BEIJING, March 7, 2012 /PRNewswire-Asia/ -- ChinaEdu
Corporation (NASDAQ: CEDU) ("ChinaEdu" or the "Company"), a leading
online educational services provider in China, today announced its unaudited financial
results for the fourth quarter and fiscal year ended December 31, 2011.[1]
Fourth Quarter 2011 Highlights
- Total net revenue for the fourth quarter of 2011 was
$19.2 million, a 19.4 percent
increase from $16.0 million in the
corresponding period in 2010. Total net revenue exceeded Company
guidance for the quarter.
- Net revenue from online degree programs was $15.4 million, an increase of 19.8 percent from
$12.8 million in the corresponding
period of 2010.
- Net income attributable to ChinaEdu was $0.4 million.
- Adjusted net income attributable to ChinaEdu[2] was
$0.8 million.
- Net income attributable to ChinaEdu per diluted ADS[3] was
$0.022.
- Adjusted net income attributable to ChinaEdu per diluted ADS[4]
was $0.049.
- The number of revenue students[5] in online degree programs
during the Fall 2011 semester increased roughly 27.9 percent
year-over-year to approximately 197,000 students.
Full Year 2011 Highlights
- Total net revenue for 2011 was $69.3
million, a 12.1 percent increase from $61.8 million in 2010.
- Net revenue from online degree programs was $55.2 million, an increase of 12.0 percent from
$49.3 million in 2010.
- Net income attributable to ChinaEdu was $2.7 million.
- Adjusted net income attributable to ChinaEdu was $4.4 million.
- Net income attributable to ChinaEdu per diluted ADS was
$0.158.
- Adjusted net income attributable to ChinaEdu per diluted ADS
was $0.260.
- The number of revenue students in online degree programs during
2011 increased roughly 14.5 percent over 2010 to approximately
356,000 students.
Julia Huang, chairman of the
board of directors of ChinaEdu commented, "We were pleased to see a
healthy increase in our online degree enrollment as well as
increases in revenue from other business lines in the fourth
quarter. Our learning centers network expansion was on track and we
also saw the results of our effort to drive increased monetization
at each of our learning centers." She continued, "Last year was a
year of reinvention in our non-online degree programs. While
investment in those areas continued throughout the full fiscal year
2011, we are confident that after school tutoring and international
curriculum programs will be important pieces of the Company's
business in the years to come. We continue to focus on driving
enrollment in our core online degree programs, while prudently
expanding the other areas of our business."
Mr. Simon Mei, chief financial
officer commented, "By enforcing tight cost control measures
throughout 2011, we ended the fourth quarter with general and
administrative expenses well under control. At the same time we saw
strong revenue increases from our online degree programs as well as
from other areas of our business. We will continue to control costs
in 2012 and focus on further bolstering online degree program
revenue. With a strong balance sheet and steady revenue growth from
core business lines, we are well positioned to continue to ramp up
operations in our online and offline tutoring programs, private
schools and international curriculum programs."
Financial Results for the Fourth Quarter
Ended December 31,
2011
Net Revenue
Total net revenue for the fourth quarter of 2011 was
$19.2 million, a 19.4 percent
increase from $16.0 million in the
corresponding period in 2010.
Net revenue from online degree programs for the fourth quarter
of 2011 was $15.4 million, a 19.8
percent increase over $12.8 million
in the corresponding period in 2010. The increase was primarily due
to the continued expansion of the Company's learning centers
network, as well as organic growth in revenue students enrolled in
online degree programs. Enrollment for 2011 Fall semester online
degree programs was approximately 197,000 revenue students, a 27.9
percent increase from approximately 154,000 revenue students
enrolled in the Fall 2010 semester.
As of December 31 2011, ChinaEdu's
learning centers network was providing recruiting services for 21
universities with 105 operational learning centers, of which 61
were proprietary centers[6] and 44 were contracted centers[7]. This
compares to 97 operational learning centers as of December 31, 2010, of which 54 were proprietary
and 43 were contracted centers.
Net revenue from non-degree programs, including online tutoring
programs, private primary and secondary schools and international
and elite curriculum programs, in the fourth quarter of 2011 was
$3.8 million, a 17.6 percent increase
from $3.2 million in the fourth
quarter of 2010. Of that, approximately $0.4
million was attributable to increased enrollment at our
private school in Anqing.
Cost of Revenue
Total cost of revenue for the fourth quarter of 2011 was
$8.6 million, an increase of 21.8
percent, from $7.1 million in the
corresponding period of 2010.
Cost of revenue for online degree programs in the fourth quarter
of 2011 was $5.8 million, an increase
of 19.6 percent compared to $4.9
million in the corresponding period of 2010. The increase is
mainly attributable to increased recruiting related costs as well
as spending related to the expansion of the Company's learning
centers network.
Cost of revenue for non-degree programs in the fourth quarter of
2011 was $2.8 million, an increase of
26.5 percent from $2.2 million in the
fourth quarter of 2010. The rise in cost was related to an increase
in staff and rental costs associated with the expansion of
international and elite curriculum programs as well as the further
development of interactive and personalized learning products for
online tutoring programs. There was also a portion related to fixed
asset depreciation and cafeteria expansion costs at the Anqing
private school.
Gross Profit and Gross Margin
Gross profit for the fourth quarter of 2011 was $10.6 million, compared to $9.0 million in the corresponding period of 2010.
