FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
REPORT OF
FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the month of August 2011
Commission File Number: 001-34884
Global Education & Technology Group Limited
9F Tower D, Beijing New Logo
A18 Zhongguancun South Street, Haidian District
Beijing 100081
Peoples Republic of China
(Address of principal executive offices)
Indicate by check mark whether
the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
x
Form 40-F
¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1):
Indicate by check mark if the
registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.
Yes
¨
No
x
If Yes is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b):
82-
N/A
Global Education & Technology Group Limited
Form 6-K
TABLE OF CONTENTS
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
|
|
|
Global Education & Technology Group Limited
|
|
|
By:
|
|
/s/ Yongqi Zhang
|
Name:
|
|
Yongqi Zhang
|
Title:
|
|
Chief Executive Officer
|
Date: August 30, 2011
3
Exhibit 99.1
Global Education Announces Second Quarter 2011 Financial Results
2Q11
Net Revenues Increased 25.6% Year-Over-Year
2Q11 Net Income Increased 35.4% Year-Over-Year
BEIJING, August 29, 2011 Global Education & Technology Group Ltd. (NASDAQ: GEDU) (Global Education or the
Company), the largest test preparation provider for the International English Language Testing System (IELTS) and a leading provider of educational courses and related services in China, today announced unaudited financial
results for the second quarter of 2011.
Second Quarter 2011 Financial Highlights
|
|
|
Total net revenues increased 25.6% year-over-year to RMB88.9 million ($13.8 million
1
) from RMB70.8 million in the second quarter of 2010.
|
|
|
|
Net income, including share-based compensation and fair value change in contingent consideration payable attributable to Global Education, increased
35.4% to RMB11.1 million ($1.7 million), from RMB8.2 million in the second quarter of 2010.
|
|
|
|
Non-GAAP operating income, excluding share-based compensation of RMB1.8 million ($0.3 million) versus RMB1.1 million for the second quarter 2010,
decreased 74.1% year-over-year to RMB2.8 million ($0.4 million) from RMB10.8 million in the second quarter of 2010. GAAP operating income (including share-based compensation) decreased 89.7% year-over-year to RMB1.0 million ($0.2 million) from
RMB9.7 million in the second quarter of 2010. In the quarter, we continue to expand our learning center network and marketing tied to our new, high potential business lines of Kids Science and after-school tutoring by adding 6 new learning centers.
As of June 30, 2011, we had 36 learning centers in 9 cities covering the kids area.
|
|
|
|
Non-GAAP net income, excluding share-based compensation and fair value change in contingent consideration payable attributable to Global Education,
decreased 17.4% year-over-year to RMB10.9 million ($1.7 million) from RMB13.2 million in the second quarter of 2010.
|
|
|
|
Total course enrollments increased 7.3% year-over-year to 263,043, compared to 245,164 in the second quarter of 2010.
|
|
|
|
Total number of learning centers increased to 414, covering 130 cities as of June 30, 2011, up from 379 as of March 31, 2011.
|
|
|
|
Total number of directly-owned-and-operated learning centers increased by 10 to 105 as of June 30, 2011, from 95 as of March 31, 2011. Of
these 105 directly-owned-and-operated learning centers, 69 specialize in IELTS and other language test preparation and 36 are designated for kids related educational services, which includes Kids English, Kids Science and after-school tutoring.
|
Six months ended June 30, 2011 Financial Highlights
|
|
|
Total net revenues increased 24.8% year-over-year to RMB165.7 million ($25.6 million
1
) from RMB132.8 million in the six months ended June 30, 2010.
|
1.
|
This press release contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted,
all translations from Renminbi to US dollars for the quarter ended and six months ended June 30, 2011 were made at a rate of RMB6.4635 to USD1.00, the U.S. dollar exchange rate against the Renminbi on June 30, 2011 as set forth in the H.10
weekly statistical release of Federal Reserve Board. Global Education makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any
particular rate or at all
|
|
|
|
Net income, including share-based compensation and fair value change in contingent consideration payable attributable to Global Education, increased
52.7% to RMB22.9 million ($3.5 million), from RMB15.0 million in the six months ended June 30, 2010.
|
|
|
|
Non-GAAP operating income, excluding share-based compensation of RMB3.8 million ($0.6 million) versus RMB2.2 million for the six months ended
June 30, 2010, decreased 69.1% year-over-year to RMB6.4 million ($1.0 million) from RMB20.7 million in the six months ended June 30, 2010. GAAP operating income (including share-based compensation) decreased 85.9% year-over-year to RMB2.6
million ($0.4 million) from RMB18.5 million in the six months ended June 30, 2010. In the first half of fiscal year 2011, we continue to expand our learning center network and marketing, especially our new, high potential business lines of Kids
Science and after-school tutoring. In the six months ended June 30, 2011, we have added 23 new learning centers, 6 of which related to our test preparation business and 17 new learning centers relating to Kids Science and after-school tutoring.
