 2017 2018 2019 US$ US$ US$ Net income 14,935 11,626 21,254 Other comprehensive loss Foreign currency translation adjustment (122 ) (6,245 ) (6,719 ) Total comprehensive income 14,813 5,381 14,535 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF CASH FLOWS (In thousands, except share data and per share data) For the years ended September 30, 2017 2018 2019 US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net cash generated from (used in) operating activities 4,383 (9,575 ) 18,025 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of available-for-sale (911 ) — — Net cash used in investing activity (911 ) — — CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share options exercised by employees — 1,489 — Loan to optionees in connection with exercise of options — (1,558 ) — Repayment of loan to optionees in connection with exercise of options 199 193 135 Capital contribution from noncontrolling interests 1,090 29 — New short-term loans drawn down 14,414 20,573 — Loan repayment s (19,000 ) Dividends paid to shareholders (14,839 ) (14,949 ) — Net cash generated from (used in) financing activities 864 5,777 (18,865 ) Net increase (decrease) in cash and cash equivalents and restricted cash 4,336 (3,798 ) (840 ) Cash and cash equivalents and restricted cash at beginning of the year 1,685 6,021 2,223 Cash and cash equivalents and restricted cash at end of the year 6,021 2,223 1,383 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company NOTES TO FINANCIAL STATEMENTS ( I a 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, 2019. 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’s share of equity in income in subsidiaries and the VIEs recognized in years ended September 30, 2017, 2018 and 2019 were US$19,287, US$14,763 and US$ 23,776 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2019 | |
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, VIEs, and VIEs’ subsidiaries, 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, 2018 and 2019 represented cash pledged as security for bank borrowings. Refer to Note 15. |
Short-term investments | Short-term investments Short-term investments consist 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. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs and disposal. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value for obsolete and slow-moving goods. |
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, amounts due from related parties, short-term and long-term investments, bank borrowings, long-term bank borrowing, amount due to a related party and accounts payable. Available-for-sale held-to-maturity |
Allowance for doubtful accounts | Allowance for doubtful accounts An allowance for doubtful accounts is recorded in the period in which a loss is determined to be probable based on an assessment of specific evidence indicating doubtful collection, historical experience, account balance aging and prevailing economic conditions. Allowance is reversed when the underlying balance of doubtful accounts are subsequently collected. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Estimated residual value Buildings 35~50 years 5-10 % Electronic and office equipment 5 years 5-10 % Motor vehicles 5 years 5-10 % Leasehold improvement and building improvement Shorter of lease term or 5 years — Repair and maintenance costs are charged to expense as incurred, whereas the cost of renewals and betterment that extends the useful lives of property, plant and equipment are capitalized as additions to the related assets. Retirements, sales and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in the consolidated statements of operations. 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, net | Goodwill, net 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, 2018 and 2019, 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 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, 2017, 2018 and 2019. 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 equity securities without readily determinable fair value, equity method investments, and available-for-sale (a) Equity securities without readily determinable fair values On October 1, 2018, the Group adopted Accounting Standards Update (“ASU”) No. 2016-01 2018-03 825-10): With the adoption of ASU 2016-01, The Group reviews its equity securities without readily determinable fair value for impairment at each reporting period. If a qualitative assessment indicates that the investment is impaired, the Group estimates the investment’s fair value in accordance with the principles of ASU No. 2011-4: of es (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 US$679, US$343, and US$6,374 impairment loss on its equity method investments during the years ended September 30, 2017, 2018 and 2019. (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, US$2,492, and nil impairment loss on its available-for-sale |
Revenue recognition | Revenue recognition On October 1, 2018, the Group adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of October 1, 2018. Results for the year ended September 30, 2019 are presented under Topic 606, while revenues for the years ended September 30, 2017 and 2018 are not adjusted and continue to be reported under ASC Topic 605, Revenue Recognition (“Topic 605”). Revenues is recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group generates substantially all of its revenues in the PRC. The following table presents the Group’s revenues disaggregated by revenue sources. revenues are reported net of VAT and surcharges . Disaggregation of net revenues Over-time A point-in-time Total US$ US$ US$ Online education services 144,221 1,696 145,917 Books and reference materials — 27,372 27,372 Other professional education services 14,079 8,679 22,758 Professional education services 158,300 37,747 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 158,300 53,552 211,822 Refundable Non-refundable Total US$ US$ US$ Online education services 22,465 123,452 145,917 Books and reference materials — 27,372 27,372 Other professional education services — 22,758 22,758 Professional education services 22,465 173,582 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 22,465 189,357 211,822 The total of other professional education services, sales of learning simulation software, and business start-up The Group capitalizes sales commission paid to sales personnel and student recruitment agencies as cost of obtaining a contract when those cost are incremental to obtaining a contract and if the Group expects to recover those costs. Contract costs are amortized in the same manner as the revenue recognized. As of September 30, 2019, the balance of capitalized cost of obtaining contracts with customers amounted to which was recorded in Prepayment and Other Current Assets and Other Non-Current 6,166 in selling expenses in its consolidated statement of operations. The Group did no The Group’s contract liabilities mainly consist of prepayments from students (deferred revenue), with a balance of US$ 80,560 62,363 127,766 : US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 Refund liability mainly related to the estimated refunds that are expected to be paid to eligible students and recorded as Refundable fees on the consolidated balance sheet. Refund liability estimates are based on historical refund ratio (i.e. passage rate) on a portfolio basis using the expected value method. As of October 1, 2018 and September 30, 2019, refund liability amounted to US$2,020 and US$2,875, respectively. The following table presents the impact of the adoption of Topic 606 on the consolidated balance sheet and statement of operations as of and for the year ended September 30, 2019: As of and for the year ended September 30, 2019 Balances without adoption of Effect change As reported Topic 606 higher/(lower) US$ US$ US$ Net revenues 211,822 195,531 16,291 Selling expenses – commission fee (10,752 ) (16,178 ) (5,426 ) Prepayment and other current asset 4,974 — 4,974 Other non-current 3,251 — 3,251 Deferred revenue – current portion 94,202 92,896 1,306 Deferred revenue – non-current 33,564 27,570 5,994 Refundable fees – current portion 435 3,673 (3,238 ) Refundable fees – non-current 2,440 23,245 (20,805 ) Retained earnings at beginning 39,414 29,717 9,697 The primary sources of the Group’s revenues and recognition policies are as follows: Online education services The online education services 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 highly interdependent and interrelated in the context of the contract with the online education services. Therefore, the Group has determined that the online education services represent a single performance obligation. 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 non-refundable pre-agreed pre-agreed The online courses using the refundable course model are mainly comprised of uninsured elite classes whereas the Group is obligated to refund the tuition fee or provide the students with a right to retake the course if the participants complete the courses and fail the professional exams and their scores are within a range provided for in the agreement. 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 month in which the customers enroll in the courses to the month in which the subscribed courses terminate. Based on the history of usage of prepaid study cards, the Group concluded that any breakage related to prepaid study cards that are not activated or that have not been used to enroll in courses is insignificant. 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. Under ASC 605, the Group deferred the portion of revenue of the prepaid study card based on the maximum potential amount of discount provided to the distributors. Revenue was recognized during the remaining period the online course was available to the user who enrolls using the study card or was recognized immediately if the related online course has been completed or the study card expired. Upon the adoption of Topic 606, volume discounts are considered a form of variable consideration. Accordingly, volume discounts are estimated and recognized based on historical experience and adjusted based on actual purchase volumes at each reset period. 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. Each contract of these services is accounted for as single performance obligation which is satisfied ratably over the service period. Service fees are initially recorded as deferred revenue and are recognized as revenue on a straight-line basis over the subscription period based on the terms of the agreements. The online education services provided by Beijing Champion and its subsidiaries are subject to approximately 6% value added tax and related surcharges . Books and reference materials The Group sells books and reference materials to distributors and end users. Revenues relating to such sales are recorded when control of the promised goods is transferred to the customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods. 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, and the customers can also get certain number of electronic books for free. The Group has determined that books and online course services represent two separate performance obligations. The Group allocates the proceeds to each performance obligation based on their relative selling price. The relative selling price are based on observable price sold on a standalone basis if available. If not, the Group estimates the relative selling price based on internal pricing models. Other revenues Other revenues include sales of learning simulation software, sales of offline professional training, and others. Revenues from sales of learning simulation software, which are self-developed learning simulation packaged software, are recognized when the control of the software is transferred to the customers in an amount of consideration to which the Company expects to be entitled to in exchange for the software. 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 proportionately when the training courses are delivered. Each contract of these services is accounted for as a single performance obligation which is satisfied ratably over the service period. For offline training sponsored by government authorities related to business start-up Revenues from other services, including accounting and consulting services, courseware production services, and platform production services, are recognized when the services are delivered. |
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. Since April 2019, in accordance with Cai Shui [2019] No.39, the VAT rate decreased to 13% of the gross sales for general VAT payer. Therefore, for general VAT payer, VAT on sales is calculated at 13% on revenue from product sales and paid after deducting input VAT on purchases since April 1, 2019. The revenue earned from the sales of software of the Group is subject to 13% 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 tangible goods sold, including direct materials used for production of books and reference materials, authorship fee and printing cost, are initially deferred and recorded as “deferred costs”. The deferred costs are recognized as cost of sales when the related revenues are recognized upon cash receipt. |
Operating leases | Operating leases Leases where substantially all the rewards and risk of as s |
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$17,833, US$14,785 and US$23,668 for the years ended September 30, 2017, 2018 and 2019, 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$1,134, US$1,852 and US$3,154 for the years ended September 30, 2017, 2018 and 2019, 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 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 investments and foreign currency translation adjustments, and is reported in the consolidated statements of comprehensive income. |
