BEIJING, April 14, 2022 /PRNewswire/ -- China Liberal
Education Holdings Limited (Nasdaq: CLEU) ("China Liberal," the
"Company," or "we"), a China-based company that provides smart
campus solutions and other educational services, today announced
its financial results for the fiscal year ended December 31, 2021.
Ms. Ngai Ngai Lam, Chairperson and CEO of China Liberal,
commented, "In fiscal year 2021, the COVID-19 pandemic and related
travel restrictions negatively impacted our operations and business
expansion. Particularly, many Chinese universities and colleges
held off on their 'smart campus' project plans due to the
uncertainties associated with the COVID-19 pandemic. As a result,
our revenue decreased by 22.2% year-over-year to $3.91 million from $5.02
million last fiscal year. We strive to drive our business
forward despite these short-term challenges and remain optimistic
on our business outlook for 2022 and beyond. We have taken actions
to strengthen our market position and keep our financials resilient
by acquiring Wanwang Investment Limited, which we believe will
allow us to enhance our services and products and improve the
quality of our programs."
Ms. Ngai Ngai Lam continued, "We keep optimizing our growth
strategies as market dynamics change and continue monitoring our
customers' preferences while focusing investments on our core
growth initiatives with the clearest path to profitability. Growing
demand for school-enterprise integrated education solutions
continues to accelerate the growth of our integrated enterprises
and vocational education (tailored job readiness training
services). In addition, the acquisition of Wanwang Investment
Limited allows us to become an operator of an independent
three-year college and a four-year college in China with a total student enrollment of over
4,200, facilitating our strategic transformation and laying a solid
new business foundation. I am proud of the team for what we have
accomplished together and I am looking forward to building on our
momentum."
Fiscal Year 2021 Financial Highlights
|
|
For the Year Ended
December 31,
|
($ millions,
except per share data)
|
|
2021
|
|
2020
|
|
%Change
|
Revenue
|
|
3.91
|
|
5.02
|
|
-22.2%
|
Gross
profit
|
|
2.76
|
|
2.87
|
|
-3.7%
|
Gross
margin
|
|
70.6%
|
|
57.1%
|
|
13.5%
|
Income(loss) from
operations
|
|
-1.17
|
|
1.44
|
|
NM
|
Net
income(loss)
|
|
-1.25
|
|
1.21
|
|
NM
|
Basic and diluted
earnings(loss) per share
|
|
-0.12
|
|
0.21
|
|
NM
|
Note: NM refers to
"Not Meaningful"
|
- Revenue decreased by 22.2% year-over-year to $3.91 million for fiscal year 2021 from
$5.02 million for fiscal year
2020.
- Gross profit decreased by 3.7% year-over-year to $2.76 million for fiscal year 2021 from
$2.87 million for fiscal year
2020.
- Gross margin increased to 70.6% for fiscal year 2021 from 57.1%
for fiscal year 2020.
- Loss from operations was $1.17
million for fiscal year 2021, compared to income from
operations of $1.44 million for
fiscal year 2020.
- Net loss was $1.25 million for
fiscal year 2021, compared to net income of $1.21 million for fiscal year 2020.
- Basic and diluted loss per share were $0.12 for fiscal year 2021, compared to basic and
diluted earnings per share of $0.21
for fiscal year 2020.
Fiscal Year 2021 Financial Results
Revenue
Revenue decreased by 22.2% year-over-year to $3.91 million for fiscal year 2021 from
$5.02 million for fiscal year 2020.
The decrease in revenue was mainly attributable to decreased
revenue from our technological consulting services for smart campus
solutions in fiscal year 2021 as compared to fiscal year 2020,
which was mainly caused by a decrease in the average contractual
value of smart campus related projects by 70.5% as high value
contracts with Fuzhou Melbourne Polytechnic ("FMP") were
mainly completed in 2020.
