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6-K 1 tm2429499d1_6k.htm FORM 6-K

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of November 2024

 

Commission File Number: 001-42098

 

JIADE LIMITED

 

Unit 2-02, Puningdun Business Plaza, No. 1702 and 1706 Minjiang Road
Jinjiang District, Chengdu City, Sichuan Province
The People’s Republic of China, 610000 

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F x Form 40-F ¨

 

 


 

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Unaudited Interim Condensed Consolidated Financial Statements of JIADE LIMITED for the Six Months Ended June 30, 2024 and 2023
99.2   Press release - JIADE LIMITED Reports the First Half of Fiscal Year 2024 Unaudited Financial Results

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  JIADE LIMITED
     
Date: November 27, 2024 By: /s/ Yuan Li
  Name: Yuan Li
  Title: Chief Executive Officer

 

 

EX-99.1 2 tm2429499d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

JIADE LIMITED 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

    December 31,     June 30,     June 30,  
    2023     2024     2024  
                   
    RMB     RMB     USD  
CURRENT ASSETS:                        
Cash and cash equivalents     7,081,937       62,636,592       8,619,082  
Accounts receivable     7,819,344       9,398,484       1,293,274  
Deferred IPO costs     7,869,926              
Prepayment and other current assets     34,151       946,358       130,223  
Due from related parties     8,000       20,000       2,752  
TOTAL CURRENT ASSETS     22,813,358       73,001,434       10,045,331  
Non-current assets                        
Property and equipment, net     160,303       91,080       12,533  
Intangible assets, net     1,989,722       1,977,254       272,079  
Right-of-use assets – operating lease     200,539       102,973       14,170  
Other long-term assets     67,757       21,450       2,952  
TOTAL ASSETS     25,231,679       75,194,191       10,347,065  
LIABILITIES AND EQUITY                        
CURRENT LIABILITIES:                        
Bank loans     3,000,000       2,000,000       275,209  
Accounts payable     1,553       26,278       3,616  
Payroll payables     676,618       938,892       129,196  
Other payables     591,562       542,359       74,631  
Deferred revenue     58,293       -       -  
Operating lease liabilities – current     152,539       93,652       12,887  
Taxes payable     2,929,371       3,942,801       542,547  
Due to related parties.           19,300       2,656  
TOTAL CURRENT LIABILITIES     7,409,936       7,563,282       1,040,742  
Long-term loans – non-current portion                  
Operating lease liabilities – long-term                  
TOTAL LIABILITIES     7,409,936       7,563,282       1,040,742  
COMMITMENTS AND CONTINGENCIES EQUITY:                        
Ordinary shares, US$0.01 par value, 200,000,000 shares authorized, 22,235,471 and 24,535,471 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively     1,542,964       1,709,070       245,355  
Additional paid-in capital     2,729,084       50,147,911       6,900,582  
Statutory reserves     1,494,652       2,012,007       276,861  
Ordinary shares subscribed     (1,542,964 )     (1,542,964 )     (222,355 )
Subscription receivable           (3,270,240 )     (450,000 )
Retained earnings     13,451,868       18,108,060       2,491,752  
Accumulated other comprehensive income           275,347       37,747  
TOTAL EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     17,675,604       67,439,191       9,297,942  
NON-CONTROLLING INTERESTS     146,139       191,718       26,381  
TOTAL EQUITY     17,821,743       67,630,909       9,306,323  
TOTAL LIABILITIES AND EQUITY     25,231,679       75,194,191       10,347,065  

 


 

JIADE LIMITED 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF 

INCOME AND COMPREHENSIVE INCOME

 

    For the six months ended June 30,  
    2023     2024     2024  
                   
    RMB     RMB     USD  
Revenue – third parties     6,673,176       8,921,488       1,227,638  
Revenue – related party     853,089              
Revenue     7,526,265       8,921,488       1,227,638  
COSTS AND EXPENSES                        
Direct cost of revenue     430,353       400,313       55,085  
Selling expenses     235,231       259,040       35,645  
General and administrative expenses     1,099,705       1,550,235       213,319  
Research and development expenses     188,510       213,122       29,327  
Total costs and expenses     1,953,799       2,422,710       333,376  
INCOME FROM OPERATIONS     5,572,466       6,498,778       894,262  
OTHER INCOME (EXPENSES)                        
Interest income     516       15,639       2,152  
Interest expense     (32,492 )     (49,642 )     (6,831 )
Other loss, net     (173,577 )     (288,050 )     (39,637 )
Total other expenses, net     (205,553 )     (322,053 )     (44,316 )
INCOME BEFORE INCOME TAXES     5,366,913       6,176,725       849,946  
INCOME TAXES PROVISION     784,961       957,599       131,770  
NET INCOME     4,581,952       5,219,126       718,176  
Less: net income attributable to non-controlling interest     37,572       45,579       6,272  
NET INCOME ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     4,544,380       5,173,547       711,904  
                         