Significant risks and uncertainties | Significant risks and uncertainties Foreign currency risk RMB is not a freely convertible currency. The State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China Foreign Exchange Trading System market. The cash and cash equivalents of the Group included aggregate amounts of US$28,021 and US$65,673, which were denominated in RMB, as of as of Concentration of credit risk Financial instrument that potentially expose the Group to significant concentration of credit risk primarily consist of cash and cash equivalents, term deposits, restricted cash, short-term investments, accounts receivable and prepayment and other current assets. As of September 30, 2019, substantially all of the Group’s c a There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended September 30, 2019. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, 2014-09 2016-10, 2016-10 2014-09: 2016-10 2014-09. On October 1, 2018, the Group adopted Revenue from Contracts with Customers (Topic 606), applying the modified retrospective method to all contracts that the performance of which were not completed as of October 1, 2018. Results for reporting periods beginning October 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. The Group assessed variable consideration related to certain types of its online education services over the expected service period, as well as incremental commission fees of obtaining a contract which were capitalized and amortized over the expected service period. The cumulative effect of initially applying the new standard of US$ was recorded as an adjustment to the opening balance of retained earnings upon adoption. In January 2016, the FASB issued a new pronouncement ASU 2016-01 ASU 2016-01 was further amended in February 2018 by ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”. This ASU was issued to clarify certain narrow aspects of guidance concerning the recognition of financial assets and liabilities established in the ASU. This includes an amendment to clarify that an entity measuring an equity security using the measurement alternative may change its measurement approach to a fair valuation method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issued. ASU 2016-01 2018-03 In January 2017, the FASB issued ASU 2017-01: |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, right-of-use 2016-02 ASU 2018-11, 2018-11, 2018-11 The Group has assessed the potential impacts of the new guidance and has determined that this guidance will have an impact on the consolidated financial statements, including significant new disclosures about leasing activities. The most significant impact relates to the Group’s operating leases and the related recognition of right-of-use 2018-11. In June 2016, the FASB issued ASU 2016-13, In April, 2019, ASU 2016-13 2019-04, 2019-04 2016-13, 2019-04 2016-13 2019-04 2016-13. In January 2017, the FASB issued ASU 2017-04: In June 2018, the FASB issued ASU 2018-07: Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the amendments in this ASU, most of the current guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees, including determination of measurement date and accounting for performance conditions and for share-based payments after vesting. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted. The Group does not expect the adoption of this guidance will have a significant effect on the Group’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, 2018-13 2018-13 2018-13 In October 2018, the FASB issued ASU 2018-17, 2018-17 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Details of Company's Subsidiaries and Variable Interest Entities | As of September 30, 2019, details of the Company’s subsidiaries, its VIEs and VIEs’ subsidiaries were as follows: Company name Later of date of incorporation or acquisition Place of incorporation (or establishment) /operation Percentage of legal ownership 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 training services Nanjing Champion Vocational Training School (“Nanjing Training School”) July 03, 2015 PRC 35.76 %* Provision of start-up training services Xiamen NetinNet Software Co., Ltd (“Xiamen NetinNet”)4 May 3, 2016 PRC 28.608 %* Provision of learning simulation software production Xiamen NetinNet Education Technology Co., Ltd. (“NetinNet Education”) May 3, 2016 PRC 28.608 %* Provision of learning simulation software production Xiamen NetinNet Finance Technology Co., Ltd. (“NetinNet Finance ”) May 3, 2016 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 training services Guangdong Zhengbao Yucai Education Co., Ltd. (“Guangdong Yucai”) June 23, 2017 PRC 21.456 %* Provision of start-up training services JinMaLan (Tianjin) Business Start-up Services Co., Ltd. (“Tianjin JinMaLan”) December 08, 2017 PRC 25.032 %* Provision of start-up training services JinMaLan (Anqing) Business Start-up Services Co., Ltd. (“Anqing JinMaLan”) July 07, 2018 PRC 21.456 %* Provision of start-up training services Nanchang Champion Vocational Training School. (“Nanchang Training School”) March 18, 2019 PRC 35.76% * Provision of start-up training services Haimen Zhengbao Yucai Vocational Training School (“Haimen Training School”) May 20, 2019 PRC 35.76% * Provision of start-up training services VIEs Beijing Champion Hi-Tech Co., Ltd. (“Beijing Champion”) July 2 00 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. Company name La ter of date of incorporation o r acquisition Place of incorporation ( or establishment /operation Percentage of b y Company Principal activities 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 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) November 1, 2017 PRC Nil Provision of financial and tax advisory and accounting service Jiangsu Caishuibang Enterprise Management Co., Ltd. (“Caishuibang”) November 1, 2017 PRC Nil Provision of development of web-based Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Shenzhen Ruida Chengtai Education Technology Co., Ltd. (“Shenzhen Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Guangzhou Ruida Chengtai Education Technology Co., Ltd. (“Guangzhou Ruida”) July 11, 2018 PRC Nil Provision of legal profession services Hangzhou Ruitai Education Technology Co., Ltd. (“Hangzhou Chengtai”) July 11, 2018 PRC Nil Provision of legal profession services Nanjing Ruida Chengtai Education Technology. Co., Ltd. (“Nanjing Chengtai”) July 11, 2018 PRC Nil Provision of legal profession services Beijing Youbang Culture and Art Training School (“Beijing Youbang”) July 11, 2018 PRC Nil Provision of legal profession services Jiangsu Champion Healthcare Education Technology Co., Ltd. (“Jiangsu Healthcare ” ) January 29, 2019 PRC Nil Provision of online education services Jiangsu Champion E&C Education Technology. Co., Ltd (“Jiangsu E&C ” ) January 29, 2019 PRC Nil Provision of online education services Jiangsu Champion Self-taught Education Co., Ltd. (“Jiangsu Self-taught ” ) January 29, 2019 PRC Nil Provision of online education services Beijing Champion H&E Technology Co., Ltd. (“Beijing H&E ” ) March 21, 2019 PRC Nil Provision of online education services Beijing Champion E&C Education Technology. Co., Ltd (“Beijing E&C ” ) March 05, 2019 PRC Nil Provision of online education services Beijing Champion Self-taught Education Co., Ltd. (“Beijing Self-taught”) March 07, 2019 PRC Nil Provision of online education 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, 2018 and 2019 and for each of the three years in the period ended September 30, 2019 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within VIEs and VIEs’ subsidiaries: As of September 30, 2018 2019 US$ US$ Cash and cash equivalents 20,477 39,919 Prepayment and other current assets 13,365 24,533 Total current assets 132,527 195,778 Total assets 258,535 324,413 Deferred revenue 77,299 123,678 Total current liabilities 130,976 176,250 Total liabilities 130,976 176,250 Total equity 127,559 148,164 For the years ended September 30, 2017 2018 2019 US$ US$ US$ Revenues 114,371 151,146 194,175 Net income 31,379 29,532 43,982 Net cash provided by operating activities 22,100 44,054 41,667 Net cash used in investing activities (31,403 ) (44,414 ) (20,616 ) Net cash used in financing activities (5,506 ) (5,706 ) — Effects of exchange rate changes (5,435 ) (555 ) (1,609 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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 Business contracts 3~5 years Copyrights 5~7 years Others 3.5~8 years |
Disaggregation of Revenue | The Group’s revenues are reported net of VAT and surcharges . Over-time A point-in-time Total US$ US$ US$ Online education services 144,221 1,696 145,917 Books and reference materials — 27,372 27,372 Other professional education services 14,079 8,679 22,758 Professional education services 158,300 37,747 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 158,300 53,552 211,822 Refundable Non-refundable Total US$ US$ US$ Online education services 22,465 123,452 145,917 Books and reference materials — 27,372 27,372 Other professional education services — 22,758 22,758 Professional education services 22,465 173,582 196,047 Sales of learning simulation software — 12,979 12,979 Business start-up training services — 2,796 2,796 Total 22,465 189,357 211,822 |
Summary Of Deferred Revenue expected To Be Realized | The Group’s contract liabilities mainly consist of prepayments from students (deferred revenue), with a balance of US$ 80,560 62,363 127,766 : US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 |
Schedule Of Impact Of Adoption Of ASC 606 ON Financials Statements | The following table presents the impact of the adoption of Topic 606 on the consolidated balance sheet and statement of operations as of and for the year ended September 30, 2019: As of and for the year ended September 30, 2019 Balances without adoption of Effect change As reported Topic 606 higher/(lower) US$ US$ US$ Net revenues 211,822 195,531 16,291 Selling expenses – commission fee (10,752 ) (16,178 ) (5,426 ) Prepayment and other current asset 4,974 — 4,974 Other non-current 3,251 — 3,251 Deferred revenue – current portion 94,202 92,896 1,306 Deferred revenue – non-current 33,564 27,570 5,994 Refundable fees – current portion 435 3,673 (3,238 ) Refundable fees – non-current 2,440 23,245 (20,805 ) Retained earnings at beginning 39,414 29,717 9,697 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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 s 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 |
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 revenues 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 c 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, 2019 | |
Short-term Investments | Short-term investments consisted of the following: As of September 30, 2018 2019 US$ US$ Held-to-maturity 2,634 1,517 Available-for-sale 14,439 20,601 17,073 22,118 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accounts Receivable, Net | Accounts receivable, net , As of September 30, 2018 2019 US$ US$ Accounts receivable 8,622 8,612 Less: allowance for doubtful accounts (1,342 ) (1,282 ) Accounts receivable, net 7,280 7,330 |
Movement Of Allowance For Doubtful Accounts | Movement of allowance for doubtful accounts w a As of September 30, 2018 2019 US$ US$ Balance at beginning of the year 1,191 1,342 Increase (reversal) of the allowance for doubtful accounts 199 (8 ) Foreign currency adjustment (48 ) (52 ) Balance at end of the year 1,342 1,282 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Inventories | Inventories consisted of the following: As of September 30, 2018 2019 US$ US$ Books and other goods 2,010 3,727 Paper and other raw materials 900 1,035 Less: inventory provisions for slow-moving and obsolescence (128 ) (530 ) Total 2,782 4,232 |
PREPAYMENT AND OTHER CURRENT _2
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Prepayment And Other Current Assets | Prepayment and other current assets consisted of the following: As of September 30, Notes 2018 2019 US$ US$ Prepaid expenses 6,812 8,974 Capitalized commission fees (1 ) — 4,974 Advance to suppliers (2 ) 4,468 3,938 Funds receivable (3 ) 1,750 2,364 Staff advances (4 ) 1,073 1,591 Receivable from disposal of a subsidiary (5 ) — 1,540 Rental and other deposits 593 1,045 Interest receivabl e 1,380 133 Others 978 2,173 Prepayment and other current assets, ne t 17,054 26,732 (1) Capitalized commission fees primarily consist of the incremental sal e e as described in Note 2 . (2) 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 (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. (4) Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. (5) Receivable from disposal of a subsidiary refers to the remaining consideration receivable due from the buyers of Beijing Champion Tax Management and Advisory Co., Ltd. (“Champion Tax Advisory”), a previously consolidated subsidiary of the Group. The balance was received on January 8, 2020. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Property, Plant And Equipment | Property, plant and equipment, net, consisted of the following: As of September 30, 2018 2019 US$ US$ Buildings 9,111 8,756 Electronic and office equipment 17,687 20,069 Leasehold improvement and building improvement 2,291 2,086 Motor vehicles 2,099 10,843 Total 31,188 41,754 Less: Accumulated depreciation (15,215 ) (17,454 ) Construction in progress 11,999 13,635 27,972 37,935 |
GOODWILL, NET (Tables)
GOODWILL, NET (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Goodwill | Goodwill, net, consisted of the following: Years ended September 30 2018 2019 Professional Business start-up Sale s Total Professional Business start-up Sale s Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 5,408 1,692 22,359 29,459 56,214 1,642 21,660 79,516 Acquisition for the year 52,478 — — 52,478 — — — — Exchange difference (1,672 ) (50 ) (699 ) (2,421 ) (2,198 ) (125 ) (847 ) (3,170 ) Ending balance 56,214 1,642 21,660 79,516 54,016 1,517 20,813 76,346 Accumulated impairment loss — — — — — (1,517 ) — (1,517 ) Goodwill, net 56,214 1,642 21,660 79,516 54,016 — 20,813 74,829 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Composition Of Other Intangible Assets | The balance of other intangible assets, net, consisted of the following: As of September 30, 2018 2019 US$ US$ Computer software 5,512 5,858 Trademarks and domain names 5,624 5,429 Courseware 4,788 4,601 Business contracts 24,891 23,917 Copyrights 10,087 9,692 Others 907 871 Total intangible assets 51,809 50,368 Less: Accumulated amortization Computer software (4,037 ) (4,316 ) Trademarks and domain names (1,815 ) (2,727 ) Courseware (711 ) (1,857 ) Business contracts (1,461 ) (5,667 ) Copyrights (4,023 ) (5,346 ) Others (262 ) (342 ) Accumulated amortization (12,309 ) (20,255 ) Intangible assets, net 39,500 30,113 |
