SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-KSB  S Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended December 31, 2006  £ Transition Report under Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ___________ to __________ Commission file number: 000-50240  CHINA IVY SCHOOL INC. (Name of small business issuer in its charter)  Nevada98-0338263(State or other jurisdiction of(I.R.S. Employer Identification No.)incorporation or organization)  Anlian Building, Suite #A 1501 Futian District, Shenzhen, China (Address of principal executive offices)  Issuer's telephone number, including area code: (852) 2511-1665  Securities registered under Section 12(b) of the Exchange Act:  None  Securities registered under Section 12(g) of the Exchange Act:  Common Stock par value $.001 per share  Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  S   No  £ Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B contained in this form, and no disclosure will be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this form 10-KSB.   S Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes   £  No   S The issuer's revenues for its most recent fiscal year were $5,564,409. As of March 26, 2007, the aggregate market value of the issuers common equity held by non-affiliates was $23,923,800, based on the closing price of $0.90 per share for its common stock on the OTC Bulletin Board on March 26, 2007.  As of March 26, 2007, 61,500,000 shares of the issuers common stock were outstanding. DOCUMENTS INCORPORATED BY REFERENCE None Transitional Small Business Disclosure Format (check one): Yes   £  No   S    PART I Cautionary Notice Regarding Forward Looking Statements  China Ivy School Inc. (referred to herein as we or the Company) desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  This report contains a number of forward-looking statements that reflect managements current views and expectations with respect to our business, strategies, future results and events and financial performance.  All statements made in this annual report other than statements of historical fact, including statements that address operating performance, events or developments that management expects or anticipates will or may occur in the future, including statements related to future reserves, cash flows, revenues, profitability, adequacy of funds from operations, statements expressing general optimism about future operating results and non-historical information, are forward-looking statements.  In particular, the words believe, expect, intend, anticipate, estimate, may, will, variations of such words and similar expressions identify forward-looking statements, but are not the exclusive means of identifying such statements and their absence does not mean that the statement is not forward-looking.  These forward-looking statements are subject to certain risks and uncertainties, including those discussed below.  Our actual results, performance or achievements could differ materially from historical results as well as those expressed in, anticipated or implied by these forward-looking statements.  We do not undertake any obligation to revise these forward-looking statements to reflect any future events or circumstances. Readers should not place undue reliance on these forward-looking statements, which are based on managements current expectations and projections about future events, are not guarantees of future performance, are subject to risks, uncertainties and assumptions (including those described below) and apply only as of the date of this report.  Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements.  Factors that could cause or contribute to such differences include, but are not limited to, those discussed in --Risk Factors below as well as those discussed elsewhere in this report, and the risks discussed in our press releases and other communications to shareholders issued by us from time to time, which attempt to advise interested parties of the risks and factors that may affect our business.  We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Item 1. Description of Business. History and Organization  The Company was incorporated on September 14, 1999, in and under the laws of the state of Nevada.  At the time of our incorporation we were engaged in the business of developing an internet computer software program known as Clear Switch; a program that processes submission of internet web page information to major internet search engines.  Although we attempted to develop this software program, we suspended these efforts due to our insufficient cash flow and inability to obtain financing to conduct further development of this software program.  On August 22, 2003, a share exchange agreement between the Company and the shareholders of Safe Cell Tab, Inc. ("SCT"), was executed whereby the Company acquired 100% of the shares of SCT, making SCT a wholly owned subsidiary.  On March 31, 2004, an amendment to the share exchange agreement was entered into by the parties.   2   The share exchange agreement with SCT was undertaken as a means of complementing, augmenting and extending the early stage activities and business plans of the Company. As a result, the Company focused its resources on further development of SCTs business initiatives, resulting in SCT becoming the sole operating entity of the Company. The company anticipated that revenues resulting from sales of the SCTs product offerings and other complimentary SCT initiatives would provide additional gross revenues to the consolidated balance sheet and benefit of the Company. Complimentary SCT business initiative undertaken by the Company and SCT included the acquisition of, a master distributor Wi-Fi License and an inventory of the Mobius disposable cell phone, together with certain sales, distribution, and marketing rights.  On August 25, 2006, Xu Zuqiang (Zuqiang), the Companys former officer and director, and the Company consummated an Amendment to Stock Purchase Agreement (the Amendment) whereby the parties modified certain provisions of the Stock Purchase Agreement between them dated as of June 1, 2006 (as so amended, the Purchase Agreement).  Specifically, instead of the one million (1,000,000) (on a post-reverse stock split adjusted basis (see below)) shares of the Common Stock of the Company which Zuqiang purported to acquire pursuant to the original Purchase Agreement, Zuqiang acquired seven hundred fifty thousand (750,000) (on a post-reverse stock split adjusted basis (see below)) shares of Common Stock of the Company and two hundred fifty thousand (250,000) (on a post-reverse stock split adjusted basis (see below)) shares of the preferred stock, par value $.001 per share (the Preferred Stock), of the Company for an aggregate purchase price of $550,000 (the Stock Transaction).  After giving effect to the Stock Transaction, Zuqiang held, on a post-reverse stock split adjusted basis (see below), in addition to two hundred fifty thousand (250,000) shares of the Companys Preferred Stock, seven hundred fifty thousand (750,000) of the one million (1,000,000) shares of our Common Stock ,then issued and outstanding, constituting, in the aggregate, 75% of the issued and outstanding shares of Common Stock of the Company (80% after giving effect to the conversion of the Preferred Stock into Common Stock) effecting a change in the controlling interest of the Company.  The Stock Transaction effected a change in control of the Company.  Prior to the closing of the Stock Transaction, Mr. Gus Rahim had been Chief Executive Officer, Chief Financial Officer, Secretary and a director of the Company, and William Russell had been a director of the Company.  Effective upon the closing of the Stock Transaction and the filing and distribution of such documents as required under the Securities Exchange Act of 1934, as amended, and the expiration of all applicable grace periods, Zuqiang was appointed to, and Messrs. Russell and Rahim resigned from, the Board of Directors of the Company.  In addition, Zuqiang was elected to serve as Chief Executive Officer and Secretary of the Company.  On September 5, 2006, the Companys Board of Directors and the then holder of a majority of the Companys then outstanding Common Stock approved the implementation of a one-for-one-hundred (1-for-100) reverse stock split (the Reverse Stock Split) of the outstanding shares of the Companys Common Stock.  The Reverse Stock Split became effective on October 11, 2006, whereby each 100 shares of the Company's issued and outstanding Common Stock was automatically combined into and became one share of Common Stock, thereby reducing the 125,000,000 of shares of Common Stock which were outstanding on a fully diluted basis immediately prior to the effectiveness of the Reverse Stock Split (which consisted of (i) 100,000,000 shares of Common Stock and (ii) 25,000,000 shares of Common Stock automatically issuable upon effectiveness of the Reverse Stock Split in respect of the 25,000,000 shares of Preferred Stock then outstanding) to approximately 1,250,000 shares of Common Stock.  Upon the effectiveness of the Reverse Stock Split, all issued and outstanding shares of Preferred Stock of the Company automatically converted on a one-for-one basis into shares of Common Stock of the Company.  Pursuant to the Companys Certificate of Designation, if the Company effected a reverse stock split, the number of shares of Common Stock issuable upon conversion of the Preferred Stock immediately prior to such reverse stock split are to be proportionately decreased.  Therefore, the issued and outstanding shares of Preferred Stock converted into 250,000 shares of Common Stock.   3   On October 12, 2006 (the Effective Date), the Company entered into and consummated a Share Exchange Agreement with Brighter International Limited (BIL), Blue Tassel School (BTS), and the shareholders of BIL (the BIL Shareholders), pursuant to which the Company acquired BIL in exchange for issuance of 55,250,000 shares of Common Stock of the Company to the BIL Shareholders (the Share Exchange Transaction), which was divided proportionally among the BIL Shareholders in accordance with their respective ownership interests in BIL immediately before the completion of the Share Exchange Transaction.  As a result of the Share Exchange Transaction, a change of control of the Company occurred as of the Effective Date.  Prior to the Effective Date, the controlling shareholder of Company was Zuqiang, who held approximately 80% of the then issued and outstanding shares of Common Stock of the Company.  As of the Effective Date, the BIL Shareholders became the controlling shareholders of the Company, owning in the aggregate 98% of the issued and outstanding shares of Common Stock of the Company as of the Effective Date.  Yongqi Zhu (Zhu), the Companys present Chairman and Chief Executive Officer acquired 34,918,000 shares of the Common Stock of the Company.  After giving effect to the Share Exchange Transaction, Zhu held 56.7% of the then-issued and outstanding shares of the Common Stock of the Company.  Prior to the closing of the Share Exchange Transaction, Zuqiang had been Chief Executive Officer, Chief Financial Officer, and sole director of the Company.  Effective upon the filing and distribution of such documents as required under the Securities Exchange Act of 1934, as amended, and the expiration of all applicable grace periods, which occurred on November 12, 2006, Zhu (who prior to the Share Exchange Transaction was a shareholder of BIL), Qian Gao, Yipeng Lu, Fugeng Xia and Haiming Zhang were appointed, and Zuqiang resigned from, the Board of Directors of the Company.  Effective upon the close of business of October 27, 2006, Zuqiang resigned from his positions as Chief Executive Officer and Chief Financial Officer of the Company.  As Sole Director of the Company, Zuqiang elected Zhu to serve as Chairman and Chief Executive Officer, Qian Gao to serve as Secretary and Jian Xue to serve as Chief Financial Officer, such appointments became effective upon the close of business of October 27, 2006.  Our Business  BLUE TASSEL SCHOOL  BTS is an education center located in Suzhou and organized under the laws of China. BTS is accredited by the Jiangsu Educational committee as a boarding school comprising grades from kindergarten through senior school, including an international school. The five schools that comprise BTS are kindergarten, primary school, junior high school, senior high school, and international school.  The BTS International School has 15 foreign teachers with international teacher certification, that are primarily responsible for the teaching of English. BTS has built a cooperative relationship with other schools located in the United Kingdom, Australia, New Zealand and Hong Kong.  The BTS International School has established preparatory classes with the BATH ACADEMY located in the United Kingdom, as the BLUE TASSEL-BATH ACADEMY. BTS has also established a program for exchange students, providing long- and short-term study abroad program, exchange of teachers, sharing of resources, and collaboration of courses.  The BTS Kindergarten has 3 classes for children aged 2-6 years, and has developed appropriate learning programs for such students which include art, music and musical instrument, performance, dance, skating, and computer programs.  In order to develop the potential abilities of its students, BTS provides diverse options for its students.   4   The BTS Primary School provides elementary education for children aged 6  12 years and has 14 classes and 47 teachers in the six-year school.  The BTS Junior High School is a three-year middle school for children aged 12  15 years with 16 classes and 40 teachers.  The BTS Senior High School is a three-year high school for children aged 15  18 years with 24 classes and over 1,200 students.  The curriculum and program are designed for preparing students to enter top tier universities.  BTSs education program includes compulsory level education, ample elective courses, activity courses, students societies, clubs, and seminars presented by famous scholars and successful individuals.  Large-scale social practices and educational activities compose a highly selective and personal curriculum, where children can fully develop their personalities and discover their potentials.  The comprehensive education system of BTS includes science, art, multi-language, information technology, international understanding, ethics and behavior, adolescence, and ideal seminars.  Interaction between students and instructors, an efficient learning environment, and small class teaching are the core ideas for attentive learning and effective study.  BTS possesses facilities for teaching, learning, living, extracurricular activities and health care purposes.  Such facilities are at the vanguard of educational platform, including a Chinese-English library, e-reading room, computer lab, multi-functional network system, varieties of labs for group study and experimental use, halls for music rehearsal and scholarly presentations.  Other than academic facilities, BTS also has tennis courts, gyms, and other athletic facilities, as well as student apartments.  There are currently 1910 students enrolled at BTS.  