The US overall economy might nonetheless be working rapid and strong, but its hazard of suddenly falling into a economic downturn nonetheless looms large, even with the Federal Reserve’s attempts, previous Treasury Secretary Larry Summers warned Monday.
Summers explained to CNN’s Poppy Harlow in an job interview that he expects the Fed will have to elevate its benchmark curiosity amount larger than anticipated and that central bank’s “push and push” to beat inflation will shortly cause a downturn.
“The process of bringing down inflation will carry on a recession at some phase, as it virtually always has in the past,” Summers said.
And for the US overall economy, it could very likely imply a “Wile E. Coyote minute,” Summers claimed, referencing the cartoon canine’s relentless — still futile — pursuit of the fast Roadrunner off a cliff and into mid-air.
Gravity ultimately could get out.
“The financial system could hit an air pocket in a several months,” he stated.
For the previous calendar year, the Fed has enacted a sequence of interest amount hikes aimed at chilling demand and cooling down historically large inflation. In current months, as the rate of rate improves has moderated, the central bank has eased off the gasoline pedal.
In February, the Fed’s policymaking committee accepted a quarter-issue fascination price hike — its smallest raise in several months.
But in the months adhering to that meeting, there was a barrage of remarkably strong economic info, demonstrating blockbuster job gains, hearty shopper expending and unyielding inflation.
“I do not consider there is any dilemma that we do not but have inflation on a secure glide route everywhere near down to the 2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} [Fed target] stage,” Summers mentioned. “And right up until the Fed can be assured of that, it’s heading to have to be tightening alternatively than easing.”
Some Fed customers agree.
Federal Reserve Chairman Jerome Powell has cautioned that bringing down inflation will acquire a “significant period of time,” when other Fed leaders have indicated they’re open to larger sized fascination rate hikes.
As of Monday, markets are expecting the Fed to make an additional quarter-place raise: The CME FedWatch Tool is demonstrating a 69.4{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} likelihood of these a hike however, the perceived odds of a half-place maximize (at 30.6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}) have grown substantially in the course of the previous several months. One particular thirty day period ago, the probability for a 50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}-stage raise was 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, in accordance to the CME FedWatch Tool.
Summers stated his very best guess would be for the fed resources amount to improve from its present-day assortment (4.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to 4.75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}) to 5.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, but famous he “wouldn’t be amazed” if it were being to strike 6{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, offered the uncertainties in the economic climate.
“Hope for the best but approach for the worst, I think is the suitable assistance,” Summers mentioned.
Biden is envisioned to carry out wide college student-financial loan reduction ahead of payments resume September 1.
That is considerably less than two months away, and Democrats and the GOP have problems about its implementation.
The Schooling Department claims it is really well prepared to have out no matter what Biden decides.
A good deal is at stake for hundreds of thousands of federal-university student-mortgage debtors around the up coming few months.
From broad pupil-financial loan forgiveness to resuming college student-financial loan payments soon after a two-12 months pause, borrowers are anxiously awaiting announcements of any reduction — but lawmakers on each sides of the aisle have considerations about no matter if President Joe Biden’s Education and learning Section has the resources it needs to carry everything out successfully.
Schooling Secretary Miguel Cardona instructed reporters previous thirty day period the department was well prepared.
“We are ready to roll up our sleeves,” he mentioned, incorporating that the office experienced “been working nonstop” on student-debt relief.
Biden is thinking about $10,000 in scholar-financial loan forgiveness for borrowers building below $150,000 a year, The Washington Put up reported, and he is very likely to announce his remaining final decision in July or August, shut to when the scholar-financial loan-payment pause expires after August 31.
But with that day significantly less than two months away, with no indicator as to regardless of whether the pause will be extended, lawmakers and advocates are uncertain all these actions can be carried out on these types of a quick timeline.
“When it comes to preparedness, the Division of Training might as well be having a page out of President Lyndon Johnson’s weathered playbook: Hunker down like a jackass in a hailstorm. This will come as a shock to no one,” Rep. Virginia Foxx, a top rated Republican on the House’s education and learning committee, explained to Insider.