Estimated Amortization Expenses for Other Intangible Assets | The estimated amortization expenses for the intangible assets for each of the following fiscal years are as follows: Amortization US$ 2020 8,289 2021 8,051 2022 6,469 2023 5,589 2024 1,308 2025 and thereafter 407 30,113 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Schedule of Long-term Investments | Long-term investments consisted of the following: As of September 30, 2018 2019 US$ US$ Equity securities without readily determinable fair value: Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing 11,655 11,199 Beijing Yousian Technology Co., Ltd. (“Beijing Yousian”) (b) 3,276 — Other equity securities without readily determinable fair value 1,997 762 Equity method investments: Hangzhou Wanting Technology Co., Ltd. (“Hangzhou Wanting”) (c) 6,819 — Beijing Champion Yuanjian Education Technology Co., Ltd. (“Yuanjian”) (d) — 2,488 Other equity method investments (e) 3,115 2,590 Available-for-sale Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (f) 3,494 4,617 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (g) 2,326 2,434 Other available-for-sale 1,155 1,289 Total 33,837 25,379 (a) 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$11,119). The investment was classified as a cost method investment before the adoption of ASU 2016-01 in-substance ASU 2016-01, (b) 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 before the adoption of ASU 2016-01 in-substance In June 2019, the Group exercised its call option and redeemed all of the equity interest of Beijing Yousian. (c) 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 before adoption of ASU 2016-01, 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 During the year ended September 30, 2019, the Group determined that Hangzhou Wanting Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient future net cash flow. As a result, the Group fully impaired the investment and US$6,374 was recorded in impairment loss from long-term investments during the year ended September 30, 2019. (d) On December 29, 2018, the Group entered into a Share Transfer Agreement with Beijing Zhengbao TongChuang Technology Co., Ltd (“TongChuang”) and Beijing Zhengbao TongCheng Co., Ltd (“TongCheng”), to transfer 60% equity interest of Champion Tax Advisory to its key employees, for a total consideration of RMB35.9 million (US$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. The Group shared loss of US$658 from Yuanjian during the year ended September 30, 2019. (e) The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2018 and 2019. During the years ended September 30, 2017, 2018 and 2019, the Group recorded share of net loss (income) amounting US$153, US$(61) and US$47, respectively. (f) 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 (g) 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 (h) Other investments represent several insignificant investments classified as available-for-sale |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2018 and 2019, available-for-sale Available-for-sale contingent consideration payable related to the acquisition of Beijing Ruida was measured and recorded at fair value on a recurring basis included under “Accrued expenses and other liabilities”, and was subsequently settled during the year ended September 30, 2019. Refer to Note 3 for further details. The Group’s financial assets and liability measured at fair value on a recurring basis are as follows: Year ended September 30, 2019 Fair value 2019 Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) Fair value measured Cash and cash equivalents 67,977 67,977 — — Short-term investments: Available-for-sale 20,601 — 20,601 — Long-term investments: Available-for-sale 8,340 — 1,289 7,051 Total assets measured at fair value 96,918 67,977 21,890 7,051 Year ended September 30, 2018 Fair value Quoted prices in Significant Significant (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 (Note 3) 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, 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 Transfer from level 2 fair value measurement 2,327 Transfer to level 2 fair value measurement (1,154 ) Unrealized gain 1,459 Exchange loss (229 ) Balance as of September 30, 2019 7,051 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Other Non-Current Assets | Other non-current As of September 30, Notes 2018 2019 US$ US$ Long-term prepaid expenses (1 ) 3,823 3,864 Rental deposits (2 ) 923 1,017 Deposit of sole distributor agreement (3 ) 655 — Long-term capitalized commission fees (4 ) — 3,251 Long-term receivables — 1,540 Others 986 420 6,387 10,092 (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 The (4) Long-term capitalized commission fees primarily consist of the long-term incremental sales commission relating to obtaining the customers contract as described in Note 2 . |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consisted of the following: As of September 30, Notes 2018 2019 US$ US$ Tuition fee payable to government agencies (1 ) 13,122 12,971 Salary and welfare payable 8,389 8,317 Accrued expenses 9,351 8,691 Remuneration payable to lecturers 3,520 2,701 Uncertain income tax liabilities (Note 19) 158 152 Contingent consideration payable (2 ) 1,746 — Other payable 5,855 5,435 42,141 38,267 (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, 2019 | |
Income Before Income Taxes | Income before income taxes consisted of: Years ended September 30, 2017 2018 2019 US$ US$ US$ Non - PRC (4,204 ) (656 ) (3,332 ) PRC 25,245 15,438 29,131 21,041 14,782 25,799 |
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, 2017 2018 2019 US$ US$ US$ Current tax expense 5,344 5,717 7,060 Deferred tax (benefit) expense (724 ) (3,410 ) 1,061 4,620 2,307 8,121 |
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, 2017 2018 2019 US$ US$ US$ Income before taxes 21,041 14,782 25,799 Income tax expense computed at applicable tax rates of 25 5,260 3,696 6,450 Effect of different tax rates in different jurisdictions 988 770 704 Non-deductible 933 152 1,059 Effect of tax holidays (2,812 ) (2,610 ) (1,934 ) Effect of valuation allowances 116 285 1,232 Withholding tax on undistributed earnings 572 313 689 Income tax reversal (437 ) (299 ) (79 ) 4,620 2,307 8,121 Effective income tax rate 21.96 % 15.61 % 31.48 % |
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, 2017 2018 2019 US$ US$ US$ The aggregate amount of tax holidays 2,812 2,610 1,934 The aggregate effect on basic and diluted net income per share: - Basic 0.02 0.02 0.01 - Diluted 0.02 0.02 0.01 |
Components of Deferred Taxes | The components of deferred taxes are as follows: As of September 30, 2018 2019 US$ US$ Deferred tax assets Accrued expenses 1,217 984 Allowance for doubtful accounts 598 1,031 Impairment loss from long-term investments 867 1,178 Change in fair value of contingent consideration payable 435 — Property, plant and equipment 111 103 Net operating loss carry-forwards 3,364 2,811 Total deferred tax assets 6,592 6,107 Less: valuation allowance (881 ) (2,242 ) Deferred tax assets, net 5,711 3,865 Deferred tax liabilities Intangible assets 9,236 7,085 Withholding tax on undistributed earnings 3,011 3,556 Unrealized gain on available-for-sale 446 647 Capitalized c — 1,407 Total deferred tax liabilities 12,693 12,695 |
Reconciliation of Accrued Unrecognized Tax Benefits | Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized US$ Balance as of September 30, 2017 163 Foreign currency adjustment (5 ) Balance as of September 30, 2018 158 Foreign currency adjustment (6 ) Balance as of September 30, 2019 152 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Operating Lease Commitments | Future minimum payments under non-cancelable one-year as of US$ Years ending September 30, 2020 9,225 2021 5,169 2022 3,775 2023 3,701 2024 3,805 T 21,195 46,870 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Summary of Changes in Noncontrolling Interest | The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2017, 2018 and 2019. Zhengbao Y NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ 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 Capital contribution from noncontrolling interest shareholders 29 — — — 29 Purchase of equity interests from noncontrolling interest shareholders — — — (7,119 ) (7,119 ) Foreign currency translation adjustment attributed to noncontrolling interest shareholders (463 ) (372 ) (39 ) (1,261 ) (2,135 ) Cash dividends paid to noncontrolling interests by a subsidiary — (291 ) — — (291 ) (Loss) gain attributed to noncontrolling interest shareholders (6,173 ) 1,808 (55 ) (640 ) (5,060 ) Balance as of September 30, 2019 8,712 9,864 965 31,374 50,915 |
Schedule Discloses Effect of Changes in Ownership Interest | The schedule below discloses the effect of changes in the ownership interest on the Company’s equity: Years ended September 30, 2017 2018 2019 US$ US$ US$ Net income attributable to China Distance Education Holdings Limited 14,935 11,626 21,254 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in 1,090 — — Increase in the Group’s additional paid-in — 29 — Increase in the Group’s additional paid-in — — 810 Changes from net income attributable to China Distance Education Holdings Limited’s shareholders and transfer from noncontrolling interests 16,025 11,655 22,064 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Net Revenues, Operating Costs And Expenses, Operating Income, And Total Assets By Segment | 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 s Year s 2017 2018 2019 US$ US$ US$ Net revenues 130,988 166,668 211,822 Professional education services 114,190 150,484 196,047 Business start-up 5,276 4,608 2,796 Sale s 11,522 11,576 12,979 Operating costs and expenses: Cost of sales (57,412 ) (87,883 ) (104,741 ) Professional education services (50,168 ) (79,168 ) (96,044 ) Business start-up (2,069 ) (2,644 ) (1,777 ) Sale s (5,175 ) (6,071 ) (6,920 ) Selling and marketing (34,910 ) (44,717 ) (61,460 ) Professional education services (30,696 ) (39,698 ) (56,334 ) Business start-up (869 ) (1,127 ) (1,226 ) Sale s (3,345 ) (3,892 ) (3,900 ) General and administrative (15,955 ) (16,760 ) (20,064 ) Professional education services (12,890 ) (14,548 ) (16,745 ) Business start-up (1,034 ) (896 ) (1,930 ) Sale s (2,031 ) (1,316 ) (1,389 ) Impairment of goodwill — — (1,517 ) Business start-up training services — — (1,517 ) Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Total operating costs and expenses (111,790 ) (153,853 ) (192,637 ) Professional education services (93,754 ) (133,414 ) (169,123 ) Business start-up (3,972 ) (4,667 ) (6,450 ) Sale s (10,551 ) (11,279 ) (12,209 ) Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Other operating income 1,912 3,051 2,968 Professional education services 184 643 1,053 Business start-up 91 76 102 Sale s 1,637 2,332 1,813 Operating income (loss) 21,110 15,950 22,848 Professional education services 20,620 17,797 28,672 Business start-up 1,395 17 (3,552 ) Sale s 2,608 2,629 2,583 Unallocated corporate expenses (3,513 ) (4,493 ) (4,855 ) Segment assets 224,551 328,925 355,350 Professional education services 133,836 236,496 273,005 Business start-up 45,569 46,205 36,735 Sale s 45,146 46,224 45,610 Total assets 224,551 328,925 355,350 Amortization and depreciation 4,790 6,299 12,723 Professional education services 3,001 4,479 10,939 Business start-up 36 36 69 Sale s 1,753 1,784 1,715 (Loss) gain from equity method investments (153 ) (172 ) (1,484 ) Professional education services (153 ) 58 (1,173 ) Business start-up — (230 ) (311 ) Sale s — — — |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
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, 2017 2018 2019 US$ US$ US$ Numerator: Net income 14,935 11,626 21,254 - allocated to ordinary share - basic 14,891 11,583 21,117 - allocated to nonvested share - basic 44 43 137 Denominator: Weighted average number of ordinary shares outstanding 131,432,211 132,363,620 133,060,900 Weighted average number of nonvested share 400,644 487,685 862,436 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 1,370,400 265,850 214,781 Weighted average ordinary shares outstanding used in computing diluted net income per share 133,203,255 133,117,155 134,138,117 Basic net income per share 0.11 0.09 0.16 Basic net income per nonvested share 0.11 0.09 0.16 Diluted net income per share 0.11 0.09 0.16 Diluted net income per nonvested share 0.11 0.09 0.16 |
SHARE INCENTIVE PLAN (Tables)
SHARE INCENTIVE PLAN (Tables) | 12 Months Ended |
Sep. 30, 2019 | |
Summary of Option Activity | A summary of option activity of the share option granted to employees and non-executive directors as of September 30, 2017, 2018 and 2019, and changes during the years ended September 30, 2017, 2018 and 2019 are presented below: Share option granted to Number of Weighted- Weighted- Aggregated employees and non-executive shares exercise price term (years) intrinsic value 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 Exercised — — Forfeited (19,000 ) US$ 1.81 5.14 — Outstanding, September 30, 2019 1,040,100 US$ 1.39 4.57 — Expected to vest, September 30, 2019 — — Exercisable as of 1,040,100 US$ 1.39 4.57 — |
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, 2016 57,000 — 1.55 184 Exercised — — Outstanding, September 30, 2017 57,000 — 0.55 96 Exercised (57,000 ) — Outstanding, September 30, 2018 and — — — — Exercisable as of 2018 and — — — — |
Summary of Nonvested Restricted Shares Activities | A summary of the nonvested shares activities for the years ended September 30, 2017, 2018 and 2019 is as follows: Number of Weight average Aggregated US$ Nonvested shares outstanding as of 463,983 3.72 1,498 Granted 125,000 3.03 Vested (260,593 ) 3.75 Nonvested shares outstanding as of 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested shares outstanding as of 450,497 2.49 933 Granted 955,168 1.76 Forfeited (19,944 ) 2.13 Vested (678,881 ) 2.16 Nonvested shares outstanding as of 706,840 1.84 965 Nonvested shares expected to vest as of 706,840 1.84 965 |
