Vancouver (CA), May 2013 - China Education Resources, Inc. (CER), a technology provider of online learning, training courses, and social media for teachers, students, and education professionals has announced its financial results for the year ended December 31, 2012. All figures are expressed in U.S. dollars.
For the year that 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 that 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 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
"Our sales revenue continued to increase in 2012, and the Company's business-growth plan was 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 last year, the Company began to provide digital textbooks to students. CER is now adding mobile-learning solutions to the school platform for both of the students and teachers. Digital textbooks 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 to be 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 and may launch these products on its 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.
