BEIJING, March 20 /Xinhua-PRNewswire-FirstCall/ -- ChinaEdu Corporation (Nasdaq: CEDU), an educational services provider in China (“ChinaEdu” or the “Company”), today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2007.(2)
Fourth Quarter and Fiscal Year 2007 Highlights
-- On December 14, 2007, ChinaEdu successfully completed its initial
public offering and listing on the Nasdaq Global Market of 6,820,000
American Depositary Shares (“ADSs”), each representing three
ordinary shares, at a price to the public of $10.00 per ADS.
-- The number of revenue students(3) in online degree programs during the
fourth quarter of 2007 increased by 23% to over 91,000 from
approximately 74,000 for the same period in 2006.
-- The number of revenue students in online degree programs for the
fiscal year 2007 increased by 36% to over 192,000 from approximately
141,000 for fiscal year 2006.
-- Total net revenue for the fourth quarter of 2007 increased by 37.6% to
RMB79.6 million ($10.9 million) from RMB57.9 million for the
corresponding period in 2006.
-- Total net revenue for the fiscal year 2007 increased by 24.1% to
RMB265.0 million ($36.3 million) from RMB213.5 million for the fiscal
year 2006.
-- Net revenue from online degree programs, the core business segment of
ChinaEdu, increased by 54.5% to RMB64.8 million ($8.9 million) for the
fourth quarter of 2007 from RMB41.9 million for the corresponding
period in 2006.
-- Net revenue from online degree programs for the fiscal year 2007
increased by 28.9% to RMB202.2 million ($27.7 million) from RMB156.8
million for the fiscal year 2006.
-- Net income for the fourth quarter of 2007 increased by 220.6% to
RMB9.4 million ($1.3 million) from RMB2.9 million for the same period
in 2006.
Diluted earnings per ordinary share for the fourth quarter of 2007
increased by 171.4% to RMB0.19 ($0.03) from RMB0.07 for the fourth
quarter of 2006.
-- Net income excluding share-based compensation, goodwill impairment
charges and write-off of receivables from the prior owner of
international curriculum program (non-GAAP) for the fourth quarter of
2007 increased by 204.8% to RMB10.3 million ($1.4 million) from RMB3.4
million for the same period in 2006.
-- Net income for the fiscal year 2007 decreased by 90.3% to RMB2.5
million ($0.3 million) from RMB25.5 million for the fiscal year 2006.
Diluted earnings per ordinary share for the fiscal year 2007 decreased
by 91.7% to RMB0.05 ($0.01) per share from RMB0.60 per share for the
fiscal year 2006.
-- Net income excluding share-based compensation, goodwill impairment
charges and write-off of receivables from the prior owner of
international curriculum programs (non-GAAP) for the fiscal year 2007
decreased by 9.9% to RMB24.9 million ($3.4 million) from RMB27.7
million for the fiscal year 2006.
“We are pleased to report the solid results for the fourth quarter of 2007, with healthy revenue growth demonstrating scalability of our business model,” said Ms. Julia Huang, ChinaEdu’s Chairman and Chief Executive Officer. “These results were driven by our continued strategy of helping the universities to increase their enrollment growth in our online degree programs through enhancing our sales and marketing efforts and improving our quality of services to the Universities and students, which we believe will further strengthen our position as a leading education services provider in China.” Ms. Huang continued, “We expect to continue to take advantage of growth opportunities in the Chinese education market in order to position ourselves to achieve sustainable long-term growth.”
Financial Results for the Fourth Quarter Ended December 31, 2007
ChinaEdu reported total net revenue of RMB79.6 million ($10.9) for the fourth quarter ended December 31, 2007, representing a 37.6% increase from the corresponding period of 2006.