OTHER COMPREHENSIVE INCOME                        
Foreign currency translation adjustment           275,347       37,889  
TOTAL COMPREHENSIVE INCOME     4,581,952       5,494,473       756,065  
Less: comprehensive income attributable to non-controlling interest     37,572       45,579       6,272  
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     4,544,380       5,448,894       749,793  
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY*                        
Basic and diluted     0.20       0.21       0.03  
Weighted average number of shares outstanding                        
Basic and diluted     22,235,471       24,535,471       24,535,471  

 

 

EX-99.2 3 tm2429499d1_ex99-2.htm EXHIBIT 99.2

 

Exhibit 99.2

 

JIADE Limited Reports Unaudited Financial Results for The Six Months Ended June 30, 2024

 

Overview

 

JIADE LIMITED (the “Company,” “we,” “our,” or “us”) (Nasdaq: JDZG) is an exempted company with limited liability incorporated in the Cayman Islands and not a Chinese operating company, and this corporate structure involves unique risks to investors. As an exempted company with no material operations of our own, we conduct all of our operations primarily through our subsidiaries in the People’s Republic of China (the “PRC”); namely, Shenzhen Kebiao Technology Co., Ltd., a limited liability company organized under the laws of the PRC (“Shenzhen Kebiao”), Sichuan Jiade Zhigao Technology Co., Ltd., a limited liability company organized under the laws of the PRC (“Jiade Zhigao”), and Sichuan Kebiao Technology Co., Ltd., a PRC limited liability company (“Kebiao Technology). Our PRC subsidiaries are companies that specialize in providing one-stop comprehensive education supporting services to adult education institutions, through a wide spectrum of software platform and auxiliary solutions, to meet the evolving needs of their customers in the rapidly changing adult education industry.

 

Our PRC subsidiaries’ services are primarily offered through the Kebiao Technology Educational Administration Platform (the “KB Platform”), which facilitates streamlined information and data management throughout the teaching cycle of adult education services, from pre-enrollment to post-graduation. The KB Platform has enabled adult education institutions to improve student management efficiency, save labor costs, and reduce human errors in data management. The KB Platform supports a broad range of functions, such as enrollment consultation, student information collection, enrollment status management, learning progress management, grade inquiry, and graduation management.

 

As part of the one-stop comprehensive education supporting services, our PRC subsidiaries also provide auxiliary solutions to adult education institutions, which encompass teaching support services throughout the entire teaching cycle and related exam administration services. Specifically, our PRC subsidiaries offer pre-enrollment guidance on school/major selection and application strategy development, training for entrance exams, as well as assistance in the application process. They also provide offline tutoring, exam administration services, and guidance on graduation thesis preparation.

 

Our PRC subsidiaries place a great premium on technology research and development. As of the date of this report, our PRC subsidiaries have acquired 36 software copyrights since their incorporation in April 2020. In November 2022, Kebiao Technology was designated a High and New Technology Enterprise (“HNTE”) (No. GR202251000919) by Sichuan Provincial Department of Science and Technology, Sichuan Provincial Department of Finance, and Sichuan Provincial Tax Bureau of the State Taxation Administration. This certification is awarded to companies that have engaged in continuous research and development and technology commercialization leading to significant independent intellectual property rights within certain high-tech sectors.

 

Our PRC subsidiaries’ business has experienced rapid growth since their inception. For the six months ended June 30, 2023 and 2024, we had total revenue of approximately RMB7,526,000 and RMB8,921,000 (US$1,228,000), respectively. Our net income was approximately RMB4,582,000 and RMB5,219,000 (US$718,000) for the six months ended June 30, 2023 and 2024. As of December 31, 2023 and June 30, 2024, our PRC subsidiaries had cash of approximately RMB7,082,000 and RMB62,637,000 (US$8,619,000), respectively, and had working capital of approximately RMB15,403,000 and RMB65,438,000 (US$9,005,000), respectively. As of June 30, 2024, our PRC subsidiaries had collectively provided technological support services to over 17 adult education institutions and had collectively provided support services to approximately 80,000 students.

