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China Ventures launches Chinese kindergarten chain
2004-02-18 09:36 ET - News Release
Mr. Ronald Shon reports
CHINA VENTURES INC.: MAJOR NEW INITIATIVE-START OF NATIONAL KINDERGARTEN SCHOOL CHAIN
China Ventures has launched a national chain of schools to be called the New Happiness Kindergarten Schools, following a recent decision by the Chinese central government to encourage private capital investment into the kindergarten sector.
CVI's Chinese subsidiary, Today's Teachers Technology and Culture Ltd. (TTTC), already a leading provider of kindergarten education materials, has secured an agreement in principle to acquire a 70-per-cent interest for $200,000 in a kindergarten school currently owned by the Tianjian Kindergarten Teachers' College. This school will be converted to become the first New Happiness Kindergarten. This agreement is subject to board approval.
Currently, China has approximately 180,000 kindergarten schools for 27 million students. CVI's strategy in this new initiative is to acquire a majority equity interest in existing kindergarten schools, exclusive of land and buildings, and train the teachers to use TTTC's leading-edge, bilingual curriculum materials.
The company's goal is to have up to 3,000 top-level kindergarten schools nationwide in China, with a total enrolment in excess of 600,000 students, each of whom it is anticipated will spend from $50 to $500 annually for curriculum materials and $2,000 to $20,000 for tuition.
Ronald Shon, president, said: "We are extremely excited to participate in this growing area. The successful implementation is anticipated to provide an ongoing and increasing stream of cash flow for the company. Given the tremendous growth of the Chinese education market and our ability to provide market-sensitive products, we believe that this initiative will add significantly to shareholder value."