SAFE CELL TAB, INC.  The Safe Cell Tab is a small, thin, oval shaped device designed specifically to help protect the users of cell phones, cordless phones, laptops, microwaves and other hand-held devices such as palm pilots, from the potentially harmful and damaging effects of electromagnetic radiation (electromagnetic frequencies or "EMF") which is emitted from electrical devices.  The Safe Cell Tab is designed to adhere to the back of a cell phone or other electronic device, where its conductive fibrous material, called 'Shieldron', absorbs certain of these EMF waves. The manufacturer of the Safe Cell Tab states that the product is designed to reduce the biological effects of long term exposure to EMF.  The Safe Cell Tab is the creation of, and is manufactured by, a South Korean manufacturing company named Milae Electronics, who holds Korean Patent #094419. The branded product line Safe Cell, is distributed under a world-wide exclusive distribution and supply agreement by Safe Cell Tab, Inc. The Safe Cell Tab is made from superconductive polyester fibers. This superconductive material blocks certain EMF waves.  The superconductive polyester fibers were originally developed by NASA (National Aeronautics and Space Administration Agency) to address the hazards associated with radiation from electromagnetic waves in outer space.  EM Solutions has taken this technology and developed Shieldron.  Today, the Shieldron technology is mass produced and the manufacturer, EM Solutions, Inc., carries the Korean NT mark (new technology small and medium business administration), KT mark (ministry of science and technology), and UL mark (standards, tests, and authentication of electrical and electronics industry) of quality assurance and quality control. This technology is used in a wide range of industries to help protect and prevent malfunctioning of electronic devices and reduce the damaging effects of EMF radiation on such devices, as well as protect human beings from EMF radiation.   5   In September 2003, SCT acquired the sales, marketing and distribution rights to a new completely 'mobile' Wi-Fi [802.11b] (Wireless Fidelity) distributed wide area network ["DWAN"] system, which utilizes the proven hardware and software commercially viable capabilities of a Wi-Fi system called 'Brilan'. Softhill Technologies, Ltd. developed the Brilan products and partially branded them for SCT. Brilan technology provides connectivity and supporting transmission of data, and analog and digital voice transmission.  Brilan enables digital and analog phones to be accessed in hard to reach places. SCT's latest 802.11b Wi-Fi technology license is also consistent with the Company's mid to long term goals and mandate of establishing itself as a vertically integrated wireless communications company capable of offering a unique value-added series of products and services to its customers.  As of the fiscal year end December 31, 2006, we do not legally own, or have rights to, any patents or trademarks. However, we possess a master distributor Wi-Fi License from Milae Electronics to sell its patented Safe Cell Tab.  The markets and industries defined by SCTs various products and services are new, rapidly evolving and intensely competitive. The Company expects competition to intensify in the future. Additionally, these markets are highly fragmented, with no clear dominant leader and the barriers to entry are fairly minimal as current and new competitors can commercialize products and services at a relatively low cost and in a fairly short period of time.  The major competitors of SCT can be divided into the following two groups:  i) Competitors for the SCT's Wi-Fi products  · various manufacturers of Wi-Fi hardware and software components; · distributors of Wi-Fi products and services who mainly re-sell components to specific groups of end users interested in establishing their own Virtual Private Networks; and · network systems integrators and consultants who have the ability to influence the purchasing decisions of their various end user clients and who represent or promote only select or specific products.  ii) Competitors for the SCT's Safe Cell Tab products  · distributors and re-sellers of cell phones and accessories; · online retailers of cell phones; · independent online retailers specializing in cellular phone accessories and alternative health products; · mail-order and catalog retailers of cellular phone accessories, some of which have already developed online retail outlets; · direct sales organizations; · electronic stores specializing in communications and computer equipment; and · merchants and mass market retail chains.  The manufacturing, processing, packaging, labeling and advertising of the products that the Company sells may be subject to regulation by one or more U.S. federal agencies, including the Federal Trade Commission, and/or the Federal Communications Commission ("FCC"). These activities also may be regulated by various agencies of the states, localities and foreign countries in which consumers reside. The Federal Communications Commission, in particular, regulates the manufacture, labeling and distribution of electronic communication devices and related ancillary products, including cellular phones, computer equipment and other electromagnetic frequency emitting devices and products.   6   Certain other devices such as the Wi-Fi division's Brilan 802.11b hardware device, must be "FCC Compliant" prior to being marketed in the United States.  This requires the Company and its manufacturer to have test data on file which demonstrates that their devices are compliant with the appropriate FCC guidelines for that particular device. As of September 30, 2003, all of the Company's Wi-Fi products have been either FCC approved or are FCC compliant. The company is relying upon information in this regard which it has received from its various device manufacturers as to the validity of these claims.  The FCC may undertake enforcement actions against companies marketing either unapproved, or "adulterated" or "misbranded" products. Various remedies are available to the FCC to either deter and or prosecute suspected offender or violators and may include: criminal prosecution; an injunction to stop the sale of a company's products; seizure of products; adverse publicity; and "voluntary" recalls and labeling changes. FCC regulations require that certain informational labeling be presented in a prescribed manner on certain classes and types of communication products and that these products not be "misbranded". A product may be deemed as unapproved and "misbranded" if it bears improper claims or improper labeling.  In addition to the regulatory scrutiny of the FCC, the advertising and promotion of the Company's products are subject to scrutiny by the Federal Trade Commission. The Federal Trade Commission Act prohibits "unfair or deceptive" advertising or marketing practices, and the Federal Trade Commission has pursued numerous manufacturers and retailers of electronic communications equipment for deceptive advertising or failure to substantiate promotional claims, including, in many instances, claims made via the Internet. The Federal Trade Commission has the power to seek administrative or judicial relief prohibiting a wide variety of claims, to enjoin future advertising, to seek redress or restitution payments and to seek a consent order and seek monetary penalties for the violation of a consent order. In general, existing laws and regulations apply fully to transactions and other activity on the Internet. The Federal Trade Commission is in the process of reviewing its policies regarding the applicability of its rules and its consumer protection guides to the Internet and other electronic media. The Federal Trade Commission has already undertaken a new monitoring and enforcement initiative "Operation Cure-All," targeting allegedly bogus health claims for products and treatments offered for sale on the Internet. Many states impose their own labeling or safety requirements that differ from or add to existing federal requirements.  The Company cannot predict the nature of any future U.S. laws, regulations, interpretations or applications, nor can it determine what effect additional governmental regulations or administrative orders, when and if promulgated, would have on its business in the future. Although the regulation of electronic equipment and or devices is less restrictive than certain other devices, the Company cannot assure you that the current statutory scheme and regulations applicable to its products will remain less restrictive. Further, the Company cannot assure you that, under existing laws and regulations, or if more stringent statutes are enacted, regulations are promulgated or enforcement policies are adopted, it is or will be in compliance with these existing or new statutes, regulations or enforcement policies without incurring material expenses or adjusting its business strategy. Any laws, regulations, enforcement policies, interpretations or applications applicable to the Company's business could require the reformulation of certain products to meet new standards, the recall or discontinuance of certain products not capable of reformulation, additional record keeping, expanded documentation of the properties of certain products, expanded or different labeling or scientific substantiation. Finally, the Company is not aware of any environmental laws that are applicable to the operation of its business.   7   In general, existing laws and regulations apply to transactions and other activity on the internet; however, the precise applicability of these laws and regulations to the internet is sometimes uncertain. The vast majority of such laws were adopted prior to the advent of the internet and, as a result, do not contemplate or address the unique issues of the internet or electronic commerce. Nevertheless, numerous federal and state government agencies have already demonstrated significant activity in promoting consumer protection and enforcing other regulatory and disclosure statutes on the internet. Additionally, due to the increasing use of the internet as a medium for commerce and communication, it is possible that new laws and regulations may be enacted with respect to the internet and electronic commerce covering issues such as user privacy, freedom of expression, advertising, pricing, content and quality of products and services, taxation, intellectual property rights and information security. The adoption of such laws or regulations and the applicability of existing laws and regulations to the internet may impair the growth of internet use and result in a decline in the Company's sales.  A number of legislative proposals have been made at the federal, state and local level, and by foreign governments, that would impose additional taxes on the sale of goods and services over the internet, and certain states have taken measures to tax Internet- related activities. Although Congress recently placed a three-year moratorium on new state and local taxes on internet access or on discriminatory taxes on electronic commerce, existing state or local laws were expressly excepted from this moratorium. Further, once this moratorium is lifted, some type of federal and/or state taxes may be imposed upon internet commerce. Such legislation or other attempts at regulating commerce over the Internet may substantially impair the growth of commerce on the internet and, as a result, adversely affect the Company's opportunity to derive financial benefit from such activities.  Employees  At the current time, in addition to our officers, we have 256 employees consisting of both teaching and administrative staff.  Prior to the closing of the Stock Transaction, we had one employee, Al Rahim, who managed the operations of the Company.  Risk Factors  The reader should carefully consider each of the risks described below.  If any of the following risks develop into actual events, our business, financial condition or results of operations could be materially adversely affected and the trading price of our common stock could decline significantly. Risk Factors of the Company  There is a limited public market for our common stock.  There is currently a limited public market for the common stock. Holders of our common stock may, therefore, have difficulty selling their common stock, should they decide to do so. In addition, there can be no assurances that such markets will continue or that any shares of common stock, which may be purchased, may be sold without incurring a loss. Any such market price of the common stock may not necessarily bear any relationship to our book value, assets, past operating results, financial condition or any other established criteria of value, and may not be indicative of the market price for the common stock in the future. Further, the market price for the common stock may be volatile depending on a number of factors, including business performance, industry dynamics, and news announcements or changes in general economic conditions.   8   Our common stock may be deemed penny stock with a limited trading market.  Our common stock is currently listed for trading in the Over-The-Counter Market on the NASD Electronic Bulletin Board or in the pink sheets maintained by the National Quotation Bureau, Inc., which are generally considered to be less efficient markets than markets such as NASDAQ or other national exchanges, and which may cause difficulty in conducting trades and difficulty in obtaining future financing. Further, our securities are subject to the penny stock rules adopted pursuant to Section 15 (g) of the Securities Exchange Act of 1934, as amended (the Exchange Act). The penny stock rules apply to non-NASDAQ companies whose common stock trades at less than $5.00 per share or which have tangible net worth of less than $5,000,000 ($2,000,000 if the company has been operating for three or more years). Such rules require, among other things, that brokers who trade penny stock to persons other than established customers complete certain documentation, make suitability inquiries of investors and provide investors with certain information concerning trading in the security, including a risk disclosure document and quote information under certain circumstances. Many brokers have decided not to trade penny stock because of the requirements of the penny stock rules and, as a result, the number of broker-dealers willing to act as market makers in such securities is limited. In the event that we remain subject to the penny stock rules for any significant period, there may develop an adverse impact on the market, if any, for our securities. Because our securities are subject to the penny stock rules investors will find it more difficult to dispose of our securities. Further, for companies whose securities are traded in the Over-The-Counter Market, it is more difficult: (i) to obtain accurate quotations; (ii) to obtain coverage for significant news events because major wire services, such as the Dow Jones News Service, generally do not publish press releases about such companies, and (iii) to obtain needed capital.  