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, 2017 2018 2019 US$ US$ US$ Cost of sales 164 161 23 General and administrative expenses 1,862 2,065 1,972 Selling expenses 85 80 10 2,111 2,306 2,005 |
Details of Subsidiaries and Var
Details of Subsidiaries and Variable Interest Entities (Detail) | 12 Months Ended | |
Sep. 30, 2019 | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 20, 2019 | |
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 | |
Nanchang Champion Training School Co., Ltd. ("Anqing JinMaLan") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 18, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 35.76% | [1] |
Principal activities | Provision of start-up training services | |
Haimen Zhengbao Yucai Vocational Training School ("Anqing JinMaLan") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 35.76% | [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 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 | |
Jiangsu Champion Healthcare Education Technology Co., Ltd. ("Jiangsu Healthcare") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jan. 29, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Jiangsu Champion E&C Education Technology Co., Ltd. ("Jiangsu E&C") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jan. 29, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Jiangsu Champion Self-taught Education Co., Ltd. ("Jiangsu Self-taught") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jan. 29, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Beijing Champion H&E Technology Co., Ltd. ("Beijing H&E") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 21, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Beijing Champion E&C Education Technology Co., Ltd. ("Beijing E&C") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 5, 2019 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Beijing Champion Self-taught Education Co., Ltd. ("Beijing Self-taught i") | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Mar. 7, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education 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, 2019 | Sep. 30, 2018 | |
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 | 57.00% | 51.00% |
Percent of liabilities | 75.00% | 60.00% |
Financial Information of Compan
Financial Information of Company's VIEs and VIEs' Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Oct. 01, 2018 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | $ 67,977 | $ 30,826 | |||
Prepayment and other current assets | 26,732 | 17,054 | |||
Total current assets | 168,689 | 127,876 | |||
Total assets | 355,350 | 328,925 | $ 224,551 | ||
Deferred revenue – current portion | 94,202 | 78,194 | $ 80,560 | ||
Total current liabilities | 182,905 | 194,440 | |||
Deferred revenue – non-current portion | 33,564 | ||||
Total non-current liabilities | 48,699 | 24,720 | |||
Total liabilities | 231,604 | 219,160 | |||
Total equity | 123,746 | 109,765 | 72,812 | $ 56,472 | |
Net cash provided by operating activities | 81,795 | 50,094 | 37,731 | ||
Net cash used in investing activities | (25,058) | (55,497) | (45,468) | ||
Net cash used in financing activities | (24,219) | (3,302) | 33,295 | ||
Consolidated VIE | |||||
Variable Interest Entity [Line Items] | |||||
Cash and cash equivalents | 39,919 | 20,477 | |||
Prepayment and other current assets | 24,533 | 13,365 | |||
Total current assets | 192,471 | 132,527 | |||
Total assets | 314,943 | 258,535 | |||
Deferred revenue – current portion | 93,364 | 77,299 | |||
Total current liabilities | 137,478 | 130,976 | |||
Deferred revenue – non-current portion | 33,564 | ||||
Total non-current liabilities | 36,004 | ||||
Total liabilities | 173,483 | 130,976 | |||
Total equity | 141,460 | 127,559 | |||
Net revenues | 183,893 | 151,146 | 114,371 | ||
Net income | 36,393 | 29,532 | 31,379 | ||
Net cash provided by operating activities | 41,568 | 44,054 | 22,100 | ||
Net cash used in investing activities | (20,517) | (44,414) | (31,403) | ||
Net cash used in financing activities | (5,706) | (5,506) | |||
Effects of exchange rate changes | $ (1,609) | $ (555) | $ (5,435) |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2019 | |
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 ($) | Oct. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Significant Accounting Policies [Line Items] | ||||
Goodwill impairment loss | $ 1,517,000 | |||
Impairment loss on equity method investment | 6,920,000 | 2,835,000 | 679,000 | |
Impairment loss on available-for-sale securities investments | 0 | 2,492,000 | 0 | |
Advertising expenses | 23,668,000 | 14,785,000 | 17,833,000 | |
Cost of sales | 104,741,000 | 87,883,000 | 57,412,000 | |
Cash and cash equivalents, denominated in RMB | $ 65,673,000 | $ 28,021,000 | ||
Foreign currency risk, cash and cash equivalents, represented amount, percent | 96.50% | 90.90% | ||
Impairment loss on equity method investment without readily determinable fair value | $ 546,000 | $ 0 | 0 | |
Amortization of contract costs | 6,166,000 | |||
Impairment of contract cost | 0 | |||
Deferred Revenue, Current | $ 80,560,000 | 94,202,000 | 78,194,000 | |
Refund Liability amount | 2,020,000 | 2,875,000 | ||
Deferred revenue recognized | 62,363,000 | |||
Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalized cost of obtaining contracts with customers | 4,974,000 | |||
Prepayaments And Other Current Assets And Non Current Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Capitalized cost of obtaining contracts with customers | 3,251,000 | |||
Adjustments for New Accounting Pronouncement | ||||
Significant Accounting Policies [Line Items] | ||||
cumulative effect on retained earnings | $ 9,697,000,000 | |||
Shipping and Handling | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of sales | $ 3,154,000 | 1,852,000 | 1,134,000 | |
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% | |||
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 | $ 94,000 | $ 93,000 | $ 132,000 | |
Business tax and related surcharges, percent | 6.00% | 6.00% | 6.00% | |
Business tax and related surcharges, amount | $ 1,172,000 | $ 1,075,000 | $ 390,000 | |
Beijing Champion Education Technology Co., Ltd. (''Champion Education Technology'') | ||||
Significant Accounting Policies [Line Items] | ||||
PRC value added tax ("VAT"), general rate | 6.00% |
Other Intangible Assets Estimat
Other Intangible Assets Estimated Useful Lives (Detail) | 12 Months Ended |
Sep. 30, 2019 | |
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 |
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 |
The Group's Revenue Is Reported
The Group's Revenue Is Reported Net Of VAT And Surcharges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 211,822 | $ 166,668 | $ 130,988 |
Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,465 | ||
Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 189,357 | ||
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 158,300 | ||
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 53,552 | ||
Professional education services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 196,047 | 150,484 | 114,190 |
Professional education services | Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,465 | ||
Professional education services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 173,582 | ||
Professional education services | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 158,300 | ||
Professional education services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 37,747 | ||
Sales of learning simulation software | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12,979 | 11,576 | 11,522 |
Sales of learning simulation software | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12,979 | ||
Sales of learning simulation software | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 12,979 | ||
Business start-up training services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,796 | 4,608 | 5,276 |
Business start-up training services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,796 | ||
Business start-up training services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,796 | ||
Online education services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 145,917 | 117,026 | 95,503 |
Online education services | Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,465 | ||
Online education services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 123,452 | ||
Online education services | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 144,221 | ||
Online education services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 1,696 | ||
Books and reference materials | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 27,372 | 10,213 | 8,980 |
Books and reference materials | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 27,372 | ||
Books and reference materials | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 27,372 | ||
Others | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 38,533 | $ 39,429 | $ 26,505 |
Others | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,758 | ||
Others | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 14,079 | ||
Others | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 8,679 |
Summary Of Deferred Revenue Exp
Summary Of Deferred Revenue Expected To Be Realized (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Accounting Policies [Abstract] | |
Years ending September 30, 2020 | $ 94,202 |
2021 | 24,999 |
2022 | 7,288 |
2023 | 1,159 |
2024 | 118 |
Total | $ 127,766 |
Impact Of The Adoption Of Topic
Impact Of The Adoption Of Topic 606 On The Consolidated Balance Sheet And Statement Of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 | |
Deferred revenue – current portion | $ 94,202 | $ 80,560 | $ 78,194 |
Deferred revenue – non-current portion | 33,564 | ||
Refundable fees – current portion | 435 | 13,837 | |
Refundable fees – non-current portion | 2,440 | ||
Retained earnings at beginning | 60,668 | 29,717 | |
Accounting Standards Update 2014-09 | |||
Net revenues | 211,822 | ||
Selling expenses – commission fee | (10,752) | ||
Prepayment and other current asset | 4,974 | ||
Other non-current asset | 3,251 | ||
Deferred revenue – current portion | 94,202 | ||
Deferred revenue – non-current portion | 33,564 | ||
Refundable fees – current portion | 435 | ||
Refundable fees – non-current portion | 2,440 | ||
Retained earnings at beginning | 39,414 | ||
Balances without adoption of Topic 606 | Accounting Standards Update 2014-09 | |||
Net revenues | 195,531 | ||
Selling expenses – commission fee | (16,178) | ||
Deferred revenue – current portion | 92,896 | ||
Deferred revenue – non-current portion | 27,570 | ||
Refundable fees – current portion | 3,673 | ||
Refundable fees – non-current portion | 23,245 | ||
Retained earnings at beginning | 29,717 | ||
Effect change higher/(lower) | Accounting Standards Update 2014-09 | |||
Net revenues | 16,291 | ||
Selling expenses – commission fee | (5,426) | ||
Deferred revenue – current portion | 1,306 | ||
Deferred revenue – non-current portion | 5,994 | ||
Refundable fees – current portion | (3,238) | ||
Refundable fees – non-current portion | $ (20,805) | ||
Retained earnings at beginning | $ 9,697 |
Business Acquisition - Addition
Business Acquisition - Additional Information (Detail) $ in Thousands, ¥ in Millions | May 15, 2019USD ($) | May 15, 2019CNY (¥) | Jul. 10, 2018USD ($) | Jul. 10, 2018CNY (¥) | Nov. 01, 2017USD ($) | Nov. 01, 2017CNY (¥) | Jun. 30, 2017USD ($) | Jun. 30, 2017CNY (¥) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2019CNY (¥) | Apr. 26, 2019USD ($) | Apr. 26, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jul. 31, 2018 | Jul. 10, 2018CNY (¥) | Jun. 30, 2017CNY (¥) |
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | $ 74,829 | $ 79,516 | |||||||||||||||||
Beijing Ruida Chengtai Education Technology Co Ltd [Member] | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of equity interest acquired | 60.00% | 60.00% | |||||||||||||||||
Total consideration | $ 5,580 | ¥ 38.3 | $ 5,931 | ¥ 39.6 | |||||||||||||||
Cost method investments | $ 28,758 | ¥ 192 | |||||||||||||||||
Equity ownership interest | 9.00% | 9.00% | 11.00% | 40.00% | 51.00% | 51.00% | 11.00% | 11.00% | 40.00% | ||||||||||
Settlement of contingent consideration | $ 7,098 | ¥ 46 | |||||||||||||||||
Contingent consideration payable | $ 1,746 | $ 1,048 | $ 1,746 | ¥ 12 | ¥ 7.2 | ¥ 12 | |||||||||||||
Change in fair value gain | $ 676 | ||||||||||||||||||
Change in fair value of option percentage | 11.00% | ||||||||||||||||||
Net purchase price | $ 32,800 | ¥ 225.3 | |||||||||||||||||
Equity interest in acquiree, remeasurement loss | $ 590 | ||||||||||||||||||
Equity interest in acquiree, percentage | 49.00% | 49.00% | 40.00% | 40.00% | |||||||||||||||
Contingent consideration payable | $ 695 | ¥ 4.8 | |||||||||||||||||
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||
Percentage of equity interest acquired | 80.00% | ||||||||||||||||||
Goodwill | $ 3,547 | ||||||||||||||||||
Total consideration | 6,059 | ¥ 40 | |||||||||||||||||
Net purchase price | $ 6,059 |
Business Acquisition - Summary
Business Acquisition - Summary of Purchase Price Allocation (Detail) - USD ($) $ in Thousands | Nov. 01, 2017 | Jun. 30, 2017 | Sep. 30, 2019 | Sep. 30, 2018 |
Intangible assets | ||||
Goodwill | $ 74,829 | $ 79,516 | ||
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 | |||
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 | |||
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 revenues | $ 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 revenues | $ 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, 2019 | Sep. 30, 2018 | |
Schedule of Investments [Line Items] | ||
Short term investments, maturity period | 34 days | |
Other than temporary impairment losses, investments | $ 0 | $ 0 |
Investment, interest range | 3.15% |
Short-term Investments (Detail)
Short-term Investments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Schedule of Investments [Line Items] | ||
Short-term investments | $ 22,118 | $ 17,073 |
Held-to-maturity securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | 1,517 | 2,634 |
Available-for-sale securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | $ 20,601 | $ 14,439 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable | $ 8,612 | $ 8,622 |