Net revenue from online degree programs for the fourth quarter of 2007 was RMB64.8 million ($8.9 million), representing a 54.5% increase from RMB41.9 million for the corresponding period in 2006. This increase was attributable primarily to the following factors:
-- Our university partners’ online degree programs experienced
significant growth in revenue students in the quarter ended December
31, 2007 as compared to the corresponding period of 2006. In the
aggregate, our university partners had over 91,000 revenue students
during the fourth quarter of 2007, representing a 23% increase from
the same period in 2006.
-- A non-recurring RMB8.4 million ($1.2 million) payment made by our
university partners during the fourth quarter as a result of excess
spending by the online education colleges, which in turn reduced the
tuition fees payable to ChinaEdu during the previous years.
-- Value-added tax (“VAT”) refund of RMB3.5 million ($0.5 million) in
the fourth quarter of 2007, which was recognized as net revenue from
online degree programs when received.
Net revenue from the Company’s non-online degree programs (international curriculum programs, private primary and secondary schools and online tutoring programs) for the fourth quarter of 2007 was RMB14.8 million ($2.0 million), representing a 6.9% decrease from RMB15.9 for the corresponding period in 2006. This decrease was primarily attributable to the decline in revenue from the FEC program (part of our international curriculum programs), which has experienced lower student enrollment and lower per student fees for the academic year started in September 2007, as compared to the academic year started in September 2006. This is mainly attributable to intensified competition among service providers, which increased the bargaining power of the schools with such service providers, including the Company.
Total cost of revenue for the fourth quarter of 2007 was RMB24.5 million ($3.4 million), representing a 12.6% increase from RMB21.8 million for the corresponding period of 2006. This increase is attributable to the changes discussed below.
Cost of revenue for online degree programs for the fourth quarter of 2007 was RMB15.7 million ($2.2 million), representing a 14.2% increase from RMB13.8 million for the fourth quarter of 2006. This increase was attributable primarily to an increase in the number of students in our partners’ online degree programs and increased recruiting expenses.
Cost of revenue for non-online degree programs for the fourth quarter of 2007 was RMB8.8million ($1.2 million), representing a 9.8% increase from RMB8.0 million for the fourth quarter of 2006. This increase was attributable primarily to an increase in the number of faculty members in our private and primary schools in 2007 in response to projected growth in student enrollment in one of those schools.
As a result of the factors discussed above, gross profit for the fourth quarter of 2007 was RMB55.1 million ($7.6 million), representing a 52.7% increase from RMB36.1 million for the corresponding period of 2006.
General and administrative expenses for the fourth quarter of 2007 were RMB26.1 million ($3.6 million), representing a 79.4% increase from RMB14.6 million for the fourth quarter of 2006. This increase was attributable primarily to the increase in the number of general and administrative employees, an increase in performance-based compensation and additional expenses associated with being a newly listed public company in the U.S., including increased professional services fees, specifically increased accounting and legal fees.
Research and development expenses for the fourth quarter of 2007 were RMB6.8 million ($0.9 million), representing a 76.6% increase from RMB3.9 million for the corresponding period in 2006. This increase was attributable primarily to increased research and development activities in some of the Company’s collaborative alliances(4), and increased bonus compensation paid to research and development personnel.
Share-based compensation for the fourth quarter of 2007, which was allocated to related operating cost and expense line items, was RMB1.1 million ($0.2), representing an 83.3% increase from RMB0.6 million for the corresponding period in 2006. This increase was attributable primarily to an increase in share-based compensation due to an increase in the number of options granted in fiscal year 2007.
As a result of the factors discussed above, income from operations for the fourth quarter of 2007 was RMB18.7 million ($2.6 million), representing a 32.8% increase from RMB14.1 million for the corresponding period of 2006.
Net income was RMB9.4 million ($1.3 million) for the fourth quarter of 2007, representing a 220.6% increase from RMB2.9 million for the corresponding period in 2006. This increase was attributable primarily to the improved performance of the Company’s online degree programs, as well as the other factors discussed above. Diluted earnings per ordinary share for the fourth quarter of 2007 increased by 171.4% to RMB0.19 ($0.03) from RMB0.07 per share in the corresponding period of 2006.
