CHINA EDUCATION INTERNATIONAL, INC. - FORM 8-K - EX-99.2 - UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2010 AND UNAUDITED PRO FORMA CONSOLIDATED INCOME STATEMENTS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2010 AND THE YEAR ENDED DECEMBER 31, 2009. - January 6, 2011

Attached files

file filename
8-K - USCHINA CHANNEL., INC FORM 8-K DATED JANUARY 6, 2011 - CHINA EDUCATION INTERNATIONAL, INC.uscc8-k.htm
EX-10.6 - SHARE PLEDGE AGREEMENT DATED NOVEMBER 25, 2010 BETWEEN HANGZHOU KUNJIANG EDUCATION TECHNOLOGY CO., LTD. AND SHAOXING RED GREEN BLUE TRADING CO., LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-6.htm
EX-10.9 - EXCLUSIVE COOPERATION AGREEMENT DATED NOVEMBER 25, 2010 BETWEEN HANGZHOU KUNJIANG EDUCATION TECHNOLOGY CO., LTD., SHAOXING RED GREEN BLUE TRADING CO., LTD. AND SHAOXING CHINA TEXTILE CITY HIGH SCHOOL. - CHINA EDUCATION INTERNATIONAL, INC.exh10-9.htm
EX-10.5 - EDUCATION SERVICE AGREEMENT DATED NOVEMBER 12, 2010 BETWEEN SHAOXING CHINA TEXTILE CITY HIGH SCHOOL AND ZHEJIANG RED GREEN BLUE EDUCATION GROUP CO., LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-5.htm
EX-10.7 - POWER OF ATTORNEY DATED NOVEMBER 25, 2010 BETWEEN CHINA EDUCATION SCHOOLS CO., LTD AND GUOTONG CHEN. - CHINA EDUCATION INTERNATIONAL, INC.exh10-7.htm
EX-10.2 - LEASE AGREEMENT DATED JULY 28, 2002 BETWEEN SHAOXING RED GREEN BLUE TRADING CO. LTD AND SHAOXING CHINA TEXTILE CITY HIGH SCHOOL. - CHINA EDUCATION INTERNATIONAL, INC.exh10-2.htm
EX-10.3 - EDUCATION SERVICE AGREEMENT DATED JULY 30, 2002 BETWEEN SHAOXING CHINA TEXTILE CITY HIGH SCHOOL AND ZHEJIANG RED GREEN BLUE EDUCATION GROUP CO., LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-3.htm
EX-10.4 - LEASE AGREEMENT DATED NOVEMBER 12, 2010 BETWEEN SHAOXING RED GREEN BLUE TRADING CO. LTD. AND SHAOXING CHINA TEXTILE CITY HIGH SCHOOL. - CHINA EDUCATION INTERNATIONAL, INC.exh10-4.htm
EX-10.10 - CONSULTING AGREEMENT DATED DECEMBER 31, 2010 BETWEEN USCHINA CHANNEL, INC., CHINA DIRECT INVESTMENTS, INC., CDI SHANGHAI MANAGEMENT CO., LTD., AND CAPITAL ONE RESOURCE CO., LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-10.htm
EX-10.13 - SHARE EXCHANGE AGREEMENT DATED DECEMBER 31, 2010 BETWEEN USCHINA CHANNEL, INC., ANDREW CHIEN, CHINA EDUCATION SCHOOLS, LTD., AND THE SHAREHOLDERS OR CHINA EDUCATION SCHOOLS, LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-13.htm
EX-10.12 - BILL OF SALE, ASSIGNMENT AND ASSUMPTION OF LIABILITY DATED DECEMBER 31, 2010 BETWEEN USCHINA CHANNEL AND CHINA BULL HOLDINGS, INC. - CHINA EDUCATION INTERNATIONAL, INC.exh10-12.htm
EX-10.11 - SERVICE AGREEMENT DATED DECEMBER 31, 2010 BETWEEN CHINA BULL MANAGEMENT, INC., AND CHINA BULL HOLDING, INC. - CHINA EDUCATION INTERNATIONAL, INC.exh10-11.htm
EX-10.15 - SHARE TRANSFER AGREEMENT DATED NOVEMBER 25, 2010 BETWEEN RUIFENG CHEN AND CHINA EDUCATION SCHOOLS CO., LTD - CHINA EDUCATION INTERNATIONAL, INC.exh10-15.htm
EX-10.14 - SHARE TRANSFER AGREEMENT DATED NOVEMBER 25, 2010 BETWEEN JINJIN YE AND CHINA EDUCATION SCHOOLS CO., LTD - CHINA EDUCATION INTERNATIONAL, INC.exh10-14.htm
EX-10.8 - CALL OPTION AGREEMENT DATED NOVEMBER 25, 2010 BETWEEN SHAOXING RED GREEN BLUE TRADING CO., LTD AND CHINA EDUCATION SCHOOLS CO., LTD. - CHINA EDUCATION INTERNATIONAL, INC.exh10-8.htm
EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF SHAOXING TEXTILE CITY HIGH SCHOOL AS OF DECEMBER 31, 2009 AND 2008 AND UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF SHAOXING HIGH SCHOOL AS OF SEPTEMBER 30, 2010 AND 2009. - CHINA EDUCATION INTERNATIONAL, INC.exh99-1.htm
 
