With the rapidly expanding Chinese economy, there are an increasing number of entrepreneurs and business executives who are looking to enhance their skills outside of a traditional education program. CECX aims to improve a client's business performance by improving the management, leadership, and marketing skills of its employees. The Company provides mostly human capital, which generates very large margins and collects an upfront fee for its services in cash. Based only on expected industry and GDP growth rates, CECX is undervalued based on our valuation model. We believe that the Company has a great opportunity to leverage its brand to exceed those expected growth rates.
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Value Proposition

CECX is experiencing explosive growth, training mid to high-level Chinese executives in paid-for courses lasting 2-3 years. CECX also organizes and hosts 1-2 day seminars featuring well-known motivational speakers that generate up to $2M per seminar. With GDP growth above 9%, China is generating millions of new mid- to high-level executives each year. We expect 30% top- and bottom-line growth for this company over the next 3-5 years.

CECX currently trades at an 11.9x P/E in a sector that trades at 25x—50x EPS. At 32x EPS, CECX trades at $6.00, an upside of 76% for investors. The Company will apply for NASDAQ listing in the near future, which should give it greater visibility and provide a boost for the stock.

China Executive Education Corp., operating through MYL Business, is a fastgrowing executive education company in China that offers comprehensive professional training programs in Hangzhou and Shanghai. Through openenrollment training programs, including proprietary training courses and featured lectures, the company provides Chinese business executives with a variety of business training services. Topics include sales, marketing, leadership development and highly effective personal skill development focused on decision-making skills, negotiation skills, public speaking skills and people skills.

The training courses include a 7-course package for CEOs, as well as 22 other business development courses. Since formally launching in April 2009, the company has provided its training programs to 2,874 Chinese business owners and executives from a broad range of industries.

• China’s executive training industry is in its infancy, with just 10 years of history. The market for management training was estimated at RMB 2 billion ($294 million) in 2002 and is expected to reach RMB 30 billion ($4.4 billion) by 2012, representing a 31.1% CAGR.
• The company, which began operations in April 2009, has had a promising start and generated positive net income of $4.0 million in its first eleven months of operations.
• Management is projecting 30% top and bottom line annual growth over the next 5 years.
• Elite customer base consisting of corporate executives and private business owners from different business sectors throughout eastern China.

• Revenue for the six months ended June 30, 2010 was $9.04 million
• Net Income for the six months ended June 30, 2010 was $2.69 million
• EPS for the six months ended June 30, 2010 was $0.12