CHINA EDUCATION RESOURCES INC. China Education Resources Inc.
Condensed Interim Consolidated Financial Statements
(Expressed in U.S. Dollars)
Period Ended September 30, 2021
(Unaudited)
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Management's Responsibility for Financial Reporting
The accompanying unaudited condensed interim consolidated financial statements of China Education Resources Inc. were prepared by management in accordance with IAS 34 Interim Financial Reporting using accounting policies consistent with International Financial Reporting Standards appropriate in the circumstances. Management acknowledges responsibility for the preparation and presentation of the unaudited condensed interim consolidated financial statements, including responsibility for significant accounting judgments and estimates and the choice of accounting principles and methods that are appropriate to the Company's circumstances.
Management has established processes, which are in place to provide them sufficient knowledge to support management representations that they have exercised reasonable diligence that (i) the unaudited condensed interim consolidated financial statements do not contain any untrue statement of material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it is made, as of the date of and for the periods presented by the unaudited condensed interim consolidated financial statements and (ii) the unaudited condensed interim consolidated financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company, as of the date of and for the periods presented by the unaudited interim condensed consolidated financial statements.
The Board of Directors is responsible for reviewing and approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company and for ensuring that management fulfills its financial reporting responsibilities. An Audit Committee assists the Board of Directors in fulfilling this responsibility. The Audit Committee meets with management to review the financial reporting process and the unaudited condensed interim consolidated financial statements together with other financial information of the Company. The Audit Committee reports its findings to the Board of Directors for its consideration in approving the unaudited condensed interim consolidated financial statements together with other financial information of the Company for issuance to the shareholders.
Management recognizes its responsibility for conducting the Company's affairs in compliance with established financial standards, and applicable laws and regulations, and for maintaining proper standards of conduct for its activities.
2
Notice to Reader
Under National Instrument 51-102, Part 4, subsection 4.3(3)(a), if an auditor has not performed a review of the condensed interim consolidated financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.
The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by and are the responsibility of the Company's management.
The Company's independent auditor has not performed a review of these unaudited condensed interim consolidated financial statements.
3
CHINA EDUCATION RESOURCES INC.
Condensed Interim Consolidated Statements of Financial Position
September 30, 2021 and December 31, 2020
(Expressed in U.S. Dollars) | |||||
AS AT | September 30, | December 31, | |||
Note | 2021 | 2020 | |||
(Unaudited) | (Audited) | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 1,373,303 | $ | 2,406,396 | |
Restricted cash | 21 | 899,888 | 892,053 | ||
Accounts and other receivables | |||||
(net of allowance for expected credit | |||||
loss of $1,145,376, December 31, | |||||
2020: $1,133,968) | 7 | 5,812,619 | 3,052,374 | ||
Prepaid expenses and deposits | 728,550 | 755,949 | |||
Total current assets | 8,814,360 | 7,106,772 | |||
Non-current assets | |||||
Right - of - use asset | 8 | 45,854 | 74,582 | ||
Equipment | 8 | 32,795 | 36,671 | ||
Total non-current assets | 78,649 | 111,253 | |||
Total assets | $ | 8,893,009 | $ | 7,218,025 | |
Liabilities | |||||
Current liabilities | |||||
Trade and other payables | 11 | $ | 4,383,748 | $ | 3,031,360 |
Deferred revenue | 73,009 | 10,576 | |||
Taxes payable | 12 | 101,611 | 67,546 | ||
Lease obligations - current portion | 13 | 37,992 | 42,697 | ||
Loans payable | 14 | 822,771 | 721,007 | ||
Loans payable - related parties | 19 | 433,358 | 413,156 | ||
Due to related parties | 19 | 2,466,613 | 2,306,221 | ||
