Document and Entity Information
Document and Entity Information | 12 Months Ended |
Mar. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | ATA Inc. |
Entity Central Index Key | 1,420,529 |
Document Type | 20-F |
Document Period End Date | Mar. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --03-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 48,482,724 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 32,317,587 | ¥ 222,448,413 | ¥ 247,667,737 |
Accounts receivable, net | 8,159,178 | 56,161,255 | 50,552,034 |
Receivable due from shareholder | 1,452,813 | 10,000,000 | 10,000,000 |
Prepaid expenses and other current assets | 1,065,757 | 7,335,824 | 8,268,380 |
Total current assets | 42,995,335 | 295,945,492 | 316,488,151 |
Long-term investments | 12,914,297 | 88,891,687 | 50,685,846 |
Property and equipment, net | 7,535,581 | 51,868,914 | 57,229,727 |
Goodwill | 4,725,125 | 32,523,983 | 31,011,902 |
Intangible assets, net | 1,645,530 | 11,326,513 | 750,895 |
Restricted cash | 4,358,438 | 30,000,000 | |
Deferred income tax assets | 492,323 | 3,388,760 | 3,687,804 |
Other assets | 856,400 | 5,894,767 | 10,606,805 |
Total assets | 75,523,029 | 519,840,116 | 470,461,130 |
Current liabilities: | |||
Short-term loan | 501,170 | 3,449,650 | |
Accrued expenses and other payables | 12,982,166 | 89,358,847 | 57,739,627 |
Deferred revenues | 1,485,050 | 10,221,897 | 16,612,164 |
Total current liabilities | 14,968,386 | 103,030,394 | 74,351,791 |
Deferred revenues | 251,572 | 1,731,622 | 1,878,751 |
Deferred income tax liabilities | 3,286,389 | 22,620,872 | |
Total liabilities | 18,506,347 | 127,382,888 | 76,230,542 |
Shareholders' equity: | |||
Common shares: Par value USD 0.01, authorized: 500,000,000 shares, Issued: 46,439,706 and 49,068,082 shares as of March 31, 2016 and 2017, respectively, Outstanding: 45,734,348 and 45,782,724 shares as of March 31, 2016 and 2017, respectively | 513,411 | 3,533,912 | 3,530,704 |
Treasury shares-585,358 common shares as of March 31, 2016 and 2017, at cost | (4,029,677) | (27,737,073) | (27,737,073) |
Additional paid-in capital | 58,494,803 | 402,631,430 | 395,876,282 |
Accumulated other comprehensive loss | (3,642,168) | (25,069,771) | (25,174,129) |
Retained earnings | 5,523,420 | 38,018,802 | 47,734,804 |
Total shareholders' equity attributable to ATA Inc. | 56,859,789 | 391,377,300 | 394,230,588 |
Non-controlling interests | 156,893 | 1,079,928 | |
Total shareholders' equity | 57,016,682 | 392,457,228 | 394,230,588 |
Commitments and contingencies | |||
Total liabilities and shareholders' equity | $ 75,523,029 | ¥ 519,840,116 | ¥ 470,461,130 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Mar. 31, 2016 |
Consolidated Balance Sheets | ||
Common shares, Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, authorized shares | 500,000,000 | 500,000,000 |
Common shares, Issued shares | 49,068,082 | 46,439,706 |
Common shares, Outstanding shares | 45,782,724 | 45,734,348 |
Treasury shares, number of common shares | 585,358 | 585,358 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (loss) | 12 Months Ended | |||
Mar. 31, 2017USD ($)$ / shares | Mar. 31, 2017CNY (¥)¥ / shares | Mar. 31, 2016CNY (¥)¥ / shares | Mar. 31, 2015CNY (¥)¥ / shares | |
Consolidated Statements of Comprehensive Income (loss) | ||||
Net revenues | $ 68,628,794 | ¥ 472,385,716 | ¥ 417,139,969 | ¥ 350,157,824 |
Cost of revenues | 34,846,075 | 239,852,504 | 208,017,208 | 172,539,260 |
Gross profit | 33,782,719 | 232,533,212 | 209,122,761 | 177,618,564 |
Operating expenses: | ||||
Research and development | 6,309,622 | 43,430,385 | 36,529,145 | 36,836,338 |
Sales and marketing | 6,947,820 | 47,823,235 | 42,645,682 | 45,186,175 |
General and administrative | 10,035,743 | 69,078,028 | 78,341,173 | 64,759,122 |
Impairment of intangible assets | 0 | 0 | 310,153 | |
Provision for (reversal of) doubtful accounts | 100,892 | 694,460 | (127,852) | 845,965 |
Total operating expenses | 23,394,077 | 161,026,108 | 157,388,148 | 147,937,753 |
Other operating income | 2,077,500 | |||
Income from operations | 10,388,642 | 71,507,104 | 51,734,613 | 31,758,311 |
Other income (loss): | ||||
Share of losses of equity method investments | (2,342,128) | (16,121,334) | (8,829,140) | (2,196,750) |
Impairment loss of long-term investments | (4,677,965) | (32,199,372) | ||
Gain from disposal of long-term investment | 232,450 | 1,600,000 | ||
Interest income, net of interest expenses | 568,624 | 3,913,950 | 3,572,711 | 4,136,454 |
Foreign currency exchange losses, net | (10,572) | (72,769) | (1,505,518) | (1,067,149) |
Total other income (loss), net | (6,229,591) | (42,879,525) | (6,761,947) | 872,555 |
Earnings before income taxes | 4,159,051 | 28,627,579 | 44,972,666 | 32,630,866 |
Income tax expense | 5,607,419 | 38,596,986 | 18,921,479 | 9,575,146 |
Net income (loss) | (1,448,368) | (9,969,407) | 26,051,187 | 23,055,720 |
Net loss attributable to non-controlling interests | (36,815) | (253,405) | ||
Net income (loss) attributable to ATA Inc. | (1,411,553) | (9,716,002) | 26,051,187 | 23,055,720 |
Net income (loss) | (1,448,368) | (9,969,407) | 26,051,187 | 23,055,720 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of nil income tax | 95,628 | 658,228 | 2,002,553 | (30,753) |
Unrealized loss on available-for-sale investment, net of nil income tax | (80,467) | (553,870) | ||
Total other comprehensive income(loss) | 15,161 | 104,358 | 2,002,553 | (30,753) |
Comprehensive income (loss) | (1,433,207) | (9,865,049) | 28,053,740 | 23,024,967 |
Comprehensive loss attributable to non-controlling interests | (36,815) | (253,405) | ||
Comprehensive income (loss) attributable to ATA Inc. | $ (1,396,392) | ¥ (9,611,644) | ¥ 28,053,740 | ¥ 23,024,967 |
Basic earnings (loss) per common share attributable to ATA Inc. (in CNY and dollars per share) | (per share) | $ (0.03) | ¥ (0.21) | ¥ 0.57 | ¥ 0.49 |
Diluted earnings (loss) per common share attributable to ATA Inc. (in CNY and dollars per share) | (per share) | $ (0.03) | ¥ (0.21) | ¥ 0.57 | ¥ 0.49 |
Consolidated Statement Of Compr
Consolidated Statement Of Comprehensive Income (loss) (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Comprehensive Income (loss) | |||
Income tax on foreign currency translation adjustment | ¥ 0 | ¥ 0 | ¥ 0 |
Income tax on unrealized loss on available-for-sale investment | ¥ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity | Common sharesUSD ($)shares | Common sharesCNY (¥)shares | Treasury SharesUSD ($) | Treasury SharesCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Accumulated other comprehensive lossUSD ($) | Accumulated other comprehensive lossCNY (¥) | Noncontrolling interestsUSD ($) | Noncontrolling interestsCNY (¥) | Retained earnings (Accumulated deficit)USD ($) | Retained earnings (Accumulated deficit)CNY (¥) | USD ($)shares | CNY (¥)shares |
Balance at Mar. 31, 2014 | ¥ 3,474,894 | ¥ (1,029,766) | ¥ 437,964,776 | ¥ (27,145,929) | ¥ (1,372,103) | ¥ 411,891,872 | ||||||||
Balance (in shares) at Mar. 31, 2014 | shares | 45,281,518 | 45,281,518 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income (loss) | 23,055,720 | 23,055,720 | ||||||||||||
Foreign currency translation adjustment, net of nil income tax | (30,753) | (30,753) | ||||||||||||
Share-based compensation (Note 13) | 2,983,072 | 4,128,244 | 7,111,316 | |||||||||||
Share-based compensation (Note 13) (in shares) | shares | 214,314 | 214,314 | ||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | ¥ 38,824 | (1,792,215) | 3,814,809 | 2,061,418 | ||||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) | shares | 577,064 | 577,064 | ||||||||||||
Repurchase of common shares (Note 14) | (8,362,136) | (8,362,136) | ||||||||||||
Repurchase of common shares (Note 14) (in shares) | shares | (612,314) | (612,314) | ||||||||||||
Special cash dividend (Note 15) | (58,405,029) | (58,405,029) | ||||||||||||
Balance at Mar. 31, 2015 | ¥ 3,513,718 | (8,201,045) | 387,502,800 | (27,176,682) | 21,683,617 | 377,322,408 | ||||||||
Balance (in shares) at Mar. 31, 2015 | shares | 45,460,582 | 45,460,582 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income (loss) | 26,051,187 | 26,051,187 | ||||||||||||
Foreign currency translation adjustment, net of nil income tax | 2,002,553 | 2,002,553 | ||||||||||||
Share-based compensation (Note 13) | 9,164,822 | 9,164,822 | ||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | ¥ 16,986 | (791,340) | (774,354) | |||||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) | shares | 273,766 | 273,766 | ||||||||||||
Repurchase of common shares (Note 14) | (19,536,028) | (19,536,028) | ||||||||||||
Balance at Mar. 31, 2016 | ¥ 3,530,704 | (27,737,073) | 395,876,282 | (25,174,129) | 47,734,804 | ¥ 394,230,588 | ||||||||
Balance (in shares) at Mar. 31, 2016 | shares | 45,734,348 | 45,734,348 | 45,734,348 | 45,734,348 | ||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Net income (loss) | ¥ (253,405) | (9,716,002) | $ (1,448,368) | ¥ (9,969,407) | ||||||||||
Foreign currency translation adjustment, net of nil income tax | 658,228 | 95,628 | 658,228 | |||||||||||
Unrealized loss on available-for-sale investment, net of nil income tax (Note 5) | (553,870) | (80,467) | (553,870) | |||||||||||
Share-based compensation (Note 13) | 6,958,403 | 6,958,403 | ||||||||||||
Issuance of common shares with net-settlement of employee individual income tax | ¥ 3,208 | (203,255) | (200,047) | |||||||||||
Issuance of common shares with net-settlement of employee individual income tax (in shares) | shares | 48,376 | 48,376 | ||||||||||||
Acquisition of non-controlling interests (Note 21) | 1,333,333 | 1,333,333 | ||||||||||||
Balance at Mar. 31, 2017 | $ 513,411 | ¥ 3,533,912 | $ (4,029,677) | ¥ (27,737,073) | $ 58,494,803 | ¥ 402,631,430 | $ (3,642,168) | ¥ (25,069,771) | $ 156,893 | ¥ 1,079,928 | $ 5,523,420 | ¥ 38,018,802 | $ 57,016,682 | ¥ 392,457,228 |
Balance (in shares) at Mar. 31, 2017 | shares | 45,782,724 | 45,782,724 | 45,782,724 | 45,782,724 |
Consolidated Statements Of Cha7
Consolidated Statements Of Changes in Equity (Parenthetical) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Changes in Equity | |||
Income tax on foreign currency translation adjustment | ¥ 0 | ¥ 0 | ¥ 0 |
Income tax on unrealized loss on available-for-sale investment | ¥ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (1,448,368) | ¥ (9,969,407) | ¥ 26,051,187 | ¥ 23,055,720 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Interest on restricted cash for financial standby letter of credit | (71,950) | (495,247) | ||
Gain from disposal of long-term investment (Note 5) | (232,450) | (1,600,000) | ||
Provision for (reversal of) doubtful accounts | 100,892 | 694,460 | (127,852) | 845,965 |
Impairment of intangible assets | 0 | 0 | 310,153 | |
Depreciation and amortization | 1,495,501 | 10,293,833 | 8,611,508 | 7,583,790 |
Loss (gain) from disposal of property and equipment | (2,061) | (14,186) | (54,955) | 734 |
Share-based compensation | 1,010,926 | 6,958,403 | 9,164,822 | 7,111,316 |
Deferred income tax expense (benefit) (Note 12) | 3,329,834 | 22,919,916 | 7,053,724 | (849,689) |
Share of losses of equity method investments | 2,342,128 | 16,121,334 | 8,829,140 | 2,196,750 |
Impairment loss of long-term investments | 4,677,965 | 32,199,372 | ||
Interest on convertible note (Note 5) | (82,566) | (568,320) | ||
Foreign currency exchange loss | 36,899 | 253,986 | 2,023,109 | 997,149 |
Changes in operating assets and liabilities, net of effect of acquisition: | ||||
Restricted cash | 2,700,000 | |||
Accounts receivable | (891,109) | (6,133,681) | (2,274,136) | 19,357,064 |
Prepaid expenses and other current assets | 219,166 | 1,508,565 | (1,129,761) | (893,856) |
Other assets | (35,617) | (245,162) | 29,514 | (7,574,162) |
Income tax payable | (442,287) | (3,044,352) | 7,244,175 | (11,258,806) |
Accrued expenses and other payables | (115,846) | (797,392) | 4,099,848 | (10,657,651) |
Deferred revenues | (949,761) | (6,537,396) | (5,015,552) | 12,927,758 |
Net cash provided by operating activities | 8,941,296 | 61,544,726 | 64,504,771 | 45,852,235 |
Cash flows from investing activities : | ||||
Cash paid for property and equipment | (466,385) | (3,210,222) | (3,086,987) | (14,836,069) |
Cash paid for education assessment test caseware | (976,536) | (6,721,698) | ||
Cash receipt from property and equipment disposal | 2,112 | 14,536 | 67,830 | 30,490 |
Proceeds from disposal of affiliates | 799,047 | 5,500,000 | ||
Proceeds from acquisition of subsidiary, less cash paid | 59,795 | 411,583 | ||
Cash paid for long-term investments | (13,067,440) | (89,945,800) | (23,782,307) | (37,953,864) |
Cash paid to shareholder (Note 17) | (10,000,000) | |||
Net cash used in investing activities | (13,649,407) | (93,951,601) | (36,801,464) | (52,759,443) |
Cash flows from financing activities : | ||||
Cash paid for employee individual income tax for net-settlement of vested shares | (29,063) | (200,047) | (774,354) | (853,404) |
Cash paid for repurchase of common shares | (19,536,028) | (8,362,136) | ||
Proceeds from exercise of share options | 3,903,952 | |||
Cash received from short-term loan | 501,170 | 3,449,650 | ||
Cash received from third party investors (Note 9) | 4,939,563 | 34,000,000 | ||
Restricted cash for financial standby letter of credit | (4,358,439) | (30,000,000) | ||
Special cash dividend | (58,349,122) | |||
Net cash (used in)/received from financing activities | 1,053,231 | 7,249,603 | (20,310,382) | (63,660,710) |
Effect of foreign exchange rate changes on cash | (9,015) | (62,052) | (20,559) | (1,083,809) |
Net increase (decrease) in cash | (3,663,895) | (25,219,324) | 7,372,366 | (71,651,727) |
Cash and cash equivalents at beginning of year | 35,981,482 | 247,667,737 | 240,295,371 | 311,947,098 |
Cash and cash equivalents at end of year | 32,317,587 | 222,448,413 | 247,667,737 | 240,295,371 |
Supplemental disclosures of cash flow information : | ||||
Cash paid for income tax | 2,870,186 | 19,756,064 | 14,308,992 | 23,104,750 |
Cash refunded for income tax | (150,314) | (1,034,642) | ¥ (9,685,409) | (1,421,109) |
Cash paid for interest expenses | $ 8,364 | ¥ 57,572 | ||
Non-cash investing and financing activities: | ||||
Acquisition of property and equipment included in accrued expenses and other payables | ¥ 146,126 |
DESCRIPTION OF BUSINESS, ORGANI
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | 12 Months Ended |
Mar. 31, 2017 | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | |
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS | (1) DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS Description of Business and Organization ATA Inc. (the “Company”), through its subsidiaries, ATA Testing Authority (Holdings) Limited (“ATA BVI”), Xing Wei Institute (Hong Kong) Limited (“Xing Wei”), ATA Testing Authority (Beijing) Limited (“ATA Testing”), ATA Learning Data & Technology (Beijing) Limited (“ATA Data”) (formerly known as Beijing JinDiXin Software Technology Limited (“Beijing JDX”)), ATA Learning (Beijing) Inc. (“ATA Learning”), Zhong Xiao Zhi Xing Education Technology (Beijing) Limited (“Zhongxiao Zhixing”), and ATA Online (Beijing) Education Technology Co., Ltd. (“ATA Online”) and Beijing Puhua Huitong Education Technology Co., Limited (“Puhua Technology”) (collectively, referred to as the “Group”), primarily provides computer-based testing services, online education services and other related services in the People’s Republic of China (the “PRC”). Prior to May 20, 2015, the Group had no legal ownership interest in ATA Online but had control over ATA Online through a series of contractual agreements as further described in Note (2)(w) below. In September 2016, the Company acquired 60% equity interest in Puhua Technology by injection of RMB 2.0 million in cash, as further described in Note (21). Significant Concentrations and Risks The Group is subject to the following significant concentration and risks: Country risk The Group is subject to special risks associated with the PRC. These include risks associated with, among others, the political, economic, legal and social environment in the PRC, including the relative difficulty of protecting and enforcing intellectual property rights in the PRC. The interpretation and application of current or proposed requirements and regulations may have an adverse effect on the Group’s business, financial condition and results of operations. In addition, the ability to negotiate and implement specific business development projects in a timely and favorable manner may be impacted by political considerations unrelated to or beyond the control of the Group. Although the PRC government has been pursuing economic reform policies for over three decades, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered. Any change in PRC government policies and regulations affecting the education and testing service industry may have a negative impact on the Group’s operating results and financial condition. Revenue concentration For the years ended March 31, 2015, 2016 and 2017, RMB 246.2 million, RMB 301.5 million and RMB 329.6 million, representing 70.3%, 72.3% and 69.8% of the Group’s net revenues, respectively, were generated from service fees from Chinese government controlled entities including governmental agencies, educational institutions and industry associations controlled by the PRC government. The demand for the Group’s products and services by these agencies, institutions and associations is affected by government budgetary cycles, funding availability and government policies. Funding reductions, reallocations or delays could adversely impact demand for the Group’s products and services or reduce the fees these customers are willing to pay for the Group’s products and services. Net revenues from customers that individually exceeded 10% of the Group’s net revenues are as follows: Year Ended March 31, 2015 2016 2017 RMB % RMB % RMB % The Chinese Institute of Certified Public Accountants % % % Asset Management Association of China — — % % China Banking Association % % % Securities Association of China % % — — Accounts receivable, net from customers, that individually exceeded 10% of the Group’s accounts receivable, net are as follows: March 31, 2016 2017 RMB % RMB % Asset Management Association of China % % The Chinese Institute of Certified Public Accountants % % Concentration of cash, cash equivalents and restricted cash balances held at financial institutions Cash, cash equivalents and restricted cash balances include deposits in: March 31, 2016 2017 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) — Denominated in U.S. Dollar (“USD”) Total cash, cash equivalents and restricted cash balances held at mainland PRC financial institutions Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB — — Denominated in Hong Kong Dollar — Denominated in USD — Denominated in Great Britain Pound — Total cash balances held at HKSAR financial institutions Total cash, cash equivalents and restricted cash balances held at financial institutions The bank deposits with financial institutions in the PRC are insured by the government authority up to RMB 500,000. The bank deposits with financial institutions in the HKSAR are insured by the government authority up to HK$ 500,000. To limit exposure to credit risk, the Company primarily places bank deposits with large financial institutions in the PRC and HKSAR with acceptable credit rating. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and, prior to May 20, 2015, its variable interest entity, or VIE for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests are separately presented as a component of equity in the consolidated financial statements. (b) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the fair values of share-based payments and available-for-sale investment, the collectability of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets, goodwill and long-term investments, and the expected licensing period for perpetual licenses with respect to revenue recognition. Actual results could differ from those estimates. (d) Foreign currency translation and risks The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “ Foreign currency exchange losses, net .” Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, the 2017 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD 1.00 = RMB 6.8832, the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 2017. No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 2017. (e) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. (f) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in an orderly transaction and principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. (g) Revenue recognition The Group’s revenues are principally derived from the provision of testing services and online education services. The Group recognizes revenues when all of the following have occurred: · persuasive evidence of an agreement with the customer exists; · services have been performed and/or delivery of goods has occurred; · the fees for services performed and/or price of goods sold are fixed or determinable; and · collectability of the fees and/or sales proceeds is reasonably assured. The application of the above criteria for revenue recognition for each type of service or product is as follows: i) Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) The Group derives online education revenues from online education services. The online training entitles end users to access online education services during a specified service period, which normally ranges between 90 to 360 days from activation. Online training revenue is recognized over the service period commencing at the point of time the user’s access to the online training is activated and ending at the point of time the user complete training hours. