Offcn Education Technology Co., Ltd. 2019 Annual Report
Total Page:16
File Type:pdf, Size:1020Kb
OFFCN EDUCATION TECHNOLOGY CO., LTD. 2019 Annual Report Stock Code: 002607 Stock Abbr.: OFFCN EDU March, 2020 1 Offcn Education Technology Co., Ltd. 2019 Annual Report Chapter I. Important Notes, Contents and Definitions The board of directors, the supervisor committee, the directors, supervisors, and senior management of the company shall hereby guarantee the authenticity, accuracy and completeness of the annual report also without misrepresentations, misleading statements, or material omissions, and bear individual and joint legal liabilities. Wang Zhendong, the Company’s legal representative, Shi Lei, the person in charge of accounting work, and Luo Xue, the person in charge of the accounting department, hereby declare that the financial report in this Annual Report is authentic, accurate and complete. All directors attended the board meeting approving this Annual Report. Non-standard audit report □Applicable √ Not applicable Major deficiencies of internal control □Applicable √ Not applicable The forward-looking descriptions of future plans and development strategies involved in this Annual Report do not constitute a substantial commitment to investors. The possible risks have been detailed in Section IX “Forecast of the Future Development of the Company” of Chapter IV “Discussion and Analysis of Corporate Operating”. Please pay attention to the potential investment risks. According to the arrangement of the major assets restructuring in 2018, the net profits attributable to shareholders of the parent company after deducting non-recurring profits and losses from the restructuring counterparty, Beijing Offcn Education Technology Co., Ltd. shall be no less than RMB 930 million, RMB 1.3 billion and RMB 1.65 billion in years of 2018, 2019 and 2020 respectively. Beijing Offcn Education Technology Co., Ltd. has achieved the net profits after deducting non-recurring profits and losses amounted to RMB 1,122,779,085.16 and RMB 1,719,196,366.83 in 2018 and 2019, with a completion rate of 120.73% and 132.25% respectively. According to the profit distribution proposal reviewed and approved by the Company’s Board of Directors on March 9, 2020, based on the total share capital of 6,167,399,389 shares as of December 31, 2019, a cash dividend of RMB 2.40 (including tax) will be distributed for every 10 shares to all shareholders in a total of RMB 1,480,175,853.36. No equity dividends will be distributed and the equity reserves will not be converted to share capital. Note: The Company’s 2019 Annual Report is prepared and published in Chinese version, and the English version is for reference only. Should there be any inconsistency between the Chinese version and English version, the Chinese version shall prevail. 2 Offcn Education Technology Co., Ltd. 2019 Annual Report Contents Chapter I. Important Notes, Contents and Definitions ...............................................................................................2 Chapter II. Corporate Profile & Key Financial Indicators ..........................................................................................7 Chapter III. Corporate Business Summary ...............................................................................................................15 Chapter IV. Discussion and Analysis of Corporate Operating ..................................................................................22 Chapter V. Significant Events ...................................................................................................................................48 Chapter VI. Changes in Shares and Information about Shareholders .......................................................................89 Chapter VII. Information about Preferred Shares ................................................................................................... 101 Chapter VIII. Convertible Corporate Bonds ........................................................................................................... 102 Chapter IX. Information about Directors, Supervisors, Senior Management and Employees ............................... 103 Chapter X. Corporate Governance.......................................................................................................................... 118 Chapter XI. Corporate Bonds ................................................................................................................................. 127 Chapter XII. Financial Report ................................................................................................................................ 128 Chapter XIII. Documents Available for Reference ................................................................................................. 