China Bilingual (PINK:CBLY)

Third Quarter 2012 Results

• Revenues increased 63.4% year-over-year to $10.2 million, compared to $6.2 million for the three months ended May 31, 2012. The increase was primarily attributable to the acquisition of the Shanxi South School (formerly Shanxi Rising School), which increased the Company's total enrollment from approximately 9,200 students to 13,881 students for the current school year, as well as a slight tuition increase.
  
• Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") increased 71.5% year-over-year to $5.2 million, compared to $3.1 million for the three months ended May 31, 2011.
  
• The schools owned by the Company are exempt from paying corporate income taxes because of its classification in China's primary education sector.
  
• Net property, equipment, and land use rights were $125.5 million at historical book value as of May 31, 2012, an increase of 294.7% from $31.8 million as of December 31, 2010.
  
• Stockholders' equity was $48.0 million as of May 31, 2012, an increase of 51.3% from $31.7 million as of December 31, 2010.
• Earnings per share for the third quarter 2012 were $0.07 vs $0.09 in prior year period.

China's middle class continues to grow, driving demand for private education," stated Mr. Ren Zhiqing, Chairman and CEO of China Bilingual. "Recent added support for private education from the Ministry of Education of the People's Republic of China will further accelerate this growing demand. Our reputation for academic excellence positions us to greatly benefit from these market dynamics, and with our schools at less than 70% of total capacity, we have the ability to dramatically improve revenue and earnings growth as our enrollments increase."

"Private education is a sunrise industry in China, with overall education and training spending in the country growing at an estimated compound annual growth rate of at least 20 percent from 2008 to 2013." (ChinaDaily.com.cn, January 21, 2011).

Second Quarter 2012 Results

• Revenues increased 80.2% year-over-year to $11.0 million, compared to $6.1 million for the three months ended February 28, 2011.
• Net income increased 11.4% year-over-year to $2.5 million, compared to $2.2 million for the three months ended February 28, 2011.
• Diluted earnings per share of $0.08 vs $0.07 in prior year quarter

"Increasing enrollment at our schools continues to improve margins as we are able to better absorb our fixed operating costs," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "With our schools currently at approximately 70% capacity, our focus remains on ramping up our total enrollment to 20,000 students over time without compromising our academic standards. Driven by China's growing middle class, the demand for private education is accelerating, and our reputation for academic excellence strongly positions us for long-term revenue and earnings growth."

First Quarter 2012 Results

TAIYUAN CITY, China, Nov. 17, 2011 /PRNewswire-Asia-FirstCall/ -- China Bilingual Technology & Education Group Inc. (OTCBB: CBLY) ("China Bilingual" or the "Company"), an education company that owns and operates high-quality, K-12 private boarding schools in China, announced today that it has filed a Form 8-K with the Securities and Exchange Commission providing audited financial results for Shanxi Rising Education Company Ltd. ("Shanxi Rising"), the owner of a private K-12 boarding school that the Company acquired on August 31, 2011.

Shanxi Rising generated $7.8 million in revenues for the fiscal year ended August 31, 2011, an increase of 29.3% as compared to $6.0 million for the fiscal year ended August 31, 2010. Net income was $611,075 for fiscal 2011, an increase of 969.4% as compared to $57,144 for fiscal 2010. Shareholders' equity was $49.2 million for fiscal 2011, an increase of 34.0% as compared to $36.7 million for fiscal 2010. On a combined pro forma basis, China Bilingual and Shanxi Rising would have had twelve-month revenues of $32.6 million with net income of $12.7 million or $0.42 per share if combined for the full twelve months ended August 31, 2011.

Founded in 2002, the Shanxi Rising School, owned by Shanxi Rising, is located in Jinzhong City, Shanxi Province, People's Republic of China. The school has approximately 5,000 students currently enrolled and a total capacity for approximately 10,000 students. The school campus spans 82 acres and is comprised of over 2.3 million square feet of facilities, including 18 dormitories to accommodate 10,000 students, academic classrooms, gymnasium, theater, natatorium, cafeteria, and other administrative and academic buildings.

"Shanxi Rising generated nearly $8 million in revenue in fiscal 2011 on only one-third of its enrollment capacity for the last school year," stated Dr. Ren Zhiqing, Chairman and CEO of China Bilingual. "By implementing our proven operational methodologies and academic curriculum, we have already increased enrollment at the Shanxi Rising School for the 2011-2012 school year from approximately 3,000 students in the last school year to over 5,000 students. We believe we can continue to steadily ramp up student enrollment, driving substantial growth for the Company in the years ahead. We remain dedicated to becoming an education leader in China, and this acquisition is yet another milestone on our way to achieving that goal."

Second Quarter 2011 Results

"We are pleased with our second quarter performance, highlighted by significant margin and profitability improvements," stated Mr. Ren Zhiqing, Chairman and CEO of China Bilingual. "For the remainder of 2011, we will focus on increasing enrollment at our existing facilities while we continue to seek suitable opportunities to expand our business model into additional schools. We are working to complete the acquisition of a private K-12 boarding school by the end of August, which could over time double our enrollment capacity to approximately 20,000 students. Education is China's third largest consumer spending category, and our strong academic reputation provides us with a major competitive advantage in the fast-growing private education sector. We remain dedicated to becoming an education leader in China and increasing long-term value for our shareholders."

