China Education Resources Inc. Reports Q3 2011 Financial Results
VANCOUVER, Nov. 30, 2011 /PRNewswire/ - China Education Resources, Inc. ("CER") (TSXV: CHN, OTCQX: CHNUF), a leading technology provider of online learning, training courses and tools for teachers, students and education professionals in China, announced its financial results for the third quarter of 2011. All figures are expressed in U.S. dollars.
The Company acquired the remaining 10% equity ownership of the China subsidiary, CEN Smart Networks Ltd. ("CEN Smart") for a nominal value on September 26, 2011 resulting in a 100% equity ownership of CEN Smart. Through CEN Smart, the Company now has an effective ownership of 100% and 60% equity interests in our China subsidiaries, Today's Teachers Technology & Culture Ltd. ("TTTC") and Zhong Yu Cheng Yuan Education Technology Ltd. ("ZYCY"), respectively. TTTC is a provider of online teacher training and ZYCY is involved in book selling business. Both TTTC and ZYCY are our revenue generation engines in China.
CER generated gross revenues of $3,162,211 in the third quarter of 2011. This is compared to gross revenue of $2,112,587 for the same period in 2010, representing a 49.7% increase in revenue. It recorded a net profit of $670,842 as compared to a net profit of $333,200 for the same period in 2010, representing a 101% increase in net profit.
Q3 of 2011 financial highlights includes:
Online teacher training revenue of $1,755,040 generated during the third
quarter of 2011 as compared to $847,983 during the same period in 2010,
representing a 107% increase in revenue from teacher training;
- Text book sales revenue of $1,407,171 generated during the third quarter of 2011 as compared to $1,264,604 during the same period in 2010, representing a 11% increase in revenue from text book sales.
The Company has implemented a four step growth and revenue strategy which is now being commercialized and expanding out nationally across China. The first step involves working with various levels of government to deliver the online teacher training programs. The second step integrates our products and services into teachers' daily routine. This will allow teachers to interact and communicate with each other. The third step is to promote our school based platform to teachers and the fourth step is to engage students with our school based platform which includes our collection of online tutoring courses, assessment tools and educational games.
"We are very pleased with the direction of our sales and operations." said Chengfeng Zhou , CEO, China Education Resources. "The first two steps are well underway and expanding into more provinces and the third step has commenced in three provinces which will allow us to provide more products and services to schools directly. Based on CER's contacts with over 200 education authorities in various provinces of China, the successful commercialization of the company's products and services is occurring. CER's four-step growth plan is currently being extended in fourteen provinces throughout China and represents a unique opportunity for investors to participate in the rapid growth of China's education sector. With the successful first nine months of 2011, we expect more revenue will be generated in 2011 than 2010."
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 through 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 1 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.
The TSX Venture Exchange has not reviewed, and does not accept, responsibility for the adequacy or accuracy of the contents of this press release.
SOURCE China Education Resources Inc.
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