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
On
Following the acquisition of Ocean, all the investment management business of the group is managed through Ocean.
On
The Company is in the process of finalizing an agreement between itself and a
group of buyers (led by
2
Our continued focus is on our core business of mutual fund management, while
increasing our number of managed funds and private portfolio and increasing of
our AUM. Part of our growth depends on the strength of our brand, which the
Company intends to strengthen by increasing our exposure to the general public,
especially through investment advisors in the commercial banks, which constitute
the main channel for funds distribution in
Through our wholly owned subsidiary, Ocean, we operate as a portfolio manager,
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 in the
funds. Our expenses are mainly comprised of payments for distribution,
commissions to banks, third-party platform user fees, salary commissions and
expenses, and commissions to the ISA and the
Recently Issued Accounting Pronouncements
Management reviewed currently issued pronouncements during the nine months ended
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, 2022 and 2021. (In millions) Nine Months Ended Nine Months Ended September 30, 2022 September 30, 2021 Beginning Balance $ 282.70 $ 174.50 Gross inflows/ outflows, net 122.15 62.77 Market appreciation (depreciation)(1) (120.16 ) 28.44 Additional AUM from acquisitions - End Balance $ 284.69 $ 265.70
(1) Market appreciation (depreciation) includes investment gains (losses) on
assets under management, the impact of foreign exchange rates and net
reinvested dividends.
3
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
The following table provides a year-over-year breakout of the material components of our general and administrative expenses:
Nine Months Ended Nine Months Ended
September 30, 2022 September 30, 2021
(in thousands) (in thousands)
Components of G&A Expenses: $ $
Wages 20 51
Travel and vehicle expenses 13 11
Communication and office expenses 46 62
Services and professional fees 363 365
One off expense 20 29
Office rent 43 44
Other expenses 28 49
Total G&A expenses $ 533 $ 611
The changes in General and Administrative Expenses are primarily due to the following event:
? Nine months ended
VAT assessment.
? Nine months ended
additional attorney fees regarding future transactions sale of main activity to
related parties as mentioned above.
? Expenses that emerged from the merger in 2020 between Ocean and Yetsira was
reduced, and a moderate increase in expanses is attributed to a gradual
increase in the company growing operations and increased AUM.
Net Loss
The Company realized a net Income of
4
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 provided of
The Company's investing activities net cash used of
Off- Balance Sheet Arrangements
The Company currently does not have any off-balance sheet arrangements.
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