Gross margin decreased slightly to 55.1 percent, compared to 56.0
percent for the corresponding period in 2010.
Gross margin for online degree programs remained stable at 62.3
percent. In the future, we expect gross margin for online degree
programs to decrease somewhat as the percentage of total net
revenue contributed by the Company's learning centers network
increases. The learning centers network's sales and service based
model results in a higher cost of sales, whereas the joint venture
model is more operationally driven.
Gross margin for online tutoring programs decreased to 55.7
percent, from 67.1 percent in fourth quarter of 2010, largely due
to increased staff costs associated with the expansion of our
interactive course offerings and the addition of more off-line
personalized tutoring services. Gross margin for private schools
increased to 24.8 percent, compared to 18.1 percent in the
corresponding period in 2010. The increase was primarily due to
strong enrollment at the Anqing School which is seeing economics of
scale.
Gross margin for the international curriculum and elite programs
was negative 20.3 percent for the fourth quarter of 2011. In the
fourth quarter, there were continued increases in staff costs and
rental costs associated with the expansion of new programs in this
division.
Operating Expenses
Total operating expenses were $7.8
million in the fourth quarter of 2011, a very slight
increase compared to $7.6 million in
the corresponding period in 2010. As a percentage of net revenue,
total operating expenses decreased to 40.6 percent, compared to
47.1 percent in the corresponding period in 2010. The slight
increase in total operating expense was the result of the
following:
- General and administrative expenses for the fourth quarter of
2011 were $3.8 million, a decrease of
7.9 percent from $4.2 million in the
corresponding period in 2010. As a percentage of net revenue,
general and administrative expenses decreased to 20.0 percent from
25.9 percent in the same period in 2010. A reduction in certain
staff costs as well as a one-time government subsidy received
resulted in the decrease.
- Selling and marketing expenses were $2.4
million in the fourth quarter of 2011, an increase of 28.2
percent compared to $1.9 million in
the corresponding period in 2010. As a percentage of net revenue,
selling and marketing expenses increased to 12.7 percent, up from
11.9 percent in the same period in 2010. The increase in selling
and marketing expenses was primarily attributable to the expansion
of selling and marketing staff and an increase in advertisements
placed for the 101 online tutoring programs as well as an increase
in marketing activities, such as conference attendance and brand
promotion activities across the brands.
- Research and development expenses for the fourth quarter of
2011 were $1.5 million, flat with the
corresponding period in 2010. As a percentage of net revenue, the
research and development expense was 7.9 percent in the fourth
quarter of 2011, decreasing from 9.3 percent in the same period of
2010.
- Share-based compensation for the fourth quarter of 2011, which
is allocated to the related cost and operating expenses line items,
remained stable at $0.3
million.
Income from Operations
Income from operations in the fourth quarter of 2011 was
$2.8 million, an increase of 94.8
percent compared to $1.4 million in
the corresponding period of 2010. Operating margin increased to
14.5 percent for the fourth quarter of 2011, compared to 8.9
percent in the corresponding period of 2010.
Adjusted income from operations, a non-GAAP measure defined as
income from operations excluding share-based compensation,
amortization of intangible assets and land use rights, was
$3.2 million for the fourth quarter
of 2011, an increase of 64.7 percent compared to $2.0 million in the corresponding period of
2010.
Adjusted operating margin, a non-GAAP measure defined as the
ratio of adjusted income from operations (non-GAAP) over net
revenue, for the fourth quarter of 2011 increased to 16.9 percent,
compared to 12.3 percent for the corresponding period of 2010.
Interest and Investment Income
Interest and investment income for the fourth quarter of 2011
increased 51.7 percent to $0.4
million, compared to $0.3
million for the corresponding quarter of 2010.
Income Tax Expense
In the fourth quarter of 2011, income tax expense was
$1.2 million and the effective income
tax rate was 37.4 percent. The Company had a higher tax rate in the
fourth quarter of 2011 due to the allowance provided for on
deferred income tax assets, resulting from cumulative historical
losses at certain subsidiaries. The fourth quarter 2011 tax rate
compares to an income tax credit of $1.0
million in the fourth quarter of 2010. The tax credit
enjoyed by the Company in the fourth quarter of 2010 was the result
of one of the Company's subsidiaries being granted "new and high
technology enterprises" status at the end of the fourth quarter of
2010, thus qualifying the Company for a 2010 preferential statutory
tax rate of 15 percent commencing in the fourth quarter of 2010. As
a result, deferred tax liabilities overbooked in the first three
quarters in 2010 were reversed in the fourth quarter of 2010.
Net Income Attributable to Non-controlling
Interests
Net income attributable to non-controlling interests remained
stable at $1.7 million in the fourth
quarter of 2011, compared to $1.6
million in the corresponding period in 2010.
Net Income Attributable to ChinaEdu
Shareholders
Net income attributable to ChinaEdu, which is net income,
excluding net income attributable to non-controlling interests, was
$0.4 million in the fourth quarter of
2011, representing a decrease of 65.8 percent from $1.1 million in the corresponding period of
2010.
Net income attributable to ChinaEdu per basic and diluted ADS
was $0.024 and $0.022, respectively, for the fourth quarter of
2011, as compared to $0.068 and
$0.062, respectively, for the
corresponding period in 2010.