As of December 31, 2007, the Company had cash, cash equivalents and term deposit of RMB503.2 million ($69.0million).
Financial Results for the Fiscal Year Ended December 31, 2007
ChinaEdu reported total net revenue for the fiscal year ended December 31, 2007 of RMB265.0 million ($36.3 million), representing a 24.1% increase from the fiscal year ended December 31, 2006.
Net revenue from online degree programs for the fiscal year 2007 was RMB202.2 million ($27.7 million), representing a 28.9% increase from RMB156.8 million for the fiscal year 2006. This increase was attributable primarily to following factors:
-- Our university partners’ online degree programs experienced
significant growth in revenue students in fiscal year 2007 as compared
to fiscal year 2006. In the aggregate, our university partners had
approximately 192,000 revenue students during fiscal year 2007,
representing a 36% increase from fiscal year 2006. This increase in
revenue students was partially offset by increased payments to third-
party learning centers by our university partners. The aggregate
payment to third-party learning centers by our university partners in
2007 increased to 41% of gross tuition receipts in 2007, from 38% in
2006. This increase was attributable primarily to increased demand by
universities for services provided by a limited number of learning
centers.
-- A non-recurring RMB8.4 million ($1.2 million) compensation by our
university partners during the fourth quarter for the over spending by
the online education colleges which in turn reduced the tuition fees
payable to ChinaEdu during the previous years.
Net revenue from the Company’s non-online degree programs for the fiscal year 2007 was RMB62.8 million ($8.6 million), representing a 10.8% increase from RMB56.7 million for the fiscal year 2006. This increase was attributable primarily to the increase in student enrollment for the academic year started in September 2006 and ended in August 2007, as compared to the academic year started in September 2005 and ended in August 2006.
Total cost of revenue for fiscal year 2007 was RMB96.3 million ($13.2 million), representing a 20% growth from RMB80.3 million for fiscal year 2006. This increase is attributable to the changes discussed below.
Cost of revenue for online degree programs for fiscal year 2007 was RMB58.0 million ($7.9 million), representing a 13.3% increase from RMB51.2 million in the fiscal year 2006. This increase was attributable primarily to an increase in the number of students enrolled in our university partners’ online degree programs and increased student recruiting-related expenses.
Cost of revenue for non-online degree programs for the fiscal year 2007 was RMB38.3 million ($5.3 million), representing a 31.7% increase from RMB29.1 million for the fiscal year 2006. This increase was attributable primarily to following factors:
-- The number of faculty members in the Company’s private primary and
secondary schools increased significantly in 2007, in response to a
projected increase in student enrollment.
-- The international curriculum program organized more overseas student
academic tours and overseas training tours for teachers in fiscal year
2007, as compared to fiscal year 2006.
General and administrative expenses for the fiscal year 2007 were RMB76.9 million ($10.5 million), representing a 57.4% growth from RMB48.8 million in fiscal year 2006. The increase was primarily attributable to the following factors:
-- In the quarter ended September 30, 2007, the Company recorded a write-
off of approximately RMB4.7 million, including write-offs of
approximately RMB4 million in delinquent accounts receivable and loans
due from the prior owner of the international curriculum program, and
a write-off of approximately RMB0.7 million of fixed assets
attributable to the online tutoring program.
-- In fiscal year 2007, the Company incurred additional expenses
associated with being a new public company, including increased
professional services fees, specifically increased accounting and
legal fees.
-- In fiscal year 2007, the Company substantially increased the number of
employees as a result of continuous business expansions.
-- In fiscal year 2007, the Company paid more in performance-based bonus
compensation due to improved operational results in most of its
collaborative alliances.
Selling and marketing expenses for the fiscal year 2007 were RMB14.3 million ($2.0 million), representing a 10.7% increase from RMB12.9 million for the fiscal year 2006. This increase is attributable primarily to an increase in the number of sales and marketing personnel in fiscal year 2007 in response to the continuous expansion of our business.
