Exhibit 99.1

 

 

ATA Reports Financial Results for Three-Month Period Ended September 30, 2017

Company to Hold Conference Call on Thursday, November 9, 2017, at 8 p.m. ET

 

Beijing, China, November 9, 2017 (NY) / November 10, 2017 (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 the three months ended September 30, 2017 (“Quarter ended September 30, 2017”).

 

As previously disclosed on the Company’s Form 6-K filing with the SEC on June 2, 2017, ATA’s Board of Directors approved a change in the Company’s fiscal year end from March 31 to December 31. This change was made to better reflect the business cycle of the Company as well as to allow ATA to manage and streamline its financial reporting processes by aligning its reporting schedule with statutory requirements in China. The Company will file a transition report on Form 20-F after December 31, 2017, to account for the transition period from April 1, 2017, to December 31, 2017 (“Nine-month Transition Period 2017”), as a result of this change. The Company will continue to report financial results on a quarterly basis during this transition period.

 

Financial and Operating Highlights for the Quarter Ended September 30, 2017 (percentage changes and comparisons against the quarter ended September 30, 2016)

 

·                  Net revenues of RMB69.6 million (US$10.5 million), up 6.8%

 

·                  Gross profit of RMB30.8 million (US$4.6 million), compared to RMB29.6 million

 

·                  Loss from operations of RMB16.7 million (US$2.5 million), compared to RMB9.3 million, primarily due to increased operating expenses related to labor costs for new hires and incremental remuneration packages, as well as higher share-based compensation expense

 

·                  Net loss attributable to ATA Inc. of RMB16.0 million (US$2.4 million), compared to RMB35.6 million, an improvement due to the RMB21.9 million impairment loss taken in the prior-year period

 

·                  Adjusted net loss attributable to ATA Inc. excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) of RMB11.0 million (US$1.6 million), compared to RMB34.6 million

 

·                  Basic and diluted losses per ADS attributable to ATA Inc. were both RMB0.68 (US$0.10). Basic and diluted losses per ADS attributable to ATA Inc. excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) were RMB0.46 (US$0.06).

 

·                  Delivered approximately 1.4 million billable tests, compared to 1.8 million billable tests in prior-year period

 

·                  RMB166.2 million (US$25.0 million) in cash and cash equivalents as of September 30, 2017

 

Mr. Kevin Ma, ATA’s Chairman and Chief Executive Officer, stated, “We were pleased to achieve top line growth for the Quarter ended September 30, 2017. After successfully administering the junior level Accounting Professional and Technical Qualification Exam in the city of Nanchang last quarter, we delivered the mid-level version of this exam title in Nanchang and other major cities and provinces, including Beijing, Shanghai and Fujian, during the period. In addition, we delivered new exams and related services for events such as the National and Local Tax Law Knowledge Contests, which were launched in various provinces in China including Shanxi, Yunnan, Hunan, Guizhou, and Inner Mongolia. ATA also provided HR Select services to local financial institutions, including the Sichuan Rural Credit Cooperative in Sichuan province, with which we forged a partnership this year. Furthermore, we announced in August that ATA has entered into a test preparation partnership with ACT, Inc. (‘ACT’) this past April. In September, ATA successfully delivered the ACT test in Jeju Island, Korea, and Global Assessment Certificate schools in mainland China. The seamless execution of the exam was notable as ACT cancelled a number of their scheduled tests across Asia due to a suspected security breach of test materials.”

 

1



 

Mr. Ma continued, “ATA is undertaking several initiatives to strengthen our core testing services business. We have been adding resources to our research and development team, and actively evaluating our platforms as we aim to bring our clients the latest technologies in test delivery and preparation. In addition, we have decentralized our sales and marketing functions to enable ATA to take better advantage of local business opportunities. With new provincial representative offices, we believe we are well positioned to become a major market player in more geographically focused exams. As a result of all these initiatives, as well as costs associated with incremental remuneration packages, increased operating expenses ultimately impacted our bottom line for the Quarter ended September 30, 2017. The last quarter of the calendar year has generally been our strongest due to the timing of campus recruitment and client exams. As we anticipate a strong quarter for the three-month period ending December 31, 2017, we are reiterating our previously provided net revenue guidance for the Nine-Month Transition Period 2017.”

