Exhibit 99.1(ii)

LIJIANG COLLEGE OF
GUANGXI NORMAL UNIVERSITY

FINANCIAL STATEMENTS
AS OF DECEMBER 31, 2008

LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY

CONTENTS

	Pages
Report of Independent Registered Public Accounting Firm		1
Balance Sheet as of December 31, 2008		2
Statements of Operations for the years ended December 31, 2008 and 2007		3
Statements of Shareholders’ Equity for the years ended December 31, 2008 and 2007		4
Statements of Cash Flows for the years ended December 31, 2008 and 2007		5
Notes to the Financial Statements		6 - 12

Jimmy C.H. Cheung & Co
Certified Public Accountants
(A member of Kreston International)  
Registered with the Public Company
Accounting Oversight Board

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors of:
Lijiang College of Guangxi Normal University

We have audited the accompanying balance sheet of Lijiang College of Guangxi Normal University, as of December 31, 2008 and the related statements of operations, shareholders’ equity and cash flows for the years ended December 31, 2008 and 2007. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits of the financial statements provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lijiang College of Guangxi Normal University, as of December 31, 2008, and the results of its operations and its cash flows for the years ended December 31, 2008 and 2007, in conformity with accounting principles generally accepted in the United States of America.

JIMMY C.H. CHEUNG & CO
Certified Public Accountants

Hong Kong

Date: November 21, 2009

1607 Dominion Centre, 43 Queen’s Road East, Wanchai, Hong Kong
Tel: (852) 25295500 Fax: (852) 28651067 Email: jimmycheung@jimmycheungco.com
Website: http://www.jimmycheungco.com

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LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY
BALANCE SHEET
AS OF DECEMBER 31, 2008

	2008
	RMB
ASSETS
CURRENT ASSETS
Cash and cash equivalents		12,727,962
Accounts receivable, net		11,364,561
Prepaid expenses and other current assets		63,762,845
Total Current Assets		87,855,368
PROPERTY AND EQUIPMENT, NET		249,323,663
OTHER ASSETS
Land use rights, net		17,011,680
TOTAL ASSETS		354,190,711
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of notes payable		15,000,000
Deferred revenue		68,344,340
Accrued expenses and other current liabilities		104,474,467
Income taxes payable		3,466,043
Due to holding company		34,460,184
Total Current Liabilities		225,745,034
NON-CURRENT LIABILITIES
Notes payable		90,000,000
TOTAL LIABILITIES		315,745,034
COMMITMENTS AND CONTINGENCIES		—
SHAREHOLDERS’ EQUITY
Registered capital		18,580,000
Retained earnings
Unappropriated		19,865,677
Total Shareholders’ Equity		38,445,677
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		354,190,711

The accompanying notes are an integral part of these financial statements

2

LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

	2008			2007
	RMB			RMB
REVENUES		90,720,379			61,620,668
COST OF REVENUES		(71,331,246	)		(47,151,076	)
GROSS PROFIT		19,389,133			14,469,592
OPERATING EXPENSES
General and administrative expenses		69,329			51,920
Loss on disposal of property and equipment		—			8,609,728
		69,329			8,661,648
INCOME FROM OPERATIONS		19,319,804			5,807,944
OTHER INCOME (EXPENSES)
Interest income		326,383			304,445
Bank loan interest		(8,905,568	)		(1,780,500	)
Other income		23,748			38,900
Total Other (Expenses) Income, net		(8,555,437	)		(1,437,155	)
INCOME BEFORE TAXES		10,764,367			4,370,789
INCOME TAX EXPENSE		1,614,655			655,618
NET INCOME		9,149,712			3,715,171

The accompanying notes are an integral part of these financial statements

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LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY
STATEMENTS OF SHAREHOLDERS’ EQUITY
FOR THE YEAR ENDED DECEMBER 31, 2008

			Unappropriated
	Registered		Retained
	capital		earnings		Total
	RMB		RMB		RMB
Balance at December 31, 2006		18,500,000		7,000,794		25,500,794
Issuance of shares		80,000		—		80,000
Net income for the year		—		3,715,171		3,715,171
Balance at December 31, 2007		18,580,000		10,715,965		29,295,965
Net income for the year		—		9,149,712		9,149,712
Balance at December 31, 2008		18,580,000		19,865,677		38,445,677

The accompanying notes are an integral part of these financial statements

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LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

