Offcn Education Technology Co., Ltd. — Annual Report 2022

Apr 27, 2023

Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

Stock Code：002607 Stock Abbr.：OFFCN EDU Announcement No.:2023-033

Offcn Education Technology Co., Ltd.

2022 Annual Report Summary

I. Important Information

This summary is extracted from the full annual report. In order to fully understand the Company's operating results, financial status and future development plans, investors are advised to read the full context of annual report carefully disclosed on the media designated by the China Securities Regulatory Commission (CSRC). The English version of this summary is provided together with the Chinese version. Should there be any inconsistency between the Chinese version and the English version, the Chinese version shall prevail.

All directors attended the board meeting for reviewing the annual report.

Notices from non-standard audit opinions

□ Applicable √ Not applicable

Preplan of profit distribution or preplan of increasing share capital by converting capital reserve during the reporting period reviewed by the board meeting

□ Applicable √ Not applicable

The Company plans not to distribute cash dividends, bonus shares, nor to increase share capital by converting capital reserve.

Preplan of profit distribution of preferred shares during the reporting period reviewed and approved by the board meeting

• √ Applicable □ Not applicable

II. Basic Information about the Company

1. Company profile

Stock Abbreviation	OFFCN EDU	Stock Code	Stock Code	002607
Listed Stock Exchange	Shenzhen Stock Exchange
Contact Person	Board Secretary		Securities Affairs Representative
Name	Gui Hongzhi		Gu Pan
Office Address	Block B, Hanhua Century Mansion, No.23 Xueqing Road, Haidian District, Beijing		Block B, Hanhua Century Mansion, No.23 Xueqing Road, Haidian District, Beijing
Fax	010-83433666		010-83433666

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Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

Tel.	010-83433677	010-83433688
Email	ir@offcn.com	ir@offcn.com

2. The Company’s main business or products during the reporting period

Offcn Edu is a large-scale multi-category vocational education institution, and it is also the pioneer and leader in the field of public service recruitment examination training in the country. The Company bravely undertakes the mission of the times, continues to create new markets, and serves the society with kindness and altruism.

Offcn Edu mainly serves knowledge-based employment population including college students, university graduates, and various professionals, aged 18 to 45. This huge group of hundreds of millions of people is spread throughout the country, cities and towns at all levels and in all walks of life. Employment and vocational ability improvement are their two core demands.

For hundreds of millions of knowledge-based people and based on the two core demands, the Company’s main business covers three major sectors including training for public service recruitment examinations, college and high institution enrollment examinations and vocational ability enhancement, and it provides more than 100 categories of comprehensive vocational training service. The Company has more than 1,000 outlets across the country, covering more than 300 prefecture-level cities.

After a long-term exploration and accumulation, Offcn Edu has owned a large-scale full-time R&D team of more than 1,600 people, a large-scale teaching team of more than 9,000 teachers, and a staff of more than 20,000 people. Relying on its outstanding team execution and nationwide vertical integrated fast response capability, the Company has developed into an innovation-driven enterprise platform.

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Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

3. Key accounting information and financial indicators

(1) Key accounting data and financial indicators in the recent three years

Does the Company need to adjust its financial data retrospectively or restate its accounting data of previous year? □ Yes √ No

Unit: RMB yuan

	Year End 2022	Year End 2021	Increase/Decrease Over Previous Year End	Year End 2020
Total assets	8,027,414,353.26	10,305,183,525.70	-22.10%	14,418,850,027.27
Net assets attributable to shareholders of the listed Company	779,933,935.77	1,888,818,754.20	-58.71%	4,275,127,793.20
	Year 2022	Year 2021	Increase/Decrease over the previous year	Year 2020
Operating income	4,824,814,105.43	6,911,723,331.79	-30.19%	11,202,494,295.04
Net profit attributable to shareholders of the listed Company	-1,102,059,818.43	-2,369,509,039.00	53.49%	2,304,357,742.74
Net profit after deducting non-recurring profits and losses attributable to shareholders of the listedCompany	-1,113,077,251.50	-2,485,630,452.04	55.22%	1,867,289,479.85
Net cash flow from operating activities	787,191,958.28	-4,097,961,548.90	119.21%	4,882,469,101.91
Basic earnings per share	-0.18	-0.38	52.63%	0.37
Diluted earnings per share	-0.18	-0.38	52.63%	0.37
Weighted average return on net assets	-82.59%	-76.88%	-5.71%	66.15%

(2) Quarterly key accounting data

Unit: RMB yuan

	The First Quarter	The Second Quarter	The Third Quarter	The Fourth Quarter
Operating income	1,212,740,311.93	1,013,964,650.18	1,667,177,321.53	930,931,821.79
Net profit attributable to shareholders of the listed Company	-463,824,594.93	-427,107,115.40	68,240,054.31	-279,368,162.41
Net profit after deducting non-recurring profits and losses attributable to shareholders of the listed Company	-469,727,159.08	-433,912,145.18	62,707,787.41	-272,145,734.65
Net cash flow from operating activities	598,889,061.73	434,093,349.59	556,656,455.57	-802,446,908.61

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Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

Do the above financial indicators or their total differ significantly from those stated in the Company’s disclosed quarterly and semi-annual reports?

