China Bilingual Announces Fiscal 2010 Financial Results

TAIYUAN, China, April 6, 2011 /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 China, today announced its financial results for the fiscal year ended December 31, 2010.

Fiscal 2010 Financial Highlights:  (Year-over-Year, 12-Month Results)

• Revenues increased 15.0% to $24.4 million, compared with $21.2 million.

• Gross profit increased 14.7% to $12.2 million, compared to $10.5 million. Gross margin was 50.1% and 49.7% in fiscal 2010 and 2009, respectively.

• Operating income increased 16.5% to $11.9, compared to $10.2 million. Operating margin was 49.0% and 48.3% in fiscal 2010 and 2009, respectively.

• Net income attributable to shareholders increased 17.4% to $12.0 million (or 49.2% of revenues), compared to $10.2 million (or 48.1% of revenues). As part of China's education sector, the Company is exempt from paying corporate income taxes.

• Basic and diluted EPS increased to $0.43 per share, compared to Basic and Diluted EPS of $0.39 per share for the year ended December 31, 2009.

• Current Assets increased 6.0%, or $0.5 million, to $8.7 million as of December 31, 2010.  Total Assets increased 23.4%, or $9.3 million, to $49.2 million as of December 31, 2010.

• Net property, equipment, and land use rights were $31.7 million at historical book value as of December 31, 2010; no long-term debt.

• Stockholders' Equity increased 67.4%, or $12.8 million, to $31.7 million as of December 31, 2010.

"We achieved double-digit sales and net income growth in 2010, primarily due to increased student enrollment in our schools," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual., "The proven success of our academic model, combined with robust education spending among Chinese consumers, enabled us to attract a greater number of students for the 2010-2011 school year. Our students continue to perform exceptionally well on the national college entrance exam, and both of our schools were highly ranked in their respective regions for college acceptance rates in calendar 2010. We believe that our commitment to academic excellence will remain a critical factor in the growth of our business."  

"Looking ahead, we will continue exploring opportunities to expand our academic model into additional schools. We are currently in negotiations to acquire a private K-12 boarding school and expect to finalize the contract details during the second quarter of 2011. Once completed, this acquisition would significantly increase our student enrollment, bringing us closer to our goal of doubling enrollment over the next 18 to 24 months. With our strong reputation and China's longstanding cultural emphasis on education, we expect another year of solid revenue and earnings growth in 2011."

Conference Call and Webcast

Management will host a conference call to discuss these financial results today at 10:00 a.m. EDT (7:00 a.m. PDT).

To participate in the call, please dial (877) 941-1427, or (480) 629-9664 for international calls, approximately 10 minutes prior to the scheduled start time. Interested parties can also listen via a live Internet webcast, which can be found at http://ViaVid.net.

A replay of the call will be available for two weeks from 1:00 p.m. EDT on April 6, 2011, until 11:59 p.m. EDT on April 20, 2011. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the pin number for the replay is 4431145. In addition, a recording of the call will be available at http://www.RedChip.com for up to one year.

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 two schools encompassing the kindergarten, elementary, middle and high school levels with approximately 10,000 students and 1,500 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.

Forward-Looking Statements

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.

These financial statements should be read in conjunction with the accompanying notes to consolidated financial statements, which are detailed in the Company's 10K filing with the SEC dated March 31, 2011.

SOURCE China Bilingual Technology & Education Group Inc.