New managements decision to change the business focus of the Company from the wireless communication technology industry to the education industry could ultimately prove to be unsuccessful, harming our business operations and prospects.  New management has recently changed the Company's business focus from the wireless communication technology industry to the education industry.  Accordingly, a substantial portion of our managements time will be directed toward the pursuit of identifying and acquiring business opportunities in the education industry.  There can be no assurance that new management will be able to properly manage the direction of the Company or that any ultimate change in the Company's business focus will be successful. If new management fails to properly manage and direct the Company, the Company may be forced to scale back or abandon its existing operations, which will cause the value of our shares to decline.  Our new Chief Executive Officer possesses significant control over our operations based, in part, as our controlling stockholder, and because of this he could choose a plan of action which could devalue our outstanding securities.  Our Chief Executive Officer and Chairman, Yongqi Zhu controls approximately 61% of our outstanding shares of capital stock as of the date hereof.  Accordingly, our executive officer could significantly influence the Company on matters submitted to the stockholders for approval. These matters include the election of directors, mergers, consolidations, the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control.  This amount of control gives Mr. Zhu virtually limitless ability to determine the future of our Company, and as such, he could unilaterally elect to close the business, change the business plan or make any number of other major business decisions without the approval of other stockholders.  This control may eventually make the value of our shares worthless.   9   We have not and do not anticipate paying any dividends on our common stock, because of this our securities could face devaluation in the market.  We have paid no dividends on our common stock to date and it is not anticipated that any dividends will be paid to holders of our common stock in the foreseeable future.  While our dividend policy will be based on the operating results and capital needs of the business, it is anticipated that any earnings will be retained to finance our future expansion and for the implementation of our new business plan. As an investor, you should take note of the fact that a lack of a dividend can further affect the market value of our stock, and could significantly affect the value of any investment in our Company.  We will continue to incur significant increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance requirements.  As a public company we incur significant legal, accounting and other expenses under the Sarbanes-Oxley Act of 2002, together with rules implemented by the Securities and Exchange Commission and applicable market regulators.  These rules impose various requirements on public companies, including requiring certain corporate governance practices.  Our management and other personnel will need to devote a substantial amount of time to these new compliance requirements. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly.  In addition, the Sarbanes-Oxley Act requires, among other things, that we maintain effective internal controls for financial reporting and disclosure controls and procedures. In particular, commencing in 2007, we must perform system and process evaluations and testing of our internal controls over financial reporting to allow management and our independent registered public accounting firm to report on the effectiveness of our internal controls over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. Our testing, or the subsequent testing by our independent registered public accounting firm, may reveal deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses. Compliance with Section 404 may require that we incur substantial accounting expenses and expend significant management efforts. If we are not able to comply with the requirements of Section 404 in a timely manner, or if our accountants later identify deficiencies in our internal controls over financial reporting that are deemed to be material weaknesses, the market price of our stock could decline and we could be subject to sanctions or investigations by the SEC or other applicable regulatory authorities.  Our Board of Directors has the authority, without stockholder approval, to issue preferred stock with terms that may not be beneficial to common stock holders and with the ability to adversely affect stockholder voting power and perpetuate the boards control over the Company.  Our certificate of incorporation authorizes the issuance of up to 50,000,000 shares of preferred stock, par value $ .001 per share.  The specific terms of the preferred stock have not been determined, including: designations; preferences; conversions rights; cumulative, relative; participating; and optional or other rights, including: voting rights; qualifications; limitations; or restrictions of the preferred stock.  The Board of Directors is entitled to authorize the issuance of up to 50,000,000 shares of preferred stock in one or more series with such limitations and restrictions as may be determined in its sole discretion, with no further authorization by security holders required for the issuance thereof.   10   The issuance of preferred stock could adversely affect the voting power and other rights of the holders of common stock. Preferred stock may be issued quickly with terms calculated to discourage, make more difficult, delay or prevent a change in control of our Company or make removal of management more difficult. As a result, the Board of Directors' ability to issue preferred stock may discourage the potential hostile acquirer, possibly resulting in beneficial negotiations. Negotiating with an unfriendly acquirer may result in, among other things, terms more favorable to us and our stockholders. Conversely, the issuance of preferred stock may adversely affect any market price of, and the voting and other rights of the holders of the common stock. We presently have no plans to issue any preferred stock.  Risks related to doing business in China  Our business operations take place primarily in China. Because Chinese laws, regulations and policies are continually changing, our Chinese operations will face several risks summarized below.  Limitations on Chinese economic market reforms may discourage foreign investment in Chinese businesses.  The value of investments in Chinese businesses could be adversely affected by political, economic and social uncertainties in China. The economic reforms in China in recent years are regarded by China's central government as a way to introduce economic market forces into China. Given the overriding desire of the central government leadership to maintain stability in China amid rapid social and economic changes in the country, the economic market reforms of recent years could be slowed, or even reversed.  Any change in policy by the Chinese government could adversely affect investments in Chinese businesses.  Changes in policy could result in imposition of restrictions on currency conversion, imports or the source of suppliers, as well as new laws affecting joint ventures and foreign-owned enterprises doing business in China. Although China has been pursuing economic reforms for the past two decades, events such as a change in leadership or social disruptions that may occur upon the proposed privatization of certain state-owned industries, could significantly affect the government's ability to continue with its reform.  We face economic risks in doing business in China.  As a developing nation, China's economy is more volatile than that of developed Western industrial economies. It differs significantly from that of the U.S. or a Western European country in such respects as structure, level of development, capital reinvestment, resource allocation and self-sufficiency. Only in recent years has the Chinese economy moved from what had been a command economy through the 1970s to one that during the 1990s encouraged substantial private economic activity. In 1993, the Constitution of China was amended to reinforce such economic reforms. The trends of the 1990s indicate that future policies of the Chinese government will emphasize greater utilization of market forces. For example, in 1999 the Government announced plans to amend the Chinese Constitution to recognize private property, although private business will officially remain subordinated to the state-owned companies, which are the mainstay of the Chinese economy. However, there can be no assurance that, under some circumstances, the government's pursuit of economic reforms will not be restrained or curtailed. Actions by the central government of China could have a significant adverse effect on economic conditions in the country as a whole and on the economic prospects for our Chinese operations.   11   The Chinese legal and judicial system may negatively impact foreign investors.  In 1982, the National Peoples Congress amended the Constitution of China to authorize foreign investment and guarantee the "lawful rights and interests" of foreign investors in China. However, China's system of laws is not yet comprehensive. The legal and judicial systems in China are still rudimentary, and enforcement of existing laws is inconsistent. Many judges in China lack the depth of legal training and experience that would be expected of a judge in a more developed country. Because the Chinese judiciary is relatively inexperienced in enforcing the laws that do exist, anticipation of judicial decision-making is more uncertain than would be expected in a more developed country. It may be impossible to obtain swift and equitable enforcement of laws that do exist, or to obtain enforcement of the judgment of one court by a court of another jurisdiction. China's legal system is based on written statutes; a decision by one judge does not set a legal precedent that is required to be followed by judges in other cases. In addition, the interpretation of Chinese laws may be varied to reflect domestic political changes.  The promulgation of new laws, changes to existing laws and the pre-emption of local regulations by national laws may adversely affect foreign investors. However, the trend of legislation over the last 20 years has significantly enhanced the protection of foreign investment and allowed for more control by foreign parties of their investments in Chinese enterprises. There can be no assurance that a change in leadership, social or political disruption, or unforeseen circumstances affecting China's political, economic or social life, will not affect the Chinese government's ability to continue to support and pursue these reforms. Such a shift could have a material adverse effect on our business and prospects.  The practical effect of the Peoples Republic of China legal system on our business operations in China can be viewed from two separate but intertwined considerations. First, as a matter of substantive law, the Foreign Invested Enterprise laws provide significant protection from government interference. In addition, these laws guarantee the full enjoyment of the benefits of corporate Articles and contracts to Foreign Invested Enterprise participants. These laws, however, do impose standards concerning corporate formation and governance, which are not qualitatively different from the general corporation laws of the several states. Similarly, the Peoples Republic of China accounting laws mandate accounting practices, which are not consistent with U.S. Generally Accepted Accounting Principles. China's accounting laws require that an annual "statutory audit" be performed in accordance with Peoples Republic of China accounting standards and that the books of account of Foreign Invested Enterprises are maintained in accordance with Chinese accounting laws. Article 14 of the Peoples Republic of China Wholly Foreign-Owned Enterprise Law requires a Wholly Foreign-Owned Enterprise to submit certain periodic fiscal reports and statements to designate financial and tax authorities, at the risk of business license revocation. Second, while the enforcement of substantive rights may appear less clear than United States procedures, the Foreign Invested Enterprises and Wholly Foreign-Owned Enterprises are Chinese registered companies, which enjoy the same status as other Chinese registered companies in business-to-business dispute resolution. Generally, the Articles of Association provide that all business disputes pertaining to Foreign Invested Enterprises are to be resolved by the Arbitration Institute of the Stockholm Chamber of Commerce in Stockholm, Sweden, applying Chinese substantive law. Any award rendered by this arbitration tribunal is, by the express terms of the respective Articles of Association, enforceable in accordance with the "United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958)." Therefore, as a practical matter, although no assurances can be given, the Chinese legal infrastructure, while different in operation from its United States counterpart, should not present any significant impediment to the operation of Foreign Invested Enterprises.  Economic Reform Issues  Although the Chinese government owns the majority of productive assets in China, during the past several years the government has implemented economic reform measures that emphasize decentralization and encourage private economic activity. Because these economic reform measures may be inconsistent or ineffectual, there are no assurances that:  12    -We will be able to capitalize on economic reforms;-The Chinese government will continue its pursuit of economic reform policies;-The economic policies, even if pursued, will be successful;-Economic policies will not be significantly altered from time to time; and-Business operations in China will not become subject to the risk of nationalization.  Since 1979, the Chinese government has reformed its economic systems. Because many reforms are unprecedented or experimental, they are expected to be refined and improved. Other political, economic and social factors, such as political changes, changes in the rates of economic growth, unemployment or inflation, or in the disparities in per capita wealth between regions within China, could lead to further readjustment of the reform measures. This refining and readjustment process may negatively affect our operations.  Over the last few years, China's economy has registered a high growth rate. Recently, there have been indications that rates of inflation have increased. In response, the Chinese government recently has taken measures to curb this excessively expansive economy. These measures have included devaluations of the Chinese currency, the Renminbi (RMB), restrictions on the availability of domestic credit, reducing the purchasing capability of certain of its customers, and limited re-centralization of the approval process for purchases of some foreign products. These austerity measures alone may not succeed in slowing down the economy's excessive expansion or control inflation, and may result in severe dislocations in the Chinese economy. The Chinese government may adopt additional measures to further combat inflation, including the establishment of freezes or restraints on certain projects or markets.  