Less: allowance for doubtful accounts | (1,282) | (1,342) |
Accounts receivable, net | $ 7,330 | $ 7,280 |
Movement of Allowance For Doubt
Movement of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of the year | $ 1,342 | $ 1,191 |
Increase (reversal) of the allowance for doubtful accounts | (8) | 199 |
Foreign currency adjustment | (52) | (48) |
Balance at end of the year | $ 1,282 | $ 1,342 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Inventory [Line Items] | ||
Books and other goods | $ 3,727 | $ 2,010 |
Paper and other raw materials | 1,035 | 900 |
Less: inventory provisions for slow-moving and obsolescence | (530) | (128) |
Total | $ 4,232 | $ 2,782 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Inventory [Line Items] | |||
Inventories provision | $ 1,090 | $ 15 | $ 261 |
Prepayment and Other Current _3
Prepayment and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 8,974 | $ 6,812 | |
Capitalized commission fees | [1] | 4,974 | |
Advance to suppliers | [2] | 3,938 | 4,468 |
Funds receivable | [3] | 2,364 | 1,750 |
Staff advances | [4] | 1,591 | 1,073 |
Receivable from disposal of a component | [5] | 1,540 | |
Rental and other deposits | 1,045 | 593 | |
Interest receivable | 133 | 1,380 | |
Others | 2,173 | 978 | |
Prepayment and other current assets, net | $ 26,732 | $ 17,054 | |
[1] | Capitalized commission fees primarily consist of the incremental sales commission relating to obtaining the customers contract as described in Note 2. | ||
[2] | 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. | ||
[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. | ||
[4] | Staff advances were provided to staff for travelling and business related use which were subsequently expensed when incurred. | ||
[5] | Receivable from disposal of a subsidiary refers to the remaining consideration receivable due from the buyers of Beijing Champion Tax Management and Advisory Co., Ltd. (“Champion Tax Advisory”), a previously consolidated subsidiary of the Group. The balance was received on January 8, 2020. |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 41,754 | $ 31,188 |
Less: Accumulated depreciation | (17,454) | (15,215) |
Construction in progress | 13,635 | 11,999 |
Property, Plant and Equipment, Net | 37,935 | 27,972 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 8,756 | 9,111 |
Electronic And Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 20,069 | 17,687 |
Leasehold Improvement And Building Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,086 | 2,291 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 10,843 | $ 2,099 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 3,958 | $ 3,069 | $ 2,792 |
Goodwill, Net (Detail)
Goodwill, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | |||
Beginning balance | $ 79,516 | $ 29,459 | |
Acquisition for the year | 52,478 | ||
Exchange difference | (3,170) | (2,421) | |
Ending balance | 76,346 | 79,516 | |
Accumulated impairment loss | (1,517) | 0 | |
Goodwill, net | 74,829 | 79,516 | |
Professional Education Services | |||
Goodwill [Line Items] | |||
Beginning balance | 56,214 | 5,408 | |
Acquisition for the year | 52,478 | ||
Exchange difference | (2,198) | (1,672) | |
Ending balance | 54,016 | 56,214 | |
Accumulated impairment loss | 0 | 0 | |
Goodwill, net | 54,016 | 56,214 | |
Business Startup Training Service | |||
Goodwill [Line Items] | |||
Goodwill, net | 1,517 | 0 | $ 0 |
Beijing Haidian District Champion Training School (''Beijing Training School'') | Zhengbao Yucai and subsidiaries | Business Startup Training Service | |||
Goodwill [Line Items] | |||
Beginning balance | 1,642 | 1,692 | |
Exchange difference | (125) | (50) | |
Ending balance | 1,517 | 1,642 | |
Accumulated impairment loss | (1,517) | 0 | |
Goodwill, net | 1,642 | ||
Nanjing Champion Vocational Training School (''Nanjing Training School'') | Xiamen NetinNet and subsidiaries | Sale of Learning Simulation Software | |||
Goodwill [Line Items] | |||
Beginning balance | 21,660 | 22,359 | |
Exchange difference | (847) | (699) | |
Ending balance | 20,813 | 21,660 | |
Accumulated impairment loss | 0 | 0 | |
Goodwill, net | $ 20,813 | $ 21,660 |
Goodwill, Net - Additional Info
Goodwill, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Goodwill [Line Items] | |||
Goodwill, net | $ 74,829,000 | $ 79,516,000 | |
Impairment loss on goodwill | 1,517,000 | ||
Business start-up training services | |||
Goodwill [Line Items] | |||
Goodwill, net | 1,517,000 | 0 | 0 |
Impairment loss on goodwill | 1,517,000 | ||
Professional education services | |||
Goodwill [Line Items] | |||
Impairment loss on goodwill | 0 | 0 | 0 |
Sales of learning simulation software | |||
Goodwill [Line Items] | |||
Impairment loss on goodwill | $ 0 | $ 0 | $ 0 |
Composition of Other Intangible
Composition of Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 50,368 | $ 51,809 |
Less: Accumulated amortization | (20,255) | (12,309) |
Other intangible assets, Net | 30,113 | 39,500 |
Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,858 | 5,512 |
Less: Accumulated amortization | (4,316) | (4,037) |
Trademarks and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,429 | 5,624 |
Less: Accumulated amortization | (2,727) | (1,815) |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,601 | 4,788 |
Less: Accumulated amortization | (1,857) | (711) |
Business Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 23,917 | 24,891 |
Less: Accumulated amortization | (5,667) | (1,461) |
Copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 9,692 | 10,087 |
Less: Accumulated amortization | (5,346) | (4,023) |
Others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 871 | 907 |
Less: Accumulated amortization | $ (342) | $ (262) |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 8,765 | $ 3,230 | $ 1,998 |
Estimated Amortization Expenses
Estimated Amortization Expenses for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
2020 | $ 8,289 | |
2021 | 8,051 | |
2022 | 6,469 | |
2023 | 5,589 | |
2024 | 1,308 | |
2025 and thereafter | 407 | |
Other intangible assets, Net | $ 30,113 | $ 39,500 |
Summary of Long-term Investment
Summary of Long-term Investments (Detail) $ in Thousands, ¥ in Millions | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2017CNY (¥) | |
Available-for-sale securities investments: | |||||
Total | $ 25,379 | $ 33,837 | |||
Beijing teacheredu.cn Science & Technology Co., Ltd. ("Beijing teacheredu") | |||||
Equity securities without readily determinable fair value: | |||||
Equity securities without readily determinable fair value amount | [1] | 11,199 | 11,655 | ||
Beijing Yousian Technology Co., Ltd. ("Beijing Yousian") | |||||
Equity securities without readily determinable fair value: | |||||
Equity securities without readily determinable fair value amount | [2] | 3,276 | |||
Other equity securities without readily determinable fair value | |||||
Equity securities without readily determinable fair value: | |||||
Equity securities without readily determinable fair value amount | 762 | 1,997 | |||
Hangzhou Wanting Technology Co., Ltd. ("Hangzhou Wanting") | |||||
Equity method investment: | |||||
Equity method investments | [3] | 6,819 | |||
Beijing Champion Yuanjian Education Technology Co., Ltd. ("Yuanjian") | |||||
Equity method investment: | |||||
Equity method investments | [4] | 2,488 | |||
Other equity method investments | |||||
Equity method investment: | |||||
Equity method investments | [5] | 2,590 | 3,115 | ||
Chongqing Moses Robots Co., Ltd. ("Chongqing Moses Robots") | |||||
Equity method investment: | |||||
Equity method investments | $ 1,503 | ¥ 10 | |||
Available-for-sale securities investments: | |||||
Available-for-sale securities investments | [6] | 4,617 | 3,494 | ||
Beijing Niuke Technology Co., Ltd ("Niuke Technology") | |||||
Available-for-sale securities investments: | |||||
Available-for-sale securities investments | [7] | 2,434 | 2,326 | ||
Other available-for-sale investments | |||||
Available-for-sale securities investments: | |||||
Available-for-sale securities investments | [8] | $ 1,289 | $ 1,155 | ||
[1] | 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$11,119). The investment was classified as a cost method investment before the adoption of ASU 2016-01 because it was not in-substance common share for the years ended September 30, 2018. After the adoption of ASU 2016-01, the Group accounted for the equity investments using the measurement alternative when the equity method is not applicable and there is no readily determinable fair value for the investments. For the years ended September 30, 2017, 2018 and 2019, no impairment loss was recorded in regard to the investment. | ||||
[2] | 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 before the adoption of ASU 2016-01 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. In June 2019, the Group exercised its call option and redeemed all of the equity interest of Beijing Yousian. | ||||
[3] | 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 before adoption of ASU 2016-01, 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 applied 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 and US$309 from Hangzhou Wanting for the year ended September 30, 2018 and 2019, respectively. During the year ended September 30, 2019, the Group determined that Hangzhou Wanting Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient future net cash flow. As a result, the Group fully impaired the investment and US$6,374 was recorded in impairment loss from long-term investments during the year ended September 30, 2019. | ||||
[4] | On December 29, 2018, the Group entered into a Share Transfer Agreement with Beijing Zhengbao TongChuang Technology Co., Ltd (“TongChuang”) and Beijing Zhengbao TongCheng Co., Ltd (“TongCheng”), to transfer 60% equity interest of Champion Tax Advisory to its key employees, for a total consideration of RMB35.9 million (US$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. The Group shared loss of US$658 from Yuanjian during the year ended September 30, 2019. | ||||
[5] | The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2018 and 2019. During the years ended September 30, 2017, 2018 and 2019, the Group recorded share of net loss (income) amounting US$153, US$(61) and US$47, respectively. | ||||
[6] | 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 and US$1,070 was reported in other comprehensive loss for the years ended September 30, 2018 and 2019, respectively. | ||||
[7] | 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$884 and US$170 were reported in other comprehensive loss for the years ended September 30, 2018 and 2019, respectively. | ||||
[8] | Other investments represent several insignificant investments classified as available-for-sale investments as of September 30, 2018 and 2019. Unrealized holding gains of US$218 and US$135 were reported in other comprehensive loss for the years ended September 30, 2018 and 2019, respectively. |
Summary of Long-term Investme_2
Summary of Long-term Investments (Parenthetical) (Detail) $ in Thousands, ¥ in Millions | Dec. 29, 2018CNY (¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (¥) | Mar. 31, 2018USD ($) | Mar. 31, 2018CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2018CNY (¥) | Sep. 30, 2017USD ($) | Mar. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Nov. 30, 2017USD ($) | Nov. 30, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | |
Investment Holdings [Line Items] | ||||||||||||||||||
Net investment loss | $ (1,484) | $ (172) | $ (153) | |||||||||||||||
Unrealized holding gain in other comprehensive income | 1,375 | 2,599 | 173 | |||||||||||||||
Impairment loss on equity method investment | 6,920 | 2,835 | 679 | |||||||||||||||
Share Transfer Agreement [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Percentage of ownership interest | 40.00% | |||||||||||||||||
Percentage Of Transfer Of Equity Ownership | 40.00% | |||||||||||||||||
Equity Method Investmenst Consideration For Transfers | ¥ | ¥ 35.9 | ¥ 5,020 | ||||||||||||||||
Hangzhou Wanting Technology Co Ltd [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Cost method investment | $ 4,986 | $ 2,405 | ¥ 16 | ¥ 33.2 | ||||||||||||||
Equity ownership interest | 20.72% | 10.00% | 10.00% | 20.72% | ||||||||||||||
Net investment loss | $ 309 | 359 | ||||||||||||||||
Equity method inverstments | [1] | 6,819 | ||||||||||||||||
Beijing Yousian Technology Co Ltd. (''Beijing Yousian'') | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Cost method investment | $ 632 | ¥ 3.3 | ||||||||||||||||
Equity ownership interest | 15.00% | 15.00% | ||||||||||||||||
Contingent consideration | $ 3,276 | ¥ 22.5 | ||||||||||||||||
Chongqing Moses Robots Co Ltd [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Equity ownership interest | 10.00% | 10.00% | ||||||||||||||||
Equity method inverstments | $ 1,503 | ¥ 10 | ||||||||||||||||
Percentage of ownership interest | 15.00% | |||||||||||||||||
Share compensation, percentage | 5.00% | |||||||||||||||||
Unrealized holding gain in other comprehensive income | $ 1,070 | 1,917 | ||||||||||||||||
Beijing Teacheredu [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Equity ownership interest | 14.50% | 14.50% | ||||||||||||||||
Equity method inverstments | $ 11,119 | ¥ 80 | ||||||||||||||||
Niuke Technology [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Equity ownership interest | 10.65% | 10.65% | 8.50% | 8.50% | ||||||||||||||
Contingent consideration | $ 655 | ¥ 4.5 | ||||||||||||||||
Equity method inverstments | $ 639 | ¥ 4.3 | ||||||||||||||||
Percentage of ownership interest | 3.00% | 3.00% | ||||||||||||||||
Unrealized holding gain in other comprehensive income | 170 | 884 | ||||||||||||||||
Other Investments [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Net investment loss | 47 | (61) | $ 153 | |||||||||||||||
Unrealized holding gain in other comprehensive income | 135 | $ 218 | ||||||||||||||||
Beijing Champion Yuanjian Education Technology Co [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Net investment loss | 658 | |||||||||||||||||
Equity method inverstments | [2] | $ 2,488 | ||||||||||||||||
Maximum | Beijing Champion Yuanjian Education Technology Co [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Percentage Of Transfer Of Equity Ownership | 60.00% | |||||||||||||||||
