China Bilingual to Benefit from PRC Announcement Supporting Private Education
TAIYUAN, China, July 11, 2012 /PRNewswire-Asia-FirstCall/ -- China Bilingual Technology & Education Group Inc. (OTCBB: CBLY) ("China Bilingual" or the "Company"), an education company that owns and operates high-quality, K-12 private boarding schools in the People's Republic of China (the "PRC"), today announced it will benefit from the June 18, 2012 announcement supporting private education from the Ministry of Education of the PRC (the "MOE"). The MOE plans to promote policies to encourage private capital investment in the field of education to promote the healthy development of private education.
Under the National Long-Term Education Reform and Development Plan (2010 - 2020), (the "Plan"), the MOE has been actively working toward developing policies and measures to promote private education and encourage private capital to enter the field of education. The MOE expects the results of the reform to create a more favorable environment for private education as a driver to benefit the education of society as a whole.
"The MOE announcement further supports our business model promoting quality private education," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "We are very pleased with this announcement and believe the policies will favorably benefit our schools by making private education more accessible to all students."
"We look forward to reporting strong results for the quarter," stated Michael Toups , CFO of China Bilingual. "Our capacity has doubled over the past year, and we continue to improve the efficiency of our personnel management and administration. We expect our enrollment initiatives for the 2012-2013 school year to drive our growth in the coming academic year."
China Bilingual currently operates three schools in China serving nearly 14,000 students. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company's schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.
"Private education is a sunrise industry in China, with overall education and training spending in the country growing at an estimated compound annual growth rate of at least 20 percent from 2008 to 2013." (ChinaDaily.com.cn, January 21, 2011).
To implement the Plan and encourage private investment, the MOE has established the following working observations as outlined in its release dated June 18, 2012:
1. Establish the role of private funds to promote educational development;
2. Expand the means for private capital to participate in the development of the education channel;
3. Promote favorable private education policies, including the implementation of equal legal status of private schools and public schools, more school autonomy for private schools, and preferential tax policies;
4. Develop standards for private education operations and governance; and
5. Create a sound regional education management and service system, including integrating private education into the local economic, social and education systems.
The MOE announcement closes with the following directives:
1. Guide the healthy development of private education intermediaries to strengthen the construction of private educational and research institutions.
2. Publicize advanced models of private education and the results of the reform and development achievements.
3. Coordinate relevant departments to develop policies and measures to further promote the development of private education.
4. Create a favorable environment for the whole society to support the development of private education.
- Ministry of Education of the People's Republic of China on June 18, 2012
"According to the MOE, there were 579,008 institutions in the education and training industry in 2008, of which 120,526 were private institutions. The courses provided by these private institutions included pre-school, primary and secondary, and higher education plus vocational and technical training. Some 37.5 million students were enrolled with these institutions in 2008. Total annual educational spending in the country is estimated at RMB 2.3 trillion (US $364 billion) for 2010 and is projected to increase to RMB 4.1 trillion (US $649 billion) by 2013. Approximately 78% of the RMB 4.1 trillion, or RMB 3.2 trillion (US $506 billion), is expected to be spent on private education, as opposed to public education." (ChinaDaily.com.cn, January 21, 2011)
About China Bilingual Technology & Education Group Inc.
China Bilingual Technology and Education Group Inc. is an education company that owns and operates high-quality, K-12 private boarding schools in China. Founded in 1998, the Company currently operates three schools encompassing the kindergarten, elementary, middle and high school levels with approximately 13,881 students and 1,876 faculty and staff.
The Company's schools are located in Shanxi and Sichuan Provinces and provide students with an innovative and high-quality education with a focus on fluency and cultural skills in both Chinese and English. The schools regularly rank among the top schools in their respective regions for college entrance rates and national college entrance exam scores. The Company's schools have earned excellent teaching reputations and are recognized for the success of their students and strong faculty.
As China experiences rapid industrialization and economic growth, the government is focused on education as a means to increase worker productivity and raise the standard of living. Parents in China's new middle and upper classes are sending their children to receive private school education to give them an advantage in China's increasingly competitive workforce. The Company's sector in education is not subject to corporate income tax, and the Company anticipates its growth will come from both organic growth through increased enrollment and expansion of its business model and teaching methods into new schools to be acquired by the Company.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. For additional information, readers should carefully review reports or documents the Company files periodically with the Securities and Exchange Commission.
At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1-727-641-1357
Tel: +1-800-RED-CHIP (733-2447), ext. 110
SOURCE China Bilingual Technology & Education Group Inc.
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