 

 


 

Results of Operations for the Six Months Ended June 30, 2024

 

The following is a summary of our result of operations for the six months ended June 30, 2023 and 2024, respectively.

 

    For the six months ended June 30,  
    2023     2024     2024  
                   
    RMB     RMB     US$  
Revenue - third parties     6,673,176       8,921,488       1,227,638  
Revenue - related party     853,089       -       -  
Revenue     7,526,265       8,921,488       1,227,638  
                         
COSTS AND EXPENSES                        
Direct cost of revenue     430,353       400,313       55,085  
Selling expenses     235,231       259,040       35,645  
General and administrative expenses     1,099,705       1,550,235       213,319  
Research and development expenses     188,510       213,122       29,327  
Total costs and expenses     1,953,799       2,422,710       333,376  
INCOME FROM OPERATIONS     5,572,466       6,498,778       894,262  
                         
OTHER INCOME (EXPENSES)                        
Interest income     516       15,639       2,152  
Interest expense     (32,492 )     (49,642 )     (6,831 )
Other expenses, net     (173,577 )     (288,050 )     (39,637 )
Total other income (expenses), net     (205,553 )     (322,053 )     (44,316 )
INCOME BEFORE INCOME TAXES     5,366,913       6,176,725       849,946  
INCOME TAXES PROVISION     784,961       957,599       131,770  
NET INCOME     4,581,952       5,219,126       718,176  

 

2


 

Revenue

 

    For the six months ended June 30,              
    2023     2024     Increase/(Decrease)  
Revenue   RMB     %     RMB     US$     %     RMB     %  
Third parties   6,673,176     89 %   8,921,488     1,227,638     100 %   2,248,312     34 %
Related party   853,089     11 %   -     -     -     (853,089 )   (100 )%
Total revenue   7,526,265     100 %   8,921,488     1,227,638     100 %   1,395,223     19 %

 

Our PRC subsidiaries generate revenue from providing adult education supporting services. Our PRC subsidiaries enter into service contracts with adult education institutions to provide education supporting services through (i) software platform solutions, which facilitate streamlined information and data management throughout the teaching cycle of adult education services, from pre-enrollment to post- graduation, and (ii) auxiliary solutions to students designated by adult education institutions, which encompass teaching support services throughout the entire teaching cycle and related exam administration services.

 

Total revenue increased by approximately RMB1,395,000 (US$192,000), or 19%, to approximately RMB8,921,000 (US$1,228,000) for the six months ended June 30, 2024 from approximately RMB7,526,000 for the six months ended June 30, 2023. The increase in revenue was mainly attributable to: (i) an increase in revenue generated from third parties, amounting to approximately RMB2,248,000 (US$309,000), due to the growing scale of adult education institutions served by our PRC subsidiaries (for the six months ended June 30, 2024, our PRC subsidiaries served 12 adult education institutions with an aggregate of 72,096 students, compared to 12 adult education institutions with approximately 48,121 students for the six months ended June 30, 2023); (ii) partially offset by a decrease in revenue generated from a related party, amounting to approximately RMB853,000 (US$117,000), as a related party was reclassified as a third party effective February 20, 2023,while the overall revenue generated from the former related party, Chengdu Jinjiang New Vision Training School, increased by approximately RMB54,000 (US$7,000) for the six months ended June 30, 2024, compared to the six months ended June 30, 2023; and (iii) partially offset by a decrease in the average service price per student from RMB156 for the six months ended June 30, 2023 to RMB124 for the six months ended June 30, 2024, primarily due to discounts provided by our PRC subsidiaries to certain customers in 2024.