Research and development expenses for the fiscal year 2007 were RMB21.0 million ($2.9 million), representing a 47.4% growth from RMB14.3 million for the fiscal year 2006. This increase was attributable primarily to increased research and development activities in some of the Company’s collaborative alliances, and increased bonus compensation paid to research and development personnel.
Income from operations for fiscal year 2007 was RMB40.3 million ($5.5 million), a 29.6% decrease from RMB57.2 million for the fiscal year 2006. Income from operations excluding goodwill impairment charge, share-based compensation, and write-off of receivables from the prior owner of the international curriculum programs (non-GAAP) for fiscal year 2007 was RMB64.1 million, representing a 7% increase from RMB59.9 million for the fiscal year 2006.
Net income for fiscal year 2007 was RMB2.5 million ($0.3 million), representing a 90.3% decrease from RMB25.5 million for the fiscal year 2006. Net income excluding share-based compensation, goodwill impairment charge and write-off of receivables from the prior owner of international curriculum program (non-GAAP) was RMB24.9 million ($3.4 million), representing a 9.9% decrease from RMB27.7 million for the fiscal year 2006.
Write-down of goodwill and intangible assets. In the third quarter of 2007, the Company recognized a goodwill impairment charge of RMB16.2 million ($2.2 million). The impairment related to the FEC program, as management has significantly reduced its profitability forecast for this portion of the Company’s business. Management now expects future net revenue from the FEC program to be lower than previous forecasts because of lower student enrollment and lower per student fees under the Company’s contractual arrangements with participating schools. These developments are the result of intensified competition among service providers, which increased the bargaining power of the schools with such service providers, including the Company, and the Company’s expansion of the program into less affluent areas of China, where tuition and fees tend to be lower.
Recent Developments
-- In March 2008, ChinaEdu entered into a definitive agreement to acquire
the remaining 20% equity interest in the 101 Online School, an online
tutoring and test preparation program in which the Company owned the
other 80% interest, in order to capitalize on the growth potential of
the online tutoring business.
-- In March 2008, the Company announced an exclusive 20-year joint
venture agreement with Beijing Forestry University to provide online
education services to the University.
Outlook for the First Quarter of 2008
For the first quarter of 2008, ChinaEdu expects its total net revenue to be in the range of RMB66 million ($9.0 million) to RMB68 million ($9.3 million). This forecast reflects ChinaEdu’s current and preliminary view, which is subject to change.
Conference Call
ChinaEdu will host a conference call on Thursday, March 20, 2008 at 8:30 AM U.S. Eastern Time, 8:30 PM Beijing/Hong Kong Time on March 20, 2008.
Dial-in information for the earnings conference call is as follows:
US: 1.866.761.0749 / 1.617.614.2707
Hong Kong: 852.3002.1672
China (Mainland): 10.800.130.0399
The passcode for the call is: CEDU.
A replay of the conference call will be available until March 27, 2008 by dialing 1.888.286.8010 or 1.617.801.6888 and entering passcode: 24141533.
Additionally, a live and archived webcast of the conference call will be available at http://www.chinaedu.net.
Non-GAAP Financial Measures
To supplement the unaudited condensed consolidated financial information presented in accordance with Accounting Principles Generally Accepted in the United States of America (“GAAP”), the Company uses non-GAAP measures of income from operations and net income, which are adjusted from results based on GAAP to exclude goodwill impairment, share-based compensation and write-off of receivables from the prior owner of international curriculum programs. The non-GAAP financial measures are provided to enhance the investors’ overall understanding of the Company’s current and past financial performance in on-going core operations as well as prospects for the future. These measures should be considered in addition to results prepared and presented in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and therefore deems it important to provide all of this information to investors.
About ChinaEdu
ChinaEdu Corporation is an educational services provider in China, incorporated as an exempted limited liability company in the Cayman Islands. Established in 1999, the Company’s primary business is to provide comprehensive services to the online degree programs of leading Chinese universities. These services include academic program development, technology services, enrollment marketing, student support services and finance operations. The Company’s other lines of businesses include the operation of private primary and secondary schools, online interactive tutoring services and providing marketing and support for international curriculum programs.
