ChinaEdu CORP

CIK:0001411419|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2013 CNY	Dec. 31, 2012 CNY	Dec. 31, 2011 CNY	Dec. 31, 2013 Cost of revenue USD ($)	Dec. 31, 2013 Cost of revenue CNY	Dec. 31, 2012 Cost of revenue CNY	Dec. 31, 2011 Cost of revenue CNY	Dec. 31, 2013 Selling and marketing USD ($)	Dec. 31, 2013 Selling and marketing CNY	Dec. 31, 2012 Selling and marketing CNY	Dec. 31, 2011 Selling and marketing CNY	Dec. 31, 2013 Research and development USD ($)	Dec. 31, 2013 Research and development CNY	Dec. 31, 2012 Research and development CNY	Dec. 31, 2011 Research and development CNY
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenue	$ 92,380	559,240	504,052	453,116
Business tax	1,867	11,300	15,730	17,257
Net revenue	90,513	547,940	488,322	435,859
Cost of revenue	34,855	210,999	202,109	185,604
Gross profit	55,658	336,941	286,213	250,255
Operating expenses:
General and administrative	18,717	113,305	100,204	93,950
Selling and marketing	7,641	46,257	48,407	52,777
Research and development	8,251	49,948	40,512	40,589
Intangible assets impairment			5,901
Total operating expenses	34,609	209,510	195,024	187,316
Income from operations	21,049	127,431	91,189	62,939
Interest income	2,113	12,793	13,253	8,843
Interest expense	(2,122)	(12,849)
Gain on disposal of subsidiaries			2,197
Investment income	82	497	1,460	832
Other income	322	1,951	1,376	1,003
Foreign exchange loss	(451)	(2,728)
Income before income tax and equity method investments	20,993	127,095	109,475	73,617
Income tax provisions (benefits):
- Current	6,159	37,282	19,939	23,078
- Deferred	(1,569)	(9,493)	6,488	(6,034)
Total income tax provisions	4,590	27,789	26,427	17,044
Net income before income from equity method investments	16,403	99,306	83,048	56,573
Income from equity method investments, net of taxes	115	692	261
Net income	16,518	99,998	83,309	56,573
Less: net income attributable to the noncontrolling interests	8,178	49,500	45,338	39,752
Net income attributable to ChinaEdu Corporation shareholders	8,340	50,498	37,971	16,821
Net income per share attributable to ChinaEdu Corporation shareholders - basic	$ 0.30	1.79	0.80	0.35
Net income per share attributable to ChinaEdu Corporation shareholders - diluted	$ 0.26	1.58	0.75	0.33
Weighted average shares used in calculating basic net income per share attributable to ChinaEdu Corporation shareholders	28,250,473	28,250,473	47,523,375	47,453,930
Weighted average shares used in calculating diluted net income per share attributable to ChinaEdu Corporation shareholders	31,877,916	31,877,916	50,487,233	50,669,229
CONSOLIDATED STATEMENTS OF OPERATIONS
Share-based compensation expenses	$ 1,633	9,887	8,258	6,483	$ 124	748	488	522	$ 330	2,000	3,103	2,755	$ 59	359	491	297

CONSOLIDATED STATEMENTS OF CASH FLOWS In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2013 CNY	Dec. 31, 2012 CNY	Dec. 31, 2011 CNY
Cash flows from operating activities:
Net income	$ 16,518	99,998	83,309	56,573
Adjustments to reconcile net income to net cash provided by operating activities:
Share-based compensation	1,633	9,887	8,258	6,483
Depreciation and amortization of property and equipment	4,229	25,599	25,377	23,900
Amortization of land use rights	100	608	608	608
Amortization of acquired intangible assets	509	3,083	3,903	4,171
Intangible assets impairment			5,901
Investment loss (income)	(82)	(497)	(1,460)	201
Amortization of debt discount	715	4,329
Gain on disposal of subsidiaries			(2,197)
Loss (gain) from equity method investments	(35)	(212)	219
Provision for account receivables	43	261	340	0
Loss from disposal of property and equipment	10	59	1,611	234
Foreign exchange loss	451	2,728
Changes in assets and liabilities:
Accounts receivable	1,337	8,095	(3,779)	3,613
Inventories				358
Prepaid expenses and other current assets	135	814	532	7,458
Amounts due from related parties	(6,913)	(41,850)	(64,325)	8,646
Rental deposits	(11)	(66)	716	(1,277)
Accounts payable	33	197	162	(2,013)
Deferred revenues	684	4,143	7,438	21,858
Accrued expenses and other current liabilities	3,936	23,830	20,851	8,700
Amounts due to related parties	1,487	9,000	22,468	(19,717)
Income taxes payable	2,291	13,871	(2,154)	6,836
Other taxes payable	1,480	8,960	5,324	1,462
Deferred income taxes	(1,568)	(9,493)	6,488	(6,034)
Unrecognized tax benefit	343	2,078	2,706	2,398
Net cash provided by operating activities	27,325	165,422	122,296	124,458
Cash flows from investing activities:
Purchase of property and equipment	(2,621)	(15,868)	(12,407)	(20,788)
Proceeds from disposal of subsidiaries, net of cash disposed			5,026
Deposits paid for acquisition of property and equipment				(18,863)
Purchase of term deposits	(98,758)	(597,850)	(526,347)	(341,963)
Maturity of term deposits	91,305	552,736	532,482	364,300
Purchase of exclusive partnership with universities			(980)	(1,960)
Purchase of short-term investments			(12,571)	(19,556)
Purchase of long-term investments			(1,020)
Proceeds from disposal of property and equipment	34	206	89	275
Proceeds from sale of short-term investments	1,294	7,832	26,187	16,306
Proceeds from disposal of exclusive partnership with universities			315
Proceeds from disposal of equity method investment	1,322	8,000
Net cash (used in) provided by investing activities	(7,424)	(44,944)	10,774	(22,249)
Cash flows from financing activities:
Payment of deferred consideration for purchase of property and equipment				(1,479)
Cash dividends paid to noncontrolling shareholders	(2,863)	(17,333)	(21,441)	(13,510)
Capital contribution by noncontrolling shareholders				2,960
Repurchase and cancellation of ordinary shares	(47,178)	(285,603)	(4,574)	(7,437)
Proceeds from exercise of share options	1,835	11,108	5,068	598
Financing costs related to loans	(1,414)	(8,557)
Proceeds from borrowings of short-term debt	11,301	68,410
Proceeds from borrowings of long-term debt	62,815	380,261
Repayment of borrowings of short-term debt	(10,455)	(63,290)
Repayment of borrowings of long-term debt	(26,389)	(159,750)
Prepayment for shares repurchases				(168)
Net cash used in financing activities	(12,348)	(74,754)	(20,947)	(19,036)
Effect of exchange rate changes	33	198	53	80
Net increase in cash and cash equivalents	7,586	45,922	112,176	83,253
Cash and cash equivalents, beginning of year	63,750	385,922	273,746	190,493
Cash and cash equivalents, end of year	71,336	431,844	385,922	273,746
Supplemental disclosure of cash flow information
Income taxes paid	3,524	21,333	19,387	13,844
Interest paid	$ 1,381	8,360