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. iii) a) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license that provide authorized test centers the right to use the Group’s brand name and e-testing platform. The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. b) Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. c) Test administration software products sales are recognized upon delivery and when collectability is reasonably assured. d) The Group recognized the revenue from operating lease on a straight-line basis over the lease term. iv) Revenue is recognized net of business tax at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. (h) Cost of revenues Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, payroll compensation, and other related costs, which are directly attributable to the rendering of services and delivery of goods. The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. The test monitoring costs and royalty fees for the years ended March 31, 2015, 2016 and 2017 are as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Test monitoring costs Royalty fees (i) Research and development costs Research and development costs primarily consist of software developed for internal use and software developed for sale. i) Software developed for internal use The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. (j) Operating lease The Group leases offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. There are no contingent rent in the lease agreements. The lease terms range between 12 and 58 months. The Company has no legal or contractual asset retirement obligations at the end of the lease term. (k) Income taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. (l) Share-based payment The Group measures the cost of employee share options and non-vested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and non-vested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested options, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. (m) Cash, cash equivalents, restricted cash and short term loan Cash and cash equivalents consist of cash in banks and highly liquid investments with original maturity less than three months. Restricted cash as of March 31, 2017 represents cash restricted as collateral for a short-term loan that ATA BVI has borrowed to support its business operations. On May 19, 2016, ATA BVI entered into a two-year Commercial Loan Facility (the “Facility”) with Industrial Bank Co., Ltd. Hong Kong Branch to borrow up to USD 4,000,000. ATA BVI shall pay interest at 2.5% per annum plus 3-month London Interbank Offer Rate (the “LIBOR”) on the commencement date for each drawdown. The Facility is fully secured by Standby Letter of Credit (“SBLC”) for an amount at RMB 30,000,000, which was recorded as restricted cash. The maturity date of each drawdown shall be twelve months after the first drawdown date but in any event no later than 5 business days prior to the expiration date of the corresponding SBLC unless otherwise extended by the bank in writing. In July 2016, ATA BVI borrowed RMB 3,449,650. In June 2017, the Group has fully repaid the drawdown and the interest thereon, and the SBLC was released in full. (n) Accounts receivable Accounts receivable are recognized at invoiced amounts, less an allowance for uncollectible accounts, if any. The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. (o) Long-term investments Equity method investments The Group applies the equity method to account for an equity interest in an investee over which the Group has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of income (losses) of equity method investments in the consolidated statements of comprehensive income (loss). The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other-than-temporary. The process of assessing and determining whether impairment on an investment is other-than-temporary requires a significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. Cost method investments For equity investments in an investee that are not considered debt securities or equity securities that have readily determinable fair values and over which the Group neither has significant influence nor control, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee’s earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. The fair value of a cost method investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. No events or circumstances indicating a potential impairment were identified as of or for the year ended March 31, 2017. The Company determines that it is not practicable to estimate fair value of cost method investments as of March 31, 2017, because the sales prices or bid-and-asked quotations of the equity interests of these entities are not currently available and the cost of obtaining an independent valuation appears excessive considering the materiality of the investments to the Company. Available-for-sale investment The Group’s investment in convertible notes are classified as available-for-sale investments which are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. An impairment loss on the available-for-sale investment is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. (p) Property and equipment, net Property and equipment is stated at historical cost. Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. (q) Intangible assets Intangible assets acquired are initially recognized and measured at fair value. Intangible assets are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. The Group has no intangible assets with indefinite useful lives. (r) Impairment of long-lived assets, excluding goodwill Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Group recognized an impairment loss of intangible assets of RMB 310,153, RMB nil and RMB nil for the years ended March 31, 2015, 2016 and 2017, respectively. (s) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually based on its identified reporting units, which are defined as reportable segments or groupings of businesses one level below the reportable segment level. The Group performs a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. Annual impairment review at March 31, and when a triggering event occurs between annual impairment tests was conducted over goodwill. No impairment loss of goodwill was recorded for any of the periods presented. (t) Employee benefit plans As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. Employee benefit expenses recognized under these plans for the years ended March 31, 2015, 2016 and 2017 are allocated to the following expense items: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans (u) Earnings per share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s non-vested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. (v) Segment reporting The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. (w) Variable interest entity (“VIE”) PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its foreign subsidiaries are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. Prior to July 2015, ATA Online had an ICP license for the provision of ICP services in the PRC. However, no ICP services were provided by ATA Online for all periods presented. Prior to May 20, 2015, the Group had no legal ownership interest in ATA Online but had control over ATA Online through a series of contractual agreements as further described below. Prior to April 2015, the legal ownership interests of ATA Online were held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director. In April 2015, Mr. Walter Lin Wang transferred all of his equity in ATA Online to Mr. Haichang Xiong, the Company’s general counsel. In May 2015, the Company decided to list ATA Online on the National Equities Exchange and Quotations System in the PRC. In preparation for the listing of ATA Online in the PRC, the contractual arrangements were terminated and the entire equity interests of ATA Online were transferred from Mr. Kevin Xiaofeng Ma and Mr. Haichang Xiong (the nominee shareholders) to ATA Learning and Zhongxiao Zhixing on May 20, 2015 at the consideration of RMB 10.0 million determined based on the registered capital of ATA Online. As a result, ATA Online became a wholly equity-owned subsidiary of the Company. The consideration was paid to the nominee shareholders. Mr. Haichang Xiong transferred his consideration of RMB 1.0 million to Mr. Kevin Xiaofeng Ma on March 29, 2016. The Group received RMB 10.0 million in cash from Mr. Kevin Xiaofeng on June 7, 2017. Further, ATA Online has de-registered its ICP license in July 2015 to be in compliance with PRC regulations. VIE contractual agreements A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. These contractual agreements were terminated in May 2015 as aforementioned. The following is a description of the impact of the VIE Agreements on the Group’s consolidated financial statements for reporting periods prior to May 2015. ATA Online was determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang were the equity holders of ATA Online, (i) their equity investment of RMB 10.0 million in ATA Online was financed by the Group and (ii) they did not participate in any profit or loss of ATA Online. Although the Company did not have an equity investment in ATA Online, the Company had other variable interests in ATA Online through, among others, (i) the Company’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Company’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Company’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Company had the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. Through the VIE Agreements, the Company had a controlling financial interest in ATA Online because the Company had (i) the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online ( refer to the “Power of attorney agreement”); and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online(refer to the “Call option and cooperation agreement”). The termination of the VIE Agreements and the transfer of equity interests of ATA Online from the nominee shareholders to the Group had no impact on the Group’s controlling financial interest in ATA Online. Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements for the years ended March 31, 2015, 2016 and 2017. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, no non-controlling interest in ATA Online is presented in the Company’s consolidated financial statements. The key terms of these VIE Agreements were as follows: Loan agreements: ATA BVI lent to ATA Online’s equity holders, |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Mar. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET | |
ACCOUNTS RECEIVABLE, NET | (3) ACCOUNTS RECEIVABLE, NET Accounts receivable, net is summarized as follows: March 31, 2016 2017 RMB RMB Accounts receivable Less: allowance for doubtful accounts ) ) Accounts receivable, net Management performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral on accounts receivable.The activity in the allowance for doubtful accounts for accounts receivable for the years ended March 31, 2015, 2016 and 2017 is as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Beginning allowance for doubtful accounts Additions charged to (reversal of) provision for doubtful accounts ) Write-off of accounts receivable ) — — Ending allowance for doubtful accounts |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Mar. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | (4) PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: March 31, 2016 2017 RMB RMB Advances to employees Other current assets Total prepaid expenses and other current assets |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Mar. 31, 2017 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | (5) LONG-TERM INVESTMENTS Long-term investments consist of the following: March 31, 2016 2017 RMB RMB Equity method investments Cost method investments — Available-for-sale investment Total long-term investments Equity method investments March 31, 2016 2017 RMB RMB Beijing Zhishang Education Technology Ltd. Master Mind Education Company — Beijing Satech Internet Educational Technology Ltd. — Brilent Inc. Total equity method investments In August 2014, ATA Online made a 45% equity interest investment to establish Beijing Zhishang Education Technology Ltd. (“Zhishang”), an online professional training provider based in PRC, by paying cash of RMB 13,500,000. The other shareholder of Zhishang is New Oriental Education & Technology Group. ATA online accounted for the investment under equity method. ATA online recognized its share of loss from this equity investment of RMB 1,103,275, RMB 4,694,972 and RMB 4,961,519 for the years ended March 31, 2015, 2016 and 2017, respectively. In December 2014, the Group made a 33% equity interest investment in Master Mind Education Company (“Master Mind”), a digital service provider for K-12 after-school tutoring institute based in the PRC, by paying cash of RMB 18,453,864 in December 2014, and RMB 12,302,000 in June 2015. The Company accounted for its 33% equity interest in Master Mind under the equity method. The Company recognized its share of loss from this equity investment of RMB 882,809, RMB 2,314,074 and RMB 5,230,027 for the years ended March 31, 2015, 2016 and 2017, respectively. In January 2015, the Group made a 20% equity interest investment in Beijing Satech Internet Educational Technology Ltd. (“Satech”), an online SAT learning platform provider based in the PRC, by paying cash of RMB 6,000,000. In April, 2016, the Company acquired additional 10.78% equity interest of Satech at cash consideration of RMB 8,466,660. After the additional investment, the company has invested a total of RMB 14,466,660 in Satech and accounted for its 30.78% equity interest under equity method. The Company recognized its share of loss from this equity investment of RMB 210,666, RMB 1,269,187 and RMB 3,091,954 for the years ended March 31, 2015, 2016 and 2017, respectively. In September 2015, ATA BVI entered into an agreement to purchase 2,156,721 Series AA Preferred Shares issued by Brilent Inc. (“Brilent”) at a price of $0.6955 per Series AA Preferred Shares with a total consideration of USD1.5 million. Brilent is a service provider with an easy to use SaaS (Software as a Service) based in the United States. ATA BVI held 15.47% equity interest of Brilent and one board seat out of six as of March 31, 2016. The investment is accounted for under the equity method as ATA BVI is able to exercise significant influence through its board seat. The Company recognized its share of loss from this equity investment of RMB 550,907 and RMB 2,837,834 for the years ended March 31, 2016 and 2017, respectively. Management evaluated whether there was an other than temporary impairment based on the facts, including recent financing activities, projected and historical financial performance, and considered there was no other than temporary impairment on equity method investments except for Master Mind and Satech. Master Mind and Satech failed to meet the expected milestones and operation forecasts and encountered shortage of working capital resulted from continuous negative operating cash flows. Therefore, management considered that there were other than temporary impairments of the two investments and recorded impairment losses of RMB 22,304,520 and RMB 9,894,852 respectively at March 31, 2017. The summarized financial information of the equity method investments were as follows: Zhishang March 31, 2016 2017 RMB RMB Current assets Non-current assets Current liabilities Non-controlling interests — Net assets attributable to Zhishang’s shareholders Master Mind Satech March 31, March 31, 2016 2017 2016 2017 RMB RMB RMB RMB Current assets Non-current assets Current liabilities Equity — ) ) Zhishang Year ended March 31, 2015 2016 2017 RMB RMB RMB Net revenue — Cost and operating expenses Loss before income taxes ) ) ) Net loss ) ) ) Net loss attributable to Zhishang’s shareholders ) ) ) Master Mind Satech Year ended March 31, Year ended March 31, 2015 2016 2017 2015 2016 2017 RMB RMB RMB RMB RMB RMB Net revenue — Cost and operating expenses Loss before income taxes ) ) ) ) ) ) Net loss ) ) ) ) ) ) Cost method investments March 31, 2016 2017 RMB RMB Beijing Empower Education Online Co., Ltd. — Medicine (Beijing) Education Technology Ltd. — ApplySquare Education & Technology Co., Ltd. — Beijing GlobalWisdom Information Technology Co., Ltd. — Total cost method investments — During the year ended March 31, 2017, the Group entered into shares purchase agreements to acquire 8.33% equity interest of Beijing Empower Education Online Co., Ltd. (“EEO”), 15% equity interest of Medicine (Beijing) Education Technology Ltd. (“MDS”), 9% equity interest of ApplySquare Education & Technology Co., Ltd (“ApplySquare”), and 8.2% equity interest of Beijing GlobalWisdom Information Technology Co., Ltd. (“GlobalWisdom”), by paying cash consideration of RMB 32,500,000, RMB 9,000,000, USD 3,000,000 (equivalent to RMB 19,721,700), and RMB 12,300,000 respectively. As of March 31, 2017, the Group has paid all the cash considerations. Because these investment terms contain substantive liquidation preference over common stock that are not available to common shareholders, these investments are not substantially similar to common stock. In addition, the Group determined that it was not practicable to estimate fair value of cost method investments as of March 31, 2017, because the sales prices or bid-and-asked quotations of the equity interests of these entities are not currently available and the cost of obtaining an independent valuation appears excessive considering the materiality of the investments to the Group. The Group recognized the cost of these investments at cash consideration and accounts for the investment by the cost method in accordance with ASC 325: Investments-Other . In December 2016, the Company sold 6.5% of the equity interest in MDS for RMB 5,500,000 in cash, and recognized gain from disposal of long-term investment of RMB 1,600,000. Available-for-sale investment On March 24, 2016, ATA BVI entered into a convertible promissory note (“the Notes”) purchase agreement with Brilent pursuant to which Brilent will issue up to USD 2,500,000 of the Notes to certain investors including ATA BVI. On March 30, 2016 and April 28, 2016, Brilent issued the Notes to ATA BVI in the principal amount of USD 300,000 and USD 1,200,000 at a 6% interest rate per annum, in exchange for cash of USD 1,500,000. The Notes are due and redeemable 24 months from issuance. If a qualified financing occurs on or prior to the maturity date of the Notes, the Notes and all accrued and unpaid interest thereon shall convert, at ATA BVI’s option, into qualified financing securities at 75% of the qualified financing security purchase price subject to certain adjustment. The Company determined the fair value of the Notes as of March 31, 2017 to be USD 1,504,000 (RMB 10,376,547). For the year ended March 31, 2017, RMB 568,320 was recognized as interest income in consolidated statements of comprehensive income (loss). The investment is classified as available-for-sale investment and is measured at fair value as of the balance sheet date. Unrealized holding loss of RMB 553,870 was reported in other comprehensive income (loss) for the year ended March 31, 2017. Foreign Aggregate Unrealized currency Aggregate cost Interest holding translation fair basis income loss adjustment value RMB RMB RMB RMB RMB Convertible note ) |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | (6) FAIR VALUE MEASUREMENT The following tables present the placement in the fair value hierarchy of assets that are measured at fair value on a recurring basis at March 31, 2017: Fair value disclosure or measurement at March 31, 2017 Level 1 Level 2 Level 3 RMB RMB RMB RMB Available-for-sale investment Convertible note — — To estimate the fair value of the Notes, the Group used the Cox, Ross and Rubinstein Binomial Model (“Binomial-Model”), which is based on the fair value of the entire invested capital of Brilent evaluated by an income approach. The significant inputs for the valuation model included the following: Year Ended March 31, 2017 Total fair value of underlying asset as at valuation date USD 12,000,000 Risk free rate of interest For the March 30, 2016 Note For the April 28, 2016 Note Maturity Date For the March 30, 2016 Note 2018/3/30 For the April 28, 2016 Note 2018/4/28 Volatility For the March 30, 2016 Note For the April 28, 2016 Note The fair value of the underlying asset has been determined using income approach including discounted cash flow model and unobservable inputs including assumptions of projected revenue, expenses, capital spending, other costs and a discount rate of 26% by using the weighted average cost of capital method. Risk free rate of interest adopted for the valuation were estimated based on the U.S. daily treasury yield as at valuation date with term similar to the expected term of the Notes. Maturity date is the time to maturity of the Notes according to the investment agreement. The expected equity volatility were estimated based on the annualized standard deviation of the daily return embedded in the historical stock price of comparable companies with a time horizon close to the expected term determined based on the maturity date. The following table presents a roll-forward of the fair value of Level 3 (significant unobservable inputs) asset for the year ended March 31, 2017, which only contains available-for-sale investment: Convertible note RMB Beginning balance as of April 1, 2016 Purchase Total gain or losses: Included in net income (loss) Included in other comprehensive income (loss) ) Foreign currency translation adjustment Ending balance as of March 31, 2017 The Group did not have any nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis as of March 31, 2016 and 2017, respectively. The Group’s financial instruments consist of cash and cash equivalents, accounts receivable, advances to third parties, employees and suppliers, which are included in the prepaid expenses and other current assets, restricted cash, short-term loan and accrued expenses and other payables, all of which have a carrying amount that approximate fair value because of the short maturity of these instruments. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | (7) PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: March 31, 2016 2017 RMB RMB Building Computer equipment Furniture, fixtures and office equipment Software Motor vehicles Leasehold improvements Less: accumulated depreciation and amortization ) ) Property and equipment, net Total depreciation expense recognized for the years ended March 31, 2015, 2016 and 2017 is allocated to the following expense items: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total depreciation expense |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Mar. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
GOODWILL AND INTANGIBLE ASSETS, NET | (8) GOODWILL AND INTANGIBLE ASSETS, NET (a) Goodwill The change in the carrying amount of goodwill is as follows: RMB Balance as of April 1, 2015 and 2016 Acquisition of Puhua Technology (Note 21) Balance as of March 31, 2017 (b) Intangible assets The following table summarizes the Company’s intangible assets, as of March 31, 2016 and 2017. March 31, 2016 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Total intangible assets ) — March 31, 2017 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Royalty arrangement (i) ) — 5 Education assessment test caseware (ii) ) — 5 Total intangible assets ) — Amortization expenses for intangible assets recognized as cost of revenues were RMB 192,873, RMB 192,874 and RMB 1,601,740 for the years ended March 31, 2015, 2016 and 2017, respectively. (i) Royalty arrangement represents the exclusive right the Group authorized to launch the online education services for banks registered under and supervised by China Banking Association for five years. (ii) Education assessment test caseware is the test content purchased for the Company’s strategic K-12 academic assessment business, which includes three subjects of Literature, Mathematics and English over six grades of junior and senior high school. As of March 31, 2017, the estimated amortization expense for the next five years is as follows: March 31 RMB 2018 2019 2020 2021 2022 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Mar. 31, 2017 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
ACCRUED EXPENSES AND OTHER PAYABLES | (9) ACCRUED EXPENSES AND OTHER PAYABLES Accrued expenses and other payables consist of the following: March 31, 2016 2017 RMB RMB Value-added tax and other taxes payable Accrued payroll and welfare Accrued test monitoring fees Royalty fees payable Income taxes payable — Other current liabilities Total accrued expenses and other payables Other current liabilities as of March 31, 2016 and 2017 mainly include accrued traveling expenses, rental expenses, meeting expense and other operating expenses. The balance as of March 31, 2017 also includes an investment prepayment of RMB 34,000,000 made to ATA Data by two third party investors, for the acquisition of 20% equity shares of ATA Data pursuant to the investment agreement signed on February 23, 2017. As of March 31, 2017, the closing terms have not been completed in accordance with relevant legal rules in PRC. Therefore, the amount was recognized as a liability as of March 31, 2017. |
DEFERRED REVENUES
DEFERRED REVENUES | 12 Months Ended |
Mar. 31, 2017 | |
DEFERRED REVENUES | |