The Company believes it is the largest service provider to online degree programs in China in terms of the number of higher education institutions that are served and the number of student enrollments supported. The Company currently has strategic relationships with twelve universities to operate online degree programs, ten of which are under long-term, exclusive contracts that vary from 15 to 50 years in length.
Forward-Looking Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including certain plans, expectations, goals, and projections, which are subject to numerous assumptions, risks, and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and contingencies, many of which are beyond our control which may cause actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. The Company’s actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including those described under the heading “Risk Factors” in the Company’s final prospectus filed with the Securities and Exchange Commission on December 11, 2007, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Unless required by law, the Company undertakes no obligation to (and expressly disclaim any such obligation to) update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(1) This announcement contains translations of certain Renminbi (“RMB”)
amounts into U.S. dollar (“$”) amounts at specified rates solely
for the convenience of the reader. Unless otherwise stated, all
translations from RMB to U.S. dollars were made at the rate of
RMB7.2946 to $1.00, the noon buying rate in effect on December 31,
2007 in The City of New York for cable transfers of RMB as certified
for customs purposes by the Federal Reserve Bank of New York. The
Company makes no representation that the RMB or U.S. dollar amounts
referred to could be converted into U.S. dollars or RMB, as the case
may be, at any particular rate or at all.
(2) For analytical presentation, all percentages are calculated using the
numbers presented in the financial statements contained in this
earnings release. An explanation of the Company’s non-GAAP
financial measures is included in the section entitled “Non-GAAP
Financial Measures” below, and the related reconciliations to GAAP
financial measures are presented in the accompanying financial
statements.
(3) “Revenue students” refers to students of university online degree
programs who have paid tuition in the applicable period.
(4) “Collaborative alliance” or “Collaborative alliances” refer to
the subsidiary or subsidiaries that the Company formed with certain
university partners to provide services to their online degree
programs, which subsidiaries are majority owned by the Company.
ChinaEdu Corporation
Unaudited Condensed Consolidated Balance Sheets
Dec 31, Sep 30, Dec 31, Dec 31,
(in thousands) 2006 2007 2007 2007
RMB RMB RMB USD
Current assets:
Cash and cash equivalents 148,315 128,834 497,114 68,148
Accounts receivable, net 12,578 1,425 1,238 170
Term deposit 10,000 10,200 6,042 828
Prepaid expenses and other current
assets 8,999 15,241 17,492 2,398
Amounts due from related parties 59,979 62,320 105,522 14,466
Deferred tax assets 5,347 1,700 9,521 1,305
Total current assets 245,218 219,720 636,929 87,315
Cost method investment 1,210 1,210 1,210 166
Land use rights, net 25,287 25,589 26,949 3,694
Property and equipment, net 43,657 61,954 130,745 17,924
Deposits paid for acquisition of
property and equipment -- 28,624 2,025 278
Intangible assets, net 102,836 108,019 105,852 14,511
Deferred tax assets 2,057 2,188 1,416 194
Rental deposits 436 1,387 1,623 222
Goodwill 76,509 73,319 73,319 10,051