To date, reforms to China's economic system have not adversely impacted our operations and are not expected to adversely impact operations in the foreseeable future; however, there can be no assurance that the reforms to China's economic system will continue or that we will not be adversely affected by changes in China's political, economic, and social conditions and by changes in policies of the Chinese government, such as changes in laws and regulations, measures which may be introduced to control inflation, changes in the rate or method of taxation, imposition of additional restrictions on currency conversion and remittance abroad, and reduction in tariff protection and other import restrictions.  Item 2. Description of Property.  Presently, our corporate office is located at Anlian Building, Suite #A 1501, Futian District, Shenzhen, China.  The BTS campus, consisting of approximately 96,671.5 square meters, is located at Yue Hu Road, Wu Zhong Qu, Suzhou City, Jiangsu Province, P.R. China 215104 and contains 12 buildings consisting of approximately 50,000 square meters. Both the land and buildings are leased by BTS from Suzhou Ming Long Industry Ltd, a former shareholder of BTS.  The monthly rental payments for the BTS campus are approximately $2,515.  Prior to the closing of the Stock Transaction, we operated out of office space located at 1200 West 73rd Avenue, Suite 1100, Vancouver, BC, Canada, V6P 6G5. The lease covering such space was month-to-monthand called for minimum monthly rental payments of $950 per month.  Item 3. Legal Proceedings.  On March 25, 2005, two of the Companys note holders filed an involuntary petition of bankruptcy against the Company under Chapter 11 of the Untied States Code.  They were subsequently joined by two other note holders.  The Company answered and denied various allegations of the Petition.  The parties conducted extensive discovery and on June 7, 2005, a hearing was held in the United States Bankruptcy Court for the District of Nevada and the parties announced that they were working towards a tentative settlement.  On April 18, 2006, the Bankruptcy Court for the District of Nevada entered an order dismissing our Chapter 11 bankruptcy case, based upon a joint motion to dismiss the case and a joint motion to approve a global settlement with our creditors.  13    Item 4. Submission of Matters to a Vote of Security Holders.  In September 2006, our majority shareholder (holding 1,000,000 shares, on a post-Reverse Stock Split adjusted basis (approximately 80%) of the shares of our Common Stock outstanding at such time) consented in writing, without a meeting, to implement the Reverse Stock Split. On or about September 21, 2006, we mailed to our shareholders an information statement on Schedule 14C with respect to such matter and, on October 11, 2006, we implemented the Reverse Stock Split as described above.  In November 2006, our majority shareholder (holding 34,918,000 shares (approximately 61.8% of the shares of our Common Stock outstanding at such time) consented in writing, without a meeting, to change our Company's name from Claremont Technologies Corp. to China Ivy School, Inc.  On or about December 18, 2006, we mailed to our shareholders an information statement on Schedule 14C with respect to such matter, and, on January 8, 2007 (twenty-one days after the mailing), we changed our name as described above.  PART II Item 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities. Since January 9, 2007, our  common stock has been quoted on the OTC Bulletin Board under the trading symbol "CIVY".  The prices set forth below reflect the quarterly high and low bid price information for shares of our common stock during the Fiscal Year ended December 31, 2006.  These quotations reflect inter-dealer prices, without retail markup, markdown or commission, and may not represent actual transactions.  2005-2006 Quarter EndedHigh Bid PriceLow Bid Price12/31/2006$2.00$0.2509/30/2006$0.90$0.5006/30/2006$2.00$0.8003/31/2006$1.50$0.80  As of March 26, 2007, there were approximately 36 holders of record of our common stock.  Our common stock is covered by an SEC rule that imposes additional sales practice requirements on broker-dealers who sell such securities to persons other than established customers and accredited investors. Established customers are generally institutions with assets in excess of $5,000,000, and accredited investors are individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 individually or $300,000 jointly with their spouse.  For transactions covered by the rule, the broker-dealer must make a special suitability determination for the purchaser and transaction prior to the sale.  Consequently, the rule may affect the ability of broker-dealers to sell our securities, and also may affect the ability of purchasers of our common stock to sell their shares in the secondary market.  It may also cause fewer broker-dealers to be willing to make a market in our common stock, and it may affect the level of news coverage we receive.  We have not declared or paid any cash dividends on our common stock since our inception, and our Board of Directors currently intends to reinvest all earnings for use in the business for the foreseeable future.  Any future payment of dividends will depend upon our results of operations, financial condition, cash requirements and other factors deemed relevant by our Board of Directors.   14   Item 6. Management's Discussion and Analysis or Plan of Operations. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 The following management discussion and analysis of the financial condition and results of operations of the Company should be read in conjunction with the financial statements and the related notes thereto included elsewhere in this annual report for the year ended December 31, 2006.   The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future. This annual report contains certain forward-looking statements and the Company's future operating results could differ materially from those discussed herein. Certain statements contained in this Report, including, without limitation, statements containing the words "believes," "anticipates," "expects", "intends", "may", or "should" and the like, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to announce publicly the results of any revisions of the forward-looking statements contained or incorporated by reference herein to reflect future events or developments.  OVERVIEW AND STATUS OF OPERATIONS   The Companywas incorporated on September 14, 1999 under the laws of the State of Nevada.  The Company acquired a wholly owned subsidiary SCT on August 22, 2003.  SCT was incorporated on May 9, 1996 under laws of the Province of British Columbia, Canada.  BIL, an education investment enterprise, was incorporated under the laws of the State of Nevada on June 1, 2006. BTS was established in 2001 under the laws of the Peoples Republic of China. BIL owns 100% of the outstanding shares of BTS.  During the fiscal year ending December 31, 2006, the Company was primarily engaged in the development of the businesses of SCT. These initiatives included the hiring and training of key personnel, the development of regional and national distribution partnerships and the establishment of SCTs professional athlete testimonial program.  To finance its operations, during the year ended December 31, 2006, the Company issued 1,000,000 shares of its common stock for proceeds of $550,000.  In March 2005, certain creditors, including former members of the management of the Company, filed an involuntary petition under Chapter 7 of the Bankruptcy Code against the Company. The Company successfully converted the original action into a voluntary action under Chapter 11.  Subsequently, as a result of a settlement between the Company and the creditors, on April 18, 2006, the Bankruptcy Court for the District of Nevada entered an order dismissing the Bankruptcy Action.  On October 12, 2006, the Company, BIL, BTS, and the shareholders of BIL consummated a Share Exchange Agreement (the Share Exchange Agreement) pursuant to which the Company acquired 100% of BIL in a stock transaction valued at approximately USD$27,625,000. Under the Share Exchange Agreement, in exchange for surrendering all their ownership in BIL, the shareholders of BIL received 55,250,000 newly issued shares of the Companys common stock.  The acquisition was accounted for as a reverse acquisition under the purchase method of accounting. Accordingly, the transaction was treated as a merger of the Company and BIL and has been recorded as a recapitalization of BIL, with BIL being treated as the continuing entity, and as a result, the historical financial statements of BIL became the historical financial statements of the Company. For the immediate future the Company intends to focus its efforts on the activities of BTS, though it may continue to devote a minor portion of its capital to the development of the projects of SCT.   15   RESULTS OF OPERATIONS  The following table presents the statement of operations for the year ended December 31, 2006 as compared to the comparable period of the year ended December 31, 2005. The discussion following the table is based on these results.  20062005Net Revenue$5,564,409$5,252,757Operating ExpensesDepreciation342,570283,700Consulting expense3,250,000-General and administrative expenses1,957,7301,990,808Total operating expenses5,550,3002,274,508Income from operations14,1092,978,249Other (Income) ExpenseInterest income(55,231)(8,329)Miscellaneous (income) expense(189,825)1,633Interest expense794,439580,191Total Other Income549,383573,495Net income$(535,274)$2,404,754  Net revenue  Net revenue for the year ended December 31, 2006 totaled $5,564,409 compared to $5,252,757 for the year ended December 31, 2005, an increase of $311,652, or approximately 5.93%. The increase was due to increased enrollment in 2006 as compared to 2005.  Operating Expenses  Consulting expenses and general and administrative expenses for the year ended December 31, 2006 totaled $5,550,300 or approximately 99.7% of net revenue, compared $2,274,508 or approximately 43.3% of net revenue for the year ended December 31, 2005. The increase in operating expense of $3,275,792 or approximately 144% was due to consulting fees of $3,250,000 for  market research, strategic planning and to identify investment bankers. The company issued 5,000,000 shares of the common stock in January 2007 as a payment for consulting fees. The consulting fees accounted for 58% of total operating expenses in 2006.  Unless we will have future acquisitions, we expect the operating expenses to be much lower in the year ending December 31, 2007.  Income from Operations  Income from operations for the year ended December 31, 2006 was $14,109 as compared to income from operations of $2,978,249 for the year ended December 31, 2005, a decrease in income of $2,964,140. The decrease was due to the increased operating expenses that was incurred.  16   Other (Income) Expense  Miscellaneous income for the year ended December 31, 2006 totaled $189,825 as compared to $1,633 of expense for the year ended December 31, 2005, an increase of $191,458 or approximately 11,724%.  The increase in miscellaneous income was mainly due to the collection of receivable that was reserved as allowances on the books in prior years.  Interest expense for the year ended December 31, 2006 totaled $794,439 compared to $580,191 for the year ended December 31, 2005, an increase of $214,248 or approximately 37%. The increase was due to additional loans that were obtained to repay loans and interest that was due during the year ended December 31, 2005.  Net Income (loss)  Our net loss was $535,274 for the year ended December 31, 2006 compared to net income of $2,404,754 for the same period in 2005, a decrease in income of $2,940,028. The increased loss was due to the increase in operating expenses.  LIQUIDITY AND CAPITAL RESOURCES  Cash has historically been generated from operations. Operations and liquidity needs are funded primarily through cash flows from operations and short-term borrowings. Cash and cash equivalents were $2,312,358 at December 31, 2006 and current assets totaled $20,212,051 at December 31, 2006. The Company's total current liabilities were $16,547,285 at December 31, 2006. Working capital at December 31, 2006 was $3,664,766. Net cash provided by operations for the year ended December 31, 2006 was $5,517,388, as compared to net cash provided by operations of $2,496,645 during the same period in 2005. The increase in net cash provided by operating activities was a result of the decrease in receivables and increase in accounts payable.  The Company has generally used short-term financing arrangements with several commercial banks in China in order to meet its operations and liquidity needs. As of December 31, 2006, the total outstanding principal amount of the loans was $15,384,000, and such loans were secured by cash collateral in the form of a certificate of deposit. We believe that all of the applicable interest rates applicable to the loans are consistent with prevailing interest rates in the lending industry.  Net cash used in investing activities totaled $6,482,920 for the year ended December 31, 2006, compared with $10,691,850 that used for the same period in 2005. The net cash change was $7,273 and $2,216,152 for the year ended December 31, 2006 and 2005, respectively.  Prior to October 12, 2006, the Company was in the development stage and did not generate sufficient revenues to from operations to fund the development of its products.  During the year ended December 31, 2006, the Company issued 1,000,000 shares of its common stock for proceeds of $550,000 to fund its operations.  On October 12, 2006, the Company acquired the BTS.  The Company anticipates that it will generate sufficient revenues from the BTS to fund its operations.  It should be noted, however, that a substantial portion of the revenues of BTS are donations, and there can be no assurance that it will be successful in its efforts to receive these donations or otherwise operate its business profitably or generate positive cash flow therefrom.  If the Company were to need additional cash to fund operations, it could seek to raise such monies in the form of debt or equity.  There can be no assurance that any such debt or equity would be available to the Company or, if available, the terms thereof.   17   Working Capital Requirements  Historically operations, short term financing and the sale of our company stock have been sufficient to meet our cash needs. We believe that we will be able to generate revenues from sales. However, our actual working capital needs for the long and short term will depend upon numerous factors, including operating results, competition, and the availability of credit facilities, none of which can be predicted with certainty. Future expansion will be limited by the availability of financing products and raising capital.  