DEFERRED REVENUES | (10) DEFERRED REVENUES Deferred revenues consist of the following: March 31, 2016 2017 RMB RMB Testing service Online education services Other revenue — licensing fees from authorized test centers Other revenue — others Total deferred revenues Representing: Current deferred revenues Non-current deferred revenues |
NET REVENUES
NET REVENUES | 12 Months Ended |
Mar. 31, 2017 | |
NET REVENUES | |
NET REVENUES | (11) NET REVENUES The components of net revenues for the years ended March 31, 2015, 2016 and 2017 are as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Testing services Online education services Other revenue Net revenues Other revenue primarily includes licensing fees from authorized test centers, test development services, test certificate services, test administration software product sales and operating lease income. The net revenues from product sales are RMB 1,252,673, RMB 490,152 and RMB 570,576 for the years ended March 31, 2015, 2016 and 2017, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES | |
INCOME TAXES | (12) INCOME TAXES Cayman Islands and British Virgin Islands Under the current laws of the Cayman Islands and the British Virgin Islands, the Group is not subject to any income tax in these jurisdictions. Hong Kong Xing Wei did not derive any income that is subject to Hong Kong profits tax for the taxable years ended March 31, 2015, 2016 and 2017. Accordingly, no provision for Hong Kong profits tax was required. The payment of dividends by Hong Kong companies is not subject to any Hong Kong withholding tax. People’s Republic of China The Company’s consolidated PRC entities file separate income tax returns. Under the Enterprise Income Tax Law (“EIT Law”), the statutory income tax rate is 25% effective from January 1, 2008. Entities that qualify as “high-and-new technology enterprises eligible for key support from the State” (“HNTE”) are entitled to a preferential income tax rate of 15%. The Company’s PRC entities are subject to income tax at 25%, unless otherwise specified. In December 2008, ATA Testing received approval from the tax authority that it qualified as an HNTE. The certificate entitled ATA Testing to the preferential income tax rate of 15% effective retroactively from January 1, 2008 to December 31, 2010. In October 2011, ATA Testing received approval from the tax authority on its renewal as an HNTE which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2011 to December 31, 2013. In October 2014, ATA Testing received approval from the tax authority on its renewal as an HNTE which entitled it to the preferential income tax rate of 15% effective retroactively from January 1, 2014 to December 31, 2016. ATA Testing is currently in the process of renewing its HNTE certificate for another three years. Upon successful renewal, ATA Testing would be entitled to a preferential tax rate of 15% retroactively from January 1, 2017. In December 2009, ATA Learning, ATA Online and ATA Data received approvals from the tax authorities that they qualified as HNTEs. The certificates entitled them to the preferential income tax rate of 15% effectively retroactively from January 1, 2009 to December 31, 2011. In May and July 2012, ATA Learning, ATA Online and ATA Data received approvals from the tax authorities on its renewals as HNTEs which entitled them to the preferential income tax rate of 15% effective retroactively from January 1, 2012 to December 31, 2014. In November 2015, ATA Learning, ATA Online and ATA Data received approvals from the tax authorities on its renewals as HNTEs which entitled them to the preferential income tax rate of 15% effective retroactively from January 1, 2015 to December 31, 2017. The applicable income tax rate for ATA Learning, ATA Online and ATA Data from January 1, 2018 onward will be 25% unless they can re-qualify as HNTE. Zhongxiao Zhixing, a PRC subsidiary of Xing Wei, is subject to an income tax rate of 25%. Puhua Technology, a PRC subsidiary of ATA Online, is subject to an income tax rate of 25% The EIT Law and its relevant regulations impose a withholding tax at 10%, unless reduced by a tax treaty or agreement, for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC for earnings generated beginning on January 1, 2008. Undistributed earnings generated prior to January 1, 2008 are exempt from withholding tax. As of March 31, 2017, the Company has accrued withholding tax of RMB 22,620,872 on undistributed earnings of RMB 226,208,715 generated by its PRC consolidated entities since January 1, 2008 as the Company has changed its plan with respect to distribution of earnings from its PRC subsidiaries and does not believe the indefinite reinvestment exception for not recognizing deferred tax liability is met. The deferred income tax liability recognized related to these earnings was RMB 22,620,872 as of March 31, 2017. The unrecognized defferred income tax liability as of March 31, 2016 was RMB 17,856,205. The earnings before income taxes were generated in the following jurisdictions: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cayman Islands and British Virgin Islands ) ) ) PRC Hong Kong ) ) Earnings before income taxes Income tax expense (benefit) recognized in the consolidated statements of comprehensive income consists of the following: Year Ended March 31, 2015 2016 2017 RMB RMB RMB PRC Current expense Deferred expense (benefit) ) Total income tax expense The actual income tax expense reported in the consolidated statements of comprehensive income differs from the respective amount computed by applying the PRC statutory income tax rate of 25% for each of the years ended March 31, 2015, 2016 and 2017 to earnings before income taxes due to the following: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Computed “expected” income tax expense Increase in valuation allowance Preferential income tax rate ) ) ) Entities not subject to income tax Non-deductible expenses Entertainment Share-based compensation Bad debt loss ) Tax rate differential ) — Additional deduction of research and development costs ) ) ) Withholding tax related to undistributed earnings — — Other Actual income tax expense The applicable PRC statutory tax rate is used since the Group’s taxable income is generated in the PRC. The tax effects of the Group’s temporary differences that give rise to significant portions of the deferred income tax assets and liabilities are as follows: March 31, 2016 2017 RMB RMB Deferred income tax assets: Tax loss carryforwards Share of losses of equity method investments Impairment loss of long-term investments — Property and equipment, net Accrued expenses and other payables Total gross deferred income tax assets Less: valuation allowance ) ) Total deferred income tax assets, net Deferred income tax liabilities: Customer relationships Training platform Withholding tax related to distributable earnings — Total gross deferred income tax liabilities Net deferred income tax assets Net deferred income tax liabilities — The movements of the valuation allowance are as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Balance at the beginning of the year Additions Balance at the end of the year As of March 31, 2017, the valuation allowance of RMB 41,179,348 was related to the deferred income tax assets of PRC entities which were in loss position. As of March 31, 2017, management believes it is more likely than not that the Group will realize the deferred income tax assets, net of the valuation allowance. The amount of the deferred income tax assets, however, considered realizable as of March 31, 2017 could be reduced in the near term if estimates of future taxable income are reduced. As of March 31, 2017, the Group had tax loss carry forwards for PRC income tax purpose of RMB 120,772,769 of which RMB 4,996,057, RMB 5,438,101, RMB 41,458,162, RMB 43,372,847 and RMB 25,507,602 will expire if unused by December 31, 2018, 2019, 2020, 2021 and 2022, respectively. For the years ended March 31, 2015, 2016 and 2017, the Group had no unrecognized tax benefits, and thus no related interest and penalties were recorded. Also, the Group does not expect that the amount of unrecognized tax benefits will significantly increase within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitation is three years if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent. The statute of limitation is extended to five years under special circumstances where the underpayment of taxes is more than RMB 100,000. In the case of transfer pricing issues, the statute of limitation is ten years. There is no statute of limitation in the case of tax evasion. The income tax return of each of the Company’s PRC consolidated entities is subject to examination by the relevant tax authorities for the calendar tax years beginning in 2012. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Mar. 31, 2017 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | (13) SHARE BASED COMPENSATION 2005 Share incentive plan In April 2005, the Company adopted a share incentive plan (the “2005 Plan”), pursuant to which the Company is authorized to issue options to officers, employees, directors and consultants of the Group to purchase up to 2,894,000 of its common shares. In October 2007, the Company’s board of directors approved an increase in the number of shares reserved for issuance under the 2005 Plan to 3,310,300 shares. The 2005 Plan expired in April 2015. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2005 Plan). 2008 Share incentive plan On January 7, 2008, the Company adopted a share incentive plan (the “2008 Plan”), pursuant to which the Company is authorized to issue options and other share-based awards to officers, employees, directors and consultants of the Group to purchase up to 336,307 of its common shares, plus, unless the board of directors determines a lesser amount, an annual increase on January 1 of each calendar year beginning in 2009 equal to the lesser of 1) one percent of the number of shares issued and outstanding on December 31 of the immediately preceding calendar year, and 2) 336,307 shares (the “replenish terms”). The 2008 Plan expires in ten years. Options awards provide for accelerated vesting if there is a change in control (as defined in the 2008 Plan). On December 30, 2016, the Company amended the 2008 Plan to increase the number of Common Shares of the Company reserved for issuance to 5,726,763 shares and extend the plan together with the replenish terms for ten years from December 30, 2016. As of March 31, 2017, 6,063,070 shares were reserved for issuance under the 2008 Plan. Under both the 2005 Plan and 2008 Plan, share options are generally granted with 25% vesting on the first anniversary of the grant date and the remaining 75% vesting ratably over the following 36 months, unless a shorter or longer duration is established at the time of the option grant. Share options are granted at an exercise price equal to the fair market value of the Company’s share at the date of grant and expire 10 years from the grant date. Under the 2008 Plan, non-vested shares are granted with a graded vesting as to 25% at the end of each year from the grant date over 4 years. For the graded vesting share options and non-vested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. In October 2013, 1,469,460 share options were granted to an officer, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vesting evenly over the following three years. The exercise price of these options is USD2.50 per common share. In October 2014, the remaining 75% share options were forfeited upon the officer’s resignation. The expense of RMB 4,014,513 related to the unvested share options recognized previously was reversed. In February 2015, 1,469,460 share options were granted to an officer, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vest evenly over the following three years. The exercise price of these options is USD2.24 per common share. In February 2015, 100,000 and 114,314 common shares of the Company were granted to two officers respectively, using the Company’s treasury shares. These common shares were immediately vested on grant date. The fair value of the common shares on the grant date of RMB 2,831,396 was recognized as “general and administrative expense” for the year ended March 31, 2015. The difference between the cost of the treasury shares repurchased of RMB 2,983,072 and the fair value of the common shares on grant date of RMB 151,676 was recognized as a reduction of additional paid-in capital. In April 2015, the Company extended the exercise period of vested share options of certain employees for an additional six months. The modification resulted in additional compensation expense of RMB 1,635,726 for the year ended March 31, 2016. All of these share options were expired without any exercise as of March 31, 2016. In January 2017, 2,700,000 non-vested shares were granted to Company’s employees and officers with a graded vesting as to 25% at the end of each year from the grant date over 4 years and 900,000 share options were granted to Company’s employees and officers, 25% of the options vest on the first anniversary of the grant date with the remaining 75% vesting evenly over the following 36 months. The exercise price of these options is USD 1.705 per common share. A summary of the shares options activities for the years ended March 31, 2015, 2016 and 2017 is presented below: Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2014 Granted Exercised ) Forfeited ) Expired ) Outstanding as of March 31, 2015 Granted — — Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2016 Granted Exercised — — Forfeited ) Expired ) Outstanding as of March 31, 2017 Vested and expected to vest as of March 31, 2017 Exercisable as of March 31, 2017 — The aggregate intrinsic value of options outstanding and exercisable at March 31, 2017, was determined based on the closing price of the Company’s common shares on March 31, 2017. The total intrinsic value of options exercised during the years ended March 31, 2016 and 2017 was nil and nil respectively. Information relating to options outstanding and exercisable as of March 31, 2017 is as follows: Options outstanding as of March 31, 2017 Options exercisable as of March 31, 2017 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years — — — The Company calculated the fair value of the share options on the grant or the modification date, for the years ended March 31, 2015, 2016 and 2017, using the Black-Scholes-Merton pricing valuation model. The assumptions used in the valuation model are summarized as follows: Year Ended March 31, 2015 2016 2017 Expected dividend yield Expected volatility Expected term Risk-free interest rate (per annum) The expected volatility was based on the historical volatilities of the Company. The expected term was related to the period of time the options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the United States treasury yield curve in effect at the time of grant or modification. Compensation expense for share options of RMB 984,595, RMB 8,040,512 and RMB 4,079,082 was recognized for the years ended March 31, 2015, 2016 and 2017. As of March 31, 2017, RMB 7,429,354 of total unrecognized compensation expense related to non-vested share options is expected to be recognized over a weighted average period of approximately 3.1 years. Non-vested shares A summary of the non-vested shares activities for the years ended March 31, 2015, 2016 and 2017 is presented below: Weighted Number grant date of shares fair value USD Outstanding at March 31, 2014 Granted — — Vested ) Forfeited ) Outstanding at March 31, 2015 Granted — — Vested ) Forfeited — — Outstanding at March 31, 2016 Granted Vested ) Forfeited ) Outstanding at March 31, 2017 The total fair value of shares vested during the years ended March 31, 2015, 2016 and 2017, was USD 821,250, USD 831,375 and USD 157,176 respectively. Upon the vesting of the non-vested shares, the Company withholds the shares issued to the employees to meet the relevant minimum tax withholding requirements. For the years ended March 31, 2015, 2016 and 2017, the Company withheld 54,000, 51,234 and 11,624 vested shares upon the vesting of the non-vested shares to satisfactory the minimum tax withholding obligation compensation expense recognized for non-vested shares for the years ended March 31, 2015, 2016 and 2017 is allocated to the following expense items: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total share based compensation expense As of March 31, 2017, RMB 27,417,420 of total unrecognized compensation expense related to non-vested shares is expected to be recognized over a weighted average period of approximately 3.8 years. |
COMMON SHARES
COMMON SHARES | 12 Months Ended |
Mar. 31, 2017 | |
COMMON SHARES | |
COMMON SHARES | (14) COMMON SHARES The Company’s board of directors approved a share repurchase program on November 1, 2012 to repurchase up to USD 5.0 million worth of its issued and outstanding American Depository Shares (“ADS”) in both open-market and privately negotiated transactions. On January 31, 2013, the Company’s board of director reviewed and approved the continuation of the share repurchase program through May 31, 2013. The Company’s board of directors approved a share repurchase program on August 5, 2014 to repurchase up to USD 5.0 million worth of its issued and outstanding ADSs in open-market through January 31, 2015. The Company’s board of directors approved a share repurchase program on September 24, 2015 to repurchase up to USD 3.0 million worth of its issued and outstanding ADSs in open-market through March 31, 2016. For the years ended March 31, 2015, 2016 and 2017, the Company repurchased 612,314, 1,134,264 and nil common shares at a repurchase price of RMB 8,362,136, RMB 19,536,028 and RMB nil, respectively. |
CASH DIVIDENDS
CASH DIVIDENDS | 12 Months Ended |
Mar. 31, 2017 | |
CASH DIVIDENDS | |
CASH DIVIDENDS | (15) CASH DIVIDENDS On May 30, 2014, the Company’s board of directors declared a special cash dividend of USD 0.205 per common share, or USD 0.41 per ADS. The total amount of dividend was USD 9.5 million (RMB 58,349,122) and was paid in cash in July 2014. |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Mar. 31, 2017 | |
STATUTORY RESERVES | |
STATUTORY RESERVES | (16) STATUTORY RESERVES In accordance with the relevant laws and regulations of the PRC, the Company’s PRC consolidated entities are required to transfer 10% of their respective after tax profit, as determined in accordance with PRC accounting standards and regulations to a general reserve fund until the balance of the fund reaches 50% of the registered capital of the respective entity. The transfer to this general reserve fund must be made before distribution of dividends can be made. As of March 31, 2016 and 2017, the PRC consolidated entities had appropriated RMB 36,431,792 and RMB 55,164,065, respectively, to the general reserve fund, which is restricted for distribution to the Company. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Mar. 31, 2017 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | (17) RELATED PARTY TRANSACTIONS (a) Receivable due from shareholder In May 2015, the Group terminated the VIE agreements with the nominee shareholders. The entire equity interests of ATA Online were transferred from the nominee shareholders to ATA Learning and Zhongxiao Zhixing for a consideration of RMB 10.0 million, equaling to the amount of the registered capital of ATA Online. As a result, ATA Online became a wholly owned subsidiary of the Group. The consideration was paid to the nominee shareholders. Mr. Haichang Xiong, has transferred his consideration of RMB 1.0 million to Mr. Kevin Xiaofeng Ma on March 29, 2016. The Group received RMB 10.0 million in cash from Mr. Kevin Xiaofeng on June 7, 2017. (b) Sublease of Jianwai SOHO office to Master Mind ATA Testing subleased its Jianwai SOHO office to Master Mind, an equity method accounted investee, for a monthly rent of RMB 54,678, from May 17, 2015 to May 16, 2020. The Group recognized the sublease income of RMB 575,483 and RMB 650,478 for the years ended March 31, 2016 and 2017. ATA Testing received advanced rental fee of RMB nil and RMB 103,655 as of March 31, 2016 and 2017 respectively, and recorded the amount in deferred revenues. ATA Testing received a rent deposit of RMB 115,097 from Master Mind for the sublease and recorded the amount in accrued expenses and other payables as of March 31, 2016 and 2017. (c) Acquisition of Puhua Technology On August 31, 2016, ATA Online entered into an agreement to make a 60% equity investment in Puhua Technology with a total cash consideration of RMB 2.0 million. The director of Puhua Technology was a director of ATA learning, who resigned from ATA learning in July 2016. Please refer to Note (21). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | (18) COMMITMENTS AND CONTINGENCIES (a) Lease commitments The Group entered into non-cancelable operating leases, primarily for office space, for initial terms of 12 to 58 months. Minimum rent payments under operating leases are recognized on a straight-line basis over the term of the lease, including any periods of free rent. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of March 31, 2017 are: Minimum Lease Payments RMB Year ended March 31: 2018 2019 2020 2021 2022 — Rental expense for operating leases (except leases with a term of one month or less that are not renewed) for the years ended March 31, 2015, 2016 and 2017 were RMB 14,096,009, RMB 12,803,338 and RMB 13,206,748 respectively. (b) Purchase commitments On August, 11, 2011, the Group entered into an agreement with a vender granting the Group a license to distribute the vendor’s test related products in Mainland China for 10 years. Each party may terminate this agreement at any time for any reason by giving the other party not less than twelve months written notice subject only that the earliest termination date may not be before the fifth anniversary of this agreement unless either party is in breach of this agreement. The future minimum payments under the non-cancelable purchase agreement as of March 31, 2017 are: Required Payments RMB Year ended March 31: 2018 2019 License fee for the non-cancelable purchase agreement for the years ended March 31, 2015, 2016 and 2017 were RMB 2,282,288, RMB 2,642,777 and RMB 3,485,967 respectively. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Mar. 31, 2017 | |
OPERATING LEASES | |
OPERATING LEASES | (19) OPERATING LEASES Minimum rental income under operating lease is recognized on a straight-line basis over the term of the lease, including any periods of free rent. Property on Operating Lease March 31, 2016 March 31, 2017 RMB RMB Building Less: Accumulated depreciation ) ) Rentals under Operating Lease Future minimum rental income under non-cancelable operating lease as of March 31, 2017 are: Minimum Rentals Amount RMB Year ended March 31: 2018 2019 2020 2021 2022 — |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 12 Months Ended |
Mar. 31, 2017 | |
EARNINGS (LOSS) PER COMMON SHARE | |
EARNINGS (LOSS) PER COMMON SHARE | (20) EARNINGS (LOSS) PER COMMON SHARE Basic and diluted earnings (loss) per common share are calculated as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Numerator: Net earnings (loss) ) Less: Dividends paid to participating securities ) — — Net earnings (loss) attributable to participating securities — ) — Net earnings (loss) available to common shareholders ) Denominator: Denominator for basic earnings (loss) per share: Weighted average common shares outstanding Plus: Incremental shares issuable upon exercise of share options — — — Denominator for diluted earnings (loss) per share Basic earnings (loss) per common share ) Diluted earnings (loss) per common share ) The following table summarizes potential common shares outstanding excluded from the calculation of diluted earnings (loss) per share for the years ended March 31, 2015, 2016 and 2017, because their effect is anti-dilutive: Year ended March 31, 2015 2016 2017 Shares issuable under share options |