Total assets 497,210 522,010 980,068 134,355
Liabilities, minority interest and
shareholders’ equity
Current liabilities:
Accounts payable 8,413 3,309 2,773 380
Deferred revenues 78,746 27,888 83,816 11,490
Accrued expenses and other current
liabilities 21,754 20,178 42,096 5,771
Amounts due to related parties 7,121 18,901 28,316 3,882
Income taxes payable 12,960 13,409 22,455 3,078
Other taxes payable 3,752 4,483 6,666 914
Total current liabilities 132,746 88,168 186,122 25,515
Long term debt -- -- 25,724 3,526
Deferred revenues 289 103 3,124 428
Convertible notes 30,654 23,333 -- --
Deferred tax liabilities 19,879 23,528 24,036 3,295
Unrecognized tax benefit -- 4,198 4,332 594
Total liabilities 183,568 139,330 243,338 33,358
Minority interests 49,323 61,690 57,996 7,951
Shareholders’ equity:
Total shareholders’ equity 264,319 320,990 678,734 93,046
Total liabilities, minority
interest, and shareholders’ equity 497,210 522,010 980,068 134,355
ChinaEdu Corporation
Unaudited Condensed Consolidated Statements of Operations
(in thousands except for For the three Months Ended
share, per share December September December December
information) 31, 2006 30, 2007 31, 2007 31, 2007
RMB RMB RMB USD
Net Revenue:
Online degree programs 41,950 48,647 64,813 8,886
International curriculum
programs 7,772 8,957 6,640 910
Online tutoring programs 4,856 4,351 4,488 615
Private primary and
secondary schools 3,277 3,457 3,672 503
Total net revenue 57,855 65,412 79,613 10,914
Cost of revenue:
Online degree programs 13,774 18,557 15,729 2,156
International curriculum
programs 5,042 7,528 4,663 639
Online tutoring programs 879 1,031 720 99
Private primary and
secondary schools 2,093 2,649 3,414 468
Total cost of revenue 21,788 29,765 24,526 3,362
Gross profit:
Online degree programs 28,176 30,090 49,084 6,729
International curriculum
programs 2,730 1,429 1,977 271
Online tutoring programs 3,977 3,320 3,768 517
Private primary and
secondary schools 1,184 808 258 35
Total gross profit 36,067 35,647 55,087 7,552
Online degree programs 67.2% 61.9% 75.7% 75.7%
International curriculum
programs 35.1% 16.0% 29.8% 29.8%
Online tutoring programs 81.9% 76.3% 84.0% 84.0%
Private primary and
secondary schools 36.1% 23.4% 7.0% 7.0%
Gross profit margin 62.3% 54.5% 69.2% 69.2%
Operating expenses:
General and administrative 14,551 20,824 26,106 3,579
Selling and marketing 3,590 4,722 3,491 479
Research and development 3,861 5,605 6,818 935
Goodwill impairment 16,192
Total operating expenses 22,002 47,343 36,415 4,993
Income/(loss) from
operations 14,065 -11,696 18,672 2,559
Operating margin 24.3% -17.9% 23.5% 23.5%
Other income -- -- -- --
Interest income 379 516 2,398 329
Interest expense (570) (674) (475) (65)
Income/(loss) before income
tax provisions and
minority interest 13,874 (11,854) 20,595 2,823
Income tax expense (1,730) (2,505) (2,519) (345)
Minority interest, net of
taxes (9,201) (5,065) (8,639) (1,184)
Net income/(loss) 2,943 (19,424) 9,437 1,294
Net margin 5.1% -29.7% 11.9% 11.9%
Net income/(loss) per share:
Basic 0.07 -0.47 0.21 0.03
Diluted 0.07 -0.47 0.19 0.03
Net income/(loss) per ADS:
Basic 0.21 -1.41 0.63 0.09
Diluted 0.21 -1.41 0.57 0.09
Weighted average aggregate
number of ordinary shares
outstanding:
Basic 39,643,130 41,722,746 45,015,332 45,015,332
Diluted 42,774,398 41,722,746 50,477,265 50,477,265
ChinaEdu Corporation
Unaudited Condensed Consolidated Statements of Operations
Twelve Months Ended
(in thousands except for share, per December December December
share information) 31, 2006 31, 2007 31, 2007
RMB RMB USD
Net Revenue:
Online degree programs 156,845 202,185 27,717
