Form: 6-K

Current report of foreign issuer pursuant to Rules 13a-16 and 15d-16 Amendments

November 10, 2014

Exhibit 99.1

 

 

ATA Reports Fiscal 2015 Second Quarter Financial Results

Company to Hold Conference Call on November 11, 2014, at 8 a.m. ET

 

Increased number of activated Exam Inventory Navigator users to about 400,000 in a four-month period

Expanding into K-12 education marketwith MTS technology

 

Beijing, China, November 10, 2014 (NY) / November 11, 2014 (China) — ATA Inc. (“ATA” or the “Company”, Nasdaq: ATAI), a leading provider of advanced testing technologies and testing-related services in China, today announced preliminary unaudited financial results for its fiscal secondquarterended September 30, 2014 (“SecondQuarter 2015”).

 

SecondQuarter 2015Financial and Operating Highlights (percentage changes and comparisons against fiscal secondquarter ended September 30, 2013 (“Second Quarter 2014”))

 

·                  Launched new mobile application called Exam Inventory Navigator in June and issued an update to the application in August, increased number of activated users from approximately 60,000 to 400,000 by the end of Second Quarter 2015

·                  Entered K-12 education market with ATA’s MTS technology

·                  Net revenues of RMB102.5million (US$16.7million), up 127.3%, primarily as a result of the National Unified Certified Public Accountants (“CPA”) exam taking place during Second Quarter 2015, while the prior year’s CPA exam took place in the fiscal third quarterended December 31, 2013 (“Third Quarter 2014”)

·                  Gross profitof RMB46.5million (US$7.6million), up 111.6%

·                  Income from operations of RMB9.3million (US$1.5million), compared toloss from operations of RMB4.7 million

·                  Net incomeof RMB8.8million (US$1.4million), compared tonet loss of RMB4.3 million

·                  Adjusted net income excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB11.0million (US$1.8million),compared to adjusted net loss excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB2.7 million

·                  Basic and diluted earningsper ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2015 were both RMB0.48(US$0.08)

·                  Delivered approximately3.0 million billable tests, up 75.9% due to the change in timing of CPA exam

·                  RMB253.3million (US$41.3million) in cash and no long-term debt as of September 30, 2014

 

Fiscal Year 2015 Outlook

 

·                  For the fiscal year ending March 31, 2015 (“Fiscal Year 2015”), ATA expects net revenues of between RMB385.0 million and RMB405.0 million and non-GAAP net income(adjusted net income, whichexcludes share-based compensation expense and foreign currency exchange gain/loss) of between RMB28.0 million and RMB38.0 million, which includes planned investments of upto RMB30.0 million to maintain and expand ATA’s business.

·                  For the quarter ending December 31, 2014 (“Third Quarter 2015”), ATA expects net revenues of between RMB110.0 million and RMB120.0 million.

 

Mr. Kevin Ma, ATA’s Chairman and Chief Executive Officer, stated, “We were pleased to have successfully delivered the CPA exam using ATA’s advanced testing technologies for the third consecutive year, with over 1.6 million exams taken across China, and the Hong Kong and Macau Special Administrative Regions. As a result of the CPA exam taking place in Second Quarter 2015, a quarter earlier than in fiscal 2014, the number of billable exams delivered and corresponding revenues increased significantly from those in Second Quarter 2014. ATA delivered

 



 

3.0 million billable exams during Second Quarter 2015, including exams for the Securities Association of China (‘SAC’).”

 

Mr. Macontinued, “As our testing services business continues to see stable growth, we are focusing our efforts on how we can better serve consumers. For test takers, we launched our new mobile application,Exam Inventory Navigator (考试导航) in June and issued an update to the application in August. The updated version includes enhanced content, such as test preparation information for various exam subjects, and increases the functionality of the original version by allowing users to visualize each exam with an exam timeline from exam preparation to exam delivery to results being issued, as well as enabling users to customize their subscriptions for receiving exam information. The new version also supports one-click logins by using registered information from third-party platforms, including QQ, Weibo and Renren. We continue to work closely with New Oriental Education & Technology Group on the joint venture we previously announced in July, which aims to be a leading educational tool and resource for working professionals in China, and we are excited to have recently announced a new partnership and strategic investment with Master Mind Education (‘Master Mind’), which marks ATA’s expansion into China’s K-12 education market.We will be working closely with the team at Master Mind on integrating our MTS technology into their network of K-12 after-school institutions, and by joining our respective strengths and resources together, we aim to better serve students, teachers and families within a continuously expanding network of K-12 after-school institutions throughout China. These new projects are still at an early stage of their development, but as we continue to make progress on these initiatives and explore additional opportunities for mutually beneficial business partnerships, we are confident that ATA’s entry into the consumer market will be a driver of long-term growth for the Company.”