 

The following table sets forth the breakdown of our net revenue for the periods presented:

 

    For the six months ended June 30,              
    2023     2024     Increase/(Decrease)  
Revenue   RMB     %     RMB     US$     %     RMB     %  
National Unified                                          
Examination for College                                          
Admissions for Adults   2,523,885     34 %   3,276,258     450,828     37 %   752,373     30 %
Open University of China   4,460,839     59 %   2,932,356     403,506     33 %   (1,528,483 )   (34 )%
Self-taught Higher                                          
Education Examinations   506,945     7 %   2,695,576     370,924     30 %   2,188,631     432 %
Online education   34,596     0 %   17,298     2,380     0 %   (17,298 )   (50 )%
Total revenue   7,526,265     100 %   8,921,488     1,227,638     100 %   1,395,223     19 %

 

Revenue from providing services related to National Unified Examination for College Admissions increased by approximately RMB752,000 (US$103,000), or 30%, primarily due to (i) the increased number of students served from 17,171 for the six months ended June 30, 2023 to 22,919 for the six months ended June 30, 2024, mainly as a result of our stronger business relationships with existing adult education institution customers and (ii) the average service price per student (for services related to National Unified Examination for College Admissions for Adults) remaining stable from RMB147 for the six months ended June 30, 2023 to RMB143 for the six months ended June 30, 2024.

 

3


 

Revenue from providing services related to the Open University of China decreased by approximately RMB1,528,000 (US$210,000), or 34%, primarily due to (i) the decrease in the average service price per student (for services related to the Open University of China) from RMB160 for the six months ended June 30, 2023 to RMB88 for the six months ended June 30, 2024, and (ii) partially offset by an increase in the number of students served from 27,852 for the six months ended June 30, 2023 to 33,353 for the six months ended June 30, 2024. The reduction in the service price per student was mainly due to the increased number of graduating students we served, for whom we charged lower fees.

 

Revenue from providing services related to Self-taught Higher Education Examinations increased by approximately RMB2,189,000 (US$301,000), or 432%, primarily due to (i) the increased number of students served from 3,031 for the six months ended June 30, 2023 to 15,757 for the six months ended June 30, 2024, mainly as a result of our stronger business relationships with existing adult education institution customers, and (ii) the average service price per student (for services related to National Unified Examination for College Admissions for Adults) remaining stable from RMB167 for the six months ended June 30, 2023 to RMB171 for the six months ended June 30, 2024.

 

Revenue from providing services related to online education decreased by approximately RMB17,000 (US$2,000), or 50%, primarily due to the decrease in the average service price per student (for services related to online education) from RMB516 for the six months ended June 30, 2023 to RMB258 for the six months ended June 30, 2024. The reduction in the service price per student was mainly due to the enhanced competition and the discounts granted by the PRC subsidiaries to certain customers.

 

Costs and expenses

 

Our costs and expenses consist of direct cost of revenue, selling expenses, general and administrative expenses, and research and development expenses.

 

Direct Cost of revenue

 

The following table sets forth the breakdown of our direct cost of revenue for the six months ended June 30, 2023 and 2024:

 

    For the six months ended June 30,              
    2023     2024     Increase/(Decrease)  
Direct cost of revenue   RMB     %     RMB     US$     %     RMB     %  
Cost of services   67,219     16 %   43,219     5,947     11 %   (24,000 )   (36 )%
Employee benefit costs   325,323     76 %   338,615     46,595     85 %   13,292     4 %
Others   37,811     8 %   18,479     2,543     4 %   (19,332 )   (51 )%
Total direct cost of revenue   430,353     100 %   400,313     55,085     100 %   (30,040 )   (7 )%

 

Total direct cost of revenue decreased by approximately RMB30,000 (US$4,000), or 7%, from approximately RMB430,000 for the six months ended June 30, 2023 to approximately RMB400,000 (US$55,000) for the six months ended June 30, 2024, primarily due to fewer customized services, such as training services purchased by our PRC subsidiaries in the first half of 2024.

 

Cost of services decreased by approximately RMB24,000 (US$3,000), or 36%, from approximately RMB67,000 for the six months ended June 30, 2023 to approximately RMB43,000 (US$6,000) for the six months ended June 30, 2024, primarily due to fewer training services purchased by our PRC subsidiaries to meet their students’ specific requirements, such as in-person courses.

 

Employee benefit costs increased by approximately RMB13,000 (US$2,000), or 4%, from approximately RMB325,000 for the six months ended June 30, 2023 to approximately RMB339,000 (US$47,000) for the six months ended June 30, 2024, primarily because our PRC subsidiaries increased the staff salaries.

 

Other costs primarily represented short rental expenses related to exams, student card photo production fees, travelling expenses, business taxes and surcharges and others.