Exhibit 99.2

The following unaudited pro forma financial statements are based on, and should be read in conjunction with:

 
·
Our audited financial statements for the fiscal year ended June 30, 2010, our unaudited financial statements for the quarter ended September 30, 2010 and the related notes thereto, which are incorporated by reference into this Current Report on Form 8-K;

 
·
The audited financial statements of Shaoxing School as of and for the years ended December 31, 2009 and 2008, the unaudited financial statements of Shaoxing School as of and for the nine months ended September 30, 2010 and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for such periods, all of which appear elsewhere in this report.

The pro forma financial statements give effect to the acquisition of China Education and the consolidation of Shaoxing School as a variable interest entity for which China Education is the primary beneficiary, as well as the additional shares of common stock that were issued as compensation to consultants in connection with this transaction, as if the transaction had taken place on the date or at the beginning of the period presented.

The unaudited pro forma financial statements are for informational purposes only, are not indications of future performance, and should not be considered indicative of actual results that would have been achieved had the recapitalization transactions actually been consummated on the dates or at the beginning of the periods presented.

 
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USCHINA CHANNEL INC. AND SUBSIDIARY
  
UNAUDITED PROFORMA CONSOLIDATED BALANCE SHEET
  
As of September 30, 2010
  
                         
   
USChina Channel
Historical
    
Shaoxing School
Historical
    
Proforma
Adjustments
    
Proforma
Consolidated
  
ASSETS
                        
CURRENT ASSETS:
                        
Cash and cash equivalents
   $ 32,424     $ 741,560     $ -     $ 773,984  
Prepaid expense - related parties
     -       583,539       -       583,539  
Prepaid expense and other current assets
     -       19,816       -       19,816  
Total current assets
     32,424       1,344,915       -       1,377,339  
                                 
Restricted cash
     -       79,064       -       79,064  
Prepaid expense - long term
     -       5,620,337       -       5,620,337  
Goodwill
             -       1,948,403       1,948,403  
Property and equipment, net
     -       472,539       -       472,539  
                                 
Total assets
   $ 32,424     $ 7,516,855     $ 1,948,403     $ 9,497,682  
                                 
LIABILITIES AND EQUITY
                                
CURRENT LIABILITIES:
                                
Accounts payable and accrued expenses
   $ -     $ 253,965     $ -     $ 253,965  
Other payable
     -       128,611       -       128,611  
Taxes payables
     -       6,505       -       6,505  
Due to related parties
     -       479,166       -       479,166  
Deferred revenue
     -       2,010,052       -       2,010,052  
Total current liabilities
     -       2,878,299       -       2,878,299  
                                 
Deferred revenue - long term
     -       1,546,959       -       1,546,959  
Total other assets
     -       1,546,959       -       1,546,959  
                                 
Total liabilities
     -       4,425,258       -       4,425,258  
                                 
EQUITY:
                                
shareholders' equity
                                
Common stock: $.001 par value
     1,265       -       19,541       20,806  
Additional paid-in capital
     170,023       -       20,498,188       20,668,211  
Members' equity
             13,672       (13,672 )     -  
Retained earnings
     (138,864 )     2,946,233       (18,423,962 )     (15,616,593 )
Other comprehensive income - foreign currency
     -       131,692       (131,692 )     -  
Total shareholders' equity
     32,424       3,091,597       1,948,403       5,072,424  
                                 
