China Education Resources Reports Revenues of $1.7 million USD in Q1, 2010
02 Juin 2010 - 3:00PM
Marketwired
China Education Resources Inc. ("China Education", "CER", "the
Company") (TSX VENTURE: CHN)(PINK SHEETS: CHNUF) released its
unaudited results for the first quarter ended March 31, 2010 (all
figures are in $U.S.).
C.F. Zhou, Chairman and CEO, reports that the Company generated
gross revenues of $1,702,788 and a net loss of $314,019 for the
first quarter ended March 31, 2010, compared to gross revenues of
$11,472 and a net loss of $647,722 for the comparable period in
2009.
Other highlights included:
-- an operating loss of $76,951 after deducting non-cash items of $498,495
for expenses related to stock based compensation and $130,756 for
amortization of equipment and website development cost.
-- $283,319 of online teacher training revenue was generated in the first
quarter as compared to $3,990 in the comparable period of 2009.
Mr. Zhou said, "With acquisition of ZYCY last year and the
agreement with GANSU Province, it is clear that CER has turned a
corner.
ZYCY's business is the distribution of traditional paper-based
educational products which we believe will grow steadily and
provide a reliable cash flow, and will provide us the flexibility
and resources to pursue online business opportunities which have a
greater margin and greater growth potential. The agreement we
signed with GANSU (press release dated January 15, 2010) is a prime
example. The agreement gives CER the exclusive right to provide
online teaching and research programs to the 220,000 K to 12
teachers in GANSU. Teacher training is the first step. In the first
quarter of 2010 alone, we trained approximately 11,000 teachers and
generated over $283,000 U.S. in revenues. The reaction to this
initial teacher training program was excellent and we will offer
additional programs through working together with the Province on
new product offerings."
CER Growth Strategy
Mr. Zhou said, "We are pursuing a growth strategy which involves
four steps. We will use this plan with every geographical area. The
first step is working with various levels of governments in China,
Municipal, Provincial and Central, to deliver government-funded
online teacher training programs. The second step is the
development of a government and teacher-funded online teaching and
research platform which provides products and services that can be
integrated into a teacher's daily routine and will allow teachers
to interact and communicate with each other. These products include
online teaching training, professional development and sharing of
lesson plans. The first two steps are well underway in GANSU
Province.
The third step is the promotion of our Education Service
Platform ("ESP") targeted primarily at the teachers. Each school
will pay a yearly subscription fee for this unique product.
The fourth step is our ESP targeted at students that offers 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 will pay a subscription fee for this
platform.
We are currently in discussion with 11 additional Provinces on
province-wide teacher training programs. There are 3.8 million
teachers, 200,000 schools and 64 million students in these 11
Provinces. We target to finalize several agreements this
summer."
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:
admin@chinaeducationresources.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.
Contacts: China Education Resources Inc. (604) 683-6865
www.chinaeducationresources.com Equiti-trend Advisors LLC (800)
953-3350
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