[1] | 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 before adoption of ASU 2016-01, 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 applied 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 and US$309 from Hangzhou Wanting for the year ended September 30, 2018 and 2019, respectively. During the year ended September 30, 2019, the Group determined that Hangzhou Wanting Technology encountered going concern issue due to its failure to obtain a new round capital investment, poor operating result and insufficient future net cash flow. As a result, the Group fully impaired the investment and US$6,374 was recorded in impairment loss from long-term investments during the year ended September 30, 2019. | |||||||||||||||||
[2] | On December 29, 2018, the Group entered into a Share Transfer Agreement with Beijing Zhengbao TongChuang Technology Co., Ltd (“TongChuang”) and Beijing Zhengbao TongCheng Co., Ltd (“TongCheng”), to transfer 60% equity interest of Champion Tax Advisory to its key employees, for a total consideration of RMB35.9 million (US$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. The Group shared loss of US$658 from Yuanjian during the year ended September 30, 2019. |
Available-For-Sale Securities R
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares, Call Option and Contingent Consideration Payable Measured and Recorded At Fair Value Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 22,118 | $ 17,073 |
Long-term investments | 25,379 | 33,837 |
Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 20,601 | 14,439 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 67,977 | 30,826 |
Total assets measured at fair value | 96,918 | 52,240 |
Contingent consideration payable (Note 3) | 1,746 | |
Total Liabilities measured at fair value | 1,746 | |
Fair Value, Measurements, Recurring | Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 20,601 | 14,439 |
Long-term investments | 8,340 | 6,975 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 67,977 | 30,826 |
Total assets measured at fair value | 67,977 | 30,826 |
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 | 21,890 | 16,766 |
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 | 20,601 | 14,439 |
Long-term investments | 1,289 | 2,327 |
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 | 7,051 | 4,648 |
Contingent consideration payable (Note 3) | 1,746 | |
Total Liabilities measured at fair value | 1,746 | |
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 | $ 7,051 | $ 4,648 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | 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 | 1,517 | $ 0 | $ 0 | |
Impairment loss on equity method investment | 6,374 | 343 | $ 679 | |
Impairment loss on equity method investment without readily determinable fair value | 546 | 0 | 0 | |
Impairment losses related to acquired intangible assets | 0 | 0 | 0 | |
Goodwill impairment loss | $ 1,517 | |||
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 | ||
Measurement Input, Price Volatility | Level 3 | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate | 0.446 | 0.488 | ||
Measurement Input, Price Volatility | Level 3 | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate | 0.575 | 0.55 | ||
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 | |||
Discount rate | 20 | |||
Measurement Input, Discount Rate | Level 3 | Minimum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate | 30 | 30 | ||
Measurement Input, Discount Rate | Level 3 | Maximum | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Discount rate | 34 | 38 | ||
Measurement Input, Expected Term | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Expected life of investment | 2 years 2 months 1 day | 3 years 2 months 1 day | ||
Business combination contingent consideration liability term | 5 months 23 days | |||
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 1 month 6 days | |||
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 | 3 years 4 months 24 days | |||
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 - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Transfer from level 2 fair value measurements | $ 2,327 | $ 936 |
Transfer to level 2 fair value measurement | (1,154) | |
Initial recognition | 1,577 | |
Unrealized gain | 1,459 | 2,135 |
Exchange loss | (229) | |
Ending balance | $ 7,051 | $ 4,648 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | |
Other Assets Noncurrent [Line Items] | |||
Long-term prepaid expenses | [1] | $ 3,864 | $ 3,823 |
Rental deposits | [2] | 1,017 | 923 |
Deposit of sole distributor agreement | [3] | 655 | |
Long-term capitalized commission fees | [4] | 3,251 | |
Long-term receivables | 1,540 | ||
Others | 420 | 986 | |
Other Assets, Miscellaneous, Total | $ 10,092 | $ 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 deposits since the contract is longer than a year. The deposit was returned to the Group during the year ended September 30, 2019. | ||
[4] | Long-term capitalized commission fees primarily consist of the long-term incremental sales commission relating to obtaining the customers contract as described in Note 2. |
Other Non-Current Assets (Paren
Other Non-Current Assets (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Other Assets Noncurrent [Line Items] | |
Period over which golf club membership fee is valid | 10 years |
Partial deposit returned | $ 655 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | |
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Tuition fee payable to government agencies | [1] | $ 12,971 | $ 13,122 |
Salary and welfare payable | 8,317 | 8,389 | |
Accrued expenses | 8,691 | 9,351 | |
Remuneration payable to lecturers | 2,701 | 3,520 | |
Uncertain income tax liabilities (Note 19) | 152 | 158 | |
Contingent consideration payable | [2] | 1,746 | |
Other payable | 5,435 | 5,855 | |
Accrued expenses and other liabilities | $ 38,267 | $ 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 - Additional In
Bank Borrowings - Additional Information (Detail) ¥ in Thousands, $ in Thousands | Jan. 14, 2020USD ($) | Dec. 14, 2019USD ($) | Dec. 13, 2019USD ($) | Nov. 30, 2019USD ($) | Nov. 22, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 14, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 26, 2019USD ($) | Jun. 14, 2019USD ($) | Jun. 06, 2019 | May 24, 2019USD ($) | May 24, 2019CNY (¥) | May 17, 2019USD ($) | Dec. 20, 2018 | Dec. 14, 2018 | Nov. 30, 2018USD ($) | Jun. 22, 2018USD ($) | Jan. 31, 2018USD ($) | Jan. 31, 2018CNY (¥) | Jan. 05, 2018USD ($) | Dec. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Jul. 19, 2017USD ($) | Jul. 19, 2017CNY (¥) | Jun. 24, 2015 | Jun. 27, 2019USD ($) | May 31, 2020USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019CNY (¥) | Jun. 27, 2019CNY (¥) | Jun. 26, 2019CNY (¥) | Jun. 25, 2019USD ($) | Jun. 25, 2019CNY (¥) | Oct. 23, 2018USD ($) | Sep. 30, 2018CNY (¥) | Jan. 05, 2018CNY (¥) | Dec. 18, 2017CNY (¥) | Jul. 21, 2017 | Jun. 22, 2015CNY (¥) |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,081 | ¥ 115,200 | ¥ 300,000 | |||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 3.437% | 3.99% | 3.49% | 2.91% | 2.82% | 3.43% | ||||||||||||||||||||||||||||||||||
Line of credit facility, effective period | 12 months | 12 months | 3 years | |||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | Jun. 26, 2019 | ||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,200 | $ 20,100 | ||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 6,000 | $ 8,000 | $ 5,000 | |||||||||||||||||||||||||||||||||||||
Long term bank borrowing, fair value | 0 | $ 12,464 | ||||||||||||||||||||||||||||||||||||||
Bank borrowing, fair value | 38,502 | 50,547 | ||||||||||||||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 1,100 | |||||||||||||||||||||||||||||||||||||||
Scenario, Forecast | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 15,100 | |||||||||||||||||||||||||||||||||||||||
Term Loan | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | 35,300 | $ 30,300 | $ 40,000 | $ 16,117 | ¥ 115,200 | $ 48,300 | ||||||||||||||||||||||||||||||||||
Line of credit facility, effective period | 1 year | |||||||||||||||||||||||||||||||||||||||
Debt Repayment | $ 6,000 | $ 8,000 | ||||||||||||||||||||||||||||||||||||||
Term Loan | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Repaid amount | 8,300 | $ 6,900 | ||||||||||||||||||||||||||||||||||||||
Debt Repayment | $ 8,300 | $ 8,000 | ||||||||||||||||||||||||||||||||||||||
One Hundered Fifteen Point Two Million BEA Facility | Subsequent Event | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 3,000 | |||||||||||||||||||||||||||||||||||||||
Debt Repayment | $ 3,000 | $ 12,100 | ||||||||||||||||||||||||||||||||||||||
Twenty Thousand One Hundred HSB Facility | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jan. 14, 2020 | Nov. 30, 2019 | ||||||||||||||||||||||||||||||||||||||
Fifteen Thousand Two Hundred HSB Facility | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Dec. 19, 2019 | Jan. 14, 2020 | ||||||||||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | $ 1,738 | $ 15,301 | $ 20,246 | ¥ 11,600 | $ 526 | ¥ 3,600 | ¥ 101,800 | ¥ 134,700 | ||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 25, 2019 | |||||||||||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | ||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | $ 38,358 | ¥ 274,170 | ||||||||||||||||||||||||||||||||||||||
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 | $ 5,073 | ¥ 35,000 | $ 6,843 | ¥ 47,000 | ||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 19,307 | ¥ 132,600 | ||||||||||||||||||||||||||||||||||||||
Equity interest percentage | 80.00% | 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% | ||||||||||||||||||||||||||||||||||||||
Long term bank borrowing, fair value | $ 7,072 | ¥ 50,600 | ||||||||||||||||||||||||||||||||||||||
Debt term | 3 years | 3 years |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2019USD ($) | |
Schedule Of Related Party Transaction Details [Line Items] | |
Amounts due to related parties | $ 600 |
Service Fees | |
Schedule Of Related Party Transaction Details [Line Items] | |
Service fees | 7,499 |
Commission Service Fees | |
Schedule Of Related Party Transaction Details [Line Items] | |
Amounts due to related parties | $ 2,013 |
Deconsolidation of a Subsidia_2
Deconsolidation of a Subsidiary - Additional Information (Detail) $ in Thousands, ¥ in Millions | Dec. 29, 2018USD ($) | Dec. 29, 2018CNY (¥) | Dec. 27, 2018USD ($) | Dec. 27, 2018CNY (¥) |
Champion Tax Advisory | ||||
Equity Ownership Percentage | 40.00% | 40.00% | ||
Total consideration | $ 5,020 | ¥ 35.9 | ||
Vesting period | 2 years | 2 years | ||
Champion Tax Advisory | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | ||||
Retained Investment, Deconsolidated Subsidiary, Measurement Input | 18.96 | 18.96 | ||
Champion Tax Advisory | Valuation Technique, Discounted Cash Flow [Member] | Measurement Input Terminal Value Growth Rate [Member] | ||||
Retained Investment, Deconsolidated Subsidiary, Measurement Input | 3 | 3 | ||
Share Transfer Agreement | ||||
Equity Ownership Percentage | 40.00% | 40.00% | ||
Share Transfer Agreement | Champion Tax Advisory | ||||
Equity interest transfer percentage | 60.00% | 60.00% | ||
Gain Loss On Sale Of Subsidiary | $ 6,869 | ¥ 47.5 | ||
Deconsolidation remeasurement gain of the retained equity interests | $ 2,081 | ¥ 14.3 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
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 | $ 30,875 | $ 33,120 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2019USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2015 | |
Income Tax Disclosure [Line Items] | ||||||
Income tax rate | 25.00% | 25.00% | 25.00% | 25.00% | ||
Withholding tax rate | 10.00% | 10.00% | ||||
Withholding tax on undistributed earnings | $ 3,556 | $ 3,011 | ||||
Income tax expenses | 8,121 | 2,307 | $ 4,620 | |||
Income tax reverse | 79 | 299 | 437 | |||
Unrecognized tax benefits | $ 152 | $ 158 | $ 163 | |||
Taxable Income percentage | 25.00% | 25.00% | ||||
Enterprise Tax Rate | 20.00% | 20.00% | ||||
Taxable Income Threshold Of Small And Micro Business | $ 140,000 | ¥ 1 | ||||
Tax Year 2019 | ||||||
Income Tax Disclosure [Line Items] | ||||||
Statutory Tax rate | 25.00% | 25.00% | ||||
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | ||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | ||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Scenario, Forecast | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | |||||
Beijing Champion and Champion Technology | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | |||||
Xiamen NetinNet | ||||||
Income Tax Disclosure [Line Items] | ||||||
Preferential income tax rate | 15.00% | 15.00% | 15.00% | 15.00% | ||
China Distance Education Limited (''CDEL Hong Kong'') | ||||||
Income Tax Disclosure [Line Items] | ||||||
Withholding tax rate | 5.00% | 5.00% | ||||
Withholding tax on undistributed earnings | $ 3,556 | $ 3,011 | ||||
Income tax expenses | $ 544 | $ 210 | $ 591 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Before Income Taxes [Line Items] | |||
Non - PRC | $ (3,332) | $ (656) | $ (4,204) |
PRC | 29,131 | 15,438 | 25,245 |
Income before income taxes and loss from equity method investments | $ 25,799 | $ 14,782 | $ 21,041 |
Current and Deferred Components
Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current tax expense | $ 7,060 | $ 5,717 | $ 5,344 |
Deferred tax (benefit) expense | 1,061 | (3,410) | (724) |
Income Tax Expense, Total | $ 8,121 | $ 2,307 | $ 4,620 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income before taxes | $ 25,799 | $ 14,782 | $ 21,041 |
Income tax expense computed at applicable tax rates of 25% | 6,450 | 3,696 | 5,260 |
Effect of different tax rates in different jurisdictions | 704 | 770 | 988 |
Non-deductible expenses | 1,059 | 152 | 933 |
Effect of tax holidays | (1,934) | (2,610) | (2,812) |
Effect of valuation allowances | 1,232 | 285 | 116 |
Withholding tax on undistributed earnings | 689 | 313 | 572 |
Income tax reversal | (79) | (299) | (437) |
Income Tax Expense, Total | $ 8,121 | $ 2,307 | $ 4,620 |
Effective income tax rate | 31.48% | 15.61% | 21.96% |
