CHINA EDUCATION ALLIANCE, INC. This Quarterly Report contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond our control, which may include statements about our:
? business strategy;
? financial strategy;
? intellectual property;
? production;
? future operating results; and
? plans, objectives, expectations and intentions contained in this report
that are not historical.
All statements, other than statements of historical fact included in this report, regarding our strategy, intellectual property, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words "could," "believe," "anticipate," "intend," "estimate," "expect," "project" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this report. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this report are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. These statements may be found under "Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as in this report generally. Actual events or results may differ materially from those discussed in forward-looking statements as a result of various factors. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this filing will in fact occur.
Organizational History
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On
Following the acquisition of Ocean, all the investment management business of the group is managed through Ocean.
The acquisition implements the Company's vision of becoming a leading investment
company in
The company continue to focus on its mutual fund management business, while increasing our number of managed funds and private portfolio which resulted in accelerated growth of our AUM. Part of our growth depends on the strength of our brand, which the Company intends to continue to strengthen by increasing our exposure to the general public, especially through investment advisors in the commercial banks, and by other public relations activities and advertising.
The board of directors examines from time to time expanding the companies areas of activities by locating synergistic opportunities for our existing areas of activity and establishing additional parallel investment opportunities. In addition, we may pursue the acquisition of other unrelated businesses in the financial sector.
Through our wholly owned subsidiary, Ocean, we operate as a portfolio manager.
Ocean is licensed by the
We generate revenue primarily from management fees paid by our unitholders or
clients, which fees are based upon a certain percentage of their assets under
management. Our expenses are mainly comprised of payments for distribution
commissions to banks, third-party platform user fees, salaries, employees and
third parties commissions and expenses, and ISA and the
On
Recently Issued Accounting Pronouncements
Management reviewed currently issued pronouncements during the three months
ended
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Results of Operations for the nine Months Ended
Revenue
For the nine months ended
Assets Under Management and Investment Performance
The following table reflects the changes in our AUM for the nine Months endedSeptember 30, 2021 , and 2020. (In millions) For the nine For the nine months ended months ended September 30, 2021 September 30, 2020 Beginning Balance $ 174.49 $ 63.20 Gross inflows / outflows, net 62.77 (6.37 ) Market appreciation (depreciation) (1) 28.44 (2.19 ) End Balance $ 265.70 $ 54.64 (1) Market appreciation (depreciation) includes investment gains (losses) on assets under management, the impact of foreign exchange rates and net reinvested dividends.
Our total AUM increased by
Cost of Revenues
For the nine months ended
Marketing Expenses
For the nine months ended
General and Administrative Expenses
For the nine months ended
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The following table provides a year-over-year breakout of the material components of our general and administrative expenses:
For nine For nine
months ended months ended
September 30, 2021 September 30, 2020
(in thousands) (in thousands)
Components of G&A Expenses: $ $
Wages 51 62
Travel and vehicle expenses 11 18
Communication and office expenses 62 21
Services and professional fees (1) 365 348
One off expense (2) 29 65
Office rent 44 35
Insurance Fees 39 21
Other expenses 10 11
Total G&A expenses $ 611 $ 581
(1) The increase in services and professional fees is primarily due to the following event:
On
(2) Nine months ended
Net Loss
The Company realized a net loss of
After taking into account foreign currency translation adjustments, which
resulted in other comprehensive expense of
Liquidity and capital resources
As of
Stockholders' equity as of
The Company's accumulated deficit was
Liquidity and capital resources
The Company's operating activities resulted in net cash used of
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The Company's investing activities used net cash of
Off- Balance Sheet Arrangements
The Company currently does not have any off-balance sheet arrangements.
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