|
|
For the Year Ended
December 31,
|
($
millions)
|
|
2021
|
|
2020
|
Revenue
|
|
Revenue
|
Cost of
Revenue
|
Gross
Margin
(Loss)
|
|
Revenue
|
Cost of
Revenue
|
Gross
Margin
|
Sino-foreign jointly
managed academic
programs
|
|
2.68
|
0.36
|
86.4%
|
|
2.77
|
0.59
|
78.6%
|
Technological
consulting services for
smart campus solutions
|
|
1.06
|
0.62
|
41.9%
|
|
1.99
|
1.40
|
29.7%
|
Overseas study
consulting services
|
|
0.04
|
0.05
|
-43.0%
|
|
0.13
|
0.09
|
33.8%
|
Tailored job
readiness training services
|
|
0.14
|
0.12
|
15.0%
|
|
0.08
|
0.06
|
15.0%
|
Textbook and course
material sales
|
|
-
|
-
|
-
|
|
0.05
|
0.01
|
80.9%
|
Total
|
|
3.91
|
1.15
|
70.6%
|
|
5.02
|
2.15
|
57.1%
|
Revenue from Sino-foreign jointly managed academic programs
decreased by $0.09 million, or
3.5%, to $2.68 million for
fiscal year 2021, from $2.77 million for fiscal year 2020. This
decrease was primarily attributed to a decrease in the number of
students by 243, or 9.8%, from 2,731 students for the year ended
December 31, 2020, to 2,488 students
for the year ended December 31, 2021,
which resulted in a decrease of $254,042 in revenue. The decrease was partially
offset by an increase in average tuition fees collected from
$1,015 per student in 2020 to
$1,076 per student in 2021, which
resulted in an increase of $157,510
in revenue. The increase in average tuition fee was mainly caused
by an appreciation of Renminbi ("RMB") against U.S. dollars while
the average tuition fee per student in RMB decreased from
RMB6,993 ($1,015) in 2020 to RMB6,931 ($1,076)
in 2021.
Revenue from providing smart campus related technological
consulting services and technical support services for other
entities decreased by $0.93 million,
or 46.9%, to $1.06 million for fiscal
year 2021, from $1.99 million for
fiscal year 2020. The decrease in revenue was mainly attributable
to a decrease in the average project size from $143,000 per project in 2020 to $58,859 per project in 2021 as compared to 2020.
In 2020, we executed three relatively large technological
consulting service projects, including the hardware and software
installation and digital classrooms for FMP's experiment-based
simulation center for its hotel management major with contract
price of RMB5 million ($0.7 million), the digital classrooms for Beijing
Institute of Graphic Communications with contract price of
approximately RMB1.3 million
($0.2 million) and technical support
services provided to a third party enterprise, Wuhan Wangjie
Hengtong Information Technology Co., Ltd., with contract price of
RMB4.2 million ($612,239). However, in 2021, the 18 projects we
worked on were of smaller size and scope and accordingly, the
service fees we charged to customers were also smaller. The overall
decrease in our revenue from technological consulting services for
smart campus solutions reflected the above combined reasons.
Revenue from overseas study consulting services decreased
by $0.09 million, or 75.1%, to
$0.04 million for fiscal year
2021, from $0.13 million for
fiscal year 2020. During the years ended December 31, 2021 and 2020, under our service
contracts with Beijing Foreign Studies University, we assisted 27
students and 11 students for Russian language training, and 27
students and 22 students for German language training,
respectively. We recognized $36,174
in revenue when our performance obligations under the service
contracts were satisfied during the fiscal year 2021. The decrease
in revenue from overseas study consulting services was mainly
attributed to the cancellation of visa applications to Russia and Germany by the students, which is mainly due
to the international travel restrictions caused by the COVID-19
pandemic.
Revenue from tailored job readiness training services increased
by $0.06 million, or 80.3%, to
$0.14 million for fiscal year 2021,
from $0.08 million for fiscal year
2020. The increase was mainly attributable to an increase in the
number of students who received tailored job readiness training
services from 147 in 2020 to 443 in 2021.
Revenue from textbooks and course material sales decreased by
$0.05 million, or 100%, to nil for
fiscal year 2021, from $0.05 million
for fiscal year 2020. The decrease was mainly attributed to a delay
in our publisher's payment cycle due to small publication volume of
our textbooks and course materials.
Cost of Revenue
Cost of revenue decreased by $1.01
million, or 46.7%, to $1.15
million for fiscal year 2021, from $2.16 million for fiscal year 2020, primarily due
to the reduced average size and scope of the 18 technological
consulting service projects we worked on in 2021 compared to
projects in 2020, and accordingly costs associated with hardware
and components installation in technology consulting services for
smart campus related projects decreased in 2021. In addition, our
cost associated with Sino-foreign jointly managed academic programs
decreased by $0.2 million, or 38.6%,
in 2021 as compared to 2020, which was mainly attributable to a
decrease in salary, welfare and insurance costs of foreigner
teachers in Sino-foreign jointly managed academic programs. Due to
travel bans or restrictions caused by the COVID-19 pandemic, some
foreign teachers were unable to enter China and we engaged more Chinese teachers to
provide teaching services to students in 2021.