“Despite what the Secretary mentioned, there has been zero work to exhibit that the Division is all set to apply just about anything,” Foxx, who has often criticized college student-bank loan aid, added. “When it will come to squandering hundreds of billions of taxpayer funds, I hope the division is at the quite least ready to share that approach with the American men and women — the similar men and women creating the checks.”
An Schooling Division spokesperson explained to Insider that it was continuing to overview alternatives for broad relief and would connect any ideas instantly with debtors.
Debtors ended up promised ‘ample detect,’ but the deadline is 6 weeks absent
College student-bank loan borrowers have faced a great deal of uncertainty for the duration of the pandemic. Although Biden has extended the pause on pupil-personal loan payments four instances for the duration of his presidency, the extensions ended up introduced quite shut to the day payments were being set to resume, giving debtors little time to financially system. Past month, Cardona confident debtors any bulletins of relief, or additional extensions, would be carried out well in progress.
“I never have any info now to share with you about when it would close,” Cardona advised lawmakers past month, referring to the student-loan-payment pause. “I know we have a date, and it could be that it truly is extended. Or it could be that it starts off there. But what I will say is that our debtors will have enough see. And we will connect that with you as very well.”
When he didn’t specify what he intended by “enough see,” some may well disagree that asserting any ideas a lot less than two months in advance of payments resume counts as “sufficient.”
Rep. Ilhan Omar of Minnesota led 55 of her Democratic colleagues very last month in sending a letter to Cardona requesting details on his department’s preparedness to implement broad university student-personal loan forgiveness “swiftly and proficiently,” but Omar’s business office informed Insider she had yet to obtain a reaction.
Foxx despatched a related letter previous thirty day period to Cardona, expressing: “You mentioned you are completely ready to act on university student-mortgage forgiveness, but you can only be all set if you know the strategy hence, be sure to explain, what is this plan?”
Her place of work instructed Insider she experienced not gained a reaction, either.
Rep. Alexandria Ocasio-Cortez of New York earlier criticized the absence of discover the division experienced specified pupil-financial loan borrowers, expressing it inhibited quite a few people from setting up monetarily.
“I feel some people read these extensions as savvy politics, but I will not believe those people folks realize the stress and condition it results in folks to get so near to these deadlines just to increase the uncertainty,” Ocasio-Cortez tweeted in April. “It does not have the outcome individuals believe it does.”
Broad aid is just not the only issue on the department’s plate
Though the most pressing issues for college student-bank loan debtors proper now could possibly be broad university student-mortgage forgiveness and a payment-pause extension, the Education and learning Division has a ton much more it’s focusing on that could significantly affect quite a few borrowers.
For instance, the office declared reforms to the Community Company Bank loan Forgiveness Plan very last month, which forgives university student debt for governing administration and nonprofit workers right after 10 many years of qualifying payments. Integrated in all those reforms was a waiver working as a result of Oct 31 that enables any prior payments, which include people considered ineligible, to count toward forgiveness development.
But a recent analysis from the advocacy team College student Borrower Defense Center identified that even though 9 million public servants were qualified for scholar-bank loan forgiveness, only 2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of them experienced gotten their debt wiped out due to the fact November 2020 — and much less than 15{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} experienced submitted paperwork to observe their PSLF progress.
Richard Cordray, the Federal Pupil Assist head, reported during a convention final thirty day period that he is “pushing tricky to get acceptance if we can get it extended,” referring to the waiver, but that borrowers should really program for the waiver to expire in October.
Moreover, the division just launched its record of regulatory proposals to reform the student-loan marketplace. Individuals proposals involved reforms to bank loan-forgiveness courses like PSLF and types for defrauded debtors, as very well as actions avoiding curiosity capitalization. The department hopes to finalize all those rules by November, with implementation up coming calendar year.