 

Operating Review

 

In SecondQuarter 2015, ATA delivered a total of3.0millionbillable tests, compared to 1.7 million inSecond Quarter 2014. The Companyhad a network of 3,022authorized test centers throughout China as of September 30, 2014, which the Company believes to be the largest test center network of any commercial testing service provider in China.ATA has delivered more than 62.5millionbillable tests since it began operations in 1999.

 

GAAP Results

 

Second Quarter 2015

 

For Second Quarter 2015, ATA’s total net revenues were RMB102.5million (US$16.7million), a 127.3% increase from RMB45.1 million in Second Quarter 2014, primarily due tothe CPA exam taking place in Second Quarter 2015 versus Third Quarter 2014 in the prior year.

 

Gross profit for Second Quarter 2015 was RMB46.5million(US$7.6million), a 111.6% increase from RMB22.0million in Second Quarter 2014.Gross margin was45.4% in Second Quarter 2015, compared to48.7% in Second Quarter 2014, primarily as a result of the lower-margin CPA exam being deliveredin Second Quarter 2015 versus Third Quarter 2014 in the prior year.

 

Income from operations in SecondQuarter 2015wasRMB9.3million (US$1.5million), compared toloss from operations of RMB4.7 million in Second Quarter 2014.

 

Netincomefor Second Quarter 2015was RMB8.8million (US$1.4million), compared to net loss of RMB4.3 million in Second Quarter 2014. For Second Quarter 2015, basic and dilutedearningsper common share were both RMB0.19(US$0.03),compared to basic and diluted losses per common share of RMB0.10in Second Quarter 2014. Basic and diluted earningsper ADS were both RMB0.38(US$0.06)in Second Quarter 2015, compared tobasic and diluted losses per ADS of RMB0.19in Second Quarter 2014.

 

2



 

Non-GAAP Measures

 

Adjusted netincome forSecond Quarter 2015, which excludes share-based compensation expense and foreign currency exchange gain (non-GAAP), totaledRMB11.0million (US$1.8million), compared to adjusted net loss excluding share-based compensation and foreign currency exchange gain of RMB2.7million in Second Quarter 2014. Basic and diluted earningsper common share excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2015were bothRMB0.24(US$0.04).

 

Basic and diluted earningsper ADS excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for Second Quarter 2015were both RMB0.48(US$0.08),compared tobasic and diluted losses per ADS excluding share-based compensation and foreign currency exchange gain of RMB0.12 in Second Quarter 2014.

 

Please see the note about non-GAAP measures and the reconciliation table at the end of this press release.

 

Other Data

 

The number of weighted average ADSs used to calculate both basic and diluted earnings per ADS for Second Quarter 2015was22.9million. EachADS represents two common shares.

 

Share Repurchase Plan

 

On August 5, 2014, ATA’sBoard of Directors approved ashare repurchase plan authorizing the Company to repurchase up to US$5.0million of its issued and outstanding ADSsin both open-market and privately negotiated transactions, through block trades. By the end of Second Quarter 2015, the Company had repurchased 123,421ADSs at an average stock price of US$4.63. This share repurchase plan continues through January 31, 2015. The Board may suspend or discontinue the repurchase program at any time. This repurchase program does not obligate ATA to make additional repurchases at any specific time or in any specific situation.

 

Guidancefor Fiscal Year2015 and for Third Quarter 2015

 

ForThird Quarter 2015, ATA expects net revenues of betweenRMB110.0 million and RMB120.0 million.

 

For Fiscal Year 2015, ATA expects net revenues ofbetween RMB385.0 million and RMB405.0 million and non-GAAP net income of between RMB28.0million and RMB38.0million.

 

Estimated Financial Results

(RMB in millions)

 

 

 

Estimatedfor the year ending
March 31, 2015

 

Actual for the year ended
March 31, 2014

 

 

 

 

 

 

 

Net Revenues

 

385.0-405.0

 

384.7

 

Non-GAAPNet Income

 

28.0-38.0

 

37.9

 

 

 

 

Estimatedfor the quarter ending
December 31, 2014

 

Actual for the quarter ended
December 31, 2013

 

 

 

 

 

 

 

Net Revenues

 

110.0-120.0*

 

188.9

 

 


*2014 CPA exam was delivered in Second Quarter 2015; 2013 CPA exam was delivered in Third Quarter 2014.