Adjusted net income attributable to ChinaEdu (non-GAAP) was
$0.8 million in the fourth quarter of
2011 compared to $1.6 million in the
corresponding period of 2010. Adjusted net margin, a non-GAAP
measure defined as the ratio of adjusted net income attributable to
ChinaEdu (non-GAAP) over net revenue, was 4.2 percent in the fourth
quarter of 2011, compared to 10.0 percent in the corresponding
period of 2010.
Adjusted net income attributable to ChinaEdu per basic and
diluted ADS (non-GAAP) was $0.052 and
$0.049, respectively, for the fourth
quarter of 2011, compared to $0.100
and $0.092, respectively, in the
corresponding period of 2010.
Deferred Revenue
As of December 31, 2011, deferred
revenue was $21.8 million, consisting
of current deferred revenue in the amount of $19.9 million and non-current deferred revenue in
the amount of $1.9 million. In
general, Fall semester tuition is received during the fourth
quarter but is recognized both in the fourth quarter of the current
year and in the first quarter of the following year. Private school
revenue is received in September, but amortized over 6 or 12 months
while online tutoring program revenue can be received at program
enrollment and is mostly amortized within 12 months.
Cash and Cash Equivalents and Term Deposits
As of December 31, 2011, the
Company reported cash and cash equivalents and term deposits of
$59.1 million, which primarily
consisted of cash, demand deposits with original maturity terms of
three months or less, and term deposits with original maturity
terms of greater than three months but less than one year.
Amounts Due from Related Parties
Amounts due from related parties, which represents cash owed to
the Company by collaborative alliance partners, were $37.8 million as of December 31, 2011 compared to $39.2 million as of December 31, 2010.
Fiscal Year 2011 Results
Net Revenue
Total net revenue in 2011 was $69.3
million, an increase of 12.1 percent over $61.8 million in 2010.
Net revenue from online degree programs in 2011 was $55.2 million, a 12.0 percent increase from
$49.3 million in 2010. This increase
was primarily attributable to strong enrollment growth in online
degree programs in 2011, particularly through our learning centers
network. In aggregate, the number of revenue students enrolled in
online degree programs was approximately 356,000 in 2011, a 14.5
percent increase from approximately 311,000 revenue students
enrolled in online degree programs in 2010.
Net revenue from non-online degree programs in 2011 was
$14.1 million, compared to
$12.5 million in 2010. The 12.6
percent increase was primarily attributable to an increase in
student enrollment at the Anqing private school and an increase in
net revenue from 101 online tutoring programs in 2011.
Cost of Revenue
Total cost of revenue in 2011 was $29.5
million, an increase of 25.7 percent from $23.5 million in 2010.
Cost of revenue for online degree programs in 2011 was
$19.7 million, an increase of 21.9
percent compared to $16.2 million in
2010. The increase was primarily due to escalated costs related to
the expansion of the Company's learning centers network and an
increase in headcount throughout the year to support efforts to
enhance current programs.
Cost of revenue for non-online degree programs in 2011 was
$9.7 million, an increase of 34.0
percent compared to $7.3 million in
2010. The increase was primarily attributable to higher teaching
and recruiting costs related to the expansion of international and
elite curriculum programs to meet market demand for study-abroad
opportunities. The increase was also due to increased staffing
costs and depreciation charges at the Anqing School, as well as
additional headcount required to develop interactive and
personalized learning products for online tutoring programs.
Gross Profit
Gross profit for 2011 was $39.8
million, an increase of 3.8 percent compared with
$38.3 million in 2010.
Gross margin in 2011 was 57.4 percent, compared with gross
margin of 62.0 percent in 2010. The slight decrease was primarily
due to increase of staffing and rental costs related to new
business development and the expansion of the learning centers
business.
Gross margin for online degree programs was 64.2 percent in 2011
compared with gross margin for online degree programs of 67.1
percent in 2010.
Gross margin for non-online degree programs was 30.9 percent in
2011 compared with gross margin for non-online degree programs of
41.9 percent in 2010.
Operating Expenses
Total operating expenses in 2011 were $29.8 million, a 17.7 percent increase from
$25.3 million in 2010. The increase
was primarily attributable to the following:
- General and administrative expenses in 2011 were $14.9 million, an 11.7 percent increase from
$13.4 million in 2010. With tight
cost control measures enforced throughout 2011, general and
administrative expenses as a percentage of total net revenue were
21.6 percent, similar to 2010.
- Selling and marketing expenses in 2011 were $8.4 million, a 40.2 percent increase from
$6.0 million in 2010. The increase
was primarily attributable to an increase in advertising expenses
across our non-degree business lines as well as increased sales and
marketing headcount at certain subsidiaries.
- Research and development expenses in 2011 were $6.4 million, representing an 8.6 percent
increase from $5.9 million in 2010.
This increase was primarily attributable to increased headcount and
increased depreciation expenses associated with new research and
development projects for online degree programs as well as new
business initiatives for non-online degree programs.
- Share-based compensation in 2011, which was allocated to the
related cost of revenue and operating expense line items, was
$1.0 million, similar to 2010.
Income from Operations
Income from operations was $10.0
million in 2011, a decrease of 23.3 percent from
$13.0 million in 2010. Operating
margin was 14.4 percent in 2011, compared to 21.1 percent in
2010.
Adjusted income from operations (non-GAAP) in 2011 was
$11.8 million, a decrease of 20.5
percent compared to $14.8 million in
2010. Adjusted operating margin (non-GAAP) was 17.0 percent in
2011, compared to 24.0 percent in 2010.
