China Education Alliance (NYSE Amex: CEU), a leading educational service company offering high-quality online education materials, onsite training and tutoring in the People’s Republic of China, has moved to a senior exchange and now trades on NYSE Amex under the ticker “CEU.” This is a huge move that will give the company new leverage to expand its visibility and grow its investor base.
Operating in a market estimated at $15 billion, CEU focuses on providing supplemental education and training services — available both online and through onsite trainings centers — that are designed for students aged 6 to 18. The company also provides vocational and language training services for adults aged 18 and over.
CEU main service offering is their exam-oriented education for elementary, middle and high school students. Their educational materials and courses have received all the necessary certificates and/or registration needed through China’s Ministry of Education. All material is made available online (www.edu-chn.com) and may be downloaded for offline use as well. The company’s “Big Classroom of the Famed Instructors” program is conducted at their state-of-the-art training center located in Harbin in the province of Heilongjiang. Courses offered include math, physics, chemistry, English and Chinese.
Vocational training in China is a largely untapped market, and CEU focuses on both management training for adults and career development for students. The company’s main vocational training center, located in Harbin, China, provides IT training courses and other professional training programs. In September 2007, CEU launched their online vocational training services program called “Millions of College Students Employment Crossroad,” which is available on www.360ve.com. The company partnered with the National Association of Vocational Education to set up the site, which is used by training agencies and schools.
Under the skilled leadership of CEO Xiqun Yu, China Education Alliance has continued to report strong growth and profitability, which led to their NYSE Amex listing. For their first quarter 2009, revenue grew 102% year-over-year to $8.2 million and net income grew 68.7% to $3.2 million from $1.9 million in 1Q08.
CEU continues to expand its business through acquisition and partnership with major international education institutions. In 2008, the company acquired a 70 percent interest in World Exchanges, Inc., a fast-growing English training service provider in China. The acquisition included five teaching centers and positioned CEU to access the English training market in China.
In other recent news, CEU announced a co-operative agreement with Peking University — one of the most prestigious universities in China — to jointly collaborate on the research and development, promotion and running of a “Practical Oral English Training Project.” China Education Alliance prides itself on offering a high-quality, practical English education and insists on hiring North American teachers and using original English materials to ensure succes. Their students are encouraged to use English at all times.
Commenting on their new alliance, CEO Xiqun Yu, said: “The co-operation with the Foreign Language College of Peking University will strengthen our Company’s influence in English education in the People’s Republic of China and will promote our Company’s brand name.”
Editor’s note: To learn more about CEU, please view RedChip’s interview with CFO Susan Liu, recorded June 16th in Fort Lauderdale, Florida.