Cover
Cover | 12 Months Ended |
Sep. 30, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Annual Report | true |
Document Shell Company Report | false |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | China Distance Education Holdings Limited |
Entity Central Index Key | 0001438644 |
Current Fiscal Year End Date | --09-30 |
Entity File Number | 001-34122 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | c/o 18th Floor, Xueyuan International Tower |
Entity Address, City or Town | Haidian District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100083 |
Entity Common Stock, Shares Outstanding | 135,320,433 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Title of 12(b) Security | American Depositary Shares, each representing four ordinary shares, par value $0.0001 per share |
Trading Symbol | DL |
Security Exchange Name | NYSE |
Entity Interactive Data Current | Yes |
Document Transition Report | false |
ICFR Auditor Attestation Flag | true |
Document Registration Statement | false |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Document Information [Line Items] | |
Entity Address, Address Line One | c/o 18th Floor, Xueyuan International Tower |
Entity Address, City or Town | Haidian District |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 100083 |
Contact Personnel Name | Mr. Zhengdong Zhu |
City Area Code | +86 |
Local Phone Number | 10-8231-9999 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 80,056 | $ 67,977 |
Term deposits | 13,440 | |
Restricted cash - current | 4,212 | 38,358 |
Short-term investments | 20,343 | 22,118 |
Accounts receivable, net of allowance for doubtful accounts of US$1,282 and US$1,864 as of September 30, 2019 and 2020, respectively | 6,154 | 7,330 |
Inventories | 4,863 | 4,232 |
Prepayment and other current assets | 31,315 | 26,732 |
Amounts due from related parties | 3,074 | 515 |
Deferred costs | 1,657 | 1,427 |
Total current assets | 165,114 | 168,689 |
Non-current assets | ||
Restricted cash – non-current | 16,849 | |
Property, plant and equipment, net | 42,331 | 37,935 |
Operating lease right-of-use assets | 30,029 | |
Goodwill, net | 78,966 | 74,829 |
Other intangible assets, net | 23,161 | 30,113 |
Deposit for purchases of non-current assets | 2,186 | 4,448 |
Long-term investments | 26,324 | 25,379 |
Deferred tax assets | 5,690 | 3,865 |
Other non-current assets | 7,489 | 10,092 |
Total non-current assets | 233,025 | 186,661 |
Total assets | 398,139 | 355,350 |
Current liabilities | ||
Bank borrowings | 4,012 | 38,502 |
Accrued expenses and other liabilities (including accrued expenses and other liabilities of the consolidated variable interest entities or VIEs without recourse to China Distance Education Holdings Limited of US$35,491 and US$49,232 as of September 30, 2019 and 2020, respectively) | 55,454 | 38,267 |
Amounts due to related parties | 802 | 600 |
Income tax payable (including income tax payable of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$8,188 and US$14,451 as of September 30, 2019 and 2020, respectively) | 17,378 | 10,899 |
Deferred revenue – current (including deferred revenue – current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$93,364 and US$104,929 as of September 30, 2019 and 2020, respectively) | 105,953 | 94,202 |
Operating lease liabilities, current (including operating lease liabilities, current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of nil and US$3,835 as of September 30, 2019 and 2020, respectively) | 4,160 | |
Refundable fees – current (including refundable fees – current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$435 and US$1,729 as of September 30, 2019 and 2020, respectively) | 1,729 | 435 |
Total current liabilities | 189,488 | 182,905 |
Non-current liabilities | ||
Deferred revenue – non-current (including deferred revenue – non-current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$33,564 and US$33,928 as of September 30, 2019 and 2020, respectively) | 33,928 | 33,564 |
Refundable fees – non-current (including refundable fees– non-current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of US$2,440 and US$2,602 as of September 30, 2019 and 2020, respectively) | 2,602 | 2,440 |
Deferred tax liabilities | 6,088 | 12,695 |
Long-term bank borrowing | 16,000 | |
Operating lease liabilities, non-current (including operating lease liabilities, non-current of the consolidated VIEs without recourse to China Distance Education Holdings Limited of nil and US$22,749 as of September 30, 2019 and 2020, respectively) | 23,089 | |
Total non-current liabilities | 81,707 | 48,699 |
Total liabilities | 271,195 | 231,604 |
Commitments and contingencies (Note 22) | ||
Equity | ||
Ordinary shares (par value of US$0.0001 per share; 500,000,000 shares authorized; 134,210,745 and 135,320,433 shares issued and outstanding as of September 30, 2019 and 2020, respectively) | 14 | 13 |
Additional paid-in capital | 27,316 | 24,507 |
Accumulated other comprehensive loss | (832) | (12,357) |
Retained earnings | 51,477 | 60,668 |
Total China Distance Education Holdings Limited shareholder's equity | 77,975 | 72,831 |
Noncontrolling interests | 48,969 | 50,915 |
Total equity | 126,944 | 123,746 |
Total liabilities and equity | $ 398,139 | $ 355,350 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Accounts receivable, net of allowance for doubtful accounts | $ 1,864 | $ 1,282 |
Accrued expenses and other liabilities | 55,454 | 38,267 |
Income tax payable | 17,378 | 10,899 |
Deferred revenue | 105,953 | 94,202 |
Operating lease liabilities, current | 4,160 | |
Deferred revenue – non-current | 33,928 | 33,564 |
Refundable fees – non-current | 2,602 | $ 2,440 |
Operating lease liabilities – non-current | $ 23,089 | |
Ordinary shares, par value | $ 0.0001 | $ 0.0001 |
Ordinary shares, Authorized | 500,000,000 | 500,000,000 |
Ordinary shares, Issued | 135,320,433 | 134,210,745 |
Ordinary shares, Outstanding | 135,320,433 | 134,210,745 |
Variable Interest Entity, Primary Beneficiary | ||
Accrued expenses and other liabilities | $ 49,232 | $ 35,491 |
Income tax payable | 14,451 | 8,188 |
Deferred revenue | 104,929 | 93,364 |
Refundable fees – current portion | 1,729 | 435 |
Operating lease liabilities, current | 3,835 | 0 |
Deferred revenue – non-current | 33,928 | 33,564 |
Refundable fees – non-current | 2,602 | 2,440 |
Operating lease liabilities – non-current | $ 22,749 | $ 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Sales, net of value-added tax and related surcharges | |||
Total net revenues | $ 209,558 | $ 211,822 | $ 166,668 |
Cost of sales | |||
Total cost of sales | (101,598) | (104,741) | (87,883) |
Gross profit | 107,960 | 107,081 | 78,785 |
Operating expenses | |||
Selling expenses | (69,848) | (61,460) | (44,717) |
General and administrative expenses | (25,478) | (24,919) | (21,253) |
Impairment of goodwill | (1,517) | ||
Total operating expenses | (95,326) | (87,896) | (65,970) |
Change in fair value in connection with business combination | 695 | 84 | |
Other operating income | 6,155 | 2,968 | 3,051 |
Operating income (loss) | 18,789 | 22,848 | 15,950 |
Interest income | 2,555 | 2,207 | 2,522 |
Interest expenses | (1,021) | (2,819) | (3,331) |
Gain from deconsolidation of a subsidiary | 6,869 | ||
Impairment loss from long-term investments | (910) | (6,920) | (2,835) |
Other income | 318 | ||
Exchange gain (loss) | (5,261) | 3,296 | 2,476 |
Income before income taxes and loss from equity method investments | 14,152 | 25,799 | 14,782 |
Income tax expenses | (5,460) | (8,121) | (2,307) |
Loss from equity method investments | (555) | (1,484) | (172) |
Net income | 8,137 | 16,194 | 12,303 |
Less: Net income (loss) attributable to noncontrolling interests | (2,293) | (5,060) | 677 |
Net income attributable to China Distance Education Holdings Limited | $ 10,430 | $ 21,254 | $ 11,626 |
Net income attributable to ordinary shareholders | |||
Basic | $ 0.08 | $ 0.16 | $ 0.09 |
Diluted | $ 0.08 | $ 0.16 | $ 0.09 |
Weighted average shares used in calculating net income per share | |||
Basic | 133,984,929 | 133,060,900 | 132,363,620 |
Diluted | 135,232,224 | 134,138,117 | 133,117,155 |
Service [Member] | |||
Sales, net of value-added tax and related surcharges | |||
Total net revenues | $ 159,338 | $ 145,917 | $ 117,026 |
Cost of sales | |||
Total cost of sales | (81,976) | (85,252) | (78,936) |
Product [Member] | |||
Sales, net of value-added tax and related surcharges | |||
Total net revenues | 22,061 | 27,372 | 10,213 |
Cost of sales | |||
Total cost of sales | (19,622) | (19,489) | (8,947) |
Others [Member] | |||
Sales, net of value-added tax and related surcharges | |||
Total net revenues | $ 28,159 | $ 38,533 | $ 39,429 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net income | $ 8,137 | $ 16,194 | $ 12,303 |
Foreign currency translation adjustments | 13,733 | (8,854) | (8,118) |
Unrealized gain on available-for-sale investments, net of tax effect of US$420, US$219 and US$79 for the years ended September 30, 2018, 2019 and 2020, respectively | 318 | 1,375 | 2,599 |
Comprehensive income | 22,188 | 8,715 | 6,784 |
Less: comprehensive (loss) income attributable to noncontrolling interests | 233 | (7,195) | (1,196) |
Comprehensive income attributable to China Distance Education Holdings Limited | $ 21,955 | $ 15,910 | $ 7,980 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized gain on available-for-sale investments, net of tax effect | $ 79 | $ 219 | $ 420 |
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, 2017 | 131,854,773 | ||||||
Beginning 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 | ||||
Share-based compensation expense (in shares) (Note 26) | 468,600 | ||||||
Share-based compensation expenses (Note 26) | 2,306 | 2,306 | 2,306 | ||||
Dividends to shareholders (Note 27) | (14,949) | (14,949) | (14,949) | ||||
Capital contribution from noncontrolling interests | 89 | 29 | 29 | 60 | |||
Noncontrolling interest arising from acquisitions | 42,598 | 42,598 | |||||
Loan to optionees in connection with exercise of options | (1,557) | (1,557) | (1,557) | ||||
Unrealized gain on available-for-sale investments, net of tax effect | 2,599 | 2,599 | 2,599 | ||||
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 | ||||||
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) | |||
Share-based compensation expense (in shares) (Note 26) | 935,224 | ||||||
Share-based compensation expenses (Note 26) | 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 | 0 | 0 | 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 | 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 |
Net income (loss) for the year | 8,137 | 10,430 | 10,430 | (2,293) | |||
Foreign currency translation adjustments | 13,733 | 11,207 | 11,207 | 2,526 | |||
Share-based compensation expense (in shares) (Note 26) | 1,109,688 | ||||||
Share-based compensation expenses (Note 26) | 2,618 | $ 1 | 2,617 | 2,618 | |||
Dividends to shareholders (Note 27) | (19,621) | (19,621) | (19,621) | ||||
Dividends paid by a subsidiary to its noncontrolling interests shareholders (Note 26) | (2,546) | (2,546) | |||||
Capital contribution from noncontrolling interests | 367 | 367 | |||||
Unrealized gain on available-for-sale investments, net of tax effect | 318 | 318 | 318 | ||||
Repayment of loan to optionees in connection with exercise of options | $ 192 | 192 | 192 | ||||
Ending Balance (in shares) at Sep. 30, 2020 | 135,320,433 | 135,320,433 | |||||
Ending Balance at Sep. 30, 2020 | $ 126,944 | $ 14 | $ 27,316 | $ (832) | $ 51,477 | $ 77,975 | $ 48,969 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unrealized gain on available-for-sale securities, net of tax effect | $ 79 | $ 219 | $ 420 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 8,137 | $ 16,194 | $ 12,303 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation | 2,618 | 2,005 | 2,306 |
Depreciation of property, plant and equipment | 4,649 | 3,958 | 3,069 |
Amortization of other intangible assets | 8,566 | 8,765 | 3,230 |
Non-cash operating lease cost | 4,716 | ||
Provision of inventories | 1,069 | 1,090 | 15 |
Change in allowance for doubtful accounts | 499 | (8) | 199 |
Impairment loss on goodwill | 1,517 | ||
Losses on disposition of property, plant and equipment | 354 | 344 | 21 |
Loss from equity method investments | 555 | 1,484 | 172 |
Impairment loss from long-term investments | 910 | 6,920 | 2,835 |
Gain from disposal of an investment | (318) | ||
Change in fair value in connection with a business combination | (695) | (84) | |
Gain from deconsolidation of a subsidiary | (6,869) | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,012 | (631) | (1,921) |
Inventories | (1,467) | (2,712) | (1,769) |
Prepayments and other current assets | (6,926) | (7,568) | (2,710) |
Amounts due from related parties | (2,453) | (535) | 7 |
Deferred costs | (151) | (359) | (458) |
Operating lease right-of-use assets | 3,389 | ||
Deferred tax assets | (1,571) | 1,154 | (3,050) |
Other non-current assets | 3,038 | (1,306) | (1,328) |
Accrued expenses and other liabilities | 15,435 | (179) | 357 |
Amounts due to related parties | 165 | 623 | |
Income tax payable | 6,456 | 1,112 | 582 |
Deferred revenue | 5,210 | 68,368 | 23,243 |
Operating lease liabilities | (7,384) | ||
Refundable fees | 1,264 | (10,836) | 13,444 |
Deferred tax liabilities | (7,129) | 277 | (369) |
Net cash provided by operating activities | 40,961 | 81,795 | 50,094 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of businesses, net of cash acquired of US$565, nil and nil as of September 30, 2018, 2019 and 2020, respectively | (15,488) | ||
Disposal of a consolidated subsidiary, net of cash disposed of nil, US$4,787 and nil as of September 30, 2018, 2019 and 2020, respectively | (2,769) | ||
Purchase of term deposits | (25,158) | ||
Maturity of term deposits | 12,133 | ||
Purchase of short-term investments | (5,500) | (20,660) | (21,905) |
Maturity of short-term investments | 8,350 | 14,714 | 28,211 |
Acquisition of property, plant and equipment | (4,417) | (9,601) | (15,462) |
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 equity securities without readily determinable fair value | 762 | 3,589 | |
Acquisition of other intangible assets | (290) | (663) | (736) |
Payment of deposit for the acquisition of non-current assets | (488) | (2,744) | (8,359) |
Payment of deposit for the purchase of investments | (218) | ||
Purchase of equity method investments | (114) | (87) | (2,600) |
Purchase of equity securities without readily determinable fair value | (1,427) | (18,136) | |
Purchase of available-for-sale investments | (1,071) | ||
Net cash used in investing activities | (16,149) | (25,058) | (55,497) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Capital contribution from noncontrolling interests | 367 | 29 | 89 |
Loan repayments | (38,646) | (24,092) | (22,190) |
Bank borrowings | 35,300 | ||
Short-term loan acquired from a related party | 20,000 | ||
Repayment of short-term loan to a related party | (1,677) | ||
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 | 192 | 135 | 193 |
Dividends paid to shareholders | (19,621) | (14,949) | |
Dividends paid by a subsidiary to its noncontrolling interests shareholders | (2,546) | (291) | |
Net cash used in financing activities | (40,254) | (24,219) | (3,302) |
Exchange rate effect on cash and cash equivalents and restricted cash | 10,224 | (8,745) | (4,114) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (5,218) | 23,773 | (12,819) |
Cash and cash equivalents and restricted cash at beginning of the year | 106,335 | 82,562 | 95,381 |
Cash and cash equivalents and restricted cash at end of the year | 101,117 | 106,335 | 82,562 |
Supplemental schedule of cash flow information | |||
Income tax paid | (6,922) | (5,898) | (5,942) |
Supplemental schedule of non-cash activities | |||
Acquisition of property, plant and equipment and other intangible assets through utilization of deposits | 2,909 | 6,238 | 474 |
Income tax reversal | $ 627 | $ 79 | $ 299 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Cash Flows [Abstract] | |||
Cash acquired | $ 0 | $ 0 | $ 565 |
Cash divested from deconsolidation | $ 0 | $ 4,787 | $ 0 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Sep. 30, 2020 | |
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 the 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, 2020, details of the Company’s major subsidiaries, its VIEs and VIEs’ major subsidiaries were as follows: Company name Later of date of acquisition Place of incorporation /operation Percentage of Principal activities Major Subsidiaries: China Distance Education Limited (“CDEL March 13, 2003 Hong Kong 100% Investment holding and provision of education services Beijing Champion Distance Education January 5, 2004 PRC 100% Provision of technical support and consultancy services and course production Beijing Champion Education Technology Co., April 23, 2007 PRC 100% Software licensing and course production Beijing Zhengbao Yucai Education February 19, 2009 PRC 35.76% (Note Provision of start-up training services Xiamen NetinNet Software Co., Ltd (“Xiamen NetinNet”) May 3, 2016 PRC 28.608%* Provision of learning simulation software production Variable interest entities: Beijing Champion Hi-Tech Co., Ltd. (“Beijing Champion”) July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Beijing Champion Healthcare Education May 13, 2015 PRC Nil Inactive Major subsidiaries of variable interest : Beijing Caikaowang Company Ltd. November 28, 2007 PRC Nil Provision of online education services Beijing Champion Wangge Education June 24, 2008 PRC Nil Provision of online education services Beijing Champion Culture Development Co., Ltd. (“Champion Culture”) June 03, 2015 PRC Nil Provision of 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 Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) 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 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 *Note: The entity is the subsidiary of Zhengbao Yucai. 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 the 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 the PRC the PRC Power of attorney Pursuant to the power of attorney, the nominee shareholders of Beijing Champion each executed an irrevocable power of attorney assigning Champion Technology or any person designated by Champion Technology as their attorney-in-fact to vote on their behalf on all matters of Beijing Champion requiring shareholder approval under the PRC 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 Beijing Zhongxi Champion Healthcare Education Technology Co., Ltd. (“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, the chairman and the Chief Executive Officer (the “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 • Risks in relation to the 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 the 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, 2019 and 2020, the VIEs and their subsidiaries accounted for an aggregate of 57% and 68%, respectively, of the Group’s consolidated total assets, and 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 the Company. The following financial information of the Company’s VIEs and the VIEs’ subsidiaries as of September 30, 2019 and 2020 and for each of the three years ended September 30, 2020 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within the VIEs and the VIEs’ subsidiaries: As of September 30, 2019 2020 US$ US$ Cash and cash equivalents 39,919 67,257 Prepayment and other current assets 24,533 28,334 Total current assets 192,471 113,040 Total assets 314,943 271,168 Deferred revenue – current 93,364 104,929 Total current liabilities 137,478 174,978 Deferred revenue – non-current 33,564 33,928 Total non-current liabilities 36,004 64,007 Total liabilities 173,483 238,985 For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net revenues 151,146 183,893 197,110 Net income 29,532 36,393 33,439 Net cash provided by operating activities 44,054 41,568 29,294 Net cash used in investing activities (44,414 ) (20,517 ) (3,127 ) Net cash used in financing activities (5,706 ) — (1,713 ) Effects of exchange rate changes (555 ) (1,609 ) 2,884 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, 2020 | |
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 the 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 the VIEs, income tax, impairment of goodwill and long-term assets, impairment of long-term investments, change in fair value of contingent consideration, change in fair value of a long-term investment, 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 the VIEs’ subsidiaries. All profits, transactions and balances among the Company, its subsidiaries, its VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. Foreign currency translation and transactions The Company’s functional currencies are the United States dollars (“US$”). The Company’s PRC subsidiaries, the VIEs and the VIEs’ subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”). The Company uses the US$ 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, the VIEs, and the 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 the 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, 2019 and 2020 represented cash pledged as security for bank borrowings. Refer to Note 15. Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three Short-term investments Short-term investments consist of held-to-maturity investments with a maturity of less than one year. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. In addition, short-term investments also comprise of financial products with early redemption option and no specified maturity dates, which are classified as available-for-sale investments. 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 statements of operations. 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, amounts due to related parties and accounts payable. Available-for-sale investments and cash and cash equivalents are carried at fair value. The carrying amounts of restricted cash, accounts receivable, amounts due from related parties, short-term held-to-maturity investments, bank borrowings, amounts due to related parties and accounts payable approximate their fair values due to the short-term maturities of these instruments. The Group carries equity securities without readily determinable fair values under long-term investments at cost, less impairment, plus or minus observable price changes in a similar transaction. Long-term bank borrowing is carried at amortized cost. The fair value is based on the contractual cash flows discounted using rates currently offered for borrowing with similar terms. Refer to Note 15 for further details. 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 expenses 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 goodwill impairment test. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. For the years ended September 30, 2019 and 2020, the Group performed its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Group recorded , US$ , and impairment loss related to goodwill for the years ended September 30, 2018, 2019 and 2020, respectively. 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 3~5.5 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, 2018, 2019 and 2020. 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 investments. (a) Equity securities without readily determinable fair values On October 1, 2018, the Group adopted Accounting Standards Update (“ASU”) No. 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and 2018-03 Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Group adopted this ASU using a modified retrospective method. Prior to the fiscal year 2019, for investee companies over which the Group does not have significant influence or a controlling interest, equity securities of privately held companies were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. With the adoption of ASU 2016-01, the Group elected a practicability exception to fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with fair value change recorded in the consolidated statements of operations. 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: Fair Value Measurement (ASC 820). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations. The Group recorded , US$ and of impairment losses on its equity securities without readily determinable fair value during the years ended September 30, 2018, 2019 and 2020, respectively. (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 estimates 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$ , US$ , and US$ impairment loss on its equity method investments during the years ended September 30, 2018, 2019 and 2020, respectively. (c) Available-for-sale securities investments For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive loss. 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 US$2,492, nil, and nil impairment loss on its available-for-sale investments during the years ended September 30, 2018, 2019 and 2020, respectively. Revenue recognition On October 1, 2018, the Group adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of October 1, 2018. Results for the years ended September 30, 2019 and 2020 are presented under Topic 606, while revenues for the year ended September 30, 2018 are not adjusted and continue to be reported under ASC Topic 605, Revenue Recognition (“Topic 605”). Revenues are recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group generates substantially all of its revenues in the PRC. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenues are reported net of value added tax and surcharges. Disaggregation of net revenues for the year ended September 30, 2020 Over-time A point-in-time Total US$ US$ US$ Online education services 158,548 790 159,338 Books and reference materials — 22,061 22,061 Other professional education services 7,352 9,084 16,436 Professional education services 165,900 31,935 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 165,900 43,658 209,558 Refundable Non-refundable Total US$ US$ US$ Online education services 37,357 121,981 159,338 Books and reference materials — 22,061 22,061 Other professional education services — 16,436 16,436 Professional education services 37,357 160,478 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 37,357 172,201 209,558 Disaggregation of net revenues for the year ended September 30, 2019 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 training services are presented as “others” on the consolidated statements of operations. The Group capitalizes sales commission paid to sales personnel and student recruitment agencies as cost of obtaining a contract when those costs are incremental to obtain a contract and if the Group expects to recover those costs. Contract costs are amortized in the same manner as the revenues recognized. As of September 30, 2020, the balances of capitalized cost of obtaining contracts with customers amounted to US$8,440 and US$3,043 were recorded in “prepayment and other current assets” and “other non-current assets”, respectively. As of September 30, 2019, the respective balances amounted to US$4,974 and US$3,251, respectively. The Group recognized amortization of contract cost amounting to US$6,166 and US$10,974 in “selling expenses” in its consolidated statements of operations during the years ended September 30, 2019 and 2020, respectively. The Group did not record any impairment of contract cost for the years ended September 30, 2019 and 2020. The Group’s contract liabilities mainly consist of prepayments from students (deferred revenue), with a balance of US$80,560 and US as of October 1, 2018 and 2019, respectively, of which US$62,363 and US were recognized in revenues for the years ended September 30, 2019 and 2020, respectively. The balances of US$127,766 and US as of September 30, 2019 and 2020 are expected to be recognized as follows: The expected balances of deferred revenue as of September 30, 2020: US$ Years ending September 30, 2021 105,953 2022 27,003 2023 6,379 2024 470 2025 76 139,881 The expected balances of deferred revenue as of September 30, 2019: US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 Refund liabilities mainly related to the estimated refunds that are expected to be paid to eligible students and recorded as refundable fees on the consolidated balance sheets. Refund liability estimates are based on historical refund ratio (i.e. passage rate) on a portfolio basis using the expected value method. As of September 30, 2019 and 2020, refundable fees amounted to US $ and US$ , respectively. Online education services The primary sources of the Group’s revenues and recognition policies are as follows: The online education services provided by the Group to its customers are integrated services, 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 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 course model and refundable course model. The online courses using the non-refundable course model are mainly comprised of regular classes and premium classes. In addition, the non-refundable course model also includes insured elite classes, which are refundable to the students through a third party insurance company. The revenues for the regular classes are recognized on a straight-line basis over the subscription period from the month in which the customers enroll in the courses to the month in which the subscribed courses terminate. For premium classes, if participants fail to pass the course examination and certain pre-agreed conditions are met, the participants can retake the same premium course for free for the following year or years. For the insured elite classes, if the course participants fails to pass the course examination and certain pre-agreed conditions are met, the participants can retake the same premium course for free for the following year or years, and enjoy the refund privilege covered by an independent insurance company. Under Topic 605, the Group recognized the discount offered for the retake course proportionally as a deduction to revenues recognized for each of the class that the participants take. Upon the adoption of Topic 606, the Group recognizes the revenues related to the premium and insured elite classes over the expected service period based on the estimated historical passage rates on a portfolio basis. 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 period after the professional examinations scores are released in order to be eligible for the refund or the right to retake the course. Under Topic 605, the proceeds from the refundable course model were initially recorded as refundable fees in the Company’s consolidated balance sheet and were recognized upon the expiration of the participants’ right to receive a refund or ratably over the retake course period when the participants decide to retake the course before the expiration of such right. Upon the adoption of Topic 606, the Group estimates the variable consideration to be earned based on historical refund ratio on a portfolio basis using the expected value method and records a refund liability based on estimated refunds to be paid to eligible students. The Group further recognizes revenues over the expected service period based on the estimated historical passage rates on a portfolio basis. 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 prepaid study cards at a discount to the face value of the cards to its regional distributors. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the online courses are 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 study cards during a specified period of time, generally, one year. Under Topic 605, the Group deferred the portion of revenues of the prepaid study card based on the maximum potential amount of discount provided to the distributors. Revenues were recognized during the remaining period the online courses were available to the users who enroll using the prepaid study cards or were recognized immediately if the related online course had been completed or the prepaid study cards 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 revenues 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 value added tax and related surcharges. The Group records revenues net of these taxes in the consolidated statements of operations. Such value added tax related surcharges for the years ended September 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 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, of 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 training services, the tuition fees of the training participants are subsidized by the government. Qualified enrollments and the fees to be earned cannot be determined until the confirmation from government authorities regarding the number of students and fees is received by the Company, which is after the completion of services. Therefore, revenues from such services are recognized upon the receipt of confirmations from government authorities, when all the other revenues recognition criteria have been met. Revenues from offline training sponsored by government authorities were insignificant during the years ended Septembe |
BUSINESS ACQUISITIONS
BUSINESS ACQUISITIONS | 12 Months Ended |
Sep. 30, 2020 | |
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 ended September 30, 2018 with the assumption that the acquisition during the year ended September 30, 2018 occurred as of October 1, 2016. Year September 30, 2018 US$ Pro forma net revenues 2,581 Pro forma net loss attributable to the Company (561 ) Pro forma net income per ordinary share-basic 0.09 Pro forma net income per ordinary share-diluted 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 as the Group determined that the preferred shares were not in-substance common shares due to certain liquidation preferences over ordinary shares. The investment agreement between the Group and Beijing Ruida included a call option and contingent consideration. The call option allowed the Group to further increase its equity interest in Beijing Ruida up to 60% before April 2019 under certain pre-agreed conditions and was initially recorded at fair value at the investment acquisition date and carried at cost less impairment. The contingent consideration payable was recorded at fair value and was subsequently remeasured to fair value at each reporting period thereafter until it was settled by the Group in July 2018, resulting in an additional payment of RMB46.0 million (US$7,098) to Beijing Ruida. On July 10, 2018, the Group exercised a portion of its call option to purchase an additional 11% equity interest in Beijing Ruida for cash consideration of RMB39.6 million (US$5,931) and contingent consideration payable depending on Beijing Ruida’s calendar year 2018 operating results. The contingent consideration was valued on the acquisition date at RMB12.0 million (US$1,746) by the management with the assistance from an independent appraiser and was subsequently measured at fair value as of September 30, 2018. A gain of US$676 in relation to the 11% call option’s fair value change between the acquisition date and September 30, 2018 was recorded in the Company’s consolidated statements of operations. The acquisition of Beijing Ruida further strengthens the Group’s legal education vertical by adding a leading Legal Professional Qualification Examination preparation business to its current portfolio of professional education services. The additional 11% equity interest purchase was accounted for as a step acquisition whereby the Group remeasured the fair value of its previously held equity interests in Beijing Ruida on July 10, 2018, the step acquisition date. The fair value of the equity interest in Beijing Ruida held by the Group immediately before the step acquisition date amounted to RMB225.3 million (US$32,800), resulting in a loss at US$590 related to the remeasurement of the 40% previously held equity interest. Such loss was recorded in change in fair value in the Group’s consolidated statements of operations. Following the completion of the transaction, the Group held a total of 51% equity interest in Beijing Ruida, and Beijing Ruida became a consolidated subsidiary of the Group. The acquisition was recorded using the acquisition method of accounting. Accordingly, the acquired assets and liabilities were recorded at their fair value at the date of acquisition. The acquisition-date fair value of the equity interest held by the Group immediately prior to the acquisition date was measured at fair value using a discounted cash flow method and taking into account certain factors including the management projection of discounted future cash flow and an appropriate discount rate. The management performed a purchase price allocation with the assistance from an independent appraiser as of the date of acquisition: US$ Amortization Cash 1,639 Other current assets 9,578 Property, plant and equipment 118 5 years Intangible assets Supplier contracts 25,118 5.5 years Trademark 2,741 3 years Courseware 4,478 3.5 years Software 344 5.3 years Others 210 2.5-5.5 years Goodwill 48,931 Other current liabilities (684 ) Deferred tax liabilities (8,115 ) Noncontrolling interest (41,336 ) Total 43,022 The following summarized the unaudited pro forma result of operations for the year ended September 30, 2018 with the assumption that the acquisition during the year ended September 30, 2018 occurred as of October 1, 2016. The pro forma results have been prepared for comparative purpose only and do not purport to be indicative of the results of operations which would have resulted had the significant acquisition occurred as of October 1, 2016, nor are they indicative of future operating results. Year ended September 30, 2018 US$ Pro forma net revenues 27,568 Pro forma net income attributable to the Company 14 Pro forma net income per ordinary share-basic 0.09 Pro forma net income per ordinary share-diluted 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 RMB12.0 million (US$1,746) to RMB7.2 million (US$1,048) and was further paid in May 2019. The change in fair value in the contingent consideration payable was recorded as fair value change in connection with business combination in the Company’s consolidated statements of operations. On May 15, 2019, the Group exercised the remaining portion of its call option and acquired the additional 9% equity interest of Beijing Ruida for a total consideration of RMB38.3 million (US$5,580). The total consideration was paid on May 26, 2019 and the transaction was accounted for as an equity transaction. As a result, the noncontrolling interest over Beijing Ruida decreased from 49% to 40%. |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2020 | |
SHORT-TERM INVESTMENTS | 4. SHORT-TERM INVESTMENTS Short-term investments consist of both held-to-maturity and available-for-sale investments. Fixed-income financial products purchased from banks in China are classified as held-to-maturity investments as the Group has the positive intent and ability to hold the investments to maturity. The maturity of the financial product is days, with interest rate of % OTTI loss was recognized for the years ended September 30, 2019 and 2020. Short-term investments consisted of the following: As of September 30, 2019 2020 US$ US$ Held-to-maturity investments 1,517 — Available-for-sale investments 20,601 20,343 22,118 20,343 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2020 | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Accounts receivable 8,612 8,018 Less: allowance for doubtful accounts (1,282 ) (1,864 ) Accounts receivable, net 7,330 6,154 Movement of allowance for doubtful accounts was as follows: As of September 30, 2019 2020 US$ US$ Balance at beginning of the year 1,342 1,282 (Reversal) provision of the allowance for doubtful accounts (8 ) 499 Foreign currency adjustment (52 ) 83 Balance at end of the year 1,282 1,864 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2020 | |
INVENTORIES | 6. INVENTORIES Inventories consisted of the following: As of 2019 2020 US$ US$ Books and other goods 3,727 3,482 Paper and other raw materials 1,035 1,671 Less: inventory provisions for slow-moving and obsolescence (530 ) (290 ) Total 4,232 4,863 Inventory provisions were |
PREPAYMENT AND OTHER CURRENT AS
PREPAYMENT AND OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
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 2019 2020 US$ US$ Prepaid expenses 8,974 6,557 Capitalized commission fees (1 ) 4,974 8,440 Advance to suppliers (2 ) 3,938 4,799 Funds receivable (3 ) 2,364 4,349 Staff advances (4 ) 1,591 1,480 Receivable from disposal of a subsidiary (5 ) 1,540 1,621 Others 3,351 4,069 Prepayment and other current assets, net 26,732 31,315 (1) Capitalized commission fees primarily consist of the incremental sales commission relating to obtaining the customer contracts 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. As of September 30, 2020, the Group has not experienced any loss of advance 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 accounts or credit cards, 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 as of September 30, 2019 and 2020 was received on January 8, 2020 and January 8, 2021, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2020 | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Buildings 8,756 9,216 Electronic and office equipment 20,069 20,107 Leasehold improvement and building improvement 10,843 15,935 Motor vehicles 2,086 2,294 Total 41,754 47,552 Less: Accumulated depreciation (17,454 ) (19,904 ) Construction in progress 13,635 14,683 37,935 42,331 Depreciation expenses were US$3,069, US$3,958 and US$4,649 for the years ended September 30, 2018, 2019 and 2020, respectively. |
GOODWILL, NET
GOODWILL, NET | 12 Months Ended |
Sep. 30, 2020 | |
GOODWILL, NET | 9. GOODWILL, NET Goodwill, net, consisted of the following: For the years ended September 30 2019 2020 Professional Business start-up Sales of Total Professional Business start-up Sales of Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 56,214 1,642 21,660 79,516 54,016 1,517 20,813 76,346 Exchange difference (2,198 ) (125 ) (847 ) (3,170 ) 3,040 — 1,097 4,137 Ending balance 54,016 1,517 20,813 76,346 57,056 1,517 21,910 80,483 Accumulated impairment loss — (1,517 ) — (1,517 ) — (1,517 ) — (1,517 ) Goodwill, net 54,016 — 20,813 74,829 57,056 — 21,910 78,966 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 the 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 t record any impairment of goodwill for the years ended September 30, 2018, 2019 and 2020 related to the professional education services. Business start-up training services - This reporting unit provides start-up training services to the Group’s customers located in the PRC. It includes Zhengbao Yucai and its subsidiaries. The goodwill arising from the acquisition of Zhengbao Yucai is fully allocated to this reporting unit. The revenues of Business start-up training services decreased significantly during the year ended September 30, 2019 due to the loss of the exclusive cooperation relationship with the government. As of September 30, 2019, the Group conducted two-step goodwill impairment testing with the assistance of a third party valuer and recognized US$ as impairment loss on goodwill related to the business start-up training services. The fair value of the reporting unit was determined using the income approach with significant unobservable inputs. 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, Xiamen NetinNet Education Technology Co., Ltd., Xiamen NetinNet Finance Technology Co., Ltd., Beijing NetinNet Technology Co., Ltd. and Yunqi Zhixin (Hangzhou) Technology Co., Ltd.. The goodwill arising from the acquisition of NetinNet is fully allocated to this reporting unit. The Group did not record any impairment of goodwill for the years ended September 30, 2018, 2019, and 2020 related to the sales of learning simulation software. |
OTHER INTANGIBLE ASSETS, NET
OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2020 | |
OTHER INTANGIBLE ASSETS, NET | 10. OTHER INTANGIBLE ASSETS, NET The balance of other intangible assets, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Computer software 5,858 6,452 Trademarks and domain names 5,429 5,730 Courseware 4,601 4,843 Business contracts 23,917 25,178 Copyrights 9,692 10,204 Others 871 918 Total intangible assets 50,368 53,325 Less: Accumulated amortization Computer software (4,316 ) (5,001 ) Trademarks and domain names (2,727 ) (3,790 ) Courseware (1,857 ) (3,213 ) Business contracts (5,667 ) (10,457 ) Copyrights (5,346 ) (7,227 ) Others (342 ) (476 ) Accumulated amortization (20,255 ) (30,164 ) Intangible assets, net 30,113 23,161 Amortization expenses were US$3,230, US$8,765 and US$8,566 for the years ended September 30, 2018, 2019 and 2020, respectively. The estimated amortization expenses for the intangible assets for each of the following fiscal years are as follows: Amortization US$ 2021 8,551 2022 6,846 2023 5,841 2024 1,447 2025 273 2026 and thereafter 203 23,161 |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2020 | |
LONG-TERM INVESTMENTS | 11. LONG-TERM INVESTMENTS Long-term investments consisted of the following: As of September 30, 2019 2020 US$ US$ Equity securities without readily determinable fair value: Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing teacheredu”) (a) 11,199 11,789 Other equity securities without readily determinable fair value 762 1,473 Equity method investments: Beijing Champion Yuanjian Education Technology Co., Ltd. (“Yuanjian”) (b) 2,488 3,012 Other equity method investments (c) 2,590 941 Available-for-sale securities investments: Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (d) 4,617 5,597 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (e) 2,434 2,353 Other available-for-sale investments (f) 1,289 1,159 Total 25,379 26,324 (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 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. In October 2020, Beijing teacheredu completed its share issuance plan and the equity interest held by the Group was reduced from 14.5% to 13.8%. For the years ended September 30, 2018, 2019 and 2020, no impairment loss was recorded in regard to the investment. (b) 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 N ( ) to ( ) (c) The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2019 and 2020. During the years ended September 30, 2018, 2019 and 2020, the Group recorded share of net income ( ) to ( ) ( ) 2018, nil, , respectively (d) 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$1,070 and US$626 was reported in other comprehensive loss for the years ended September 30, 2019 and 2020, respectively. (e) 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-sale 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 (loss) of US$170 and US$(178) were reported in other comprehensive income (f) Other investments represent several insignificant investments classified as available-for-sale investments as of September 30, 2019 and 2020. Unrealized holding gains (loss) of US$135 and US$(130) were reported in other comprehensive i ncome |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Sep. 30, 2020 | |