Interest Income and Investment Income
Interest income and investment income increased 40.6 percent to
$1.5 million in 2011, compared to
$1.1 million in 2010.
Income Tax Expense
Income tax expense in 2011 was $2.7
million, compared with $2.1
million in 2010. The 2011 effective tax rate was 23.2
percent.
Net Income Attributable to Non-controlling
Interests
Net income attributable to non-controlling interests was
$6.3 million in 2011, an increase of
7.9 percent compared to $5.9 million
in 2010. The increase was primarily due to the non-controlling
interest impact related to the increase in net income from online
degree programs.
Net Income attributable to ChinaEdu
Shareholders
Net income attributable to ChinaEdu was $2.7 million in 2011, representing a decrease of
57.2 percent from $6.2 million in
2010. Net margin was 3.9 percent in 2011, compared to 10.1 percent
in 2010.
Adjusted net margin was 6.3 percent for in 2011, compared to
12.8 percent in 2010.
First Quarter 2012 Guidance
ChinaEdu management expects total net revenue in the first
quarter of 2012 to range from RMB110 million
to RMB115 million or $17.5 million to
$18.0 million, representing a 21 percent to 26 percent
increase compared to the corresponding period in 2011. This
forecast reflects ChinaEdu's current and preliminary view, which is
subject to change.
Conference Call
ChinaEdu's management will hold an earnings conference call at
8:00 a.m. U.S. Eastern Time on
March 8, 2012 (9:00 p.m. Beijing/Hong Kong Time on March 8, 2012).
Dial-in details for the earnings conference call are as
follows:
|
International:
|
+65 67239381
|
|
Hong Kong:
|
+852 24750994
|
|
United
States:
|
+1 (718)
354-1231
|
|
Toll-free China,
Mobile:
|
4006208038
|
|
Toll-free
China:
|
8008190121
|
|
Toll-free United
States:
|
+1 (866)
519-4004
|
|
Conference
ID:
|
53185468
|
A live and archived webcast of the conference call will be
available on the investor relations page of ChinaEdu's website at
http://ir.chinaedu.net and a replay of the conference call may be
accessed by phone until March 17,
2012.
Dial-in numbers for the replay are as follows:
|
Toll Free United
States:
|
+1 (866) 214
5335
|
|
International:
|
+1 718 354
1232
|
|
Conference
ID:
|
53185468
|
Non-GAAP Financial Measures
To supplement the unaudited condensed consolidated financial
information presented in accordance with Generally Accepted
Accounting Principles in the United
States of America ("GAAP"), the Company uses non-GAAP
measures of income from operations and net income attributable to
ChinaEdu, which are adjusted from results based on GAAP to exclude
certain non-cash items of share-based compensation and amortization
of intangible assets and land use rights. These 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 considers the non-GAAP information as important measures
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 support for international and elite curriculum
programs and online learning community for adult students.
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 19 long-term contracts that generally vary
from 10 to 50 years in length. ChinaEdu also performs
recruiting services for 21 universities through nationwide learning
centers network.
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
Annual Report on Form 20-F for the year ended
December 31, 2010, 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.
For investor and media inquiries, please contact:
Helen Plummer
Senior Investor Relations Coordinator
ChinaEdu Corporation
Phone: +86 13911672124
E-mail: helen@chinaedu.net
Jin Yu
Investor Relations Manager
ChinaEdu Corporation
Phone: +86 15711096022
E-mail: jinyu@chinaedu.net
|
ChinaEdu
Corporation
|
|
|
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
(in thousands,
unaudited)
|
December
31, 2010
|
December
31, 2011
|
December
31, 2011
|
|
|
RMB
|
RMB
|
US$
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and
cash equivalents
|
190,493
|
273,746
|
43,494
|
|
Term
deposits
|
120,500
|
98,163
|
15,597
|
|
Short-term
investments
|
32,469
|
34,648
|
5,505
|
|
Accounts
receivable
|
35,091
|
31,478
|
5,001
|
|
Inventories
|
358
|
-
|
-
|
|
Prepaid
expenses and other current assets
|
30,966
|
22,725
|
3,611
|
|
Amounts due
from related parties
|
246,925
|
238,016
|
37,817
|
|
Deferred
tax assets-current
|
5,003
|
5,697
|
905
|
|
Total current
assets
|
661,805
|
704,473
|
111,930
|
|
Deferred
tax assets-non-current
|
3,470
|
8,217
|
1,306
|
|
Rental
deposits