□ Yes √ No

4. Share capital and shareholders

(1) Number of ordinary shareholders and preferred shareholders with restored voting rights, and shareholdings of the top 10 shareholders

Unit: Share(s)

									Unit: Share(s)
Total number of shareholders with ordinary shares at the end of the reporting period		207,174	Total number of shareholders with ordinary shares at the end of the previous month before the disclosure date of the annual report		206,003	Total number of preferred shareholders with voting rights restored at the end of the reporting period	0	Total number of preferred shareholders with restored voting rights at the end of the previous month before the disclosure date of the annual report	0
			Shareholdings of the top 10			shareholders
Name of shareholder		Nature of sharehold er	Shareholdin g percentage (%)	Total shares held		Number of shares held with sales restrictions		Pledged, marked or Frozen
								Status of shares	Number of shares
Li Yongxin		Domestic natural person	15.77%	972,611,336		848,561,341		Pledged	606,782,856
Lu Zhongfang		Domestic natural Person	14.94%	921,148,498		0		Pledged	842,500,000
Wang Zhendong		Domestic natural person	12.34%	760,775,418		639,664,063		Pledged	353,470,000
Hunan Chasing Fund Management Co., Ltd. -- Hunan Chasing Changqin No.1 Fund Partnership (Limited Partnership)		Others	5.51%	339,820,822		0
Shanghai Tuopai Private Funds Management Co., Ltd.－Tuopai Xingfeng No. 9 Private Security Investment Fund		Others	5.00%	308,369,970		0
Guangzhou Kangqi Asset Management Center (Limited Partnership)－ Kangqi Asset Chuxin No.1		Others	5.00%	308,369,970		0

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Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

Private Security Investment Fund
Shanghai Kaishuang Private Funds Management Co., Ltd.－ Kaishuang Gongga No. 10 Private Security Investment Fund	Others	2.58%	159,355,594	0
Hong Kong Securities Clearing Co., Ltd.	Overseas legal person	1.26%	77,568,205	0
Wang Junfei	Domestic natural Person	1.21%	74,883,785	0
Beijing Kerui Technology Innovation Investment Center (Limited Partnership)	Domestic non-state- owned legal person	0.89%	54,887,323	0
Description of the above-mentioned shareholders’ relationship or concerted actions		The Company’s controlling shareholder and actual controller Lu Zhongfang and Li Yongxin are in a parent-child relationship. Lu Zhongfang, Li Yongxin, and Beijing Offcn Future Information Consulting Center (Limited Partnership) constitute persons acting in concert. It is unknown whether there is an associated relationship among the above-mentioned other shareholders, and whether the above-mentioned shareholders belong to the parties acting in concert as stipulated in the Administrative Measures on Disclosure of Information Disclosure of Shareholding Changes in Listed Companies
Description of shareholders participating in the margin trading or short selling business (if any)		None

(2) Total number of preferred shareholders and shareholdings of the top 10 preferred shareholders

□ Applicable √ Not applicable

There were no shareholdings of preferred shareholders in the Company during the reporting period.

(3) Block diagram of the property rights and control relationship between the Company and the actual controllers

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Offcn Education Technology Co., Ltd. 2022 Annual Report Summary

5. Existing bonds as of the approval date of the annual report

□ Applicable √ Not applicable

III. Significant events

On December 15, 2021, the Company received the Notice of Filing (No. SR Filing 0232021010) from the CSRC for being suspected of failing to disclose related-party transaction information and violating the laws and regulations of information disclosure. On April 27, 2022, the Company and the relevant parties received the official Decision of Administrative Penalty from the Anhui Securities Regulatory Bureau, which determines Offcn Edu, its subsidiaries Beijing Offcn Education Technology Co., Ltd. and Liaoning Zhongcheng Real Estate Development Co.,Ltd. constitute a related-party relationship with Shaanxi Guancheng Industrial Co., Ltd., Beijing Chuangsheng Construction Decoration Engineering Co., Ltd., Shanghai Beiding Network Technology Co., Ltd., Ji'an Jingkai Lixiangxue Financial Information Service Co., Ltd. and Liaoning Hanhui Industrial Co., Ltd.. The total amount involved in related transactions was RMB 1232.395 million yuan, including RMB 196.335 million yuan in year 2019 and RMB 1036.060 million yuan in year 2020, which account for 6.65% and 30.19% of the net assets of Offcn Edu in the latest period respectively. The Company did not disclose the above-mentioned information in accordance with relevant laws and regulations and there was a material omission of the Company’s information disclosure. A warning was given to and a fine was imposed on the Company and the relevant persons responsible for the situation, and corresponding rectification is required. Specific information is stated in the announcement (No. 2022-032) disclosed by the Company on CNINFO (www.cninfo.com.cn) and other designated media for information disclosure.

On August 24, 2022, the Company and the relevant parties received the Decision on Publicly Reproaching Offcn Education Technology Co., Ltd. and Corresponding Parties from Shenzhen Stock Exchange. In response to the above-mentioned failure to truthfully disclose related party relationships and transactions in accordance with regulations, the Shenzhen Stock Exchange publicly reproached the Company and its chairman Li Yongxin, director and general manager Wang Zhendong, director Shi Lei, CFO Luo Xue, and board secretary Gui Hongzhi.

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