Description
We are a holding company incorporated under the laws of the British Virgin
Islands. Through our subsidiaries and variable interest entity, we provide
online exam preparation services and related technology solutions and also
produce online training course materials in China and have been in
operation for
nearly 17 years. We develop our own online education materials that are offered
through the cloud and that can be used for a wide range of purposes, such as
standard examination preparation, professional training and interactive programs
for educational purposes other than exam preparation. We also produce thousands
of online classes. Our services not only include development of online education
platforms and online course materials but also consist of comprehensive cloud
service for online education and exam preparation training. The bulk of our
operations is conducted via our wholly owned subsidiaries, primarily Beijing
Huaxia Dadi Distance Learning Services Co., Ltd. while the rest of our business
operations, including certain portions of our B2C services and technology
services, are conducted through our variable interest entity Beijing Huaxia Dadi
Digital Information Technology Co., Ltd. We do not directly own the businesses
or assets in the PRC that are operated by our variable interest entity,
including our PRC internet content license.
We currently offer online education services and technology research &
development services. Our online education services currently comprises Online
Education Cloud Services and Online Training Services.
Online Education Cloud Service (“B2B2C”)
We provide online education platforms to institutions, such as universities and
training institutions, and online course development service companies. Our
teachers are well regarded and recommended by our clients, which include
universities and academic institutions. Through our product development team, we
interview and enlist teachers who we use to record teaching sessions. In return,
we provide fixed compensation to teachers. We have developed three separate
types of B2B2C platforms: a self-study examination platform, a continuing
education platform and a non-diploma training platform (which allows students to
enroll in courses for college credit). These platforms are available both online
and via mobile applications that we design for each of our clients. Currently,
we are primarily focused on providing clients with B2B2C services relating to
self-study examinations, which are a set of standard national examinations
necessary to obtain college degrees in China. We have offered such services
since September 2009. We entered into the adult education field and commenced
offering continuing education platforms in late 2016. We offer over 700 courses
to students that use this platform. We commenced offering our non-diploma
training platforms in March 2017. We currently provide services in ten provinces
in China and believe that we are the leading service provider in this market.
Online Training Service (“B2C”)
We provide online training and examination preparation services directly to
students for a fee. We have provided this service since 2000, however, due to
limited marketing efforts, the revenue generated from this service has been
limited. Beginning in early 2017, we began to increase our marketing efforts for
our B2C service and our revenue from this service increased 50% in the first
half of 2017 compared to the first half of 2016. With the increased demand for
continuing education, we plan to expand our B2C service. In connection with our
B2C service, we provide an online cloud education platform targeting end users,
which is available both online and via the mobile applications we design for
each program. We plan to license this platform to other offline education and
training institutions for them to offer online services and to manage their
online courses and online users. Students that use this service are primarily
college students and students preparing for the self-study examination. In the
last two years, we have provided on average approximately 350,000 courses to
students per year.
Technology Research & Development Services
Another major aspect of our operations is dedicated to developing and
maintaining online education platforms and online courses for our clients,
comprising universities, government agencies and private clients such as
publishers and education service companies. We also provide consulting,
maintenance and updating services relating to online education programs we have
developed for our clients. We have provided these services to our clients since
our wholly-owned subsidiary, Beijing Huaxia Dadi Distance Learning Services Co.,
Ltd. (“Beijing Distance Learning”) commenced operations in 1999. Our largest
clients for our technology services business are Shanghai World Publishing Co.
and the State Intellectual Property Bureau Training Center. Pursuant to our
agreements with Shanghai World Publishing Co., we develop and update platforms
for its Electric Backpack program, an online interactive teaching program for
elementary and middle school students in China. We have been providing online
course development services to the State Intellectual Property Bureau Training
Center since 2002. Our services to the center include training course recording,
editing and posting as well as platform maintenance and updating for a fixed fee
agreed upon by both parties.
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Our principal executive offices in Beijing are located at Room 505, Building
No.40, No.1 Disheng North Street, Economic and Technological Development Zone,
Beijing, China 100176. Our telephone number at this address is +86 10 57925024.
We also have offices in Hunan, Shanghai, Jiangsu, Hubei and Guizhou. Our
principal website is www.edu-edu.com.