|
936
|
2,213
|
351
|
|
Land use
rights
|
27,265
|
26,657
|
4,235
|
|
Property
and equipment, net
|
227,507
|
239,210
|
38,007
|
|
Deposits
paid for acquisition of property and equipment
|
19,792
|
17,902
|
2,844
|
|
Acquired
intangible assets, net
|
65,849
|
63,638
|
10,111
|
|
Goodwill
|
43,255
|
43,255
|
6,873
|
|
Total
assets
|
1,049,879
|
1,105,565
|
175,657
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable (including accounts payable of the consolidated VIE without
recourse
to the Group of 10,277 and 1,975 as of December 31, 2010
and December 31, 2011)
|
11,410
|
2,239
|
356
|
|
Deferred
revenues-current (including deferred revenues of the consolidated
VIE without
recourse to the Group of 18,762
and 20,525 as of December 31, 2010 and December 31,
2011)
|
105,891
|
125,332
|
19,913
|
|
Accrued
expenses and other current liabilities (including accrued expenses
and other
current liabilities of the consolidated
VIE without recourse to the Group of 12,486 and
18,644 as of December 31, 2010 and
December 31, 2011)
|
83,486
|
91,980
|
14,614
|
|
Amounts due to related parties (including amounts due to related parties of
the consolidated
VIE without recourse to the Group of
2,201 and 1,953 as of December 31, 2010 and
December 31, 2011)
|
31,177
|
13,146
|
2,089
|
|
Income
taxes payable (including income taxes payable of the consolidated
VIE without
recourse to the Group of 8,432 and 8,893 as of December 31,
2010 and December 31,
2011)
|
44,612
|
51,448
|
8,174
|
|
Other taxes
payable (including other taxes payable of the consolidated VIE
without recourse
to the Group of 2,482 and 3,047 as of
December 31, 2010 and December 31, 2011)
|
20,508
|
21,970
|
3,491
|
|
Total current
liabilities
|
297,084
|
306,115
|
48,637
|
|
Deferred
revenues-non-current (including deferred revenues of the
consolidated VIE
without recourse to the Group of 71
and 33 as of December 31, 2010 and December 31,
2011)
|
9,804
|
12,059
|
1,916
|
|
Deferred
tax liabilities-non-current (including deferred tax liabilities of
the consolidated VIE
without recourse to the Group of
1,057 and 1,017 as of December 31, 2010 and December
31, 2011)
|
9,836
|
9,243
|
1,469
|
|
Unrecognized tax benefit (including unrecognized tax benefit of the
consolidated VIE
without recourse to the Group of
1,251 and 2,364 as of December 31, 2010 and December
31, 2011)
|
3,691
|
6,089
|
967
|
|
Total
liabilities
|
320,415
|
333,506
|
52,989
|
|
|
|
|
|
|
|
595,979
|
604,806
|
96,094
|
|
Non-controlling
interests
|
133,485
|
167,253
|
26,574
|
|
Total
equity
|
729,464
|
772,059
|
122,668
|
|
Total liabilities and
equity
|
1,049,879
|
1,105,565
|
175,657
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
(in thousands, except for percentage, share, and per share information)
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Revenue
*
|
|
102,023
|
|
123,127
|
|
19,562
|
|
402,335
|
|
453,116
|
|
71,994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Tax
|
|
1,046
|
|
2,569
|
|
408
|
|
13,493
|
|
17,257
|
|
2,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
80,742
|
|
96,760
|
|
15,374
|
|
310,005
|
|
347,107
|
|
55,150
|
|
Online tutoring
programs
|
|
6,004
|
|
6,057
|
|
962
|
|
23,669
|
|
25,755
|
|
4,092
|
|
Private primary and
secondary schools
|
|
11,472
|
|
14,088
|
|
2,238
|
|
41,054
|
|
49,653
|
|
7,889
|
|
International and elite curriculum programs
|
|
2,759
|
|
3,653
|
|
580
|
|
14,114
|
|
13,344
|
|
2,120
|
|
Total net
revenue
|
|
100,977
|
|
120,558
|
|
19,154
|
|
388,842
|
|
435,859
|
|
69,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
30,455
|
|
36,433
|
|
5,789
|
|
101,906
|
|
124,242
|
|
19,740
|
|
Online tutoring
programs
|
|
1,977
|
|
2,683
|
|
426
|
|
6,101
|
|
9,107
|
|
1,447
|
|
Private primary and
secondary schools
|
|
9,401
|
|
10,589
|
|
1,682
|
|
30,279
|
|
36,127
|
|
5,740
|
|
International and elite
curriculum programs
|
|
2,591
|
|
4,393
|
|
698
|
|
9,416
|
|
16,128
|
|
2,562
|
|
Total cost of
revenue
|
|
44,424
|
|
54,098
|
|
8,595
|
|
147,702
|
|
185,604
|
|
29,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
50,287
|
|
60,327
|
|
9,585
|
|
208,099
|
|
222,865
|
|
35,410
|
|
Online tutoring
programs
|
|
4,027
|
|
3,374
|
|
536
|
|
17,568
|
|
16,648
|
|
2,645
|
|
Private primary and
secondary schools
|
|
2,071
|
|
3,499
|
|
556
|
|
10,775
|
|
13,526
|
|
2,149
|
|
International and elite
curriculum programs
|
|
168
|
|
(740)
|
|
(118)
|
|
4,698
|
|
(2,784)
|
|
(442)
|
|
Total gross
profit
|
|