ACQUISITION
ACQUISITION | 12 Months Ended |
Mar. 31, 2017 | |
ACQUISITION | |
ACQUISITION | (21) ACQUISITION On September 12, 2016, the Group acquired 60% equity interest in Puhua Technology by injection of RMB 2.0 million in cash. Puhua Technology is primarily engaged in technology development and online education consulting business. As of March 31, 2017, RMB 2.0 million has been fully paid to Puhua Technology. This acquisition was accounted for under the acquisition method and resulted in Puhua Technology becoming a consolidated subsidiary of the Group. The acquired business contributed net revenue of RMB 71,349 and net loss of RMB 633,513 to the Group for the period from September 12, 2016 to March 31, 2017. The following table summarizes the consideration paid to acquire Puhua Technology and the amount of identifiable assets acquired and liabilities assumed at the acquisition date: As of September 12, 2016 RMB Fair value of consideration transferred: Cash paid Fair value of non-controlling interests Fair value of identifiable assets acquired and liabilities assumed: Cash Other receivables and prepayments Other non-current assets Total assets acquired Other liabilities ) Amount of identifiable net assets Goodwill The goodwill represents the workforce of the acquired business and synergies expected to arise after the Group’s acquisition of Puhua Technology and expanding the product offering of testing services. All of the goodwill was assigned to the enterprise level. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Mar. 31, 2017 | |
SUBSEQUENT EVENT | |
SUBSEQUENT EVENTS | (22) SUBSEQUENT EVENT On June 1, 2017, the Company declared a cash dividend of USD 0.205 per common share, or USD 0.41 per ADS. The total amount of cash distributed was approximately USD 10.0 million and will be paid to all shareholders of record as of the close of business on June 12, 2017. |
ATA INC. ("Parent Company")
ATA INC. ("Parent Company") | 12 Months Ended |
Mar. 31, 2017 | |
ATA INC. ("Parent Company") | |
ATA INC. ("Parent Company") | (23) ATA INC. (“Parent Company”) The following presents condensed financial information of the Parent Company only. Condensed Balance Sheets March 31, 2016 2017 2017 RMB RMB USD Cash Prepaid expenses and other current assets Investments in subsidiaries Total assets Accrued expenses and other current liabilities Total liabilities Common shares Treasury shares ) ) ) Additional paid in capital Accumulated other comprehensive loss ) ) ) Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity Condensed Statements of Comprehensive Income (Loss) Year Ended March 31, 2015 2016 2017 2017 RMB RMB RMB USD Operating expenses ) ) ) ) Investment income (loss) ) ) Interest expense — — ) ) Interest income Foreign currency exchange gains (losses), net ) ) Earnings before income taxes ) ) Income tax expense — — — — Net income (loss) ) ) Other comprehensive income (loss) ) Comprehensive income (loss) ) ) Year Ended March 31, 2015 2016 2017 2017 RMB RMB RMB USD Net cash used in operating activities ) ) ) ) Cash flows from investing activities : Collection from subsidiaries: Net cash provided by investing activities Cash flows from financing activities : Cash paid for repurchase of common shares ) ) — — Proceeds from exercise of share options — — — Net cash used in financing activities ) ) — — Effect of foreign exchange rate changes on cash ) Net decrease in cash ) ) ) ) Cash at beginning of year Cash at end of year |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | (a) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and, prior to May 20, 2015, its variable interest entity, or VIE for which the Company is the primary beneficiary. All significant intercompany balances and transactions have been eliminated upon consolidation. Non-controlling interests are separately presented as a component of equity in the consolidated financial statements. |
Basis of presentation | (b) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of estimates | (c) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management of the Group to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include the fair values of share-based payments and available-for-sale investment, the collectability of accounts receivable, the realizability of deferred income tax assets, the estimate for useful lives and residual values of long-lived assets, the recoverability of the carrying values of long-lived assets, goodwill and long-term investments, and the expected licensing period for perpetual licenses with respect to revenue recognition. Actual results could differ from those estimates. |
Foreign currency translation and risks | (d) Foreign currency translation and risks The accompanying consolidated financial statements have been expressed in RMB, the Company’s reporting currency. The Company, ATA BVI and Xing Wei’s functional currency is the USD. The functional currency of the Company’s PRC subsidiaries is the RMB. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting foreign exchange gains and losses are included in the consolidated statements of comprehensive income in the line item “ Foreign currency exchange losses, net .” Assets and liabilities of the Company, ATA BVI and Xing Wei are translated into RMB using the applicable exchange rate at each balance sheet date. Revenues and expenses are translated into RMB at average rates prevailing during the year. The resulting foreign currency translation adjustments are recognized as a separate component of accumulated other comprehensive loss within equity. Since the RMB is not a fully convertible currency, all foreign exchange transactions involving RMB must take place either through the People’s Bank of China (the “PBOC”) or other institutions authorized to buy and sell foreign exchange. The exchange rates adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC. For the convenience of the readers, the 2017 RMB amounts included in the accompanying consolidated financial statements have been translated into USD at the rate of USD 1.00 = RMB 6.8832, the noon buying rate in New York cable transfers of RMB per USD as set forth in the H.10 weekly statistical release of Federal Reserve Board, as of March 31, 2017. No representation is made that the RMB amounts could have been, or could be, converted into USD at that rate or at any other rate on March 31, 2017. |
Commitments and contingencies | (e) Commitments and contingencies In the normal course of business, the Group is subject to contingencies, such as legal proceedings and claims that cover a wide range of matters. Liabilities for such contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. |
Fair value measurements | (f) Fair value measurements The Group utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Group determines fair value based on assumptions that market participants would use in pricing an asset or liability in an orderly transaction and principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: · Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. · Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. · Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. In situations where there is little, if any, market activity for the asset or liability at the measurement date, the fair value measurement reflects management’s own judgments about the assumptions that market participants would use in pricing the asset or liability. Those judgments are developed by management based on the best information available in the circumstances. |
Revenue recognition | (g) Revenue recognition The Group’s revenues are principally derived from the provision of testing services and online education services. The Group recognizes revenues when all of the following have occurred: · persuasive evidence of an agreement with the customer exists; · services have been performed and/or delivery of goods has occurred; · the fees for services performed and/or price of goods sold are fixed or determinable; and · collectability of the fees and/or sales proceeds is reasonably assured. The application of the above criteria for revenue recognition for each type of service or product is as follows: i) Fees for testing services are recognized upon the completion of the exam by the test taker since the Group has no significant future involvement after the completion of the examination. Fees received in advance of test delivery are recorded as deferred revenue. ii) The Group derives online education revenues from online education services. The online training entitles end users to access online education services during a specified service period, which normally ranges between 90 to 360 days from activation. Online training revenue is recognized over the service period commencing at the point of time the user’s access to the online training is activated and ending at the point of time the user complete training hours. If the online training sold to end users is not activated before the expiration date, related online service revenue is recognized on the expiration date. The Group is not contractually obligated to accept, nor has the Group historically accepted, returns from end users. iii) a) Licensing fees from authorized test centers The Group receives a fixed fee for a perpetual license that provide authorized test centers the right to use the Group’s brand name and e-testing platform. The Group is obligated to provide ongoing technical support and unspecific system upgrades; and to provide training to authorized test centers’ staff. Fixed fees for perpetual licenses are recognized on a straight-line basis over the expected licensing period of 10 years, which is the period the Group is expected to have continuing involvement with the authorized test centers. Management estimates the expected licensing period based on its historical retention experience, factoring in the expected level of future competition, the risk of technological obsolescence, technological innovation, and the expected changes in the education training environment. b) Test development service fees are recognized upon the acceptance of the developed tests by the customer. The period to develop the tests is short, generally within two to six months from commencement of development. c) Test administration software products sales are recognized upon delivery and when collectability is reasonably assured. d) The Group recognized the revenue from operating lease on a straight-line basis over the lease term. iv) Revenue is recognized net of business tax at the rate of 5% of gross revenues or VAT at the rate of 3% or 6% of gross revenues. Business tax and VAT collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until paid to the tax authorities. |
Cost of revenues | (h) Cost of revenues Cost of revenues consists primarily of cost of test monitoring, royalty fees for IT vendors and test sponsor licensing arrangements, payroll compensation, and other related costs, which are directly attributable to the rendering of services and delivery of goods. The test monitoring costs are recognized upon completion of examinations based on actual number of test takers. Royalty fees are recognized as cost of revenues based on actual usage according to contract provisions. The test monitoring costs and royalty fees for the years ended March 31, 2015, 2016 and 2017 are as follows: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Test monitoring costs Royalty fees |
Research and development costs | (i) Research and development costs Research and development costs primarily consist of software developed for internal use and software developed for sale. i) Software developed for internal use The Group expenses all costs that are incurred in connection with the planning and implementation phases of the development of software. Costs incurred in the development phase are capitalized and amortized over the estimated product life. No costs were capitalized for any of the periods presented. ii) Software developed for sale Costs incurred internally in researching and developing a computer software product are charged to expense as research and development costs prior to technological feasibility being established for the product. Once technological feasibility is established, all computer software costs are capitalized until the product is available for general release to customers. Technological feasibility is established upon completion of all the activities that are necessary to substantiate that the computer software product can be produced in accordance with its design specifications, including functions, features, and technical performance requirements. |
Operating lease | (j) Operating lease The Group leases offices under non-cancellable operating leases. Leases with escalated rent provisions are recognized on a straight-line basis commencing with the beginning of the lease term. There are no contingent rent in the lease agreements. The lease terms range between 12 and 58 months. The Company has no legal or contractual asset retirement obligations at the end of the lease term. |
Income taxes | (k) Income taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax loss carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax status is recognized in income in the period that includes the enactment date or the date of change in tax status. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. A deferred tax liability is not recognized for the excess of the Company’s financial statement carrying amount over the tax basis of its investment in a foreign subsidiary, if there exists specific plans for reinvestment of undistributed earnings of a subsidiary which demonstrate that remittance of the earnings will be postponed indefinitely. The Group recognizes in the consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group’s accounting policy is to accrue interest and penalties related to unrecognized tax benefits, if and when required, as interest expense and a component of general and administrative expenses, respectively in the consolidated statements of comprehensive income. |
Share-based payment | (l) Share-based payment The Group measures the cost of employee share options and non-vested shares based on the grant date fair value of the award and recognizes that cost over the period during which an employee is required to provide services in exchange for the award, which generally is the vesting period. For the graded vesting share options and non-vested shares, the Company recognizes the compensation cost over the requisite service period for each separately vesting portion of the award as if the award is, in substance, multiple awards. When no future services are required to be performed by the employee in exchange for an award of equity instruments, and if such award does not contain a performance or market condition, the cost of the award is expensed on the grant date. When there is a modification of the terms and conditions of an award of equity instruments, the Group calculates the incremental compensation cost of a modification as the excess of the fair value of the modified award over the fair value of the original award immediately before its terms are modified, measured based on the share price and other pertinent factors at the modification date. For vested options, the Group recognizes incremental compensation cost in the period the modification occurred. For unvested options, the Group recognizes, over the remaining requisite service period, the sum of the incremental compensation cost and the remaining unrecognized compensation cost for the original award on the modification date. When there is a change in the grantee status from an employee to a non-employee, if grantee retains the awards on a change in status and continues to provide substantive services to the Group, the change in status results in a new measurement date for the unvested awards with compensation costs measured as if the awards were newly issued to the grantee on the date of the change in status. If grantee retains the awards on a change in status and is not required to provide substantive services to the grantor subsequent to that change in status, the change in status is, in substance, an acceleration of the vesting of the arrangement. |
Cash, cash equivalent, restricted cash and short term loan | (m) Cash, cash equivalents, restricted cash and short term loan Cash and cash equivalents consist of cash in banks and highly liquid investments with original maturity less than three months. Restricted cash as of March 31, 2017 represents cash restricted as collateral for a short-term loan that ATA BVI has borrowed to support its business operations. On May 19, 2016, ATA BVI entered into a two-year Commercial Loan Facility (the “Facility”) with Industrial Bank Co., Ltd. Hong Kong Branch to borrow up to USD 4,000,000. ATA BVI shall pay interest at 2.5% per annum plus 3-month London Interbank Offer Rate (the “LIBOR”) on the commencement date for each drawdown. The Facility is fully secured by Standby Letter of Credit (“SBLC”) for an amount at RMB 30,000,000, which was recorded as restricted cash. The maturity date of each drawdown shall be twelve months after the first drawdown date but in any event no later than 5 business days prior to the expiration date of the corresponding SBLC unless otherwise extended by the bank in writing. In July 2016, ATA BVI borrowed RMB 3,449,650. In June 2017, the Group has fully repaid the drawdown and the interest thereon, and the SBLC was released in full. |
Accounts receivable | (n) Accounts receivable Accounts receivable are recognized at invoiced amounts, less an allowance for uncollectible accounts, if any. The allowance for doubtful accounts is the management’s best estimate of the amount of probable credit losses resulting from the inability of the Group’s customers to make required payments. The allowance for doubtful accounts is based on a review of specifically identified accounts, aging data and historical collection pattern. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. |
Long-term investments | (o) Long-term investments Equity method investments The Group applies the equity method to account for an equity interest in an investee over which the Group has significant influence but does not own a majority equity interest or otherwise control. Under the equity method of accounting, the Group’s share of the investee’s results of operations is reported as share of income (losses) of equity method investments in the consolidated statements of comprehensive income (loss). The Group recognizes an impairment loss when there is a decline in value below the carrying value of the equity method investment that is considered to be other-than-temporary. The process of assessing and determining whether impairment on an investment is other-than-temporary requires a significant amount of judgment. To determine whether an impairment is other-than-temporary, management considers whether it has the ability and intent to hold the investment until recovery and whether evidence indicating the carrying value of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the decline in value, any change in value subsequent to the period end, and forecasted performance of the investee. Cost method investments For equity investments in an investee that are not considered debt securities or equity securities that have readily determinable fair values and over which the Group neither has significant influence nor control, the Group carries the investment at cost and recognizes income as any dividends declared from distribution of investee’s earnings. The Group reviews the cost method investments for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable. An impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment would then become the new cost basis of the investment. The fair value of a cost method investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. No events or circumstances indicating a potential impairment were identified as of or for the year ended March 31, 2017. The Company determines that it is not practicable to estimate fair value of cost method investments as of March 31, 2017, because the sales prices or bid-and-asked quotations of the equity interests of these entities are not currently available and the cost of obtaining an independent valuation appears excessive considering the materiality of the investments to the Company. Available-for-sale investment The Group’s investment in convertible notes are classified as available-for-sale investments which are reported at fair value, with unrealized gains and losses recorded in accumulated other comprehensive income. An impairment loss on the available-for-sale investment is recognized in the consolidated statements of comprehensive income (loss) when the decline in value is determined to be other-than-temporary. |
Property and equipment, net | (p) Property and equipment, net Property and equipment is stated at historical cost. Depreciation is recognized over the following useful lives on the straight-line method, taking into consideration the assets’ estimated salvage value: Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives Ordinary maintenance and repairs are charged to expenses as incurred, while replacements and betterments are capitalized. When items are retired or otherwise disposed of, income is charged or credited for the difference between net book value of the item disposed and proceeds realized thereon. |
Intangible assets | (q) Intangible assets Intangible assets acquired are initially recognized and measured at fair value. Intangible assets are amortized on a straight-line basis over their respective estimated useful lives, which range from 5 to 12 years. The Group has no intangible assets with indefinite useful lives. |
Impairment of long-lived assets, excluding goodwill | (r) Impairment of long-lived assets, excluding goodwill Long-lived assets, such as property and equipment, and purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Group first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third-party independent appraisals, as considered necessary. The Group recognized an impairment loss of intangible assets of RMB 310,153, RMB nil and RMB nil for the years ended March 31, 2015, 2016 and 2017, respectively. |
Goodwill | (s) Goodwill Goodwill is an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is reviewed for impairment at least annually based on its identified reporting units, which are defined as reportable segments or groupings of businesses one level below the reportable segment level. The Group performs a qualitative assessment to determine whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount prior to performing the two-step goodwill impairment test. If this is the case, the two-step goodwill impairment test is required. If it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount, the two-step goodwill impairment test is not required. If the two-step goodwill impairment test is required, first, the fair value of the reporting unit is compared with its carrying amount (including goodwill). If the fair value of the reporting unit is less than its carrying amount, an indication of goodwill impairment exists for the reporting unit and the entity must perform step two of the impairment test (measurement). Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation and the residual fair value after this allocation is the implied fair value of the reporting unit’s goodwill. Fair value of the reporting unit is determined using a discounted cash flow analysis. If the fair value of the reporting unit exceeds its carrying amount, step two does not need to be performed. Annual impairment review at March 31, and when a triggering event occurs between annual impairment tests was conducted over goodwill. No impairment loss of goodwill was recorded for any of the periods presented. |
