www.chinaeducationresources.com
VANCOUVER,
May 1, 2013 /PRNewswire/ - 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 education
sector.
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 press release.
SOURCE China Education Resources Inc.