56,553
|
|
66,460
|
|
10,559
|
|
241,140
|
|
250,255
|
|
39,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
62.3%
|
|
62.3%
|
|
62.3%
|
|
67.1%
|
|
64.2%
|
|
64.2%
|
|
Online tutoring
programs
|
|
67.1%
|
|
55.7%
|
|
55.7%
|
|
74.2%
|
|
64.6%
|
|
64.6%
|
|
Private primary and
secondary schools
|
|
18.1%
|
|
24.8%
|
|
24.8%
|
|
26.2%
|
|
27.2%
|
|
27.2%
|
|
International and elite
curriculum programs
|
|
6.1%
|
|
(20.3%)
|
|
(20.3%)
|
|
33.3%
|
|
(20.9%)
|
|
(20.9%)
|
|
Gross margin
|
|
56.0%
|
|
55.1%
|
|
55.1%
|
|
62.0%
|
|
57.4%
|
|
57.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
26,185
|
|
24,121
|
|
3,832
|
|
84,110
|
|
93,950
|
|
14,927
|
|
Selling and
marketing
|
|
11,980
|
|
15,362
|
|
2,441
|
|
37,632
|
|
52,777
|
|
8,385
|
|
Research and
development
|
|
9,410
|
|
9,487
|
|
1,507
|
|
37,358
|
|
40,589
|
|
6,449
|
|
Total operating
expenses
|
|
47,575
|
|
48,970
|
|
7,780
|
|
159,100
|
|
187,316
|
|
29,761
|
|
Income from
operations
|
|
8,978
|
|
17,490
|
|
2,779
|
|
82,040
|
|
62,939
|
|
10,001
|
|
Operating
margin
|
|
8.9%
|
|
14.5%
|
|
14.5%
|
|
21.1%
|
|
14.4%
|
|
14.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
|
|
141
|
|
284
|
|
45
|
|
572
|
|
1,003
|
|
159
|
|
Interest
income
|
|
1,590
|
|
2,641
|
|
420
|
|
5,552
|
|
8,843
|
|
1,405
|
|
Interest
expense
|
|
(5)
|
|
-
|
|
-
|
|
(5)
|
|
-
|
|
-
|
|
Investment
income
|
|
260
|
|
166
|
|
26
|
|
1,331
|
|
832
|
|
132
|
|
Income before income
tax
|
|
10,964
|
|
20,581
|
|
3,270
|
|
89,490
|
|
73,617
|
|
11,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit(expense)
|
|
6,002
|
|
(7,691)
|
|
(1,222)
|
|
(13,333)
|
|
(17,044)
|
|
(2,708)
|
|
Net income
|
|
16,966
|
|
12,890
|
|
2,048
|
|
76,157
|
|
56,573
|
|
8,989
|
|
Net income attributable
to the non-controlling interests
|
|
(10,151)
|
|
(10,557)
|
|
(1,677)
|
|
(36,840)
|
|
(39,752)
|
|
(6,316)
|
|
Net income attributable
to ChinaEdu
|
|
6,815
|
|
2,333
|
|
371
|
|
39,317
|
|
16,821
|
|
2,673
|
|
Net margin
|
|
6.7%
|
|
1.9%
|
|
1.9%
|
|
10.1%
|
|
3.9%
|
|
3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ChinaEdu per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.43
|
|
0.15
|
|
0.024
|
|
2.46
|
|
1.06
|
|
0.169
|
|
Diluted
|
|
0.39
|
|
0.14
|
|
0.022
|
|
2.27
|
|
1.00
|
|
0.158
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,976,963
|
|
15,756,432
|
|
15,756,432
|
|
16,001,441
|
|
15,817,977
|
|
15,817,977
|
|
Diluted
|
|
17,267,688
|
|
16,569,830
|
|
16,569,830
|
|
17,336,743
|
|
16,879,636
|
|
16,879,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Gross revenue are
detailed as follows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Online degree
programs
|
|
81,462
|
|
98,978
|
|
15,726
|
|
322,433
|
|
362,888
|
|
57,657
|
|
Online tutoring
programs
|
|
6,163
|
|
6,177
|
|
981
|
|
23,873
|
|
26,381
|
|
4,192
|
|
Private primary and
secondary schools
|
|
11,479
|
|
14,106
|
|
2,241
|
|
41,095
|
|
49,726
|
|
7,901
|
|
International curriculum
programs
|
|
2,919
|
|
3,866
|
|
614
|
|
14,934
|
|
14,121
|
|
2,244
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited Condensed Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years Ended
|
|
(in thousands,
unaudited)
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
16,966
|
|
12,890
|
|
2,048
|
|
76,157
|
|
56,573
|
|
8,989
|
|
Adjustments to reconcile net income to net cash provided by
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
2,079
|
|
1,660
|
|
263
|
|
6,283
|
|
6,483
|
|
1,030
|
|
Depreciation and amortization of property and
equipment
|
|
6,504
|
|
6,637
|
|
1,055
|
|
20,971
|
|
23,900
|
|
3,797
|
|
Amortization of land use rights
|
|
152
|
|
152
|
|
24
|
|
609
|
|
608
|
|
97
|
|
Amortization of acquired intangible assets
|
|
1,171
|
|
1,078
|
|
171
|
|
4,432
|
|
4,171
|
|
663
|
|
Gain on consolidation of Hongcheng Xueyuan
|
|
(260)
|
|
-
|
|
-
|
|
(260)
|
|
-
|
|
-
|
|
Gain on sale of investment
|
|
-
|
|
(166)
|
|
(26)
|
|
(1,071)
|
|
(832)
|
|
(132)
|
|
Provision for amounts due from related parties and
account
receivables
|
|
540
|
|
-
|
|
-
|
|
540
|
|
-
|
|
-
|
|
Loss from disposal of property and equipment
|
|
82
|
|
81
|
|
13
|
|
82
|
|
234
|
|
37
|
|
Deferred income taxes
|
|
(5,036)
|
|
(2,894)
|
|
(460)
|
|
(4,600)
|
|
(6,034)
|
|
(959)
|
|
Changes in assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in restricted cash
|
|
365
|
|
-
|
|
-
|
|
365
|
|
-
|
|
-
|
|
Accounts receivable
|
|
(11,973)
|
|
(8,033)
|
|
(1,276)
|
|
(6,900)
|
|