|
|
|
|
Non-GAAP net income, excluding share-based compensation and fair value change in contingent consideration payable attributable to Global Education,
decreased 19.4% year-over-year to RMB17.0 million ($2.6 million) from RMB21.1 million in the six months ended June 30, 2010.
|
|
|
|
Total course enrollments increased 9.7% year-over-year to 460,444, compared to 419,545 in the six months ended June 30, 2010.
|
|
|
|
Total number of learning centers increased to 414, covering 130 cities as of June 30, 2011, up from 351 as of December 31, 2010.
|
|
|
|
Total number of directly-owned-and-operated learning centers increased by 23 to 105 as of June 30, 2011, from 82 as of December 31, 2010.
|
Mr. David Yongqi Zhang, Founder and Chief Executive Officer of Global Education, commented, During the second
quarter of 2011, our IELTS revenue maintained positive growth. IELTS enrollments grew more slowly than expected compared to the historical trend in the same quarter as more Chinese students chose to study in the US this year comparing with last year
and took TOEFL tests. Fortunately, because of our strong teacher resources and brand power, our higher-priced personalized VIP and small-class courses have been developing rapidly. In the second quarter, we added another six learning centers for
Kids Science and after-school tutoring and expect to be able to complete the full year expansion plan of having 40 learning centers for those two programs by the end of the third quarter. We plan to enhance revenues in the Kids Science and
after-school tutoring through increased advertising in the cities where these programs are being offered and adding street-level marketing activities in commercial districts in the second half of 2011.
Mr. Zhang continued, I believe fiscal year 2011 represents a period for additional investment for our sustainable long-term growth. During
this time of expansion, our operating margin will be under some pressure. As we optimize the Companys human resource capacity and train new teachers for a more cost-efficient mix of personnel, we expect to improve operating margins in the next
two years. Going forward, we will continue to strengthen our competitiveness in IELTS preparation, further expand VIP and small-class learning centers, and enter new cities through directly opening new learning centers and acquisition of franchised
centers, in order to drive revenue growth from IELTS test preparation services.
Ms. Hannah Lee, Vice President and Chief Financial
Officer of Global Education, stated, Considering the challenges we faced with IELTS enrollment as mentioned by David, we are pleased with the 25.6% year-over-year revenue growth in the second quarter. We are also encouraged by the early
results of our diversified growth strategy during a usually slow second quarter. Sales and marketing expense and general and administrative expense increased during the period as we continued to expand our learning center network and invested in
marketing and promotional activities for our kids sub-brands ahead of the historical peak season in the third quarter.
2
Second Quarter 2011 Financial Performance
Second quarter 2011
net revenues
increased by 25.6% year-over-year to RMB88.9 million ($13.8 million) from RMB70.8 million in the same period of 2010. The increase was primarily due to the
following:
|
|
|
Net revenues from educational programs and services
increased by 23.6% to RMB81.8 million ($12.7 million) in the second quarter of 2011 compared
to RMB66.2 million in the second quarter of 2010, mainly due to higher average selling price and an increase in course enrollments.
|
|
|
|
Net revenues from franchise fees, study abroad consulting services and sales of books and course materials
increased by 54.3% to RMB7.1 million
($1.1 million) in the second quarter of 2011, compared to RMB4.6 million in the prior year period, driven primarily by increased number of students serviced and commissions earned in relation to our study abroad consulting services and increased
book sales revenue.
|
Cost of revenues
, which primarily consisted of salaries and benefits, rent payments, and books
and course material printing costs, increased 41.4% to RMB43.7 million ($6.8 million) in the second quarter of 2011 compared to RMB30.9 million in the same period of 2010. This was mainly due to expansion of our teaching faculty, increased rental
expenses, and costs related to the growth in the Companys network of directly operated learning centers. This was especially of the case for Kids Science and after school tutoring, programs for which the Company opened two related centers
outside of Beijing during the second quarter. As a result, cost of revenues represented 49.2% of net revenues in the second quarter of 2011, up from 43.6% of net revenues in the same period of 2010.
Selling and marketing expenses
increased 43.6% to RMB31.6 million ($4.9 million) in the second quarter of 2011 compared to RMB22.0 million in the
same period in 2010, reflecting an increase in sales and marketing staff as well as additional marketing and promotional activities in advance of our historically peak season in the third quarter. These expenses were also driven by expanded
offerings for Kids Science and after-school tutoring. As a result, selling and marketing expenses represented 35.5% of net revenues in the second quarter of 2011, up from 31.1% of net revenues in the same period of 2010.