On top of all these reforms, the division is overseeing the transfer of thousands and thousands of borrowers’ accounts to new pupil-loan servicers right after 3 corporations declared they would be ending their federal contracts. It can be very clear the division has a large amount on its plate — and while Republicans want Biden to conclude the relief and return to pre-pandemic functions, advocates of reduction want to be certain debtors are not thrown back into repayment much too before long.
A person hundred eighty university student-personal loan advocacy groups recently wrote a letter to Biden, indicating: “We strongly urge your administration not to threaten the fiscal security of people today with scholar credit card debt as a tactic to combat inflation.”
They extra: “Individuals with university student personal debt can’t be necessary to make payments toward loans your administration has promised to cancel.”
Pupil financial loan borrowers will be anticipated to resume payments in May possibly immediately after two a long time of federal forbearance. This is what to know. (iStock)
Federal pupil financial loan payments will resume in Could for the initial time considering the fact that the COVID-19 pandemic commenced in March 2020. This presents borrowers just two months to begin getting ready their funds after two years of federal forbearance.
Democrats have warned President Joe Biden that resuming payments devoid of college student loan cancelation would be “disastrous” in advance of the 2022 midterm elections. And though polling details suggests that most People in america want the scholar personal loan payment pause prolonged through the close of the calendar year, the Biden administration has not announced designs to lengthen forbearance once more.
Keep looking through to discover how to put together for federal college student loan compensation, which includes money-pushed reimbursement, more federal deferment and student loan refinancing. You can look at pupil mortgage refinancing fees on Credible for free of charge with no impacting your credit rating rating.
Pupil Mortgage PAYMENT PAUSE HAS Value THE Government $100B
How to put together for the conclude of pupil bank loan forbearance
Federal borrowers will be expected to resume generating payments on their scholar financial loan financial debt in just two brief months. Missed payments may perhaps be documented to the important credit bureaus, which can ding your credit history rating. Prolonged intervals of delinquency make you ineligible for federal rewards like deferment or forbearance, and could sooner or later final result in wage garnishment.
If you might be not completely ready to resume federal college student mortgage payments, here is how you can get started preparing now:
Re-enroll in automated payments. Debtors whose pupil credit card debt was transferred to a new loan servicer will require to re-enroll in vehicle-spend to stay clear of missing a payment in May perhaps.
Established up an revenue-pushed reimbursement program (IDR). Federal university student personal loan debtors may be in a position to restrict their monthly payments to 10-20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of their disposable cash flow as a result of an IDR approach.
Implement for further federal deferment. Economic hardship and unemployment deferment give suitable debtors an additional 36 months of federal forbearance, for the duration of which curiosity accrues.
Refinance your student financial loans at a lower level. Student loan refinancing may possibly aid you lower your month to month payments by a lot more than $250, according to a modern Credible evaluation.
It truly is vital to observe that refinancing your federal pupil credit card debt into a non-public pupil bank loan will make you ineligible for pick protections, these types of as IDR designs, administrative forbearance and federal student mortgage forgiveness applications. You can discover much more about pupil financial loan refinancing on Credible to ascertain if this credit card debt reimbursement method is proper for your economic situation.
POLL: Americans Doubtful THAT PRESIDENT BIDEN WILL Cancel Pupil Loans IN 2022
Non-public loan companies may possibly supply far more aggressive student personal loan rates
Among all current pupil mortgage borrowers, the common interest rate is 5.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, according to the Schooling Data Initiative. The interest rate you pay relies upon on the variety of scholar loans you have, this kind of as Immediate Application Financial loans or Mother or father Moreover Financial loans. These are the ordinary federal interest fees by financial loan variety amongst 2006 and 2022, for every Credible facts:
Immediate Plus Loans: 7.20{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}
In comparison, properly-competent borrowers who refinanced their scholar financial loans on Credible during the 7 days of Feb. 14 noticed regular prices of 3.75{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 10-calendar year fixed-rate financial loans and 3.10{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for 5-yr variable-level loans.
