The last report contained information about the acquisition of 3 schools, the acquisition of Changchun Nuoya and Harbin Nuoya which were completed by the end of May 2011 for approximately $2.5 million and the Company purchased 60% of the equity interests of Tianlang for RMB 35 million (approximately $5.3 million).
In the same report we find the following: As of March 31, 2013 and 2012, the total un-distributable net assets of ZHTC, Changchun Nuoya and Harbin Nuoya amounted to $33,829,591 and $33,169,873, respectively,
my questions are the following:
1- do we read the number $33,829,591 like 33 million$ or 33 thousand dollars?
2- is this number consolidated in the financial statements?
3- what do they mean by they are private schools not operated for reasonable returns; therefore, are not allowed to distribute dividends? what is the reason?, there are laws for example that prevent such dividends?and when they will be allowed to collect those dividends?
4-can we have the address of those schools and if they have a website we would like to have a look at it?
I did not read the 10Q that closely; but I did take Advance Accounting in college and if I recall; they are consolidating their books for the year end reporting. Since these acquisitions did not make any money in that current year; the acquisitions cannot issue any dividends back to the holding company is my take on it! The undistributed net assets is the total assets minus total liabilities or net worth of the company. Not sure if this helps you dealer!
Thanks a lot Harry it did help me,but the only question that remains why the assets themselves are not consolidated in the holding company's books regardless of dividends??? and another thing how come they bought those schools for about 8.5million dollars in 2011 and the year 2012 we see them amount to 33,169,873$ and then in 2013 we see this number amount to $33,829,591 ,so how come they didn't make profit ,isn't this awkward the numbers are not logical or am i wrong!!!!
Dealer, At the end of the day we need some kind of miracle. How can sales plummet as bad as they have over the last 18 months. They have lost 80% of their sales and are still heading in the wrong direction. We all hope that this new online platform is going to save the day but I'm not sure we can bet on this happening if you look at history as our guide. Tough situation and we need a Hail Mary by Doug Flutie (If your a sports fan) to save the day.
Great question and I'm not sure we will know unless Rene from Christiansen answers it for us? The other option is to have one of us or someone else ask the question on the next quarterly conference call? Cloris Li will not return e-mails as I for one have tried over 10 times with zero replies. She is a sorry excuse for a CFO and should be ashamed of herself. This is not Microsoft or Intel and it's hard to believe that a CFO of a little company such as CEAI can't get back to some of her shareholders. JDT