 

Mr. Maconcluded, “Since the Exam Inventory Navigator’s launch in June, the number of activatedusers reachedapproximately400,000atthe end of Second Quarter 2015.We are very pleased with the mobile application’s initial positive reception and believe that the students and working professionals of today need more than what is currently being offered in the education and assessment marketplace.

 

3



 

ATA understands that each person will have unique goals and needs at different stages of their lives when it comes to education and career. Our ultimate goal is to improve the individual experience for each student and each professional in China by providing consumers with readily accessible, valuable information that can offer additional insight into their personal strengths and weaknesses as they make important decisions for their futures.

 

“In line with the Company’s new consumer strategy, ATA recently announced that it has moved its headquarters to a new office building in Jianwai SOHO in Beijing and also revealed a new logo, which we hope will soon become an easily recognizable brand name amongst consumers in China. We are very excited about all the new developments at ATA and look forward to updating investors on the progress of our consumer initiatives in the coming months.”

 

These are ATA’s current projections, which are subject to change. You are cautioned that operating results in SecondQuarter 2015are not necessarily indicative of operating results for any future periods.

 

Conference Call and Webcast Information (With Accompanying Presentation)

 

ATA will host a conference call at a.m. Eastern Time onTuesday, November 11,2014, during which management will discuss the results ofSecond Quarter 2015. To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time:

 

U.S. & Canada (Toll-Free):

+1 (888) 339-2688

International (Toll):

+1 (617) 847-3007

 

 

Toll-Free

Local Access

China (Netcom):

(10 800) 713 1756

 

China (Telecom):

(10 800) 130 1713

(400) 881 1630

Hong Kong:

(800) 96 3844

3002 1672

 

 

 

Participant Passcode:

53297517

 

 

A live webcast of the conference call can be accessed at the investor relations section of ATA’s website at www.ata.net.cnor by clicking the following link:https://www.webcaster4.com/Webcast/Page/274/6339.

 

An accompanying slide presentation in PDF format will also be made available 30 minutes prior to the conference call on the same investor relations section of ATA’s website. To listen to the webcast, please visit ATA’s website a few minutes prior to the start of the call to register, download, and install any necessary audio software.

 

A replay will be available shortly after the call on theinvestor relations section of ATA’s website and will remain available for 90 days.

 

About ATA Inc.

 

ATA is a leading provider of advanced testing technologies in China. The Company offers comprehensive services for the creation and delivery of assessments based on its proprietary testing technologies and test delivery platform. ATA’s testing technologies are used for professional licensure and certification tests in various industries, including information technology services, banking, teaching, securities, insurance, and accounting. As of September 30, 2014, ATA’s test center network comprised 3,022authorized test centers located throughout China. The Company believes that it has the largest test center network of any commercialtesting service provider in China.

 

ATA has delivered more than 62.5million billable tests since ATA started operations in 1999.

 

For more information, please visit ATA’s website at www.ata.net.cn.

 

4



 

Cautionary Note Regarding 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 Company’s guidance relating to anticipated financial and operating results for the SecondQuarter 2015and Fiscal Year 2015and statements regarding market demand and trends, the SAC exam, the potential growth and success of the Company’s CPA, security guard and Cambridge EnglishJunior Examand other businesses, including its HR Select and MTS businesses,the Company’s share repurchase plan and the Company’s future growth and results of operations.

 

The factors that could cause the Company’s 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 meet the expectations of current and future clients, its ability to deploy new test titles, its ability to win new enterprise contracts, its ability to convert its existing contracts into actual revenues, the economy of China, uncertainties with respect to the China’s legal and regulatory environments, and other factors stated in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”).

 

The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company’s annual report on Form 20-F for its fiscal year ended March 31, 2014, and other filings that ATA has made with the SEC. The filings are available on the SEC’s website at www.sec.gov and at ATA’s website at www.ata.net.cn.For additional information on the risk factors that could adversely affect the Company’s business, financial condition, results of operations, and prospects, please see the “Risk Factors” section of the Company’s Form 20-F for the fiscal year ended March 31, 2014.

 

The selected unaudited financial results for the Second Quarter 2015 announced today are subject to adjustments. The anticipated results for the Second Quarter 2015 remain subject to the finalization of the Company’s year-end closing, reporting and audit processes.

 

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 ATA and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only 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.

 

Currency Convenience Translation

 

The Company’s financial information is stated in Renminbi (“RMB”), the currency of the People’s Republic of China. The translation of RMB amounts for Second Quarter 2015 endedSeptember 30, 2014, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.1380to US$1.00, the noon buying rate as of September 30, 2014, in New York for cable transfers in RMB per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. GAAP.