CONSOLIDATED BALANCE SHEETS In Thousands, unless otherwise specified	Dec. 31, 2013 USD ($)	Dec. 31, 2013 CNY	Dec. 31, 2012 CNY
Current assets:
Cash and cash equivalents	$ 71,336	431,844	385,922
Term deposits	11,081	67,083	92,028
Short-term investments	1,177	7,127	23,575
Accounts receivable	4,388	26,561	34,917
Prepaid expenses and other current assets	3,731	22,584	23,455
Amounts due from related parties-current	56,820	343,970	260,184
Deferred tax assets-current	2,109	12,769	9,571
Total current assets	150,642	911,938	829,652
Term deposits-non-current	11,563	70,000
Property and equipment, net	38,416	232,558	238,563
Amounts due from related party-non-current			41,979
Land use rights	4,203	25,441	26,049
Deposits paid for acquisition of property and equipment			3,873
Deferred tax assets - non-current	592	3,586	2,085
Long-term investments	167	1,013	801
Rental deposits	258	1,563	1,497
Acquired intangible assets, net	8,493	51,416	54,499
Goodwill	7,145	43,255	43,255
Total assets	221,479	1,340,770	1,242,253
Current liabilities:
Short-term loan	670	4,056
Accounts payable (including accounts payable of the consolidated VIE without recourse to the Group of RMB2,007 and RMB1,844 as of December 31, 2012 and 2013, respectively)	449	2,716	2,401
Deferred revenues - current (including deferred revenue of the consolidated VIE without recourse to the Group of RMB23,518 and RMB13,391 as of December 31, 2012 and 2013, respectively)	22,917	138,734	134,175
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIE without recourse to the Group of RMB22,113 and RMB19,176 as of December 31, 2012 and 2013, respectively)	22,713	137,497	113,558
Amounts due to related parties (including amounts due to related parties of the consolidated VIE without recourse to the Group of RMB1,926 and RMB1,853 as of December 31, 2012 and 2013, respectively)	8,606	52,099	35,507
Income taxes payable (including income taxes payable of the consolidated VIE without recourse to the Group of RMB10,004 and RMB7,747 as of December 31, 2012 and 2013, respectively)	10,434	63,165	49,294
Other taxes payable (including other taxes payable of the consolidated VIE without recourse to the Group of RMB3,737 and RMB4,442 as of December 31, 2012 and 2013, respectively)	5,989	36,254	27,294
Total current liabilities	71,778	434,521	362,229
Long-term loan	35,331	213,883
Deferred revenues - non-current (including deferred revenue of the consolidated VIE without recourse to the Group of RMB29 and RMB29 as of December 31, 2012 and 2013, respectively)	1,680	10,173	10,654
Deferred tax liabilities-non-current (including deferred taxes liabilities of the consolidated VIE without recourse to the Group of RMB978 and RMB1,616 as of December 31, 2012 and 2013, respectively)	1,434	8,679	13,473
Unrecognized tax benefit (including unrecognized tax benefit of the consolidated VIE without recourse to the Group of RMB3,555 and RMB4,261 as of December 31, 2012 and 2013, respectively)	1,796	10,873	8,795
Total liabilities	112,019	678,129	395,151
Commitments (Note 21)
ChinaEdu Corporation shareholders' equity:
Ordinary shares (RMB0.08 (US$0.01) par value; 100,000,000 shares authorized; 53,428,219 and 47,676,331 shares issued and outstanding, respectively as of December 31, 2012; 30,883,842 and 25,673,185 shares issued and outstanding, respectively as of December 31, 2013)	448	2,715	4,070
Additional paid-in capital	69,763	422,322	682,239
Treasury stock	(551)	(3,336)
Statutory reserves	8,541	51,702	40,976
Accumulated deficits	(1,062)	(6,428)	(46,200)
Accumulated other comprehensive loss	(5,084)	(30,773)	(30,894)
Total ChinaEdu Corporation shareholders' equity	72,055	436,202	650,191
Noncontrolling interests	37,405	226,439	196,911
Total equity	109,460	662,641	847,102
Total liabilities and equity	$ 221,479	1,340,770	1,242,253