3,613
|
|
574
|
|
Inventory
|
|
971
|
|
-
|
|
-
|
|
1,494
|
|
358
|
|
57
|
|
Prepaid expenses and other current assets
|
|
(9,950)
|
|
4,436
|
|
705
|
|
(4,930)
|
|
7,458
|
|
1,185
|
|
Amounts due from related parties
|
|
(42,571)
|
|
(8,708)
|
|
(1,384)
|
|
(68,791)
|
|
8,646
|
|
1,374
|
|
Rental deposits
|
|
126
|
|
409
|
|
65
|
|
(61)
|
|
(1,277)
|
|
(203)
|
|
Accounts payable
|
|
(864)
|
|
(8,449)
|
|
(1,342)
|
|
1,128
|
|
(2,013)
|
|
(320)
|
|
Deferred revenues
|
|
69,612
|
|
81,115
|
|
12,888
|
|
8,589
|
|
21,858
|
|
3,473
|
|
Accrued expenses and other current liabilities
|
|
5,789
|
|
(9,464)
|
|
(1,504)
|
|
14,628
|
|
8,700
|
|
1,382
|
|
Amounts due to related parties
|
|
(21,336)
|
|
(10,136)
|
|
(1,610)
|
|
4,009
|
|
(19,717)
|
|
(3,133)
|
|
Income tax payable
|
|
2,173
|
|
9,319
|
|
1,481
|
|
11,223
|
|
6,836
|
|
1,086
|
|
Other taxes payable
|
|
4,476
|
|
3,480
|
|
553
|
|
4,555
|
|
1,462
|
|
232
|
|
Unrecognized tax benefit
|
|
(4,583)
|
|
667
|
|
106
|
|
(4,036)
|
|
2,398
|
|
381
|
|
Net cash provided by
operating activities
|
|
14,433
|
|
74,074
|
|
11,770
|
|
64,416
|
|
123,425
|
|
19,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of business, net of cash acquired of RMB1,382
and RMB nil in 2010 and 2011
|
|
1,382
|
|
-
|
|
-
|
|
(6,078)
|
|
-
|
|
-
|
|
Purchase of property and equipment
|
|
(4,608)
|
|
(2,702)
|
|
(429)
|
|
(26,859)
|
|
(20,788)
|
|
(3,303)
|
|
Deposits paid for acquisition of property and
equipment
|
|
-
|
|
(3,873)
|
|
(615)
|
|
(19,792)
|
|
(18,863)
|
|
(2,997)
|
|
Purchase of term deposits
|
|
40,971
|
|
(11,000)
|
|
(1,748)
|
|
1,434
|
|
22,337
|
|
3,549
|
|
Purchase of short-term investments
|
|
(1,598)
|
|
(2,556)
|
|
(406)
|
|
(28,016)
|
|
(19,556)
|
|
(3,107)
|
|
Proceeds from disposal of property and equipment
|
|
4
|
|
20
|
|
3
|
|
112
|
|
275
|
|
44
|
|
Proceeds from the sale of investment
|
|
-
|
|
4,119
|
|
654
|
|
17,071
|
|
17,339
|
|
2,755
|
|
Purchase of exclusive partnership with
universities
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,960)
|
|
(311)
|
|
Acquisition of non-controlling interest of Yuancheng
Education
|
|
-
|
|
-
|
|
-
|
|
(998)
|
|
-
|
|
-
|
|
Net cash provided
by(used in) investing activities
|
|
36,151
|
|
(15,992)
|
|
(2,541)
|
|
(63,126)
|
|
(21,216)
|
|
(3,370)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred payment of purchase of property and
equipment
|
|
-
|
|
(1,479)
|
|
(235)
|
|
-
|
|
(1,479)
|
|
(235)
|
|
Cash dividends paid to non-controlling
shareholders
|
|
-
|
|
(49)
|
|
(8)
|
|
(5,632)
|
|
(13,510)
|
|
(2,147)
|
|
Capital contributions by non-controlling
shareholders
|
|
490
|
|
-
|
|
-
|
|
490
|
|
2,960
|
|
470
|
|
Proceeds from exercise of share options
|
|
3,315
|
|
20
|
|
3
|
|
6,098
|
|
598
|
|
95
|
|
Prepayment for shares repurchase
|
|
1,089
|
|
(38)
|
|
(6)
|
|
(735)
|
|
(168)
|
|
(27)
|
|
Repurchase and cancellation of ordinary shares
|
|
(13,142)
|
|
(688)
|
|
(109)
|
|
(13,468)
|
|
(7,437)
|
|
(1,182)
|
|
Repayment of loan from related party
|
|
-
|
|
(14,500)
|
|
(2,304)
|
|
-
|
|
(47,500)
|
|
(7,547)
|
|
Loan from related party
|
|
-
|
|
10,000
|
|
1,589
|
|
-
|
|
47,500
|
|
7,547
|
|
Short term loan
|
|
(5,725)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net cash used in
financing activities
|
|
(13,973)
|
|
(6,734)
|
|
(1,070)
|
|
(13,247)
|
|
(19,036)
|
|
(3,026)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(106)
|
|
(23)
|
|
(4)
|
|
(693)
|
|
80
|
|
14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
|
153,988
|
|
222,421
|
|
35,339
|
|
203,143
|
|
190,493
|
|
30,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
190,493
|
|
273,746
|
|
43,494
|
|
190,493
|
|
273,746
|
|
43,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
36,505
|
|
51,325
|
|
8,155
|
|
(12,650)
|
|
83,253
|
|
13,228
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited reconciliations from income from operations to adjusted income from operations (non-GAAP)
and adjusted operating margin (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
(in thousands,
unaudited)
|
|
December
31, 2010
|
|
|
December
31, 2011
|
|
December
31, 2011
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
|
|
RMB
|
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
100,977
|
|
|
120,558
|
|
19,154
|
|
388,842
|
|
435,859
|
|
69,251
|
|
Income from
operations
|
|
8,978
|
|
|
17,490
|
|
2,779
|
|
82,040
|
|
62,939
|
|
10,001
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
2,079
|
|
|