 

5



 

About Non-GAAP Financial Measures

 

To supplement ATA’s consolidated financial information presented in accordance with U.S. generally accepted accounting principles (“GAAP”), ATA uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss.

 

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. ATA believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share-based compensation expense and foreign currency exchange gains or losses, which may not be indicative of its operating performance from a cash perspective.

 

ATA believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to ATA’s historical performance. ATA computes its non-GAAP financial measures using a consistent method from period to period. ATA believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gains or losses and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gains or losses have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ATA’s business.

 

Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned “Unaudited Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” shown at the end this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ATA.

 

For more information on our company, please contact the following individuals:

 

At the Company

Investor Relations

ATA Inc.

The Equity Group Inc.

Benson Tsang, CFO

Carolyne Y. Sohn, Senior Associate

+86 10 6518 1122 x5107

415-568-2255

bensontsang@ata.net.cn

+86 10 6587 6435

 

csohn@equityny.com

 

 

 

Adam Prior, Senior Vice President

 

212-836-9606

 

aprior@equityny.com

 

6



 

ATA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

September 30,

 

September 30,

 

 

 

2014

 

2014

 

2014

 

 

 

RMB

 

RMB

 

USD

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash

 

311,947,098

 

253,307,578

 

41,268,748

 

Restricted cash

 

2,700,000

 

—

 

—

 

Accounts receivable, net

 

68,353,075

 

110,495,050

 

18,001,800

 

Prepaid expenses and other current assets

 

15,092,674

 

20,184,401

 

3,288,432

 

Total current assets

 

398,092,847

 

383,987,029

 

62,558,980

 

Property and equipment, net

 

55,814,182

 

53,037,137

 

8,640,785

 

Goodwill

 

31,011,902

 

31,011,902

 

5,052,444

 

Intangible assets, net

 

1,792,935

 

1,386,346

 

225,863

 

Other assets

 

4,524,858

 

21,708,297

 

3,536,705

 

Total assets

 

491,236,724

 

491,130,711

 

80,014,777

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accrued expenses and other payables

 

68,766,143

 

87,171,535

 

14,201,943

 

Deferred revenues

 

8,383,327

 

29,907,698

 

4,872,548

 

Total current liabilities

 

77,149,470

 

117,079,233

 

19,074,491

 

 

 

 

 

 

 

 

 

Deferred revenues

 

2,195,382

 

1,827,223

 

297,690

 

Total liabilities

 

79,344,852

 

118,906,456

 

19,372,181

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common shares

 

3,474,894

 

3,509,349

 

571,741

 

Treasury shares

 

(1,029,766

)

(5,349,519

)

(871,541

)

Additional paid-in capital

 

437,964,776

 

389,127,032

 

63,396,388

 

Accumulated other comprehensive loss

 

(27,145,929

)

(27,126,915

)

(4,419,504

)

Retained earnings (accumulated deficit)

 

(1,372,103

)

12,064,308

 

1,965,512

 

Total shareholders’ equity

 

411,891,872

 

372,224,255

 

60,642,596

 

Total liabilities and shareholders’ equity

 

491,236,724

 

491,130,711

 

80,014,777

 

 

7



 

ATA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

Three-month Period Ended

 

 

 

September 30

 

September 30,

 

September 30,

 

 

 

2013

 

2014

 

2014

 

 

 

RMB

 

RMB

 

USD

 

Net revenues:

 

 

 

 

 

 

 

Testing services

 

40,981,608

 

96,616,048

 

15,740,640

 

Test preparation and training solutions

 

1,097,654

 

1,787,306

 

291,187

 

Other revenue

 

3,010,227

 

4,074,594

 

663,831

 

Total net revenues

 

45,089,489

 

102,477,948

 

16,695,658

 

Cost of revenues

 

23,113,181

 

55,980,456

 

9,120,309

 

Gross profit

 

21,976,308

 

46,497,492

 

7,575,349

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

5,561,924

 

9,129,927

 

1,487,443

 

Sales and marketing

 

9,252,243

 

11,319,924

 

1,844,237

 

General and administrative

 

11,831,685

 

16,739,679

 

2,727,220

 

Total operating expenses

 

26,645,852

 

37,189,530

 

6,058,900

 

Income (loss)from operations

 

(4,669,544

)

9,307,962

 

1,516,449

 

 

 

 

 

 

 

 

 

Other income:

 

 

 

 

 

 

 

Interest income

 

763,825

 

503,764

 

82,073

 

Foreign currency exchange gain, net

 

91,924

 

348,986

 

56,857

 