OFF-BALANCE SHEET ARRANGEMENTS  We have never entered into any off-balance sheet financing arrangements and have never established any special purpose entities. We have not guaranteed any debt or commitments of other entities or entered into any options on non-financial assets.  Recent Accounting Pronouncements    In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid Financial Instruments-an amendment of FASB Statements No. 133 and 140", to simplify and make more consistent the accounting for certain financial instruments. SFAS No. 155 amends SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities", to permit fair value re-measurement for any hybrid financial instrument with an embedded derivative that otherwise would require bifurcation, provided that the whole instrument is accounted for on a fair value basis. SFAS No. 155 amends SFAS No. 140, "Accounting for the Impairment or Disposal of Long-Lived Assets", to allow a qualifying special-purpose entity to hold a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument. SFAS No. 155 applies to all financial instruments acquired or issued after the beginning of an entity's first fiscal year that begins after September 15, 2006, with earlier application allowed. This standard is not expected to have a significant effect on the Company's future reported financial position or results of operations.  In March 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 156, Accounting for Servicing of Financial Assets - an amendment of FASB No. 140 (SFAS 156).  SFAS 156 requires an entity to recognize a servicing asset or liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract in specified situations, such servicing assets or liabilities would be initially measured at fair value, if practicable and subsequently measured at amortized value or fair value based upon an election of the reporting entity.  SFAS 156 also specifies certain financial statement presentation and disclosures in connection with servicing assets and liabilities.  SFAS 156 is effective for fiscal years beginning after September 15, 2006 and may be adopted earlier but only if the adoption is in the first quarter of the fiscal year.  The Company does not expect the adoption of SFAS No. 156 to have a material impact on its financial condition or results of its consolidated operations.  In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value Measurements. SFAS No. 157 clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions.  Under the standard, fair value measurements would be separately disclosed by level within the fair hierarchy.  SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years, with early adoption permitted.  The Company does not expect the adoption of SFAS No. 157 to have a material impact on its financial condition or results of its consolidated operations.   18   In September 2006, SFAS 158, Employers Accounting for Defined Benefit Pensions and Other Post-Retirement Plans (SFAS 158), was issued by the Financial Accounting Standards Board (FASB) and is effective for financial statements for fiscal years ending after December 15, 2006.  SFAS 158 improves financial reporting by requiring an employer to recognize the over-funded or under-funded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize the changes in that funded status in the year in which the changes occurred through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization.  This Statement also improves financial reporting by requiring an employer to measure the funded status of a plan as of the date of its year-end statement or financial position, with limited exceptions.  We anticipate that SFAS 158 will not have a material impact on our financial statements.  In September 2006, the Securities and Exchange Commission issued Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Current Year Misstatements. SAB No. 108 requires analysis of misstatements using both an income statement (rollover) approach and a balance sheet (iron curtain) approach in assessing materiality and provides a one-time cumulative effect transition adjustment.  SAB No. 108 is effective for out 2006 annual financial statements.  We are currently assessing the potential impact that the adoption of SAB No. 108 will have on our consolidated financial statements.  The adoption of SAB No. 108 is not expected to have a material impact on the consolidated financial statements.  In July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes, which is an interpretation of SFAS No. 109, Accounting for Income Taxes.  FIN 48 clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements.  FIN 48 also provides guidance on de-recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition.  In addition, FIN 48 clearly scopes out income taxes from Financial Accounting Standards Board Statement No. 5, Accounting for Contingencies. FIN 48 is effective for fiscal years beginning after December 15, 2006.  The Company anticipates adopting FIN 48 in the fiscal year starting January 1, 2007 and cannot reasonably estimate the impact of this interpretation at this time.  In December 2004, the FASB issued FASB SFAS No. 123 (revised 2004), Share-Based Payment, which is a revision of SFAS No. 123, Accounting for Stock-Based Compensation. SFAS No. 123(R) supersedes APB Opinion No. 25, Accounting for Stock Issued to Employees, and amends SFAS No. 95, Statement of Cash Flows. Generally, the approach in SFAS No. 123(R) is similar to the approach described in SFAS No. 123. However, SFAS No. 123(R) requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. The new standard became effective for our Company on December 15, 2005. As of the date hereof, we have yet to grant any stock options in our securities.  Any options in the Company to be exchanged in the proposed merger will be accounted for under the new standard.  The FASB also issued FASB Statement No. 154 (SFAS 154) which replaces APB Opinion No. 20, Accounting Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes the requirements for the accounting for and reporting of a change in accounting principle. It is not believed that this will have an impact on the Company in the foreseeable future as no accounting changes are anticipated.  Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying consolidated financial statements.   19   Critical Accounting Policies  Our significant accounting policies are more fully described in Note B to the audited financial statements included with this Annual Report.  The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates. An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.  We have identified the policies below as critical to our business operations and the understanding of our financial statements.  Foreign currency transactions and comprehensive income (loss)  As of December 31, 2006 and 2005, the accounts of Brighter International and Safe Cell were maintained, and its financial statements were expressed, in Chinese Yuan Renminbi (CNY) and Canadian Dollars (CAD). Such financial statements were translated into U.S. Dollars (USD) in accordance with Statement of Financial Accounts Standards (SFAS) No. 52, Foreign Currency Translation, with the CNY as the functional currency. According to the Statement, all assets and liabilities were translated at the current exchange rate, stockholders equity are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, Reporting Comprehensive Income as a component of shareholders equity. .  During the years ended December 31, 2006 and 2005, the transactions of Brighter International and Safe Cell were denominated in foreign currency and were recorded in Chinese Yuan Renminbi (CNY) and Canadian Dollars (CAD) at the rates of exchange in effect when the transactions occur. Exchange gains and losses are recognized for the different foreign exchange rates applied when the foreign currency assets and liabilities are settled. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.  Revenue Recognition  The revenues of the Companys are tuition fees, accommodation fees and donation fees. Tuition fees and accommodation fees are collected in advance. Tuition fee is recognized as revenue proportionately as the instructions are delivered, and are reported net of scholarships and tuition refunds. Accommodation fee is recognized as revenue in proportion to semester progressed through the end of the reporting period.  Tuition and accommodation fees paid in advance are recorded as deferred revenue. Donation is collected and recognized as revenue upon receipt of the donation.  Stock-Based Compensation  In December 2004, the FASB issued SFAS No. 123 (revised 2004), Share-Based Payment (SFAS 123R), which requires the measurement of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method and the recording of such expense in the consolidated statements of operations. In March 2005, the SEC issued Staff Accounting Bulletin No. 107 (SAB 107) regarding the SECs interpretation of SFAS 123R and the valuation of share-based payments for public companies. The Company has adopted SFAS 123R and related FASB Staff Positions (FSPs) as of December 31, 2006 and will recognize stock-based compensation expense using the modified prospective method.   As of December 31, 2006, the Company has not issued any stock options or warrants.  20    Income Taxes  The Company utilizes SFAS No. 109, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.  Blue Tassel is governed by the Income Tax Laws of the PRC. Pursuant to the PRC relevant laws & regulations and tax law, the Company is exempt from income tax.  Item 7. Financial Statements.  The financial information required by this item is set forth beginning on page F-1.  Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.  On March 10, 2005, pursuant to a resolution of the Board of Directors recommending, approving and directing the action, the Company engaged the accounting firm of Madsen & Associates, CPA's Inc., as its principal accountant to audit its financial statements for the quarter year ended December 31, 2004, and those of is subsidiaries. Madsen & Associates, CPA's Inc. replaced Morgan & Company, which had previously served as the Company's independent accountants. The Company executed the engagement letter with Madsen & Associates, CPA's Inc. on March 21, 2005.  Morgan & Company, the Company's independent accountant prior to March 15, 2005 had not resigned or declined to stand for re-election, the Company's Board of Directors concluded to dismiss them and change to a firm with Salt Lake City offices.  The reports of Morgan & Company on the financial statements for the year ended September 30, 2004, did not include any adverse opinion or disclaimer of opinion, or any qualification or modification as to uncertainty, audit scope or accounting principles.  During the year ended September 30, 2004, and through March 15, 2005, there were no disagreements with Morgan & Company on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure.  As stated above, there are no reportable events as defined in Regulation S-B Item 304(a)(1)(iv) that Morgan & Company advised the Company of during the period of their engagement.  On January 8, 2007, the Company appointed the firm of Kabani & Company, Inc. (New Auditor) as the Company's independent auditor and, as of such date, dismissed the firm of Madsen & Associates, CPAs Inc. (Former Auditor), which had been serving as the Companys independent auditor up to such date. The reports of the Former Auditor on the Companys financial statements for the fiscal years ended September 30, 2005 and September 30, 2006 did not contain an adverse opinion, a disclaimer of opinion or any qualifications or modifications related to uncertainty, limitation of audit scope or application of accounting principles, except that such reports of the Former Auditor expressed substantial doubt about the Companys ability to continue as a going concern and state that The financial statements do not include any adjustments that might result from the outcome of this uncertainty.  From the inception of the Former Auditors service to January 8, 2007, the Company did not have any disagreements (within the meaning of Instruction 4 of Item 304 of Regulation S-K) with the Former Auditor as to any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure and there have been no reportable events (as defined in Item 304 of Regulation S-K).   21   Item 8A.  Controls and Procedures. We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in its Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e).  In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  At the end of the period covered by this Annual Report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures. Based upon the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2006, the disclosure controls and procedures of the Company were not effective to ensure that the information required to be disclosed in the Companys Exchange Act reports was recorded, processed, summarized and reported on a timely basis.  There were no changes in internal controls over financial reporting that occurred during the fiscal year ended December 31, 2006, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  Item 8B.  Other Information. None.  PART III Item 9. Directors, Executive Officers, Promoters, Control Persons and Corporate Governance; Compliance with Section 16(a) of the Exchange Act. The following table sets forth information with respect to the current directors and executive officers of the Company.  Name of IndividualAgePosition with the CompanyYongqi Zhu49Director, Chief Executive OfficerQian Gao25Director, SecretaryJian Xue37Chief Financial OfficerYipeng Lu44DirectorFugeng Xia66DirectorHaiming Zhang44Director  The business experience of each director and executive officer of the Company is set forth below.  Yongqi Zhu -  Mr. Zhu graduated from Zuzhou University and Beijing University and received an MBA degree at Singapore Nanyang Technological University. He previously worked at several governmental departments of Wuxian, Jiangsu Province as office manager, deputy general manager, general manager and Communist Party secretary. His outstanding performance at each of these positions led to a great deal of appreciation from his colleagues and community. With support from the government and with great enthusiasm for contributing to the education industry, Zhu started Blue Tassel School in 2001. Zhu also served as the manager of Brighter International Limited (BIL).  22    Qian Gao   Ms. Gao graduated from Foreign Yangzhou University in 2004, majoring in English. In 2003, while a student at Foreign Yangzhou University, Ms. Gao was chosen to continue her studies at Valdosta State University, located at Valdosta, Georgia, U.S.A. She worked at the Project Promotion Bureau of Suzhou Wuzhong Economic Development Zone, as a project manager and served as a vice director of the department from 2004 to 2006. In October 2006, she joined Brighter International Limited (BIL).  Jian Xue -  Ms. Xue graduated from Nanjing Institute of Financial, majoring in accounting. Ms. Xue is an experienced accountant and worked at several of Chinas renowned accounting companies both as an accountant and as an auditor. Ms. Xue has also worked at Suzhou Governmental Chemical Union as an accounting specialist. From 1998 to 2002, she worked at Suzhou Jiatai Union, an accounting company, and served as office manager and deputy director. Ms. Xue has experience in the fields of administration management and financial management. In 2002, Ms. Xue joined BIL.  