 

Update on Preliminary Proposal to Acquire ATA Online

 

ATA provided an update on the previously announced preliminary non-binding proposal (the “Proposal”) from Mr. Kevin Ma to acquire ATA’s 100% equity interest in ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”), a wholly-owned subsidiary of the Company, for a total consideration of US$150 million. The Board-established special committee, comprising two of ATA’s independent directors Mr. Alec Tsui and Ms. Hope Ni, has retained a financial advisor and U.S. legal counsel, and continues working with these advisors in reviewing and evaluating the Proposal.

 

Operating Review

 

In the Quarter ended September 30, 2017, ATA delivered a total of approximately 1.4 million billable tests, compared to 1.8 million billable tests in the three months ended September 30, 2016. The Company had a network of 3,256 authorized test centers throughout China as of September 30, 2017, which the Company believes is the largest test center network in China operated by a single commercial testing service provider. ATA has delivered a total of approximately 93.4 million billable tests since it began operations in 1999.

 

GAAP Results for the Quarter Ended September 30, 2017

 

ATA’s total net revenues for the Quarter ended September 30, 2017 were RMB69.6 million (US$10.5 million), a 6.8% increase from RMB65.1 million in the prior-year period.

 

Gross profit for the Quarter ended September 30, 2017 was RMB30.8 million (US$4.6 million), compared to RMB29.6 million in the prior-year period. Gross margin was 44.3% during the period, compared to 45.4% in the prior-year period. The decrease in gross margin was primarily due to increased costs related to the delivery of the Accounting Professional and Technical Qualification Exam, a new exam title in a number of major cities and provinces that incurred higher expenses during the initial implementation phase, as well as increased licensing fees and higher share-based compensation expense related to new share options issued in January 2017.

 

Loss from operations for the Quarter ended September 30, 2017 was RMB16.7 million (US$2.5 million), compared to RMB9.3 million, primarily due to increased operating expenses related to labor costs for new hires and incremental remuneration packages, as well as higher share-based compensation expense.

 

Net loss attributable to ATA Inc. for the Quarter ended September 30, 2017 improved to RMB16.0 million (US$2.4 million), compared to RMB35.6 million in the prior-year period when the Company recorded an RMB21.9 million impairment loss related to an equity method investment in an associated company.

 

For the Quarter ended September 30, 2017, basic and diluted losses per common share attributable to ATA Inc. were both RMB0.34 (US$0.05), compared to RMB0.78 for the prior-year period. Basic and diluted losses per ADS attributable to ATA Inc. were both RMB0.68 (US$0.10) in the Quarter ended September 30, 2017, compared to RMB1.56 in the prior-year period.

 

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Non-GAAP Measures

 

Adjusted net loss attributable to ATA Inc. for the Quarter ended September 30, 2017, which excludes share-based compensation expense and foreign currency exchange gain (non-GAAP), was RMB11.0 million (US$1.6 million), compared to RMB34.6 million in the prior-year period.

 

Basic and diluted losses per common share attributable to ATA Inc. excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for the Quarter ended September 30, 2017 were both RMB0.23 (US$0.03). Basic and diluted losses per ADS attributable to ATA Inc. excluding share-based compensation expense and foreign currency exchange gain (non-GAAP) for the Quarter ended September 30, 2017 were both RMB0.46 (US$0.06), compared to RMB1.50 in the prior-year period.

 

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 the Quarter ended September 30, 2017 was 22.9 million. Each ADS represents two common shares.

 

Balance Sheet Highlights

 

As of September 30, 2017, ATA’s cash and cash equivalents were RMB166.2 million (US$25.0 million), working capital was RMB156.1 million (US$23.5 million), and total shareholders’ equity was RMB308.6 million (US$46.4 million); compared to RMB222.4 million, RMB192.9 million, and RMB392.5 million, respectively, as of March 31, 2017.

 

Guidance for Nine-month Transition Period 2017 and Quarter Ending December 31, 2017

 

For the quarter ending December 31, 2017, ATA expects net revenues of between RMB312.0 million and RMB317.0 million.

