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China Chuanglian Education Financial Announces 2017 Annual Result

China Chuanglian Education Financial Group Limited has announced its annual results. For the year ended 31 December 2017, the Group recorded a turnover from continuing operations of approximately RBM134.0 million (2016: approximately RMB88.3 million), representing a significant increase of approximately 51.8%.

This is mainly due to the increased geographical coverage of the educational consultancy and online training and education business in the current year, resulting in the increase of revenue from the educational consultancy and online training and education business.

During the year, the loss attributable to owners of the company was significantly narrowed to RMB15.2 million as compared to a loss of approximately RMB189.2 million in the past year.

During the year, basic loss per share was RMB 0.33 cents (2016: RMB 4.07 cents).

The Group is principally engaged in the provision of online training and education services in China. Being one of the first online education providers in China, the Group mainly provides vocational training in relation to job adaption and skill enhancement to civil servants and professional technical personnel, such as lawyers, accountants, doctors and teachers. The current population of civil servants professional technical personnel in China is over 77 million.

The Group is currently providing online training and education services to its users through internet and telecommunication networks. The Group is operating over 120 online training and education platforms and a mobile terminal learning platform, Rongxue App. Currently, it has over 4 million users.

Over the past few years, its online training platforms have provided training to over 20 million people. Registered users of the Rongxue App has increased quickly to over 2 million.

During the year, the Group continued to expand its online training and education business to more geographical areas in China. Its online training and education business currently covers 17 provinces, autonomous regions and municipalities as well as 40 cities.

Internet Finance

Leveraging on the accurate big data accumulated from the online training, the Group has taken certain steps to expand into the financial business in the current year. Its Xinmei Mutual Life Insurance Agency was granted all licences to commence its business in May 2017 and Xinmei Mutual also launched its first formal insurance product during 2017.

The Group has acquired 100% equity interest in Beijing Zhongjin Insurance Brokerage Limited, an insurance brokerage company in China, and 100% equity interest in Well Tunes Financial Group Limited, an insurance brokerage company in Hong Kong, to assist its existing and potential customers with their possible needs of offshore insurance products.

Future Plans

 Over the past few years, the Group's online training and education business has gradually increased its geographical coverage in China. In the coming years, the Group will continue to expand its geographical coverage to new business areas and promote the online training and education penetration rate in the existing business areas.

During 2017, the Chinese government introduced a new standard named "National Occupational Qualification" for professional technical personnel and skilled personnel which covers 139 different occupations. It is believed that it represents a huge business opportunity to the Group's online training and education business.

Apart from the domestic training and education, the Group aims to introduce certain high quality international curriculum in order to diversify its business, as well as promote the globalisation and recognition of the education system in China.

The Group is also exploring the possible development of securities trading and asset management business to further satisfy the potential financial needs of customers. It is believed that the huge volume of accurate data accumulated from the Group's online training and education business can bring the Group forward to another business opportunity in online financial services which can become another growth driver in the foreseeable future.

Loss significantly narrowed; revenue surged 51.8%

Financial Highlights

For the year ended 31 Dec

HK$000

2017

2016

Turnover

134,022

88,287

Securities trading

4,253

-

Educational consultancy and online training & education services income

126,144

88,287

Insurance brokage

3,625

-

Gross profit

73,748

44,950

Loss attributable to owners of the Company

(15,232)

(189,233)

Adjusted loss attributable to owners of the Company*

(6,729)

(65,618)

Basic loss per share (RMB cents)

(0.33)

(4.07)

Adjusted basic loss per share (RMB cents)*

(0.14)

(1.41)

*Excluding share-based payments and impairment losses charged/reversed

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