CER 2012 Financial Results

China
Education Resources Inc. Generated Revenues of $7,391,935
in 2012

 

Vancouver,
Canada – (May 1, 2013)
- 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 [phone].

 

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.

 

Contact
China Education Resources at: [phone]

Email: [e-mail].

Website:
http://www.chinaeducationresources.com