FAIR VALUE MEASUREMENT | 12. FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measures cash and cash equivalent and available-for-sale investments 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. Available-for-sale securities recorded in long-term investments included redeemable preferred shares. Available-for-sale securities recorded in short-term investments included certain financial products with early redemption options and no specified maturity dates. The Group has no financial liabilities that are measured at fair value on a recurring basis. The Group’s financial assets measured at fair value on a recurring basis are as follows: For the year ended September 30, 2020 Fair value Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Fair value measured Cash and cash equivalents 80,056 80,056 — — Short-term investments: Available-for-sale securities 20,343 — 20,343 — Long-term investments: Available-for-sale securities 9,109 — 2,353 6,756 Total assets measured at fair value 109,508 80,056 22,696 6,756 For the year ended September 30, 2019 Fair value Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Fair value measured Cash and cash equivalents 67,977 67,977 — — Short-term investments: Available-for-sale securities 20,601 — 20,601 — Long-term investments: Available-for-sale securities 8,340 — 1,289 7,051 Total assets measured at fair value 96,918 67,977 21,890 7,051 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 is 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 Initial Public Offerings (“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, 2019, the fair values of available-for-sale investments classified as L 44.6 57.5 years 51.6 56.9 years 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 during the years ended September 30, 2019 and 2020. Specifically, the Group changed its measurement method from recent transactions to a market approach to determine the investment’s fair value as no recent transactions were available. The Group also transferred one redeemable preferred share investment from Level 3 to Level 2 during the years ended September 30, 2019 and 2020, due to the availability of a recent transaction. The following table provides additional information of reconciliation for the fair value measurements of assets using significant unobservable inputs (Level 3). Available-for-sale US$ Balance as of September 30, 2018 4,648 Transfer from L 2,327 Transfer to L (1,154 ) Unrealized gain 1,459 Exchange loss (229 ) Balance as of September 30, 2019 7,051 Transfer from L 1,289 Transfer to L (2,434 ) Unrealized gain 606 Exchange gain 244 Balance as of September 30, 2020 6,756 The Group measures goodwill and acquired intangible assets at fair value on a nonrecurring basis when it is annually evaluated or whenever events or changes in circumstances indicate that carrying amount of a reporting unit exceeds its fair value as a result of the impairment assessments. The Group measures the purchase price allocation at fair value on a nonrecurring basis as of the acquisition dates. The Group measured acquired intangible assets using income approach - discounted cash flow method when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. The Group did not recognize any impairment losses related to acquired intangible assets arising from acquisitions for the years ended September 30, 2018, 2019 and 2020 , respectively. The Group recognized nil, US$1,517 and nil impairment loss related to goodwill during The Group measures equity securities without readily determinable fair value and equity method investments at fair value on a non-recurring basis whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. The G s , respectively. The |
OTHER NON-CURRENT ASSETS
OTHER NON-CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
OTHER NON-CURRENT ASSETS | 13. OTHER NON-CURRENT ASSETS Other non-current assets consisted of the following: As of September 30, Notes 2019 2020 US$ US$ Long-term prepaid expenses (1 ) 3,864 2,318 Rental deposits (2 ) 1,017 1,244 Long-term capitalized commission fees (3 ) 3,251 3,043 Long-term receivables 1,540 — Others 420 884 10,092 7,489 (1) Long-term prepaid expenses represent golf club membership fees. Such fees are are (2) Rental deposits represent office rental deposits for the Group’s daily operations, which will not be refunded within one year. (3) Long-term capitalized commission fees primarily consist of the long-term incremental sales commission relating to obtaining the customer contract s |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Sep. 30, 2020 | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 14. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consisted of the following: As of September 30, Note 2019 2020 US$ US$ Tuition fee payable to government agencies (1 ) 12,971 24,109 Salary and welfare payable 8,691 10,577 Accrued expenses 8,317 11,386 Remuneration payable to lecturers 2,701 4,648 Uncertain income tax liabilities (Note 19) 152 160 Other payable 5,435 4,574 38,267 55,454 (1) Tuition fee payable to government agencies mainly represents the portion of tuition fee s s s |
BANK BORROWINGS
BANK BORROWINGS | 12 Months Ended |
Sep. 30, 2020 | |
BANK BORROWINGS | 15. BANK BORROWINGS On June 22, 2015, the Company entered into a 3-year US$/RMB Revolving Term t Asia, Limited (the “BEA Facility”) which remained effective s and 2020 are • On June 22, 2018, the loan originally drawn down in 2017 was subsequently renewed in an amount of US$15,081 and extended to • 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. The loan bears interest rate of 3.43% subject to adjustment each quarter. The loan is scheduled to be repaid in two installments before the following dates: November 30, 2019 and March 31, 2020, in an amount of US$3,000 and US$12,100, respectively. On November 22, 2019 and March 27, 2020, US and US$12,100 were repaid according to the payment schedules. The term deposit used to secure the loan was subsequently released upon the settlement. On November 17, 2017, the Company entered into a one s ended September 30, 2018, 2019 and 2020 are listed as follows: • On December 18, 2017, US$20,100 of the HSB Facility was drawn down at approximately 2.82% interest rate, subject to adjustment each quarter, for a term of 12 months. The loan was secured by a term deposit of RMB134.7 million (US$20,246) provided by Champion Technology. The Group repaid US$5,000 in November 2018. On December 14, 2018, the remaining US$15,100 of the loan was subsequently renewed and extended to June 19, 2019 with a 3.49% annual interest rate, subject to adjustment each quarter. On May 17, 2019, the loan was subsequently renewed and extended to November 30, 2019, and it was further extended to January 14, 2020 on June 6, 2019, with a 3.59 2019. The term deposit used to secure the loan was subsequently released upon the settlement. • 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, and further extended to January 14, 2020 on June 6, 2019, with a 3.59 respectively. The term deposit used to secure the loan was subsequently released upon the settlement. On April 15, 2020, CDEL Hong Kong entered into two • On April 15, 2020, US$20,000 of the f 24 Zhongxi Education On July 19, 2017, Zhengbao Yucai entered into a three for 3 2018, 2019 and 2020 are listed as follows: • 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). The outstanding loan balance as of September 30, 2019 amounting to RMB was fully paid in the year ended September 30, 2020. The fair value of the bank borrowings with BEA, BSB and Hang Seng Bank was US$38,502 and US$4,012 as of September 30, 2019 and 2020, respectively. The fair value of the long-term bank borrowing with H |
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Sep. 30, 2020 | |
RELATED-PARTY TRANSACTIONS | 16. RELATED-PARTY TRANSACTIONS 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 s The amount s ies s s services incurred during the years ended September 30, 2019 and 2020. The total service fee incurred for the years ended September , respectively. |
DECONSOLIDATION OF A SUBSIDIARY
DECONSOLIDATION OF A SUBSIDIARY | 12 Months Ended |
Sep. 30, 2020 | |
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 determined with the assistance of a valuer that the consideration is representative of the fair value of Champion Tax Advisory. In accordance with the a remaining installment was due in December 2020 and is recorded in “prepayment and other current assets” as of September 30, 2020. The remaining installment was subsequently received on January 8, 2021. 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 RMB47.5 million (US$6,869), out of which RMB14.3 million (US$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 a related party to the Company after the deconsolidation. The remaining 40% equity interest was measured at its fair value using the |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Sep. 30, 2020 | |
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 the 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 profit to the general reserve until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Champion Technology and Champion Education Technology were established as wholly-owned foreign invested enterprises and therefore are subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide statutory common reserve amounting to at least 10% of its annual after-tax profit until such reserve reaches 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. The Group’s provision for the statutory common reserve is in compliance with the aforementioned requirement of the Company Law. A domestic enterprise is also required to provide for discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Because the Group’s entities in the PRC can only be paid out of distributable profits reported in accordance with the |
INCOME TAX
INCOME TAX | 12 Months Ended |
Sep. 30, 2020 | |
INCOME TAX | 19. INCOME TAX Cayman Islands The Company is a tax-exempted company incorporated in the 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. Hong Kong CDEL Hong Kong, Practice Enterprises Network China International Links Limited and China Healthcare Education Limited 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 2022 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 is NetinNet renewed its HNTE Status in October 2020 is 2020 2022 . Champion Education Technology, Zhongxi Healthcare Education, Caikaowang, Nanjing Champion Vocational Training School, Beijing Chuang Qingchun Chuang Weilai Education Technology Co., Ltd., Guangdong Zhengbao Yucai Education Co., Ltd., Shanghai Huzheng Education Technology Co., Ltd., Jiangsu Asset, JinMaLan (Tianjin) Business Start-up Services Co., Ltd., JinMaLan (Anqing) Business Start-up Services Co., Ltd., Nanchang Champion Vocational Training School, Haimen Zhengbao Yucai Vocational Training School, Yunqi Zhixin (Hangzhou) Technology Co., Ltd. (collectively “small and micro businesses”) are small and micro business having annual taxable income of RMB1 million or less. The statutory tax rate for them is 25% for the calendar year 2020. However, according to Cai Shui[2019] No.13, a small and micro business having annual taxable income of RMB Under the EIT Law and its implementation rules, a withholding tax at 10%, unless reduced by a tax treaty or arrangement, is applied on dividends received by non-PRC-resident corporate investors from the , respectively. In general, the PRC tax authorities have up to five years to conduct examinations of the PRC entities’ tax filings. Accordingly, the PRC entities’ calendar years from 2015 2019 2015 Income before income taxes consisted of: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Non - PRC (656 ) (3,332 ) (12,574 ) PRC 15,438 29,131 26,726 14,782 25,799 14,152 The current and deferred components of the income tax expense appearing in the consolidated statements of operations are as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Current tax expense s 5,717 7,060 10,543 Deferred tax (benefit) expense s (3,410 ) 1,061 (5,083 ) 2,307 8,121 5,460 The reconciliation of the effective tax rate and the statutory income tax rate applicable to the For the years ended September 30, 2018 2019 2020 US$ US$ US$ Income before taxes 14,782 25,799 14,152 Income tax expense s 3,696 6,450 3,538 Effect of different tax rates in different jurisdictions 770 704 3,010 Non-deductible expenses 152 1,059 1,362 Effect of tax holidays (2,610 ) (1,934 ) (2,148 ) Effect of valuation allowances 285 1,232 184 Withholding tax on undistributed earnings 313 689 141 Income tax reversal (299 ) (79 ) (627 ) 2,307 8,121 5,460 Effective income tax rate 15.61 % 31.48 % 38.58 % The aggregate amount and per share effect of the tax holidays are as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ The aggregate amount of tax holidays 2,610 1,934 2,148 The aggregate increase - Basic 0.02 0.01 0.02 - Diluted 0.02 0.01 0.02 Deferred taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of September 30, 2019 2020 US$ US$ Deferred tax assets Advertising expenses carry-forwards — 1,652 Accrued expenses 984 1,618 Allowance for doubtful accounts 1,031 1,073 Impairment loss from long-term investments 1,178 1,472 Property, plant and equipment 103 104 Net operating loss carry-forwards 2,811 4,585 6,107 10,504 Less: valuation allowance (2,242 ) (2,616 ) Total deferred tax assets Deferred tax assets, net 3,865 5,690 Deferred tax liabilities Intangible assets 7,085 5,488 Withholding tax on undistributed earnings 3,556 133 Unrealized gain on available-for-sale investments 647 760 Capitalized commission fees 1,407 1,905 Total deferred tax liabilities 12,695 8,286 Deferred tax liabilities, net 12,695 6,088 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 benefits related to transfer price position prior to the year 2009 amounted to US$152 and US$160 as of September 30, 2019 and 2020, respectively. The subsequent changes of the unrecognized tax benefit were due to foreign currency adjustment. Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized US$ Balance as of September 30, 2018 158 Foreign currency adjustment (6 ) Balance as of September 30, 2019 152 Foreign currency adjustment 8 Balance as of September 30, 2020 160 The Group does not anticipate any significant change in unrecognized tax benefits within 12 months from September 30, 2020. In addition, uncertainties exist with respect to how the current income tax law in the PRC applies to the Group’s overall operations, and more specifically, with regard to tax residency status. The New EIT Law includes a provision specifying that legal entities organized outside of the PRC will be considered residents for Chinese Income tax purposes if the place of effective management or control is within the PRC. The implementation rules to the New EIT Law provide that non-resident legal entities will be considered the |
EMPLOYEE DEFINED CONTRIBUTION P
EMPLOYEE DEFINED CONTRIBUTION PLAN | 12 Months Ended |
Sep. 30, 2020 | |
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$12,297, US$12,773 and US$8,820 for the years ended September 30, 2018, 2019 and 2020, respectively. Obligations for contributions to defined contribution retirement plans for full-time employees in Hong Kong, including contributions payable under the Hong Kong Mandatory Provident Fund Schemes Ordinance, are recognized as expenses in the consolidated statements of operations as incurred, and the amounts were immaterial for the years ended September 30, 2018, 2019 and 2020. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | 21. LEASES The Group has operating leases for floors and rooms of office buildings used as offices (the headquarters in Beijing and office space for subsidiaries in Jiangsu and Fujian) and parking lots. Certain leases include renewal options and/or termination options, which are factored into the Group’s determination of lease payments when appropriate. Operating lease cost for the year ended September 30, 2020 was US$ was US$ As of September 30, 2020, the weighted average remaining lease term was 7.3 years and weighted average discount rate was 4.9% for the Group’s operating leases. Supplemental cash flow information related to the operating lease s For the year ended US$ Cash payments for the operating leases 6,592 ROU assets obtained in exchange for the new operating lease liabilities 29 A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of September 30, 2020 is as follows: US$ Years ending September 30, 2021 5,411 2022 4,986 2023 4,579 2024 4,666 2025 3,931 2026 and thereafter 8,806 Total future lease payments 32,379 Less: Imputed interest (5,130 ) Present value of operating lease liabilities 27,249 As of September 30, 2019, the future minimum lease payments under the Group’s non-cancelable operating lease agreements based on ASC 840 are as follow: US$ Years ending September 30, 2020 9,225 2021 5,169 2022 3,775 2023 3,701 2024 3,805 2025 and thereafter 21,195 Total future lease payments 46,870 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2020 | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Legal contingencies The G Assets pledged as security for bank borrowings As disclosed in Note 15, on April 15, 2020, the Company entered into a loan agreement with Hang Seng Bank for a total of US$20,000 term loan facility. The total facility was secured by a term deposit of RMB143.0 million (US$21,062) provided by Champion Healthcare Education, which was recorded in “restricted cash-current” and “restricted cash-non-current” on the consolidated balance sheet as of September 30, 2020. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 12 Months Ended |
Sep. 30, 2020 | |
NONCONTROLLING INTERESTS | 23. NONCONTROLLING INTERESTS Noncontrolling interests represent the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. The consolidated financial statements include all assets, liabilities, revenues and expenses at their consolidated amounts, which include the amounts attributable to the Company and the noncontrolling interest. The Company recognizes as a separate component of equity and earnings on the portion of income or loss attributable to noncontrolling interests based on the portion of the entity not owned by the Company. The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2018, 2019 and 2020. Zhengbao NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ 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 Capital contribution from noncontrolling interest shareholders — 367 — — 367 Foreign currency translation adjustment attributed to noncontrolling interest shareholders 426 531 53 1,516 2,526 Cash dividends paid to noncontrolling interests by a subsidiary — (847 ) — (1,699 ) (2,546 ) (Loss) gain attributed to noncontrolling interest shareholders (1,017 ) 506 101 (1,883 ) (2,293 ) Balance as of September 30, 2020 8,121 10,421 1,119 29,308 48,969 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 conditions. Refer to Note 3. Together with the 40% equity interest acquired previously, the Group holds a total of 51% equity interest of Beijing Ruida. The noncontrolling interest of 49% equity interest over Beijing Ruida has been included in the consolidated financial statements as of September 30, 2018, 2019 and 2020. 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$5,580). The total consideration was paid on May 26, 2019. The Group completed the transaction on August 1, 2019, which was accounted for as an equity transaction. Together with the 51% equity interest acquired previously, the Group holds a total of 60% equity interest of Beijing Ruida. The schedule below discloses the effect of changes in the ownership interest on the Company’s equity: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net income attributable to the Company 11,626 21,254 10,430 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in capital in relation to capital contribution made by Jiangsu Asset’s noncontrolling interest 29 — — 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 the Company’s shareholders and transfer from noncontrolling interests 11,655 22,064 10,430 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2020 | |
SEGMENT REPORTING | 24. 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 training services and the sales of learning simulation software for 30, 2018, 2019 and 2020. 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 revenues, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net revenues 166,668 211,822 209,558 Professional education services 150,484 196,047 197,835 Business start-up training services 4,608 2,796 2,207 Sales of learning simulation software 11,576 12,979 9,516 Operating costs and expenses: Cost of sales (87,883 ) (104,741 ) (101,598 ) Professional education services (79,168 ) (96,044 ) (94,162 ) Business start-up training services (2,644 ) (1,777 ) (1,033 ) Sales of learning simulation software (6,071 ) (6,920 ) (6,403 ) Selling and marketing (44,717 ) (61,460 ) (69,848 ) Professional education services (39,698 ) (56,334 ) (65,474 ) Business start-up training services (1,127 ) (1,226 ) (915 ) Sales of learning simulation software (3,892 ) (3,900 ) (3,459 ) General and administrative (16,760 ) (20,064 ) (18,528 ) Professional education services (14,548 ) (16,745 ) (16,773 ) Business start-up training services (896 ) (1,930 ) (584 ) Sales of learning simulation software (1,316 ) (1,389 ) (1,171 ) Impairment of goodwill — (1,517 ) — Business start-up training services — (1,517 ) — Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) Total operating costs and expenses (153,853 ) (192,637 ) (196,924 ) Professional education services (133,414 ) (169,123 ) (176,409 ) Business start-up training services (4,667 ) (6,450 ) (2,532 ) Sales of learning simulation software (11,279 ) (12,209 ) (11,033 ) Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) Other operating income 3,051 2,968 6,155 Professional education services 643 1,053 4,976 Business start-up training services 76 102 5 Sales of learning simulation software 2,332 1,813 1,174 Operating income (loss) 15,950 22,848 18,789 Professional education services 17,797 28,672 26,402 Business start-up training services 17 (3,552 ) (320 ) Sales of learning simulation software 2,629 2,583 (343 ) Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) For the years ended September 30, 2018 2019 2020 US$ US$ US$ Segment assets 328,925 355,350 398,139 Professional education services 236,496 273,005 307,054 Business start-up training services 46,205 36,735 40,865 Sales of learning simulation software 46,224 45,610 50,220 Total assets 328,925 355,350 398,139 Amortization and depreciation 6,299 12,723 13,215 Professional education services 4,479 10,939 11,481 Business start-up training services 36 69 60 Sales of learning simulation software 1,784 1,715 1,674 (Loss) gain from equity method investments (172 ) (1,484 ) (555 ) Professional education services 58 (1,173 ) (555 ) Business start-up training services (230 ) (311 ) — |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Sep. 30, 2020 | |
NET INCOME PER SHARE | 25. NET INCOME PER SHARE Basic and diluted net income per share for each of the periods presented were calculated as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Numerator: Net income 11,626 21,254 10,430 - allocated to ordinary share - basic 11,583 21,117 10,352 - allocated to nonvested share - basic 43 137 78 Denominator: Weighted average number of ordinary shares outstanding 132,363,620 133,060,900 133,984,929 Weighted average number of nonvested share 487,685 862,436 1,010,719 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 265,850 214,781 236,576 Weighted average ordinary shares outstanding used in computing diluted net income per share 133,117,155 134,138,117 135,232,224 Basic net income per share 0.09 0.16 0.08 Basic net income per nonvested share 0.09 0.16 0.08 Diluted net income per share 0.09 0.16 0.08 Diluted net income per nonvested share 0.09 0.16 0.08 |
SHARE INCENTIVE PLAN
SHARE INCENTIVE PLAN | 12 Months Ended |
Sep. 30, 2020 | |