General and administrative expenses
increased 53.7% to RMB12.6 million ($1.9 million) in the second quarter of 2011 compared to RMB8.2 million in
the same period of 2010 mainly due to higher share-based compensation expenses of RMB1.5 million ($0.2 million) in the second quarter of 2011 versus RMB0.6 million in 2010, and increased professional fees compared to the second quarter in 2010 when
we were still a private company. General and administrative expenses represented 14.2% of net revenues in the second quarter of 2011, compared to 11.6% in the same period of 2010.
Operating income
decreased 89.7% to RMB1.0 million ($0.2 million) in the second quarter of 2011, from RMB9.7 million in the same period of 2010, mainly due to a combined increase in cost of
revenues, sales and marketing expenses, and general and administrative expenses.
As a result,
operating margin
for the second quarter
of 2011 was 1.1%, compared to 13.7% in the same period of last year.
Fair value change in contingent consideration payable
resulted in
a gain of RMB2.0 million ($0.3 million) as this non-cash gain relates to mark-to-market adjustment of our contingent consideration payable for performance-linked equity of the Shenyang and Kaiyu schools acquisitions. This fair value change is
calculated by multiplying the change of our share price between March 31, 2011 and June 30, 2011 by the number of contingent performance-based shares outstanding.
3
Income tax expenses
in the second quarter of 2011 was RMB0.3 million ($0.1 million) compared to
income tax recovery of RMB0.9 million in the same period of 2010. The effective tax rate was 2.5% in the second quarter of 2011, compared to an effective tax rate of 12.0% recovery in the same period of 2010. The increase in effective tax rate was
due to the release of accrued tax liabilities in relation to the restructuring of a citys schools by reallocating learning centers within the schools in the second quarter of 2010.
Net income
increased 35.4% to RMB11.1 million ($1.7 million) in the second quarter of 2011, compared to RMB8.2 million in the same quarter of 2010.
Basic and diluted earnings per ADS
were RMB0.44 ($0.07) in the second quarter of 2011. The number of weighted average ADSs used to calculate basic
and diluted earnings per ADS were 25.9 million and 26.0 million, respectively. Each ADS represents four ordinary shares. The Company had approximately 103.6 million ordinary shares outstanding as of June 30, 2011.
Non-GAAP net income
, excluding share-based compensation expenses and fair value change in contingent consideration payable attributable to Global
Education, was RMB10.9 million ($1.7 million) in the second quarter of 2011, representing a 17.4% decrease from the same period of 2010.
Basic and diluted non-GAAP net income per ADS
, excluding share-based compensation expenses and fair value change in contingent consideration
payable attributable to Global Education, for the second quarter of 2011 were both RMB0.40 ($0.06).
Net cash provided by operating
activities
in the three months ended June 30, 2011 was approximately RMB43.2 million ($6.7 million) compared to RMB35.0 million in the three months ended June 30, 2010. The increase was primarily due to our increased efforts in
expanding our learning center network with the opening of ten new learning centers, and our increased promotional and marketing activities in advance of the historical peak third quarter.
Six months ended June 30, 2011 Financial Performance
Six months ended June 30,
2011
net revenues
increased by 24.8% year-over-year to RMB165.7 million ($25.6 million) from RMB132.8 million in the same period of 2010. The increase was primarily due to the following:
|
|
|
Net revenues from educational programs and services
increased by 23.7% to RMB153.8 million ($23.8 million) in the six months ended June 30,
2011 compared to RMB124.3 million in the six months ended June 30, 2010, mainly due to higher average selling price and an increase in course enrollments.
|
|
|
|
Net revenues from franchise fees, study abroad consulting services and sales of books and course materials
increased by 38.4% to RMB11.9 million
($1.8 million) in the six months ended June 30, 2011, compared to RMB8.6 million in the prior year period, driven primarily by increased number of students serviced and commissions earned in relation to our study abroad consulting services and
increased book sales revenue.
|
Cost of revenues
, which primarily consisted of salaries and benefits, rent payments,
and books and course material printing costs, increased 38.2% to RMB82.2 million ($12.7 million) in the six months ended June 30, 2011 compared to RMB59.5 million in the same period of 2010. This was mainly due to larger teaching faculty,
increased rental expenses, and costs related to the growth in the Companys network of directly operated learning
4
centers, especially relating to those for Kids Science and after school tutoring programs. As a result, cost of revenues represented 49.6% of net revenues in the six months ended June 30,
2011, up from 44.8% of net revenues in the same period of 2010.
Selling and marketing expenses
increased 46.9% to RMB57.6 million
($8.9 million) in the six months ended June 30, 2011 compared to RMB39.2 million in the same period in 2010, reflecting an increase in sales and marketing staff as well as additional marketing and promotional activities for the Kids Science and
after-school tutoring business and also in advance of our summer peak quarter. As a result, selling and marketing expenses represented 34.8% of net revenues in the six months ended June 30, 2011, up from 29.5% of net revenues in the same period
of 2010.
