On Monday, China Education International, Inc. announced that their subsidiaries signed contractual agreements with Hefei Meihua Vocational Training School (Meihua Training School), based in Hefei, in Anhui Province, China. This permits China Education to manage the operations of this school. China Education International, Inc. manages the operation of private schools and educational activities within China.
Meihua Training School (affiliated with a high school also located in Hefei, China) offers non-academic training to daily commuter students from the local area and to students who elect to live on the school’s campus. Programs include advertising design, e-commerce, secretarial, logistics, marketing, and business management courses. The courses offered range in length from a few months to one year. The design of the courses is to attract individual students from throughout Anhui province. Anhui is located within a fast growing industrial and commercial area of China. Anhui is China’s eighth largest province in population. In 2002, their population was less than 60 million but is now approaching 70 million.
Mr. Joel Mason, China Education’s Chairman and CEO explained, “This is the third school to join us in our first seven months of educational management activity, and we are excited about the splendid progress our organization has made in so short a period of time.”
Mr. Mason explained, “Our business model is special and is based on the international cooperation of educators and advisors from China, America, and around the world. During the coming months, we are planning to provide international cooperative study programs for Meihua in the same way that we have established programs for our other schools.”
Meihua Training School began their operations in April 2011, with 700 students. The school reports that they expect to reach their goal of 3,000 to 4,000 students across all course offerings by the end of December 2011. The school leases a 220,000 square foot facility for all their operations.
Mr. Mason further said, “With this new school, we estimate that by the end of 2011, the student population of the 3 schools we currently manage will be more than 10,000, and we are now discussing management opportunities with other schools that we expect to enter into similar contractual agreements during the next several months.”
Additional information regarding the Meihua Training School Agreements is provided in the Form 8-K the Company has filed with the U.S. Securities and Exchange Commission describing this transaction. This includes the United States generally accepted accounting principles (GAAP) and the variable interest entity concepts (VIE) that are fundamental and a necessary part of these agreements.
Headquartered in Boca Raton, Florida, China Education International, Inc. is a leader in managing the operations of private Chinese schools and educational organizations within China. They do this while providing them with international partnership programs, and recruiting American and other international teachers for those schools and organizations. Currently, the Company manages the operations of Shaoxing High School (Zhejiang Province), Pingtan Lanhua Middle High School (Fujian Province), and Meihua Anhui Training School (Anhui Province).
The academic schools in their group provide China’s unified national core curriculums including Chinese, English, mathematics, physics, history, biology to approximately 6,300 students, in addition to the fast-growing number of students attending the Meihua Training School. The schools and educational organizations in their group are award winning. This includes Shaoxing High School’s many awards and recognition as one of China’s best 100 Private Schools by the Federation of Chinese Educators, the Association of Private Educators, and the Association of Principals.
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