International curriculum programs 28,428 31,434 4,309
Online tutoring programs 17,384 18,013 2,469
Private primary and secondary schools 10,874 13,356 1,831
Total net revenue 213,531 264,988 36,326
Cost of revenue:
Online degree programs 51,215 58,027 7,955
International curriculum programs 17,212 23,503 3,222
Online tutoring programs 3,452 3,875 531
Private primary and secondary schools 8,429 10,944 1,500
Total cost of revenue 80,308 96,349 13,208
Gross profit:
Online degree programs 105,630 144,158 19,762
International curriculum programs 11,216 7,931 1,087
Online tutoring programs 13,932 14,138 1,938
Private primary and secondary schools 2,445 2,412 331
Total gross profit 133,223 168,639 23,118
Online degree programs 67.3% 71.3% 71.3%
International curriculum programs 39.5% 25.2% 25.2%
Online tutoring programs 80.1% 78.5% 78.5%
Private primary and secondary schools 22.5% 18.1% 18.1%
Gross profit margin 62.4% 63.6% 63.6%
Operating expenses:
General and administrative 48,846 76,893 10,541
Selling and marketing 12,893 14,277 1,957
Research and development 14,263 21,021 2,882
Goodwill impairment 16,192 2,220
Total operating expenses 76,002 128,383 17,600
Income/(loss) from operations 57,221 40,256 5,518
Operating margin 26.8% 15.2% 15.2%
Other income -- 394 54
Interest income 1,172 4,118 565
Interest expense (2,279) (2,130) (292)
Income/(loss) before income
tax provisions and
minority interest 56,114 42,638 5,845
Income tax expense (6,994) (15,003) (2,057)
Minority interest, net of taxes (23,581) (25,148) (3,447)
Net income/(loss) 25,539 2,487 341
Net margin 12.0% 0.9% 0.9%
Net income/(loss) per share:
Basic 0.65 0.06 0.01
Diluted 0.60 0.05 0.01
Net income/(loss) per ADS:
Basic 1.95 0.18 0.03
Diluted 1.80 0.15 0.03
Weighted average aggregate number of
ordinary shares outstanding:
Basic 39,209,606 42,147,170 42,147,170
Diluted 42,708,213 47,322,184 47,322,184
ChinaEdu Corporation
Reconciliations of non-GAAP results of operations
measures to GAAP measures
Three Months Ended
December September December December
(in thousands, unaudited) 31, 2006 30, 2007 31, 2007 31, 2007
RMB RMB RMB US$
Income (loss) from operations
GAAP Result 14,065 (11,696) 18,672 2,559
Adjustment-Share-based compensation 588 1,180 1,148 157
Adjustment-Goodwill impairment -- 16,192 -- --
Adjustment for write-off of
receivables from prior owner of
International Curriculum Program 4,031
Non-GAAP Result 14,653 9,707 19,820 2,716
Net income (loss)
GAAP Result 2,943 (19,424) 9,437 1,294
Adjustment for operation profit 588 21,403 1,148 157
Adjustment-Minority interest for
Share-based compensation (145) (273) (265) (36)
Adjustment-Deferred tax benefit for
write-off of receivables from prior
owner of International Curriculum
Programs (636)
Non-GAAP Result 3,386 1,070 10,320 1,415
ChinaEdu Corporation
Reconciliations of non-GAAP results of operations
measures to GAAP measures
Twelve Months Ended
December December December
(in thousands, unaudited) 31, 2006 31, 2007 31, 2007
RMB RMB US$
Income (loss) from operations
GAAP Result 57,221 40,256 5,518
Adjustment-Share-based compensation 2,711 3,643 499
Adjustment-Goodwill impairment -- 16,192 2,220
Adjustment for write-off of
receivables from prior owner of
International Curriculum Program 4,031 553
Non-GAAP Result 59,932 64,122 8,790
Net income (loss)
GAAP Result 25,539 2,487 341
Adjustment for operation profit 2,711 23,866 3,272
Adjustment-Minority interest for
Share-based compensation (569) (774) (106)
Adjustment-Deferred tax benefit for
write-off of receivables from prior
owner of International Curriculum
Programs (636) (87)
Non-GAAP Result 27,681 24,943 3,420