Employee benefit plans | (t) Employee benefit plans As stipulated by the regulations of the PRC, the Company’s PRC subsidiaries are required to contribute to various defined contribution plans, organized by municipal and provincial governments on behalf of their employees. The contributions to these plans are based on certain percentages of the employee’s standard salary base as determined by the local Social Security Bureau. The Group has no other obligation for the payment of employee benefits associated with these plans beyond the annual contributions described above. Employee benefit expenses recognized under these plans for the years ended March 31, 2015, 2016 and 2017 are allocated to the following expense items: Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans |
Earnings per share | (u) Earnings per share Basic earnings per share is computed by dividing net earnings by the weighted average number of common shares outstanding during the year using the two-class method. Under the two-class method, net income is allocated between common shares and other participating securities based on their participating rights in undistributed earnings. The Company’s non-vested shares relating to the share-based awards under the share incentive plan were considered participating securities since the holders of these securities have non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid). Diluted earnings per share is calculated by dividing net earnings adjusted for the effect of dilutive common equivalent shares, if any, by the weighted average number of common and dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of common shares issuable upon the exercise of outstanding share options (using the treasury stock method). Common equivalent shares in the diluted earnings per share computation are excluded to the effect that they would be anti-dilutive. In calculating the diluted earnings per share, the undistributed earnings are not reallocated to the participating securities and the common and dilutive common equivalent shares. |
Segment reporting | (v) Segment reporting The Group has one operating segment, testing and training services. Substantially all of the Group’s operations and customers are located in the PRC. Consequently, no geographic information is presented. |
Variable interest entity ("VIE") | (w) Variable interest entity (“VIE”) PRC regulations prohibit direct foreign ownership of business entities that engage in internet content provision (“ICP’’) services in the PRC. The Company and its foreign subsidiaries are prohibited from providing ICP services in the PRC, including having ownership of entities engaged in providing such services. Prior to July 2015, ATA Online had an ICP license for the provision of ICP services in the PRC. However, no ICP services were provided by ATA Online for all periods presented. Prior to May 20, 2015, the Group had no legal ownership interest in ATA Online but had control over ATA Online through a series of contractual agreements as further described below. Prior to April 2015, the legal ownership interests of ATA Online were held by Mr. Kevin Xiaofeng Ma, the Company’s co-founder and chairman and Mr. Walter Lin Wang, the Company’s co-founder and director. In April 2015, Mr. Walter Lin Wang transferred all of his equity in ATA Online to Mr. Haichang Xiong, the Company’s general counsel. In May 2015, the Company decided to list ATA Online on the National Equities Exchange and Quotations System in the PRC. In preparation for the listing of ATA Online in the PRC, the contractual arrangements were terminated and the entire equity interests of ATA Online were transferred from Mr. Kevin Xiaofeng Ma and Mr. Haichang Xiong (the nominee shareholders) to ATA Learning and Zhongxiao Zhixing on May 20, 2015 at the consideration of RMB 10.0 million determined based on the registered capital of ATA Online. As a result, ATA Online became a wholly equity-owned subsidiary of the Company. The consideration was paid to the nominee shareholders. Mr. Haichang Xiong transferred his consideration of RMB 1.0 million to Mr. Kevin Xiaofeng Ma on March 29, 2016. The Group received RMB 10.0 million in cash from Mr. Kevin Xiaofeng on June 7, 2017. Further, ATA Online has de-registered its ICP license in July 2015 to be in compliance with PRC regulations. VIE contractual agreements A series of contractual agreements, including loan agreements, a call option and cooperation agreement, an equity pledge agreement, a technical support agreement, a strategic consulting service agreement and a power of attorney (collectively, the “VIE Agreements”) were entered among ATA BVI, ATA Learning, ATA Online, Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang. These contractual agreements were terminated in May 2015 as aforementioned. The following is a description of the impact of the VIE Agreements on the Group’s consolidated financial statements for reporting periods prior to May 2015. ATA Online was determined to be a VIE because although Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang were the equity holders of ATA Online, (i) their equity investment of RMB 10.0 million in ATA Online was financed by the Group and (ii) they did not participate in any profit or loss of ATA Online. Although the Company did not have an equity investment in ATA Online, the Company had other variable interests in ATA Online through, among others, (i) the Company’s subordinated loans to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang (used by them to finance their equity investment in ATA Online) and other subordinated loans to ATA Online, (ii) the Company’s right, under the loan agreement, to receive all the dividends declared by ATA Online through its equity holders and (iii) the Company’s exclusive purchase option to acquire (or to have the Group’s designee acquire) 100% of the equity interest or assets in ATA Online for a consideration equal to the loans provided by the Group to Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang, to the extent permitted under PRC law. As a result of these variable interests, the Company had the obligation to absorb the expected losses and the right to receive expected residual returns of ATA Online. Through the VIE Agreements, the Company had a controlling financial interest in ATA Online because the Company had (i) the power to direct activities of ATA Online that most significantly impact the economic performance of ATA Online ( refer to the “Power of attorney agreement”); and (ii) the obligation to absorb the expected losses and the right to receive expected residual return of ATA Online that could potentially be significant to ATA Online(refer to the “Call option and cooperation agreement”). The termination of the VIE Agreements and the transfer of equity interests of ATA Online from the nominee shareholders to the Group had no impact on the Group’s controlling financial interest in ATA Online. Accordingly, the financial statements of ATA Online are consolidated in the Company’s consolidated financial statements for the years ended March 31, 2015, 2016 and 2017. All of the equity (net assets) and net incomes or losses of ATA Online are attributed to the Company; therefore, no non-controlling interest in ATA Online is presented in the Company’s consolidated financial statements. The key terms of these VIE Agreements were as follows: Loan agreements: ATA BVI lent to ATA Online’s equity holders, Mr. Kevin Xiaofeng Ma, and Mr. Walter Lin Wang, interest free loans in the amount of RMB10 million for the sole purpose of investing in ATA Online as ATA Online’s registered capital. The equity holders of ATA Online could only repay the loans by transferring all of their legal ownership interest in ATA Online to ATA BVI or to a third party designated by ATA BVI. The equity holders of ATA Online were required to pay to ATA BVI all dividend received from ATA Online. Upon termination of the VIE Agreement in May 2015, the nominee shareholders received RMB 10.0 million from the transfer of the legal ownership interests in ATA Online to ATA Learning and Zhongxiao Zhixing in November 2015. Such proceeds have been repaid to ATA BVI. Technical support agreement: ATA Learning had the exclusive right to provide technical support services to ATA Online. The service fees were mutually agreed by both parties, and were determined based on certain objective criteria such as the actual services required by ATA Online and the actual labor costs, as determined by the number of days and personnel involved, incurred by ATA Learning for providing the services during the relevant period. Strategic consulting service agreement: ATA Learning provided ATA Online with strategic consulting and related services to ATA Online. The fees for these services were determined by ATA Learning and calculated monthly based on actual time spent providing the services. ATA Learning had the right to adjust the fees payable by ATA Online in accordance with its performance. For the years ended March 31, 2015 and 2016, ATA Learning billed RMB 18.0 million and RMB nil to ATA Online based on the technical support agreement and strategic consulting service agreement. Call option and cooperation agreement: Through the call option and cooperation agreement entered into among ATA BVI, ATA Online and its equity holders, ATA BVI or any party designated by ATA BVI, had an exclusive purchase option to acquire the equity interest in ATA Online from its equity holders or acquire ATA Online’s assets at any time when permitted by applicable Chinese laws and regulations. The proceeds from the exercise of the call option would be applied to repay the loans under the loan agreements described above. Equity pledge agreement: To secure the payment obligations of ATA Online under the technical support agreement and the strategic consulting service agreement described above, ATA Online’s equity holders had pledged to ATA Learning their entire equity ownership interests in ATA Online. Under this agreement, equity holders of ATA Online may not transfer the pledged equity interest without ATA Learning’s prior written consent. . Power of attorney: Each of Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang signed a power of attorney, on March 27, 2013 and April 3, 2013 respectively, with ATA Learning to exclusively assign their rights as an shareholder of ATA Online to ATA Learning, including but not limited to voting right and right to appoint director and executive management of ATA Online. The assignment of the shareholder’s rights was legally binding, irrevocable. The VIE Agreements were terminated in May 2015. The Company’s involvement with the VIE under the VIE Agreements affected the Company’s consolidated results of operations and cash flows for the year ended March 31, 2015 as indicated below. Year ended March 31, 2015 RMB Net revenue Net income Year ended March 31, 2015 RMB Net cash provided by operating activities Net cash used in investing activities ) Net cash used in financing activities — |
Business Combination | (x) Business Combination Business combinations are recorded using the purchase method of accounting in accordance with ASC topic 805 (“ASC 805”): Business Combinations . The purchase method of accounting requires that the consideration transferred to be allocated to the assets, including separately identifiable assets and liabilities acquired, based on their estimated fair values. The consideration transferred of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred, and equity instruments issued as well as the contingent considerations and all contractual contingencies as of the acquisition date. The costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net assets of the acquiree, is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in earnings. Where the consideration in an acquisition includes contingent consideration the payment of which depends on the achievement of certain specified conditions post-acquisition, the contingent consideration is recognized and measured at its fair value at the acquisition date and if recorded as a liability it is subsequently carried at fair value with changes in fair value reflected in earnings. |
Recently issued accounting standards | (y) Recently issued accounting standards In May 2014, the FASB issued Accounting Standard Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . This ASU requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity should also disclose sufficient quantitative and qualitative information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In December 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers , which deferred the effective date of ASU No. 2014-09. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) which clarifies the implementation guidance on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. The new standard is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted for annual reporting periods beginning after December 15, 2016. The new standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The Group plans to complete its evaluation in next fiscal year, including an assessment of the new expanded disclosure requirements and a final determination of the transition method the Group will use to adopt the new standard. In February 2016, the FASB issued ASC Topic 842, Leases through ASU No. 2016-02. ASC Topic 842 requires a lessee to recognize all leases, including operating leases, on balance sheet via a right-of-use asset and lease liability, unless the lease is a short-term lease. All (or a portion of) fixed payments by the lessee to cover lessor costs related to ownership of the underlying assets, or executory costs, that do not represent payments for a good or service will be considered lease payments and reflected in the measurement of lease assets and lease liabilities by lessees. The new standard does not substantially change lessor accounting from current U.S. GAAP. The new standard also requires lessees and lessors to disclose more qualitative and quantitative information about their leases than current U.S. GAAP does. The standard is applied retrospectively, with elective reliefs. The new standard is effective for annual and interim reporting periods beginning after December 15, 2018 for a public business entity. Early adoption is permitted. The Group is currently evaluating the impact ASU No. 2016-02 will have on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ASU No. 2016-09 was issued as part of the FASB’s simplification initiative aimed at reducing costs and complexity while maintaining or improving the usefulness of financial information. This update involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, statutory tax withholding requirements, and classification in the statement of cash flows. This ASU is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period, and the entity must adopt all of the amendments in the same period. The Group does not expect the adoption of ASU No. 2016-09 will have a material impact on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows — Classification of Certain Cash Receipts and Cash Payments , which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Group is currently evaluating the impact ASU No. 2016-15 will have on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows - Restricted cash. This ASU requires companies to include cash and cash equivalents that have restrictions on withdrawal or use in total cash and cash equivalents on the statement of cash flows. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, adjustments should be reflected at the beginning of the fiscal year that includes that interim period. The amendments in this ASU should be applied using a retrospective transition method to each period presented. The Group is currently evaluating the impact ASU No. 2016-18 will have on its consolidated financial statements. |
Recently adopted accounting standards | (z) Recently adopted accounting standards In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which requires all deferred tax assets and liabilities, and related valuation allowances, to be classified as noncurrent on the Company’s consolidated balance sheets. ASU No. 2015-17 is effective for the Company for annual periods in fiscal years beginning after December 15, 2016, and requires either prospective or retrospective adoption. The Company elected to early adopt the new standard retrospectively in the year ended March 31, 2017, which resulted in the reclassifications of RMB 3,663,864 from current to noncurrent deferred income tax assets in the consolidated balance sheet as of March 31, 2016. |
DESCRIPTION OF BUSINESS, ORGA33
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Net revenues | Customer concentration risk | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | Year Ended March 31, 2015 2016 2017 RMB % RMB % RMB % The Chinese Institute of Certified Public Accountants % % % Asset Management Association of China — — % % China Banking Association % % % Securities Association of China % % — — |
Accounts receivable | Credit concentration risk, customers or financial institutions | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | March 31, 2016 2017 RMB % RMB % Asset Management Association of China % % The Chinese Institute of Certified Public Accountants % % |
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | |
Significant Concentrations and Risks | |
Schedule of significant concentrations and risks | March 31, 2016 2017 RMB RMB Financial institutions in the mainland of the PRC — Denominated in Renminbi (“RMB”) — Denominated in U.S. Dollar (“USD”) Total cash, cash equivalents and restricted cash balances held at mainland PRC financial institutions Financial institutions in Hong Kong Special Administrative Region (“HKSAR”) of the PRC — Denominated in RMB — — Denominated in Hong Kong Dollar — Denominated in USD — Denominated in Great Britain Pound — Total cash balances held at HKSAR financial institutions Total cash, cash equivalents and restricted cash balances held at financial institutions |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of test monitoring costs and royalty fees | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Test monitoring costs Royalty fees |
Schedule of useful lives of property and equipment | Building 30 years Computer equipment 3 to 5 years Furniture, fixtures and office equipment 5 years Software 3 to 5 years Motor vehicles 5 years Leasehold improvements The shorter of lease terms and estimated useful lives |
Schedule of allocation of recognized employee benefit expenses | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total expense due to employee benefit plans |
Schedule of the Company's involvement with the VIE under the VIE Agreements affected the consolidated results of operations and cash flows | Year ended March 31, 2015 RMB Net revenue Net income Year ended March 31, 2015 RMB Net cash provided by operating activities Net cash used in investing activities ) Net cash used in financing activities — |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
ACCOUNTS RECEIVABLE, NET | |
Schedule of accounts receivable, net | March 31, 2016 2017 RMB RMB Accounts receivable Less: allowance for doubtful accounts ) ) Accounts receivable, net |
Schedule of activities in the allowance for doubtful accounts | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Beginning allowance for doubtful accounts Additions charged to (reversal of) provision for doubtful accounts ) Write-off of accounts receivable ) — — Ending allowance for doubtful accounts |
PREPAID EXPENSES AND OTHER CU36
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | March 31, 2016 2017 RMB RMB Advances to employees Other current assets Total prepaid expenses and other current assets |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
LONG-TERM INVESTMENTS | |
Schedule of long-term investments | March 31, 2016 2017 RMB RMB Equity method investments Cost method investments — Available-for-sale investment Total long-term investments |
Schedule of equity method investments by investee and summarized financial information of the equity method investments | March 31, 2016 2017 RMB RMB Beijing Zhishang Education Technology Ltd. Master Mind Education Company — Beijing Satech Internet Educational Technology Ltd. — Brilent Inc. Total equity method investments Zhishang March 31, 2016 2017 RMB RMB Current assets Non-current assets Current liabilities Non-controlling interests — Net assets attributable to Zhishang’s shareholders Master Mind Satech March 31, March 31, 2016 2017 2016 2017 RMB RMB RMB RMB Current assets Non-current assets Current liabilities Equity — ) ) Zhishang Year ended March 31, 2015 2016 2017 RMB RMB RMB Net revenue — Cost and operating expenses Loss before income taxes ) ) ) Net loss ) ) ) Net loss attributable to Zhishang’s shareholders ) ) ) Master Mind Satech Year ended March 31, Year ended March 31, 2015 2016 2017 2015 2016 2017 RMB RMB RMB RMB RMB RMB Net revenue — Cost and operating expenses Loss before income taxes ) ) ) ) ) ) Net loss ) ) ) ) ) ) |
Schedule of cost method investments by investee | March 31, 2016 2017 RMB RMB Beijing Empower Education Online Co., Ltd. — Medicine (Beijing) Education Technology Ltd. — ApplySquare Education & Technology Co., Ltd. — Beijing GlobalWisdom Information Technology Co., Ltd. — Total cost method investments — |
Schedule of reconciliation of available-for-sale securities from cost basis to fair value | Foreign Aggregate Unrealized currency Aggregate cost Interest holding translation fair basis income loss adjustment value RMB RMB RMB RMB RMB Convertible note ) |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of the placement in the fair value hierarchy of assets that are measured at fair value on a recurring basis | The following tables present the placement in the fair value hierarchy of assets that are measured at fair value on a recurring basis at March 31, 2017: Fair value disclosure or measurement at March 31, 2017 Level 1 Level 2 Level 3 RMB RMB RMB RMB Available-for-sale investment Convertible note — — |
Schedule of significant inputs for the valuation model based on the fair value of invested capital evaluated by an income approach | Year Ended March 31, 2017 Total fair value of underlying asset as at valuation date USD 12,000,000 Risk free rate of interest For the March 30, 2016 Note For the April 28, 2016 Note Maturity Date For the March 30, 2016 Note 2018/3/30 For the April 28, 2016 Note 2018/4/28 Volatility For the March 30, 2016 Note For the April 28, 2016 Note |
Schedule of roll-forward of the fair value of Level 3 (significant unobservable inputs) assets | The following table presents a roll-forward of the fair value of Level 3 (significant unobservable inputs) asset for the year ended March 31, 2017, which only contains available-for-sale investment: Convertible note RMB Beginning balance as of April 1, 2016 Purchase Total gain or losses: Included in net income (loss) Included in other comprehensive income (loss) ) Foreign currency translation adjustment Ending balance as of March 31, 2017 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, net | March 31, 2016 2017 RMB RMB Building Computer equipment Furniture, fixtures and office equipment Software Motor vehicles Leasehold improvements Less: accumulated depreciation and amortization ) ) Property and equipment, net |