	2008			2007
	RMB			RMB
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		9,149,711			3,715,171
Adjusted to reconcile net income to cash provided by operating activities:
Depreciation and amortization		17,844,924			5,415,813
Loss on disposal of property and equipment		—			8,609,728
Changes in operating assets and liabilities
(Increase) decrease in:
Accounts receivables		(1,512,563	)		(6,600,569	)
Prepaid expenses and other current assets		(31,244,803	)		18,510,108
Increase (decrease) in:
Deferred revenues		12,427,020			22,340,177
Accrued expenses and other current liabilities		(6,336,514	)		39,054,292
Income taxes payable		1,614,655			655,619
Net cash provided by operating activities		1,942,430			91,700,339
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets and land use rights		(27,696,866	)		(201,872,821	)
Proceeds from the disposal of property and equipment		—			6,975
Net cash used in investing activities		(27,696,866	)		(201,865,846	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares		—			80,000.00
Borrowings from holding company		3,540,184			30,920,000
Bank loans borrowed		15,000,000			90,000,000
Net cash provided by financing activities		18,540,184			121,000,000
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(7,214,252	)		10,834,493
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		19,942,214			9,107,721
CASH AND CASH EQUIVALENTS AT END OF YEAR		12,727,962			19,942,214
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid		8,905,568			5,153,254

SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES

During 2007, the Company capitalized interest cost of RMB3,372,754 as cost of buildings under construction.

The accompanying notes are an integral part of these financial statements

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LIJIANG COLLEGE OF GUANGXI NORMAL UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ORGANIZATION

(A)	Organization
	Lijiang College of Guangxi Normal University (“LJC” or “the College”) was incorporated in the People’s Republic of China (“PRC”) on September 8, 2005. LJC is an education and career preparation college that offers bachelor degree and diploma courses in tourism management, advertising, language studies, computer engineering, finance economics, music, art and physical education. Revenue is generated primarily from student tuition fees and student boarding charges.
(B)	FASB Launches New Accounting Standards Codification
	In June 2009 the Financial Accounting Standards Board (“FASB”) issued FASB Accounting Standards Codification (“Codification”) as the single source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities effective for interim and annual periods ending after September 15, 2009. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification supersedes all existing non-SEC accounting and reporting standards. All other non-grandfathered, non-SEC accounting literature not included in the Codification have become non-authoritative.
	Following the Codification, FASB will not issue new standards in the form of Statements, FASB Staff Positions (“FSP”) or Emerging Issues Task Force (“EITF”) Abstracts. Instead, it will issue Accounting Standards Updates, which will serve to update the Codification, provide background information about the guidance and provide the basis for conclusions on the changes to the Codification.
	GAAP is not intended to be changed as a result of the FASB’s Codification, but it will change the way the guidance is organized and presented. As a result, these changes will have a significant impact on how companies reference GAAP in their financial statements and in their accounting policies. The Trust has adopted the Codification in this quarterly report by using plain English to describe FASB broad topic references.
(C)	Use of estimates
	The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
(D)	Cash and cash equivalents
	For purpose of the statements of cash flows, cash and cash equivalents include cash on hand and demand deposits with a bank with a maturity of less than three months.
(E)	Property and equipment
	Property and equipment are stated at cost, less accumulated depreciation. Expenditures for additions, major renewals and betterments are capitalized and expenditures for maintenance and repairs are charged to expense as incurred.
	Depreciation is provided on a straight-line basis, less estimated residual value over the assets’ estimated useful lives. The estimated useful lives are as follows:

Buildings		20 Years
Paths and Gardening facilities		10 Years
Library assets		5 Years
Sport facilities		10 Years
Instructional equipments		8 Years
Motor vehicles		5 Years
Other furniture, fixtures and equipment		5 Years
Construction in progress	Nil

Land use rights are stated at cost, less accumulated amortization and are amortized over the term of the relevant rights of 50 years from the date of acquisition. Amortization of land use rights for the year ended December 31, 2008 and 2007 was RMB352,574 and RMB264,430, respectively.

