China Ventures Inc. Reports First Quarterly Profit.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 2, 2002 China Ventures Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CHV CHV canine herpesvirus. ) C.F. Zhou, Chairman, is pleased to announce the results of the Company's first profitable quarter. Revenues and net income for the three months ended September 2002 were $1,096,000 US and $153,000 US respectively. This compares to revenues of $3,000 US and a net loss of $843,000 US for the same quarter last year. Revenue in the current quarter included a gain of $145,000 US on the forgiveness of debt. Income was $168,000 US before the aforementioned item, a deduction of $126,000 US for a non-controlling interest and a write off of $33,000 US relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a capital asset. The company also announced revenues for the nine-month period ended September 2002 of $1,139,000 US and a net loss of $838,000 US, after expensing $798,000 US in non-cash items. Ronald Shon, President, said, "we are very pleased with the results announced today. The acquisition of Today's Teachers Technology and Culture Ltd. (TTTC TTTC Test Technology Technical Committee (IEEE) TTTC The Tibetan Tea Company (band) TTTC Too Tough to Call TTTC Trees to the Curb (band) ) looks very promising. Since the completion of the acquisition on August 1st of this year, TTTC has generated over $1,000,000 US in non-consolidated revenues and almost $350,000 US in non-consolidated net profit. While the results of the current period are very good, investors should understand that the business is cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. and that a large percentage of sales occur in the July to September period because that is when most students purchase their textbooks. It would be inappropriate therefore to annualize Annualize 1. To convert a rate of any length into a rate that reflects the rate on an annual (yearly) basis. This is most often done on rates of less than one year, and usually does not take into account the effects of compounding. these results on a going forward basis, for this reason and for one other: a number of new projects are currently being developed which we believe are quite promising. Consequently, 2003 financial results should be improved over those of 2002." A number of key factors are responsible for the strong performance of TTTC: 1. A complete restructuring of the operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. i.e. accounting, reporting functions, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. is currently being undertaken to bring these systems up to modern standards. 2. A new policy has been instituted to shorten the collection of receivables to an average of 30 to 60 days. 3. The Information Technology Textbook currently being distributed by TTTC has been placed on the National Textbook list. As a result, sales of this product have increased in the last 30-60 days. 4. A decision has been taken by TTTC management to narrow the company's focus on four ongoing product offerings which are the information technology textbook, a psychology textbook, an ecology textbook and a kindergarten textbook. These are areas which the company believes it has unique advantages over its competition. C.F. Zhou said, "The Chinese publishing and education businesses have attracted considerable investment from foreign companies in the past several years. International Data Group, the leading publisher of Information Technology magazines and books has invested $200 million US in China since 1998. Bertelsmann has invested in China since 1995 and recently signed an agreement with Shanghai Printing Corp. to invest $29 million US in a joint venture company. It is very obvious to us that this interest will increase because of the rapidly growing demand in China for educational content. It is equally obvious that getting established in this industry takes considerable time and is extremely difficult, especially for non-Chinese firms. With the acquisition of TTTC and its established distribution capability, we have a platform from which to grow in this large and rapidly expanding industry. We are ideally suited not only to grow as a distributor of Chinese language content but also to act as a bridge and a distribution arm for foreign companies wishing to access the Chinese market." The following is a summary of the Company's consolidated operations for three and nine month period ending September 30, 2002 and should be reviewed in conjunction with the Company's full consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and management discussion released on November 29, 2002.
(expressed in U.S. Dollars)
Three months Nine months
ended ended
September 30, Per September 30, Per
2002 Share 2002 Share
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Revenues $ 1,096,464 $ 0.0089 $ 1,139,463 $ 0.0095
Operating Expenses 928,293 0.0075 1,275,197 0.0106
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Operating income (loss) 168,171 0.0014 (135,735) (0.0011)
Gain on forgiveness of debt 144,859 0.0012 144,859 0.0012
Impairment loss on goodwill - - (701,168) (0.0059)
Other non-operating expenses (33,153) (0.0003) (26,206) (0.0002)
------------------------------------------------------------------------
Income(loss) before
non-controlling interest 279,877 0.0023 (718,249) (0.0060)
Non-controlling interest (126,416) (0.0010) (120,261) (0.0010)
------------------------------------------------------------------------
Net income (loss) $ 153,461 $ 0.0013 $ (838,510) $(0.0070)
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About China's Publishing Market The textbook market in China is well established and expanding. China's population base makes it one of the world's largest markets for educational products with about 230 million elementary and middle school students and 10 million schoolteachers. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a recent article in the South China Morning Post The South China Morning Post, together with its Sunday edition, the Sunday Morning Post, is a English-language newspaper of Hong Kong, with a circulation of 104,000. , more than 150,000 different book titles were published last year in China. Textbooks accounted for just 6% of the total but generated about 60% of revenue and close to 80% of profits. Annual sales of textbooks in China are in excess of $4 billion. With the current reforms undertaken by the Ministry of Education, the number is expected to increase substantially over the next five to ten years. About Today's Teachers Technology and Culture Ltd. TTTC is a ten-year old privately held educational product company that has produced over 200 publications. Its product line includes books, software, audio and video materials, and educational training tools. This company develops teaching materials and textbooks based on the various research projects conducted by the Ministry of Education and works very closely with education committees at the national, provincial and local levels which approve textbooks for use in the Chinese school In Western countries, a Chinese school is a school established explicitly for the purpose of teaching the Chinese language (of the various Chinese dialects, nowadays Mandarin Chinese or Cantonese Chinese are almost always the ones taught) to American-born Chinese (ABC), system. About China Ventures Inc. The admission of China into the WTO See World Trade Organization. and the granting of the 2008 Olympic Games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. to Beijing have created a significant and growing demand for education, corporate training and extended learning in China. CHV is a Canadian-based company focused on providing these much needed educational solutions to various segments of the Chinese economy in an effort to assist in China's globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation and movement to an open market economy. CHV will continue to work with leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. education providers and institutions to provide quality educational programs and course materials to its growing client base in China. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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