SHARE INCENTIVE PLAN | 26. SHARE INCENTIVE PLAN Share options On April 18, 2008, the Company’s shareholders approved the “China Distance Education Holdings Limited Share Incentive Plan” (the “Prior Plan”), which permits the grant of share options and shares to its employees and non-employees (the “Participants”). The maximum number of ordinary shares that may be delivered pursuant to compensatory awards granted to the Participants under the Prior Plan should not exceed 11,652,556 ordinary shares of par value US$0.0001 per share. On July 2, 2008, the Company’s shareholders approved the “China Distance Education Holdings Limited 2008 Performance Incentive Plan” (the “New Plan”). Subject to any amendment of the New Plan, the maximum number of ordinary shares that may be issued pursuant to the New Plan is equal to 5% of the total number of ordinary shares issued and outstanding as of August 4, 2008, plus an automatic annual increase on October 1 of each calendar year commencing with October 1, 2008, by an amount equal to the lesser of (i) 1%, 2% amended on November 28, 2017, of the total number of ordinary shares issued and outstanding on September 30 of the same calendar year, (ii) such number of ordinary shares as may be determined by the Company’s board of directors, or (iii) 2,850,000 ordinary shares, as amended on November 28, 2017. The purpose of these share incentive plans is to promote the success of the Company and the interests of its shareholders by providing a means through which the Company may grant equity-based incentives to attract, motivate, retain and reward certain officers, employees, directors and other eligible persons and to further link the interests of recipients with those of the Company’s shareholders generally. The New Plan had an expiration date August 4, 2018, which was further extended to August 4, 2028. Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest within 4 years of continuous service s 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$1.81 per share, which was determined by the closing price of the Company’s American Depository Shares (“ADSs”) on New A summary of the share options granted to employees and non-ex e Share option granted to employees and non-executive Number of Weighted- Weighted- Aggregated US$ US$ Outstanding as of September 30, 2017 2,025,600 2.85 6.53 — Exercised (895,148 ) 1.66 Forfeited (71,352 ) 1.17 Outstanding as of September 30, 2018 1,059,100 1.39 5.58 718 Forfeited (19,000 ) 1.81 5.14 — Outstanding as of September 30, 2019 1,040,100 1.39 4.57 — Forfeited (71,100 ) 0.98 2.85 — Outstanding as of September 30, 2020 969,000 1.29 3.62 1,067 Expected to vest as of 0 — — — — Exercisable as of September 30, 2020 969,000 1.29 3.62 1,067 During the year ended September 30, 2018, all outstanding share options granted to non-employees in total of 57,000 shares were fully exercised. There were no s The Company declared a cash dividend of US$0.1125, nil and US$0.145 per ordinary share on its outstanding shares to shareholders on the record date during 27 According to the terms of the Prior Plan and the New Plan, the exercise s The total intrinsic value of options exercised during the years ended September 30, 2018, 2019 and 2020 were US$749, nil and nil, respectively. The Company recorded share-based compensation expenses related to share options of US$1,231, US$143 and nil for the years ended September 30, 2018, 2019 and 2020, respectively. As of September 30, 2020, there was no unrecognized share-based compensation cost related to share options. Nonvested shares On December 3, 2019, the Company granted nonvested 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 which was the closing price of the Company’s ADSs on NYSE on December 3, 2019. This grant resulted in a total share-based compensation of US $345, and is expected to be recognized ratably over the requisite service period of one year. On December 20, 2019, the Company granted 541,132 nonvested shares to executive directors, officers and employees under the New Plan. These nonvested shares are subject to a one-year vesting period with two equal semi-annual installments. The grant-date value of the nonvested share was US$1.93, which was the closing price of the Company’s ADSs on NYSE on December 20, 2019. This grant resulted in a total share-based compensation of US$1,057, and is expected to be recognized ratably over the requisite service period of one years. On January 1, and January 12, 2020, the Company granted 220,504 and 173,052 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$2.43 and US$2.16, which was the closing price of the Company’s ADSs on NYSE on January 1 and January 12, 2020, respectively. This grant resulted in a total share-based compensation of US$910, and is expected 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 s The Company recorded share-based compensation expenses related to nonvested shares of US$1,075, US$1,862 and US$2,618 for the years ended September 30, 2018, 2019 and 2020, respectively. As of September 30, 2020, there was US$616 of share-based compensation related to nonvested shares that is expected to be recognized over a weighted average period of 0.2 year. A summary of the nonvested share activities for the years ended September 30, 2018, 2019 and 2020 is as follows: Number of Weight average Aggregated US$ US$ Nonvested shares outstanding as of September 30, 2017 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested shares outstanding as of September 30, 2018 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 September 30, 2019 706,840 1.84 965 Granted 1,109,688 2.08 — Vested (1,089,404 ) 1.96 — Nonvested shares outstanding as of September 30, 2020 727,124 2.03 1,741 Nonvested shares expected to vest as of September 30, 2020 727,124 2.03 1,741 Share-based compensation expenses Total share-based compensation expense s As of September 30, 2018 2019 2020 US$ US$ US$ Cost of sales 161 23 139 General and administrative expenses 2,065 1,972 2,421 Selling expenses 80 10 58 2,306 2,005 2,618 |
CASH DIVIDEND
CASH DIVIDEND | 12 Months Ended |
Sep. 30, 2020 | |
CASH DIVIDEND | 27. CASH DIVIDEND 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. On March 17, 2020, the Company approved and declared a cash dividend of US$0.145 per ordinary share on its total 135,320,433 outstanding shares as of the close of trading on March 31, 2020, resulting in payments totaling US$19,621 to shareholders. Such dividend was recorded as a reduction against retained earnings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2020 | |
SUBSEQUENT EVENTS | 28. SUBSEQUENT EVENTS (1) On November 13, 2020, the Company granted 458,168 nonvested shares to executive directors, officers and employees. These nonvested shares are subject to one (2) On December 1, 2020, the Company announced that it has entered into a definitive agreement and plan of merger (the “Merger Agreement”) with Champion Distance Education Investments Limited (“Parent”) and China Distance Learning Investments Limited (“Merger Sub”), a wholly owned subsidiary of Parent, pursuant to which, subject to the terms and conditions thereof, Merger Sub will merge with and into the Company, with the Company continuing as the surviving entity and becoming a wholly-owned subsidiary of Parent (the “Merger”). If completed, the Merger will result in the Company becoming a privately-held company, the Company’s ADSs will no longer be listed on the NYSE, and its ADS program will be terminated. On November 30, 2020, Parent received from China Merchants Bank (“CMB”) a Debt Commitment Letter, pursuant to which and subject to the conditions set forth therein, China Merchants Bank committed to provide a senior secured term loan facility in an aggregate principal amount of up to US$200,000 to Parent to (i) complete the Merger and (ii) repay an existing margin loan made to Champion Shine Trading Limited, an investment holding company wholly owned and controlled by the Chairman, in the principal amount of US$25,000. (3) On January 15, 2021, the outstanding loan balance amounting to US$20,000 with Hang Seng Bank as of September 30, 2020 was early repaid by CDEL Hong Kong. This early settlement was mainly due to certain terms of the Debt Commitment Letter, which limit the user of the Parent’s future proceed upon privatization. |
Financial Statement Schedule I
Financial Statement Schedule I | 12 Months Ended |
Sep. 30, 2020 | |
Financial Statement Schedule I | Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company BALANCE SHEETS (In thousands, except share data and per share data) As of September 30, 2019 2020 US$ US$ ASSETS Current assets Cash and cash equivalents 1,383 283 Prepayment and other current assets 381 427 Amounts due from subsidiaries 8,474 8,480 Total current assets 10,238 9,190 Non-current assets Long-term investments 1,289 1,159 Investment in subsidiaries 192,265 225,251 Total non-current assets 193,554 226,410 Total assets 203,792 235,600 LIABILITIES AND EQUITY Current liabilities Accrued expenses and other liabilities 989 2,314 Amounts due to subsidiaries 98,434 155,311 Bank borrowings 31,538 — Total current liabilities 130,961 157,625 Total liabilities 130,961 157,625 Shareholders’ equity Ordinary shares (par value of US$0.0001 per share; 500,000,000shares authorized; 134,210,745 and 135,320,433 13 14 Additional paid-in capital 24,507 27,316 Accumulated other comprehensive loss (12,357 ) (832 ) Retained earnings 60,668 51,477 Total equity 72,831 77,975 Total liabilities and equity 203,792 235,600 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF OPERATIONS (In thousands, except share data and per share data) For the years ended September 30, 2018 2019 2020 US$ US$ US$ Cost of sales (161 ) (23 ) (139 ) Selling expenses (80 ) (10 ) (58 ) General and administrative expenses (2,887 ) (3,100 ) (5,823 ) Operating loss (3,128 ) (3,133 ) (6,020 ) Share of equity income in its subsidiaries and the VIEs 14,763 23,776 21,385 Interest income 1 21 6 Interest expense s (2,110 ) (2,261 ) (932 ) Exchange gain (loss) 2,100 2,851 (4,009 ) Net income 11,626 21,254 10,430 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company STATEMENTS OF COMPREHENSIVE INCOME (In thousands, except share data and per share data) For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net income 11,626 21,254 10,430 Other comprehensive (loss) income Foreign currency translation adjustment (6,245 ) (6,719 ) 11,207 Total comprehensive income 5,381 14,535 21,637 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, 2018 2019 2020 US$ US$ US$ CASH FLOWS FROM OPERATING ACTIVITIES Net cash (used in) provided by operating activities (9,575 ) 18,025 49,752 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 optioneesin connection with exercise of options 193 135 192 Capital contribution from noncontrolling interests 29 — — New short-term loans drawn down 20,573 — — Loan repayments — (19,000 ) (31,423 ) Dividends paid to shareholders (14,949 ) — (19,621 ) Net cash provided by (used in) financing activities 5,777 (18,865 ) (50,852 ) Net decrease in cash and cash equivalents and restricted cash (3,798 ) (840 ) (1,100 ) Cash and cash equivalents and restricted cash at beginning of the year 6,021 2,223 1,383 Cash and cash equivalents and restricted cash at end of the year 2,223 1,383 283 Additional Information - Financial Statement Schedule I Condensed Financial Information of Parent Company NOTES TO FINANCIAL STATEMENTS (In thousands, except share data and per share data) 1. BASIS FOR PREPARATION The condensed financial information of the Parent Company has been prepared using the same accounting policies as set out in the Group’s consolidated financial statements except that the Parent Company used the equity method to account for investments in its subsidiaries and the VIEs. The condensed financial information is provided since the restricted net assets of the Group’s subsidiaries, the VIEs and the VIEs’ subsidiaries were over the % of the consolidated net assets of the Group as of September . 2. INVESTMENTS IN SUBSIDIARIES AND THE VIEs In its consolidated financial statements, the Parent Company consolidates the results of operations and assets and liabilities of its subsidiaries, the VIEs and the 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 and the Parent Company’s share of income from its subsidiaries are reported as the single line item of share of equity income in its subsidiaries and the VIEs. The Parent Company’s share of equity income in its subsidiaries and the VIEs recognized during the years ended September and were US$ US$ and US$ respectively. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2020 | |
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 the 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 the VIEs, income tax, impairment of goodwill and long-term assets, impairment of long-term investments, change in fair value of contingent consideration, change in fair value of a long-term investment, 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 the VIEs’ subsidiaries. All profits, transactions and balances among the Company, its subsidiaries, its VIEs and the VIEs’ subsidiaries have been eliminated upon consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions The Company’s functional currencies are the United States dollars (“US$”). The Company’s PRC subsidiaries, the VIEs and the VIEs’ subsidiaries determine their functional currencies to be the Chinese Renminbi (“RMB”). The Company uses the US$ 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, the VIEs, and the 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 the 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, 2019 and 2020 represented cash pledged as security for bank borrowings. Refer to Note 15. |
Term deposits | Term deposits Term deposits consist of deposits placed with financial institutions with original maturities of greater than three |
Short-term investments | Short-term investments Short-term investments consist of held-to-maturity investments with a maturity of less than one year. The Group’s short-term held-to-maturity investments are classified as short-term investments on the consolidated balance sheets based on their contractual maturity dates which are less than one year and are stated at their amortized costs. In addition, short-term investments also comprise of financial products with early redemption option and no specified maturity dates, which are classified as available-for-sale investments. 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 statements of operations. |
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, amounts due to related parties and accounts payable. Available-for-sale investments and cash and cash equivalents are carried at fair value. The carrying amounts of restricted cash, accounts receivable, amounts due from related parties, short-term held-to-maturity investments, bank borrowings, amounts due to related parties and accounts payable approximate their fair values due to the short-term maturities of these instruments. The Group carries equity securities without readily determinable fair values under long-term investments at cost, less impairment, plus or minus observable price changes in a similar transaction. Long-term bank borrowing is carried at amortized cost. The fair value is based on the contractual cash flows discounted using rates currently offered for borrowing with similar terms. Refer to Note 15 for further details. |
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 expenses 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 goodwill impairment test. Absent from any impairment indicators, the Group performs its annual impairment test on the last day of each fiscal year. For the years ended September 30, 2019 and 2020, the Group performed its annual impairment test using a two-step approach. The first step compares the fair value of a reporting unit to its carrying amount, including goodwill. If the fair value of the reporting unit is greater than its carrying amount, goodwill is not considered impaired and the second step is not required. If the fair value of the reporting unit is less than its carrying amount, the second step of the impairment test measures the amount of the impairment loss, if any, by comparing the implied fair value of goodwill to its carrying amount. If the carrying amount of goodwill exceeds its implied fair value, an impairment loss is recognized equal to that excess. The implied fair value of goodwill is calculated in the same manner that goodwill is calculated in a business combination, whereby the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit, with the excess purchase price over the amounts assigned to assets and liabilities representing the implied fair value of goodwill. The Group recorded , US$ , and impairment loss related to goodwill for the years ended September 30, 2018, 2019 and 2020, respectively. |
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 3~5.5 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, 2018, 2019 and 2020. |
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 investments. (a) Equity securities without readily determinable fair values On October 1, 2018, the Group adopted Accounting Standards Update (“ASU”) No. 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities and 2018-03 Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The Group adopted this ASU using a modified retrospective method. Prior to the fiscal year 2019, for investee companies over which the Group does not have significant influence or a controlling interest, equity securities of privately held companies were accounted for using the cost method of accounting, measured at cost less other-than-temporary impairment. With the adoption of ASU 2016-01, the Group elected a practicability exception to fair value measurement for the equity securities without readily determinable fair values, under which these investments are measured at cost, less impairment, plus or minus observable price changes of an identical or similar investment of the same issuer with fair value change recorded in the consolidated statements of operations. 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: Fair Value Measurement (ASC 820). If the fair value is less than the investment’s carrying value, the Group recognizes an impairment loss equal to the difference between the carrying value and fair value in the consolidated statements of operations. The Group recorded , US$ and of impairment losses on its equity securities without readily determinable fair value during the years ended September 30, 2018, 2019 and 2020, respectively. (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 estimates 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$ , US$ , and US$ impairment loss on its equity method investments during the years ended September 30, 2018, 2019 and 2020, respectively. (c) Available-for-sale securities investments For investments in investees’ stocks which are determined to be debt securities, the Group accounts for them as long-term available-for-sale investments when they are not classified as either trading or held-to-maturity investments. Available-for-sale investments are carried at their fair values and the unrealized gains or losses from the changes in fair values are included in accumulated other comprehensive loss. 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 US$2,492, nil, and nil impairment loss on its available-for-sale investments during the years ended September 30, 2018, 2019 and 2020, respectively. |
Revenue recognition | Revenue recognition On October 1, 2018, the Group adopted ASC Topic 606 Revenue from Contracts with Customers (“Topic 606”), applying the modified retrospective method to all contracts that were not completed as of October 1, 2018. Results for the years ended September 30, 2019 and 2020 are presented under Topic 606, while revenues for the year ended September 30, 2018 are not adjusted and continue to be reported under ASC Topic 605, Revenue Recognition (“Topic 605”). Revenues are recognized when control of promised goods or services is transferred to the Group’s customers in an amount of consideration to which the Group expects to be entitled to in exchange for those goods or services. The Group follows the five steps approach for revenue recognition under Topic 606: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Group satisfies a performance obligation. The Group generates substantially all of its revenues in the PRC. The following table presents the Group’s revenues disaggregated by revenue sources. The Group’s revenues are reported net of value added tax and surcharges. Disaggregation of net revenues for the year ended September 30, 2020 Over-time A point-in-time Total US$ US$ US$ Online education services 158,548 790 159,338 Books and reference materials — 22,061 22,061 Other professional education services 7,352 9,084 16,436 Professional education services 165,900 31,935 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 165,900 43,658 209,558 Refundable Non-refundable Total US$ US$ US$ Online education services 37,357 121,981 159,338 Books and reference materials — 22,061 22,061 Other professional education services — 16,436 16,436 Professional education services 37,357 160,478 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 37,357 172,201 209,558 Disaggregation of net revenues for the year ended September 30, 2019 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 training services are presented as “others” on the consolidated statements of operations. The Group capitalizes sales commission paid to sales personnel and student recruitment agencies as cost of obtaining a contract when those costs are incremental to obtain a contract and if the Group expects to recover those costs. Contract costs are amortized in the same manner as the revenues recognized. As of September 30, 2020, the balances of capitalized cost of obtaining contracts with customers amounted to US$8,440 and US$3,043 were recorded in “prepayment and other current assets” and “other non-current assets”, respectively. As of September 30, 2019, the respective balances amounted to US$4,974 and US$3,251, respectively. The Group recognized amortization of contract cost amounting to US$6,166 and US$10,974 in “selling expenses” in its consolidated statements of operations during the years ended September 30, 2019 and 2020, respectively. The Group did not record any impairment of contract cost for the years ended September 30, 2019 and 2020. The Group’s contract liabilities mainly consist of prepayments from students (deferred revenue), with a balance of US$80,560 and US as of October 1, 2018 and 2019, respectively, of which US$62,363 and US were recognized in revenues for the years ended September 30, 2019 and 2020, respectively. The balances of US$127,766 and US as of September 30, 2019 and 2020 are expected to be recognized as follows: The expected balances of deferred revenue as of September 30, 2020: US$ Years ending September 30, 2021 105,953 2022 27,003 2023 6,379 2024 470 2025 76 139,881 The expected balances of deferred revenue as of September 30, 2019: US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 Refund liabilities mainly related to the estimated refunds that are expected to be paid to eligible students and recorded as refundable fees on the consolidated balance sheets. Refund liability estimates are based on historical refund ratio (i.e. passage rate) on a portfolio basis using the expected value method. As of September 30, 2019 and 2020, refundable fees amounted to US $ and US$ , respectively. Online education services The primary sources of the Group’s revenues and recognition policies are as follows: The online education services provided by the Group to its customers are integrated services, 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 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 course model and refundable course model. The online courses using the non-refundable course model are mainly comprised of regular classes and premium classes. In addition, the non-refundable course model also includes insured elite classes, which are refundable to the students through a third party insurance company. The revenues for the regular classes are recognized on a straight-line basis over the subscription period from the month in which the customers enroll in the courses to the month in which the subscribed courses terminate. For premium classes, if participants fail to pass the course examination and certain pre-agreed conditions are met, the participants can retake the same premium course for free for the following year or years. For the insured elite classes, if the course participants fails to pass the course examination and certain pre-agreed conditions are met, the participants can retake the same premium course for free for the following year or years, and enjoy the refund privilege covered by an independent insurance company. Under Topic 605, the Group recognized the discount offered for the retake course proportionally as a deduction to revenues recognized for each of the class that the participants take. Upon the adoption of Topic 606, the Group recognizes the revenues related to the premium and insured elite classes over the expected service period based on the estimated historical passage rates on a portfolio basis. 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 period after the professional examinations scores are released in order to be eligible for the refund or the right to retake the course. Under Topic 605, the proceeds from the refundable course model were initially recorded as refundable fees in the Company’s consolidated balance sheet and were recognized upon the expiration of the participants’ right to receive a refund or ratably over the retake course period when the participants decide to retake the course before the expiration of such right. Upon the adoption of Topic 606, the Group estimates the variable consideration to be earned based on historical refund ratio on a portfolio basis using the expected value method and records a refund liability based on estimated refunds to be paid to eligible students. The Group further recognizes revenues over the expected service period based on the estimated historical passage rates on a portfolio basis. 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 prepaid study cards at a discount to the face value of the cards to its regional distributors. Revenues are recorded using the after-discount-selling-price of the cards and recognized over the period the online courses are 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 study cards during a specified period of time, generally, one year. Under Topic 605, the Group deferred the portion of revenues of the prepaid study card based on the maximum potential amount of discount provided to the distributors. Revenues were recognized during the remaining period the online courses were available to the users who enroll using the prepaid study cards or were recognized immediately if the related online course had been completed or the prepaid study cards 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 revenues 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 value added tax and related surcharges. The Group records revenues net of these taxes in the consolidated statements of operations. Such value added tax related surcharges for the years ended September 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 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, of 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 training services, the tuition fees of the training participants are subsidized by the government. Qualified enrollments and the fees to be earned cannot be determined until the confirmation from government authorities regarding the number of students and fees is received by the Company, which is after the completion of services. Therefore, revenues from such services are recognized upon the receipt of confirmations from government authorities, when all the other revenues recognition criteria have been met. Revenues from offline training sponsored by government authorities were insignificant during the years ended September 30, 2019 and 2020. 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 (“VAT”) 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 % and % for the entities that are general taxpayer and small-scale taxpayer, respectively. 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 revenues 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 revenues earned from the sales of software of the Group are subject to 13% VAT rate. Since January 2020, in accordance with Cai Shui [2020] No.8 and Cai Shui [2020] No.28, due to the Novel Coronavirus Pandemic, the VAT from providing daily life services, including the education services was temporarily exempted for the calendar year 2020. 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. |