 

For the nine months ending December 31, 2017, ATA is reiterating its expectation of net revenues between RMB490.0 million and RMB510.0 million.

 

Estimated Financial Results

 

(RMB in millions)

 

 

 

Estimated for the nine months ending
December 31, 2017

 

Actual for the nine months ended
December 31, 2016

 

Net Revenues

 

490.0-510.0

 

435.4

 

 

 

 

Estimated for the quarter ending
December 31, 2017

 

Actual for the quarter ended
December 31, 2016

 

Net Revenues

 

312.0-317.0

 

273.5

 

 

These are ATA’s current projections, which are subject to change. You are cautioned that the operating results in the Quarter ended September 30, 2017, are not necessarily indicative of operating results for any future periods.

 

3



 

Conference Call and Webcast Information (With Accompanying Presentation)

 

ATA will host a conference call at 8 p.m. Eastern Time on Thursday, November 9, 2017, during which management will discuss the results of the Quarter ended September 30, 2017. 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) 419-5570

 

 

 

 

International (Toll):

+1 (617) 896-9871

 

 

 

Toll-Free

Local Access

China:

(800) 990 1344

(400) 881 1630

Hong Kong:

 

3002 1672

 

 

 

Participant Passcode:

41083271

 

 

A live webcast of the conference call can be accessed at the investor relations section of ATA’s website at www.atai.net.cn or by clicking the following link: https://www.webcaster4.com/Webcast/Page/274/23187.

 

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 the investor 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, asset management, insurance, and accounting. As of September 30, 2017, ATA’s test center network comprised 3,256 authorized test centers located throughout China. The Company believes that it has the largest test center network of any commercial testing service provider in China.

 

ATA has delivered approximately 93.4 million billable tests since ATA started operations in 1999. For more information, please visit ATA’s website at www.atai.net.cn.

 

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 quarter and nine months ending December 31, 2017, and statements regarding market demand and trends, the delivery of various new exams and related services including the National and Local Tax Law Knowledge Contests, the HR Select services provided for Sichuan Rural Credit Cooperative, the junior level and mid-level Accounting Professional and Technical Qualification Exam, the ACT test preparation services, and the Company’s future growth and results of operations.

 

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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 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, 2017, 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.atai.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, 2017.

 

The preliminary results for the Quarter ended September 30, 2017 remain subject to the finalization of the Company’s year-end closing and reporting 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 the Quarter ended September 30, 2017 into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB6.6533 to US$1.00, the noon buying rate as of September 30, 2017, 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.

 

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 gain or loss, which may not be indicative of its operating performance.

 

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 gain or loss 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 gain or loss 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 “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” shown at the end of 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.

Amy Tung, CFO

Carolyne Y. Sohn, Senior Associate

+86 10 6518 1122 x 5518

415-568-2255

amytung@atai.net.cn

csohn@equityny.com

 

 

 

Adam Prior, Senior Vice President

 

212-836-9606

 

aprior@equityny.com

 

5



 

ATA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

March 31,

 

September 30,

 

September 30,

 

 

 

2017

 

2017

 

2017

 

 

 

RMB

 

RMB

 

USD

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

222,448,413

 

166,219,394

 

24,983,000

 

Accounts receivable, net

 

56,161,255

 

61,896,441

 

9,303,119

 

Receivable due from shareholder

 

10,000,000

 

 

 

Prepaid expenses and other current assets

 

7,335,824

 

25,315,871

 

3,805,010

 

Total current assets

 

295,945,492

 

253,431,706

 

38,091,129

 

 

 

 

 

 

 

 

 

Long-term investments

 

88,891,687

 

92,288,740

 

13,871,123

 

Property and equipment, net

 

51,868,914

 

51,197,629

 

7,695,073

 

Goodwill

 

32,523,983

 

32,523,983

 

4,888,399

 

Intangible assets, net

 

11,326,513

 

10,012,340

 

1,504,868

 

Restricted cash

 

30,000,000

 

 

 

Deferred income tax assets

 

3,388,760

 

2,695,449

 

405,130

 

Other assets

 

5,894,767

 

14,684,870

 

2,207,155

 