General and administrative expenses
increased 48.4% to RMB23.3 million ($3.6 million) in the six months ended June 30,
2011 compared to RMB15.7 million in the same period of 2010 mainly due to higher share-based compensation expenses of RMB3.0 million ($0.5 million) in the six months ended June 30, 2011 versus RMB1.2 million in 2010, and increased professional
fees compared to the first half of 2010 when we were still a private company. General and administrative expenses represented 14.1% of net revenues in the six months ended June 30, 2011, compared to 11.8% in the same period of 2010.
Operating income
decreased 85.9% to RMB2.6 million ($0.4 million) in the six months ended June 30, 2011, from RMB18.4 million in the same
period of 2010, mainly due to a combined increase in cost of revenues, sales and marketing expenses, and general and administrative expenses.
As a result,
operating margin
for the six months ended June 30, 2011 was 1.6%, compared to 13.9% in the same period of last year.
Fair value change in contingent consideration payable
resulted in a gain of RMB9.7 million ($1.5 million) as this non-cash gain relates to
mark-to-market adjustment of our contingent consideration payable for performance-linked equity of the Shenyang and Kaiyu schools acquisitions. This fair value change is calculated by multiplying the change of our share price between
December 31, 2010 and June 30, 2011 by the number of contingent performance-based shares outstanding.
Income tax expenses
for the six months ended June 30, 2011 was RMB1.3 million ($0.2 million) compared to RMB2.5 million in the same period of 2010. The effective tax rate was 5.4% in the six months ended June 30, 2011, compared to an effective tax rate of
14.3% in the same period of 2010. The decrease was mainly due to that the IPO-related expenses paid in the first quarter which were deductible for tax purposes and were accounted as a reduction of paid-in capital that did not reduce net income for
accounting purposes in accordance with US GAAP.
Net income
increased 52.7% to RMB22.9 million ($3.5 million) in the six months ended
June 30, 2011, compared to RMB15.0 million in the same period of 2010.
Basic and diluted earnings per ADS
were RMB0.88
($0.14) for the six months ended June 30, 2011. The number of weighted average ADSs used to calculate basic and diluted earnings per ADS were 25.9 million and 26.1 million, respectively. Each ADS represents four ordinary shares.
Non-GAAP net income
, excluding share-based compensation expenses and fair value change in contingent consideration payable
attributable to Global Education, was RMB17.0 million ($2.6 million) in the six months ended June 30, 2011, representing a 19.4% decrease from RMB21.1 million in the same period of 2010.
Basic and diluted non-GAAP net income per ADS
, excluding share-based compensation expenses and fair value change in contingent consideration payable attributable to Global Education, for the six
months ended June 30, 2011 were both RMB0.64 ($0.10).
5
As of June 30, 2011, the Company had cash and cash equivalents of RMB853.3 million ($132.0 million),
compared to RMB367.6 million as of June 30, 2010.
Net cash provided by operating activities
in the six months ended June 30,
2011 was approximately RMB63.0 million ($9.7 million) compared to RMB57.3 million in the six months ended June 30, 2010. The increase was primarily due to our increased efforts in expanding our learning center network with the opening of ten
new learning centers, and our increased promotional and marketing activities in advance of the historical peak third quarter.
Deferred
revenues
increased to RMB140.8 million ($21.8 million) as of June 30, 2011, from RMB102.2 million as of June 30, 2010. This increase was mainly due to continued business growth.
As of June 30, 2011, Global Education had repurchased a total of 110,121 ADSs, at an aggregate cost of US$0.6 million. Global Educations board of directors will review the share repurchase
program periodically, and may continue to repurchase ADSs on the open market from time to time under the share repurchase program and/or authorize adjustment of its terms and size accordingly.
Financial Outlook for Third Quarter of 2011
The Company estimates that its net revenues for the third quarter of 2011 will be in the range of RMB154 million ($23.8 million) to RMB158 million ($24.4 million), an increase of approximately 20.5% to
23.7% over the same quarter in the previous year.
This forecast reflects the Companys current and preliminary view, which is subject to
change.
Conference Call
The
Company will hold a conference call at 8:00 pm ET on Monday, August 29, 2011, to discuss its unaudited second quarter 2011 financial results. Listeners may access the call by dialing:
US Toll Free: +1-800-860-2442
International: +1-412-858-4600
Access code: Global Education &
Technology
A replay of the call will be available through September 5, 2011. Listeners may access the replay by dialing:
US Toll Free: +1-877-344-7529
International: +1-412-317-0088
Access code: 10003316
A webcast will also be available through the Companys website at
http://ir.globaleducation.cn
until September 6, 2011.
