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Profit From China's Demand For Private Education

Education remains one of China's fastest-growing sectors. According to a recent Forbes article, "Most parents dig deep to give their child (usually only one) the best chance at success, which is why education ranks second only to property in discretionary spending in China ($140 billion in 2011)." Private schools account for more than 10% of total student enrollments in China, and their share continues to grow as China's expanding middle class spends more on education.

China Education International, Inc. (OTCBB: CEII) offers a variety of programs that capitalize on China's demand for private education. Led by a skilled U.S. management team with years of business and education experience, CEII oversees the operation of four schools with more than 15,000 students enrolled. The Company expects to quadruple its student population to more than 60,000 over the next year through acquisition. Acquisitions are completed using shares of CEII, and prior owners can join the advisory board of the Company's Chinese management company.

CEII also provides international educational programs for high school and college students through its American Education Center (NYSE:AEC) division. Founded by Dr. Max Chen, a pioneer in China's private education sector, AEC has relationships with more than 50 schools and universities in China and the United States.

In addition, the Company recently rolled out its Super-ESL (English as a Second Language) program, a next-generation platform that helps Chinese students learn English and improve their pronunciation skills. The system includes instruction from native English speakers, video and audio chats between Chinese and American students, and innovative teaching protocols to reduce the length of time required for students to master English.

Additional revenue generators for CEII include after-school and weekend tutoring; advanced placement training and testing; college entrance consulting, application, and interview preparation; and recruitment of English-speaking teachers for schools across China. CEII is also developing its "Champs" brand for use in Chinese kindergartens and elementary schools. The Company expects to introduce the brand in early 2013.

CEII's diversified business model, experienced management team, and state-of-the-art programs offer the potential for strong growth. To learn more about the Company, visit CEII's RedChip profile page or sign up for our weekly newsletter, The RedChip Money Report, to receive the latest updates on the Company.

Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.