Gross Profit
Gross profit decreased by $0.11
million, or 3.7%, to $2.76
million for fiscal year 2021, from $2.87 million for fiscal year 2020, while gross
profit margin increased by 13.5%, to 70.6% for fiscal year 2021
from 57.1% for fiscal year 2020. The decrease in gross profit was
primarily due to a decrease in gross profit contribution from smart
campus related technological consulting services, which mainly
resulted from the decrease in average project size and average
gross profit per project in fiscal year 2021 compared to fiscal
year 2020, as we executed more projects with software customization
rather than hardware installation in fiscal year 2021. Also, gross
profit contribution from overseas study consulting services
decreased by 135.6% in fiscal year 2021 compared to fiscal year
2020 due to higher student recruitment costs in 2021. Additionally,
gross profit contribution from textbook and course material sales
decreased by 100% due to the decrease in publication volume.
Operating Expenses
Selling expenses decreased by $76,897, or 166.5%, to $152,759 for fiscal year 2021, from $229,656 for fiscal year 2020. The decrease in
selling expenses was primarily attributable to a decrease in
depreciation of $18,236 and a
decrease in rental expenses by $16,018 when we relocated to a smaller office
space due to streamlining of operations, a decrease in salary and
employee welfare benefit expenses paid to sales and marketing
personnel by $14,893, resulting from
cutting down our sales and marketing force, and a decrease in
office and other miscellaneous expenses.
General and administrative expenses increased by $2.58 million, or 214.9%, to $3.78 million for fiscal year 2021, from
$1.20 million for fiscal year 2020,
primarily due to an increase in share-based compensation to
employees of $2.3 million, an
increase in professional service fees of $72,229, an increase in audit fee of $67,300, an increase in investor relation
expenses of $61,376, and an increase
in director and officer insurance expenses of $34,127.
Interest Income
Interest income decreased by $7,062, or 7.0%, to $94,195 for fiscal year 2021, from $101,257 for fiscal year 2020. In connection with
the technological consulting services for smart campus projects, we
recognized financing component resulted from a timing difference
between when control was transferred and when we collected cash
consideration from the customer. For the years ended December 31, 2021 and 2020, we recognized
$87,589 and $94,271 in interest income in connection with the
aforementioned financing component, respectively. In addition, we
reported interest income of $6,606
and $6,986 from bank deposit balance
in the years ended December 31, 2021
and 2020, respectively. These factors led to decreased interest
income in fiscal year 2021, as compared to fiscal year 2020.
Other Income (Expense), Net
Other income was $126,648 for
fiscal year 2021, as compared to other expense of $26,035 for fiscal year 2020. The increase in
other income was primarily due to provision of other training
services in fiscal year 2021.
Provision for Income Taxes
Provision for income taxes was $300,034 for fiscal year 2021, decreased from
$303,246 for fiscal year 2020 due to
lower taxable income.
Net Income (Loss)
Net loss was $1.25 million for
fiscal year 2021, compared to net income of $1.21 million for fiscal year 2020. Basic and
diluted loss per share were $0.12 for
fiscal year 2021, compared to basic and diluted earnings per share
of $0.21 for fiscal year 2020.
Financial Condition
As of December 31, 2021, the
Company had cash of $32.68 million,
compared to $5.01 million as of
December 31, 2020.
Net cash used in operating activities was $1.41 million for fiscal year 2021, compared to
net cash provided by operating activities of $0.64 million for fiscal year 2020.
Net cash used in investing activities was $7,543 for fiscal year 2021, compared to
$1,396,125 for fiscal year 2020.
Net cash provided by financing activities was $29.06 million for fiscal year 2021, compared to
$3.97 million for fiscal year
2020.