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 lease Before October 1, 2019, the Group adopted ASC Topic 840(“ASC 840”), Leases, and each lease is classified at the inception date as an operating lease, where substantially all the rewards and risk of assets remain with the leasing company. Payments made under operating leases are charged to the consolidated statements of operations on a straight-line basis over the shorter of the lease term or estimated economic life. On October 1, 2019, the Group adopted the new leasing standard (“ASC 842”). The Group determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to be recorded in the balance sheet as right-of-use (“ROU”) assets and lease liabilities, initially measured at the present value of the lease payment. The Group has elected the package of practical expedients, which allows the Group not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification of any expired or existing leases as of the adoption date and (3) initial direct cost for any expired or existing leases as of the adoption date. The Group also elected not to separately account for lease and nonlease components. Lastly, the Company has elected to utilize the short-term lease recognition exemption and, for those leases that qualified, the Group did not recognize operating lease ROU assets or operating lease liabilities. As the rate implicit in the lease is not readily determinable, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payment. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease term may include options to extend or terminate the lease when it is reasonably certain that the Group will exercise that option. Lease expenses are recorded on a straight-line basis over the lease term. |
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$14,785, US$23,668 and US$28,608 for the years ended September 30, 2018, 2019 and 2020, 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$1,852, US$3,154 and US$3,168 for the years ended September 30, 2018, 2019 and 2020, respectively. |
Income taxes | Income taxes Current income taxes are provided for in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the financial statements. Net operating loss carry forwards and credits are applied using enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The impact of an uncertain income tax position is recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes. |
Share-based compensation | Share-based compensation Share-based compensation with employees, officers and non-executive directors is measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expenses over the requisite service period, with a corresponding addition to paid-in capital. The Group recognizes compensation expenses over the vesting term on a straight-line basis with the amount of compensation expenses recognized at any date not less than the portion of the grant-date value of the option vested at that date. |
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 method whereby undistributed net income is allocated on a pro rata basis to each participating share to the extent that each class may share in income for the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares. The dilutive effect of outstanding share-based awards is reflected in the diluted net income per share by application of the treasury stock method. |
Comprehensive income | Comprehensive income Comprehensive income includes net income, unrealized gain 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$65,673 and US$77,630, which were denominated in RMB, as of September 30, 2019 and 2020, respectively, representing 96.5% and 97.0% of the cash and cash equivalents as of September 30, 2019 and 2020, respectively. Concentration of credit risk Financial instruments 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 and 2020, substantially all of the Group’s cash and cash equivalents, restricted cash and short-term investments were deposited in financial institutions located in the PRC and Hong Kong. Accounts receivable are typically unsecured and are derived from revenues earned from customers in the PRC. The risk with respect to accounts receivable is mitigated by credit evaluations the Group performs on its customers and its ongoing monitoring process of outstanding balances. There are no revenues from customers which individually represent greater than 10% of the total net revenues for any year of the three years period ended September 30, 2020. |
Newly adopted accounting pronouncements | Newly adopted accounting pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public business entities, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and nonlease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. On October 1, 2019, the Group adopted the ASC 842, using the modified retrospective transition method resulting in the recording of operating lease ROU assets of US$36,514 and operating lease liabilities of US$33,167 upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The adoption of the new guidance had no effect on the consolidated statements of operations. Further information is disclosed in Note 2 and Note 21. 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 adopted this standard on October 1, 2019 with no material impact on the Group’s consolidated financial statements. |
Recently issued accounting pronouncements not yet adopted | Recently issued accounting pronouncements not yet adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Statements. This ASU requires a financial asset (or group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual rights to receive cash. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this ASU through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (that is, a modified-retrospective approach). In April 2019, ASU 2016-13 was updated with ASU 2019-04, which clarifies certain aspects of accounting for credit losses, hedging activities, and financial instruments. ASU 2019-04 provides certain alternatives for the measurement of the allowance for credit losses (ACL) on accrued interest receivable (AIR). These measurement alternatives include (1) measuring an ACL on AIR separately, (2) electing to provide separate disclosure of the AIR component of amortized cost as a practical expedient, and (3) making accounting policy elections to simplify certain aspects of the presentation and measurement of such AIR. For entities that have adopted ASU 2016-13, the amendments in ASU 2019-04 related to ASU 2016-13 are effective for fiscal years beginning after December 15, 2019, and interim periods therein. An entity may early adopt ASU 2019-04 in any interim period after its issuance if the entity has adopted ASU 2016-13. The Group is in the process of evaluating the impact of the adoption of these pronouncements on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the Board eliminated Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in this ASU on a prospective basis. An entity is required to disclose the nature of and reason for the change in accounting principle upon transition. A public business entity should adopt the amendments in this ASU for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. 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, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value”. ASU 2018-13 removes and modifies existing disclosure requirements on fair value measurement, namely regarding transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Additionally, ASU 2018-13 adds further disclosure requirements for Level 3 fair value measurements, specifically changes in unrealized gains and losses and other quantitative information. ASU 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Group is in the process of evaluating the impact of the adoption of this pronouncement on the Group’s consolidated financial statements. In October 2018, the FASB issued ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to the Related Party Guidance for Variable Interest Entities. ASU 2018-17 changes how entities evaluate decision-making fees under the variable interest entity guidance. To determine whether decision-making fees represent a variable interest, an entity considers indirect interests held through related parties under common control on a proportional basis, rather than in their entirety. This guidance is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. All entities are required to apply the amendments in this ASU retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Group is in the process of evaluating the impact of the adoption of this pronouncement on the Group’s consolidated financial statements. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Details of Company's Subsidiaries and Variable Interest Entities | As of September 30, 2020, details of the Company’s major subsidiaries, its VIEs and VIEs’ major subsidiaries were as follows: Company name Later of date of acquisition Place of incorporation /operation Percentage of Principal activities Major Subsidiaries: China Distance Education Limited (“CDEL March 13, 2003 Hong Kong 100% Investment holding and provision of education services Beijing Champion Distance Education January 5, 2004 PRC 100% Provision of technical support and consultancy services and course production Beijing Champion Education Technology Co., April 23, 2007 PRC 100% Software licensing and course production Beijing Zhengbao Yucai Education February 19, 2009 PRC 35.76% (Note Provision of start-up training services Xiamen NetinNet Software Co., Ltd (“Xiamen NetinNet”) May 3, 2016 PRC 28.608%* Provision of learning simulation software production Variable interest entities: Beijing Champion Hi-Tech Co., Ltd. (“Beijing Champion”) July 12, 2000 PRC Nil Provision of online education services and sales of books and reference materials Beijing Champion Healthcare Education May 13, 2015 PRC Nil Inactive Major subsidiaries of variable interest : Beijing Caikaowang Company Ltd. November 28, 2007 PRC Nil Provision of online education services Beijing Champion Wangge Education June 24, 2008 PRC Nil Provision of online education services Beijing Champion Culture Development Co., Ltd. (“Champion Culture”) June 03, 2015 PRC Nil Provision of 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 Beijing Ruida Chengtai Education Technology Co., Ltd. (“Beijing Ruida”) 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 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 *Note: The entity is the subsidiary of Zhengbao Yucai. |
Financial Information of Company's VIEs and VIEs' Subsidiaries | The following financial information of the Company’s VIEs and the VIEs’ subsidiaries as of September 30, 2019 and 2020 and for each of the three years ended September 30, 2020 was included in the accompanying consolidated financial statements after elimination of intercompany transactions and balances within the VIEs and the VIEs’ subsidiaries: As of September 30, 2019 2020 US$ US$ Cash and cash equivalents 39,919 67,257 Prepayment and other current assets 24,533 28,334 Total current assets 192,471 113,040 Total assets 314,943 271,168 Deferred revenue – current 93,364 104,929 Total current liabilities 137,478 174,978 Deferred revenue – non-current 33,564 33,928 Total non-current liabilities 36,004 64,007 Total liabilities 173,483 238,985 For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net revenues 151,146 183,893 197,110 Net income 29,532 36,393 33,439 Net cash provided by operating activities 44,054 41,568 29,294 Net cash used in investing activities (44,414 ) (20,517 ) (3,127 ) Net cash used in financing activities (5,706 ) — (1,713 ) Effects of exchange rate changes (555 ) (1,609 ) 2,884 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 3~5.5 years Copyrights 5~7 years Others 3.5~8 years |
Disaggregation of Revenue | The Group’s revenues are reported net of value added tax and surcharges. Disaggregation of net revenues for the year ended September 30, 2020 Over-time A point-in-time Total US$ US$ US$ Online education services 158,548 790 159,338 Books and reference materials — 22,061 22,061 Other professional education services 7,352 9,084 16,436 Professional education services 165,900 31,935 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 165,900 43,658 209,558 Refundable Non-refundable Total US$ US$ US$ Online education services 37,357 121,981 159,338 Books and reference materials — 22,061 22,061 Other professional education services — 16,436 16,436 Professional education services 37,357 160,478 197,835 Sales of learning simulation software — 9,516 9,516 Business start-up training services — 2,207 2,207 Total 37,357 172,201 209,558 Disaggregation of net revenues for the year ended September 30, 2019 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 and US as of October 1, 2018 and 2019, respectively, of which US$62,363 and US were recognized in revenues for the years ended September 30, 2019 and 2020, respectively. The balances of US$127,766 and US as of September 30, 2019 and 2020 are expected to be recognized as follows: The expected balances of deferred revenue as of September 30, 2020: US$ Years ending September 30, 2021 105,953 2022 27,003 2023 6,379 2024 470 2025 76 139,881 The expected balances of deferred revenue as of September 30, 2019: US$ Years ending September 30, 2020 94,202 2021 24,999 2022 7,288 2023 1,159 2024 118 127,766 |
BUSINESS ACQUISITIONS (Tables)
BUSINESS ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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. Year ended September 30, 2018 US$ Pro forma net revenues 27,568 Pro forma net income attributable to the Company 14 Pro forma net income per ordinary share-basic 0.09 Pro forma net income per ordinary share-diluted 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. Year September 30, 2018 US$ Pro forma net revenues 2,581 Pro forma net loss attributable to the Company (561 ) Pro forma net income per ordinary share-basic 0.09 Pro forma net income per ordinary share-diluted 0.09 |
Beijing Ruida Chengtai Education Technology Co., Ltd. ("Beijing Ruida") | |
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 1,639 Other current assets 9,578 Property, plant and equipment 118 5 years Intangible assets Supplier contracts 25,118 5.5 years Trademark 2,741 3 years Courseware 4,478 3.5 years Software 344 5.3 years Others 210 2.5-5.5 years Goodwill 48,931 Other current liabilities (684 ) Deferred tax liabilities (8,115 ) Noncontrolling interest (41,336 ) Total 43,022 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Short-term Investments | Short-term investments consisted of the following: As of September 30, 2019 2020 US$ US$ Held-to-maturity investments 1,517 — Available-for-sale investments 20,601 20,343 22,118 20,343 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accounts Receivable, Net | Accounts receivable, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Accounts receivable 8,612 8,018 Less: allowance for doubtful accounts (1,282 ) (1,864 ) Accounts receivable, net 7,330 6,154 |
Movement Of Allowance For Doubtful Accounts | Movement of allowance for doubtful accounts was as follows: As of September 30, 2019 2020 US$ US$ Balance at beginning of the year 1,342 1,282 (Reversal) provision of the allowance for doubtful accounts (8 ) 499 Foreign currency adjustment (52 ) 83 Balance at end of the year 1,282 1,864 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Inventories | Inventories consisted of the following: As of 2019 2020 US$ US$ Books and other goods 3,727 3,482 Paper and other raw materials 1,035 1,671 Less: inventory provisions for slow-moving and obsolescence (530 ) (290 ) Total 4,232 4,863 |
PREPAYMENT AND OTHER CURRENT _2
PREPAYMENT AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Prepayment And Other Current Assets | Prepayment and other current assets consisted of the following: As of September 30, Notes 2019 2020 US$ US$ Prepaid expenses 8,974 6,557 Capitalized commission fees (1 ) 4,974 8,440 Advance to suppliers (2 ) 3,938 4,799 Funds receivable (3 ) 2,364 4,349 Staff advances (4 ) 1,591 1,480 Receivable from disposal of a subsidiary (5 ) 1,540 1,621 Others 3,351 4,069 Prepayment and other current assets, net 26,732 31,315 (1) Capitalized commission fees primarily consist of the incremental sales commission relating to obtaining the customer contracts 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. As of September 30, 2020, the Group has not experienced any loss of advance 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 accounts or credit cards, 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 as of September 30, 2019 and 2020 was received on January 8, 2020 and January 8, 2021, respectively. |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Property, Plant And Equipment | Property, plant and equipment, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Buildings 8,756 9,216 Electronic and office equipment 20,069 20,107 Leasehold improvement and building improvement 10,843 15,935 Motor vehicles 2,086 2,294 Total 41,754 47,552 Less: Accumulated depreciation (17,454 ) (19,904 ) Construction in progress 13,635 14,683 37,935 42,331 |
GOODWILL, NET (Tables)
GOODWILL, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Goodwill | Goodwill, net, consisted of the following: For the years ended September 30 2019 2020 Professional Business start-up Sales of Total Professional Business start-up Sales of Total US$ US$ US$ US$ US$ US$ US$ US$ Gross amount Beginning balance 56,214 1,642 21,660 79,516 54,016 1,517 20,813 76,346 Exchange difference (2,198 ) (125 ) (847 ) (3,170 ) 3,040 — 1,097 4,137 Ending balance 54,016 1,517 20,813 76,346 57,056 1,517 21,910 80,483 Accumulated impairment loss — (1,517 ) — (1,517 ) — (1,517 ) — (1,517 ) Goodwill, net 54,016 — 20,813 74,829 57,056 — 21,910 78,966 |
OTHER INTANGIBLE ASSETS, NET (T
OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Composition Of Other Intangible Assets | The balance of other intangible assets, net, consisted of the following: As of September 30, 2019 2020 US$ US$ Computer software 5,858 6,452 Trademarks and domain names 5,429 5,730 Courseware 4,601 4,843 Business contracts 23,917 25,178 Copyrights 9,692 10,204 Others 871 918 Total intangible assets 50,368 53,325 Less: Accumulated amortization Computer software (4,316 ) (5,001 ) Trademarks and domain names (2,727 ) (3,790 ) Courseware (1,857 ) (3,213 ) Business contracts (5,667 ) (10,457 ) Copyrights (5,346 ) (7,227 ) Others (342 ) (476 ) Accumulated amortization (20,255 ) (30,164 ) Intangible assets, net 30,113 23,161 |
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$ 2021 8,551 2022 6,846 2023 5,841 2024 1,447 2025 273 2026 and thereafter 203 23,161 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Schedule of Long-term Investments | Long-term investments consisted of the following: As of September 30, 2019 2020 US$ US$ Equity securities without readily determinable fair value: Beijing teacheredu.cn Science & Technology Co., Ltd. (“Beijing teacheredu”) (a) 11,199 11,789 Other equity securities without readily determinable fair value 762 1,473 Equity method investments: Beijing Champion Yuanjian Education Technology Co., Ltd. (“Yuanjian”) (b) 2,488 3,012 Other equity method investments (c) 2,590 941 Available-for-sale securities investments: Chongqing Moses Robots Co., Ltd. (“Chongqing Moses Robots”) (d) 4,617 5,597 Beijing Niuke Technology Co., Ltd (“Niuke Technology”) (e) 2,434 2,353 Other available-for-sale investments (f) 1,289 1,159 Total 25,379 26,324 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 | Available-for-sale securities recorded in long-term investments included redeemable preferred shares. Available-for-sale securities recorded in short-term investments included certain financial products with early redemption options and no specified maturity dates. The Group has no financial liabilities that are measured at fair value on a recurring basis. The Group’s financial assets measured at fair value on a recurring basis are as follows: For the year ended September 30, 2020 Fair value Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Fair value measured Cash and cash equivalents 80,056 80,056 — — Short-term investments: Available-for-sale securities 20,343 — 20,343 — Long-term investments: Available-for-sale securities 9,109 — 2,353 6,756 Total assets measured at fair value 109,508 80,056 22,696 6,756 For the year ended September 30, 2019 Fair value Quoted prices in Significant Significant (Level 1) (Level 2) (Level 3) US$ US$ US$ US$ Fair value measured Cash and cash equivalents 67,977 67,977 — — Short-term investments: Available-for-sale securities 20,601 — 20,601 — Long-term investments: Available-for-sale securities 8,340 — 1,289 7,051 Total assets measured at fair value 96,918 67,977 21,890 7,051 |
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 using significant unobservable inputs (Level 3). Available-for-sale US$ Balance as of September 30, 2018 4,648 Transfer from L 2,327 Transfer to L (1,154 ) Unrealized gain 1,459 Exchange loss (229 ) Balance as of September 30, 2019 7,051 Transfer from L 1,289 Transfer to L (2,434 ) Unrealized gain 606 Exchange gain 244 Balance as of September 30, 2020 6,756 |
OTHER NON-CURRENT ASSETS (Table