About Global Education
Global
Education & Technology Group Ltd. (Nasdaq: GEDU) is the largest test preparation provider for IELTS and a leading provider of educational courses and related services in China. Under its Global brand, the Company also offers
diversified services that span a students educational life cycle, including after-school courses, overseas study consulting, and professional certification test preparation. As of June 30, 2011, the Companys network comprised 105
directly operated and 309 franchised learning centers across China, as well as an online course delivery platform with more than one million registered members. For more information, please visit
www.gedu.org
.
6
Forward-looking Statements
This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and as defined in the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can be identified by terms
such as anticipate, believe, could, estimate, expect, forecast, future, intend, look forward to, outlook, plan,
should, will, and similar terms and include, among other things, the Companys guidance relating to anticipated financial and operating results for the third quarter of 2011, the Companys future plans and the
growth prospects of the Companys business and industry, including without limitation the Companys Kids Science, after-school tutoring and TOEFL test preparation businesses. The factors that could cause the Companys actual financial
and operating results to differ from what the Company currently anticipates can include its ability to meet challenges associated with its rapid expansion, its ability to anticipate and meet market demand, the growth of Chinas economy and
education market, uncertainties with respect to the Chinas legal and regulatory environments, and other factors, including those stated in the Companys filings with the U.S. Securities and Exchange Commission (the SEC). The
financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Companys prospectus dated October 7, 2010 which was filed with the SEC and is
available on the SECs website at www.sec.gov.
The forward-looking statements in this release involve known and unknown risks and
uncertainties and are based on current expectations, assumptions, estimates, and projections about Global Education and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only of
the Companys views as of the date of this release, to reflect subsequent events or circumstances, or to 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, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
About Non-GAAP Measures
To
supplement Global Educations unaudited consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (GAAP), the Company uses the following measures defined as non-GAAP financial measures:
net income excluding share-based compensation expenses and fair value change in contingent consideration, operating income excluding share-based compensation expenses, operating costs and expenses excluding share-based compensation expenses, general
and administrative expenses excluding share-based compensation expenses, operating margin excluding share-based compensation expenses, and basic and diluted net income per ADS attributable to ordinary shareholders excluding share-based compensation
expenses and fair value change in contingent consideration payable.
Global Education believes that these non-GAAP financial measures are
useful for its management and investors to assess and analyze the Companys core operating results as share-based compensation expenses and fair value change in contingent consideration payable is not directly attributable to the underlying
performance of the Companys business operations and may not be indicative of its operating performance from a cash perspective. These non-GAAP financial measures also facilitate managements internal comparisons to its historical
performance and liquidity. A limitation of using these non-GAAP financial measures is that these non-GAAP measures exclude the share-based compensation charge and fair value change in contingent consideration payable that have been and will continue
to be for the foreseeable future a significant recurring expense in Global Educations business.
7
The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in accordance with GAAP. The Company is only providing these non-GAAP performance measures in the press release, and will not incorporate into GAAP financial statements. For more