 

4


 

Selling expenses

 

    For the six months ended June 30,            
    2023     2024     Increase/(Decrease)  
Selling expenses   RMB   %     RMB   US$   %     RMB   %  
Employee benefits   158,395   67 %   148,316   20,409   57 %   (10,079 ) (6 )%
Entertainment expenses   31,979   14 %   67,974   9,353   26 %   35,995   113 %
Depreciation   42,750   18 %   42,750   5,883   17 %   -   -  
Others   2,107   1 %   -   -   0 %   (2,107 ) (100 )%
Total selling expenses   235,231   100 %   259,040   35,645   100 %   23,809   10 %

 

Total selling expenses increased by approximately RMB24,000 (US$3,000), or 10%, to approximately RMB259,000 (US$36,000) for the six months ended June 30, 2024, compared to approximately RMB235,000 for the six months ended June 30, 2023. The increase in selling expenses was mainly due to increased entertainment expenses and partially offset the decrease in employee benefits. The increased entertainment expenses were due to more frequent communication with client. The decreased employee benefits were mainly due to a decrease in staff salaries.

 

General and administrative expenses

 

    For the six months ended June 30,            
    2023     2024     Increase/(Decrease)  
General and administrative
expenses
  RMB   %     RMB   US$   %     RMB   %  
Employee benefits   383,117   35 %   692,472   95,287   45 %   309,355   81 %
Consulting expenses   390,515   36 %   483,766   66,568   31 %   93,251   24 %
Annual listing fee   -   -     69,815   9,607   5 %   69,815   NA  
Rental expenses   171,244   16 %   97,104   13,362   6 %   (74,140 ) (43 )%
Depreciation   57,827   5 %   23,338   3,211   2 %   (34,489 ) (60 )%
Office expenses   26,509   2 %   36,768   5,059   2 %   10,259   39 %
Travelling expenses   11,828   1 %   57,524   7,916   4 %   45,696   386 %
Others   58,665   5 %   89,448   12,309   5 %   30,783   52 %
Total general and administrative expenses   1,099,705   100 %   1,550,235   213,319   100 %   450,530   41 %

 

Total general and administrative expenses increased by approximately RMB451,000 (US$62,000), or 41%, to approximately RMB1,550,000 (US$213,000) for the six months ended June 30, 2024 from approximately RMB1,100,000 for the six months ended June 30, 2023. As a percentage of revenue, general and administrative expenses were approximately 15% and 17% of our total revenue for the six months ended June 30, 2023 and 2024, respectively. The increase in total general and administrative expenses was primarily attributable to: (i) the increase in salary and employee benefits of our management department resulting from the increase in compensation of independent directors and the recruitment of additional employees for our management department, and the increase in listing fees and expenses related to the celebration banquet for successfully listing the Company’s ordinary shares on the Nasdaq Capital Market, and (ii) partially offset by the decrease in rental expenses and depreciation expenses resulting from early termination of a property lease.

 

5


 

Research and development expenses

 

    For the six months ended June 30,            
    2023     2024     Increase/(Decrease)  
Research and development
expenses
  RMB   %     RMB   US$   %     RMB   %  
Employee benefits   134,404   71 %   171,073   23,540   80 %   36,669   27 %
Depreciation   15,394   8 %   5,185   713   2 %   (10,209 ) (66 )%
Office expenses   4,403   2 %   7,876   1,084   4 %   3,473   79 %
Consulting expenses   -   -     19,802   2,725   9 %   19,802   NA  
Rental expenses   27,956   15 %   8,775   1,207   4 %   (19,181 ) (69 )%
Others   6,353   4 %   411   58   1 %   (5,942 ) (94 )%
Total research and development expenses   188,510   100 %   213,122   29,327   100 %   24,612   13 %

 

Total research and development expenses increased by approximately RMB25,000 (US$3,000), or 13%, to approximately RMB213,000 (US$29,000) for the six months ended June 30, 2024 from approximately RMB189,000 for the six months ended June 30, 2023. The increase in total research and development expenses was primarily due to the increase in salary and employee benefits of our PRC subsidiaries’ R&D department resulting from the addition of one employee to our R&D department and the increase in consulting expenses of approximately RMB20,000 related to HNTE services fees; and partially offset the decrease in rental expenses and depreciation expenses resulting from early termination of a property lease.

 

As a percentage of revenue, research and development expenses were approximately 3% and 2% of our total revenue for the six months ended June 30, 2023 and 2024, respectively. Our PRC subsidiaries expect to continue to invest in research and development to maintain their competitive edge against other market participators.