Total assets

 

519,840,116

 

456,834,717

 

68,662,877

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term loan

 

3,449,650

 

 

 

Accrued expenses and other payables

 

89,358,847

 

60,404,354

 

9,078,857

 

Deferred revenues

 

10,221,897

 

36,949,709

 

5,553,591

 

Total current liabilities

 

103,030,394

 

97,354,063

 

14,632,448

 

 

 

 

 

 

 

 

 

Deferred revenues

 

1,731,622

 

1,841,952

 

276,848

 

Deferred income tax liabilities

 

22,620,872

 

12,403,596

 

1,864,277

 

Other non-current liabilities

 

 

1,015,826

 

152,680

 

Total liabilities

 

127,382,888

 

112,615,437

 

16,926,253

 

 

 

 

 

 

 

 

 

Mezzanine equity-redeemable non-controlling interests

 

 

35,606,818

 

5,351,753

 

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

 

Common shares

 

3,533,912

 

3,534,871

 

531,296

 

Treasury shares

 

(27,737,073

)

(27,737,073

)

(4,168,920

)

Additional paid-in capital

 

402,631,430

 

382,818,572

 

57,538,150

 

Accumulated other comprehensive loss

 

(25,069,771

)

(26,345,701

)

(3,959,794

)

Retained earnings

 

38,018,802

 

(24,418,428

)

(3,670,124

)

Total shareholders’ equity attributable to ATA Inc.

 

391,377,300

 

307,852,241

 

46,270,608

 

Non-controlling interests

 

1,079,928

 

760,221

 

114,263

 

Total shareholders’ equity

 

392,457,228

 

308,612,462

 

46,384,871

 

Commitments and contingencies

 

 

 

 

 

 

 

Total liabilities, mezzanine equity and shareholders’ equity

 

519,840,116

 

456,834,717

 

68,662,877

 

 

6



 

ATA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

 

 

Three-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

 

 

2016

 

2017

 

2017

 

 

 

RMB

 

RMB

 

USD

 

Net revenues:

 

 

 

 

 

 

 

Testing services

 

56,059,335

 

56,923,543

 

8,555,686

 

Online education services

 

2,712,937

 

2,105,360

 

316,438

 

Other revenue

 

6,359,584

 

10,524,777

 

1,581,888

 

Total net revenues

 

65,131,856

 

69,553,680

 

10,454,012

 

Cost of revenues

 

35,580,720

 

38,738,765

 

5,822,489

 

Gross profit

 

29,551,136

 

30,814,915

 

4,631,523

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

10,191,341

 

13,087,567

 

1,967,079

 

Sales and marketing

 

12,489,548

 

14,263,117

 

2,143,766

 

General and administrative

 

16,187,709

 

20,132,554

 

3,025,950

 

Total operating expenses

 

38,868,598

 

47,483,238

 

7,136,795

 

Loss from operations

 

(9,317,462

)

(16,668,323

)

(2,505,272

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Share of net loss of equity method investments

 

(3,980,587

)

(768,114

)

(115,449

)

Impairment loss of equity method investment

 

(21,904,611

)

 

 

Interest income, net of interest expenses

 

732,121

 

921,450

 

138,495

 

Foreign currency exchange gain (loss), net

 

(14,733

)

2,281

 

343

 

Loss before income taxes

 

(34,485,272

)

(16,512,706

)

(2,481,883

)

 

 

 

 

 

 

 

 

Income tax expense

 

1,092,287

 

8,782

 

1,320

 

Net loss

 

(35,577,559

)

(16,521,488

)

(2,483,203

)

Net loss attributable to non-controlling interests

 

 

(138,007

)

(20,743

)

Net loss attributable to redeemable non-controlling interests

 

 

(424,615

)

(63,820

)

Net loss attributable to ATA Inc.

 

(35,577,559

)

(15,958,866

)

(2,398,640

)

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil income taxes

 

(1,713

)

(154,844

)

(23,273

)

Comprehensive loss attributable to ATA Inc.

 

(35,579,272

)

(16,113,710

)

(2,421,913

)

 

 

 

 

 

 

 

 

Basic and diluted losses

 

 

 

 

 

 

 

per common share attributable to ATA Inc.