OTHER NON-CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Other Non-Current Assets | Other non-current assets consisted of the following: As of September 30, Notes 2019 2020 US$ US$ Long-term prepaid expenses (1 ) 3,864 2,318 Rental deposits (2 ) 1,017 1,244 Long-term capitalized commission fees (3 ) 3,251 3,043 Long-term receivables 1,540 — Others 420 884 10,092 7,489 (1) Long-term prepaid expenses represent golf club membership fees. Such fees are are (2) Rental deposits represent office rental deposits for the Group’s daily operations, which will not be refunded within one year. (3) Long-term capitalized commission fees primarily consist of the long-term incremental sales commission relating to obtaining the customer contract s |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consisted of the following: As of September 30, Note 2019 2020 US$ US$ Tuition fee payable to government agencies (1 ) 12,971 24,109 Salary and welfare payable 8,691 10,577 Accrued expenses 8,317 11,386 Remuneration payable to lecturers 2,701 4,648 Uncertain income tax liabilities (Note 19) 152 160 Other payable 5,435 4,574 38,267 55,454 (1) Tuition fee payable to government agencies mainly represents the portion of tuition fee s s s |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Income Before Income Taxes | Income before income taxes consisted of: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Non - PRC (656 ) (3,332 ) (12,574 ) PRC 15,438 29,131 26,726 14,782 25,799 14,152 |
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: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Current tax expense s 5,717 7,060 10,543 Deferred tax (benefit) expense s (3,410 ) 1,061 (5,083 ) 2,307 8,121 5,460 |
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 the For the years ended September 30, 2018 2019 2020 US$ US$ US$ Income before taxes 14,782 25,799 14,152 Income tax expense s 3,696 6,450 3,538 Effect of different tax rates in different jurisdictions 770 704 3,010 Non-deductible expenses 152 1,059 1,362 Effect of tax holidays (2,610 ) (1,934 ) (2,148 ) Effect of valuation allowances 285 1,232 184 Withholding tax on undistributed earnings 313 689 141 Income tax reversal (299 ) (79 ) (627 ) 2,307 8,121 5,460 Effective income tax rate 15.61 % 31.48 % 38.58 % |
Aggregate Amount and per Share Effect of Tax Holidays | The aggregate amount and per share effect of the tax holidays are as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ The aggregate amount of tax holidays 2,610 1,934 2,148 The aggregate increase - Basic 0.02 0.01 0.02 - Diluted 0.02 0.01 0.02 |
Components of Deferred Taxes | The components of deferred taxes are as follows: As of September 30, 2019 2020 US$ US$ Deferred tax assets Advertising expenses carry-forwards — 1,652 Accrued expenses 984 1,618 Allowance for doubtful accounts 1,031 1,073 Impairment loss from long-term investments 1,178 1,472 Property, plant and equipment 103 104 Net operating loss carry-forwards 2,811 4,585 6,107 10,504 Less: valuation allowance (2,242 ) (2,616 ) Total deferred tax assets Deferred tax assets, net 3,865 5,690 Deferred tax liabilities Intangible assets 7,085 5,488 Withholding tax on undistributed earnings 3,556 133 Unrealized gain on available-for-sale investments 647 760 Capitalized commission fees 1,407 1,905 Total deferred tax liabilities 12,695 8,286 Deferred tax liabilities, net 12,695 6,088 |
Reconciliation of Accrued Unrecognized Tax Benefits | Reconciliation of accrued unrecognized tax benefits is as follows: Unrecognized US$ Balance as of September 30, 2018 158 Foreign currency adjustment (6 ) Balance as of September 30, 2019 152 Foreign currency adjustment 8 Balance as of September 30, 2020 160 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Supplemental Information Related to Operating Lease | Supplemental cash flow information related to the operating lease s For the year ended US$ Cash payments for the operating leases 6,592 ROU assets obtained in exchange for the new operating lease liabilities 29 |
Summary of Lessee Operating Lease Liability Maturity | A summary of maturity analysis of the annual undiscounted cash flows for the operating lease liabilities as of September 30, 2020 is as follows: US$ Years ending September 30, 2021 5,411 2022 4,986 2023 4,579 2024 4,666 2025 3,931 2026 and thereafter 8,806 Total future lease payments 32,379 Less: Imputed interest (5,130 ) Present value of operating lease liabilities 27,249 |
Operating Lease Commitments | As of September 30, 2019, the future minimum lease payments under the Group’s non-cancelable operating lease agreements based on ASC 840 are as follow: US$ Years ending September 30, 2020 9,225 2021 5,169 2022 3,775 2023 3,701 2024 3,805 2025 and thereafter 21,195 Total future lease payments 46,870 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Summary of Changes in Noncontrolling Interest | The following table presents the changes in the Company’s noncontrolling interests during the years ended September 30, 2018, 2019 and 2020. Zhengbao NetinNet Jiangsu Beijing Total US$ US$ US$ US$ US$ 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 Capital contribution from noncontrolling interest shareholders — 367 — — 367 Foreign currency translation adjustment attributed to noncontrolling interest shareholders 426 531 53 1,516 2,526 Cash dividends paid to noncontrolling interests by a subsidiary — (847 ) — (1,699 ) (2,546 ) (Loss) gain attributed to noncontrolling interest shareholders (1,017 ) 506 101 (1,883 ) (2,293 ) Balance as of September 30, 2020 8,121 10,421 1,119 29,308 48,969 |
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: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net income attributable to the Company 11,626 21,254 10,430 Transfers from noncontrolling interest: Increase in the Group’s additional paid-in capital in relation to capital contribution made by Jiangsu Asset’s noncontrolling interest 29 — — 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 the Company’s shareholders and transfer from noncontrolling interests 11,655 22,064 10,430 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
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 revenues, operating costs and expenses, and operating income. Net revenues, operating costs and expenses, operating income, and total assets by segment were as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Net revenues 166,668 211,822 209,558 Professional education services 150,484 196,047 197,835 Business start-up training services 4,608 2,796 2,207 Sales of learning simulation software 11,576 12,979 9,516 Operating costs and expenses: Cost of sales (87,883 ) (104,741 ) (101,598 ) Professional education services (79,168 ) (96,044 ) (94,162 ) Business start-up training services (2,644 ) (1,777 ) (1,033 ) Sales of learning simulation software (6,071 ) (6,920 ) (6,403 ) Selling and marketing (44,717 ) (61,460 ) (69,848 ) Professional education services (39,698 ) (56,334 ) (65,474 ) Business start-up training services (1,127 ) (1,226 ) (915 ) Sales of learning simulation software (3,892 ) (3,900 ) (3,459 ) General and administrative (16,760 ) (20,064 ) (18,528 ) Professional education services (14,548 ) (16,745 ) (16,773 ) Business start-up training services (896 ) (1,930 ) (584 ) Sales of learning simulation software (1,316 ) (1,389 ) (1,171 ) Impairment of goodwill — (1,517 ) — Business start-up training services — (1,517 ) — Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) Total operating costs and expenses (153,853 ) (192,637 ) (196,924 ) Professional education services (133,414 ) (169,123 ) (176,409 ) Business start-up training services (4,667 ) (6,450 ) (2,532 ) Sales of learning simulation software (11,279 ) (12,209 ) (11,033 ) Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) Other operating income 3,051 2,968 6,155 Professional education services 643 1,053 4,976 Business start-up training services 76 102 5 Sales of learning simulation software 2,332 1,813 1,174 Operating income (loss) 15,950 22,848 18,789 Professional education services 17,797 28,672 26,402 Business start-up training services 17 (3,552 ) (320 ) Sales of learning simulation software 2,629 2,583 (343 ) Unallocated corporate expenses (4,493 ) (4,855 ) (6,950 ) For the years ended September 30, 2018 2019 2020 US$ US$ US$ Segment assets 328,925 355,350 398,139 Professional education services 236,496 273,005 307,054 Business start-up training services 46,205 36,735 40,865 Sales of learning simulation software 46,224 45,610 50,220 Total assets 328,925 355,350 398,139 Amortization and depreciation 6,299 12,723 13,215 Professional education services 4,479 10,939 11,481 Business start-up training services 36 69 60 Sales of learning simulation software 1,784 1,715 1,674 (Loss) gain from equity method investments (172 ) (1,484 ) (555 ) Professional education services 58 (1,173 ) (555 ) Business start-up training services (230 ) (311 ) — |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Basic and diluted net income per share | Basic and diluted net income per share for each of the periods presented were calculated as follows: For the years ended September 30, 2018 2019 2020 US$ US$ US$ Numerator: Net income 11,626 21,254 10,430 - allocated to ordinary share - basic 11,583 21,117 10,352 - allocated to nonvested share - basic 43 137 78 Denominator: Weighted average number of ordinary shares outstanding 132,363,620 133,060,900 133,984,929 Weighted average number of nonvested share 487,685 862,436 1,010,719 Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method 265,850 214,781 236,576 Weighted average ordinary shares outstanding used in computing diluted net income per share 133,117,155 134,138,117 135,232,224 Basic net income per share 0.09 0.16 0.08 Basic net income per nonvested share 0.09 0.16 0.08 Diluted net income per share 0.09 0.16 0.08 Diluted net income per nonvested share 0.09 0.16 0.08 |
SHARE INCENTIVE PLAN (Tables)
SHARE INCENTIVE PLAN (Tables) | 12 Months Ended |
Sep. 30, 2020 | |
Summary of Option Activity | A summary of the share options granted to employees and non-ex e Share option granted to employees and non-executive Number of Weighted- Weighted- Aggregated US$ US$ Outstanding as of September 30, 2017 2,025,600 2.85 6.53 — Exercised (895,148 ) 1.66 Forfeited (71,352 ) 1.17 Outstanding as of September 30, 2018 1,059,100 1.39 5.58 718 Forfeited (19,000 ) 1.81 5.14 — Outstanding as of September 30, 2019 1,040,100 1.39 4.57 — Forfeited (71,100 ) 0.98 2.85 — Outstanding as of September 30, 2020 969,000 1.29 3.62 1,067 Expected to vest as of 0 — — — — Exercisable as of September 30, 2020 969,000 1.29 3.62 1,067 |
Share Options, NonEmployees | During the year ended September 30, 2018, all outstanding share options granted to non-employees in total of 57,000 shares were fully exercised. There were no s |
Summary of Nonvested Restricted Shares Activities | A summary of the nonvested share activities for the years ended September 30, 2018, 2019 and 2020 is as follows: Number of Weight average Aggregated US$ US$ Nonvested shares outstanding as of September 30, 2017 328,390 3.44 551 Granted 468,600 2.29 Vested (346,493 ) 3.11 Nonvested shares outstanding as of September 30, 2018 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 September 30, 2019 706,840 1.84 965 Granted 1,109,688 2.08 — Vested (1,089,404 ) 1.96 — Nonvested shares outstanding as of September 30, 2020 727,124 2.03 1,741 Nonvested shares expected to vest as of September 30, 2020 727,124 2.03 1,741 |
Share-Based Compensation Expense of Share-Based Awards Granted | Total share-based compensation expense s As of September 30, 2018 2019 2020 US$ US$ US$ Cost of sales 161 23 139 General and administrative expenses 2,065 1,972 2,421 Selling expenses 80 10 58 2,306 2,005 2,618 |
Details of Subsidiaries and Var
Details of Subsidiaries and Variable Interest Entities (Detail) | 12 Months Ended | |
Sep. 30, 2020 | ||
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 | |
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 | |
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 | |
Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 3, 2016 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | 28.608% | [1] |
Principal activities | Provision of learning simulation software production | |
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jul. 12, 2000 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services and sales of books and reference materials | |
Beijing Champion Healthcare Education Technology Co., Ltd. (''Champion Healthcare Education''') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | May 13, 2015 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Inactive | |
Beijing Caikaowang Company Ltd. (''Caikaowang'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Nov. 28, 2007 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Beijing Champion Wangge Education Technology Co., Ltd. (''Champion Wangge'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jun. 24, 2008 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of online education services | |
Beijing 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 | |
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd. (''Jiangsu Asset) | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Nov. 1, 2017 | |
Place of establishment | PRC | |
Percentage of legal ownership by the Company | ||
Principal activities | Provision of financial and tax advisory and accounting service | |
Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | People's Republic of China | ||
Subsidiaries And Variable Entities [Line Items] | ||
Date of establishment | Jul. 11, 2018 | |
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 | Jul. 11, 2018 | |
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, 2019 | |
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, 2020 | Sep. 30, 2019 | |
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 | 68.00% | 57.00% |
Percent of liabilities | 88.00% | 75.00% |
Financial Information of Compan
Financial Information of Company's VIEs and VIEs' Subsidiaries (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | $ 80,056 | $ 67,977 | |
Prepayment and other current assets | 31,315 | 26,732 | |
Total current assets | 165,114 | 168,689 | |
Total assets | 398,139 | 355,350 | $ 328,925 |
Deferred revenue – current | 105,953 | 94,202 | |
Total current liabilities | 189,488 | 182,905 | |
Deferred revenue – non-current | 33,928 | 33,564 | |
Total non-current liabilities | 81,707 | 48,699 | |
Total liabilities | 271,195 | 231,604 | |
Net cash provided by operating activities | 40,961 | 81,795 | 50,094 |
Net cash used in investing activities | (16,149) | (25,058) | (55,497) |
Net cash used in financing activities | (40,254) | (24,219) | (3,302) |
Consolidated VIE | |||
Variable Interest Entity [Line Items] | |||
Cash and cash equivalents | 67,257 | 39,919 | |
Prepayment and other current assets | 28,334 | 24,533 | |
Total current assets | 113,040 | 192,471 | |
Total assets | 271,168 | 314,943 | |
Deferred revenue – current | 104,929 | 93,364 | |
Total current liabilities | 174,978 | 137,478 | |
Deferred revenue – non-current | 33,928 | 33,564 | |
Total non-current liabilities | 64,007 | 36,004 | |
Total liabilities | 238,985 | 173,483 | |
Net revenues | 197,110 | 183,893 | 151,146 |
Net income | 33,439 | 36,393 | 29,532 |
Net cash provided by operating activities | 29,294 | 41,568 | 44,054 |
Net cash used in investing activities | (3,127) | (20,517) | (44,414) |
Net cash used in financing activities | (1,713) | (5,706) | |
Effects of exchange rate changes | $ 2,884 | $ (1,609) | $ (555) |
Property, Plant and Equipment E
Property, Plant and Equipment Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Sep. 30, 2020 | |
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 ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 01, 2019 | Oct. 01, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment loss | $ 1,517 | ||||
Impairment loss on equity method investment | 910 | 6,374 | 343 | ||
Impairment loss on available-for-sale securities investments | 0 | 0 | 2,492 | ||
Operating lease right of use asset | 30,029 | $ 36,514 | |||
Operating lease liabilities | 27,249 | 33,167 | |||
Advertising expenses | 28,608 | 23,668 | 14,785 | ||
Cost of sales | 101,598 | 104,741 | 87,883 | ||
Cash and cash equivalents, denominated in RMB | $ 77,630 | $ 65,673 | |||
Foreign currency risk, cash and cash equivalents, represented amount, percent | 97.00% | 96.50% | |||
Impairment loss on equity method investment without readily determinable fair value | $ 0 | $ 546 | 0 | ||
Amortization of contract costs | 10,974 | 6,166 | |||
Deferred Revenue | 139,881 | 127,766 | 127,766 | $ 80,560 | |
Refund Liability amount | 4,331 | $ 2,875 | |||
Deferred revenue recognized | 75,378 | 62,363 | |||
Other Noncurrent Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Capitalized cost of obtaining contracts with customers | 3,043 | 3,251 | |||
Prepayaments And Other Current Assets And Non Current Assets [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Capitalized cost of obtaining contracts with customers | 8,440 | 4,974 | |||
Shipping and Handling | |||||
Significant Accounting Policies [Line Items] | |||||
Cost of sales | $ 3,168 | $ 3,154 | $ 1,852 | ||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of voting rights of stock | 20.00% | ||||
Term deposits maturity term | 3 months | ||||
Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Percentage of voting rights of stock | 50.00% | 50.00% | |||
Term deposits maturity term | 1 year | ||||
Beijing Champion Hi-Tech Co., Ltd. (''Beijing Champion'') | |||||
Significant Accounting Policies [Line Items] | |||||
Business tax and related surcharges, percent | 6.00% | 6.00% | 6.00% | ||
Business tax and related surcharges, amount | $ 436 | $ 1,172 | $ 1,075 | ||
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, 2020 | |
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 6 months |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 209,558 | $ 211,822 | $ 166,668 |
Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 37,357 | 22,465 | |
Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 172,201 | 189,357 | |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 165,900 | 158,300 | |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 43,658 | 53,552 | |
Professional education services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 197,835 | 196,047 | 150,484 |
Professional education services | Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 37,357 | 22,465 | |
Professional education services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 160,478 | 173,582 | |
Professional education services | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 165,900 | 158,300 | |
Professional education services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 31,935 | 37,747 | |
Sales of learning simulation software | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9,516 | 12,979 | 11,576 |
Sales of learning simulation software | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9,516 | 12,979 | |
Sales of learning simulation software | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 9,516 | 12,979 | |
Business start-up training services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,207 | 2,796 | 4,608 |
Business start-up training services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,207 | 2,796 | |
Business start-up training services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 2,207 | 2,796 | |
Online education services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 159,338 | 145,917 | 117,026 |
Online education services | Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 37,357 | 22,465 | |
Online education services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 121,981 | 123,452 | |
Online education services | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 158,548 | 144,221 | |
Online education services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 790 | 1,696 | |
Books and reference materials | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,061 | 27,372 | $ 10,213 |
Books and reference materials | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,061 | 27,372 | |
Books and reference materials | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 22,061 | 27,372 | |
Other professional education services | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 16,436 | 22,758 | |
Other professional education services | Non Refundable Course Model | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 16,436 | 22,758 | |
Other professional education services | Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 7,352 | 14,079 | |
Other professional education services | Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 9,084 | $ 8,679 |
Summary Of Deferred Revenue Exp
Summary Of Deferred Revenue Expected To Be Realized (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 | Sep. 30, 2019 | Oct. 01, 2018 |
Accounting Policies [Abstract] | ||||
2020 | $ 94,202 | |||
2021 | $ 105,953 | 24,999 | ||
2022 | 27,003 | 7,288 | ||
2023 | 6,379 | 1,159 | ||
2024 | 470 | 118 | ||
2025 | 76 | |||
Total | $ 139,881 | $ 127,766 | $ 127,766 | $ 80,560 |
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 ($) | Sep. 30, 2018USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Apr. 26, 2019USD ($) | Apr. 26, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Jul. 31, 2018 | Jul. 10, 2018CNY (¥) | Jun. 30, 2017CNY (¥) |
Business Acquisition [Line Items] | |||||||||||||||||||
Goodwill | $ 74,829 | $ 78,966 | |||||||||||||||||
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 | $ 1,746 | ¥ 12 | $ 1,048 | ¥ 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% | 40.00% | ||||||||||||||
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, 2020 | Sep. 30, 2019 |
Intangible assets | ||||
Goodwill | $ 78,966 | $ 74,829 | ||
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) $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 30, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Pro forma net revenues | $ | $ 27,568 |
Pro forma net loss attributable to the Company | $ | $ 14 |
Pro forma net income per ordinary share-basic | $ / shares | $ 0.09 |
Pro forma net income per ordinary share-diluted | $ / shares | $ 0.09 |
Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |
Business Acquisition [Line Items] | |
Pro forma net revenues | $ | $ 2,581 |
Pro forma net loss attributable to the Company | $ | $ (561) |
Pro forma net income per ordinary share-basic | $ / shares | $ 0.09 |
Pro forma net income per ordinary share-diluted | $ / shares | $ 0.09 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
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, 2020 | Sep. 30, 2019 |
Schedule of Investments [Line Items] | ||
Short-term investments | $ 20,343 | $ 22,118 |
Held-to-maturity securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | 1,517 | |
Available-for-sale securities | ||
Schedule of Investments [Line Items] | ||
Short-term investments | $ 20,343 | $ 20,601 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable | $ 8,018 | $ 8,612 |
Less: allowance for doubtful accounts | (1,864) | (1,282) |
Accounts receivable, net | $ 6,154 | $ 7,330 |
Movement of Allowance For Doubt
Movement of Allowance For Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||
Balance at beginning of the year | $ 1,282 | $ 1,342 |
(Reversal) provision of the allowance for doubtful accounts | 499 | (8) |
Foreign currency adjustment | 83 | (52) |
Balance at end of the year | $ 1,864 | $ 1,282 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Inventory [Line Items] | ||
Books and other goods | $ 3,482 | $ 3,727 |
Paper and other raw materials | 1,671 | 1,035 |
Less: inventory provisions for slow-moving and obsolescence | (290) | (530) |
Total | $ 4,863 | $ 4,232 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Inventory [Line Items] | |||
Inventory provisions | $ 1,069 | $ 1,090 | $ 15 |
Prepayment and Other Current _3
Prepayment and Other Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Prepaid Expense and Other Assets, Current [Abstract] | |||
Prepaid expenses | $ 6,557 | $ 8,974 | |
Capitalized commission fees | [1] | 8,440 | 4,974 |