Schedule of allocation of depreciation expense recognized | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total depreciation expense |
GOODWILL AND INTANGIBLE ASSET40
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS, NET | |
Schedule of change in the carrying amount of goodwill | RMB Balance as of April 1, 2015 and 2016 Acquisition of Puhua Technology (Note 21) Balance as of March 31, 2017 |
Summary of Company's intangible assets | March 31, 2016 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Total intangible assets ) — March 31, 2017 Weighted Gross Accumulated Net Average carrying amortization carrying Amortization amount /deduction Impairment amount Period RMB RMB RMB RMB Years Customer relationships ) — 12 Training platform ) — 5 Royalty arrangement (i) ) — 5 Education assessment test caseware (ii) ) — 5 Total intangible assets ) — (i) Royalty arrangement represents the exclusive right the Group authorized to launch the online education services for banks registered under and supervised by China Banking Association for five years. (ii) Education assessment test caseware is the test content purchased for the Company’s strategic K-12 academic assessment business, which includes three subjects of Literature, Mathematics and English over six grades of junior and senior high school. |
Schedule of estimated amortization expense | March 31 RMB 2018 2019 2020 2021 2022 |
ACCRUED EXPENSES AND OTHER PA41
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
Schedule of accrued expenses and other payables | March 31, 2016 2017 RMB RMB Value-added tax and other taxes payable Accrued payroll and welfare Accrued test monitoring fees Royalty fees payable Income taxes payable — Other current liabilities Total accrued expenses and other payables |
DEFERRED REVENUES (Tables)
DEFERRED REVENUES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
DEFERRED REVENUES | |
Schedule of deferred revenues | March 31, 2016 2017 RMB RMB Testing service Online education services Other revenue — licensing fees from authorized test centers Other revenue — others Total deferred revenues Representing: Current deferred revenues Non-current deferred revenues |
NET REVENUES (Tables)
NET REVENUES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
NET REVENUES | |
Schedule of net revenues | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Testing services Online education services Other revenue Net revenues |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
INCOME TAXES | |
Schedule of earnings before income taxes generated in jurisdictions | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cayman Islands and British Virgin Islands ) ) ) PRC Hong Kong ) ) Earnings before income taxes |
Schedule of income tax expense (benefit) | Year Ended March 31, 2015 2016 2017 RMB RMB RMB PRC Current expense Deferred expense (benefit) ) Total income tax expense |
Schedule of difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings before income taxes | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Computed “expected” income tax expense Increase in valuation allowance Preferential income tax rate ) ) ) Entities not subject to income tax Non-deductible expenses Entertainment Share-based compensation Bad debt loss ) Tax rate differential ) — Additional deduction of research and development costs ) ) ) Withholding tax related to undistributed earnings — — Other Actual income tax expense |
Schedule of components of deferred income tax assets and liabilities | March 31, 2016 2017 RMB RMB Deferred income tax assets: Tax loss carryforwards Share of losses of equity method investments Impairment loss of long-term investments — Property and equipment, net Accrued expenses and other payables Total gross deferred income tax assets Less: valuation allowance ) ) Total deferred income tax assets, net Deferred income tax liabilities: Customer relationships Training platform Withholding tax related to distributable earnings — Total gross deferred income tax liabilities Net deferred income tax assets Net deferred income tax liabilities — |
Summary of movements of the valuation allowance | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Balance at the beginning of the year Additions Balance at the end of the year |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
SHARE BASED COMPENSATION | |
Summary of the shares options activities | Weighted Weighted Aggregate average remaining intrinsic Number of exercise contractual value shares USD years USD Outstanding as of March 31, 2014 Granted Exercised ) Forfeited ) Expired ) Outstanding as of March 31, 2015 Granted — — Exercised — — Forfeited — — Expired ) Outstanding as of March 31, 2016 Granted Exercised — — Forfeited ) Expired ) Outstanding as of March 31, 2017 Vested and expected to vest as of March 31, 2017 Exercisable as of March 31, 2017 — |
Schedule of information relating to options outstanding and exercisable | Options outstanding as of March 31, 2017 Options exercisable as of March 31, 2017 Exercise Remaining Exercise Remaining Number of Price Contractual Number Price Contractual Shares per Share Life of Shares per Share Life USD Years USD Years — — — |
Summary of assumptions used in the valuation model | Year Ended March 31, 2015 2016 2017 Expected dividend yield Expected volatility Expected term Risk-free interest rate (per annum) |
Non-vested shares | |
SHARE BASED COMPENSATION | |
Summary of the non-vested shares activities | Weighted Number grant date of shares fair value USD Outstanding at March 31, 2014 Granted — — Vested ) Forfeited ) Outstanding at March 31, 2015 Granted — — Vested ) Forfeited — — Outstanding at March 31, 2016 Granted Vested ) Forfeited ) Outstanding at March 31, 2017 |
Schedule of allocation of recognized compensation expense for non-vested shares | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Cost of revenues Research and development Sales and marketing General and administrative Total share based compensation expense |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of future minimum lease payments under non-cancelable operating leases | Minimum Lease Payments RMB Year ended March 31: 2018 2019 2020 2021 2022 — |
Schedule of future minimum payments under the non-cancelable purchase agreement | Required Payments RMB Year ended March 31: 2018 2019 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
OPERATING LEASES | |
Schedule of property on operating lease | March 31, 2016 March 31, 2017 RMB RMB Building Less: Accumulated depreciation ) ) |
Schedule of future minimum rental income under non-cancelable operating lease | Minimum Rentals Amount RMB Year ended March 31: 2018 2019 2020 2021 2022 — |
EARNINGS (LOSS) PER COMMON SH48
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
EARNINGS (LOSS) PER COMMON SHARE | |
Schedule of basic and diluted earnings (loss) per common share | Year Ended March 31, 2015 2016 2017 RMB RMB RMB Numerator: Net earnings (loss) ) Less: Dividends paid to participating securities ) — — Net earnings (loss) attributable to participating securities — ) — Net earnings (loss) available to common shareholders ) Denominator: Denominator for basic earnings (loss) per share: Weighted average common shares outstanding Plus: Incremental shares issuable upon exercise of share options — — — Denominator for diluted earnings (loss) per share Basic earnings (loss) per common share ) Diluted earnings (loss) per common share ) |
Summary of potential common shares outstanding excluded from the calculation of diluted earnings (loss) per share | Year ended March 31, 2015 2016 2017 Shares issuable under share options |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Puhua Technology | |
Summary of consideration paid to acquire Puhua Technology and the amounts of identifiable assets acquired and liabilities assumed at the acquisition date | As of September 12, 2016 RMB Fair value of consideration transferred: Cash paid Fair value of non-controlling interests Fair value of identifiable assets acquired and liabilities assumed: Cash Other receivables and prepayments Other non-current assets Total assets acquired Other liabilities ) Amount of identifiable net assets Goodwill |
ATA INC. ("Parent Company") (Ta
ATA INC. ("Parent Company") (Tables) - ATA INC. | 12 Months Ended |
Mar. 31, 2017 | |
Schedule of condensed balance sheets | March 31, 2016 2017 2017 RMB RMB USD Cash Prepaid expenses and other current assets Investments in subsidiaries Total assets Accrued expenses and other current liabilities Total liabilities Common shares Treasury shares ) ) ) Additional paid in capital Accumulated other comprehensive loss ) ) ) Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity |
Schedule of condensed statements of comprehensive income (loss) | Year Ended March 31, 2015 2016 2017 2017 RMB RMB RMB USD Operating expenses ) ) ) ) Investment income (loss) ) ) Interest expense — — ) ) Interest income Foreign currency exchange gains (losses), net ) ) Earnings before income taxes ) ) Income tax expense — — — — Net income (loss) ) ) Other comprehensive income (loss) ) Comprehensive income (loss) ) ) |
Schedule of condensed statements of cash flows | Year Ended March 31, 2015 2016 2017 2017 RMB RMB RMB USD Net cash used in operating activities ) ) ) ) Cash flows from investing activities : Collection from subsidiaries: Net cash provided by investing activities Cash flows from financing activities : Cash paid for repurchase of common shares ) ) — — Proceeds from exercise of share options — — — Net cash used in financing activities ) ) — — Effect of foreign exchange rate changes on cash ) Net decrease in cash ) ) ) ) Cash at beginning of year Cash at end of year |
DESCRIPTION OF BUSINESS, ORGA51
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS - Legal Ownership (Details) | May 19, 2015 |
VIE | |
Variable Interest Entity | |
Legal ownership interest (as a percent) | 0.00% |
DESCRIPTION OF BUSINESS, ORGA52
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS - Legal Ownership and Country Risk (Details) - CNY (¥) ¥ in Millions | Sep. 12, 2016 | Sep. 30, 2016 | Mar. 31, 2017 |
Acquisition | |||
Period in which PRC government pursuing economic reform policies | 30 years | ||
Puhua Technology | |||
Acquisition | |||
Percentage of equity interest acquired | 60.00% | 60.00% | |
Cash consideration | ¥ 2 | ¥ 2 |
DESCRIPTION OF BUSINESS, ORGA53
DESCRIPTION OF BUSINESS, ORGANIZATION AND SIGNIFICANT CONCENTRATIONS AND RISKS - Revenue Concentration (Details) | 12 Months Ended | ||||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017HKD | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | |
Significant Concentrations and Risks | |||||||
Net revenue | $ 68,628,794 | ¥ 472,385,716 | ¥ 417,139,969 | ¥ 350,157,824 | |||
Accounts receivable, net | 50,552,034 | $ 8,159,178 | ¥ 56,161,255 | ||||
PRC | Maximum | |||||||
Significant Concentrations and Risks | |||||||
Amount insured by government authority | 500,000 | ||||||
HKSAR | Maximum | |||||||
Significant Concentrations and Risks | |||||||
Amount insured by government authority | HKD | HKD 500,000 | ||||||
Net revenues | Customer concentration risk | Chinese government controlled entities | |||||||
Significant Concentrations and Risks | |||||||
Service fees | ¥ 329,600,000 | ¥ 301,500,000 | ¥ 246,200,000 | ||||
Percentage of concentration of risk | 69.80% | 69.80% | 72.30% | 70.30% | |||
Net revenues | Customer concentration risk | The Chinese Institute of Certified Public Accountants | |||||||
Significant Concentrations and Risks | |||||||
Net revenue | ¥ 90,455,936 | ¥ 76,485,306 | ¥ 64,944,327 | ||||
Percentage of concentration of risk | 19.10% | 19.10% | 18.30% | 18.50% | |||
Net revenues | Customer concentration risk | Asset Management Association of China | |||||||
Significant Concentrations and Risks | |||||||
Net revenue | ¥ 87,661,832 | ¥ 23,183,787 | |||||
Percentage of concentration of risk | 18.60% | 18.60% | 5.60% | ||||
Net revenues | Customer concentration risk | China Banking Association | |||||||
Significant Concentrations and Risks | |||||||
Net revenue | ¥ 55,521,062 | ¥ 61,190,087 | ¥ 64,169,577 | ||||
Percentage of concentration of risk | 11.80% | 11.80% | 14.70% | 18.30% | |||
Net revenues | Customer concentration risk | Securities Association of China | |||||||
Significant Concentrations and Risks | |||||||
Net revenue | ¥ 67,045,689 | ¥ 66,847,350 | |||||
Percentage of concentration of risk | 16.10% | 19.10% | |||||
Accounts receivable | Credit concentration risk, customers or financial institutions | The Chinese Institute of Certified Public Accountants | |||||||
Significant Concentrations and Risks | |||||||
Percentage of concentration of risk | 0.80% | 0.80% | 12.00% | ||||
Accounts receivable, net | ¥ 6,069,096 | 450,712 | |||||
Accounts receivable | Credit concentration risk, customers or financial institutions | Asset Management Association of China | |||||||
Significant Concentrations and Risks | |||||||
Percentage of concentration of risk | 19.30% | 19.30% | 26.20% | ||||
Accounts receivable, net | ¥ 13,243,230 | 10,836,559 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 247,667,737 | 252,448,413 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | PRC | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 236,843,844 | 251,488,184 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | PRC | Denominated in Renminbi ("RMB") | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 236,843,121 | 251,487,461 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | PRC | Denominated in U.S. Dollar ("USD") | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 723 | 723 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | HKSAR | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 10,823,893 | 960,229 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Renminbi ("RMB") | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 1 | ||||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Hong Kong Dollar | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 20,873 | 263,216 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in U.S. Dollar ("USD") | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | 10,502,056 | ¥ 697,012 | |||||
Cash, cash equivalents and restricted cash | Credit concentration risk, customers or financial institutions | HKSAR | Denominated in Great Britain Pound | |||||||
Significant Concentrations and Risks | |||||||
Total cash, cash equivalents and restricted cash balances | ¥ 300,964 |
SUMMARY OF SIGNIFICANT ACCOUN54
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | May 19, 2016USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017USD ($)¥ / $ | Mar. 31, 2017CNY (¥)¥ / $ | Jul. 31, 2016CNY (¥) | May 19, 2016CNY (¥) |
Foreign currency translation and risks | ||||||||
Rate for translation of balances of financial statements from RMB to US$ | ¥ / $ | 6.8832 | 6.8832 | ||||||
Revenue recognition | ||||||||
Business tax as a percentage of gross revenues | 5.00% | |||||||
VAT rate one as a percentage of gross revenues | 3.00% | |||||||
VAT rate two as a percentage of gross revenues | 6.00% | |||||||
Cost of revenues | ||||||||
Test monitoring costs | ¥ 163,061,810 | ¥ 142,116,286 | ¥ 113,042,449 | |||||
Royalty fees | 7,423,118 | 4,823,101 | 4,991,524 | |||||
Operating lease | ||||||||
Contingent rent | 0 | |||||||
Asset retirement obligations | ¥ 0 | |||||||
Cash, cash equivalents, restricted cash and short term loan | ||||||||
Borrowed amount | $ 501,170 | ¥ 3,449,650 | ||||||
Software developed for internal use | ||||||||
Research and development costs | ||||||||
Capitalized costs for the period | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Minimum | ||||||||
Operating lease | ||||||||
Operating lease term | 12 months | |||||||
Maximum | ||||||||
Operating lease | ||||||||
Operating lease term | 58 months | |||||||
Commercial Loan Facility (the "Facility") | ATA BVI | ||||||||
Cash, cash equivalents, restricted cash and short term loan | ||||||||
Term of commercial loan facility | 2 years | |||||||
Maximum borrowing capacity | $ | $ 4,000,000 | |||||||
Maturity date of each drawdown | 12 months | |||||||
Maximum maturity date of each drawdown prior to the expiration date of the corresponding SBLC | 5 days | |||||||
Borrowed amount | ¥ 3,449,650 | |||||||
Commercial Loan Facility (the "Facility") | ATA BVI | Restricted cash | ||||||||
Cash, cash equivalents, restricted cash and short term loan | ||||||||
Standby Letter of Credit ("SBLC") used to secure the Facility | ¥ 30,000,000 | |||||||
Commercial Loan Facility (the "Facility") | 3-month LIBOR | ATA BVI | ||||||||
Cash, cash equivalents, restricted cash and short term loan | ||||||||
Annual interest rate (as a percentage) | 2.50% | |||||||
Online education services | Minimum | ||||||||
Revenue recognition | ||||||||
Period for which end users can access services | 90 days | |||||||
Online education services | Maximum | ||||||||
Revenue recognition | ||||||||
Period for which end users can access services | 360 days | |||||||
Other revenue - licensing fees from authorized test centers | ||||||||
Revenue recognition | ||||||||
Period of revenue recognition | 10 years | |||||||
Test development services | Minimum | ||||||||
Revenue recognition | ||||||||
Period for development of tests | 2 months | |||||||
Test development services | Maximum | ||||||||
Revenue recognition | ||||||||
Period for development of tests | 6 months |
SUMMARY OF SIGNIFICANT ACCOUN55
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment, Net (Details) | 12 Months Ended |
Mar. 31, 2017 | |
Building | |
Property and equipment, net | |
Useful lives | 30 years |
Computer equipment | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Computer equipment | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Furniture, fixtures and office equipment | |
Property and equipment, net | |
Useful lives | 5 years |
Software | Minimum | |
Property and equipment, net | |
Useful lives | 3 years |
Software | Maximum | |
Property and equipment, net | |
Useful lives | 5 years |
Motor vehicles | |
Property and equipment, net | |
Useful lives | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN56
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible Assets and Goodwill (Details) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Intangible assets | |||
Intangible assets with indefinite useful lives | ¥ 0 | ||
Development costs capitalized | 13,900,058 | ¥ 1,722,700 | |
Impairment of long-lived assets, excluding goodwill | |||
Impairment loss of intangible assets | 0 | 0 | ¥ 310,153 |
Goodwill | |||
Impairment loss of goodwill | ¥ 0 | ¥ 0 | ¥ 0 |
Minimum | |||
Intangible assets | |||
Estimated useful lives | 5 years | ||
Maximum | |||
Intangible assets | |||
Estimated useful lives | 12 years |
SUMMARY OF SIGNIFICANT ACCOUN57
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Employee Benefit Plans and Segment Reporting (Details) | 12 Months Ended | ||
Mar. 31, 2017CNY (¥)segment | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 20,850,441 | ¥ 18,897,889 | ¥ 18,077,892 |
Segment reporting | |||
Number of operating segments | segment | 1 | ||
Cost of revenues | |||
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 6,841,587 | 6,334,414 | 5,597,846 |
Research and development | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 6,435,010 | 5,810,237 | 5,563,607 |
Sales and marketing | |||
Employee benefit plans | |||
Expense due to employee benefit plans | 4,463,283 | 4,169,401 | 4,045,878 |
General and administrative | |||
Employee benefit plans | |||
Expense due to employee benefit plans | ¥ 3,110,561 | ¥ 2,583,837 | ¥ 2,870,561 |
SUMMARY OF SIGNIFICANT ACCOUN58
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Variable Interest Entity and Contractual Agreements (Details) - CNY (¥) | Jun. 07, 2017 | May 20, 2015 | May 19, 2015 | Nov. 30, 2015 | May 31, 2015 | May 19, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 29, 2016 |
Variable Interest Entity | |||||||||
Amount received by nominee shareholders | ¥ 10,000,000 | ||||||||
VIE | |||||||||
Variable Interest Entity | |||||||||
Legal ownership interest (as a percent) | 0.00% | ||||||||
Consideration for transferring VIE to ATA Learning and Zhongxiao Zhixing | ¥ 10,000,000 | ¥ 10,000,000 | |||||||
Consideration transferred from one nominee shareholder to another | ¥ 1,000,000 | ||||||||
Percentage of equity interest that can be acquired as per exclusive purchase option | 100.00% | ||||||||
VIE | Technical support agreement and strategic consulting service agreement | |||||||||
Variable Interest Entity | |||||||||
Amount billed | ¥ 0 | ¥ 18,000,000 | |||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | |||||||||
Variable Interest Entity | |||||||||
Equity investment by co-founders in Variable Interest Entity | ¥ 10,000,000 | ¥ 10,000,000 | |||||||
VIE | Equity holders: Mr. Kevin Xiaofeng Ma and Mr. Walter Lin Wang | Loan agreements | |||||||||
Variable Interest Entity | |||||||||
Interest free loans to VIE's equity holders for the sole purpose of investing in VIE as VIE's registered capital | ¥ 10,000,000 | ¥ 10,000,000 | |||||||
Amount received by nominee shareholders | ¥ 10,000,000 | ||||||||
VIE | Mr. Kevin Xiaofeng Ma | |||||||||
Variable Interest Entity | |||||||||
Proceeds from shareholder | ¥ 10,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Revenue, Net Income and Cash Flows (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Net revenue and net income | ||||
Net revenue | $ 68,628,794 | ¥ 472,385,716 | ¥ 417,139,969 | ¥ 350,157,824 |
Net income | (1,411,553) | (9,716,002) | 26,051,187 | 23,055,720 |
Cash flows | ||||
Net cash provided by operating activities | 8,941,296 | 61,544,726 | 64,504,771 | 45,852,235 |
Net cash used in investing activities | (13,649,407) | (93,951,601) | (36,801,464) | (52,759,443) |
Net cash used in financing activities | $ 1,053,231 | ¥ 7,249,603 | ¥ (20,310,382) | (63,660,710) |
VIE | ||||
Net revenue and net income | ||||
Net revenue | 154,454,044 | |||
Net income | 21,951,065 | |||
Cash flows | ||||
Net cash provided by operating activities | 22,655,696 | |||
Net cash used in investing activities | ¥ (37,956,001) |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently adopted accounting standards (Details) - Early adoption - Accounting Standards Update 2015-17 | Mar. 31, 2017CNY (¥) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred income tax assets current | ¥ 3,663,864 |
Deferred income tax assets noncurrent | ¥ 3,663,864 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | |
Accounts receivable | ¥ 61,560,981 | ¥ 55,427,300 | ||||
Accounts receivable, net | $ 8,159,178 | 56,161,255 | 50,552,034 | |||
Activity in allowance for doubtful accounts for accounts receivable | ||||||
Additions charged to (reversal of) provision for doubtful accounts | $ 100,892 | ¥ 694,460 | ¥ (127,852) | ¥ 845,965 | ||
Accounts receivable | ||||||
Less: allowance for doubtful accounts | (4,875,266) | (5,003,118) | (4,688,433) | ¥ (5,399,726) | ¥ (4,875,266) | |
Activity in allowance for doubtful accounts for accounts receivable | ||||||
Beginning allowance for doubtful accounts | 4,875,266 | 5,003,118 | 4,688,433 | |||
Additions charged to (reversal of) provision for doubtful accounts | 524,460 | (127,852) | 845,965 | |||
Write-off of accounts receivable | (531,280) | |||||
Ending allowance for doubtful accounts | ¥ 5,399,726 | ¥ 4,875,266 | ¥ 5,003,118 |
PREPAID EXPENSES AND OTHER CU62
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Advances to employees | ¥ 373,071 | ¥ 982,530 | |
Other current assets | 6,962,753 | 7,285,850 | |