Total current liabilities | 8,319,102 | 6,592,563 | |||
Non-current liabilities | |||||
Lease obligation | 13 | 7,168 | 31,061 | ||
Deferred tax liability | 312,913 | 309,797 | |||
Total non-current liabilities | 320,081 | 340,858 | |||
Total liabilities | $ | 8,639,183 | $ | 6,933,421 | |
Shareholders' Equity (Deficiency) | |||||
Share capital | 9 | 29,455,512 | 29,455,512 | ||
Contributed surplus | 2,766,626 | 2,732,948 | |||
Accumulated other comprehensive income | 905,557 | 872,772 | |||
Deficit | (33,734,290) | (33,774,706) | |||
Total shareholders' deficiency attributable to shareholders of the Company | (606,595) | (713,474) | |||
Non-controlling interest | 20 | 860,421 | 998,078 | ||
Total Equity (Deficiency) | 253,826 | 284,604 | |||
Total liabilities and shareholders' equity | $ | 8,893,009 | $ | 7,218,025 | |
Going Concern - Note 2 | |||||
Contingent Liability - Note 21 | |||||
Approved by the Board: | |||||
"Chengfeng Zhou" | "Danny Hon" | ||||
Director | Director |
(The accompanying notes are an integral part of these consolidated financial statements)
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CHINA EDUCATION RESOURCES INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the three months and nine months ended September 30, 2021 and 2020
(Unaudited)
(Expressed in U.S. Dollars) | |||||||||
Note | 2021 | 2020 | 2021 | 2020 | |||||
Revenue | |||||||||
Book sales and distribution services | $ | 892,129 | $ | 360,034 | $ | 4,813,425 | $ | 3,504,784 | |
Online products | 922,097 | 719,711 | 2,224,051 | 1,908,736 | |||||
1,814,226 | 1,079,745 | 7,037,476 | 5,413,520 | ||||||
Cost of sales | |||||||||
Book sales and distribution services | (713,072) | (221,336) | (3,231,726) | (2,394,776) | |||||
Online products | (576,771) | (226,207) | (957,660) | (483,970) | |||||
Gross profit | 524,383 | 632,202 | 2,848,090 | 2,534,774 | |||||
Depreciation | 8 | (11,789) | (16,142) | (38,139) | (48,162) | ||||
General and administrative | 15 | (461,904) | (324,412) | (1,223,435) | (915,840) | ||||
Selling commission, marketing and copyrights | 16 | (167,969) | (509,048) | (1,695,644) | (1,219,778) | ||||
Operating profit (loss) | (117,279) | (217,400) | (109,128) | 350,994 | |||||
Finance income | 8,124 | 4,044 | 26,945 | 18,336 | |||||
Finance costs | (15,711) | (13,750) | (48,174) | (39,222) | |||||
Other expense | - | - | - | (27) | |||||
Other income | 18,747 | 90 | 22,252 | 15,601 | |||||
Net finance income (cost) | 11,160 | (9,616) | 1,023 | (5,312) | |||||
Net income (loss) before income taxes | (106,119) | (227,016) | (108,105) | 345,682 | |||||
Income tax expenses | - | (8,031) | - | (8,031) | |||||
Net income (loss) for the period | $ | (106,119) | $ | (235,047) | $ | (108,105) | $ | 337,651 | |
Other comprehensive income (loss) for the period, net of income taxes | |||||||||
Unrealized exchange gain (loss) on translation | |||||||||
of foreign operations | 82,356 | 73,737 | 43,649 | 149,243 | |||||
Other comprehensive income (loss) for the period, net of income tax | 82,356 | 73,737 | 43,649 | 149,243 | |||||
Compreshensive income (loss) for the period | $ | (23,763) | $ | (161,310) | $ | (64,456) | $ | 486,894 | |
Net income (loss) attributable to: | |||||||||
Shareholders of the Company | $ | (37,499) | $ | (92,642) | $ | 40,416 | $ | 373,690 | |
Non-controlling interest | 20 | (68,620) | (142,405) | (148,521) | (36,039) | ||||
Net income (loss) for the period | $ | (106,119) | $ | (235,047) | $ | (108,105) | $ | 337,651 | |
Comprehensive income (loss) attributable to: | |||||||||
Shareholders of the Company | $ | 46,270 | $ | (55,097) | $ | 73,201 | $ | 500,953 | |
Non-controlling interest | 20 | (70,033) | (106,213) | (137,657) | (14,059) | ||||
Comprehensive income (loss) for the period | $ | (23,763) | $ | (161,310) | $ | (64,456) | $ | 486,894 | |
Earnings (loss) per share | |||||||||
Basic and diluted earnings (loss) per share | $ | (0.00) | $ | (0.00) | $ | 0.00 | $ | 0.01 | |
Weighted average number of common shares used to calculate | |||||||||
basic and diluted earnings (loss) per share | 47,364,983 | 47,364,983 | 47,364,983 | 47,364,983 |
(The accompanying notes are an integral part of these consolidated financial statements)
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China Education Resources Inc. published this content on 30 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 November 2021 01:20:03 UTC.
