VANCOUVER, May 1, 2013 /CNW/ - 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
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.
The TSX Venture Exchange has not reviewed, and does not accept,
responsibility for the adequacy or accuracy of the contents of this
SOURCE: China Education Resources Inc.
For further information:
Contact China Education Resources at: (604) 331-2388