When federal student personal loan charges are based on when you originated the mortgage, personal college student loan rates are likely to range by credit rating rating and debt-to-money ratio (DTI). Borrowers with truthful or bad credit might take into consideration enlisting the enable of a creditworthy cosigner to increase their prospects of getting a very low level.
Scholar financial loan refinancing has the potential to save debtors countless numbers of dollars over time, but it could not be the ideal shift for absolutely everyone. If you strategy on applying for college student personal loan forgiveness plans like Public Provider Financial loan Forgiveness (PSLF), then refinancing to a private college student loan would make you ineligible.
Debtors who will not system on utilizing federal pupil loan gains may well take into consideration university student personal loan refinancing although rates are minimal. Refinancing your student bank loan debt at a lower curiosity price may support you cut down your month-to-month payments, pay back off credit card debt decades more rapidly and help save revenue more than the everyday living of the loan.
As an extra benefit, non-public student loan creditors are prohibited from charging refinancing service fees. The desire fee you fork out signifies the overall charge of borrowing the bank loan. A college student loan refinance calculator can support you determine if this economical tactic is proper for you.
You can search latest university student personal loan refinancing fees throughout several on line loan companies in the table down below. Then, you can check out Credible to see your approximated rate with a smooth credit score check out, which will never hurt your credit score score.
BIDEN ADMINISTRATION CANCELS One more $415M IN University student Mortgage Financial debt: DO YOU QUALIFY?
Have a finance-similar issue, but you should not know who to inquire? E mail The Credible Dollars Skilled at moneyexpert@credible.com and your problem may well be answered by Credible in our Revenue Specialist column.
BEIJING, Dec. 3, 2021 /PRNewswire/ — China Liberal Education Holdings Limited (Nasdaq: CLEU) (“China Liberal”, or the “Company”, or “we”), a China-based company that provides smart campus solutions and other educational services, today announced its financial results for the first six months of fiscal year 2021.
Ms. Ngai Ngai Lam, Chairwoman and CEO of China Liberal, commented, “We still delivered respectable results in the first half of the fiscal year 2021, although the ongoing uncertainties associated with the COVID-19 pandemic caused many Chinese universities and colleges to hold off on their ‘smart campus’ project plans. Through our efforts and dedication, we achieved highly resilient financial results while prioritizing our customers during the pandemic. For the first half of fiscal year 2021, our revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million from $2.27 million for the same period last year. However, our gross profit reached $1.37 million, an increase of 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from $0.79 million for the same period of last year, and our gross margin was 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, a year-over-year increase of 39.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} from 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period of last year. We are also excited about our business progress of integration of enterprises and vocational education business(tailored job readiness training services). To address the actual needs of regional economic development and industrial upgrading and transformation, we provided colleges and universities with school-enterprise integrated education solutions. We strived to establish a talent training system and a comprehensive platform, providing talent trainings and co-op opportunities for students. In addition, our self-developed and patented all-in-one teaching machine, AI-Space machine, has been recognized by the market and the industry and installed in several colleges and universities across China, including Beijing Foreign Studies University, Beijing Language and Culture University, and Straits Institute of Minjiang University, laying a solid foundation for our future potential revenue growth. We believe that we are well-positioned for the future with our brand awareness, innovative technologies, and loyal customer base.”
First Six Months of Fiscal Year 2021 Financial Highlights
Revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million for the six months ended June 30, 2021 from $2.27 million for the same period last year.
Gross profit increased by 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} to $1.37 million for the six months ended June 30, 2021 from $0.79 million for the same period last year.
Gross margins were 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} and 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2021 and 2020, respectively.
Income from operations was $0.30 million for the six months ended June 30, 2021, compared to loss from operations of $0.11 million for the same period last year. Operating profit margin was 16.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2021, compared to operating loss margin of 5.0{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period last year.
Net income was $0.23 million for the six months ended June 30, 2021, compared to net loss of $0.08 million for the same period last year.