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(F)	Long-lived assets
	The Company accounts for long-lived assets under the Statements of Financial Accounting Standards Nos. 142 and 144 “Accounting for Goodwill and Other Intangible Assets” and “Accounting for Impairment or Disposal of Long-Lived Assets” (“SFAS No. 142 and 144”). In accordance with SFAS No. 142 and 144, long-lived assets held and used by the Company are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, when undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. In the opinion of the management, no impairment of property and equipment, intangible assets and land use rights exist at December 31, 2008.
(G)	Investment
	Investment in an investee over which the Company does not have significant influence, the Company carries the investment at cost and recognizes as income any dividend received from distribution of the investee’s earnings. The Company reviews the investment for impairment whenever events or changes in circumstances indicate that the carrying value may no longer be recoverable.
(H)	Fair value of financial instruments
	Statement of Financial Accounting Standards No. 107, “Disclosure About Fair Value of Financial Instruments,” requires certain disclosures regarding the fair value of financial instruments. Fair value of financial instruments is made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair values.
	The carrying value of cash and cash equivalents, accounts receivable (trade and others), accounts payable (trade and others) and accrued liabilities approximate their fair value because of the short-term nature of these instruments. The Company places its cash and cash equivalents with what it believes to be high credit quality financial institutions. The Company has a diversified customer base, most of which are in the PRC. The Company controls credit risk related to accounts receivable through credit approvals, credit limit and monitoring procedures. The Company routinely assesses the financial strength of its students and, based upon factors surrounding the credit risk, establishes an allowance, if required, for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowance is limited.
(I)	Revenue recognition
	The Company’s revenue recognition policies are in compliance with Staff accounting bulletin (SAB) 104. The Company recognizes tuition fees income net of commissions paid, accommodation fee income and catering fees income as services are provided. Payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as deferred revenue. Cost of revenue includes the cost of services provided associated with the revenue recognized within the corresponding time period.
	Deferred revenue represents amounts received from the students against future services since the Company recognizes revenue on the performance of services. Deferred revenue was RMB68,344,340 as of December 31, 2008.
(J)	Income taxes
	The Company accounts for income taxes under the Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (“Statement 109”). Under Statement 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under Statement 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date.
(K)	Segments
	The Company adopted Statement of Financial Accounting Standards No. 131, Disclosures about Segments of an Enterprise and Related Information (“SFAS 131”). SFAS 131 establishes standards for operating information regarding operating segments in annual financial statements and requires selected information for those segments to be presented in interim financial reports issued to stockholders. SFAS 131 also establishes standards for related disclosures about products and services and geographic areas. Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision maker, or decision making group, in making decision how to allocate resources and assess performance. The information disclosed herein, materially represents all of the financial information related to the Company’s principal operating segments. The Company operates in a one segment.

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(L)	Recent Accounting Pronouncements
	On April 9, 2009, the FASB issued authoritative pronouncement regarding interim disclosures about fair value of financial instruments”. This pronouncement amends FASB Statement No. 107, “Disclosures about Fair Value of Financial Instruments,” to require disclosures about fair value of financial instruments for interim reporting periods as well as in annual financial statements of publicly traded companies. This pronouncement also amends APB Opinion No. 28, “Interim Financial Reporting,” to require those disclosures in summarized financial information at interim reporting periods. This pronouncement became effective on April 1, 2009. They do not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this pronouncement requires comparative disclosures only for periods ending after initial adoption. The adoption of this pronouncement did not have a material effect on the Company’s financial statements.
	On April 9, 2009, the FASB issued authoritative pronouncement regarding recognition and presentation of other-than-temporary impairments. This pronouncement amends the other-than-temporary impairment guidance in U.S. GAAP for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements. This pronouncement does not amend existing recognition and measurement guidance related to other-than-temporary impairments of equity securities. This pronouncement became effective on April 1, 2009. They do not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this pronouncement requires comparative disclosures only for periods ending after initial adoption. The adoption of this pronouncement did not have a significant effect on the Company’s financial position or results of operations.
	On April 9, 2009, the FASB issued authoritative pronouncement regarding determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not orderly. This pronouncement provides additional guidance for estimating fair value in accordance with FASB Statement No. 157, “Fair Value Measurements,” when the volume and level of activity for the asset or liability have significantly decreased. This pronouncement also includes guidance on identifying circumstances that indicate a transaction is not orderly. This pronouncement emphasizes that even if there has been a significant decrease in the volume and level of activity for the asset or liability and regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. This pronouncement became effective on April 1, 2009 and is applied prospectively. It does not require disclosures for earlier periods presented for comparative purposes at initial adoption. In periods after initial adoption, this pronouncement requires comparative disclosures only for periods ending after initial adoption. The adoption of the Codification has no significant effect on the Company’s financial position or results of operations.
	On May 28, 2009, the FASB issued authoritative pronouncement regarding subsequent events. The objective of this pronouncement is to establish general standards for the accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this pronouncement sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements; the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements; and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This pronouncement is effective for interim or annual periods ending after June 15, 2009. The adoption of the Codification has no significant effect on the Company’s financial position or results of operations.
	On June 12, 2009, the FASB issued authoritative pronouncement regarding amendments to FASB Interpretation No. 46(R) (“FIN 46(R)”). This pronouncement is a revision to FIN 46(R) and changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. The determination of whether a company is required to consolidate an entity is based on, among other things, an entity’s purpose and design and a company’s ability to direct the activities of the entity that most significantly impact the entity’s economic performance. This pronouncement retains the scope of FIN 46(R) with the addition of entities previously considered qualifying special-purpose entities, as the concept of these entities was eliminated in FASB Statement 166. The Statement is effective as of the beginning of the first fiscal year that begins after November 15, 2009. The Company is currently evaluating whether the adoption of this pronouncement will have a significant effect on its financial position or results of operations.