 

(0.78

)

(0.34

)

(0.05

)

Basic and diluted losses

 

 

 

 

 

 

 

per ADS attributable to ATA Inc.

 

(1.56

)

(0.68

)

(0.10

)

 

7



 

ATA INC. AND SUBSIDIARIES

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

 

 

 

Six-month Period Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

 

 

2016

 

2017

 

2017

 

 

 

RMB

 

RMB

 

USD

 

Net revenues:

 

 

 

 

 

 

 

Testing services

 

145,613,013

 

155,374,915

 

23,353,060

 

Online education services

 

3,775,820

 

2,617,976

 

393,485

 

Other revenue

 

12,587,042

 

15,618,157

 

2,347,430

 

Total net revenues

 

161,975,875

 

173,611,048

 

26,093,975

 

Cost of revenues

 

84,347,971

 

96,452,598

 

14,496,956

 

Gross profit

 

77,627,904

 

77,158,450

 

11,597,019

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

19,338,971

 

23,734,320

 

3,567,300

 

Sales and marketing

 

24,163,478

 

28,001,446

 

4,208,655

 

General and administrative

 

32,221,526

 

47,454,473

 

7,132,472

 

Total operating expenses

 

75,723,975

 

99,190,239

 

14,908,427

 

Income (loss) from operations

 

1,903,929

 

(22,031,789

)

(3,311,408

)

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

Gain from disposal of long-term investment

 

 

457,236

 

68,723

 

Share of net loss of equity method investments

 

(8,110,341

)

(1,612,158

)

(242,310

)

Impairment loss of equity method investment

 

(21,904,611

)

 

 

Interest income, net of interest expenses

 

1,705,897

 

1,940,811

 

291,707

 

Foreign currency exchange losses, net

 

(46,143

)

(638,826

)

(96,016

)

Loss before income taxes

 

(26,451,269

)

(21,884,726

)

(3,289,304

)

 

 

 

 

 

 

 

 

Income tax expense

 

4,982,928

 

3,397,879

 

510,706

 

Net loss

 

(31,434,197

)

(25,282,605

)

(3,800,010

)

Net loss attributable to non-controlling interests

 

 

(319,707

)

(48,052

)

Net loss attributable to redeemable non-controlling interests

 

 

(544,469

)

(81,834

)

Net loss attributable to ATA Inc.

 

(31,434,197

)

(24,418,429

)

(3,670,124

)

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

Foreign currency translation adjustment, net of nil income taxes

 

239,413

 

(1,275,930

)

(191,774

)

Comprehensive loss attributable to ATA Inc.

 

(31,194,784

)

(25,694,359

)

(3,861,898

)

 

 

 

 

 

 

 

 

Basic and diluted losses

 

 

 

 

 

 

 

per common share attributable to ATA Inc.

 

(0.69

)

(0.66

)

(0.10

)

Basic and diluted losses

 

 

 

 

 

 

 

per ADS attributable to ATA Inc.

 

(1.38

)

(1.32

)

(0.20

)

 

8



 

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,

 

 

 

2016

 

2017

 

2016

 

2017

 

 

 

RMB

 

RMB

 

RMB

 

RMB

 

GAAP net loss attributable to ATA Inc.

 

(35,577,559

)

(15,958,866

)

(31,434,197

)

(24,418,429

)

Share-based compensation expenses

 

1,008,925

 

4,995,707

 

2,048,235

 

10,207,815

 

Foreign currency exchange loss (gain), net

 

14,733

 

(2,281

)

46,143

 

638,826

 

Non-GAAP net loss attributable to ATA Inc.

 

(34,553,901

)

(10,965,440

)

(29,339,819

)

(13,571,788

)

 

 

 

 

 

 

 

 

 

 

GAAP losses per common share attributable to ATA Inc.

 

 

 

 

 

 

 

 

 

Basic and diluted

 

(0.78

)

(0.34

)

(0.69

)

(0.66

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP losses per common share attributable to ATA Inc.

 

 

 

 

 

 

 

 

 

Basic and diluted

 

(0.75

)

(0.23

)

(0.64

)

(0.43

)

 

9