www.chinaeducationresources.com
VANCOUVER,
May 1, 2014 /PRNewswire/ - China
Education Resources, Inc. ("CER") (TSXV: CHN, OTCQX: CHNUF), a
leading technology and content provider of intelligent system,
online learning, training courses and social media for teachers,
students and education professionals, announced its financial
results for the year ended December 31,
2013. All figures are expressed in U.S. dollars.
The 2013 financial highlights are as summarized
as follows:
|
|
|
|
2013 |
2012 |
Percentage |
|
|
|
|
(USD) |
(USD) |
change |
Consolidated Statements of Comprehensive
Income |
|
|
|
|
|
|
|
|
|
|
Book sales and distribution services |
|
5,732,836 |
3,653,759 |
56.9% |
Online products |
|
|
4,352,586 |
3,193,149 |
36.3% |
Total revenue |
|
|
|
10,085,422 |
7,391,934 |
36.4% |
Net loss for the year before goodwill |
|
|
|
|
impairment (non-cash item) |
|
(248,520) |
(1,003,652) |
75.2% |
Net loss for the year after goodwill |
|
|
|
|
impairment (non-cash item) |
|
(2,469,961) |
(1,503,652) |
-64.3% |
Net loss attributable to shareholders of |
|
|
|
|
the Company after goodwill impairment |
|
|
|
|
(non-cash item) |
|
|
(2,718,360) |
(1,295,110) |
-109.9% |
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating |
|
|
|
|
activities |
|
|
|
308,280 |
(1,987,294) |
115.5% |
For the year ended December 31, 2013, CER reported aggregate sales
revenue of $10,085,422 as compared to
$7,391,934 for the same period in
2012, representing a 36.4% increase as a result of a 56.9% increase
in book sales and distribution services and 36.3% increase in
online products in 2013. The net cash provided by the operating
activities was $308,280 in 2013 as
compared to net cash used by operating activities of $1,987,294 in 2012, representing a 115.5%
improvement made in 2013. The Company recognized a net loss for the
year ended December 31, 2013 of
$2,802,724 attributable to the
shareholders as compared to a net loss of $1,380,439 attributable to the shareholders for
the same period in 2012. The increase in the loss for the current
year was mainly due to the goodwill impairment loss of $2,305,805 (non-cash item) as a result of
goodwill impairment analysis using restrictive assumptions and an
increase in selling expenses of $382,713 to $3,362,290 to promote and develop the business of
the Company.
"We are very pleased with the direction of our
sales and operations. Our sales revenue continues to increase in
2013." said Chengfeng Zhou, CEO,
China Education Resources. "The 2013 business results further
strengthen our confidence that our business will continue to grow
in 2014."
"We expect our unique and comprehensive blend of
education resources and services to generate more revenue, and we
are encouraged by the increasing utilization of our internet
platform and educational social network, which work together with
our existing online/offline products."
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.