 

Other income (expenses)

 

Our other income (expenses) primarily represented interest income, interest expenses, rent subsidies, and government grants. Other expenses increased by approximately RMB116,000 (US$16,000), or 56%, from approximately RMB206,000 for the six months ended June 30, 2023 to approximately RMB322,000 (US$44,000) for the six months ended June 30, 2024, primarily due to (i) a net loss of approximately RMB251,000 from the disposal of leasehold improvements in the first half of 2023, compared to a gain of approximately RMB51,000 from lease terminations during the same period, with no such activities recorded in the first half of 2024, and (ii) a government grant of RMB305,000 for HNTE and a foreign exchange loss of RMB594,000 recorded in the first half of 2024, compared to no such amounts in the first half of 2023.

 

Income before income taxes

 

Income before income taxes was approximately RMB6,177,000 (US$850,000) for the six months ended June 30, 2024, an increase of approximately RMB810,000 (US$111,000) as compared to approximately RMB5,367,000 for the six months ended June 30, 2023. The increase was primarily attributable to the increased revenue.

 

Provision for income taxes

 

Our provision for income taxes was approximately RMB958,000 (US$132,000) for the six months ended June 30, 2024, an increase of RMB173,000 (US$24,000) from RMB785,000 for the six months ended June 30, 2023. The increased income tax provision was mainly due to increased taxable income in 2024.

 

6


 

Under the EIT Law, domestic enterprises and Foreign Investment Enterprises are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays, and even tax exemption may be granted on a case-by-case basis. The EIT Law grants preferential tax treatment to HNTEs. Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. Kebiao Technology, one of our PRC subsidiaries, was approved as an HNTE on November 2, 2022. As a result, Kebiao Technology was entitled to a reduced income tax rate of 15% in 2023 and 2024.

  

According to the Announcement of the State Taxation Administration on the Implementation of Income Tax Preferential Policies to Support the Development of Small Low Profit Enterprises and Individual Businesses, 25% of the annual taxable income of small low profit enterprises that does not exceed RMB1 million will be included in the taxable income, and the enterprise income tax will be paid at the rate of 20%. Jiade Zhigao is eligible for the above preferential tax policies for small and micro enterprises in 2023 and 2024.

 

The impact of the tax holidays noted above decreased taxes by approximately RMB537,000 and RMB568,000 (US$78,000) for the six months ended June 30, 2023 and 2024, respectively. The impact of the benefit of the tax holidays on net income per share (basic and diluted) was RMB0.02 and RMB0.02 for the six months ended June 30, 2023 and 2024, respectively.

 

The following table reconciles the China statutory rates to our effective tax rate for the six months ended June 30, 2023 and 2024:

 

    For the six months ended June 30,  
    2023     2024  
Statutory rate in PRC     25.0 %     25.0 %
Effect of PRC preferential tax rate     (10.0 )%     (9.2 )%
R&D additional deduction     (0.5 )%     (0.4 )%
Non-deductible expenses*     0.1 %     0.1 %
Effective tax rate     14.6 %     15.5 %

 

 

*            Non-deductible expenses mainly represent expenditures not deductible for PRC tax purpose.

 

Net income

 

Our net income was approximately RMB5,219,000 (US$718,000) for the six months ended June 30, 2024, an increase of approximately RMB637,000 (US$88,000) from approximately RMB4,582,000 for the six months ended June 30, 2023. The increase in net income was primarily due to the higher revenue in the first half of 2024, as discussed above under revenue sections.

 

About JIADE Limited

 

JIADE LIMITED is a holding company that was incorporated under the laws of the Cayman Islands on February 20, 2023. The Company and its subsidiaries specialize in providing one-stop comprehensive education supporting services to adult education institutions, through a wide range of software platform and auxiliary solutions. For more information, please visit: http://ir.sckbkj.com.