Impact of the COVID-19 on Performance and Financial
Indicators
Our results of operations and financial conditions in 2021 were
affected by the COVID-19 pandemic and may continue to be affected
by COVID-19 pandemic in 2022 and potentially beyond. COVID-19 has
impact on China's study abroad
consulting and training services industry and the business
operations of our Company. The extent to which COVID-19 impacts our
results of operations in the future will depend on the future
developments of the pandemic, including new information concerning
the global severity of and actions taken to contain the pandemic,
which are highly uncertain and unpredictable. In addition, our
results of operations could be adversely affected to the extent
that the pandemic harms the Chinese and global economy in general.
We face risks related to natural disasters, extreme weather
conditions, health epidemics including the COVID-19, and other
catastrophic incidents, which could significantly disrupt our
operations.
The pandemic and related travel restrictions have affected and
may continue to adversely affect our business and results of
operations, including the demand for our services and the ability
of partner schools to pay back accounts receivable on a timely
basis. We will pay close attention to the future development of
COVID-19 pandemic and perform further assessment of its impact and
take relevant measures to minimize the impact. Uncertainties
associated with COVID-19 pandemic may cause the Company's revenue
and cash flows to underperform in the next 12 months.
About China Liberal Education Holdings Limited
China Liberal, headquartered in Beijing, is an educational
service provider in China. It provides a wide range of
services, including those under sino-foreign jointly managed
academic programs; overseas study consulting services;
technological consulting services for Chinese universities to
improve their campus information and data management system and to
optimize their teaching, operating and management environment,
creating a "smart campus"; and tailored job readiness training to
graduating students. For more information, please visit the
Company's website at ir.chinaliberal.com.
Forward-Looking Statements
This document contains forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on the Company's expectations and
projections about future events, which the Company derives from the
information currently available to the Company. Such
forward-looking statements relate to future events or our future
performance, including: our financial performance and projections;
our growth in revenue and earnings; and our business prospects and
opportunities. You can identify forward-looking statements by those
that are not historical in nature, particularly those that use
terminology such as "may," "should," "expects," "anticipates,"
"contemplates," "estimates," "believes," "plans," "projected,"
"predicts," "potential," or "hopes" or the negative of these or
similar terms. In evaluating these forward-looking statements, you
should consider various factors, including: our ability to change
the direction of the Company; our ability to keep pace with new
technology and changing market needs; and the competitive
environment of our business. These and other factors may cause our
actual results to differ materially from any forward-looking
statement. Forward-looking statements are only predictions. The
forward-looking events discussed in this press release and other
statements made from time to time by us or our representatives, may
not occur, and actual events and results may differ materially and
are subject to risks, uncertainties and assumptions about us. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results and encourages investors to
review risk factors that may affect its future results in the
Company's registration statement and in its other filings with the
U.S. Securities and Exchange Commission.
Investor Relations Contact