Yipeng Lu-  Mr. Lu began his teaching career at High School Affiliated to Nanjing Normal University after graduating from Nanjing Normal University in 1983. In 1989, as a representative of Chinas young teachers, Mr. Lu was chosen by China's Education Commission to continue his studies in Japan. During 1995 Mr. Lu served as the principal of the High School Affiliated to Nanjing Normal University. In July 2001 Mr. Lu, as one of the sponsors, joined BTS. Currently he is the principal of BTS; serves as vice-president of the provincial educational association; is a supervisor of post-graduate master students in the Chemistry Department of Nanjing Normal University; and is a visiting professor at Nanjing Xiaozhuang College. Since 1992 Mr. Lu has been recognized as one of Nanjings top chemistry teachers and one of the top ten teachers in Nanjing. In 1997 he was recognized as the outstanding education specialist of Jiangsu Province and awarded the gold prize for excellence in education by Hong Kongs Bonington Education Foundation.  Fugeng Xia -  Mr. Xia was chosen as one of Chinas top educators in 1989. In 1992 he served as vice-principal of Suzhou No. 10 High School. At the same time, he was the director for the Olympic Mathematics Contests. Mr. Xia educated and coached a large number of students who won the first prize in the national and provincial Olympic Mathematics Contests. Mr. Xia has written more than ten theses which were published by important national level journals. Mr. Xia joined BTS in July of 2001. Currently he is not only the vice-principal of BTS, but also serves as a director of Jiangsu Provincial High School Mathematics Association, as well as being the vice-president of Suzhou High School Mathematics Association. In addition to his educational activities, Mr. Xia has been a standing member of the National Peoples Congress, and served as a representative in the tenth session of the Suzhou Municipal Peoples Congress.  Haiming Zhang -  Mr. Zhang graduated from Nanjing Normal University in 1983, and began his teaching career at High School Affiliated to Nanjing Normal University in 1992. He was the coach of the International Olympic Physics Contest in Nanjing for 10 years and trained and mentored a large number of students who won the first prize in national and provincial Olympic Physics Contests. Mr. Zhang was the director of the Dean's Office at High School Affiliated to Nanjing Normal University. Mr. Zhang, as one of the sponsors, joined Blue Tassel School in July 2001. Mr. Zhang has written more than ten theses which were published in distinguished national and provincial teaching journals in the fields of management, science and technology education, and physics. He is also recognized as one of Nanjings top ten teachers.   23   Director Compensation  Directors of the Company are not compensated in cash for their services but are reimbursed for out-of-pocket expenses incurred in furtherance of our business.  INDEMNIFICATION OF DIRECTORS  The Company's Certificate of Incorporation eliminates the liability of a director of the Company for monetary damages for breach of duty as a director, subject to certain exceptions.  In addition, the Certificate of Incorporation provides for the Company to indemnify, under certain conditions, directors, officers, employees and agents of the Company against all expenses, liabilities and losses reasonably incurred by such persons in connection therewith.  The foregoing provisions may reduce the likelihood of derivative litigation against directors and may discourage or deter stockholders or management from suing directors for breaches of their duty of care, even though such an action, if successful, might otherwise benefit the Company and its stockholders.  Section 16(a) Beneficial Ownership Reporting Compliance Section 16(a) of the Exchange Act, as amended, requires the Companys executive officers, directors and persons who beneficially own more than 10% of China Ivys common stock to file reports of their beneficial ownership and changes in ownership (Forms 3, 4 and 5, and any amendment thereto) with the SEC.  Executive officers, directors, and greater-than-ten percent holders are required to furnish the Company with copies of all Section 16(a) forms they file.  Based solely on its review of such forms received by it, except as provided below, the Company believes that all filing requirements applicable to its directors, executive officers and beneficial owners of 10% or more of the common stock have been complied with since April 14, 2003, the date that the Company registered on Form 8-A its class of common stock under Section 12(g) of the Securities Exchange Act of 1934, as amended.  Code of Ethics The Company has not yet adopted a code of ethics to apply to its principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions because, until recently, we have not been an operating company.  The Company expects to prepare a Code of Ethics in the near future.  Audit Committee  Presently we do not have an Audit Committee.  We intend to establish an Audit Committee and such other committees as may be required when sufficient members and resources are available, and at such time the Companys Board of Directors will establish the Audit Committee.  The Audit Committee will have a designated Audit Committee Financial Expert who will be responsible for reviewing the results and scope of the audit, and other services provided by the independent auditors, and review and evaluate the system of internal controls.  No final determination has yet been made as to the memberships of these committees or when we will have sufficient members to establish the committees.  Item 10.  Executive Compensation.  The following sets forth the annual and long-term compensation for the fiscal year ended December 31, 2006 and 2005, paid to the Company's Chief Executive Officer ("CEO") and the Companys four most highly compensated executive officers, if any, other than the CEO, whose total compensation during fiscal year 2006 exceeded $100,000 and who were serving as executive officers at the end of the 2006 fiscal year (collectively, the Named Executive Officers). No director, officer or employee has a contract or commitment to receive annual compensation in excess of $100,000.  24   Exhibit A Summary Compensation Table  Name
and
Principal
PositionYearSalary
($)Bonus
($)Stock
Awards
($)Option
Awards
($)Non-Equity
Incentive Plan
Compensation
($)Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings
($)All Other
Compensation
($)Total
($)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)Yongqi Zhu, CEO2006None
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None2005Jian Xue, CFO2006None
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None2005Qian Gao,  Secretary2006None
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None2005Xu Zuqiang, Former CEO2006None
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None2005Trevor Bentley, Former20069.000
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None9,000
None2005Gus Rahim, Former CEO2006None
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
NoneNone
None2005  The Company currently has no formal written salary arrangement with its Chief Executive Officer and, while no specific annual salary or length of employment has been determined, the Company anticipates providing an annual salary not to exceed $100,000 commencing with the successful expansion of business.  The salary will be paid out of revenues, if any, or accrued if sufficient cash is not available to make payments.  Outstanding Equity Awards at Fiscal Year-End Table  Option AwardsStock AwardsNameNumber of
Securities
Underlying
Unexercised
Options(#)ExercisableNumber of
Securities
Underlying
Unexercised
Options(#)UnexercisableEquity
incentive
Plan
Awards:
Number of
Securities
Underlying
Unexercised
Unearned
Options
(#)Option
Exercise
Price
($)Option
Expiration
DateNumber
of
Shares
or Units
of
Stock
That
Have
Not
Vested
(#)Market
Value
of
Shares
or
Units
of
Stock
That
Have
Not
Vested
($)Equity
Incentive
Plan
Awards:
Number
of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
(#)Equity
Incentive
Plan
Awards:
Market
or Payout
Value of
Unearned
Shares,
Units or
Other
Rights
That
Have Not
Vested
($)(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)Yongqi Zhu, CEONoneNoneNoneNoneNoneNoneNoneNoneNoneJian Xue, CFONoneNoneNoneNoneNoneNoneNoneNoneNoneQian Gao,  SecretaryNoneNoneNoneNoneNoneNoneNoneNoneNoneXu Zuqiang, Former CEONoneNoneNoneNoneNoneNoneNoneNoneNoneTrevor Bentley, Former CEONoneNoneNoneNoneNoneNoneNoneNoneNoneGus Rahim, Former CEONoneNoneNoneNoneNoneNoneNoneNoneNone  25    Item 11. Security Ownership of Certain Beneficial Owners and Management and RelatedStockholder Matters.  We have 61,500,000 shares of common stock outstanding as of March 26, 2007.  The following table sets forth certain information regarding the beneficial ownership of our common stock as of March 26, 2007 by: (i) each person who, to our knowledge, beneficially owns more than 5% of our common stock; (ii) each of our current directors and executive officers; and (iii) all of our current directors and executive officers as a group.  Unless otherwise noted below, we believe that all persons named in the table have sole voting and investment power with respect to all shares of Common Stock beneficially owned by them. For purposes hereof, a person is deemed to be the beneficial owner of securities that can be acquired by such person within 60 days from the date hereof upon the exercise of warrants or options or the conversion of convertible securities. Each beneficial owners percentage ownership is determined by assuming that any warrants, options or convertible securities that are held by such person (but not those held by any other person) and which are exercisable within 60 days from the date hereof, have been exercised.  Name of
Beneficial OwnerNumber of SharesPercent
of Outstanding
SharesYongqi Zhu23,673,00038.49%Ming Long Industry Asia Company Limited6,700,00010.89%First Capital Limited5,525,0008.98%Simple (HK) Investment & Management Co. ltd.4,420,0007.18%China US Bridge Capital Limited3,867,5006.28%Shenzhen Shiji Ruicheng Guaranty & Investment Co. Ltd3,480,7505.66%Shenzhen Dingyi Investment Co. Ltd.3,038,7504.94%Yipeng Lu3,030,0004.93%Haiming Zhang1,515,0002.46%Qian Gao00%Jian Xue00%Fugeng Xia00%All Officers & Directors as a Group (6 persons)28,218,00045.88%  The address of each of our current officers and directors is Anlian Building, Suite #A 1501, Futian District, Shenzhen, China.  Item 12.  Certain Relationships and Related Transactions. Pursuant to the Stock Transaction, Zuqiang acquired 750,000 (on a post-Reverse Stock Split adjusted basis) shares of the Companys Common Stock and 250,000 (on a post-Reverse Stock Split adjusted basis) shares of the Companys Preferred Stock.  After giving effect to the Stock Transaction, Zuqiang held, on a post-Reverse Stock Split adjusted basis, in addition to two hundred fifty thousand (250,000) shares of the Companys Preferred Stock, seven hundred fifty thousand (750,000) of the one million (1,000,000) shares of our Common Stock then issued and outstanding, constituting, in the aggregate, 75% of the issued and outstanding shares of Common Stock of the Company (80% after giving effect to the conversion of the Preferred Stock into Common Stock).  Pursuant to the Share Exchange Transaction, Zhu acquired 34,918,000 shares of the Companys Common Stock.  After giving effect to the Share Exchange Transaction, Zhu held a total of 34,918,000 shares of the 56,500,000 shares of the Companys common stock then issued and outstanding, constituting, in the aggregate, 56.7% of the issued and outstanding shares of the Companys common stock.  26    The Company leases the BTS campus (the buildings thereon) from Suzhou Ming Long Industry Ltd. (Ming Long Ltd.), a former shareholder of BTS. The term of the lease agreement expires on August 31, 2014. The rent which the Company pays to Ming Long Ltd. is based on the Suzhou rental market.  The annual rental payments were $30,185 and $29,760 for the years ended December 31, 2006 and 2005, respectively.  Zhu, our Chairman and Chief Executive Officer, is the controlling shareholder, as well as an executive officer, of Ming Long Ltd.  During the fiscal year ended December 31, 2006, the BTS campus (both the land and buildings thereon), which had previously been lent to BTS by Ming Long Ltd. with the intention of transferring title from Ming Long Ltd. to BTS, as such, the BTS campus was treated as fixed asset of BTS, and therefore, BTS made certain payments to Ming Long Ltd. for the right to use the BTS campus and offset the payment of due upon the transfer of title of the BTS campus to BTS, reverted to a fixed asset of Ming Long Ltd. since the transfer of title never occurred.  The payments previously made to Ming Long Ltd. by BTS are currently being repaid to BTS by Ming Long Ltd., and $17,457,966 is currently outstanding.  During the fiscal year ended December 31, 2006, BTS, our subsidiary, advanced to Suzhou Blue Tassel Training Institute (Suzhou), a company organized under the laws of China, and a subsidiary of Ming Long Ltd., approximately $34,101.  On January 26, 2007, Suzhou repaid balance on this loan in full.  Item 13. Exhibits.  Exhibit Nos.Description of Exhibit2.1Share Exchange Agreement, dated as of August 23, 2003, between the Company and SCT (incorporated herein by reference to Exhibit 2.1 of the Companys Form 8-K report, filed September 3, 2003).2.2Amended Share Exchange Agreement, dated as of March 12, 2004, between the Company and SCT (incorporated herein by reference to Exhibit 2.1 of the Companys Form 8-K report, filed March 26, 2004).2.3Stock Purchase Agreement, dated as of June 1, 2006, by and between the Company and Zuqiang (incorporated herein by reference to Exhibit 10.1 of the Companys Form 8-K report, filed June 12, 2006).2.4Amendment to Stock Purchase Agreement, dated as of August 24, 2006, by and between the Company and Zuqiang (incorporated herein by reference to Exhibit 10.1 of the Companys Form 8-K report, filed August 29, 2006).2.5Share Exchange Agreement, dated as of October 12, 2006, among the Company, BIL, BTS and the BIL Shareholders Stock Purchase Agreement, dated as of June 1, 2006, by and between the Company and Zuqiang (incorporated herein by reference to Exhibit 10.1 of the Companys Form 8-K report, filed October 13, 2006).3.1.1Articles of Incorporation of the Company (incorporated herein by reference to Exhibit 3.1 to the Companys Registration Statement on Form SB-2, filed January 26, 2001).3.1.2Certificate of Correction of Articles of Incorporation (incorporated herein by reference to Exhibit 3.1 of the Companys Form 8-K report, filed August 29, 2006).3.2By-Laws and Amended By-Laws of the Company (incorporated herein by reference to Exhibit 3.2 of Companys Registration Statement on Form SB-2, filed January 26, 2001).4.1Certificate of Designation (incorporated herein by reference to Exhibit 3.2 of the Companys Form 8-K report, filed August 29, 2006).10.1Mutual Release, Settlement and Indemnification Agreement among the Company, Trevor Bentley and Lorne Chomos (incorporated herein by reference to Exhibit 10.2 of the Companys Form 8-K report, filed August 29, 2006).31.1*Certification of Chief Executive Officer required by Rule 13a-14(a) under the Exchange Act.31.2*Certification of Chief Financial Officer required by Rule 13a-14(a) under the Exchange Act.32.1*Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002.  