VANCOUVER, May 1, 2013 /PRNewswire/ - China Education Resources, Inc. ("CER") (TSXV: CHN, OTCQX: CHNUF), a leading technology provider of online learning, training courses and social media for teachers, students and education professionals, announced its financial results for the year ended December 31, 2012. All figures are expressed in U.S. dollars.
For the year ended December 31, 2012, CER reported aggregate sales revenue of $7,391,934 as compared to $6,553,140 for the same period in 2011. There was an increase in sales for the current year as compared to the sales of previous year. The Company recognized a net loss for the year ended December 31, 2012 of $1,380,439 attributable to the shareholders as compared to a profit of $23,273 attributable to the shareholders for the same period in 2011. The increase in the loss for the current year was mainly due to the increase in selling expenses for marketing our new products and services and a goodwill impairment loss of $500,000 (non-cash item) as a result of goodwill impairment analysis using restrictive assumptions.
2012 financial highlights include:
- Online products and other revenue of $3,738,176 generated during 2012 as compared to $2,187,832 during the same period in 2011;
- Text book sales revenue of $3,653,759 generated during 2012 as compared to $4,365,308 during the same period in 2011.
"Our sales revenue continues to increase in 2012, and the Company's business growth plan has been implemented as planned" said Chengfeng Zhou, CEO, China Education Resources. "As a result of incurring increased selling expenses of $1.0 million in 2012, as compared with the same period of last year, the Company has begun providing digital textbooks to students. CER is now adding mobile learning solutions to the school platform for both of the students and teachers. Digital textbooks have started to generate revenue in 2012 and we expect our Education Smartphone Program will start to generate revenue in the second half year of 2013."
In order to continue work with the principal of a previous financial advisor, who has changed firms, CER has terminated the agreement with Inverness Advisors. An agreement with this new firm is now under discussion.
The Company has developed an unparalleled and broad portfolio of education products that is believed unavailable in any other education market. It has been market tested and developed in the world's largest education market. The Company intends to explore the potential to provide these online, networked products and services in other education markets. We may launch these products on our own platform or in partnership with other domestic industry players. The Company's goal is to become the leading internet education service platform, content provider and social network to individuals and organizations in the education sector.
In collaboration with China's education administrators and experts, China Education Resources has been helping to transform the curriculum of the world's largest educational system. Recognizing the need to address education reform changes, China Education Resources has created educational tools and curriculum for China's entire kindergarten through twelfth grade system. The Company is playing an integral part in transforming China's educational system by helping to convert the existing educational system from a memory-based learning system to a creative thinking and interactive approach. Presently, China Education Resources has over one million kindergarten through twelfth grade teachers registered through its Web portal. For more information, please visit www.chinaeducationresources.com or call (604) 331-2388.
Safe Harbor Statement
Certain statements made herein, and other statements relating to matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information and statements are typically identified by words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "plan", "estimate", "will", "believe" and similar expressions suggesting future outcomes or statements regarding an outlook. All such forward-looking information and statements are based on certain assumptions and analysis made by China Education Resources, Inc.'s management in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements, however, are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include those described under the heading "Risks and Uncertainties" elsewhere in the Company's MD&A filed at www.SEDAR.com. The reader is cautioned not to place undue reliance on forward-looking information or statements. Except as required by law the Company does not assume the obligation to revise or update these forward looking statements after the date of this document or to revise them to reflect the occurrence of future, unanticipated events.
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SOURCE China Education Resources Inc.