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On July 1, 2009, the FASB issued authoritative pronouncement, “The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles — a replacement of FASB Statement No. 162”, the FASB Accounting Standards Codification (the “Codification”) became the single source of authoritative nongovernmental US GAAP. The Codification is effective for interim and annual periods ending after September 15, 2009. The adoption of this pronouncement did not have a significant effect on the Company’s financial position or results of operations.

On August 28, 2009, the FASB issued ASU 2009-05 (previously exposed for comments as proposed FSP FAS 157-f) to provide guidance on measuring the fair value of liabilities under ASC 820. The ASU clarifies that the quoted price for the identical liability, when traded as an asset in an active market, is also a Level 1 measurement for that liability when no adjustment to the quoted price is required. In the absence of a Level 1 measurement, an entity must use one or more of the following valuation techniques to estimate fair value (in a manner consistent with the principles in ASC 820), which can be classified into two broad categories:

A valuation technique that uses a quoted price:

Of an identical liability when traded as an asset.

Of a similar liability or of a similar liability when traded as an asset.

Another valuation technique (e.g., a market approach or an income approach), including one of the following:

A technique based on the amount an entity would pay to transfer the identical liability.

A technique based on the amount an entity would receive to enter into an identical liability.

The ASU is effective for the first interim or annual reporting period beginning after the ASU’s issuance. The Company is currently evaluating whether the adoption will have a significant effect on its financial position or results of operations.

In October 2009, the FASB issued ASU 2009-13, “Multiple-Deliverable Revenue Arrangements”, now codified under FASB ASC Topic 605, “Revenue Recognition”, (“ASU 2009-13”). ASU 2009-13 requires entities to allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy. The amendments eliminate the residual method of revenue allocation and require revenue to be allocated using the relative selling price method. ASU 2009-13 should be applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with early adoption permitted. Management is currently evaluating the potential impact of ASU2009-13 on our financial statements.

In October 2009, the FASB issued ASU 2009-14, “Certain Arrangements That Include Software Elements, now codified under FASB ASC Topic 985, “Software”, (“ASU 2009-14”). ASU 2009-14 removes tangible products from the scope of software revenue guidance and provides guidance on determining whether software deliverables in an arrangement that includes a tangible product are covered by the scope of the software revenue guidance. ASU 2009-14 should be applied on a prospective basis for revenue arrangements entered into or materially modified in fiscal years beginning on or after June 15, 2010, with early adoption permitted. Management is currently evaluating the potential impact of ASU 2009-14 on our financial statements.

In October, 2009, the FASB issued ASU 2009-15, “Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other Financing”, now codified under FASB ASC Topic 470 “Debt”, (“ASU 2009-15”), and provides guidance for accounting and reporting for own-share lending arrangements issued in contemplation of a convertible debt issuance. At the date of issuance, a share-lending arrangement entered into on an entity’s own shares should be measured at fair value in accordance with Topic 820 and recognized as an issuance cost, with an offset to additional paid-in capital. Loaned shares are excluded from basic and diluted earnings per share unless default of the share-lending arrangement occurs. The amendments also require several disclosures including a description and the terms of the arrangement and the reason for entering into the arrangement. The effective dates of the amendments are dependent upon the date the share-lending arrangement was entered into and include retrospective application for arrangements outstanding as of the beginning of fiscal years beginning on or after December 15, 2009. Management is currently evaluating the potential impact of ASU 2009-15 on our financial statements.