Total other income

 

855,749

 

852,750

 

138,930

 

Income (loss)before income taxes

 

(3,813,795

)

10,160,712

 

1,655,379

 

 

 

 

 

 

 

 

 

Income tax expense

 

506,237

 

1,329,804

 

216,651

 

Net income (loss)

 

(4,320,032

)

8,830,908

 

1,438,728

 

 

 

 

 

 

 

 

 

Other comprehensive loss:

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil income taxes

 

(186,684

)

709

 

116

 

Comprehensive income (loss)

 

(4,506,716

)

8,831,617

 

1,438,844

 

 

 

 

 

 

 

 

 

Basic earnings (losses)per common share

 

(0.10

)

0.19

 

0.03

 

 

 

 

 

 

 

 

 

Diluted earnings (losses)per common share share

 

(0.10

)

0.19

 

0.03

 

 

 

 

 

 

 

 

 

Basic earnings (losses)per ADS

 

(0.19

)

0.38

 

0.06

 

 

 

 

 

 

 

 

 

Diluted earnings (losses)per ADS

 

(0.19

)

0.38

 

0.06

 

 

8



 

ATA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

 

 

Six-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

 

 

2013

 

2014

 

2014

 

 

 

RMB

 

RMB

 

USD

 

Net revenues:

 

 

 

 

 

 

 

Testing services

 

125,151,958

 

175,851,770

 

28,649,686

 

Test preparation and training solutions

 

3,490,125

 

2,596,830

 

423,074

 

Other revenue

 

8,513,219

 

8,346,823

 

1,359,860

 

Total net revenues

 

137,155,302

 

186,795,423

 

30,432,620

 

Cost of revenues

 

67,111,466

 

92,790,375

 

15,117,363

 

Gross profit

 

70,043,836

 

94,005,048

 

15,315,257

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

11,889,186

 

18,816,887

 

3,065,638

 

Sales and marketing

 

20,693,182

 

22,851,691

 

3,722,986

 

General and administrative

 

33,002,151

 

35,167,781

 

5,729,518

 

Total operating expenses

 

65,584,519

 

76,836,359

 

12,518,142

 

Income from operations

 

4,459,317

 

17,168,689

 

2,797,115

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

1,517,859

 

1,824,050

 

297,173

 

Foreign currency exchange gain (loss), net

 

217,012

 

(623,434

)

(101,570

)

Total other income

 

1,734,871

 

1,200,616

 

195,603

 

Income before income taxes

 

6,194,188

 

18,369,305

 

2,992,718

 

 

 

 

 

 

 

 

 

Income tax expense

 

1,105,657

 

4,932,894

 

803,665

 

Net income

 

5,088,531

 

13,436,411

 

2,189,053

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil income taxes

 

(764,520

)

19,014

 

3,098

 

Comprehensive income

 

4,324,011

 

13,455,425

 

2,192,151

 

 

 

 

 

 

 

 

 

Basic earningsper common share

 

0.11

 

0.28

 

0.05

 

 

 

 

 

 

 

 

 

Diluted earningsper common share share

 

0.11

 

0.28

 

0.05

 

 

 

 

 

 

 

 

 

Basic earningsper ADS

 

0.22

 

0.56

 

0.10

 

 

 

 

 

 

 

 

 

Diluted earningsper ADS

 

0.22

 

0.56

 

0.10

 

 

9



 

UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
TO THE MOST COMPARABLE GAAP MEASURES

 

 

 

Three-month Period Ended

 

Six-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2013

 

2014

 

2013

 

2014

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

 

 

 

 

 

 

 

 

 

 

GAAP net income (loss)

 

(4,320,032

)

8,830,908

 

5,088,531

 

13,436,411

 

Share-based compensation expenses

 

1,670,903

 

2,539,366

 

3,462,378

 

5,697,790

 

Foreign currency exchange (gain) loss, net

 

(91,924

)

(348,986

)

(217,012

)

623,434

 

Non-GAAP net income (loss)

 

(2,741,053

)

11,021,288

 

8,333,897

 

19,757,635

 

 

 

 

 

 

 

 

 

 

 

GAAP earnings (losses)per common share

 

 

 

 

 

 

 

 

 

Basic

 

(0.10

)

0.19

 

0.11

 

0.28

 

Diluted

 

(0.10

)

0.19

 

0.11

 

0.28

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP earnings (losses)per common share

 

 

 

 

 

 

 

 

 

Basic

 

(0.06

)

0.24

 

0.18

 

0.42

 

Diluted

 

(0.06

)

0.24

 

0.18

 

0.42

 

 

10