27    32.2*Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act of 2002.  Numbers with (*) indicate exhibits that are filed herewith.  Item 14.  Principal Accountant Fees and Services.  For fiscal year 2006 and fiscal year 2005, the aggregate fees billed by Madsen & Associates, CPAs Inc., our principal independent accounting firm, for professional services were as follows:  Fiscal Year EndedDecember 31, 2006December 31, 2005Audit Fees$5,000$5,000Audit-Related FeesNoneNoneTax FeesNoneNoneAll Other FeesNoneNone   28   From the time of their appointment to the date of filing herein, the aggregate fees billed by Kabani & Company, Inc. for professional services were as follows:  Fiscal Year EndedDecember 31, 2006December 31, 2005Audit Fees$32,500NoneAudit-Related FeesNoneNoneTax FeesNoneNoneAll Other FeesNoneNone  As of December 31, 2006, we did not have a formal documented pre-approval policy for the fees of our principal accounting firm.   29    SIGNATURES In accordance with Section 13 or 15(d) of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CHINA IVY SCHOOL INC. Date: March 28, 2007 By:  /s/ Yongqi Zhu Yongqi Zhu Chief Executive Officer  In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Date  /s/ Yongqi Zhu March 28, 2007 Yongqi Zhu Chief Executive Officer  /s/ Jian Xue March 28, 2007 Jian Xue Chief Financial Officer (Principal Financial and Accounting Officer)  /s/ Yongqi Zhu March 28, 2007 Yongqi Zhu Director  /s/ Qian Gao March 28, 2007 Qian Gao Director  /s/Yipeng Lu March 28, 2007 Yipeng Lu Director  /s/Fugeng Xi March 28, 2007 Fugeng Xia Director  /s/Haiming Zhang March 28, 2007 Haiming Zhang Director  30      TABLE OF CONTENTS       Report of Independent Registered Public Accounting FirmF-2Consolidated Balance Sheet as of December 31, 2006F-3Consolidated Statements of OperationsF-4for the years ended December 31, 2006 and 2005Consolidated Statements of Cash FlowF-5for the years ended December 31, 2006 and 2005Consolidated Statements of Stockholders EquityF-6for the years ended December 31, 2006 and2005Notes to Consolidated Financial StatementsF-7 - F-18   F-1   REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  To the Board of Directors and Stockholders China Ivy School, Inc., (Formerly Claremont Technologies Corp.)  We have audited the accompanying consolidated balance sheet of China Ivy School (Formerly Claremont Technologies Corp.) (the Company) and its subsidiaries as of December 31, 2006 and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2006. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.  We conducted our audits of these statements 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 provide a reasonable basis for our opinion.  In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of China Ivy School, Inc. and its subsidiaries as of December 31, 2006, and the results of its consolidated statements of operations, stockholders' equity, and its cash flows for each of the years in the two-year period ended December 31, 2006 in conformity with accounting principles generally accepted in the United States of America.  /s/ Kabani & Company, Inc.  KABANI & COMPANY, INC. CERTIFIED PUBLIC ACCOUNTANTS  Los Angeles, California March 6, 2007   F-2    CHINA IVY SCHOOL, INC. AND SUBSIDIARIES(FORMERLY CLAREMENT TECHNOLOGIES CORP.)CONSOLIDATED BALANCE SHEETDECEMBER 31, 2006ASSETSCurrent AssetsCash and cash equivalents$2,312,358Receivable from related parties17,492,067Inventories11,934Prepaid expenses46,719Other receivables348,973Total Current Assets20,212,051Property & Equipment, Net5,310,455$25,522,506LIABILITIES AND STOCKHOLDERS' EQUITYCurrent LiabilitiesAccounts payable and accrued expenses$4,477,480Dividend payable3,700,911Other payables229,056Deferred revenue447,838Loan payable - current7,692,000Total Current Liabilities16,547,285Loan Payable - Non Current7,692,000Total Liabilities24,239,285Stockholders' EquityCommon stock, $.001 par value, 100,000,000shares authorized, 56,500,001, issued and outstanding56,500Additional paid in capital30,185Statutory reserve409,612Comprehensive income154,299Retained earnings632,625Total Stockholders' Equity1,283,221$25,522,506   F-3     CHINA IVY SCHOOL, INC. AND SUBSIDIARIES(FORMERLY CLAREMONT TECHNOLOGIES CORP.)CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE YEARS ENDED 2006 AND 200520062005Net Revenue$5,564,409$5,252,757Operating ExpensesDepreciation342,570283,700Consulting expenses3,250,000-General and administrative expenses1,957,7301,990,808Total operating expenses5,550,3002,274,508Income From Operations14,1092,978,249Other (Income) ExpenseInterest income(55,231)(8,329)Miscellaneous (income) expense(189,825)1,633Interest expense794,439580,191Total Other Income549,383573,495Net Income (Loss)(535,274)2,404,754Other Comprehensive IncomeForeign currency translation gain44,571109,728Comprehensive Income (Loss)$(490,703)$2,514,482Basic and diluted weightedaverage number of shares outstanding56,034,93255,500,000Basic and diluted income (loss) per share$(0.00)$0.04*Weighted average number of shares used to compute basic and diluted loss per sharefor the years ended December 31, 2006 & 2005 are the same since the effect ofdilutive securities are anti-dilutive.   F-4    CHINA IVY SCHOOL, INC. AND SUBSIDIARIES(FORMERLY CLAREMONT TECHNOLOGIES CORP.)CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITYFOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005Capital StockAdditionalTotalNumber ofPaid inComprehensiveStatutoryRetainedStockholders'SharesAmountCapitalIncomeReserveEarningsEquityBalanceJanuary 1, 200555,250,000$9,680$-$-$-$1,241,915$1,251,595Contributed capital-29,760----29,760Dividend declared-----(1,888,022)(1,888,022)Foreign currencytranslation gain---109,728--109,728Net income for the yearended December 31, 2005-----2,404,7542,404,754BalanceDecember 31, 200555,250,00039,440-109,728-1,758,6471,907,815Changes due torecapitalization1,250,00117,060---(181,136)(164,076)Contributed capital - Rent--30,185---30,185Foreign currencytranslation gain---44,571--44,571Transfer to statutory reserve----409,612(409,612)-Net income for the yearended December 31, 2006-----(535,274)(535,274)BalanceDecember 31, 200656,500,001$56,500$30,185$154,299$409,612$632,625$1,283,221   F-5    CHINA IVY SCHOOL, INC. AND SUBSIDIARIES(FORMERLY CLAREMONT TECHNOLOGIES CORP.)CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2006 AND 200520062005CASH FLOWS FROM OPERATING ACTIVITIESNet Income / (loss)$(535,274)$2,404,754Adjustments to reconcile net income (loss) to net cashprovided by operating activities:Contribution of capital30,18529,760Depreciation342,570283,700Gain on disposal of property & equipment(6,862)-(Increase) / decrease in assets:Receivable from related parties1,514,945-Other receivable205,627(373,236)Inventory870-Prepaid expense444,618(318,814)Increase / (decrease) in liabilities:Accounts payable and accrued expenses4,014,373(434,357)Deferred revenue(493,662)904,838Net cash provided by operations5,517,3882,496,645CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sales of fixed assets76,620-Increase of loan receivable-(1,098,624)Cash received as part of reverse acquisition432-Due from Shareholder(5,022,219)(9,525,551)Acquisition of property & equipment(1,537,753)(67,675)Net cash used in investing activities(6,482,920)(10,691,850)CASH FLOWS FROM FINANCING ACTIVITIESPayments on bank loan(3,144,250)(10,434,933)Proceeds from related parties984-Proceeds from issuance of notes payable-3,051,150Proceeds from bank loan4,024,64017,757,693Net cash provided by financing activities881,37410,373,910EFFECT OF EXCHANGE RATE CHANGESON CASH AND CASH EQUIVALENTS76,88437,447NET INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS(7,273)2,216,152CASH AND CASH EQUIVALENTS,BEGINNING BALANCE2,319,631103,479CASH AND CASH EQUIVALENTS,ENDING BALANCE$2,312,358$2,319,631(0)SUPPLEMENTAL DISCLOSURES:Cash paid during the year for:Interest paid$794,439$580,191Income tax paid$-$-  F-6   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Note A  ORGANIZATION  China Ivy School, Inc. (Formerly Claremont Technologies Corp.) (China Ivy)was incorporated on September 14, 1999 under the laws of the State of Nevada.  The Company acquired a wholly owned subsidiary Safe Cell Tab Inc. (Safe Cell) on August 22, 2003.  Safe Cell was incorporated on May 9, 1996 under the Provence of British Columbia, Canada.  Brighter International Limited (Brighter International, BIL), an education investment enterprise, was organized in accordance with the General Corporation Act of the State of Nevada on June 1st, 2006. Blue Tassel School (Blue Tassel, BTS) was established in 2001 under the laws of the Peoples Republic of China. BIL owns 100% of the outstanding shares of BTS as its sole sponsor.  On June 15, 2006, BIL entered into an agreement with BTS, and pursuant to the agreement, all the shareholders of BTS transfer all their ownership of BTS to BIL at no cost. Prior to acquisition, BIL and BTS had common shareholders owning the same percentage of ownership in both companies.  BIL donated the right to use land and other properties to BTS as capital contribution. The title change is still in the process.  On October 12, 2006 China Ivy and the shareholders of Brighter International, entered into a Share Exchange Agreement in which China Ivy acquired 100% of Brighter Internationals outstanding common stock.  Under the Share Exchange Agreement the shareholders of Brighter International received 55,250,000 newly issued common shares of the company.  The acquisition was accounted for as a reverse acquisition under the purchase method of accounting. Accordingly, the merger of the two companies has been recorded as a recapitalization of BIL, with BIL being treated as the continuing entity. The historical financial statements presented are those of BIL. The continuing company has retained December 31 as its fiscal year end. The financial statements of the legal acquirer are not significant; therefore, no pro forma financial information is submitted.   Note B  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Basis of Presentation  The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. The Companys functional currency is the Chinese Renminbi and Canadian Dollar; however the accompanying consolidated financial statements have been translated and presented in United States Dollars ($).  Foreign currency transactions and comprehensive income (loss)  As of December 31, 2006 and 2005, the accounts of Brighter International and Safe Cell were maintained, and its financial statements were expressed, in Chinese Yuan Renminbi (CNY) and Canadian Dollars (CAD). Such financial statements were translated into U.S. Dollars (USD) in accordance with Statement of Financial Accounts Standards (SFAS) No. 52, Foreign Currency Translation, with the CNY as the functional currency. According to the Statement, all assets and liabilities were translated at the current exchange rate, stockholders equity are translated at the historical rates and income statement items are translated at the average exchange rate for the period. The resulting translation adjustments are reported under other comprehensive income in accordance with SFAS No. 130, Reporting Comprehensive Income as a component of shareholders equity. .   F-7   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   During the years ended December 31, 2006 and 2005, the transactions of Brighter International and Safe Cell were denominated in foreign currency and were recorded in Chinese Yuan Renminbi (CNY) and Canadian Dollars (CAD) at the rates of exchange in effect when the transactions occur. Exchange gains and losses are recognized for the different foreign exchange rates applied when the foreign currency assets and liabilities are settled. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred.  Use of Estimates  The preparation of financial statements in conformity with generally accepted accounting principles in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts 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.  Significant estimates include collectibility of accounts receivable, accounts payable, sales returns and recoverability of long-term assets.  Principles of Consolidation  The consolidated financial statements include the accounts of China Ivy and its wholly owned subsidiaries Safe Cell, Brighter Internatial and Blue Tassel, collectively referred to within as the Company.  All material intercompany accounts, transactions and profits have been eliminated in consolidation.  Revenue Recognition  The revenues of the Companys are tuition fees, accommodation fees and donation fees. Tuition fees and accommodation fees are collected in advance. Tuition fee is recognized as revenue proportionately as the instructions are delivered, and are reported net of scholarships and tuition refunds. Accommodation fee is recognized as revenue in proportion to semester progressed through the end of the reporting period.  Tuition and accommodation fees paid in advance are recorded as deferred revenue. Donation is collected and recognized as revenue upon receipt of the donation.  Stock-Based Compensation  In December 2004, the FASB issued SFAS No. 123 (revised 2004), Share-Based Payment (SFAS 123R), which requires the measurement of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method and the recording of such expense in the consolidated statements of operations. In March 2005, the SEC issued Staff Accounting Bulletin No. 107 (SAB 107) regarding the SECs interpretation of SFAS 123R and the valuation of share-based payments for public companies. The Company has adopted SFAS 123R and related FASB Staff Positions (FSPs) as of December 31, 2006 and will recognize stock-based compensation expense using the modified prospective method.   As of December 31, 2006, the Company has not issud any stock options or warrants.   F-8   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Advertising  Advertising expenses consist primarily of costs of promotion for corporate image and product marketing and costs of direct advertising. The Company expenses all advertising costs as incurred.  Income Taxes  The Company utilizes SFAS No. 109, Accounting for Income Taxes, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.  Blue Tassel is governed by the Income Tax Laws of the PRC. Pursuant to the PRC relevant laws & regulations and tax law, the Company is exempt from income tax.  Statement of Cash Flows  In accordance with SFAS No. 95, Statement of Cash Flows, cash flows from the Companys operations is based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet.  