 

Forward-Looking Statement

 

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, the uncertainties related to market conditions, and other factors discussed in the “Risk Factors” section of the registration statement filed with the U.S. Securities and Exchange Commission (the “SEC”). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

  

For more information, please contact:

 

JIADE LIMITED

Investor Relations Department

Email: kebiao@sckbkj.com

Phone: (400) 028-0776

 

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JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

    December 31,     June 30,     June 30,  
    2023     2024     2024  
    RMB     RMB     USD  
CURRENT ASSETS:                        
Cash and cash equivalents     7,081,937       62,636,592       8,619,082  
Accounts receivable     7,819,344       9,398,484       1,293,274  
Deferred IPO costs     7,869,926              
Prepayment and other current assets     34,151       946,358       130,223  
Due from related parties     8,000       20,000       2,752  
TOTAL CURRENT ASSETS     22,813,358       73,001,434       10,045,331  
Non-current assets                        
Property and equipment, net     160,303       91,080       12,533  
Intangible assets, net     1,989,722       1,977,254       272,079  
Right-of-use assets – operating lease     200,539       102,973       14,170  
Other long-term assets     67,757       21,450       2,952  
TOTAL ASSETS     25,231,679       75,194,191       10,347,065  
LIABILITIES AND EQUITY                        
CURRENT LIABILITIES:                        
Bank loans     3,000,000       2,000,000       275,209  
Accounts payable     1,553       26,278       3,616  
Payroll payables     676,618       938,892       129,196  
Other payables     591,562       542,359       74,631  
Deferred revenue     58,293       -       -  
Operating lease liabilities – current     152,539       93,652       12,887  
Taxes payable     2,929,371       3,942,801       542,547  
Due to related parties.           19,300       2,656  
TOTAL CURRENT LIABILITIES     7,409,936       7,563,282       1,040,742  
Long-term loans – non-current portion                  
Operating lease liabilities – long-term                  
TOTAL LIABILITIES     7,409,936       7,563,282       1,040,742  
COMMITMENTS AND CONTINGENCIES EQUITY:                        
Ordinary shares, US$0.01 par value, 200,000,000 shares authorized, 22,235,471 and 24,535,471 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively     1,542,964       1,709,070       245,355  
Additional paid-in capital     2,729,084       50,147,911       6,900,582  
Statutory reserves     1,494,652       2,012,007       276,861  
Ordinary shares subscribed     (1,542,964 )     (1,542,964 )     (222,355 )
Subscription receivable           (3,270,240 )     (450,000 )
Retained earnings     13,451,868       18,108,060       2,491,752  
Accumulated other comprehensive income           275,347       37,747  
TOTAL EQUITY ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     17,675,604       67,439,191       9,297,942  
NON-CONTROLLING INTERESTS     146,139       191,718       26,381  
TOTAL EQUITY     17,821,743       67,630,909       9,306,323  
TOTAL LIABILITIES AND EQUITY     25,231,679       75,194,191       10,347,065  

 

8


 

JIADE LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF

INCOME AND COMPREHENSIVE INCOME

 

    For the six months ended June 30,  
    2023     2024     2024  
    RMB     RMB     USD  
Revenue – third parties     6,673,176       8,921,488       1,227,638  
Revenue – related party     853,089              
Revenue     7,526,265       8,921,488       1,227,638  
COSTS AND EXPENSES                        
Direct cost of revenue     430,353       400,313       55,085  
Selling expenses     235,231       259,040       35,645  
General and administrative expenses     1,099,705       1,550,235       213,319  
Research and development expenses     188,510       213,122       29,327  
Total costs and expenses     1,953,799       2,422,710       333,376  
INCOME FROM OPERATIONS     5,572,466       6,498,778       894,262  
OTHER INCOME (EXPENSES)                        
Interest income     516       15,639       2,152  
Interest expense     (32,492 )     (49,642 )     (6,831 )
Other loss, net     (173,577 )     (288,050 )     (39,637 )
Total other expenses, net     (205,553 )     (322,053 )     (44,316 )
INCOME BEFORE INCOME TAXES     5,366,913       6,176,725       849,946  
INCOME TAXES PROVISION     784,961       957,599       131,770  
NET INCOME     4,581,952       5,219,126       718,176  
Less: net income attributable to non-controlling interest     37,572       45,579       6,272  
NET INCOME ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     4,544,380       5,173,547       711,904  
                         
OTHER COMPREHENSIVE INCOME                        
Foreign currency translation adjustment           275,347       37,889  
TOTAL COMPREHENSIVE INCOME     4,581,952       5,494,473       756,065  
Less: comprehensive income attributable to non-controlling interest     37,572       45,579       6,272  
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO EQUITY SHAREHOLDERS OF THE COMPANY     4,544,380       5,448,894       749,793  
BASIC AND DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO THE COMPANY*                        
Basic and diluted     0.20       0.21       0.03  
Weighted average number of shares outstanding                        
Basic and diluted     22,235,471       24,535,471       24,535,471  

 

9