Basic and diluted earnings per share were $0.03 for the six months ended June 30, 2021, compared to basic and diluted loss per share of $0.02 for the same period last year.
First Six Months of Fiscal Year 2021 Financial Results
Revenue
Revenue decreased by 18.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} year-over-year to $1.85 million for the six months ended June 30, 2021 from $2.27 million for the same period last year. The decrease in revenue was mainly driven by decreased revenue from technological consulting services for smart campus solutions as the Company did not enter into new large “smart campus” project contract with Chinese universities/ colleges during the six months ended June 30, 2021 since continued uncertainties associated with the COVID-19 pandemic caused many Chinese universities/colleges to hold off on their “smart campus” project plans.
For the six months ended June 30, 2021, revenue from sino-foreign jointly managed academic programs increased by $0.16 million, or 12.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $1.42 million, from $1.26 million for the same period last year. This increase was primarily attributed to an increase in the number of students by 173 or 6.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 2,841 students in six months ended June 30, 2021, from 2,668 students in six months ended June 30, 2020. Furthermore, the increase is also attributable to an approximately 9.03{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} positive impact from foreign currency fluctuation when the average exchange rate used in converting RMB into USD increased from $1 to RMB 7.0416 in the six months ended June 30, 2020 to $1 to RMB 6.4587 in the six months ended June 30, 2021. The increase is partially offset by a 3.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} decrease in average tuition fees. The decrease in average tuition fee was mainly caused by change in student mix enrolled in different academic programs with the universities/ colleges.
Revenue from technological consulting services for smart campus solutions decreased by $0.59 million, or 63.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.34 million for the six months ended June 30, 2021, from $0.93 million for the same period last year. The decrease was primarily because the Company did not obtain smart campus projects of large size during the six months ended June 30, 2021. In addition, the continued uncertainties associated with COVID-19 caused many Chinese universities/colleges to hold their “smart campus” project plans.
Revenue from overseas study consulting services decreased by $0.04 million, or 64.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.03 million for the six months ended June 30, 2021, from $0.07 million for the same period last year. The decrease was mainly due to the impact of the COVID-19 pandemic which caused certain countries closed its borders and imposed travel restrictions. As a result, the number of students interested in seeking overseas education reduced significantly. A portion of our revenue from overseas study consulting services was recognized when the students received offers and obtained appropriate visas. For the six months ended June 30, 2021, none of the students who participated in overseas consulting services received offers or visas as they have not yet completed their trainings and studies compared to 11 students who received school offers and obtained visas in the same period in 2020.
Revenue from tailored job readiness training services was $0.07 million for the six months ended June 30, 2021, compared with nil for the same period last year. The Company provided tailored job readiness training services to more than 130 students for the six months ended June 30, 2021.
Cost of Revenue
Cost of revenue decreased by $1.00 million, or 67.8{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $0.48 million for the six months ended June 30, 2021, from $1.48 million for the same period last year, primarily due to the decreased hardware costs of $1.02 million associated with the smart campus projects.
Gross Profit
Gross profit increased by $0.58 million, or 74.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $1.37 million for the six months ended June 30, 2021, from $0.79 million for the same period last year, while gross profit margin increased by 39.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to 74.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the six months ended June 30, 2020, from 34.7{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} for the same period last year. The increase in gross profit and gross margin was primarily due to decreased hardware costs associated with the Company’s technological consulting service projects.
Operating Expenses
Selling expenses decreased by $53,872, or 41.3{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $76,593 for the six months ended June 30, 2021, from $130,465 for the same period last year. The decrease in selling expenses was primarily attributable to the decrease in the rental and office expenses and depreciation expenses by $54,679 when the Company relocated to a smaller office space.
General and administrative expenses increased by $224,833, or 29.2{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $995,451 for the six months ended June 30, 2021, from $770,618 for the same period last year, primarily due to an increase in salaries and welfares expenses of $74,630 resulting from increased number of administrative employees, an increase in professional services fees of $57,300, an increase in share-based compensation to independent directors of $53,250 and an increase in independent director compensation of $28,419.
