Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

 

 

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

 

 

 

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

 

 

 

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: [e-mail]

Phone: [phone]

 

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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

 

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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

 

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