information on these non-GAAP financial measures, please see the tables captioned Reconciliation of Unaudited non-GAAP measures to the Most comparable GAAP measures set forth at the end of this press release.
Contact Information
Global
Education & Technology Group Ltd.
Ms. Hannah Lee, VP & CFO / Ms. Fay Zhang, VP
Phone: +86 10 6212 5800
E-mail: ir@gedu.org
ICR Inc.
Mr. Rob Koepp
Phone: +86-10-6583-7516 or
+1-646-328-2520
E-mail:
robert.koepp@icrinc.com
8
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
2011
|
|
|
As of
March 31,
2011
|
|
|
As of June 30,
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
853,291
|
|
|
|
814,337
|
|
|
|
132,017
|
|
Restricted cash
|
|
|
771
|
|
|
|
771
|
|
|
|
119
|
|
Term deposits
|
|
|
|
|
|
|
5,000
|
|
|
|
|
|
Accounts receivable, net of allowance
|
|
|
4,574
|
|
|
|
2,968
|
|
|
|
708
|
|
Prepaid expenses and other current assets
|
|
|
28,623
|
|
|
|
23,403
|
|
|
|
4,428
|
|
Deferred tax assets, current
|
|
|
6,770
|
|
|
|
5,605
|
|
|
|
1,047
|
|
Amounts due from a related party
|
|
|
320
|
|
|
|
|
|
|
|
50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
894,349
|
|
|
|
852,084
|
|
|
|
138,369
|
|
|
|
|
|
Property and equipment, net
|
|
|
85,064
|
|
|
|
85,674
|
|
|
|
13,161
|
|
Acquired intangible assets, net
|
|
|
6,168
|
|
|
|
5,168
|
|
|
|
954
|
|
Goodwill
|
|
|
36,136
|
|
|
|
35,906
|
|
|
|
5,591
|
|
Other non-current assets
|
|
|
5,696
|
|
|
|
4,908
|
|
|
|
881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
1,027,413
|
|
|
|
983,740
|
|
|
|
158,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
18,990
|
|
|
|
14,605
|
|
|
|
2,938
|
|
Deferred revenue
|
|
|
140,752
|
|
|
|
104,968
|
|
|
|
21,776
|
|
Accrued expenses and other current liabilities
|
|
|
39,856
|
|
|
|
34,794
|
|
|
|
6,167
|
|
Deferred tax liabilities, current
|
|
|
395
|
|
|
|
366
|
|
|
|
61
|
|
Tax payable
|
|
|
3,273
|
|
|
|
6,961
|
|
|
|
507
|
|
Amount due to a related party
|
|
|
298
|
|
|
|
|
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
203,564
|
|
|
|
161,694
|
|
|
|
31,495
|
|
|
|
|
|
Contingent consideration payable
|
|
|
13,379
|
|
|
|
15,386
|
|
|
|
2,069
|
|
Deferred tax liabilities, non-current
|
|
|
2,900
|
|
|
|
2,042
|
|
|
|
449
|
|
Other non-current liabilities
|
|
|
3,868
|
|
|
|
4,204
|
|
|
|
598
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
223,711
|
|
|
|
183,326
|
|
|
|
34,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30,
2011
|
|
|
As of
March 31,
2011
|
|
|
As of June 30,
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Shareholders Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary shares
|
|
|
75
|
|
|
|
75
|
|
|
|
12
|
|
Additional paid-in capital
|
|
|
708,830
|
|
|
|
706,888
|
|
|
|
109,667
|
|
Treasury stock
|
|
|
(3,607
|
)
|
|
|
|
|
|
|
(558
|
)
|
Statutory reserves
|
|
|
27,369
|
|
|
|
26,252
|
|
|
|
4,234
|
|
Retained earnings
|
|
|
84,609
|
|
|
|
74,674
|
|
|
|
13,090
|
|
Accumulated other comprehensive loss
|
|
|
(13,574
|
)
|
|
|
(7,475
|
)
|
|
|
(2,100
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders Equity
|
|
|
803,702
|
|
|
|
800,414
|
|
|
|
124,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities, Redeemable Convertible Preferred Shares and Shareholders Equity
|
|
|
1,027,413
|
|
|
|
983,740
|
|
|
|
158,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Unaudited Interim Condensed Consolidated Statements of Operations
(In thousands, except ADS and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Educational programs and services
|
|
|
81,805
|
|
|
|
66,197
|
|
|
|
12,656
|
|
Franchise fees, study abroad consulting services and sales of books and course materials
|
|
|
7,052
|
|
|
|
4,614
|
|
|
|
1,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
88,857
|
|
|
|
70,811
|
|
|
|
13,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
(43,708
|
)
|
|
|
(30,918
|
)
|
|
|
(6,762
|
)
|
Selling and marketing expenses
|
|
|
(31,592
|
)
|
|
|
(22,018
|
)
|
|
|
(4,888
|
)
|
General and administrative expenses
|
|
|
(12,565
|
)
|
|
|
(8,169
|
)
|
|
|
(1,944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
|
|
(87,865
|
)
|
|
|
(61,105
|
)
|
|
|
(13,594
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
992
|
|
|
|
9,706
|
|
|
|
153
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
4,969
|
|
|
|
1,769
|
|
|
|
769
|
|
Foreign exchange gain/(loss), net
|
|
|
3,397
|
|
|
|
(94
|
)
|
|
|
526
|
|
Consideration payable fair value change
|
|
|
2,008
|
|
|
|
(3,915
|
)
|
|
|
311
|
|
Other income/(expense), net
|
|
|
(27
|
)
|