Interest Income
Interest income decreased by $22,797 or 27.5{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550}, to $59,973 for the six months ended June 30, 2021, from $82,770 for the same period last year. In connection with the Company’s technological consulting services for smart campus projects, the Company recognized financing component resulted from a timing difference between when control is transferred and when the Company collected cash consideration from the customer. For the six months ended June 30, 2021 and 2020, the Company recognized $56,511 and $79,907 interest income in connection with the aforementioned financing component, respectively.
Other Expense
Other expense was $7,249 and $907 for the six months ended June 30, 2021 and 2020, respectively, the increase was due to increased bank charges.
Income Tax Provision
Income tax provision was $0.12 million for the six months ended June 30, 2021, increased from $0.05 million for the same period of last year due to higher taxable income.
Net Income (Loss)
Net income was $0.23 million for the six months ended June 30, 2021, compared to a net loss of $0.08 million for the same period last year. Basic and diluted earnings per share were $0.03 for the six months ended June 30, 2021, compared to basic and diluted loss per share of $0.02 for the same period last year.
Financial Condition
During the six months ended June 30, 2021, the Company had negative cash flow from operations. As of June 30, 2021, the Company had cash of approximately $33.7 million and had positive working capital of approximately $40.8 million. The Company’s liquidity is influenced by the level of its operations, the numerical volume and dollar value of its sales contracts, the progress of execution on its customer contracts, and the timing of accounts receivable collections. Management believes that the Company’s current cash as of June 30, 2021 will be sufficient to meet its working capital needs for at least the next 12 months from the date of the Company’s interim financial statements are issued.
As of June 30, 2021, the Company had cash of $33.70 million, compared to $5.01 million as of December 31, 2020.
Net cash used in operating activities was $1.89 million for the six months ended June 30, 2021, compared to $0.94 million for the same period last year.
Net cash provided by investing activities was $1.45 million for the six months ended June 30, 2021, compared net cash used in investing activities of $0.01 million for the same period last year.
Net cash provided by financing activities was $29.06 million for the six months ended June 30, 2021, compared to $5.50 million for the same period last year.
The Company intends to finance its future working capital requirements and capital expenditures from cash generated from operating activities. However, the Company may seek additional financings, to the extent required, and there can be no assurances that such financing will be available on favorable terms or at all.
COVID-19
The Company’s operations may be further affected by the ongoing COVID-19 pandemic. For the six months ended June 30, 2021, the Company’s revenue from sino-foreign jointly managed academic programs was not significantly impacted because Chinese universities/colleges have resumed on-site instruction since May 2020 and the number of students enrolled in the Company’s sino-foreign jointly managed education programs with two colleges increased during the 2021 academic school year. The total enrolled number of students increased by 14{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} as compared to the same period of last year. The teaching services that the Company has been providing to students have returned to normal, and no dropout has been reported to the Company during the six months ended June 30, 2021. However, due the impact of COVID-19, the internal payment processes of the partnering schools were temporarily delayed. As a result, the Company and these partnering schools mutually agreed to extend the tuition payment term by three to six months. The Company does not believe such delay will result in any collectability risk and the entire tuition receivable balance is expected to be fully received but only slightly later than a typical operating year. Furthermore, this temporary delay in tuition payment does not represent a change in the Company’s cooperation model with these partnering schools and the Company does not expect to incur further tuition payment delays in the future.