Advance to suppliers | [2] | 4,799 | 3,938 |
Funds receivable | [3] | 4,349 | 2,364 |
Staff advances | [4] | 1,480 | 1,591 |
Receivable from disposal of a component | [5] | 1,621 | 1,540 |
Others | 4,069 | 3,351 | |
Prepayment and other current assets, net | $ 31,315 | $ 26,732 | |
[1] | Capitalized commission fees primarily consist of the incremental sales commission relating to obtaining the customer contracts 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. As of September 30, 2020, the Group has not experienced any loss of advance 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 accounts or credit cards, 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 as of September 30, 2019 and 2020 was received on January 8, 2020 and January 8, 2021, respectively. |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 47,552 | $ 41,754 |
Less: Accumulated depreciation | (19,904) | (17,454) |
Construction in progress | 14,683 | 13,635 |
Property, Plant and Equipment, Net | 42,331 | 37,935 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Total | 9,216 | 8,756 |
Electronic And Office Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 20,107 | 20,069 |
Leasehold Improvement And Building Improvement | ||
Property, Plant and Equipment [Line Items] | ||
Total | 15,935 | 10,843 |
Motor vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,294 | $ 2,086 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expenses | $ 4,649 | $ 3,958 | $ 3,069 |
Goodwill, Net (Detail)
Goodwill, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Line Items] | ||
Beginning balance | $ 76,346 | $ 79,516 |
Exchange difference | 4,137 | (3,170) |
Ending balance | 80,483 | 76,346 |
Accumulated impairment loss | (1,517) | (1,517) |
Goodwill, net | 78,966 | 74,829 |
Professional Education Services | ||
Goodwill [Line Items] | ||
Beginning balance | 54,016 | 56,214 |
Exchange difference | 3,040 | (2,198) |
Ending balance | 57,056 | 54,016 |
Goodwill, net | 57,056 | 54,016 |
Beijing Haidian District Champion Training School (''Beijing Training School'') | Zhengbao Yucai and subsidiaries | Business Startup Training Service | ||
Goodwill [Line Items] | ||
Beginning balance | 1,517 | 1,642 |
Exchange difference | (125) | |
Ending balance | 1,517 | 1,517 |
Accumulated impairment loss | (1,517) | (1,517) |
Nanjing Champion Vocational Training School (''Nanjing Training School'') | Xiamen NetinNet and subsidiaries | Sale of Learning Simulation Software | ||
Goodwill [Line Items] | ||
Beginning balance | 20,813 | 21,660 |
Exchange difference | 1,097 | (847) |
Ending balance | 21,910 | 20,813 |
Goodwill, net | $ 21,910 | $ 20,813 |
Goodwill, Net - Additional Info
Goodwill, Net - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Line Items] | |||
Impairment loss on goodwill | $ 1,517,000 | ||
Business start-up training services | |||
Goodwill [Line Items] | |||
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, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 53,325 | $ 50,368 |
Less: Accumulated amortization | (30,164) | (20,255) |
Other intangible assets, Net | 23,161 | 30,113 |
Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 6,452 | 5,858 |
Less: Accumulated amortization | (5,001) | (4,316) |
Trademarks and domain names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 5,730 | 5,429 |
Less: Accumulated amortization | (3,790) | (2,727) |
Courseware | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 4,843 | 4,601 |
Less: Accumulated amortization | (3,213) | (1,857) |
Business Contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 25,178 | 23,917 |
Less: Accumulated amortization | (10,457) | (5,667) |
Copyrights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 10,204 | 9,692 |
Less: Accumulated amortization | (7,227) | (5,346) |
Others | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | 918 | 871 |
Less: Accumulated amortization | $ (476) | $ (342) |
Other Intangible Assets, Net -
Other Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 8,566 | $ 8,765 | $ 3,230 |
Estimated Amortization Expenses
Estimated Amortization Expenses for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
2021 | $ 8,551 | |
2022 | 6,846 | |
2023 | 5,841 | |
2024 | 1,447 | |
2025 | 273 | |
2026 and thereafter | 203 | |
Other intangible assets, Net | $ 23,161 | $ 30,113 |
Summary of Long-term Investment
Summary of Long-term Investments (Detail) $ in Thousands, ¥ in Millions | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Nov. 17, 2017USD ($) | Nov. 17, 2017CNY (¥) | |
Available-for-sale securities investments: | |||||
Total | $ 26,324 | $ 25,379 | |||
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] | 11,789 | 11,199 | ||
Other equity securities without readily determinable fair value | |||||
Equity securities without readily determinable fair value: | |||||
Equity securities without readily determinable fair value amount | 1,473 | 762 | |||
Beijing Champion Yuanjian Education Technology Co., Ltd. ("Yuanjian") | |||||
Equity method investment: | |||||
Equity method investments | [2] | 3,012 | 2,488 | ||
Other equity method investments | |||||
Equity method investment: | |||||
Equity method investments | [3] | 941 | 2,590 | ||
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 | [4] | 5,597 | 4,617 | ||
Beijing Niuke Technology Co., Ltd ("Niuke Technology") | |||||
Available-for-sale securities investments: | |||||
Available-for-sale securities investments | [5] | 2,353 | 2,434 | ||
Other available-for-sale investments | |||||
Available-for-sale securities investments: | |||||
Available-for-sale securities investments | [6] | $ 1,159 | $ 1,289 | ||
[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 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, 2018, 2019 and 2020, no impairment loss was recorded in regard to the investment. | ||||
[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$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. During the years ended September 30, 2019 and 2020, the Group recorded share of net (loss) income amounting US$(658) and US$386, respectively. | ||||
[3] | The other equity method investments represent several insignificant investments classified as equity method investments as of September 30, 2019 and 2020. During the years ended September 30, 2018, 2019 and 2020, the Group recorded share of net income (loss) amounting US$61, US$(47) and US$(941), respectively. During the years ended September 30, 2018, 2019 and 2020, the Group recorded impairment loss from long-term investments amounting to nil, nil and US$910, respectively. | ||||
[4] | 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$1,070 and US$626 was reported in other comprehensive loss for the years ended September 30, 2019 and 2020, respectively. | ||||
[5] | 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 (loss) of US$170 and US$(178) were reported in other comprehensive income (loss) for the years ended September 30, 2019 and 2020, respectively. | ||||
[6] | Other investments represent several insignificant investments classified as available-for-sale investments as of September 30, 2019 and 2020. Unrealized holding gains (loss) of US$135 and US$(130) were reported in other comprehensive income (loss) for the years ended September 30, 2019 and 2020, respectively. |
Summary of Long-term Investme_2
Summary of Long-term Investments (Parenthetical) (Detail) $ in Thousands, ¥ in Millions | Dec. 29, 2018USD ($) | Dec. 29, 2018CNY (¥) | Apr. 30, 2018USD ($) | Apr. 30, 2018CNY (¥) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Oct. 31, 2020 | Dec. 27, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Nov. 17, 2017USD ($) | Nov. 17, 2017CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2016CNY (¥) | |
Investment Holdings [Line Items] | ||||||||||||||||
Net investment loss | $ (555) | $ (1,484) | $ (172) | |||||||||||||
Unrealized holding gain in other comprehensive income | 318 | 1,375 | 2,599 | |||||||||||||
Impairment loss on equity method investment | $ 910 | 6,920 | $ 2,835 | |||||||||||||
Share Transfer Agreement [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Percentage of ownership interest | 40.00% | 40.00% | 40.00% | |||||||||||||
Percentage Of Transfer Of Equity Ownership | 40.00% | 40.00% | ||||||||||||||
Equity Method Investmenst Consideration For Transfers | $ 5,020 | ¥ 35.9 | ||||||||||||||
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% | 5.00% | ||||||||||||||
Unrealized holding gain in other comprehensive income | $ 626 | 1,070 | ||||||||||||||
Beijing Teacheredu [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Equity ownership interest | 14.50% | 14.50% | ||||||||||||||
Equity method inverstments | $ 11,119 | ¥ 80 | ||||||||||||||
Beijing Teacheredu [Member] | Subsequent Event [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Equity ownership interest | 13.80% | |||||||||||||||
Niuke Technology [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Equity ownership interest | 3.00% | 3.00% | 10.65% | 8.50% | 8.50% | |||||||||||
Contingent consideration | $ 655 | ¥ 4.5 | ||||||||||||||
Equity method inverstments | $ 639 | ¥ 4.3 | ||||||||||||||
Unrealized holding gain in other comprehensive income | 178 | 170 | ||||||||||||||
Other Investments [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Net investment loss | (941) | (47) | $ 61 | |||||||||||||
Unrealized holding gain in other comprehensive income | (130) | 135 | ||||||||||||||
Impairment loss on equity method investment | 910 | 0 | $ 0 | |||||||||||||
Beijing Champion Yuanjian Education Technology Co [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Net investment loss | 386 | (658) | ||||||||||||||
Equity method inverstments | [1] | $ 3,012 | $ 2,488 | |||||||||||||
Maximum | Beijing Champion Yuanjian Education Technology Co [Member] | ||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||
Percentage Of Transfer Of Equity Ownership | 60.00% | 60.00% | ||||||||||||||
[1] | 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$5,020) (refer to note 17). Upon the completion of the share transfer, the Group holds 40% of the Champion Tax Advisory, which was subsequently renamed as Yuanjian. The Group maintains significant influence over Yuanjian, and therefore, the remaining 40% equity interest retained was accounted for as an equity method investment. During the years ended September 30, 2019 and 2020, the Group recorded share of net (loss) income amounting US$(658) and US$386, respectively. |
Available-For-Sale Securities R
Available-For-Sale Securities Recorded in Long-Term Investments Included Redeemable Preferred Shares, Call Option and Contingent Consideration Payable Measured and Recorded At Fair Value Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 20,343 | $ 22,118 |
Long-term investments | 26,324 | 25,379 |
Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 20,343 | 20,601 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 80,056 | 67,977 |
Total assets measured at fair value | 109,508 | 96,918 |
Fair Value, Measurements, Recurring | Available-for-sale securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 20,343 | 20,601 |
Long-term investments | 9,109 | 8,340 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 80,056 | 67,977 |
Total assets measured at fair value | 80,056 | 67,977 |
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 | 22,696 | 21,890 |
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 | 20,343 | 20,601 |
Long-term investments | 2,353 | 1,289 |
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 | 6,756 | 7,051 |
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 | $ 6,756 | $ 7,051 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers between level 1 and level 2 fair value measurements | $ 0 | ||
Impairment loss related to investments, goodwill and acquired intangible assets | 0 | $ 1,517 | $ 0 |
Impairment loss on equity method investment | 910 | 6,374 | 343 |
Impairment loss on equity method investment without readily determinable fair value | 0 | 546 | 0 |
Impairment losses related to acquired intangible assets | 0 | 0 | 0 |
Goodwill impairment loss | $ 1,517 | ||
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial liabilities at fair value | $ 0 | ||
Measurement Input, Price Volatility | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.516 | 0.446 | |
Measurement Input, Price Volatility | Level 3 | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 0.569 | 0.575 | |
Measurement Input, Discount Rate | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 15 | 30 | |
Measurement Input, Discount Rate | Level 3 | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Discount rate | 34 | ||
Measurement Input, Expected Term | Level 3 | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Expected life of investment | 2 years 1 month 6 days | ||
Expected life of investment | 3 years 1 month 6 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 | 2 years 3 months 18 days | ||
Expected life of investment | 3 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, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 7,051 | $ 4,648 |
Transfer from level 2 fair value measurements | 1,289 | 2,327 |
Transfer to level 2 fair value measurement | (2,434) | (1,154) |
Unrealized gain | 606 | 1,459 |
Exchange gain | 244 | |
Exchange loss | (229) | |
Ending balance | $ 6,756 | $ 7,051 |
Other Non-Current Assets (Detai
Other Non-Current Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Other Assets Noncurrent [Line Items] | |||
Long-term prepaid expenses | [1] | $ 2,318 | $ 3,864 |
Rental deposits | [2] | 1,244 | 1,017 |
Long-term capitalized commission fees | [3] | 3,043 | 3,251 |
Long-term receivables | 0 | 1,540 | |
Others | 884 | 420 | |
Other Assets, Miscellaneous, Total | $ 7,489 | $ 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] | 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) | 12 Months Ended |
Sep. 30, 2020 | |
Other Assets Noncurrent [Line Items] | |
Period over which golf club membership fee is valid | 10 years |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | |
Accrued Expenses and Other Current Liabilities [Line Items] | |||
Tuition fee payable to government agencies | [1] | $ 24,109 | $ 12,971 |
Salary and welfare payable | 10,577 | 8,691 | |
Accrued expenses | 11,386 | 8,317 | |
Remuneration payable to lecturers | 4,648 | 2,701 | |
Uncertain income tax liabilities (Note 19) | 160 | 152 | |
Other payable | 4,574 | 5,435 | |
Accrued expenses and other liabilities | $ 55,454 | $ 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. |
Bank Borrowings - Additional In
Bank Borrowings - Additional Information (Detail) $ in Thousands, ¥ in Millions | Apr. 14, 2022USD ($) | Oct. 14, 2021USD ($) | Apr. 14, 2021USD ($) | Apr. 15, 2020CNY (¥) | Mar. 31, 2020USD ($) | Mar. 27, 2020USD ($) | Jan. 14, 2020USD ($) | Dec. 14, 2019USD ($) | Dec. 13, 2019USD ($) | Nov. 30, 2019USD ($) | Nov. 22, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 14, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 26, 2019CNY (¥) | Jun. 14, 2019USD ($) | Jun. 06, 2019 | May 24, 2019CNY (¥) | May 24, 2019USD ($) | May 17, 2019USD ($) | Dec. 20, 2018 | Dec. 14, 2018 | Nov. 30, 2018USD ($) | Jun. 22, 2018USD ($) | Jan. 31, 2018CNY (¥) | Jan. 31, 2018USD ($) | Jan. 05, 2018USD ($) | Dec. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Jul. 19, 2017CNY (¥) | Jul. 19, 2017USD ($) | Jun. 22, 2015CNY (¥) | Jun. 27, 2019CNY (¥) | Sep. 30, 2020CNY (¥) | Sep. 30, 2020USD ($) | Apr. 15, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 26, 2019USD ($) | Jun. 25, 2019CNY (¥) | Jun. 25, 2019USD ($) | Oct. 23, 2018USD ($) | Jan. 05, 2018CNY (¥) | Jan. 05, 2018USD ($) | Dec. 18, 2017CNY (¥) | Dec. 18, 2017USD ($) | Jul. 21, 2017 |
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 15,081 | ¥ 300 | ¥ 115.2 | ||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | ¥ | ¥ 134.7 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | $ 12,100 | $ 1,100 | $ 6,000 | $ 8,000 | ¥ 35 | $ 5,073 | ¥ 47 | $ 6,843 | |||||||||||||||||||||||||||||||||||||||
Long term bank borrowing, fair value | $ 15,981 | $ 0 | |||||||||||||||||||||||||||||||||||||||||||||
Bank borrowing, fair value | 4,012 | 38,502 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||
Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 30,300 | $ 40,000 | ¥ 115.2 | 20,000 | $ 48,300 | ||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, effective period | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 8,300 | $ 6,900 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Repayment | 8,300 | $ 8,000 | $ 6,000 | $ 8,000 | |||||||||||||||||||||||||||||||||||||||||||
One Hundered Fifteen Point Two Million BEA Facility | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Repayment | $ 12,100 | $ 3,000 | $ 3,000 | ||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||
Twenty Thousand Hsb Facility [Member] | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000 | ||||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, interest rate | 2.58% | ||||||||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | ¥ 143 | $ 21,062 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument Periodic Repayment Date | Apr. 14, 2022 | Oct. 14, 2021 | Apr. 14, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Twenty Thousand Hsb Facility [Member] | Scenario, Forecast | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 8,000 | $ 8,000 | $ 4,000 | ||||||||||||||||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | ¥ 11.6 | $ 1,738 | ¥ 3.6 | $ 526 | ¥ 101.8 | $ 15,301 | $ 20,246 | ||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility, Expiration Date | Jun. 25, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Repaid amount | $ 15,100 | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | |||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||
Term deposit used as collateral | ¥ 143 | $ 21,062 | |||||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||||||
Line of credit facility, maximum borrowing capacity | ¥ 132.6 | $ 19,307 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ¥ 50.6 | $ 7,072 | |||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument, Term | 3 years | 3 years |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule Of Related Party Transaction Details [Line Items] | ||
Amounts due to related parties | $ 802 | $ 600 |
Service Fees | ||
Schedule Of Related Party Transaction Details [Line Items] | ||
Service fees | 8,876 | 7,499 |
Commission Service Fees | ||
Schedule Of Related Party Transaction Details [Line Items] | ||
Amounts due to related parties | $ 1,938 | $ 2,013 |
Deconsolidation of a Subsidia_2
Deconsolidation of a Subsidiary - Additional Information (Detail) $ in Thousands, ¥ in Millions | Dec. 29, 2018CNY (¥) | Dec. 29, 2018USD ($) | Dec. 27, 2018CNY (¥) | Dec. 27, 2018USD ($) |
Champion Tax Advisory | ||||
Equity Ownership Percentage | 40.00% | 40.00% | ||
Total consideration | ¥ 35.9 | $ 5,020 | ||
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% | 40.00% | 40.00% |
Share Transfer Agreement | Champion Tax Advisory | ||||
Equity interest transfer percentage | 60.00% | 60.00% | ||
Gain Loss On Sale Of Subsidiary | ¥ 47.5 | $ 6,869 | ||
Deconsolidation remeasurement gain of the retained equity interests | ¥ 14.3 | $ 2,081 |
Restricted Net Assets - Additio
Restricted Net Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
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 | $ 32,503 | $ 30,875 |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Sep. 30, 2020USD ($) | Sep. 30, 2020CNY (¥) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | 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 | $ 133 | $ 3,556 | |||
Income tax expenses | 5,460 | 8,121 | $ 2,307 | ||
Income tax reverse | (627) | (79) | $ (299) | ||
Unrecognized tax benefits | $ 160 | $ 152 | |||
Statutory Tax rate | 25.00% | 25.00% | |||
Taxable Income percentage | 25.00% | 25.00% | |||
Enterprise Tax Rate | 20.00% | 20.00% | |||
Taxable Income Threshold Of Small And Micro Business | $ 140 | ¥ 1 | |||
Tax Year 2020 | |||||
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 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 | $ 133 | $ 3,556 | |||
Income tax expenses | $ 333 | $ 544 | $ 210 |
Income Before Income Taxes (Det
Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Before Income Taxes [Line Items] | |||
Non - PRC | $ (12,574) | $ (3,332) | $ (656) |
PRC | 26,726 | 29,131 | 15,438 |
Income before income taxes and loss from equity method investments | $ 14,152 | $ 25,799 | $ 14,782 |
Current and Deferred Components
Current and Deferred Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components Of Income Tax Expense Benefit [Line Items] | |||
Current tax expenses | $ 10,543 | $ 7,060 | $ 5,717 |
Deferred tax (benefit) expenses | (5,083) | 1,061 | (3,410) |
Income Tax Expense, Total | $ 5,460 | $ 8,121 | $ 2,307 |
Reconciliation of Effective Tax
Reconciliation of Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Effective Tax Rate Reconciliation [Line Items] | |||
Income before taxes | $ 14,152 | $ 25,799 | $ 14,782 |
Income tax expenses computed at applicable tax rates of 25% | 3,538 | 6,450 | 3,696 |
Effect of different tax rates in different jurisdictions | 3,010 | 704 | 770 |
Non-deductible expenses | 1,362 | 1,059 | 152 |
Effect of tax holidays | (2,148) | (1,934) | (2,610) |
Effect of valuation allowances | 184 | 1,232 | 285 |
Withholding tax on undistributed earnings | 141 | 689 | 313 |
Income tax reversal | (627) | (79) | (299) |
Income Tax Expense, Total | $ 5,460 | $ 8,121 | $ 2,307 |
Effective income tax rate | 38.58% | 31.48% | 15.61% |
Reconciliation of Effective T_2
Reconciliation of Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
The aggregate amount of tax holidays | $ 2,148 | $ 1,934 | $ 2,610 |
Basic | |||
The aggregate increase on basic and diluted net income per share: | $ 0.02 | $ 0.01 | $ 0.02 |
Diluted | |||
The aggregate increase on basic and diluted net income per share: | $ 0.02 | $ 0.01 | $ 0.02 |
Components of Deferred Taxes (D
Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 |
Deferred tax assets | ||
Advertising expenses carry-forwards | $ 1,652 | $ 0 |
Accrued expenses | 1,618 | 984 |
Allowance for doubtful accounts | 1,073 | 1,031 |
Impairment loss from long-term investments | 1,472 | 1,178 |
Property, plant and equipment | 104 | 103 |
Net operating loss carry-forwards | 4,585 | 2,811 |
Total gross deferred tax assets | 10,504 | 6,107 |
Less: valuation allowance | (2,616) | (2,242) |
Total deferred tax assets | 7,888 | 3,865 |
Deferred tax assets, net | 5,690 | 3,865 |
Deferred tax liabilities | ||
Intangible assets | 5,488 | 7,085 |
Withholding tax on undistributed earnings | 133 | 3,556 |
Unrealized gain on available-for-sale investments | 760 | 647 |
Capitalized commission fees | 1,905 | 1,407 |
Total deferred tax liabilities | 8,286 | 12,695 |
Deferred tax liabilities, net | $ 6,088 | $ 12,695 |
Reconciliation of Accrued Unrec
Reconciliation of Accrued Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of Unrecognized Tax Benefits [Line Items] | ||
Beginning balance | $ 152 | $ 158 |
Foreign currency adjustment | 8 | (6) |
Ending balance | $ 160 | $ 152 |
Employee Defined Contribution_2
Employee Defined Contribution Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Total contributions to the government, employee benefits, expensed as incurred | $ 8,820 | $ 12,773 | $ 12,297 |
Lease - Additional Information
Lease - Additional Information (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 7,314 |
Short term lease cost | $ 45 |
Weighted average remaining lease term of operating lease | 7 years 3 months 18 days |
Weighted average discount rate of operating lease | 4.90% |
Summary of Supplemental Informa
Summary of Supplemental Information Related to Operating Lease (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2020USD ($) | |
Disclosure Of Supplemental Cash Flow Information Related To Operating Leases [Line Items] | |
Cash payments for the operating leases | $ 6,592 |
ROU assets obtained in exchange for the new operating lease liabilities | $ 29 |
Summary of Lessee Operating Lea
Summary of Lessee Operating Lease Liability Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Oct. 01, 2019 |
Lessee Operating Lease Liability Maturity [Line Items] | ||