|
|
(154
|
)
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
11,339
|
|
|
|
7,312
|
|
|
|
1,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)/benefit
|
|
|
(287
|
)
|
|
|
874
|
|
|
|
(45
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
11,052
|
|
|
|
8,186
|
|
|
|
1,710
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of convertible redeemable preferred shares
|
|
|
|
|
|
|
977
|
|
|
|
|
|
Income allocated to participating preferred shareholder
|
|
|
|
|
|
|
(3,024
|
)
|
|
|
|
|
Net income attributable to ordinary shareholders
|
|
|
11,052
|
|
|
|
6,139
|
|
|
|
1,710
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.11
|
|
|
|
0.12
|
|
|
|
0.02
|
|
Diluted
|
|
|
0.11
|
|
|
|
0.11
|
|
|
|
0.02
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
103,604,136
|
|
|
|
49,799,748
|
|
|
|
103,604,136
|
|
Diluted
|
|
|
103,966,309
|
|
|
|
75,071,246
|
|
|
|
103,966,309
|
|
|
|
|
|
For the three months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Share-based compensation expense included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
120
|
|
|
|
142
|
|
|
|
19
|
|
Selling and marketing expenses
|
|
|
235
|
|
|
|
357
|
|
|
|
36
|
|
General and administrative expenses
|
|
|
1,474
|
|
|
|
598
|
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
1,829
|
|
|
|
1,097
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Reconciliation of Unaudited Non-GAAP Measures to the Most Comparable GAAP Measures
(In thousands, except ADS and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
General and administrative expenses
|
|
|
12,565
|
|
|
|
8,169
|
|
|
|
1,944
|
|
Share-based compensation expense in general and administrative expenses
|
|
|
1,474
|
|
|
|
598
|
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general and administrative expenses
|
|
|
11,091
|
|
|
|
7,571
|
|
|
|
1,716
|
|
Total operating costs and expenses
|
|
|
87,865
|
|
|
|
61,105
|
|
|
|
13,594
|
|
Share-based compensation expenses
|
|
|
1,829
|
|
|
|
1,097
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating costs and expenses
|
|
|
86,036
|
|
|
|
60,008
|
|
|
|
13,311
|
|
Operating income
|
|
|
992
|
|
|
|
9,706
|
|
|
|
154
|
|
Share-based compensation expenses
|
|
|
1,829
|
|
|
|
1,097
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
|
2,821
|
|
|
|
10,803
|
|
|
|
437
|
|
Operating margin
|
|
|
1.1
|
%
|
|
|
13.7
|
%
|
|
|
1.1
|
%
|
Non-GAAP operating margin
|
|
|
3.2
|
%
|
|
|
15.3
|
%
|
|
|
3.2
|
%
|
Net income
|
|
|
11,052
|
|
|
|
8,186
|
|
|
|
1,710
|
|
Share-based compensation expenses
|
|
|
1,829
|
|
|
|
1,097
|
|
|
|
283
|
|
Fair value change in contingent consideration payable
|
|
|
(2,008
|
)
|
|
|
3,915
|
|
|
|
(311
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
10,873
|
|
|
|
13,198
|
|
|
|
1,682
|
|
Net income per ADS attributable to ordinary shareholders - Basic (Note 1)
|
|
|
0.44
|
|
|
|
0.48
|
|
|
|
0.07
|
|
Net income per ADS attributable to ordinary shareholders - Diluted (Note 1)
|
|
|
0.44
|
|
|
|
0.44
|
|
|
|
0.07
|
|
Non-GAAP Net income per ADS attributable to ordinary shareholders - Basic (Note 1)
|
|
|
0.40
|
|
|
|
0.76
|
|
|
|
0.06
|
|
Non-GAAP Net income per ADS attributable to ordinary shareholders - Diluted (Note 1)
|
|
|
0.40
|
|
|
|
0.72
|
|
|
|
0.06
|
|
Weighted average shares used in calculating basic net income per ADS (Note 1)
|
|
|
103,604,136
|
|
|
|
49,799,748
|
|
|
|
103,604,136
|
|
Weighted average shares used in calculating diluted net income per ADS (Note 1)
|
|
|
103,966,309
|
|
|
|
75,071,246
|
|
|
|
103,966,309
|
|
Note 1: Each ADS represents four common shares
12
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Unaudited Interim Condensed Consolidated Statements of Operations
(In thousands, except ADS and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Educational programs and services
|
|
|
153,770
|
|
|
|
124,253
|
|
|
|
23,791
|
|
Franchise fees, study abroad consulting services and sales of books and course materials
|
|
|
11,923
|
|
|
|
8,579
|
|
|
|
1,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
165,693
|
|
|
|
132,832
|
|
|
|
25,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
(82,183
|
)
|
|
|
(59,478
|
)
|
|
|
(12,715
|
)
|
Selling and marketing expenses
|
|
|
(57,624
|
)
|
|
|
(39,179
|
)
|
|
|
(8,915
|
)
|
General and administrative expenses
|
|
|
(23,334
|
)
|
|
|
(15,666
|
)
|
|
|
(3,610
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses
|
|
|
(163,141
|
)
|
|
|
(114,323
|
)
|
|
|
(25,240
