Recorded turnover of RMB$[98.35] Million Representing an Increase of 332.3%
HONG KONG, April 1, 2014 /PRNewswire/ --
Financial Highlights
| Year ended 31 December | ||||||
| RMB$'000 | 2013 | 2012 | Change (%) | |||
| Turnover | 98,350 | 22,748 | +332.3% | |||
| Profit (loss) for the period attributable to owner of the Company | 7,712 | (701,309) | - | |||
| Earnings (loss) per share (RMB cent) | 0.33 | (35.34) | - | |||
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 2013. During the reporting period, the Company continued to improve its operation and achieved a profit turnaround. The profit for the year attributable to owners of the Company aggregated at approximately RMB 771 million (2012: the loss amount at approximately RMB 701.3 million). For the year, the Company recorded a turnover of approximately RMB 98 million (2012: approximately RMB 23 million), representing an increase of 332.3% as compared to that of last year. The profit turnaround is mainly due to the increase of the educational consultancy and online training income.
Business Review
Expand into the Online Education Business
In August 2013, the Company completed the acquisition of the entire issued share capital of Housden Holdings Limited and expands into the relevant online education business in PRC. In August 2013, the Company successfully completed the acquisition of CL Education Limited, establishing an online education platform that facilitates online learning to public services, intelligent management of online education and educational resources trading with the capacity of supporting large-scale online users using online education simultaneously. As at the end of 2013, such service have cover 44 provinces and cities and industries across China with 2.09 million registered users and 1.69 million paid users and is expected to grow in the future.
The company's online education business has a great performance in the second half of 2013 and generated stable revenue. The Company expects that the online education business has vast potentials and will further broaden the revenue source in near future.
Ceased Investment in New Outdoor Media
The performance of the advertising media business continued to decrease in the year of 2013 due to the unfavorable operating environment of the advertising industry in the PRC. The Company decided to cease the investment of new outdoor media but maintained only part of the existing ones.
TV Programmes Distribution Business
The Company's TV programmes distribution business generated stable revenue in the year of 2013. The new 30 episodes of TV programme titled "Hanwei zhe" was broadcasted by the no. 8 channel of CCTV in April 2013 and several provincial TV stations thereafter.
Prospects
China Chuanglian Education will focus on the on-the-job training of China's civil servants and continuing education market that serves professional and technical personnel. As at 2013, China has over 7 million civil servants and 55 million professional and technical personnel, which grows at a CAGR of 4%. As stipulated by the 2013-2017 National Cadre Education and Training Planning announced by the Chinese government, civil servants and professional and technical personnel shall attend the minimum trainings required annually. The minimum training duration ranges from 90 hours per year to 110 hours per year. This shows the future growth of China Chuanglian Education has a promising prospect.
Mr. Li Qing, Executive Director of the Company, said, "It is obvious that only a small portion of the market was explored by the Group, and that a huge potential market is waiting to be explored. With the huge demand for on-line education in China, we are optimistic about the new acquisition of the Internet platform and the on-line education business which will drive the growth of the Company. We also intend to expand into other on-line education business, such as certificate training for middle and senior level e-commerce practitioner, on-the-job training, online university and other online trainings which have with strong job market demand, so as to enhance the profitability of the Company and the Shareholders' interests in the long run."