275 3 Offcn Education Technology Co., Ltd. 2019 Annual Report Definitions Term(s) Definition The listed Company , The Company, Offcn Education Technology Co., Ltd. Offcn Edu Yaxia Auto Yaxia Automobile Co., Ltd. (predecessor of the listed Company) The Counterparty, Li Yongxin and Lu Zhongfang, Li Yongxin, Wang Zhendong, Aerospace Industry, Guangyin Venture, Kerui other 10 Counterparties, All Technology Innovation, Guo Shihong, Liu Bin, Zhang Yongsheng, Yang Shaofeng, Zhang Shareholders of Offcn Ltd. Zhian Base on the assessment, Yaxia Auto takes all assets and liabilities other than retained assets as the exchange-out assets to swap the equivalent portion of 100% equity of Offcn which This major assets restructuring, held by Li Yongxin and other 10 counterparties, and the swapping deficiency is settled by This transaction, issuance of Yaxia Auto shares according to the proportion of shareholding. At the same time, Yaxia Industrial transfers 80,000,000 and 72,696,561 Yaxia Auto shares to Offcn Partnership This restructuring and Li Yongxin respectively. All shareholders of Offcn entrust Yaxia Auto to directly deliver the exchange-out assets to Yaxia Industrial or its designated third party as the consideration for the transfer of 80,000,000 shares to Offcn Partnership, and Li Yongxin offers RMB1 billion in cash as the consideration for the transfer of 72,696,561 shares. In this transaction, the retained assets of the listed Company as of the evaluation base date, including: 1) 18% shares of Shanghai Zuighuibao Network Technology Co., Ltd. Retained Assets 2) 7.81% shares of Anhui Ningguo Rural Commercial Bank Co., Ltd.; 3) 12 cases of state-owned land using rights and attached properties and construction in process on the land. Exchang-out Assets All assets and liabilities of Yaxia Auto except retained assets Yaxia Industry Anhui Yaxia Industry Co., Ltd. Formerly ultimate controlling company of the Company Phase I Employee Stock Ownership Phase I employee stock ownership plan of Yaxia Auto Co., Ltd. Plan Yaxia Industry and Persons Acting in Yaxia Industry, Zhou Xiayun, Zhou Hui, Zhou Li, Phase I employee stock ownership plan 4 Offcn Education Technology Co., Ltd. 2019 Annual Report Term(s) Definition Concert Aerospace Industry Beijing Aerospace Industry Investment Fund (Limited Partnership) Guangyin Venture Beijing Guangyin Venture Capital Center (Limited Partnership) Kerui Technology Innovation Beijing Kerui Technology Innovation Investment Center (Limited Partnership) Beijing Offcn Future Information Consulting Center (Limited Partnership), established by Offcn Partnership all shareholders of Offcn Ltd. in accordance with the shareholdings ratio, which is used to undertake 80,000,000 shares of the listed Company transferred by Yaxia Industry Offcn Online Beijing Offcn Online Education Technology Co., Ltd. Performance Compensation Obligor, Lu Zhongfang, Li Yongxin, Wang Zhendong, Guo Shihong, Liu Bin, Zhang,Yongsheng, Performance Commitment Person Yang,Shaofeng, Zhang Zhian Committed net profit attributable to shareholders of the parent company after deducting non- Committed net profit recurring profits and losses under the consolidated statement of any of the three fiscal years of Offcn Edu. The actual net profits attributable to shareholders of the parent company after deducting Actual net profits non-recurring profits and losses under the consolidated statements of any of the three fiscal years of Offcn Edu. Net profits after deducting The net profits attributable to the owner of the parent company after deducting non-recurring non-recurring profits and losses profits and losses under the consolidated statement. Offcn Ltd. Beijing Offcn Education Technology Co., Ltd. (predecessor:Beijing Offcn Education Beijing Offcn Technology Stock Co., Ltd.) Offcn Online Beijing Offcn Online Education Technology Co., Ltd. Profit Compensation Commitment signed by Yaxia Auto and Lu Zhongfang, Li Yongxin, Profit Compensation Commitment Wang Zhendong, Guo Shihong, Liu Bin, Zhang Yongsheng, Yang Shaofeng, Zhang Zhian. CSRC China Securities Regulatory Commission SZSE Shenzhen Stock Exchange 5 Offcn Education Technology Co., Ltd. 2019 Annual Report Term(s) Definition Company Law Company Law of the People's Republic of China Securities Law Securities Law of the People's Republic of China the Articles of Association Articles of Association of Offcn Education Technology Co., Ltd. RMB Chinese yuan Students can watch real-time online teaching (not limited to video, voice, PPT, animation, The Live Program etc.) through the Internet in a fixed time. During the teaching process, interaction between teachers and students can be realized through voice or text. 6 Offcn Education Technology Co., Ltd. 2019 Annual Report Chapter II. Corporate Profile & Key Financial Indicators