1,660
|
|
263
|
|
6,283
|
|
6,483
|
|
1,030
|
|
Amortization of intangible assets and land use rights
|
|
1,323
|
|
|
1,230
|
|
195
|
|
5,041
|
|
4,779
|
|
760
|
|
Adjusted income from
operations (non-GAAP)
|
|
12,380
|
|
|
20,380
|
|
3,237
|
|
93,364
|
|
74,201
|
|
11,791
|
|
Adjusted operating
margin (non-GAAP)
|
|
12.3%
|
|
|
16.9%
|
|
16.9%
|
|
24.0%
|
|
17.0%
|
|
17.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ChinaEdu
Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited
reconciliations from net income attributable to ChinaEdu to
adjusted net income attributable to ChinaEdu (non-GAAP), adjusted
net margin (non-GAAP) and adjusted net income per ADS
(non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
(in thousands,
unaudited)
|
|
December
31, 2010
|
|
|
December
31, 2011
|
|
December
31, 2011
|
|
December
31, 2010
|
|
December
31, 2011
|
|
December
31, 2011
|
|
|
|
RMB
|
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
100,977
|
|
|
120,558
|
|
19,154
|
|
388,842
|
|
435,859
|
|
69,251
|
|
Net income attributable
to ChinaEdu
|
|
6,815
|
|
|
2,333
|
|
371
|
|
39,317
|
|
16,821
|
|
2,673
|
|
Adjustment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation
|
|
2,079
|
|
|
1,660
|
|
263
|
|
6,283
|
|
6,483
|
|
1,030
|
|
Share-based compensation attributable to the
non-controlling interest
|
|
(140)
|
|
|
(110)
|
|
(17)
|
|
(913)
|
|
(486)
|
|
(77)
|
|
Amortization of intangible assets and land use rights
|
|
1,323
|
|
|
1,230
|
|
195
|
|
5,041
|
|
4,779
|
|
760
|
|
Adjusted net income
attributable to ChinaEdu (non-GAAP)
|
|
10,077
|
|
|
5,113
|
|
812
|
|
49,728
|
|
27,597
|
|
4,386
|
|
Adjusted net margin
(non-GAAP)
|
|
10.0%
|
|
|
4.2%
|
|
4.2%
|
|
12.8%
|
|
6.3%
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
attributable to ChinaEdu per ADS (non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
0.63
|
|
|
0.32
|
|
0.052
|
|
3.11
|
|
1.74
|
|
0.277
|
|
Diluted
|
|
0.58
|
|
|
0.31
|
|
0.049
|
|
2.87
|
|
1.63
|
|
0.260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
aggregate number of ADSs outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
15,976,963
|
|
|
15,756,432
|
|
15,756,432
|
|
16,001,441
|
|
15,817,977
|
|
15,817,977
|
|
Diluted
|
|
17,267,688
|
|
|
16,569,830
|
|
16,569,830
|
|
17,336,743
|
|
16,879,636
|
|
16,879,636
|
[1] The reporting currency of the Company is RMB, but for the
convenience of the reader, the amounts for the three months and the
years ended on December 31, 2011and
2010 are presented in U.S. dollars. Unless otherwise stated, all
translations from RMB to U.S. dollars were made at the rate of
RMB6.2939 to $1.00, the noon buying rate in effect on
December 31, 2011 in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or U.S. dollar amounts referred
could be converted into U.S. dollars or RMB, as the case may
be, at any particular rate or at all. 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.
[2] "Adjusted net income attributable to ChinaEdu" is a non-GAAP
measure defined as net income attributable to ChinaEdu excluding
share-based compensation net of non-controlling interests' portion,
and amortization of intangible assets and land use rights.
[3] "ADS" is American Depositary Share. Each ADS represents
three ordinary shares.
[4] "Adjusted net income attributable to ChinaEdu per diluted
ADS" is a non-GAAP measure which is computed using adjusted net
income attributable to ChinaEdu over number of ADSs used in net
income attributable to ChinaEdu per diluted ADS calculation.
[5] "Revenue students" refers to students of university online
degree programs who have paid tuitions. The numbers for the three
months ended December 31, 2011 and
2010 are revenue students in fall 2011 and fall 2010, respectively.
The numbers for the years ended December 31,
2011 and 2010 are total revenue students in spring 2011 and
fall 2010, respectively.
[6] Proprietary centers refer to self-owned learning centers
operated either under the Company's own brand name or the brand
name of a university pursuant to a licensing arrangement with that
university.
[7] Contracted centers refer to agreement with third party
learning centers pursuant to which the Company only provides
assistance applying for approval from provincial level education
authorities as well as securing additional university online degree
programs. In return, the Company receives a percentage of the
tuition earned by these third party learning centers.
SOURCE ChinaEdu Corporation