[X]
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
for the quarterly period ended June 30,
2005
|
[
]
|
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
for the transition period from _______ to
_______
|
CHINA
EDUCATION ALLIANCE, INC. AND SUBSIDIARY
|
||||
Consolidated
Balance Sheet
|
||||
At
June 30, 2005 (Unaudited)
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and cash equivalents
|
$
|
423,298
|
||
Inventories
|
4,734
|
|||
Other
receivables
|
302
|
|||
TOTAL
CURRENT ASSETS
|
428,334
|
|||
PROPERTY
AND EQUIPMENT
|
||||
Machinery
& equipment
|
2,407,600
|
|||
Accumulated
depreciation
|
(130,077
|
)
|
||
NET
PROPERTY AND EQUIPMENT
|
2,277,523
|
|||
TOTAL
ASSETS
|
$
|
2,705,857
|
||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Other
payables and accrued liabilities
|
$
|
11,515
|
||
Convertible
note payable
|
76,865
|
|||
Income
taxes payable
|
77,714
|
|||
TOTAL
CURRENT LIABILITIES
|
166,094
|
|||
STOCKHOLDERS'
EQUITY
|
||||
Preferred
stock ($0.001 par value, 5,000,000 shares authorized:
|
||||
none
issued and outstanding)
|
-
|
|||
Common
stock ($0.001 par value, 150,000,000 shares authorized:
|
||||
57,915,000
issued and outstanding)
|
57,915
|
|||
Additional
paid-in capital
|
2,425,469
|
|||
Retained
earnings
|
35,879
|
|||
Due
to stockholders
|
20,500
|
|||
TOTAL
STOCKHOLDERS' EQUITY
|
2,539,763
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
2,705,857
|
||
The
accompanying notes are an integral part of these consolidated financial
statements
|
CHINA
EDUCATION ALLIANCE, INC. AND SUBSIDIARY
|
|||||||
Consolidated
Statement of Operations
|
|||||||
For
the three months and six months ended June 30, 2005
(Unaudited)
|
|||||||
Three
months ended
|
|
Six
months ended
|
|
||||
|
|
June
30, 2005
|
|
June
30, 2005
|
|||
REVENUES:
|
|||||||
Sales
|
$
|
285,411
|
$
|
364,028
|
|||
Cost
of goods sold
|
(30,656
|
)
|
(56,294
|
)
|
|||
GROSS
PROFIT
|
254,755
|
307,734
|
|||||
OPERATING
EXPENSES:
|
|||||||
Selling,
general and administrative
|
5,266
|
21,163
|
|||||
Professional
fees
|
3,500
|
7,000
|
|||||
Depreciation
and amortization
|
25,049
|
50,098
|
|||||
TOTAL
OPERATING EXPENSES
|
33,815
|
78,261
|
|||||
INCOME
FROM OPERATIONS
|
220,940
|
229,473
|
|||||
OTHER
INCOME (EXPENSES):
|
|||||||
Interest
income
|
136
|
260
|
|||||
Interest
expense
|
(2,327
|
)
|
(5,183
|
)
|
|||
Other
|
(28
|
)
|
(1,236
|
)
|
|||
TOTAL
OTHER INCOME (EXPENSES)
|
(2,219
|
)
|
(6,159
|
)
|
|||
INCOME
BEFORE INCOME TAXES
|
218,721
|
223,314
|
|||||
INCOME
TAX EXPENSE
|
(74,101
|
)
|
(77,714
|
)
|
|||
NET
INCOME
|
$
|
144,620
|
$
|
145,600
|
|||
Basic
and fully diluted net income per common share
|
$
|
-
|
$
|
-
|
|||
Basic
and fully diluted weighted average shares
|
57,915,000
|
57,915,000
|
|||||
The
accompanying notes are an integral part of these consolidated financial
statements
|
CHINA
EDUCATION ALLIANCE, INC. AND SUBSIDIARY
|
||||
Consolidated
Statement of Cash Flows
|
||||
For
the six months ended June 30, 2005
(Unaudited)
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||
Net
income
|
$
|
145,600
|
||
Adjustments
to reconcile net loss to net
|
||||
cash
provided by (used in) operating activities:
|
||||
Depreciation
|
97,557
|
|||
(Increase)
decrease in operating assets
|
||||
Inventories
|
6,431
|
|||
Other
receivables
|
(302
|
)
|
||
Increase
(decrease) in operating liabilities:
|
||||
Income
taxes payable
|
75,517
|
|||
Other
payabes and accrued liabilities
|
(11,929
|
)
|
||
NET
CASH PROVIDED BY OPERATING ACTIVITIES
|
312,874
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Proceeds
from stockholder
|
17,500
|
|||
Payment
on convertible note
|
(12,317
|
)
|
||
Due
to shareholders
|
15,500
|
|||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
20,683
|
|||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
333,557
|
|||
CASH
AND CASH EQUIVALENTS:
|
||||
Beginning
of year
|
89,741
|
|||
End
of period
|
$
|
423,298
|
||
Supplemental
disclosures of cash flow information:
|
||||
Cash
paid for interest
|
$
|
5,183
|
||
Cash
paid for income taxes
|
$
|
2,197
|
||
Supplemental
disclosures of noncash financing activities:
|
||||
Common
stock issued for services
|
$
|
-
|
||
The
accompanying notes are an integral part of these consolidated financial
statements
|
(1)
|
The
balance sheet consists of the net assets of the acquirer at historical
cost and the net assets of the acquiree at historical
cost.
|
(2)
|
The
statement of operations includes the operations of the acquirer
for the
periods presented and the operations of the acquiree from the date
of the
merger.
|
2005
|
|
|
|
||||
|
|
(Unaudited)
|
|
2004
|
|||
Debit
cards
|
$
|
4,734
|
$
|
11,165
|
|||
Less:
provision of obsolescence
|
-
|
-
|
|||||
$
|
4,734
|
$
|
11,165
|
2005
|
|
|
|
||||
|
|
(Unaudited)
|
|
2004
|
|||
Note
payable
|
$
|
76,865
|
$
|
89,182
|
v |
Buildup
the infrastructure to ensure fast access and to satisfy the volume
coming
with increasing
demand ;
|
v |
Boost
market shares via nation-wide advertising
campaigns;
|
v |
Invest
in human resources to improve the quality of
services;
|
v |
Open
branch offices in key cities.
|
CHINA
EDUCATION ALLIANCE, INC.
(Registrant)
|
||
|
|
|
Date: August 15, 2005 | By: | /s/ Yu, Xi Qun |
Yu, Xi Qun President
|