Total prepaid expenses and other current assets | $ 1,065,757 | ¥ 7,335,824 | ¥ 8,268,380 |
LONG-TERM INVESTMENTS (Details)
LONG-TERM INVESTMENTS (Details) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
LONG-TERM INVESTMENTS | |||
Equity method investments | ¥ 8,893,440 | ¥ 48,747,486 | |
Cost method investments | 69,621,700 | ||
Available-for-sale investment | 10,376,547 | 1,938,360 | |
Total long-term investments | $ 12,914,297 | ¥ 88,891,687 | ¥ 50,685,846 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity Method Investments (Details) | 1 Months Ended | 12 Months Ended | 27 Months Ended | ||||||||
Apr. 30, 2016CNY (¥) | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015CNY (¥) | Jan. 31, 2015CNY (¥) | Dec. 31, 2014CNY (¥) | Aug. 31, 2014CNY (¥) | Mar. 31, 2017USD ($)item | Mar. 31, 2017CNY (¥)item | Mar. 31, 2016CNY (¥)item | Mar. 31, 2015CNY (¥) | Mar. 31, 2017CNY (¥) | |
Equity method investments | |||||||||||
Equity method investments | ¥ 8,893,440 | ¥ 48,747,486 | ¥ 8,893,440 | ||||||||
Share of loss recognized | $ 2,342,128 | 16,121,334 | 8,829,140 | ¥ 2,196,750 | |||||||
Beijing Zhishang Education Technology Ltd. ("Zhishang") | |||||||||||
Equity method investments | |||||||||||
Equity method investments | 2,740,234 | 7,701,753 | 2,740,234 | ||||||||
Summarized financial information of the equity method investments | |||||||||||
Current assets | 7,193,920 | 16,915,455 | 7,193,920 | ||||||||
Non current assets | 1,107,731 | 1,519,523 | 1,107,731 | ||||||||
Current liabilities | 1,513,637 | 1,319,972 | 1,513,637 | ||||||||
Non-controlling interests | 698,605 | 698,605 | |||||||||
Net assets attributable to Zhishang's shareholders | 6,089,409 | 17,115,006 | ¥ 6,089,409 | ||||||||
Net revenue | 486,711 | 5,910 | |||||||||
Cost and operating expenses | 12,442,948 | 11,813,664 | 2,577,214 | ||||||||
Loss before income taxes | (11,160,739) | (10,433,271) | (2,451,723) | ||||||||
Net loss | (11,160,739) | (10,433,271) | (2,451,723) | ||||||||
Net loss attributable to Zhishang's shareholders | ¥ (11,025,597) | (10,433,271) | (2,451,723) | ||||||||
Master Mind Education Company ("Master Mind") | |||||||||||
Equity method investments | |||||||||||
Equity method investments | 27,534,547 | ||||||||||
Percentage of equity interest | 33.00% | 33.00% | 33.00% | ||||||||
Cash consideration | ¥ 12,302,000 | ¥ 18,453,864 | |||||||||
Share of loss recognized | ¥ 5,230,027 | 2,314,074 | 882,809 | ||||||||
Impairment loss | 22,304,520 | ||||||||||
Summarized financial information of the equity method investments | |||||||||||
Current assets | 2,818,796 | 17,275,584 | ¥ 2,818,796 | ||||||||
Non current assets | 342,833 | 421,415 | 342,833 | ||||||||
Current liabilities | 3,161,629 | 1,848,431 | ¥ 3,161,629 | ||||||||
Equity | 15,848,568 | ||||||||||
Net revenue | 609,837 | 592,961 | 143,100 | ||||||||
Cost and operating expenses | 17,350,165 | 13,662,672 | 2,824,687 | ||||||||
Loss before income taxes | (15,848,568) | (13,012,346) | (2,675,180) | ||||||||
Net loss | ¥ (15,848,568) | (13,012,346) | (2,675,180) | ||||||||
Beijing Satech Internet Educational Technology Ltd. ("Satech") | |||||||||||
Equity method investments | |||||||||||
Equity method investments | 4,520,146 | ||||||||||
Percentage of equity interest | 10.78% | 20.00% | 30.78% | 30.78% | |||||||
Cash consideration | ¥ 8,466,660 | ¥ 6,000,000 | ¥ 14,466,660 | ||||||||
Share of loss recognized | ¥ 3,091,954 | 1,269,187 | 210,666 | ||||||||
Impairment loss | 9,894,852 | ||||||||||
Summarized financial information of the equity method investments | |||||||||||
Current assets | 1,091,944 | 896,029 | 1,091,944 | ||||||||
Non current assets | 142,408 | 166,704 | 142,408 | ||||||||
Current liabilities | 2,037,788 | 1,543,959 | 2,037,788 | ||||||||
Equity | (803,436) | (481,226) | (803,436) | ||||||||
Net revenue | 326,188 | 9,674 | |||||||||
Cost and operating expenses | 10,716,073 | 8,367,416 | 1,056,987 | ||||||||
Loss before income taxes | (10,380,733) | (8,345,933) | (1,053,332) | ||||||||
Net loss | (10,380,733) | (8,345,933) | (1,053,332) | ||||||||
Brilent Inc. ("Brilent") | |||||||||||
Equity method investments | |||||||||||
Equity method investments | 6,153,206 | 8,991,040 | ¥ 6,153,206 | ||||||||
Share of loss recognized | ¥ 2,837,834 | 550,907 | |||||||||
Master Mind and Satech | |||||||||||
Equity method investments | |||||||||||
Number of equity method investments with other than temporary impairments | item | 2 | 2 | |||||||||
ATA Online | Beijing Zhishang Education Technology Ltd. ("Zhishang") | |||||||||||
Equity method investments | |||||||||||
Percentage of equity interest | 45.00% | ||||||||||
Cash consideration | ¥ 13,500,000 | ||||||||||
Share of loss recognized | ¥ 4,961,519 | ¥ 4,694,972 | ¥ 1,103,275 | ||||||||
ATA BVI | Brilent Inc. ("Brilent") | |||||||||||
Equity method investments | |||||||||||
Percentage of equity interest | 15.47% | ||||||||||
Number of board seat held | item | 1 | ||||||||||
Total number of board seat | item | 6 | ||||||||||
ATA BVI | Brilent Inc. ("Brilent") | Preferred Shares | |||||||||||
Equity method investments | |||||||||||
Number of shares purchased | shares | 2,156,721 | ||||||||||
Purchase price (USD per share) | $ / shares | $ 0.6955 | ||||||||||
Total consideration | $ | $ 1,500,000 |
LONG-TERM INVESTMENTS - Cost Me
LONG-TERM INVESTMENTS - Cost Method Investments (Details) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2016CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2017CNY (¥) | Apr. 30, 2016 | |
Cost method investments | |||||
Cost method investments | ¥ 69,621,700 | ||||
Proceed from sale of equity interest | $ 799,047 | ¥ 5,500,000 | |||
Gain recognized from disposal of long-term investment | $ 232,450 | ¥ 1,600,000 | |||
Beijing Empower Education Online Co., Ltd. ("EEO") | |||||
Cost method investments | |||||
Cost method investments | 32,500,000 | ||||
Percentage of equity interest | 8.33% | ||||
Cash consideration | 32,500,000 | ||||
Medicine (Beijing) Education Technology Ltd. ("MDS") | |||||
Cost method investments | |||||
Cost method investments | ¥ 5,100,000 | ||||
Percentage of equity interest | 15.00% | 15.00% | |||
Cash consideration | ¥ 9,000,000 | ||||
Percentage of equity interest sold out | 6.50% | ||||
Proceed from sale of equity interest | ¥ 5,500,000 | ||||
Gain recognized from disposal of long-term investment | ¥ 1,600,000 | ||||
ApplySquare Education & Technology Co., Ltd. ("ApplySquare") | |||||
Cost method investments | |||||
Cost method investments | ¥ 19,721,700 | ||||
Percentage of equity interest | 9.00% | 9.00% | |||
Cash consideration | $ 3,000,000 | ¥ 19,721,700 | |||
Beijing GlobalWisdom Information Technology Co., Ltd. ("GlobalWisdom") | |||||
Cost method investments | |||||
Cost method investments | ¥ 12,300,000 | ||||
Percentage of equity interest | 8.20% | 8.20% | |||
Cash consideration | ¥ 12,300,000 |
LONG-TERM INVESTMENTS - Availab
LONG-TERM INVESTMENTS - Available-for-sale Investment (Details) | Apr. 28, 2016CNY (¥) | Mar. 30, 2016USD ($) | Apr. 28, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 24, 2016USD ($) |
Available-for-sale investments | ||||||||
Interest income | ¥ 568,320 | |||||||
Unrealized holding loss of available-for-sale investment reported in other comprehensive income (loss) | $ 80,467 | ¥ 553,870 | ||||||
Available-for-sale securities, fair value to amortized cost basis | ||||||||
Aggregate fair value | ¥ 10,376,547 | ¥ 1,938,360 | ||||||
Convertible note ("the Notes") | ||||||||
Available-for-sale investments | ||||||||
Fair value of investments | $ | $ 1,504,000 | |||||||
Available-for-sale securities, fair value to amortized cost basis | ||||||||
Aggregate cost basis | 9,895,800 | |||||||
Interest income | 568,320 | |||||||
Unrealized holding loss | (553,870) | |||||||
Foreign currency translation adjustment | 466,297 | |||||||
Aggregate fair value | ¥ 10,376,547 | |||||||
Available-for-sale investment | Brilent Inc. ("Brilent") | Convertible note ("the Notes") | ||||||||
Available-for-sale investments | ||||||||
Maximum amount of investments allowed for purchase | $ | $ 2,500,000 | |||||||
ATA BVI | Available-for-sale investment | Brilent Inc. ("Brilent") | Convertible note ("the Notes") | ||||||||
Available-for-sale investments | ||||||||
Principal amount of investments | ¥ 1,200,000 | $ 300,000 | ||||||
Interest rate per annum (as a percent) | 6.00% | 6.00% | ||||||
Cash consideration | $ | $ 1,500,000 | |||||||
Term of investments | 24 months | 24 months | ||||||
Amount converted to, as a percentage of qualified financing security purchase price | 75.00% | 75.00% |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | |
Aggregate fair value | ¥ 10,376,547 | ¥ 1,938,360 | |
Roll-forward of the fair value of Level 3 (significant unobservable inputs) assets | |||
Total gain or losses included in net income (loss) | $ 82,566 | 568,320 | |
Income approach | |||
Aggregate fair value | ¥ 12,000,000 | ||
Discount rate | 26.00% | 26.00% | |
Convertible note ("the Notes") | |||
Aggregate fair value | ¥ 10,376,547 | ||
Convertible note ("the Notes") | Recurring basis | |||
Aggregate fair value | 10,376,547 | ||
Convertible note ("the Notes") | Recurring basis | Level 3 | |||
Aggregate fair value | ¥ 10,376,547 | ||
Convertible note, March 30, 2016 Note | Income approach | |||
Risk free rate of interest | 1.02% | 1.02% | |
Volatility | 35.22% | 35.22% | |
Convertible note, April 28, 2016 Note | Income approach | |||
Risk free rate of interest | 1.04% | 1.04% | |
Volatility | 36.10% | 36.10% | |
Available-for-sale investment | |||
Roll-forward of the fair value of Level 3 (significant unobservable inputs) assets | |||
Beginning balance | ¥ 1,938,360 | ||
Purchases | 7,957,440 | ||
Total gain or losses included in net income (loss) | 568,320 | ||
Total gain or losses included in other comprehensive income (loss) | (553,870) | ||
Foreign currency translation adjustment | 466,297 | ||
Ending balance | ¥ 10,376,547 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) | 12 Months Ended | ||||
Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 117,734,327 | ¥ 119,659,843 | |||
Less: accumulated depreciation and amortization | (60,504,600) | (67,790,929) | |||
Property and equipment, net | 57,229,727 | $ 7,535,581 | 51,868,914 | ||
Total depreciation expense | ¥ 8,692,093 | 8,418,634 | ¥ 7,044,777 | ||
Cost of revenues | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 3,283,130 | 2,923,170 | 2,218,458 | ||
Research and development | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 1,064,370 | 879,228 | 199,886 | ||
Sales and marketing | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | 601,509 | 514,458 | 464,404 | ||
General and administrative | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Total depreciation expense | ¥ 3,743,084 | 4,101,778 | ¥ 4,162,029 | ||
Building | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 53,049,213 | 53,049,213 | |||
Computer equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 27,972,606 | 28,964,985 | |||
Furniture, fixtures and office equipment | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 2,358,500 | 2,471,985 | |||
Software | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 15,833,639 | 15,994,016 | |||
Motor vehicles | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | 2,401,570 | 2,767,358 | |||
Leasehold improvements | |||||
PROPERTY AND EQUIPMENT, NET | |||||
Property and equipment, gross | ¥ 16,118,799 | ¥ 16,412,286 |
GOODWILL AND INTANGIBLE ASSET69
GOODWILL AND INTANGIBLE ASSETS, NET (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($)gradeitem | Mar. 31, 2017CNY (¥)gradeitem | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Change in the carrying amount of goodwill | ||||
Balance at beginning of the year | ¥ 31,011,902 | ¥ 31,011,902 | ||
Balance at end of the year | $ 4,725,125 | 32,523,983 | 31,011,902 | ¥ 31,011,902 |
Intangible assets | ||||
Gross carrying amount | 13,900,058 | 1,722,700 | ||
Accumulated amortization/deduction | (2,573,545) | (971,805) | ||
Net carrying amount | 11,326,513 | 750,895 | ||
Amortization expenses | 1,601,740 | 192,874 | ¥ 192,873 | |
Estimated amortization expense | ||||
2,018 | 2,628,345 | |||
2,019 | 2,593,120 | |||
2,020 | 2,543,805 | |||
2,021 | 2,534,639 | |||
2,022 | 1,026,604 | |||
Customer relationships | ||||
Intangible assets | ||||
Gross carrying amount | 1,300,000 | 1,300,000 | ||
Accumulated amortization/deduction | (875,832) | (767,500) | ||
Net carrying amount | ¥ 424,168 | ¥ 532,500 | ||
Weighted Average Amortization Period | 12 years | 12 years | 12 years | |
Training platform | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 422,700 | ¥ 422,700 | ||
Accumulated amortization/deduction | (288,845) | (204,305) | ||
Net carrying amount | ¥ 133,855 | ¥ 218,395 | ||
Weighted Average Amortization Period | 5 years | 5 years | 5 years | |
Royalty arrangement | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 8,000,000 | |||
Accumulated amortization/deduction | (1,200,000) | |||
Net carrying amount | ¥ 6,800,000 | |||
Weighted Average Amortization Period | 5 years | 5 years | ||
Term of exclusive right to launch the online education services for banks registered under and supervised by CBA | 5 years | 5 years | ||
Education assessment test caseware | ||||
Intangible assets | ||||
Gross carrying amount | ¥ 4,177,358 | |||
Accumulated amortization/deduction | (208,868) | |||
Net carrying amount | ¥ 3,968,490 | |||
Weighted Average Amortization Period | 5 years | 5 years | ||
Number of subjects included | item | 3 | 3 | ||
Number of grades of junior and senior high school included | grade | 6 | 6 | ||
Puhua Technology | ||||
Change in the carrying amount of goodwill | ||||
Acquisition of Puhua Technology (Note 21) | ¥ 1,512,081 |
ACCRUED EXPENSES AND OTHER PA70
ACCRUED EXPENSES AND OTHER PAYABLES (Details) | Mar. 31, 2017USD ($)item | Mar. 31, 2017CNY (¥)item | Mar. 31, 2016CNY (¥) |
Value-added tax and other taxes payable | ¥ 2,407,530 | ¥ 3,851,923 | |
Accrued payroll and welfare | 17,042,283 | 14,524,290 | |
Accrued test monitoring fees | 17,141,791 | 14,702,303 | |
Royalty fees payable | 734,571 | 532,185 | |
Income taxes payable | 3,044,352 | ||
Other current liabilities | 52,032,672 | 21,084,574 | |
Total accrued expenses and other payables | $ 12,982,166 | 89,358,847 | ¥ 57,739,627 |
ATA Data | |||
Investment prepayments received | ¥ 34,000,000 | ||
Number of third party investors | item | 2 | 2 | |
Percentage of equity shares to be acquired by third party investors | 20.00% | 20.00% |
DEFERRED REVENUES (Details)
DEFERRED REVENUES (Details) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) |
DEFERRED REVENUES | |||
Total deferred revenues | ¥ 11,953,519 | ¥ 18,490,915 | |
Representing: | |||
Current deferred revenues | $ 1,485,050 | 10,221,897 | 16,612,164 |
Non-current deferred revenues | $ 251,572 | 1,731,622 | 1,878,751 |
Testing service | |||
DEFERRED REVENUES | |||
Total deferred revenues | 8,047,140 | 14,611,826 | |
Online education services | |||
DEFERRED REVENUES | |||
Total deferred revenues | 297,602 | 223,821 | |
Other revenue - licensing fees from authorized test centers | |||
DEFERRED REVENUES | |||
Total deferred revenues | 2,333,983 | 2,451,093 | |
Other revenue - others | |||
DEFERRED REVENUES | |||
Total deferred revenues | ¥ 1,274,794 | ¥ 1,204,175 |
NET REVENUES (Details)
NET REVENUES (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
NET REVENUES | ||||
Net revenues | $ 68,628,794 | ¥ 472,385,716 | ¥ 417,139,969 | ¥ 350,157,824 |
Testing service | ||||
NET REVENUES | ||||
Net revenues | 430,056,696 | 384,799,721 | 319,055,019 | |
Online education services | ||||
NET REVENUES | ||||
Net revenues | 7,462,036 | 4,896,879 | 5,710,827 | |
Other revenue | ||||
NET REVENUES | ||||
Net revenues | 34,866,984 | 27,443,369 | 25,391,978 | |
Product sales | ||||
NET REVENUES | ||||
Net revenues | ¥ 570,576 | ¥ 490,152 | ¥ 1,252,673 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 27 Months Ended | 36 Months Ended | 111 Months Ended | ||||||||
Mar. 31, 2018 | Jun. 29, 2017 | Dec. 31, 2017 | Mar. 31, 2017USD ($) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015 | Mar. 31, 2017USD ($) | Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | |
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |||||||||||
Withholding tax related to distributable earnings | ¥ 22,620,872 | |||||||||||||
Undistributed earnings generated by the PRC consolidated entities | 226,208,715 | |||||||||||||
Deferred income tax liabilities | $ 3,286,389 | $ 3,286,389 | $ 3,286,389 | ¥ 22,620,872 | ||||||||||
Unrecognized deferred income tax liability | ¥ 17,856,205 | |||||||||||||
PRC | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | 25.00% | ||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
Withholding tax rate for dividends distributed by a PRC-resident enterprise to its immediate holding company outside the PRC (as a percent) | 10.00% | |||||||||||||
PRC | ATA Testing | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | ATA Testing | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
Renewed term of HNTE certificate | 3 years | |||||||||||||
PRC | ATA Learning | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | ATA Learning | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
PRC | ATA Online | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | ATA Online | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
PRC | ATA Data | ||||||||||||||
Income Taxes | ||||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | 15.00% | 15.00% | |||||||||||
PRC | ATA Data | Future | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
Preferential tax rate as a high and new technology enterprise (as a percent) | 15.00% | |||||||||||||
PRC | Zhongxiao Zhixing | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% | |||||||||||||
PRC | Puhua Technology | ||||||||||||||
Income Taxes | ||||||||||||||
Statutory income tax rate (as a percent) | 25.00% |
INCOME TAXES - Earnings By Juri
INCOME TAXES - Earnings By Jurisdiction and Components of Income Tax Expense/(Benefit) (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Income Taxes | ||||
Earnings before income taxes | $ 4,159,051 | ¥ 28,627,579 | ¥ 44,972,666 | ¥ 32,630,866 |
Current expense | 15,677,070 | 11,867,755 | 10,424,835 | |
Deferred expense (benefit) | 22,919,916 | 7,053,724 | (849,689) | |
Total income tax expense | $ 5,607,419 | 38,596,986 | 18,921,479 | 9,575,146 |
Cayman Islands and British Virgin Islands | ||||
Income Taxes | ||||
Earnings before income taxes | (7,439,119) | (23,126,473) | (15,524,612) | |
PRC | ||||
Income Taxes | ||||
Earnings before income taxes | 36,100,641 | 68,147,366 | 48,142,932 | |
HKSAR | ||||
Income Taxes | ||||
Earnings before income taxes | ¥ (33,943) | ¥ (48,227) | ¥ 12,546 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Actual Income Tax Expense Percent and the PRC Statutory Tax Rate (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
INCOME TAXES | ||||
PRC statutory income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | 25.00% |
Difference between actual income tax expense and amount computed by applying the PRC statutory income tax rate to earnings (loss) before income taxes | ||||
Computed "expected" income tax expense | ¥ 7,156,895 | ¥ 11,243,167 | ¥ 8,157,716 | |
Increase in valuation allowance | 21,150,760 | 16,146,033 | 1,307,368 | |
Preferential income tax rate | (12,853,725) | (7,911,837) | (4,922,088) | |
Entities not subject to income tax | 1,868,266 | 3,502,469 | 2,100,188 | |
Non-deductible expenses | ||||
Entertainment | 662,669 | 792,099 | 1,225,250 | |
Share-based compensation | 1,739,601 | 2,291,206 | 1,777,829 | |
Bad debt loss | 173,615 | (31,963) | 1,383,597 | |
Tax rate differential | (3,974,403) | 5,629,196 | ||
Additional deduction of research and development costs | (4,856,620) | (4,900,698) | (8,489,742) | |
Withholding tax related to undistributed earnings | 22,620,872 | |||
Other | 934,653 | 1,765,406 | 1,405,832 | |
Total income tax expense | $ 5,607,419 | ¥ 38,596,986 | ¥ 18,921,479 | ¥ 9,575,146 |
INCOME TAXES - Deferred Taxes (
INCOME TAXES - Deferred Taxes (Details) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
Deferred income tax assets: | |||||
Tax loss carryforwards | ¥ 28,887,161 | ¥ 20,326,608 | |||
Share of losses of equity method investments | 3,193,339 | 1,112,843 | |||
Impairment loss of long-term investments | 8,049,843 | ||||
Property and equipment, net | 276,921 | 70,475 | |||
Accrued expenses and other payables | 4,292,260 | 2,375,267 | |||
Total gross deferred income tax assets | 44,699,524 | 23,885,193 | |||
Less: valuation allowance | (41,179,348) | (20,028,588) | ¥ (3,882,555) | ¥ (2,575,187) | |
Total deferred income tax assets, net | 3,520,176 | 3,856,605 | |||
Deferred income tax liabilities: | |||||
Deferred tax liabilities, withholding tax related to distributable earnings | 22,620,872 | ||||
Total gross deferred income tax liabilities | 22,752,288 | 168,801 | |||
Net deferred income tax assets | 3,388,760 | 3,687,804 | |||
Net deferred income tax liabilities | $ 3,286,389 | 22,620,872 | |||
Customer relationships | |||||
Deferred income tax liabilities: | |||||
Deferred tax liabilities, intangible assets acquired | 97,952 | 114,202 | |||
Training platform | |||||
Deferred income tax liabilities: | |||||
Deferred tax liabilities, intangible assets acquired | ¥ 33,464 | ¥ 54,599 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance (Details) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Movements of the valuation allowance | |||
Balance at the beginning of the year | ¥ 20,028,588 | ¥ 3,882,555 | ¥ 2,575,187 |
Additions | 21,150,760 | 16,146,033 | 1,307,368 |
Balance at the end of the year | 41,179,348 | 20,028,588 | 3,882,555 |
Additional disclosures | |||
Unrecognized tax benefits | 0 | 0 | 0 |
Interest and penalties recorded | ¥ 0 | ¥ 0 | ¥ 0 |
Period of statute of limitations, if the underpayment of taxes is due to computational errors made by the taxpayer or the withholding agent | 3 years | ||
Period of statute of limitations, if the underpayment is more than RMB 100,000 | 5 years | ||
Minimum amount of underpayment of taxes for statute of limitations to be extended to five years | ¥ 100,000 | ||
Period of statute of limitations for transfer pricing issues | 10 years | ||
December 31, 2020 | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | ¥ 41,458,162 | ||
PRC | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | 120,772,769 | ||
PRC | December 31, 2018 | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | 4,996,057 | ||
PRC | December 31, 2019 | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | 5,438,101 | ||
PRC | December 31, 2021 | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | 43,372,847 | ||
PRC | December 31, 2022 | |||
Movements of the valuation allowance | |||
Tax loss carry forwards for PRC income tax purpose | ¥ 25,507,602 |
SHARE BASED COMPENSATION - Shar
SHARE BASED COMPENSATION - Share Incentive Plans (Details) | Dec. 30, 2016shares | Jan. 07, 2008shares | Jan. 31, 2017$ / sharesshares | Apr. 30, 2015$ / sharesshares | Feb. 28, 2015CNY (¥)$ / shares | Feb. 28, 2015CNY (¥)itemshares | Oct. 31, 2014CNY (¥) | Oct. 30, 2013$ / sharesshares | Apr. 30, 2005shares | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017CNY (¥)shares | Mar. 31, 2016$ / shares | Mar. 31, 2016CNY (¥)shares | Mar. 31, 2015$ / shares | Mar. 31, 2015CNY (¥)shares | Oct. 31, 2007shares |
Officer(s) | Common share | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Number of officers | item | 2 | |||||||||||||||
Fair value of shares on the grant date | ¥ | ¥ 2,831,396 | |||||||||||||||
Cost of treasury shares repurchased | ¥ | ¥ 2,983,072 | ¥ 2,983,072 | ||||||||||||||
Amount recognized as a reduction of additional paid-in capital | ¥ | ¥ 151,676 | |||||||||||||||