China Liberal Education Holdings Limited
Email: ir@chinaliberal.com
Ascent Investor Relations LLC
Ms. Tina Xiao
Email: tina.xiao@ascent-ir.com
Tel: +1 917 609 0333
CHINA LIBERAL
EDUCATION HOLDINGS LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
As of
December 31,
|
|
|
|
2021
|
|
|
2020
|
|
ASSETS
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
32,678,421
|
|
|
$
|
5,007,449
|
|
Account
receivables
|
|
|
2,462,550
|
|
|
|
915,618
|
|
Contract
assets,
|
|
|
2,014,146
|
|
|
|
4,448,946
|
|
Advance to
suppliers
|
|
|
4,525,794
|
|
|
|
94,648
|
|
Prepayment to acquire
a subsidiary
|
|
|
1,492,772
|
|
|
|
-
|
|
Due from a related
party
|
|
|
-
|
|
|
|
1,439,080
|
|
Inventories
|
|
|
201,091
|
|
|
|
196,326
|
|
Prepaid expenses and
other current assets
|
|
|
175,956
|
|
|
|
223,387
|
|
TOTAL CURRENT
ASSETS
|
|
$
|
43,550,730
|
|
|
$
|
12,325,454
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Plant and
equipment
|
|
|
35,384
|
|
|
|
49,148
|
|
Right-of-use
asset
|
|
|
47,617
|
|
|
|
136,695
|
|
Contract
assets
|
|
|
-
|
|
|
|
262,617
|
|
TOTAL NON-CURRENT
ASSETS
|
|
$
|
83,001
|
|
|
$
|
448,460
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
43,633,731
|
|
|
$
|
12,773,914
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Account
payables
|
|
$
|
169,137
|
|
|
$
|
125,223
|
|
Contract
liabilities
|
|
|
291,833
|
|
|
|
154,927
|
|
Taxes
payable
|
|
|
740,966
|
|
|
|
633,651
|
|
Due to related
parties
|
|
|
23,557
|
|
|
|
-
|
|
Lease
liability
|
|
|
47,617
|
|
|
|
90,253
|
|
Accrued expenses and
other liabilities
|
|
|
402,233
|
|
|
|
105,829
|
|
TOTAL CURRENT
LIABILITIES
|
|
$
|
1,675,343
|
|
|
$
|
1,109,883
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Lease
liability
|
|
|
-
|
|
|
|
23,102
|
|
TOTAL
LIABILITIES
|
|
$
|
1,675,343
|
|
|
$
|
1,132,985
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Ordinary shares,
$0.001 par value, 50,000,000 shares authorized, 13,848,333 and
6,333,333 shares issued and outstanding as of December 31, 2021 and
December 31,
2020, respectively
|
|
$
|
13,848
|
|
|
$
|
6,333
|
|
Additional paid-in
capital
|
|
|
40,686,311
|
|
|
|
9,358,487
|
|
Statutory
reserve
|
|
|
719,804
|
|
|
|
551,146
|
|
Retained
earnings
|
|
|
147,278
|
|
|
|
1,565,817
|
|
Accumulated other
comprehensive income
|
|
|
391,147
|
|
|
|
159,146
|
|
Total
shareholders' equity
|
|
$
|
41,958,388
|
|
|
$
|
11,640,929
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
|
43,633,731
|
|
|
$
|
12,773,914
|
|
CHINA LIBERAL
EDUCATION HOLDINGS LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
|
For the years
ended December 31
|
|
|
|
2021
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
3,909,546
|
|
|
$
|
5,023,099
|
|
|
$
|
5,255,810
|
|
COST OF
REVENUE
|
|
|
(1,149,148)
|
|
|
|
(2,157,033)
|
|
|
|
(3,360,694)
|
|
GROSS
PROFIT
|
|
|
2,760,398
|
|
|
|
2,866,066
|
|
|
|
1,895,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(152,759)
|
|
|
|
(229,656)
|
|
|
|
(593,215)
|
|
General and
administrative expenses
|
|
|
(3,778,329)
|
|
|
|
(1,199,690)
|
|
|
|
(783,241)
|
|
Total operating
expenses
|
|
|
(3,931,088)
|
|
|
|
(1,429,346)
|
|
|
|
(1,376,456)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME FROM
OPERATIONS
|
|
|
(1,170,690)
|
|
|
|
1,436,720
|
|
|
|
518,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
94,195
|
|
|
|
101,257
|
|
|
|
6,120
|
|
Other income
(expenses), net
|
|
|
126,648
|
|
|
|
(26,035)
|
|
|
|
69,162
|
|
Total other
income, net
|
|
|
220,843
|
|
|
|
75,222
|
|
|
|
75,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME
BEFORE INCOME TAXES
|
|
|
(949,847)
|
|
|
|
1,511,942
|
|
|
|
593,942
|
|
INCOME TAX
EXPENSE
|
|
|
(300,034)
|
|
|
|
(303,246)
|
|
|
|
(156,038)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
INCOME
|
|
$
|
(1,249,881)
|
|
|
$
|
1,208,696
|
|
|
$
|
437,904
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
(LOSS) INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Total currency
translation differences arising from consolidation