Total liabilities and shareholders' equity
   $ 32,424     $ 7,516,855       1,948,403     $ 9,497,682  

a)
Denotes our estimate of the excess of the purchase price over the fair value of net assets acquired or controlled as of the balance sheet date, subject to adjustment as required under FASB ASC 805
b)
Denotes 4,800,000 shares issued to the equity holders of Shaoxing School, at a value of $1.05 per share based on the quoted market price of our common stock immediately prior to the transaction
c)
Denotes 14,740,694 shares of our common stock issued to consultants in connnection with the transaction, at a value of $1.05 per share based on the quoted market price of our common stock immediately prior to the transaction
d)
Denotes the new basis of accounting for Shaoxing School, which is consolidated in our financial statements as a variable interest entity for which China Education is the primary beneficiary


 
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USCHINA CHANNEL INC. AND SUBSIDIARY
  
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
FOR THE YEAR ENDED DECEMBER 31, 2009
  
(Unaudited)
  
                         
   
USChina Channel
Historical
    
Shaoxing School
Historical
    
Proforma
Adjustments
    
Proforma
Consolidated
  
                         
Net revenues
   $ -     $ 3,261,695     $ -     $ 3,261,695  
Cost of sales
     -       1,312,840       -       1,312,840  
Gross profit
     -       1,948,855       -       1,948,855  
                                 
Operating expenses:
                                
General and administrative
     99,470       1,227,164       15,477,729       16,804,363  
Total operating income
     (99,470 )     721,691       (15,477,729 )     (14,855,508 )
                                 
Other income:
                                
Other income
     436       94,111       -       94,547  
Subsidy income
     -       12,630       -       12,630  
Total other income (expenses)
     436       106,741       -       107,177  
                                 
Net income (loss)
   $ (99,034 )   $ 828,432     $ (15,477,729 )   $ (14,748,331 )
                                 
Net income per common share
                                
Basic
   $ -                     $ (0.71 )
Diluted
   $ -                     $ (0.71 )
                                 
Weighted average number of shares outstanding:
                                
Basic and diluted
     1,265,456               19,540,694       20,806,150  

a)
Denotes 14,740,694 shares of our common stock issued to consultants in connnection with the transaction, at a value of $1.05 per share based on the quoted market price of our common stock immediately prior to the transaction
b)
Denotes 4,800,000 shares issued to the equity holders of Shaoxing School, at a value of $1.05 per share based on the quoted market price of our common stock immediately prior to the transaction


 
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USCHINA CHANNEL INC. AND SUBSIDIARY
  
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010
  
(Unaudited)
  
                         
   
USChina Channel
Historical
    
Shaoxing School
Historical
    
Pro forma
Adjustments
    
Proforma
Consolidated
  
                         
Net revenues
   $ -     $ 2,908,822     $ -     $ 2,908,822  
Cost of sales
     -       1,120,774       -       1,120,774  
Gross profit
     -       1,788,048       -       1,788,048  
                                 
Operating expenses:
                                
General and administrative
     3,746       1,117,946               1,121,692  
Total operating income
     (3,746 )     670,102       -       666,356  
                                 
Other income:
                                
Other income
     189       34,132       -       34,321  
Subsidy income
     -       7,300       -       7,300  
Total other income
     189       41,432       -       41,621  
                                 
Net income
   $ (3,557 )   $ 711,534     $ -     $ 707,977  
                                 
Net income per common share
                                
Basic
   $ -                     $ 0.03  
Diluted
   $ -                     $ 0.03  
                                 
Weighted average number of shares outstanding:
                                
Basic and diluted
     1,265,456               19,540,694       20,806,150  

a)
Denotes 4,800,000 shares issued to the equity holders of Shaoxing School and 14,740,694 shares of our common stock issued to consultants in connection with the transaction at a value of $1.05 per share based on the quoted market price of our common stock immediately prior to the transaction


 
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CHINA EDUCATION INTERNATIONAL, INC. Reports