Officer One | Common share | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Number of shares granted (in shares) | 100,000 | |||||||||||||||
Officer Two | Common share | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Number of shares granted (in shares) | 114,314 | |||||||||||||||
Options | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Additional exercise period | 6 months | |||||||||||||||
Additional compensation expense due to modifications | ¥ | ¥ 1,635,726 | |||||||||||||||
Number of shares | ||||||||||||||||
Outstanding at the beginning of the period (in shares) | 3,885,667 | 1,904,067 | 3,885,667 | 4,214,667 | ||||||||||||
Granted (in shares) | 900,000 | 1,469,460 | ||||||||||||||
Exercised (in shares) | (300,000) | |||||||||||||||
Forfeited (in shares) | (100,000) | (1,102,095) | ||||||||||||||
Expired (in shares) | (253,000) | (1,981,600) | (396,365) | |||||||||||||
Outstanding at the end of the period (in shares) | 2,451,067 | 1,904,067 | 3,885,667 | |||||||||||||
Vested and expected to vest at the end of the period (in shares) | 2,451,067 | |||||||||||||||
Exercisable at the end of the period (in shares) | 916,337 | |||||||||||||||
Weighted average exercise | ||||||||||||||||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 2.66 | $ 2.61 | $ 2.66 | $ 2.72 | ||||||||||||
Granted (in dollars per share) | $ / shares | 1.71 | 2.24 | ||||||||||||||
Exercised (in dollars per share) | $ / shares | 2.12 | |||||||||||||||
Forfeited (in dollars per share) | $ / shares | 1.71 | 2.50 | ||||||||||||||
Expired (in dollars per share) | $ / shares | 3.60 | 2.72 | 2.58 | |||||||||||||
Outstanding at the end of the period (in dollars per share) | $ / shares | 2.21 | $ 2.61 | $ 2.66 | |||||||||||||
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares | 2.21 | |||||||||||||||
Exercisable at the end of the period (in dollars per share) | $ / shares | $ 2.63 | |||||||||||||||
Weighted remaining contractual Years | ||||||||||||||||
Vested and expected to vest at the end of the period | 7 years 11 months 16 days | |||||||||||||||
Exercisable at the end of the period | 6 years 5 months 12 days | |||||||||||||||
Aggregate intrinsic value | ||||||||||||||||
Vested and expected to vest at the end of the period (in dollars) | $ | $ 156,000 | |||||||||||||||
Additional disclosures | ||||||||||||||||
Total intrinsic value of options exercised (in dollars) | ¥ | ¥ 0 | ¥ 0 | ||||||||||||||
Options | Officer(s) | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | 25.00% | ||||||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | 75.00% | ||||||||||||||
Vesting period for remaining 75% shares | 3 years | 3 years | ||||||||||||||
Percentage forfeited | 75.00% | |||||||||||||||
Expense reversed, related to the unvested share options recognized previously | ¥ | ¥ 4,014,513 | |||||||||||||||
Number of shares | ||||||||||||||||
Granted (in shares) | 1,469,460 | 1,469,460 | ||||||||||||||
Weighted average exercise | ||||||||||||||||
Granted (in dollars per share) | $ / shares | ¥ 2.24 | $ 2.50 | ||||||||||||||
Options | Employees and officers | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | |||||||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | |||||||||||||||
Vesting period for remaining 75% shares | 36 months | |||||||||||||||
Number of shares | ||||||||||||||||
Granted (in shares) | 900,000 | |||||||||||||||
Weighted average exercise | ||||||||||||||||
Granted (in dollars per share) | $ / shares | $ 1.705 | |||||||||||||||
Non-vested shares | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Non-vested shares granted | 2,700,000 | |||||||||||||||
Non-vested shares | Employees and officers | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Non-vested shares granted | 2,700,000 | |||||||||||||||
Vesting rate at the end of each year from the grant date over 4 years (as a percent) | 25.00% | |||||||||||||||
Vesting period | 4 years | |||||||||||||||
2005 Share incentive plan | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Shares authorized | 2,894,000 | 3,310,300 | ||||||||||||||
2005 Share incentive plan | Options | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Expiration term | 10 years | |||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | |||||||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | |||||||||||||||
Vesting period for remaining 75% shares | 36 months | |||||||||||||||
2008 Share incentive plan | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Shares authorized | 5,726,763 | 336,307 | 6,063,070 | |||||||||||||
Annual increase in shares reserved (as a percent) | 1.00% | |||||||||||||||
Annual increase in shares reserved (in shares) | 336,307 | |||||||||||||||
Expiration term | 10 years | 10 years | ||||||||||||||
2008 Share incentive plan | Options | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Expiration term | 10 years | |||||||||||||||
Vesting rate on the first anniversary (as a percent) | 25.00% | |||||||||||||||
Vesting rate for remaining awards (as a percent) | 75.00% | |||||||||||||||
Vesting period for remaining 75% shares | 36 months | |||||||||||||||
2008 Share incentive plan | Non-vested shares | ||||||||||||||||
SHARE BASED COMPENSATION | ||||||||||||||||
Vesting rate at the end of each year from the grant date over 4 years (as a percent) | 25.00% | |||||||||||||||
Vesting period | 4 years |
SHARE BASED COMPENSATION - Opti
SHARE BASED COMPENSATION - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Options outstanding at the end of the period | |
Number of Shares | shares | 2,451,067 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.21 |
Remaining Contractual Life | 7 years 11 months 16 days |
Options exercisable as of the end of the period | |
Number of Shares | shares | 916,337 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.63 |
Remaining Contractual Life | 6 years 5 months 12 days |
Exercise price one | |
Options outstanding at the end of the period | |
Number of Shares | shares | 74,000 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 3.60 |
Remaining Contractual Life | 6 months |
Options exercisable as of the end of the period | |
Number of Shares | shares | 74,000 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 3.60 |
Remaining Contractual Life | 6 months |
Exercise price two | |
Options outstanding at the end of the period | |
Number of Shares | shares | 100,000 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 4.75 |
Remaining Contractual Life | 9 months 29 days |
Options exercisable as of the end of the period | |
Number of Shares | shares | 100,000 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 4.75 |
Remaining Contractual Life | 9 months 29 days |
Exercise price three | |
Options outstanding at the end of the period | |
Number of Shares | shares | 7,607 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.69 |
Remaining Contractual Life | 1 year 10 months 28 days |
Options exercisable as of the end of the period | |
Number of Shares | shares | 7,607 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.69 |
Remaining Contractual Life | 1 year 10 months 28 days |
Exercise price four | |
Options outstanding at the end of the period | |
Number of Shares | shares | 1,469,460 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.24 |
Remaining Contractual Life | 7 years 10 months 10 days |
Options exercisable as of the end of the period | |
Number of Shares | shares | 734,730 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 2.24 |
Remaining Contractual Life | 7 years 10 months 10 days |
Exercise price five | |
Options outstanding at the end of the period | |
Number of Shares | shares | 800,000 |
Exercise Price per Share (in dollars per share) | $ / shares | $ 1.71 |
Remaining Contractual Life | 9 years 9 months 18 days |
SHARE BASED COMPENSATION - Assu
SHARE BASED COMPENSATION - Assumptions Used in the Valuation Model (Details) - Options | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Assumptions used in the valuation model | |||
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Expected volatility (as a percent) | 63.00% | 50.00% | 71.00% |
Expected term | 6 years 29 days | 3 months | 6 years 3 months |
Risk-free interest rate (as a percent) | 1.98% | 0.72% | 1.70% |
SHARE BASED COMPENSATION - Tota
SHARE BASED COMPENSATION - Total and Unrecognized Compensation Expense (Details) - Options - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 4,079,082 | ¥ 8,040,512 | ¥ 984,595 |
Total unrecognized compensation expense | ¥ 7,429,354 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 3 years 1 month 6 days |
SHARE BASED COMPENSATION - Non-
SHARE BASED COMPENSATION - Non-vested Share Activity (Details) - Non-vested shares - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Number of shares | |||
Outstanding at the beginning of the period (in shares) | 120,000 | 445,000 | 810,000 |
Granted (in shares) | 2,700,000 | ||
Vested (in shares) | (60,000) | (325,000) | (335,000) |
Forfeited (in shares) | (60,000) | (30,000) | |
Outstanding at the end of the period (in shares) | 2,700,000 | 120,000 | 445,000 |
Weighted average grant date fair value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 2.145 | $ 3.819 | $ 3.989 |
Granted (in dollars per share) | 1.650 | ||
Vested (in dollars per share) | 2.145 | 4.437 | 4.380 |
Forfeited (in dollars per share) | 1.650 | 2.145 | |
Outstanding at the end of the period (in dollars per share) | $ 1.661 | $ 2.145 | $ 3.819 |
Additional disclosures | |||
Total fair value of shares vested | $ 157,176 | $ 831,375 | $ 821,250 |
Number of vested shares withheld upon vesting to satisfy the minimum tax withholding obligation | 11,624 | 51,234 | 54,000 |
SHARE BASED COMPENSATION - Allo
SHARE BASED COMPENSATION - Allocation of Share Based Compensation Expense (Details) - Non-vested shares - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 2,879,321 | ¥ 1,124,310 | ¥ 6,126,721 |
Total unrecognized compensation expense | ¥ 27,417,420 | ||
Weighted average period over which unrecognized compensation expense is expected to be recognized | 3 years 9 months 18 days | ||
Cost of revenues | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 455,115 | 90,002 | 164,741 |
Research and development | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | 495,440 | 75,834 | 179,186 |
Sales and marketing | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | 525,542 | 150,420 | 295,519 |
General and administrative | |||
SHARE BASED COMPENSATION | |||
Total share based compensation expense | ¥ 1,403,224 | ¥ 808,054 | ¥ 5,487,275 |
COMMON SHARES (Details)
COMMON SHARES (Details) $ in Millions | 12 Months Ended | |||||
Mar. 31, 2017CNY (¥)shares | Mar. 31, 2016CNY (¥)shares | Mar. 31, 2015CNY (¥)shares | Sep. 24, 2015USD ($) | Aug. 05, 2014USD ($) | Nov. 01, 2012USD ($) | |
Common shares | ||||||
Repurchase price | ¥ 19,536,028 | ¥ 8,362,136 | ||||
ADS | ||||||
Common shares | ||||||
Authorized amount to be repurchased (in dollars) | $ | $ 3 | $ 5 | $ 5 | |||
Common share | ||||||
Common shares | ||||||
Shares repurchased | shares | 0 | 1,134,264 | 612,314 | |||
Repurchase price | ¥ 0 | ¥ 19,536,028 | ¥ 8,362,136 |
CASH DIVIDENDS (Details)
CASH DIVIDENDS (Details) $ / shares in Units, $ in Millions | May 30, 2014$ / shares | Jul. 31, 2014USD ($) | Jul. 31, 2014CNY (¥) | Mar. 31, 2015CNY (¥) |
Cash dividend | ||||
Total amount of cash distributed in the dividend | $ 9.5 | ¥ 58,349,122 | ¥ 58,349,122 | |
Common share | ||||
Cash dividend | ||||
Special cash dividend declared per share (in dollars per share) | $ 0.205 | |||
ADS | ||||
Cash dividend | ||||
Special cash dividend declared per share (in dollars per share) | $ 0.41 |
STATUTORY RESERVES (Details)
STATUTORY RESERVES (Details) - CNY (¥) | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
STATUTORY RESERVES | ||
Required percentage of after tax profit transferred to general reserve fund | 10.00% | |
Percentage of registered capital limit for transfer of after tax profit to general reserve fund | 50.00% | |
Appropriation of after tax profit to general reserve fund | ¥ 55,164,065 | ¥ 36,431,792 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - CNY (¥) | Jun. 07, 2017 | May 20, 2015 | Aug. 31, 2016 | May 31, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 29, 2016 |
Master Mind Education Company ("Master Mind") | Sublease of Jianwai SOHO office | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Revenue from related parties | ¥ 650,478 | ¥ 575,483 | |||||
VIE | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Consideration for transferring VIE to ATA Learning and Zhongxiao Zhixing | ¥ 10,000,000 | ¥ 10,000,000 | |||||
Consideration transferred from one nominee shareholder to another | ¥ 1,000,000 | ||||||
VIE | Mr. Kevin Xiaofeng Ma | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Proceeds from shareholder | ¥ 10,000,000 | ||||||
ATA Testing | Master Mind Education Company ("Master Mind") | Sublease of Jianwai SOHO office | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Amount of monthly rent | 54,678 | ||||||
Advanced rental fee | 103,655 | 0 | |||||
Rent deposit from related party, recorded in accrued expenses and other payables | ¥ 115,097 | ¥ 115,097 | |||||
ATA Online | Puhua Technology | |||||||
RELATED PARTY TRANSACTIONS | |||||||
Percentage of equity interest acquired | 60.00% | ||||||
Cash consideration | ¥ 2,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Lease Commitments (Details) - CNY (¥) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Year ended March 31: | |||
2,018 | ¥ 14,078,048 | ||
2,019 | 11,194,606 | ||
2,020 | 11,056,698 | ||
2,021 | 1,409,891 | ||
Total | 37,739,243 | ||
Rental expense for operating leases | ¥ 13,206,748 | ¥ 12,803,338 | ¥ 14,096,009 |
Minimum | |||
Lease commitments | |||
Operating lease term | 12 months | ||
Maximum | |||
Lease commitments | |||
Operating lease term | 58 months | ||
Year ended March 31: | |||
Operating lease term which were not renewed | 1 month |
COMMITMENTS AND CONTINGENCIES89
COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - CNY (¥) | Aug. 11, 2011 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Purchase commitments | ||||
License fee | ¥ 7,423,118 | ¥ 4,823,101 | ¥ 4,991,524 | |
Purchase commitments | ||||
Purchase commitments | ||||
Period covered by the purchase agreement | 10 years | |||
2,018 | 4,838,400 | |||
2,019 | 1,296,000 | |||
Total | 6,134,400 | |||
License fee | ¥ 3,485,967 | ¥ 2,642,777 | ¥ 2,282,288 | |
Purchase commitments | Minimum | ||||
Purchase commitments | ||||
Written notice period required to terminate agreement | 12 months |
OPERATING LEASES (Details)
OPERATING LEASES (Details) - Building - CNY (¥) | Mar. 31, 2017 | Mar. 31, 2016 |
Operating leases | ||
Property on Operating Lease, gross | ¥ 53,049,213 | ¥ 53,049,213 |
Less: Accumulated depreciation | (13,812,837) | (12,030,383) |
Property on Operating Lease, net | 39,236,376 | ¥ 41,018,830 |
Future minimum rental income | ||
2,018 | 4,816,386 | |
2,019 | 4,170,397 | |
2,020 | 4,056,594 | |
2,021 | 95,821 | |
Total | ¥ 13,139,198 |
EARNINGS (LOSS) PER COMMON SH91
EARNINGS (LOSS) PER COMMON SHARE (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2017CNY (¥)¥ / sharesshares | Mar. 31, 2016CNY (¥)¥ / sharesshares | Mar. 31, 2015CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net earnings (loss) | $ (1,411,553) | ¥ (9,716,002) | ¥ 26,051,187 | ¥ 23,055,720 |
Less: Dividends paid to participating securities | ¥ | (693,728) | |||
Net earnings (loss) attributable to participating securities | ¥ | (130,924) | |||
Net earnings (loss) available to common shareholders | ¥ | ¥ (9,716,002) | ¥ 25,920,263 | ¥ 22,361,992 | |
Denominator for basic earnings (loss) per share: | ||||
Weighted average common shares outstanding | shares | 45,772,916 | 45,772,916 | 45,635,186 | 45,597,580 |
Denominator for diluted earnings (loss) per share | shares | 45,772,916 | 45,772,916 | 45,635,186 | 45,597,580 |
Basic earnings (loss) per common share (in CNY per share) | (per share) | $ (0.03) | ¥ (0.21) | ¥ 0.57 | ¥ 0.49 |
Diluted earnings (loss) per common share (in CNY per share) | (per share) | $ (0.03) | ¥ (0.21) | ¥ 0.57 | ¥ 0.49 |
Shares issuable under share options (in shares) | shares | 2,451,067 | 2,451,067 | 1,904,067 | 3,885,667 |
ACQUISITION (Details)
ACQUISITION (Details) | Sep. 12, 2016CNY (¥) | Sep. 30, 2016CNY (¥) | Mar. 31, 2017CNY (¥) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) |
Fair value of identifiable assets acquired and liabilities assumed: | |||||||
Goodwill | $ 4,725,125 | ¥ 32,523,983 | ¥ 31,011,902 | ¥ 31,011,902 | |||
Puhua Technology | |||||||
Acquisition | |||||||
Percentage of equity interest acquired | 60.00% | 60.00% | |||||
Cash consideration | ¥ 2,000,000 | ¥ 2,000,000 | |||||
Net revenue contributed to the Company | ¥ 71,349 | ||||||
Net loss contributed to the Company | ¥ 633,513 | ||||||
Fair value of consideration transferred: | |||||||
Cash paid | 2,000,000 | ||||||
Fair value of non-controlling interests | 1,333,333 | ||||||
Fair value of identifiable assets acquired and liabilities assumed: | |||||||
Cash | 2,411,583 | ||||||
Other receivables and prepayments | 746,009 | ||||||
Other non-current assets | 16,848 | ||||||
Total assets acquired | 3,174,440 | ||||||
Other liabilities | (1,353,188) | ||||||
Amount of identifiable net assets | 1,821,252 | ||||||
Goodwill | ¥ 1,512,081 |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) $ / shares in Units, $ in Millions | Jun. 12, 2017USD ($) | Jun. 01, 2017$ / shares | May 30, 2014$ / shares | Jul. 31, 2014USD ($) | Jul. 31, 2014CNY (¥) | Mar. 31, 2015CNY (¥) |
Subsequent Event | ||||||
Total amount of cash distributed in the dividend | $ 9.5 | ¥ 58,349,122 | ¥ 58,349,122 | |||
Common share | ||||||
Subsequent Event | ||||||
Cash dividend declared | $ 0.205 | |||||
ADS | ||||||
Subsequent Event | ||||||
Cash dividend declared | $ 0.41 | |||||
Subsequent Events | ||||||
Subsequent Event | ||||||
Total amount of cash distributed in the dividend | $ | $ 10 | |||||
Subsequent Events | Common share | ||||||
Subsequent Event | ||||||
Cash dividend declared | $ 0.205 | |||||
Subsequent Events | ADS | ||||||
Subsequent Event | ||||||
Cash dividend declared | $ 0.41 |
ATA INC. ("Parent Company") - C
ATA INC. ("Parent Company") - Condensed Balance Sheets (Details) | Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016USD ($) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | Mar. 31, 2014CNY (¥) |
Condensed financial information | ||||||
Prepaid expenses and other current assets | $ 1,065,757 | ¥ 7,335,824 | ¥ 8,268,380 | |||
Total assets | 75,523,029 | 519,840,116 | 470,461,130 | |||
Accrued expenses and other current liabilities | 12,982,166 | 89,358,847 | 57,739,627 | |||
Total liabilities | 18,506,347 | 127,382,888 | 76,230,542 | |||
Common shares | 513,411 | 3,533,912 | 3,530,704 | |||
Treasury shares | (4,029,677) | (27,737,073) | (27,737,073) | |||
Additional paid in capital | 58,494,803 | 402,631,430 | 395,876,282 | |||
Accumulated other comprehensive loss | (3,642,168) | (25,069,771) | (25,174,129) | |||
Retained earnings | 5,523,420 | 38,018,802 | 47,734,804 | |||
Total shareholders' equity attributable to ATA Inc. | 56,859,789 | 391,377,300 | 394,230,588 | |||
Total liabilities and shareholders' equity | 75,523,029 | 519,840,116 | 470,461,130 | |||
ATA INC. | ||||||
Condensed financial information | ||||||
Cash | 73,379 | 505,082 | $ 425,871 | 2,931,353 | ¥ 8,204,099 | ¥ 9,327,438 |
Prepaid expenses and other current assets | 30,524 | 210,100 | 197,252 | |||
Investments in subsidiaries | 56,982,868 | 392,224,481 | 392,077,013 | |||
Total assets | 57,086,771 | 392,939,663 | 395,205,618 | |||
Accrued expenses and other current liabilities | 226,982 | 1,562,363 | 975,030 | |||
Total liabilities | 226,982 | 1,562,363 | 975,030 | |||
Common shares | 513,411 | 3,533,912 | 3,530,704 | |||
Treasury shares | (4,029,677) | (27,737,073) | (27,737,073) | |||
Additional paid in capital | 58,494,803 | 402,631,430 | 395,876,282 | |||
Accumulated other comprehensive loss | (3,642,168) | (25,069,771) | (25,174,129) | |||
Retained earnings | 5,523,420 | 38,018,802 | 47,734,804 | |||
Total shareholders' equity attributable to ATA Inc. | 56,859,789 | 391,377,300 | 394,230,588 | |||
Total liabilities and shareholders' equity | $ 57,086,771 | ¥ 392,939,663 | ¥ 395,205,618 |
ATA INC. ("Parent Company") -95
ATA INC. ("Parent Company") - Condensed Statements of Comprehensive Income (Loss) (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Condensed financial information | ||||
Operating expenses | $ (23,394,077) | ¥ (161,026,108) | ¥ (157,388,148) | ¥ (147,937,753) |
Foreign currency exchange gains (losses), net | (10,572) | (72,769) | (1,505,518) | (1,067,149) |
Earnings before income taxes | 4,159,051 | 28,627,579 | 44,972,666 | 32,630,866 |
Income tax expense | 5,607,419 | 38,596,986 | 18,921,479 | 9,575,146 |
Net income (loss) attributable to ATA Inc. | (1,411,553) | (9,716,002) | 26,051,187 | 23,055,720 |
Comprehensive income (loss) attributable to ATA Inc. | (1,396,392) | (9,611,644) | 28,053,740 | 23,024,967 |
ATA INC. | ||||
Condensed financial information | ||||
Operating expenses | (554,773) | (3,818,608) | (4,292,082) | (4,612,306) |
Investment income (loss) | (956,976) | (6,587,058) | 30,476,370 | 27,609,211 |
Interest expense | (11,029) | (75,918) | ||
Interest income | 82,593 | 568,503 | 79,847 | 144,869 |
Foreign currency exchange gains (losses), net | 28,632 | 197,079 | (212,948) | (86,054) |
Earnings before income taxes | (1,411,553) | (9,716,002) | 26,051,187 | 23,055,720 |
Net income (loss) attributable to ATA Inc. | (1,411,553) | (9,716,002) | 26,051,187 | 23,055,720 |
Other comprehensive income (loss) | 15,161 | 104,358 | 2,002,553 | (30,753) |
Comprehensive income (loss) attributable to ATA Inc. | $ (1,396,392) | ¥ (9,611,644) | ¥ 28,053,740 | ¥ 23,024,967 |
ATA INC. ("Parent Company") -96
ATA INC. ("Parent Company") - Condensed Statements of Cash Flows (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2017CNY (¥) | Mar. 31, 2016CNY (¥) | Mar. 31, 2015CNY (¥) | |
Condensed financial information | ||||
Net cash used in operating activities | $ 8,941,296 | ¥ 61,544,726 | ¥ 64,504,771 | ¥ 45,852,235 |
Cash flows from investing activities : | ||||
Net cash used in investing activities | (13,649,407) | (93,951,601) | (36,801,464) | (52,759,443) |
Cash flows from financing activities : | ||||
Cash paid for repurchase of common shares | (19,536,028) | (8,362,136) | ||
Proceeds from exercise of share options | 3,903,952 | |||
Net cash (used in)/received from financing activities | 1,053,231 | 7,249,603 | (20,310,382) | (63,660,710) |
Effect of foreign exchange rate changes on cash | (9,015) | (62,052) | (20,559) | (1,083,809) |
Net decrease in cash | (3,663,895) | (25,219,324) | 7,372,366 | (71,651,727) |
ATA INC. | ||||
Condensed financial information | ||||
Net cash used in operating activities | (415,358) | (2,858,989) | (3,150,707) | (4,304,976) |
Cash flows from investing activities : | ||||
Collection from subsidiaries: | 58,226 | 400,783 | 17,406,546 | 7,670,574 |
Net cash used in investing activities | 58,226 | 400,783 | 17,406,546 | 7,670,574 |
Cash flows from financing activities : | ||||
Cash paid for repurchase of common shares | (19,536,028) | (8,362,136) | ||
Proceeds from exercise of share options | 3,903,952 | |||
Net cash (used in)/received from financing activities | (19,536,028) | (4,458,184) | ||
Effect of foreign exchange rate changes on cash | 4,640 | 31,935 | 7,443 | (30,753) |
Net decrease in cash | (352,492) | (2,426,271) | (5,272,746) | (1,123,339) |
Cash at beginning of year | 425,871 | 2,931,353 | 8,204,099 | 9,327,438 |
Cash at end of year | $ 73,379 | ¥ 505,082 | ¥ 2,931,353 | ¥ 8,204,099 |