|
|
|
232,001
|
|
|
|
471,554
|
|
|
|
(78,171)
|
|
TOTAL
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(1,017,880)
|
|
|
$
|
1,680,250
|
|
|
$
|
359,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
|
(0.12)
|
|
|
$
|
0.21
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
10,368,563
|
|
|
|
5,852,459
|
|
|
|
5,000,000
|
|
CHINA LIBERAL
EDUCATION HOLDINGS LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
For the years
ended December 31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(1,249,881)
|
|
|
$
|
1,208,696
|
|
|
$
|
437,904
|
|
Adjustments to
reconcile net (loss) income to net cash (used in)
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
18,652
|
|
|
|
15,891
|
|
|
|
40,038
|
|
Non-cash lease
expenses
|
|
|
91,386
|
|
|
|
41,524
|
|
|
|
2,533
|
|
Loss on disposal
of property and equipment
|
|
|
607
|
|
|
|
37,468
|
|
|
|
-
|
|
Share-based
compensation
|
|
|
2,288,251
|
|
|
|
-
|
|
|
|
-
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Account
receivables
|
|
|
(1,504,828)
|
|
|
|
(343,165)
|
|
|
|
306,781
|
|
Contract
assets
|
|
|
2,781,603
|
|
|
|
(719,615)
|
|
|
|
(176,968)
|
|
Advance to
suppliers
|
|
|
(4,355,926)
|
|
|
|
756,846
|
|
|
|
(824,141)
|
|
Deferred initial
public offering costs
|
|
|
-
|
|
|
|
-
|
|
|
|
(650,092)
|
|
Due from a
related party
|
|
|
-
|
|
|
|
-
|
|
|
|
72,371
|
|
Inventories
|
|
|
199
|
|
|
|
(185,985)
|
|
|
|
-
|
|
Prepaid expenses
and other current assets
|
|
|
33,653
|
|
|
|
128,658
|
|
|
|
(57,406)
|
|
Account
payables
|
|
|
40,239
|
|
|
|
66,961
|
|
|
|
(69,500)
|
|
Contract
liabilities
|
|
|
462,253
|
|
|
|
(421,834)
|
|
|
|
417,987
|
|
Taxes
payable
|
|
|
90,150
|
|
|
|
191,373
|
|
|
|
164,879
|
|
Lease
liability
|
|
|
(67,754)
|
|
|
|
(60,907)
|
|
|
|
(5,252)
|
|
Accrued expenses
and other liabilities
|
|
|
(40,842)
|
|
|
|
(80,097)
|
|
|
|
2,434
|
|
Net cash (used in)
provided by operating activities
|
|
|
(1,412,238)
|
|
|
|
635,814
|
|
|
|
(338,432)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of
plant and equipment
|
|
|
(4,439)
|
|
|
|
(21,230)
|
|
|
|
(17,738)
|
|
Acquisition of
8.8228% non-controlling interest in China Liberal
Beijing
|
|
|
-
|
|
|
|
-
|
|
|
|
(453,669)
|
|
Advance to a
related party
|
|
|
-
|
|
|
|
(1,374,895)
|
|
|
|
-
|
|
Prepayment to
acquire a subsidiary
|
|
|
(1,474,217)
|
|
|
|
-
|
|
|
|
-
|
|
Repayment of
advance to a related party
|
|
|
1,471,113
|
|
|
|
-
|
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(7,543)
|
|
|
|
(1,396,125)
|
|
|
|
(471,407)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
related party borrowings
|
|
|
9,415
|
|
|
|
-
|
|
|
|
439,193
|
|
Repayment of due
to a related party
|
|
|
-
|
|
|
|
(1,439,799)
|
|
|
|
-
|
|
Net proceeds from
issuance of ordinary shares
|
|
|
29,047,088
|
|
|
|
5,405,451
|
|
|
|
-
|
|
Net cash provided
by financing activities
|
|
|
29,056,503
|
|
|
|
3,965,652
|
|
|
|
439,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of changes
of foreign exchange rates on cash
|
|
|
34,250
|
|
|
|
99,829
|
|
|
|
(4,241)
|
|
Net increase
(decrease) in cash
|
|
|
27,670,972
|
|
|
|
3,305,170
|
|
|
|
(374,887)
|
|
Cash, beginning of
year
|
|
|
5,007,449
|
|
|
|
1,702,279
|
|
|
|
2,077,166
|
|
Cash, end of
year
|
|
$
|
32,678,421
|
|
|
$
|
5,007,449
|
|
|
$
|
1,702,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
40,555
|
|
|
$
|
2,697
|
|
|
|
-
|
|
Cash paid for
income tax
|
|
|
-
|
|
|
$
|
20,775
|
|
|
$
|
18,657
|
|
Supplemental
disclosure of non-cash investing and financing
activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Transfer of
non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
$
|
87,238
|
|
Right-of-use
assets obtained in exchange for operating lease
obligations
|
|
|
-
|
|
|
$
|
180,528
|
|
|
$
|
21,062
|
|
View original
content:https://www.prnewswire.com/news-releases/china-liberal-education-holdings-limited-reports-financial-results-for-fiscal-year-2021-301525701.html
SOURCE China Liberal Education Holdings Limited