China Chuanglian Education Announces Its 2014 Annual Results

HONG KONG, March 31, 2015 /PRNewswire/ --

Financial Highlights

China Chuanglian Education Group Limited ("the Company" or "China Chuanglian Education", HKSE stock code: 2371) announced its annual results and financial position for the year ended 31 December 2014. During the year, the Group recorded a turnover of approximately RMB76.9million (2013: approximately RMB98.4million), representing a decrease of 21.8% as compared to that of last year. Of these, turnover derived from advertising media income and consultancy service income, TV programmes distribution services income and educational consultancy and online training were approximately nil, RMB7.38million and RMB69.5 million respectively (2013: approximately RMB0.4 million, RMB30.7million and RMB 67.2million respectively).

The profit for the year attributable to owners of the Company aggregated at approximately RMB24.2 million (2013: approximately RMB7.71 million). The basic earnings per share for the year ended 31 December 2014 was approximately RMB0.58 cent (2013: RMB0.33 cent).

Business Review
Focus mainly on the provision of the online training and education service

As one of the pioneers of online education in the PRC, the online education services focus mainly on providing on-the-job training to civil servants of various government bodies of mainland China and professional technical personnel of corporate units, providing them with education and training relating to job adaptation and skill enhancement.

We are committed to provide on-the-job training for civil servants and continuing education for professional and technical personnel, and strive to become their life-long, comprehensive online learning partner. In 2014, our revenue and profit from educational consultancy and online training recorded steady growth despite the fast-changing and competitive market environment, which has consolidated our leading position in the market of professional online education services.

In 2014, we relied on our self-developed core network service management platform to link up internet learning service, training management and educational resource trading together, and support large-scale online learning at the same time, providing civil servants and professional technical personnel from 6 provinces, 16 cities and 9 national ministries with up to 69 different categories of online education services. Students who paid for their training amounted to over 3.3 million people.

Prospects

In 2015, we will make good use of the policies of the PRC government for online vocational education and continuing education, based on the technological innovation of our core business, quality enhancement and brand impact, to focus on the following three aspects:

1. Further promote our online training and education services to the personnel of Ministry of Human Resources and Social Security of the PRC;
2. Through providing technical support and services for "China Association for Continuing Engineering Network" and its "National Continuing Education Public Services Platform", "National Professional Technical Personnel Knowledge Renovation" website and its "National Professional Technical Personnel Data Management Platform, we will enhance our business influence and brand quality, in order to consolidate the leading position in the field of on-the-job continuing education and online services, and will endeavor to make use of our platform to accelerate the growth of our user base, with a view to better serve a larger scale of professional technical personnel and satisfying their continuing learning needs.
3. On 10 March 2015, we signed the "National Rural Grassroots Cadres (Village) E-business Training Cooperation Agreement" with China E-business Association of the Ministry of Industry and Information Technology, aligning with the State Council Document No. 1 which addresses the "three rural issues", aiming at carry out the development of e-business training for national rural grassroots cadres and promoting "production, supply, sale" of agricultural supplements.

Regarding the development of the new business group resources, there are 2 directions:

1. We entered into a strategic cooperation agreement with the authority responsible for the training of pension service personnel in the PRC, and strived to better meet the learning desire of the relevant professional groups through our comprehensive online/ mobile e-learning platform, so as to create an pension service e-commerce platform.
2. At the end of 2014 and in early 2015, we entered into strategic cooperation agreements with The Group and Research Center for Professional Managers which is under the State-owned Assets Supervision and Administration ("SASAC") of the State Council of the PRC, New Oriental Xuncheng Network Technology Co. Ltd, Study & Sun International Education Group and many other institutions. We will strive to deepen relationships with these strategic business partners in 2015. With their respective advantages in areas such as high quality training for professional managers, building construction professional qualifications and professional English, we will make the products of strategic partners available to our students through the support of our core network services platform.

In 2015, we will continue to invest heavily in several long-term projects that we consider as strategic and these projects include:

1. to purchase content and improve user experience for online education services;
2. to promote online/mobile online educational services promotion from PC, mobile terminals to home TV terminal, provide our student users with cross-platform facing their families and education system with multi-screen linkage;
3. to set up branch offices in those provinces in mainland China with well-developed cooperation foundation and brand influence, cooperating with local or cross boarder professional institutions, enhancing the education level of professionals and satisfying offline education and training service needs.

About China Chuanglian Education

The Group is principally engaged in the online education business in the PRC. The Group owns cross-media platform that facilitates online training, smart management of online education and exchange of education resources with the capacity of supporting large-scale online users and mobile users using online education simultaneously. Currently, the platform provides online education and training service to two types of users: 1) those who require on-the-job training and further education due to career development; 2) those who prepare for professional qualification examinations to obtain relative qualification certificates. By the end of March 2015, our services have 69 online training platforms cover provinces and cities across PRC and among different industries with 3.58 million registered users and are expected to have sustainable growth in the future.