The continued uncertainties associated with the COVID-19 have caused many Chinese universities/ colleges to temporarily hold off on their “smart campus” project construction plans and accordingly the Company did not obtain new large “smart campus” project contract during the six months ended June 30, 2021, which led to a decrease in the Company’s revenue from technological consulting and supporting services during current period. Additionally, the COVID-19 pandemic continues to have a negative impact over the Company’s study abroad consulting services. A portion of the Company’s revenue from overseas study consulting services were recognized when students received offers and obtained appropriate visas. However, due to the COVID-19 pandemic, certain countries closed their borders and imposed travel restrictions. For the six months ended June 30, 2021, none of the students receiving overseas consulting services received offers or visas, compared to 11 students who received school offers and obtained visas in the same period in 2020. Due to the uncertainties around international travels, it is expected that the COVID-19 pandemic may continue to result in students being restricted from pursuing their overseas education in the near terms and may have further negative impact over the oversea study consulting service revenue stream.
About China Liberal Education Holdings Limited
China Liberal, headquartered in Beijing, is an educational services provider in China. It provides a wide range of services, including those under sino-foreign jointly managed academic programs; overseas study consulting services; technological consulting services for Chinese universities to improve their campus information and data management system and to optimize their teaching, operating and management environment, creating a “smart campus”; and tailored job readiness training to graduating students. For more information, please visit the company’s website at ir.chinaliberal.com.
Forward-Looking Statements
This document contains forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s expectations and projections about future events, which the Company derives from the information currently available to the Company. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review risk factors that may affect its future results in the Company’s registration statement and in its other filings with the U.S. Securities and Exchange Commission.
Investor Relations Contact
China Liberal Education Holdings Limited Email:ir@chinaliberal.com
NEW DELHI: India’s products and services sector exercise ongoing to grow in September, supported by favourable underlying desire amid the easing of Covid-19 limits, but shed some momentum from August’s 18-thirty day period significant level, a month-to-month study reported on Tuesday. The seasonally altered India Providers Enterprise Exercise Index fell from 56.7 in August to 55.2 in September, but remained well previously mentioned its lengthy-operate typical. “In spite of easing from August, the amount of expansion was marked and the 2nd-swiftest since February 2020,” the study stated. Buoyed by symptoms of advancements in underlying demand, Indian service companies took on additional personnel throughout September. The boost in employment ended a 9 month sequence of job shedding, but was marginal over-all as some panellists indicated possessing ample workforces to offer with their workloads. For the 2nd straight thirty day period, the solutions sector witnessed an growth in output. In Getting Managers’ Index (PMI) parlance, a print over 50 means enlargement, though a score under 50 denotes contraction. “Indian organizations ongoing to benefit from a restoration in demand from customers as the pandemic receded additional and restrictions ended up lifted. The improved current market environment intended that firms managed to protected new operate and maximize business action for the duration of September,” said Pollyanna De Lima, Economics associate director at IHS Markit. On the other hand, even with the sustained recovery of the sector, business enterprise self-assurance weakened in September. “Whilst forecasts of greater need in the year in advance supported organization self confidence regarding output, progress seems to be set to be constrained by increasing inflation anticipations. We noticed a significant decline in optimistic sentiment amongst support providers thanks to this variable, irrespective of enter value inflation retreating in September,” Lima said. What’s more, vacation restrictions ongoing to weigh on intercontinental need for Indian providers. New export organization contracted for the nineteenth month in a row, the survey reported. Business enterprise Exercise in India’s private sector rose further in September, as each manufacturing and companies output ongoing to expand. The Composite PMI Output Index — which steps mixed providers and production output — was at 55.3 in September, very little-adjusted from 55.4 in August. On the selling prices front, amid studies of increased fuel, materials, retail and transportation selling prices, typical cost burdens faced by Indian assistance suppliers rose further throughout September. The general level of inflation was “solid”, but softened to an 8-thirty day period very low. Economists consider the Reserve Lender of India is predicted to proceed with the accommodative plan stance in its October 6-8 monetary coverage discussions. On the macro-economic front, subdued charges of foodstuff objects like vegetables pulled down retail inflation for the third month in a row to 5.3 for every cent in August, within just the RBI’s convenience zone. Retail inflation, which rose sharply to 6.3 for each cent in May well from 4.23 for every cent in April, has been on a downward trajectory due to the fact then. It was 6.26 for every cent in June and 5.59 for every cent in July this year.