Years ending September 30, 2021 | $ 5,411 | |
2022 | 4,986 | |
2023 | 4,579 | |
2024 | 4,666 | |
2025 | 3,931 | |
2026 and thereafter | 8,806 | |
Total future lease payments | 32,379 | |
Less: Imputed interest | (5,130) | |
Present value of operating lease liabilities | $ 27,249 | $ 33,167 |
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 |
2025 and thereafter | 21,195 |
Total future lease payments | $ 46,870 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands, ¥ in Millions | Sep. 30, 2020USD ($) | Sep. 30, 2019CNY (¥) | Sep. 30, 2019USD ($) | Jun. 27, 2019CNY (¥) | Jun. 26, 2019CNY (¥) | Jun. 26, 2019USD ($) | Jun. 25, 2019CNY (¥) | Jun. 25, 2019USD ($) | May 17, 2019USD ($) | Oct. 23, 2018USD ($) | Jun. 22, 2018USD ($) | Jan. 05, 2018CNY (¥) | Jan. 05, 2018USD ($) | Dec. 18, 2017CNY (¥) | Dec. 18, 2017USD ($) | Nov. 17, 2017USD ($) | Jun. 22, 2015CNY (¥) |
Commitment And Contingencies [Line Items] | |||||||||||||||||
Term loan agreement value | ¥ 115.2 | $ 15,081 | ¥ 300 | ||||||||||||||
Term deposit used as collateral | ¥ 134.7 | ||||||||||||||||
Term Loan | |||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||
Term loan agreement value | $ 20,000 | ¥ 115.2 | $ 30,300 | $ 48,300 | $ 40,000 | ||||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | |||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||
Term deposit used as collateral | ¥ 11.6 | $ 1,738 | ¥ 3.6 | $ 526 | ¥ 101.8 | $ 15,301 | $ 20,246 | ||||||||||
Beijing Champion Distance Education Technology Co., Ltd. (''Champion Technology'') | Term Loan | |||||||||||||||||
Commitment And Contingencies [Line Items] | |||||||||||||||||
Term deposit used as collateral | ¥ 143 | $ 21,062 |
Summary of Changes in Noncontro
Summary of Changes in Noncontrolling Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noncontrolling Interest [Line Items] | |||
Beginning balance | $ 50,915 | ||
Capital contribution from noncontrolling interest shareholders | 367 | $ 29 | $ 89 |
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 | (2,293) | (5,060) | 677 |
Ending balance | 48,969 | 50,915 | |
Noncontrolling interest | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 50,915 | 65,491 | |
Capital contribution from noncontrolling interest shareholders | 367 | 29 | 60 |
Purchase of equity interests from noncontrolling interest shareholders | (7,119) | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | 2,526 | (2,135) | |
Cash dividends paid to noncontrolling interests by a subsidiary | (2,546) | (291) | |
(Loss) gain attributed to noncontrolling interest shareholders | (2,293) | (5,060) | |
Ending balance | 48,969 | 50,915 | 65,491 |
Noncontrolling interest | Beijing Zhengbao Yucai Education Technology Co., Ltd. (''Zhengbao Yucai'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 8,712 | 15,319 | |
Capital contribution from noncontrolling interest shareholders | 29 | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | 426 | (463) | |
(Loss) gain attributed to noncontrolling interest shareholders | (1,017) | (6,173) | |
Ending balance | 8,121 | 8,712 | 15,319 |
Noncontrolling interest | Xiamen NetinNet Software Co., Ltd (''Xiamen NetinNet'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 9,864 | 8,719 | |
Capital contribution from noncontrolling interest shareholders | 367 | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | 531 | (372) | |
Cash dividends paid to noncontrolling interests by a subsidiary | (847) | (291) | |
(Loss) gain attributed to noncontrolling interest shareholders | 506 | 1,808 | |
Ending balance | 10,421 | 9,864 | 8,719 |
Noncontrolling interest | Jiangsu Zhengbao Asset Financial Advisory Co., Ltd | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 965 | 1,059 | |
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | 53 | (39) | |
(Loss) gain attributed to noncontrolling interest shareholders | 101 | (55) | |
Ending balance | 1,119 | 965 | 1,059 |
Noncontrolling interest | Beijing Ruida Chengtai Education Technology Co., Ltd. (''Beijing Ruida'') | |||
Noncontrolling Interest [Line Items] | |||
Beginning balance | 31,374 | 40,394 | |
Purchase of equity interests from noncontrolling interest shareholders | (7,119) | ||
Foreign currency translation adjustment attributed to noncontrolling interest shareholders | 1,516 | (1,261) | |
Cash dividends paid to noncontrolling interests by a subsidiary | (1,699) | ||
(Loss) gain attributed to noncontrolling interest shareholders | (1,883) | (640) | |
Ending balance | $ 29,308 | $ 31,374 | $ 40,394 |
Noncontrolling Interests - Addi
Noncontrolling Interests - Additional Information (Detail) $ in Thousands, ¥ in Millions | May 15, 2019CNY (¥) | May 15, 2019USD ($) | Jul. 10, 2018CNY (¥) | Jul. 10, 2018USD ($) | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 30, 2018 | Jun. 30, 2017 |
Subsidiaries of Variable Interest Entities (The Group) | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Total consideration | ¥ 38.3 | ||||||||
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 | ¥ 39.6 | $ 5,931 | ||||||
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% | 49.00% | 49.00% | ||||||
Noncontrolling interest, ownership percentage by parent | 60.00% | 60.00% | 51.00% | 51.00% | 51.00% | 40.00% |
Schedule Discloses Effect of Ch
Schedule Discloses Effect of Changes in Ownership Interest (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Noncontrolling Interest [Line Items] | |||
Net income attributable to the Company | $ 10,430 | $ 21,254 | $ 11,626 |
Transfers from noncontrolling interest: | |||
Increase in the Group's additional paid-in capital in relation to capital contribution noncontrolling interest | 29 | ||
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 the Company's shareholders and transfer from noncontrolling interests | $ 10,430 | $ 22,064 | $ 11,655 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 209,558,000 | $ 211,822,000 | $ 166,668,000 |
Operating costs and expenses: | |||
Cost of revenues | (101,598,000) | (104,741,000) | (87,883,000) |
Selling and marketing | (69,848,000) | (61,460,000) | (44,717,000) |
General and administrative | (25,478,000) | (24,919,000) | (21,253,000) |
Impairment of goodwill | (1,517,000) | ||
Operating income (loss) | 18,789,000 | 22,848,000 | 15,950,000 |
Unallocated corporate expenses | (6,950,000) | (4,855,000) | (4,493,000) |
Unallocated corporate expenses | (6,950,000) | (4,855,000) | (4,493,000) |
Total assets | 398,139,000 | 355,350,000 | 328,925,000 |
Total assets | 398,139,000 | 355,350,000 | 328,925,000 |
(Loss) gain from equity method investments | (555,000) | (1,484,000) | (172,000) |
Cost of Sales | |||
Operating costs and expenses: | |||
Cost of revenues | (101,598,000) | (104,741,000) | (87,883,000) |
Selling Expense | |||
Operating costs and expenses: | |||
Selling and marketing | (69,848,000) | (61,460,000) | (44,717,000) |
General and Administrative Expense | |||
Operating costs and expenses: | |||
General and administrative | (18,528,000) | (20,064,000) | (16,760,000) |
Impairment of Goodwill | |||
Operating costs and expenses: | |||
Impairment of goodwill | (1,517,000) | ||
Operating Expense | |||
Operating costs and expenses: | |||
Total operating costs and expenses | (196,924,000) | (192,637,000) | (153,853,000) |
Other Operating Income (Expense) | |||
Segment Reporting Information [Line Items] | |||
Other operating income | 6,155,000 | 2,968,000 | 3,051,000 |
Operating Income (Loss) | |||
Operating costs and expenses: | |||
Operating income (loss) | 18,789,000 | 22,848,000 | 15,950,000 |
Depreciation And Amortization | |||
Operating costs and expenses: | |||
Amortization and depreciation | 13,215,000 | 12,723,000 | 6,299,000 |
Loss From Equity Method Investments | |||
Operating costs and expenses: | |||
(Loss) gain from equity method investments | (555,000) | (1,484,000) | (172,000) |
Professional education services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 197,835,000 | 196,047,000 | 150,484,000 |
Other operating income | 4,976,000 | 1,053,000 | 643,000 |
Operating costs and expenses: | |||
Cost of revenues | (94,162,000) | (96,044,000) | (79,168,000) |
Selling and marketing | (65,474,000) | (56,334,000) | (39,698,000) |
General and administrative | (16,773,000) | (16,745,000) | (14,548,000) |
Impairment of goodwill | 0 | 0 | 0 |
Total operating costs and expenses | (176,409,000) | (169,123,000) | (133,414,000) |
Operating income (loss) | 26,402,000 | 28,672,000 | 17,797,000 |
Total assets | 307,054,000 | 273,005,000 | 236,496,000 |
Total assets | 307,054,000 | 273,005,000 | 236,496,000 |
Amortization and depreciation | 11,481,000 | 10,939,000 | 4,479,000 |
(Loss) gain from equity method investments | (555,000) | (1,173,000) | 58,000 |
Business start-up training services | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 2,207,000 | 2,796,000 | 4,608,000 |
Other operating income | 5,000 | 102,000 | 76,000 |
Operating costs and expenses: | |||
Cost of revenues | (1,033,000) | (1,777,000) | (2,644,000) |
Selling and marketing | (915,000) | (1,226,000) | (1,127,000) |
General and administrative | (584,000) | (1,930,000) | (896,000) |
Impairment of goodwill | (1,517,000) | ||
Total operating costs and expenses | (2,532,000) | (6,450,000) | (4,667,000) |
Operating income (loss) | (320,000) | (3,552,000) | 17,000 |
Total assets | 40,865,000 | 36,735,000 | 46,205,000 |
Total assets | 40,865,000 | 36,735,000 | 46,205,000 |
Amortization and depreciation | 60,000 | 69,000 | 36,000 |
(Loss) gain from equity method investments | (311,000) | (230,000) | |
Sales of learning simulation software | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 9,516,000 | 12,979,000 | 11,576,000 |
Other operating income | 1,174,000 | 1,813,000 | 2,332,000 |
Operating costs and expenses: | |||
Cost of revenues | (6,403,000) | (6,920,000) | (6,071,000) |
Selling and marketing | (3,459,000) | (3,900,000) | (3,892,000) |
General and administrative | (1,171,000) | (1,389,000) | (1,316,000) |
Impairment of goodwill | 0 | 0 | 0 |
Total operating costs and expenses | (11,033,000) | (12,209,000) | (11,279,000) |
Operating income (loss) | (343,000) | 2,583,000 | 2,629,000 |
Total assets | 50,220,000 | 45,610,000 | 46,224,000 |
Total assets | 50,220,000 | 45,610,000 | 46,224,000 |
Amortization and depreciation | $ 1,674,000 | $ 1,715,000 | $ 1,784,000 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share Disclosure [Line Items] | |||
Net income | $ 10,430 | $ 21,254 | $ 11,626 |
- allocated to ordinary share - basic | 10,352 | 21,117 | 11,583 |
- allocated to nonvested share - basic | $ 78 | $ 137 | $ 43 |
Weighted average number of ordinary shares outstanding | 133,984,929 | 133,060,900 | 132,363,620 |
Weighted average number of nonvested share | 1,010,719 | 862,436 | 487,685 |
Plus incremental weighted average ordinary shares from assumed exercise of share options using the treasury stock method | 236,576 | 214,781 | 265,850 |
Weighted average ordinary shares outstanding used in computing diluted net income per share | 135,232,224 | 134,138,117 | 133,117,155 |
Basic net income per share | $ 0.08 | $ 0.16 | $ 0.09 |
Basic net income per nonvested share | 0.08 | 0.16 | 0.09 |
Diluted net income per share | 0.08 | 0.16 | 0.09 |
Diluted net income per nonvested share | $ 0.08 | $ 0.16 | $ 0.09 |
Share Incentive Plan - Addition
Share Incentive Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 12, 2020 | Jan. 01, 2020 | Dec. 20, 2019 | Dec. 03, 2019 | Jan. 17, 2018 | Aug. 23, 2017 | Nov. 18, 2014 | Jul. 02, 2008 | Apr. 18, 2008 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | 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 | 0.145 | 0 | $ 0.1125 | |||||||||||
Authorized reduction in exercise price of outstanding options | $ 0.145 | $ 0 | $ 0 | |||||||||||
Total intrinsic value of options exercised | $ 0 | $ 0 | $ 749 | |||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized | $ 0 | |||||||||||||
Nonvested shares granted | 1,109,688 | 955,168 | 468,600 | |||||||||||
Grant date fair value non vested share | $ 2.08 | $ 1.76 | $ 2.29 | |||||||||||
Share-based compensation expenses | $ 2,618 | $ 2,005 | $ 2,306 | |||||||||||
Non Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock issued during period shares stock options excercised | 57,000 | |||||||||||||
Share based compensation by share based payment arrangement award options outstanding | 0 | 0 | 0 | |||||||||||
Share based compensation by share based payment arrangement award options excercisable | 0 | 0 | 0 | |||||||||||
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 | $ 0 | $ 143 | $ 1,231 | |||||||||||
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 | 173,052 | 220,504 | 541,132 | 175,000 | ||||||||||
Grant date fair value non vested share | $ 2.16 | $ 2.43 | $ 1.93 | $ 1.97 | ||||||||||
Total share base compensation | $ 910 | $ 1,057 | $ 345 | |||||||||||
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 | $ 616 | |||||||||||||
Share-based compensation related to nonvested shares that is expected to be recognized, weighted average period | 2 months 12 days | |||||||||||||
Share-based compensation expenses | $ 2,618 | $ 1,862 | $ 1,075 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) - Employees - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares, Outstanding, Beginning | 1,040,100 | 1,059,100 | 2,025,600 | |
Number of shares, Exercised | (895,148) | |||
Number of shares, Outstanding, Forfeited | (71,100) | (19,000) | (71,352) | |
Number of shares, Outstanding, Ending | 969,000 | 1,040,100 | 1,059,100 | 2,025,600 |
Weighted-average exercise price, Outstanding, Beginning | $ 1.39 | $ 1.39 | $ 2.85 | |
Weighted-average exercise price, Exercised | 1.66 | |||
Number of shares, Exercisable | 969,000 | |||
Weighted-average exercise price, Forfeited | $ 0.98 | 1.81 | 1.17 | |
Weighted-average exercise price, Outstanding, Ending | 1.29 | $ 1.39 | $ 1.39 | $ 2.85 |
Weighted-average exercise price: Expected to vest | 0 | |||
Weighted-average exercise price: Exercisable | $ 1.29 | |||
Weighted-average remaining contractual term (years), Outstanding | 3 years 7 months 13 days | 4 years 6 months 25 days | 5 years 6 months 29 days | 6 years 6 months 10 days |
Weighted-average remaining contractual term (years), Forfeited | 2 years 10 months 6 days | 5 years 1 month 20 days | ||
Weighted-average remaining contractual term (years), Exercisable | 3 years 7 months 13 days | |||
Aggregated intrinsic value, Outstanding, Ending | $ 1,067 | $ 718 | ||
Aggregated intrinsic value, Exercisable | $ 1,067 |
Nonvested Shares Activities (De
Nonvested Shares Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Nonvested shares outstanding, Beginning balance | 706,840 | 450,497 | 328,390 | |
Granted | 1,109,688 | 955,168 | 468,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (1,089,404) | (678,881) | (346,493) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (19,944) | |||
Nonvested shares outstanding, Ending balance | 727,124 | 706,840 | 450,497 | |
Weighted average grant-date fair value, outstanding Beginning balance | $ 1.84 | $ 2.49 | $ 3.44 | |
Nonvested shares, Expected to vest | 727,124 | |||
Weighted average grant-date fair value, Granted | $ 2.08 | 1.76 | 2.29 | |
Weighted average grant-date fair value, Vested | 1.96 | 2.16 | 3.11 | |
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 | 2.03 | $ 1.84 | $ 2.49 | |
Weighted average grant-date fair value, Expected to vest | $ 2.03 | |||
Aggregated intrinsic value, Nonvested shares outstanding | $ 1,741 | $ 965 | $ 933 | $ 551 |
Aggregated intrinsic value, Expected to vest | $ 1,741 |
Total Share-Based Compensation
Total Share-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 2,618 | $ 2,005 | $ 2,306 |
Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 139 | 23 | 161 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 2,421 | 1,972 | 2,065 |
Selling Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 58 | $ 10 | $ 80 |
Cash Dividend - Additional Info
Cash Dividend - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Mar. 17, 2020 | Nov. 28, 2017 | Sep. 30, 2020 | Sep. 30, 2019 | Mar. 31, 2020 | Jan. 12, 2018 |
Cash dividend declared per ordinary share | $ 0.145 | $ 0.1125 | ||||
Ordinary shares, Outstanding | 135,320,433 | 134,210,745 | 135,320,433 | 132,804,973 | ||
Dividends | $ 19,621 | $ 14,949 | $ 2,546 | $ 291 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands, ¥ in Millions | Jan. 15, 2021USD ($) | Nov. 30, 2020USD ($) | Nov. 13, 2020shares | Sep. 30, 2020USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($)shares | Apr. 15, 2020USD ($) | Jun. 27, 2019CNY (¥) | Jun. 22, 2018USD ($) | Jun. 22, 2015CNY (¥) |
Subsequent Event [Line Items] | ||||||||||
Nonvested shares granted | shares | 1,109,688 | 955,168 | 468,600 | |||||||
Line of credit facility, maximum borrowing capacity | ¥ 115.2 | $ 15,081 | ¥ 300 | |||||||
Repayments of Long-term Debt | $ 38,646 | $ 24,092 | $ 22,190 | |||||||
Twenty Thousand Hsb Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 20,000 | |||||||||
Champion Shine Trading Limited | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 25,000 | |||||||||
China Merchants Bank | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Line of credit facility, maximum borrowing capacity | $ 200,000 | |||||||||
Subsequent Event | Twenty Thousand Hsb Facility [Member] | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Repayment of long term line of credit | $ 20,000 | |||||||||
Subsequent Event | Nonvested Shares | ||||||||||
Subsequent Event [Line Items] | ||||||||||
Nonvested shares granted | shares | 458,168 | |||||||||
Vesting period | 1 year |
Schedule I - BALANCE SHEETS (De
Schedule I - BALANCE SHEETS (Detail) - USD ($) $ in Thousands | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 |
Current assets | |||
Cash and cash equivalents | $ 80,056 | $ 67,977 | |
Prepayment and other current assets | 31,315 | 26,732 | |
Amounts due from subsidiaries | 3,074 | 515 | |
Total current assets | 165,114 | 168,689 | |
Non-current assets | |||
Long-term investments | 26,324 | 25,379 | |
Total non-current assets | 233,025 | 186,661 | |
Total assets | 398,139 | 355,350 | $ 328,925 |
Current liabilities | |||
Accrued expenses and other liabilities | 55,454 | 38,267 | |
Amounts due to subsidiaries | 802 | 600 | |
Bank borrowings | 4,012 | 38,502 | |
Total current liabilities | 189,488 | 182,905 | |
Total liabilities | 271,195 | 231,604 | |
Shareholders' equity | |||
Ordinary shares (par value of US$0.0001 per share; 500,000,000shares authorized; 134,210,745 and 135,320,433 shares issuedand outstanding as of September 30, 2019 and 2020, respectively) | 14 | 13 | |
Additional paid-in capital | 27,316 | 24,507 | |
Accumulated other comprehensive loss | (832) | (12,357) | |
Retained earnings | 51,477 | 60,668 | |
Total equity | 77,975 | 72,831 | |
Total liabilities and equity | 398,139 | 355,350 | |
Parent Company | |||
Current assets | |||
Cash and cash equivalents | 283 | 1,383 | |
Prepayment and other current assets | 427 | 381 | |
Amounts due from subsidiaries | 8,480 | 8,474 | |
Total current assets | 9,190 | 10,238 | |
Non-current assets | |||
Long-term investments | 1,159 | 1,289 | |
Total non-current assets | 226,410 | 193,554 | |
Total assets | 235,600 | 203,792 | |
Current liabilities | |||
Accrued expenses and other liabilities | 2,314 | 989 | |
Amounts due to subsidiaries | 155,311 | 98,434 | |
Bank borrowings | 31,538 | ||
Total current liabilities | 157,625 | 130,961 | |
Total liabilities | 157,625 | 130,961 | |
Shareholders' equity | |||
Ordinary shares (par value of US$0.0001 per share; 500,000,000shares authorized; 134,210,745 and 135,320,433 shares issuedand outstanding as of September 30, 2019 and 2020, respectively) | 14 | 13 | |
Additional paid-in capital | 27,316 | 24,507 | |
Accumulated other comprehensive loss | (832) | (12,357) | |
Retained earnings | 51,477 | 60,668 | |
Total equity | 77,975 | 72,831 | |
Total liabilities and equity | 235,600 | 203,792 | |
Parent Company | Investments In Subsidiaries And Equity Method Investees | |||
Non-current assets | |||
Investment in subsidiaries | $ 225,251 | $ 192,265 |
Schedule I - BALANCE SHEETS (Pa
Schedule I - BALANCE SHEETS (Parenthetical) (Detail) - $ / shares | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jan. 12, 2018 | 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 | 135,320,433 | 134,210,745 | |||
Ordinary shares, Outstanding | 135,320,433 | 135,320,433 | 134,210,745 | 132,804,973 | |
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 | 135,320,433 | 134,210,745 | |||
Ordinary shares, Outstanding | 135,320,433 | 134,210,745 |
Schedule I - STATEMENTS OF OPER
Schedule I - STATEMENTS OF OPERATIONS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | $ (101,598) | $ (104,741) | $ (87,883) |
Selling expenses | (69,848) | (61,460) | (44,717) |
General and administrative expenses | (25,478) | (24,919) | (21,253) |
Operating income (loss) | 18,789 | 22,848 | 15,950 |
Share of equity income in its subsidiaries and the VIEs | (555) | (1,484) | (172) |
Interest income | 2,555 | 2,207 | 2,522 |
Interest expenses | (1,021) | (2,819) | (3,331) |
Exchange gain (loss) | (5,261) | 3,296 | 2,476 |
Net income attributable to China Distance Education Holdings Limited | 10,430 | 21,254 | 11,626 |
Parent Company | |||
Condensed Income Statements, Captions [Line Items] | |||
Cost of revenues | (139) | (23) | (161) |
Selling expenses | (58) | (10) | (80) |
General and administrative expenses | (5,823) | (3,100) | (2,887) |
Operating income (loss) | (6,020) | (3,133) | (3,128) |
Share of equity income in its subsidiaries and the VIEs | 21,385 | 23,776 | 14,763 |
Interest income | 6 | 21 | 1 |
Interest expenses | (932) | (2,261) | (2,110) |
Exchange gain (loss) | (4,009) | 2,851 | 2,100 |
Net income attributable to China Distance Education Holdings Limited | $ 10,430 | $ 21,254 | $ 11,626 |
Schedule I - STATEMENTS OF COMP
Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | $ 10,430 | $ 21,254 | $ 11,626 |
Other comprehensive (loss) income Foreign currency translation adjustment | 13,733 | (8,854) | (8,118) |
Total comprehensive income | 21,955 | 15,910 | 7,980 |
Parent Company | |||
Condensed Consolidating Statement of Other Comprehensive Income (Loss) [Line Items] | |||
Net income | 10,430 | 21,254 | 11,626 |
Other comprehensive (loss) income Foreign currency translation adjustment | 11,207 | (6,719) | (6,245) |
Total comprehensive income | $ 21,637 | $ 14,535 | $ 5,381 |
Schedule I - STATEMENTS OF CASH
Schedule I - STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net cash (used in) provided by operating activities | $ 40,961 | $ 81,795 | $ 50,094 |
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 | 192 | 135 | 193 |
Capital contribution from noncontrolling interests | 367 | 29 | 89 |
Loan repayments | 38,646 | 24,092 | 22,190 |
Dividends paid to shareholders | (19,621) | (14,949) | |
Net cash used in financing activities | (40,254) | (24,219) | (3,302) |
Net decrease in cash and cash equivalents and restricted cash | (5,218) | 23,773 | (12,819) |
Cash and cash equivalents and restricted cash at beginning of the year | 106,335 | 82,562 | 95,381 |
Cash and cash equivalents and restricted cash at end of the year | 101,117 | 106,335 | 82,562 |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net cash (used in) provided by operating activities | 49,752 | 18,025 | (9,575) |
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 | 192 | 135 | 193 |
Capital contribution from noncontrolling interests | 29 | ||
New short-term loans drawn down | 20,573 | ||
Loan repayments | (31,423) | (19,000) | |
Dividends paid to shareholders | (19,621) | (14,949) | |
Net cash used in financing activities | (50,852) | (18,865) | 5,777 |
Net decrease in cash and cash equivalents and restricted cash | (1,100) | (840) | (3,798) |
Cash and cash equivalents and restricted cash at beginning of the year | 1,383 | 2,223 | 6,021 |
Cash and cash equivalents and restricted cash at end of the year | $ 283 | $ 1,383 | $ 2,223 |
Schedule I - Basis of Preparati
Schedule I - Basis of Preparation (Detail) | Sep. 30, 2020 |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ (555) | $ (1,484) | $ (172) |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Equity in income of subsidiaries and variable interest entities | $ 21,385 | $ 23,776 | $ 14,763 |