TSX VENTURE SYMBOL: CHN
PINK SHEETS: CHNUF
VANCOUVER, Sept. 1 /PRNewswire-FirstCall/ - China Education Resources Inc. ("China Education", "CER", "the Company") (TSX VENTURE:CHN) (PINK SHEETS:CHNUF) - released its unaudited results for the second quarter ended June 30, 2010 (all figures are expressed in U.S. Dollars).
C.F. Zhou, Chairman and CEO, reports that the Company generated gross revenues of $894,214 and a net loss of $368,405 in the second quarter ended June 30, 2010, compared to gross revenues of $53,319 and a net loss of $323,224 for the comparable period in 2009. For the 6 months ended June 30, 2010, the Company generated gross revenues of $2,597,002 and a net loss of $682,424 as compared to gross revenues of $64,791 and a net loss of $970,946 for the comparable period in 2009.
Other highlights included:
- The Company generated positive cash flow from operations of $38,131 for the 3 months ended June 30, 2010 as compared to a cash flow deficit of $378,174 for the comparable period in 2009. - $332,055 of online teacher training revenue was generated in the first 6 months as compared to $44,185 in the comparable period of 2009.
Mr. Zhou said, "It is clear that CER has turned the corner. Our gross revenues of approximately $2.6 million for the first 6 months of 2010 have almost equaled our annual gross revenues of approximately $2.7 million in 2009. We have now entered into the third and fourth quarters of the year during which we have historically generated higher revenues as compared with those of the first half of the year. In the second quarter, we operated on a positive operating cash flow basis.
The Company should begin to approach profitability as our revenues increase at a faster rate than our expenses."
CER Growth Strategy
Mr. Zhou said, "We have implemented a 4 step growth strategy which is now being commercialized in Gansu Province. We are using the Gansu model as we expand nation-wide and expect to continue to show significant revenue increases in the months and years ahead.
The first step of the strategy involves working with various levels of government to deliver government-funded online teacher training programs. The Company developed 25 online teacher training courses for the continuous education of the teachers and the teachers can obtain government certificates upon successful completion any of these courses. The Company also developed 30,000 K-12 online lesson plans and is continuing to develop new educational content and upgrade the technology and functions of its portal. More than 200,000 teachers were trained in the Company's teacher training programs. The Company is the only public company endorsed by China's Ministry of Education ("MOE") for the national level online teacher training programs.
The second step of the strategy involves integrating the Company's products and services into teachers' daily routine. This will allow teachers to interact and communicate with each other. These products include online teacher training, professional development and sharing of lesson plans. The CERSP portal has built up one of the largest and most popular K-12 teacher blog system in China with more than one million K-12 teachers registered. The CERSP portal has developed into a national brand and has a reputation for offering leading edge in-class and online learning products and services. The first two steps are well underway in Gansu Province.
The third step is the promotion of our Education Service Platform ("ESP") section targeted primarily at teachers. Each school has to pay a yearly subscription fee for this unique product.
The fourth step is the ESP that targets the student area offering a number of products and services including our collection of online tutoring courses which is one of the largest in China, customized education resources, formative assessment tools and education games. Students and parents have to pay a subscription fee for this platform.
We are currently in discussion with 11 additional Provinces on province-wide teacher training programs. It is our intention to implement our 4 step strategy in each of these Provinces. There are 3.8 million teachers, 200,000 schools and 64 million students in these 11 Provinces. We target to finalize several agreements in the near future."
ABOUT CHINA EDUCATION RESOURCES INC.
In collaboration with China's various education authorities and experts, China Education Resources Inc. ("CER") is helping to transform the curriculum of the world's largest educational system. Recognizing the need for centralization and increased accessibility to address the Chinese Central government's 2000 education reform policy changes, CER has created educational tools and curricula for China's entire kindergarten through twelfth grade system. By implementing the government's goal of converting the existing educational system from memory-based learning to creative thinking and utilizing a more interactive approach to embrace a world-based economy, CER has played an integral part in positioning China's educational system to reach new heights.
Safe Harbor Statement
This press release contains certain forward-looking statements that reflect the current views and/or expectations of China Education Resources Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.
To receive press releases, investor newsletters and corporate updates, please email your request to: email@example.com.
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.