Reconciliation of Effective T_2
Reconciliation of Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
The aggregate amount of tax holidays | $ 1,934 | $ 2,610 | $ 2,812 |
Basic | |||
The aggregate effect on basic and diluted net income per share: | $ 0.01 | $ 0.02 | $ 0.02 |
Diluted | |||
The aggregate effect on basic and diluted net income per share: | $ 0.01 | $ 0.02 | $ 0.02 |
Components of Deferred Taxes (D
Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Deferred tax assets | ||
Accrued expenses | $ 984 | $ 1,217 |
Allowance for doubtful accounts | 1,031 | 598 |
Impairment loss from long-term investments | 1,178 | 867 |
Change in fair value of contingent consideration payable | 0 | 435 |
Property, plant and equipment | 103 | 111 |
Net operating loss carry-forwards | 2,811 | 3,364 |
Total deferred tax assets | 6,107 | 6,592 |
Less: valuation allowance | (2,242) | (881) |
Deferred tax assets, net | 3,865 | 5,711 |
Deferred tax liabilities | ||
Intangible assets | 7,085 | 9,236 |
Withholding tax on undistributed earnings | 3,556 | 3,011 |
Unrealized gain on available-for-sale investments | 647 | 446 |
Capitalized commission fees | 1,407 | 0 |
Total deferred tax liabilities | $ 12,695 | $ 12,693 |
Reconciliation of Accrued Unrec
Reconciliation of Accrued Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Beginning balance | $ 158 | $ 163 |
Foreign currency adjustment | (6) | (5) |
Ending balance | $ 152 | $ 158 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total contributions to the government, employee benefits, expensed as incurred | $ 12,773 | $ 12,297 | $ 8,591 |
Operating Lease Commitments (De
Operating Lease Commitments (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Commitments and Contingencies [Line Items] | |
Years ending September 30, 2020 | $ 9,225 |
2021 | 5,169 |
2022 | 3,775 |
2023 | 3,701 |
2024 | 3,805 |
Thereafter | 21,195 |
Operating leases, future minimum payments due, total | $ 46,870 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 27, 2019USD ($) | Jun. 27, 2019CNY (¥) | Jun. 26, 2019USD ($) | Jun. 26, 2019CNY (¥) | Jun. 25, 2019USD ($) | Jun. 25, 2019CNY (¥) | May 17, 2019USD ($) | Oct. 23, 2018USD ($) | Sep. 30, 2018CNY (¥) | Jun. 22, 2018USD ($) | Jan. 05, 2018USD ($) | Jan. 05, 2018CNY (¥) | Dec. 18, 2017USD ($) | Dec. 18, 2017CNY (¥) | Nov. 17, 2017USD ($) | Jun. 22, 2015CNY (¥) | |
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Operating leases rent expenses | $ 11,289 | $ 10,608 | $ 6,607 | ||||||||||||||||
Term loan agreement value | ¥ 115,200 | $ 15,081 | ¥ 300,000 | ||||||||||||||||
Term Loan | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Term loan agreement value | $ 35,300 | $ 16,117 | ¥ 115,200 | $ 30,300 | $ 48,300 | $ 40,000 | |||||||||||||
Number of loan agreements | 2 | 2 | 2 | 2 | |||||||||||||||
Term loan expiration date | Apr. 1, 2020 | ||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Term deposit used as collateral | $ 1,738 | ¥ 11,600 | $ 526 | ¥ 3,600 | $ 15,301 | ¥ 101,800 | $ 20,246 | ¥ 134,700 | |||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | |||||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||||
Term deposit used as collateral | $ 38,358 | ¥ 274,170 |
Summary of Changes in Noncontro
Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noncontrolling Interest [Line Items] | |||
Beginning balance | $ 65,491 | ||
Capital contribution from noncontrolling interest shareholders | 29 | $ 89 | $ 12,164 |
Noncontrolling interest shareholders resulting from new acquisitions | 42,598 | ||
Purchase of equity interests from noncontrolling interest shareholders | (6,309) | ||
Cash dividends paid to noncontrolling interests by a subsidiary | (810) | ||
(Loss) gain attributed to noncontrolling interest shareholders | (5,060) | 677 | 1,333 |
Ending balance | 50,915 | 65,491 | |
Noncontrolling interest | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 65,491 | 24,029 | |
Capital contribution from noncontrolling interest shareholders | 29 | 60 | 11,074 |
Noncontrolling interest shareholders resulting from new acquisitions | 42,598 | ||
Purchase of equity interests from noncontrolling interest shareholders | (7,119) | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (2,135) | (1,873) | |
Cash dividends paid to noncontrolling interests by a subsidiary | (291) | ||
(Loss) gain attributed to noncontrolling interest shareholders | (5,060) | 677 | |
Ending balance | 50,915 | 65,491 | 24,029 |
Noncontrolling interest | Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 15,319 | 16,911 | |
Capital contribution from noncontrolling interest shareholders | 29 | 60 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (463) | (447) | |
(Loss) gain attributed to noncontrolling interest shareholders | (6,173) | (1,205) | |
Ending balance | 8,712 | 15,319 | 16,911 |
Noncontrolling interest | Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 8,719 | 7,118 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (372) | (229) | |
Cash dividends paid to noncontrolling interests by a subsidiary | (291) | ||
(Loss) gain attributed to noncontrolling interest shareholders | 1,808 | 1,830 | |
Ending balance | 9,864 | 8,719 | $ 7,118 |
Noncontrolling interest | Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 1,059 | ||
Noncontrolling interest shareholders resulting from new acquisitions | 1,262 | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (39) | (43) | |
(Loss) gain attributed to noncontrolling interest shareholders | (55) | (160) | |
Ending balance | 965 | 1,059 | |
Noncontrolling interest | Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 40,394 | ||
Noncontrolling interest shareholders resulting from new acquisitions | 41,336 | ||
Purchase of equity interests from noncontrolling interest shareholders | (7,119) | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | (1,261) | (1,154) | |
(Loss) gain attributed to noncontrolling interest shareholders | (640) | 212 | |
Ending balance | $ 31,374 | $ 40,394 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) $ in Thousands, ¥ in Millions | May 15, 2019USD ($) | May 15, 2019CNY (¥) | Jul. 10, 2018USD ($) | Jul. 10, 2018CNY (¥) | Nov. 01, 2017USD ($) | Nov. 01, 2017CNY (¥) | Mar. 29, 2017USD ($) | Mar. 29, 2017CNY (¥) | Jul. 02, 2008 | Mar. 31, 2017USD ($)shares | Mar. 31, 2017CNY (¥)shares | Jan. 31, 2016USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018 | Apr. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2016 | May 31, 2016 | Apr. 18, 2008shares |
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period | shares | 11,652,556 | |||||||||||||||||||
Share based compensation arrangement by share based payment award percentage of outstanding stock issued | 5.00% | |||||||||||||||||||
Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Total consideration | ¥ | ¥ 38.3 | |||||||||||||||||||
Zhengbao Yucai | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Share based compensation arrangement by share based payment award percentage of outstanding stock issued | 40.50% | 40.50% | ||||||||||||||||||
Total fund raised by share issuance | $ 11,900 | ¥ 83.3 | ||||||||||||||||||
Combined equity interest percentage | 59.50% | 59.50% | ||||||||||||||||||
Zhengbao Yucai | Subsidiaries of Variable Interest Entities (The Group) | ||||||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||||||
Noncontrolling interest, ownership percentage by parent | 60.10% | 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% | 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 | 9.00% | 9.00% | 11.00% | 11.00% | ||||||||||||||||
Total consideration | $ 5,580 | $ 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 | 60.00% | 60.00% | 51.00% | 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] | ||||||||||||||||||||
Share-based compensation arrangement by share-based payment award, shares issued in period | shares | 41,880,000 | 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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Noncontrolling Interest [Line Items] | |||
Net income attributable to China Distance Education Holdings Limited | $ 21,254 | $ 11,626 | $ 14,935 |
Transfers from noncontrolling interest: | |||
Increase in the Group's additional paid-in capital in relation to share purchase from noncontrolling interests of Beijing Ruida | 810 | ||
Changes from net income attributable to China Distance Education Holdings Limited's shareholders and transfer from noncontrolling interests | 22,064 | 11,655 | 16,025 |
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 ($) | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 211,822,000 | $ 166,668,000 | $ 130,988,000 |
Other operating income | 2,968,000 | 3,051,000 | 1,912,000 |
Operating costs and expenses: | |||
Cost of revenues | (104,741,000) | (87,883,000) | (57,412,000) |
Selling and marketing | (61,460,000) | (44,717,000) | (34,910,000) |
General and administrative | (24,919,000) | (21,253,000) | (19,468,000) |
Impairment of goodwill | (1,517,000) | ||
Operating income (loss) | 22,848,000 | 15,950,000 | 21,110,000 |
Unallocated corporate expenses | (4,855,000) | (4,493,000) | (3,513,000) |
Unallocated corporate expenses | (4,855,000) | (4,493,000) | (3,513,000) |
Total assets | 355,350,000 | 328,925,000 | 224,551,000 |
Total assets | 355,350,000 | 328,925,000 | 224,551,000 |
(Loss) gain from equity method investments | (1,484,000) | (172,000) | (153,000) |
Cost of Sales | |||
Operating costs and expenses: | |||
Cost of revenues | (104,741,000) | (87,883,000) | (57,412,000) |
Selling Expense | |||
Operating costs and expenses: | |||
Selling and marketing | (61,460,000) | (44,717,000) | (34,910,000) |
General and Administrative Expense | |||
Operating costs and expenses: | |||
General and administrative | (20,064,000) | (16,760,000) | (15,955,000) |
Impairment of Goodwill | |||
Operating costs and expenses: | |||
Impairment of goodwill | (1,517,000) | ||
Operating Expense | |||
Operating costs and expenses: | |||
Total operating costs and expenses | (192,637,000) | (153,853,000) | (111,790,000) |
Other Operating Income (Expense) | |||
Segment Reporting Information [Line Items] | |||
Other operating income | 2,968,000 | 3,051,000 | 1,912,000 |
Operating Income (Loss) | |||
Operating costs and expenses: | |||
Operating income (loss) | 22,848,000 | 15,950,000 | 21,110,000 |
Depreciation And Amortization | |||
Operating costs and expenses: | |||
Amortization and depreciation | 12,723,000 | 6,299,000 | 4,790,000 |
Loss From Equity Method Investments | |||
Operating costs and expenses: | |||
(Loss) gain from equity method investments | (1,484,000) | (172,000) | (153,000) |
Professional education services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 196,047,000 | 150,484,000 | 114,190,000 |
Other operating income | 1,053,000 | 643,000 | 184,000 |
Operating costs and expenses: | |||
Cost of revenues | (96,044,000) | (79,168,000) | (50,168,000) |
Selling and marketing | (56,334,000) | (39,698,000) | (30,696,000) |
General and administrative | (16,745,000) | (14,548,000) | (12,890,000) |
Impairment of goodwill | 0 | 0 | 0 |
Total operating costs and expenses | (169,123,000) | (133,414,000) | (93,754,000) |
Operating income (loss) | 28,672,000 | 17,797,000 | 20,620,000 |
Total assets | 273,005,000 | 236,496,000 | 133,836,000 |
Total assets | 273,005,000 | 236,496,000 | 133,836,000 |
Amortization and depreciation | 10,939,000 | 4,479,000 | 3,001,000 |
(Loss) gain from equity method investments | (1,173,000) | 58,000 | (153,000) |
Business start-up training services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,796,000 | 4,608,000 | 5,276,000 |
Other operating income | 102,000 | 76,000 | 91,000 |
Operating costs and expenses: | |||
Cost of revenues | (1,777,000) | (2,644,000) | (2,069,000) |
Selling and marketing | (1,226,000) | (1,127,000) | (869,000) |
General and administrative | (1,930,000) | (896,000) | (1,034,000) |
Impairment of goodwill | (1,517,000) | ||
Total operating costs and expenses | (6,450,000) | (4,667,000) | (3,972,000) |
Operating income (loss) | (3,552,000) | 17,000 | 1,395,000 |
Total assets | 36,735,000 | 46,205,000 | 45,569,000 |
Total assets | 36,735,000 | 46,205,000 | 45,569,000 |
Amortization and depreciation | 69,000 | 36,000 | 36,000 |
(Loss) gain from equity method investments | (311,000) | (230,000) | |
Sales of learning simulation software | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 12,979,000 | 11,576,000 | 11,522,000 |
Other operating income | 1,813,000 | 2,332,000 | 1,637,000 |
Operating costs and expenses: | |||
Cost of revenues | (6,920,000) | (6,071,000) | (5,175,000) |
Selling and marketing | (3,900,000) | (3,892,000) | (3,345,000) |
General and administrative | (1,389,000) | (1,316,000) | (2,031,000) |
Impairment of goodwill | 0 | 0 | 0 |
Total operating costs and expenses | (12,209,000) | (11,279,000) | (10,551,000) |
Operating income (loss) | 2,583,000 | 2,629,000 | 2,608,000 |
Total assets | 45,610,000 | 46,224,000 | 45,146,000 |
Total assets | 45,610,000 | 46,224,000 | 45,146,000 |
Amortization and depreciation | $ 1,715,000 | $ 1,784,000 | $ 1,753,000 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income | $ 21,254 | $ 11,626 | $ 14,935 |
- allocated to ordinary share - basic | 21,117 | 11,583 | 14,891 |
- allocated to nonvested share - basic | $ 137 | $ 43 | $ 44 |
Weighted average number of ordinary shares outstanding | 133,060,900 | 132,363,620 | 131,432,211 |
Weighted average number of nonvested share | 862,436 | 487,685 | 400,644 |
Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method | 214,781 | 265,850 | 1,370,400 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 134,138,117 | 133,117,155 | 133,203,255 |
Basic net income per share | $ 0.16 | $ 0.09 | $ 0.11 |
Basic net income per nonvested share | 0.16 | 0.09 | 0.11 |
Diluted net income per share | 0.16 | 0.09 | 0.11 |
Diluted net income per nonvested share | $ 0.16 | $ 0.09 | $ 0.11 |
Share Incentive Plan - Addition
Share Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2019 | Jan. 01, 2019 | Dec. 28, 2018 | Dec. 03, 2018 | Jan. 17, 2018 | Aug. 23, 2017 | Nov. 18, 2014 | Jul. 02, 2008 | Apr. 18, 2008 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | 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% | ||||||||||||