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2. PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets at December 31, 2008 consisted of the following:

	2008
	RMB
Deferred mangement fee		11,306,912
Deposit for purchase of furniture, fixtures and equipment		129,748
Deposits paid for construction in progress		403,934
Note receivable		51,000,000
Other receivables		922,251
		63,762,845

3. PROPERTY AND EQUIPMENT, NET

The following is a summary of property and equipment at:

	2008
	RMB
Buildings		224,378,341
Paths and Greening facilities		11,445,903
Instructional equipments		8,987,691
Library assets		2,383,986
Motor vehicles		2,516,887
Other furniture, fixtures and equipment		24,180,741
Construction in progress		119,118
		274,012,668
Less: accumulated depreciation		(24,689,005	)
Property and equipment, net		249,323,663

Property and equipment is recorded at cost, including interest incurred during construction. During 2007, the Company capitalized interest cost of RMB3,372,754 as cost of buildings.

Depreciation is computed using the straight-line method over estimated useful lives of the assets. Depreciation expense for the years ended December 31, 2008 and 2007 were RMB17,492,350 and RMB5,151,383, respectively.

4. LAND USE RIGHTS, NET

Land use rights at December 31, 2008 consisted of the following:-

	2008
	RMB
Rights to use land		17,628,684
Less: accumulated amortization		(617,004	)
Land use rights, net		17,011,680

Land use rights are stated at cost, less accumulated amortization over the term of the relevant rights of 50 years from the date of acquisition. Amortization of land use rights for the years ended December 31, 2008 and 2007 were RMB352,574 and RMB264,430, respectively.

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5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities at December 31, 2008 consisted of the following:

	2008
	RMB
Construction costs payable		95,238,795
Advances received from students		3,842,804
Scholarship and allowances payable to students		1,358,911
Accrued employee payroll and welfare		3,979,788
Other tax payable		54,169
		104,474,467

6. NOTES PAYABLE — LONG-TERM

Balance at December 31, 2008:

	RMB
Note payable to a bank at bank’s floating rate per annum, guaranteed by a related party, due September 25, 2009.		15,000,000
Note payable to a bank at bank’s prime rate, plus 10% per annum, guaranteed by a related party, due progressively to March 29, 2014.		90,000,000
		105,000,000
Less: current maturities		15,000,000
		90,000,000

Maturities are as follows:

	RMB
For the year ended December 31,
2009		15,000,000
2010		10,000,000
2011		20,000,000
2012		25,000,000
2013		30,000,000
2014		5,000,000
		105,000,000

Interest paid in 2008 and 2007 were RMB8,905,568 and RMB5,153,254 respectively. During the year ended December 31, 2007, RMB3,372,754 was capitalized as cost of buildings.

7. INCOME TAX

The Company was incorporated in Guangxi of the PRC and is subject to PRC income tax. According to the western development preferential policy, the College is entitled to an income tax reduction. The income tax rate was reduced from 25% to 15% on a permanent basis.

The income tax expenses for 2008 and 2007 are summarized as follows:

PRC Income Tax	2008	2007
	RMB	RMB
Current	1,614,655	655,618
	1,614,655	655,618

No deferred tax liabilities incurred from temporary differences relating to revenue earned but not yet taxable.

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8. SHAREHOLERS’ EQUITY

Registered capital

The Company was incorporated on September 8, 2005. Total registered capital paid up was RMB18,580,000.

9. CONCENTRATIONS AND RISKS

During 2008 and 2007, both 100% of the Company’s assets were located and 100% of the Company’s revenues were earned in China.

10. SUBSEQUENT EVENTS

The College entered into the Land Expropriation Agreement with Guilin Yanshan District Government on November 16, 2009 to compensate the District Government of approximately RMB15,541,000 for land clearance charges under the agreement.

East Achieve Limited (“EA”) was incorporated on September 15, 2004 in the British Virgin Islands as a limited liability company. EA is an investment holding company. EA established Shanghai Xijiu Information and Technology Co., Ltd. (“Xijiu”) in the PRC as a wholly owned subsidiary on January 20, 2005. The business activities of Xijiu are information technology development, consulting and investment holding. On September 9, 2009, Xijiu acquired the entire equity interest of China Lianhe Biotechnology Co., Ltd. (“Lianhe”) which owned the entire equity interest of LJC. On September 28, 2009, the shareholder of EA entered into a Share Transfer Agreement with ChinaCast Communication Holdings Limited (“CCH”) to dispose the entire equity interest in EA to CCH. This transaction was consummated on October 5, 2009.

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