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
2,552
|
|
|
|
18,509
|
|
|
|
396
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
8,069
|
|
|
|
3,224
|
|
|
|
1,248
|
|
Foreign exchange gain, net
|
|
|
3,347
|
|
|
|
(100
|
)
|
|
|
518
|
|
Consideration payable fair value change
|
|
|
9,725
|
|
|
|
(3,915
|
)
|
|
|
1,505
|
|
Other income/(expense), net
|
|
|
483
|
|
|
|
(254
|
)
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
24,176
|
|
|
|
17,464
|
|
|
|
3,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(1,284
|
)
|
|
|
(2,485
|
)
|
|
|
(199
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
22,892
|
|
|
|
14,979
|
|
|
|
3,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of convertible redeemable preferred shares
|
|
|
|
|
|
|
(939
|
)
|
|
|
|
|
Income allocated to participating preferred shareholder
|
|
|
|
|
|
|
(5,278
|
)
|
|
|
|
|
Net income attributable to ordinary shareholders
|
|
|
22,892
|
|
|
|
8,762
|
|
|
|
3,542
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.22
|
|
|
|
0.18
|
|
|
|
0.03
|
|
Diluted
|
|
|
0.22
|
|
|
|
0.17
|
|
|
|
0.03
|
|
|
|
|
|
Weighted average number of shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
103,636,320
|
|
|
|
49,455,270
|
|
|
|
103,636,320
|
|
Diluted
|
|
|
104,248,979
|
|
|
|
50,092,576
|
|
|
|
104,248,979
|
|
|
|
|
|
For the six months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
Share-based compensation expense included in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues
|
|
|
296
|
|
|
|
283
|
|
|
|
46
|
|
Selling and marketing expenses
|
|
|
537
|
|
|
|
717
|
|
|
|
83
|
|
General and administrative expenses
|
|
|
2,998
|
|
|
|
1,188
|
|
|
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
3,831
|
|
|
|
2,188
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
GLOBAL EDUCATION & TECHNOLOGY GROUP LIMITED
Reconciliation of Unaudited Non-GAAP Measures to the Most Comparable GAAP Measures
(In thousands, except ADS and per ADS data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30,
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
|
RMB
|
|
|
RMB
|
|
|
USD
|
|
General and administrative expenses
|
|
|
23,334
|
|
|
|
15,666
|
|
|
|
3,610
|
|
Share-based compensation expense in general and administrative expenses
|
|
|
2,998
|
|
|
|
1,188
|
|
|
|
464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general and administrative expenses
|
|
|
20,336
|
|
|
|
14,478
|
|
|
|
3,146
|
|
|
|
|
|
Total operating costs and expenses
|
|
|
163,141
|
|
|
|
114,323
|
|
|
|
25,240
|
|
Share-based compensation expenses
|
|
|
3,831
|
|
|
|
2,188
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating costs and expenses
|
|
|
159,310
|
|
|
|
112,135
|
|
|
|
24,647
|
|
|
|
|
|
Operating income
|
|
|
2,552
|
|
|
|
18,509
|
|
|
|
395
|
|
Share-based compensation expenses
|
|
|
3,831
|
|
|
|
2,188
|
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating income
|
|
|
6,383
|
|
|
|
20,697
|
|
|
|
988
|
|
|
|
|
|
Operating margin
|
|
|
1.5
|
%
|
|
|
13.9
|
%
|
|
|
1.5
|
%
|
Non-GAAP operating margin
|
|
|
3.9
|
%
|
|
|
15.6
|
%
|
|
|
3.9
|
%
|
|
|
|
|
Net income
|
|
|
22,892
|
|
|
|
14,979
|
|
|
|
3,542
|
|
Share-based compensation expenses
|
|
|
3,831
|
|
|
|
2,188
|
|
|
|
593
|
|
Fair value change in contingent consideration payable
|
|
|
(9,725
|
)
|
|
|
3,915
|
|
|
|
(1,505
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income
|
|
|
16,998
|
|
|
|
21,082
|
|
|
|
2,630
|
|
|
|
|
|
Net income per ADS attributable to ordinary shareholders - Basic (Note 1)
|
|
|
0.88
|
|
|
|
0.72
|
|
|
|
0.14
|
|
Net income per ADS attributable to ordinary shareholders - Diluted (Note 1)
|
|
|
0.88
|
|
|
|
0.68
|
|
|
|
0.14
|
|
|
|
|
|
Non-GAAP Net income per ADS attributable to ordinary shareholders - Basic (Note 1)
|
|
|
0.64
|
|
|
|
1.04
|
|
|
|
0.10
|
|
Non-GAAP Net income per ADS attributable to ordinary shareholders - Diluted (Note 1)
|
|
|
0.64
|
|
|
|
1.04
|
|
|
|
0.10
|
|
|
|
|
|
Weighted average shares used in calculating basic net income per ADS (Note 1)
|
|
|
103,636,320
|
|
|
|
49,455,270
|
|
|
|
103,636,320
|
|
|
|
|
|
Weighted average shares used in calculating diluted net income per ADS (Note 1)
|
|
|
104,248,979
|
|
|
|
50,092,576
|
|
|
|
104,248,979
|
|
Note 1:
|
Each ADS represents four common shares
|
14
Global Education & Technology Grp. Ltd ADS (MM) (NASDAQ:GEDU)
Historical Stock Chart
From Jun 2024 to Jul 2024
Global Education & Technology Grp. Ltd ADS (MM) (NASDAQ:GEDU)
Historical Stock Chart
From Jul 2023 to Jul 2024