Dividends payable, amount per share | $ 0 | $ 0.1125 | $ 0.1125 | ||||||||||
Authorized reduction in exercise price of outstanding options | $ 0.1125 | ||||||||||||
Total intrinsic value of options exercised | $ 0 | $ 749 | $ 0 | ||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized | $ 0 | ||||||||||||
Nonvested shares granted | 955,168 | 468,600 | 125,000 | ||||||||||
Grant date fair value non vested share | $ 1.76 | $ 2.29 | $ 3.03 | ||||||||||
Share-based compensation expenses | $ 2,005 | $ 2,306 | $ 2,111 | ||||||||||
Employee Stock Option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 4 years | ||||||||||||
Contractual terms | 10 years | ||||||||||||
Share options granted to selected employees exercise, price | $ 1.81 | $ 3.32 | |||||||||||
Share-based compensation expenses | $ 143 | 1,231 | 1,216 | ||||||||||
Share Awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 2 years | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 1 year | ||||||||||||
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 Stock Awards | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Vesting period | 2 years | ||||||||||||
Nonvested shares granted | 291,968 | 160,000 | 353,200 | 150,000 | |||||||||
Grant date fair value non vested share | $ 1.71 | $ 1.68 | $ 1.76 | $ 1.92 | |||||||||
Total share base compensation | $ 768 | $ 627 | $ 287 | ||||||||||
Share-based compensation requisite service period | 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 | $ 750,000 | ||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 9 months 18 days | ||||||||||||
Share-based compensation expenses | $ 1,862 | $ 1,075 | $ 895 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - Employees - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 1,059,100 | 2,025,600 | 2,083,600 | |
Number of shares, Exercised | (895,148) | |||
Number of shares, Outstanding, Forfeited | (19,000) | (71,352) | (58,000) | |
Number of shares, Outstanding, Ending | 1,040,100 | 1,059,100 | 2,025,600 | 2,083,600 |
Weighted-average exercise price, Outstanding, Beginning | $ 1.39 | $ 2.85 | $ 2.86 | |
Weighted-average exercise price, Exercised | $ 0 | 1.66 | ||
Number of shares, Exercisable | 1,040,100 | |||
Weighted-average exercise price, Forfeited | $ 1.81 | 1.17 | 3.32 | |
Weighted-average exercise price, Outstanding, Ending | 1.39 | $ 1.39 | $ 2.85 | $ 2.86 |
Weighted-average exercise price: Expected to vest | $ 0 | |||
Aggregated intrinsic value, Outstanding, Beginning | $ 718 | $ 765 | ||
Weighted-average exercise price: Exercisable | $ 1.39 | |||
Weighted-average remaining contractual term (years), Outstanding | 4 years 6 months 25 days | 5 years 6 months 29 days | 6 years 6 months 10 days | 7 years 6 months 18 days |
Weighted-average remaining contractual term (years), Exercisable | 4 years 6 months 25 days | |||
Aggregated intrinsic value, Outstanding, Ending | $ 0 | $ 718 | $ 765 | |
Aggregated intrinsic value, Exercisable | $ 0 |
Share Options, Nonemployees (De
Share Options, Nonemployees (Detail) - Non Employee - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 0 | 57,000 | 57,000 | |
Number of shares, Exercised | (57,000) | |||
Number of shares, Outstanding, Ending | 0 | 0 | 57,000 | 57,000 |
Weighted-average exercise price, Outstanding, Beginning | $ 0 | $ 0 | $ 0 | |
Number of shares, Exercisable | 0 | 0 | ||
Weighted-average exercise price, Exercised | $ 0 | 0 | ||
Weighted-average exercise price, Outstanding, Ending | $ 0 | $ 0 | $ 0 | $ 0 |
Aggregated intrinsic value, Outstanding, Beginning | $ 96 | $ 184 | ||
Weighted-average exercise price: Exercisable | $ 0 | $ 0 | ||
Aggregated intrinsic value, Outstanding, Ending | $ 96 | $ 184 | ||
Weighted-average remaining contractual term (years), Outstanding | 6 months 18 days | 1 year 6 months 18 days |
Nonvested Shares Activities (De
Nonvested Shares Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested shares outstanding, Beginning balance | 450,497 | 328,390 | 463,983 | |
Granted | 955,168 | 468,600 | 125,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (678,881) | (346,493) | (260,593) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (19,944) | |||
Nonvested shares outstanding, Ending balance | 706,840 | 450,497 | 328,390 | |
Weighted average grant-date fair value, outstanding Beginning balance | $ 2.49 | $ 3.44 | $ 3.72 | |
Nonvested shares, Expected to vest | 706,840 | |||
Weighted average grant-date fair value, Granted | $ 1.76 | 2.29 | 3.03 | |
Weighted average grant-date fair value, Vested | 2.16 | 3.11 | 3.75 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 2.13 | |||
Weighted average grant-date fair value, outstanding Ending balance | 1.84 | $ 2.49 | $ 3.44 | |
Weighted average grant-date fair value, Expected to vest | $ 1.84 | |||
Aggregated intrinsic value, Nonvested shares outstanding | $ 965 | $ 933 | $ 551 | $ 1,498 |
Aggregated intrinsic value, Expected to vest | $ 965 |
Total Share-Based Compensation
Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 2,005 | $ 2,306 | $ 2,111 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 23 | 161 | 164 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 1,972 | 2,065 | 1,862 |
Selling Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 10 | $ 80 | $ 85 |
Cash Dividend - Additional Info
Cash Dividend - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Nov. 28, 2017 | Nov. 29, 2016 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 12, 2018 | Jan. 06, 2017 |
Cash dividend declared per ordinary share | $ 0.1125 | $ 0.1125 | |||||
Ordinary shares, Outstanding | 134,210,745 | 133,275,521 | 132,804,973 | 131,854,773 | |||
Dividends | $ 14,949 | $ 14,839 | $ 291 | $ 14,949 | $ 14,839 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) ¥ in Millions, $ in Millions | Jan. 31, 2020USD ($)shares | Jan. 31, 2020CNY (¥)shares | Dec. 31, 2019shares | Jan. 12, 2019shares | Jan. 01, 2019shares | Dec. 28, 2018shares | Dec. 03, 2018shares | Jan. 17, 2018 | Sep. 30, 2019shares | Sep. 30, 2018shares | Sep. 30, 2017shares |
Subsequent Event [Line Items] | |||||||||||
Nonvested shares granted | 955,168 | 468,600 | 125,000 | ||||||||
Non Vested Stock Awards | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Nonvested shares granted | 291,968 | 160,000 | 353,200 | 150,000 | |||||||
Vesting period | 2 years | ||||||||||
Subsequent Event | Non Vested Stock Awards | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Nonvested shares granted | 393,556 | 393,556 | 541,132 | ||||||||
Vesting period | 1 year | 1 year | 1 year | ||||||||
Subsequent Event | Professional Training Services Provider | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Percentage of equity interest acquired | 20.00% | 20.00% | |||||||||
Total consideration | $ 1,399 | ¥ 10 |
Schedule I - BALANCE SHEETS (De
Schedule I - BALANCE SHEETS (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 |
Current assets | |||
Cash and cash equivalents | $ 67,977 | $ 30,826 | |
Prepayment and other current assets | 26,732 | 17,054 | |
Amounts due from subsidiaries | 515 | ||
Total current assets | 168,689 | 127,876 | |
Non-current assets | |||
Long-term investments | 25,379 | 33,837 | |
Total non-current assets | 186,661 | 201,049 | |
Total assets | 355,350 | 328,925 | $ 224,551 |
Current liabilities | |||
Accrued expenses and other liabilities | 38,267 | 42,141 | |
Amounts due to subsidiaries | 600 | ||
Bank borrowings | 38,502 | 50,975 | |
Total current liabilities | 182,905 | 194,440 | |
Total liabilities | 231,604 | 219,160 | |
Shareholders' equity | |||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 133,275,521 and 134,210,745 shares issued and outstanding as of September 30, 2018 and 2019, respectively) | 13 | 13 | |
Additional paid-in capital | 24,507 | 21,557 | |
Accumulated other comprehensive loss | (12,357) | (7,013) | |
Retained earnings | 60,668 | 29,717 | |
Total equity | 72,831 | 44,274 | |
Total liabilities and equity | 355,350 | 328,925 | |
Parent Company | |||
Current assets | |||
Cash and cash equivalents | 1,383 | 2,223 | |
Prepayment and other current assets | 381 | 271 | |
Amounts due from subsidiaries | 8,474 | 8,669 | |
Total current assets | 10,238 | 11,163 | |
Non-current assets | |||
Long-term investments | 1,289 | 2,733 | |
Total non-current assets | 193,554 | 164,629 | |
Total assets | 203,792 | 175,792 | |
Current liabilities | |||
Accrued expenses and other liabilities | 989 | 1,144 | |
Amounts due to subsidiaries | 98,434 | 79,836 | |
Bank borrowings | 31,538 | 50,538 | |
Total current liabilities | 130,961 | 131,518 | |
Total liabilities | 130,961 | 131,518 | |
Shareholders' equity | |||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 133,275,521 and 134,210,745 shares issued and outstanding as of September 30, 2018 and 2019, respectively) | 13 | 13 | |
Additional paid-in capital | 24,507 | 21,557 | |
Accumulated other comprehensive loss | (12,357) | (7,013) | |
Retained earnings | 60,668 | 29,717 | |
Total equity | 72,831 | 44,274 | |
Total liabilities and equity | 203,792 | 175,792 | |
Parent Company | Investments In Subsidiaries And Equity Method Investees | |||
Non-current assets | |||
Investment in subsidiaries | $ 192,265 | $ 161,896 |
Schedule I - BALANCE SHEETS (Pa
Schedule I - BALANCE SHEETS (Parenthetical) (Detail) - $ / shares | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 12, 2018 | Jan. 06, 2017 | 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 | 134,210,745 | 133,275,521 | |||
Ordinary shares, Outstanding | 134,210,745 | 133,275,521 | 132,804,973 | 131,854,773 | |
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 | 134,210,745 | 133,275,521 | |||
Ordinary shares, Outstanding | 134,210,745 | 133,275,521 |
Schedule I - STATEMENTS OF OPER
Schedule I - STATEMENTS OF OPERATIONS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | $ (104,741) | $ (87,883) | $ (57,412) |
Selling expenses | (61,460) | (44,717) | (34,910) |
General and administrative expenses | (24,919) | (21,253) | (19,468) |
Operating income (loss) | 22,848 | 15,950 | 21,110 |
Equity in income of subsidiaries and variable interest entities | (1,484) | (172) | (153) |
Interest income | 2,207 | 2,522 | 1,531 |
Interest expense | (2,819) | (3,331) | (1,049) |
Exchange gain | 3,296 | 2,476 | 128 |
Net income attributable to China Distance Education Holdings Limited | 21,254 | 11,626 | 14,935 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | (23) | (161) | (164) |
Selling expenses | (10) | (80) | (85) |
General and administrative expenses | (3,100) | (2,887) | (3,250) |
Operating income (loss) | (3,133) | (3,128) | (3,499) |
Equity in income of subsidiaries and variable interest entities | 23,776 | 14,763 | 19,287 |
Interest income | 21 | 1 | 1 |
Interest expense | (2,261) | (2,110) | (1,362) |
Exchange gain | 2,851 | 2,100 | 508 |
Net income attributable to China Distance Education Holdings Limited | $ 21,254 | $ 11,626 | $ 14,935 |
Schedule I - STATEMENTS OF COMP
Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | $ 21,254 | $ 11,626 | $ 14,935 |
Other comprehensive loss Foreign currency translation adjustment | (8,854) | (8,118) | 264 |
Total comprehensive income | 15,910 | 7,980 | 14,986 |
Parent Company | |||
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | 21,254 | 11,626 | 14,935 |
Other comprehensive loss Foreign currency translation adjustment | (6,719) | (6,245) | (122) |
Total comprehensive income | $ 14,535 | $ 5,381 | $ 14,813 |
Schedule I - STATEMENT OF CHANG
Schedule I - STATEMENT OF CHANGES IN EQUITY (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, net of tax effect | $ 219 | $ 420 | $ 26 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Unrealized gain on available-for-sale securities, net of tax effect | $ 219 | $ 420 | $ 26 |
Schedule I - STATEMENTS OF CASH
Schedule I - STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net cash provided by operating activities | $ 81,795 | $ 50,094 | $ 37,731 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of available-for-sale investment | (1,071) | (3,400) | |
Net cash used in investing activity | (25,058) | (55,497) | (45,468) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from share options exercised by employees | 1,489 | ||
Loan to optionees in connection with exercise of options | (1,557) | ||
Repayment of loan to optionees in connection with exercise of options | 135 | 193 | 199 |
Capital contribution from noncontrolling interests | 29 | 89 | 12,236 |
Loan repayments | 24,092 | 22,190 | 15,550 |
Dividends paid to shareholders | (14,949) | (14,839) | |
Net cash provided by (used in) financing activities | (24,219) | (3,302) | 33,295 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 23,773 | (12,819) | 26,157 |
Cash and cash equivalents and restricted cash at beginning of the year | 82,562 | 95,381 | 69,224 |
Cash and cash equivalents and restricted cash at end of the year | 106,335 | 82,562 | 95,381 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net cash provided by operating activities | 18,025 | (9,575) | 4,383 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of available-for-sale investment | (911) | ||
Net cash used in investing activity | (911) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from share options exercised by employees | 1,489 | ||
Loan to optionees in connection with exercise of options | (1,558) | ||
Repayment of loan to optionees in connection with exercise of options | 135 | 193 | 199 |
Capital contribution from noncontrolling interests | 29 | 1,090 | |
New short-term loans drawn down | 20,573 | 14,414 | |
Loan repayments | (19,000) | ||
Dividends paid to shareholders | (14,949) | (14,839) | |
Net cash provided by (used in) financing activities | (18,865) | 5,777 | 864 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (840) | (3,798) | 4,336 |
Cash and cash equivalents and restricted cash at beginning of the year | 2,223 | 6,021 | 1,685 |
Cash and cash equivalents and restricted cash at end of the year | $ 1,383 | $ 2,223 | $ 6,021 |
Schedule I - Basis of Preparati
Schedule I - Basis of Preparation (Detail) | Sep. 30, 2019 |
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, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ (1,484) | $ (172) | $ (153) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ 23,776 | $ 14,763 | $ 19,287 |