First Quarter Results:

• Revenues increased 4% year-over-year to $6.1 million, compared with $5.9 million for the three months ended March 31, 2010.
• Net Income decreased 15% year-over-year to $2.8 million (or 46% of revenues), compared to $3.3 million (or 56% of revenues) for the same period last year. As part of China's education sector, the Company is exempt from paying corporate income taxes.
• Basic and Diluted EPS decreased to $0.09 per share, compared to Basic and Diluted EPS of $0.13 per share for the three months ended March 31, 2010.

"We made several investments in our long-term growth strategy during the first quarter," stated Mr. Ren Zhiqing, Chairman and CEO of China Bilingual. "In addition to updating our teaching materials, upgrading our equipment and expanding our administrative staff, we increased our refundable deposit to a private K-12 boarding school we are currently negotiating to acquire. We are working toward finalizing the business terms and expect to complete the transaction by the beginning of the 2011-2012 school year in late August, subject to due diligence and board approval. Upon its completion, the acquisition will increase our enrollment capacity by 10,000 students, bringing our total capacity to approximately 20,000 students."

GeoTeam Note: Fourth Quarter 2010 vs. 2009 EPS was:  $0.10 vs. $0.14.

Based on our current operations, we do not anticipate the purchase or sale of any significant equipment or expect any significant additions to the number of our employees. We expect to continue to expand our enrollment base utilizing the excess capacity at our existing schools.

Our strategy is to leverage our strong academic reputation to develop additional business. We are also actively seeking opportunities to expand our business that we consider accretive to earnings. We intend to grow our business model through the acquisition of existing schools to increase our total enrollment. To that end, the Company has paid $8,757,757 as a good-faith, refundable deposit to begin preliminary negations toward the potential acquisition of a school. In order to fully implement our business plan and continue our growth, however, we will require additional capital either from our shareholders or from outside sources, although there is no assurance that we will be able to obtain additional capital at suitable terms if and when it is needed.

China Bilingual currently has approximately 10,000 students and 1,500 staff members between its two schools in Shanxi and Sichuan Provinces.

The Company expects to report fiscal year-end December 31, 2010 revenues of approximately $24 million and $12 million in net income (or $0.40 earnings per share), up 15% and 20% year-over-year, respectively. Net margin for the twelve-month period was approximately 50%.

Third Quarter Fiscal Year 2010 Financial Highlights:

• Revenues increased 15% to $6.3 million, compared with $5.5 million
   
• Net Income increased 30% to $3.9 million (or 63% of revenues), compared to $3.0 million (or 55% of revenues). As part of China's education sector, the Company is exempt from paying corporate income taxes.
   
• Basic and Diluted EPS increased to $0.13 per share, compared to Basic and Diluted EPS of $0.10 per share for the three months ended September 30, 2009
   
• Current Assets increased 153%, or $13.0 million, to $21.5 million as of September 30, 2010
   
• Net property, equipment, and land use rights were $34.0 million at historical book value as of September 30, 2010; no long-term debt
   
• Stockholders' Equity increased 48%, or $10.5 million, to $32.2 million as of September 30, 2010

"Our enrollment and test scores continue to rise, and we are very pleased with the results of our operations in the third quarter and first nine months of 2010," stated Mr. Ren Zhiging, Chairman and CEO of China Bilingual. "We believe we have successfully proven our academic model over our 12 year history. Education in China is highly valued, and we intend to be at the forefront of private, K-12 boarding schools throughout China. We have also proven our business model, and we now want to replicate our curriculum and teaching methods into schools in surrounding regions."

Presently, our cash and cash equivalents are $14,114,068. Our principal source of liquidity comes from prepaid tuition, room and board from students that attend our schools. As of September 30, 2010, we had negative working capital of $1,803,171, as compared to negative working capital of $15,224,463 as of September 30, 2009. Based on our current operating plan, we believe that our existing resources, including cash flow generated from operations as well as available bank loans, will be sufficient to meet our working capital requirement for our current operations. In order to fully implement our business plan and continue our growth, however, we will require additional capital either from our shareholders or from outside sources, although there is no assurance that we will be able to obtain additional capital at suitable terms if and when it is needed.

On September 15, 2010, China Bilingual Technology & Education Group Inc. (the “Company”) entered into a Consulting Agreement with Michael Toups (the “Consulting Agreement”), pursuant to which Mr. Toups agreed to serve as Chief Financial Officer of the Company. Mr. Toup’s appointment as Chief Financial Officer was ratified by the Company’s board of directors on November 3, 2010. Pursuant to the Consulting Agreement, Mr. Toups is entitled to receive $6,000 per month in consideration for his services as Chief Financial Officer of the Company. In addition, Mr. Toups is entitled to receive a stock award of $72,000 in shares of the Company’s common stock, which vest on a quarterly basis. Mr. Toups is also entitled to reimbursement for all reasonable travel and other business expenses incurred by him.

Mr. Toups, 44 years old, also currently serves as Chief Financial Officer of Longwei Petroleum (NYSE AMEX:LPH),

China Bilingual became a public entity via a reverse merger transaction.

Company Snapshot:

Education-oriented company in China.

Industry Snapshot: The filing did not provide details.

Post Merger Share Calculation:

"Upon completion of the Merger, there were 30,000,000 shares (on a post-dividend basis) of the Company’s common stock issued and outstanding."

Financial Snapshot:

• During the three months ended March 31, 2010, we had revenues of $5,936,730 as compared to revenues of $4,925,233 during the three months ended March 31, 2009, an increase of $1,011,497, or 20.54%.
  
• Net income attributable to the Company in the amount of $ 3,343,570 for the three months ended March 31, 2010, as compared with $ 2,310,596 during the three months ended March 31, 2009.