Concentration of Credit Risk  Financial instruments that potentially subject the Company to concentrations of credit risk are cash, and other receivables arising from our normal business activities. We place our cash in what we believe to be credit-worthy financial institutions. We have a diversified customer base, most of which are in China. We control credit risk by collecting the revenue in advance. The Company routinely assesses the financial strength of its customers 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.  Segment Reporting  Statement of Financial Accounting Standards No. 131 (SFAS 131), Disclosure About Segments of an Enterprise and Related Information requires use of the management approach model for segment reporting. The management approach model is based on the way a companys management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. SFAS 131 has no effect on the Companys consolidated financial statements as the Company consists of one reportable business segment.   F-9   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Risks and Uncertainties  The Company is subject to substantial risks from, among other things, intense competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history, foreign currency exchange rates and the volatility of public markets.  Contingencies  Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur.  The Companys management and legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment.  In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Companys legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought.  If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys financial statements.  If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material would be disclosed.  Loss contingencies considered to be remote by management are generally not disclosed unless they involve guarantees, in which case the guarantee would be disclosed.  Cash and Cash Equivalents  Cash and cash equivalents include cash in hand and cash in time deposits, certificates of deposit and all highly liquid debt instruments with original maturities of three months or less.  Allowance for Doubtful Accounts  Management reviews the composition of accounts receivable, loans and prepaid expense and analyzes historical bad debts, aging analysis, current economic trends and changes in payment patterns to evaluate the adequacy of these reserves. Reserves are recorded primarily on a specific identification basis. Allowance for doubtful accounts amounted to $0 at December 31, 2006.  Inventory  Inventories are valued at the lower of cost (determined on a weighted average basis) or market. The management compares the cost of inventories with the market value and allowance is made for writing down their inventories to market value, if lower. As of December 31, 2006, inventory consisted of packaging material and stationery items, amounted to $11,934.   F-10   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Property, Plant & Equipment  Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of property and equipment is provided using the straight-line method for substantially all assets with estimated lives of:  Construction and Decoration40 yearsEquipment (including electronic facilities, sports & recreation facilities)10 yearsAutomobile10 yearsFurniture and Fixtures5 yearsComputer Hardware and Software5 years  As of December 31, 2006 Property, Plant and Equipment consisted of the following:  Construction and decoration$4,388,801Computer equipment185,696Equipment1,759,763Automobile23,179Accumulated depreciation(1,046,984)$5,310,454  The company disposed two vehicles during the year ended December 31, 2006 for $76,620. The Company recognized a gain of $6,862 from this disposal of vehicles. The Company had depreciation expense was $342,570 and $283,700 for the years ended December 31, 2006, and 2005.  Fair Value of Financial Instruments  Statement of financial accounting standard No. 107, Disclosures about fair value of financial instruments, requires that the Company disclose estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for current assets and current liabilities qualifying as financial instruments are a reasonable estimate of fair value.  Basic and Diluted Earnings Per Share  Earnings per share is calculated in accordance with the Statement of financial accounting standards No. 128 (SFAS No. 128), Earnings per share. SFAS No. 128 superseded Accounting Principles Board Opinion No.15 (APB 15). Net income (loss) per share for all periods presented has been restated to reflect the adoption of SFAS No. 128. Basic net income (loss) per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Basic and diluted earnings (loss) per share were $(0.07) and $0.04 for the years ended December 31, 2006 and 2005 respectively.   F-11   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Long-Lived Assets  The Company has adopted Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS 144), which addresses financial accounting and reporting for the impairment or disposal of long-lived assets and supersedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of, and the accounting and reporting provisions of APB Opinion No. 30, Reporting the Results of Operations for a Disposal of a Segment of a Business. The Company periodically evaluates the carrying value of long-lived assets to be held and used in accordance with SFAS 144. SFAS 144 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair market value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair market values are reduced for the cost of disposal. Based on its review, the Company believes that, as of December 31, 2006 there were no significant impairments of its long-lived assets.  Recent Accounting Pronouncements  In February 2006, FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments. SFAS No. 155 amends SFAS No 133, Accounting for Derivative Instruments and Hedging Activities, and SFAF No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.  SFAS No. 155, permits fair value remeasurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation, clarifies which interest-only strips and principal-only strips are not subject to the requirements of SFAS No. 133, establishes a requirement to evaluate interest in securitized financial assets to identify interests that are freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation, clarifies that concentrations of credit risk in the form of subordination are not embedded derivatives, and amends SFAS No. 140 to eliminate the prohibition on the qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another derivative financial instrument.  This statement is effective for all financial instruments acquired or issued after the beginning of the Companys first fiscal year that begins after September 15, 2006.  In March 2006 FASB issued SFAS 156 Accounting for Servicing of Financial Assets this Statement amends FASB Statement No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities, with respect to the accounting for separately recognized servicing assets and servicing liabilities. This Statement:  1. Requires an entity to recognize a servicing asset or servicing liability each time it undertakes an obligation to service a financial asset by entering into a servicing contract. 2. Requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, if practicable. 3. Permits an entity to choose Amortization method or  Fair value measurement method for each class of separately recognized servicing assets and servicing liabilities: 4. At its initial adoption, permits a one-time reclassification of available-for-sale securities to trading securities by entities with recognized servicing rights, without calling into question the treatment of other available-for-sale securities under Statement 115, provided that the available-for-sale securities are identified in some manner as offsetting the entitys exposure to changes in fair value of servicing assets or servicing liabilities that a servicer elects to subsequently measure at fair value.  F-12   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006    5. Requires separate presentation of servicing assets and servicing liabilities subsequently measured at fair value in the statement of financial position and additional disclosures for all separately recognized servicing assets and servicing liabilities.  This Statement is effective as of the beginning of the Companys first fiscal year that begins after September 15, 2006. Management believes that this statement will not have a significant impact on the consolidated financial statements.  In September 2006, FASB issued SFAS 157 Fair Value Measurements. This Statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. This Statement applies under other accounting pronouncements that require or permit fair value measurements, the Board having previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute. Accordingly, this Statement does not require any new fair value measurements. However, for some entities, the application of this Statement will change current practice. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The management is currently evaluating the effect of this pronouncement on financial statements.  In September 2006, FASB issued SFAS 158 Employers Accounting for Defined Benefit Pension and Other Postretirement Plansan amendment of FASB Statements No. 87, 88, 106, and 132(R) This Statement improves financial reporting by requiring an employer to recognize the over funded or under funded status of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not-for-profit organization. This Statement also improves financial reporting by requiring an employer to measure the funded status of a plan as of the date of its year-end statement of financial position, with limited exceptions. An employer with publicly traded equity securities is required to initially recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after December 15, 2006. An employer without publicly traded equity securities is required to recognize the funded status of a defined benefit postretirement plan and to provide the required disclosures as of the end of the fiscal year ending after June 15, 2007. However, an employer without publicly traded equity securities is required to disclose the following information in the notes to financial statements for a fiscal year ending after December 15, 2006, but before June 16, 2007, unless it has applied the recognition provisions of this Statement in preparing those financial statements:  a. A brief description of the provisions of this Statement b. The date that adoption is required c. The date the employer plans to adopt the recognition provisions of this Statement, if earlier.  The requirement to measure plan assets and benefit obligations as of the date of the employers fiscal year-end statement of financial position is effective for fiscal years ending after December 15, 2008. The management is currently evaluating the effect of this pronouncement on financial statements.   F-13   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   In February 2007, FASB issued FASB Statement No. 159, The Fair Value Option for Financial Assets and Financial Liabilities. FAS 159 is effective for fiscal years beginning after November 15, 2007. Early adoption is permitted subject to specific requirements outlined in the new Statement. Therefore, calendar-year companies may be able to adopt FAS 159 for their first quarter 2007 financial statements.  The new Statement allows entities to choose, at specified election dates, to measure eligible financial assets and liabilities at fair value that are not otherwise required to be measured at fair value. If a company elects the fair value option for an eligible item, changes in that item's fair value in subsequent reporting periods must be recognized in current earnings. FAS 159 also establishes presentation and disclosure requirements designed to draw comparison between entities that elect different measurement attributes for similar assets and liabilities.  Note C  OTHER RECEIVABLES As of December 31, 2006, the Company had $348,974 other receivables, including $90,564 advance to employees, $238,997 receivables from students, and $19,382 from outside companies and tax receivables.  These receivables were interest free, unsecured, and due on demand.  Note D -  RECEIVABLE FROM RELATED PARTIES  Receivables from related parties amounted to $17,492,067 as of December 31, 2006. The receivables from related parties include a receivable of $17,457,966 from a shareholder of the Company and $34,101 from an affiliate owned by common shareholders. The receivable from related parties are interest free, unsecured, all current, and due on demand.  Note E  OTHER PAYABLES  As of December 31, 2006 the balance of other payables amounted to $229,056. These other payables represented amounts payable to students and  were interest free, unsecured, and due on demand.  Note FPREPAID EXPENSES  As of December 31, 2006, prepaid expenses comprised of advances to vendors of $46,719. The Company made advance payments to vendors before delivery, of goods & services. The deposits are settled upon completion of goods inspection and rendering of services  Note G  ACCOUNTS PAYABLE AND ACCRUED EXPENSES  The Companys accounts payable and accrued expenses amounted to $4,477,480 as of December 31, 2006. The accounts payable and accrued expenses are summarized as follows:  US$Accrued Consulting fee$3,250,000Accounts payable to vendors932,343Accrued salaries and wages271,466Other accruals23,671$4,477,480  F-14   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Accrued consulting fee are accrued for consulting services incurred from October to December, 2006. The total consulting expenses were $3,250,000 and were accrued as of December 31, 2006. In January 2007, the accrued consulting fee was paid off by issuance of 5,000,000 shares of common stock valued at $3,250,000.  Note H  DEFERRED REVENUE  The company has recorded tuition and accommodation fee received in advance as deferred revenue. Deferred revenue amounted to $447,838 as of December 31, 2006.  Note I - LOANS PAYABLE  The Company has loans payable amounting to $15,384,000 as of December 31, 2006. The loans are secured by a certificate deposit for $1,923,000.  The loans payable at December 31, 2006 comprised of the following:  Loan payable to a bank in China, interest at
5.022% per annum, due by March 14, 2007$1,282,000Loan payable to a bank in China, interest at
5.265% per annum, due by July 11, 20072,564,000Loan payable to a bank in China, interest at
8.64% per annum, due by August 10, 2007705,100Loan payable to a bank in China, interest at
8.64% per annum, due by August 15, 20071,474,300Loan payable to a bank in China, interest at
7.56% per annum, due by December 24, 20071,025,600Loan payable to a bank in China, interest at
5.67% per annum, due by September 18, 20085,256,200Loan payable to a bank in China, interest at
5.67% per annum, due by September 18, 20092,435,800Total15,384,000Current portion7,692,000Long-term portion$7,692,000    F-15   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Note J  DIVIDEND PAYABLE  Blue Tassel allocated a part of its retained earnings as dividend payable to its shareholder, Suzhou Mong Long Industry Ltd., as approved per the shareholders meeting. The dividend payable amounted to $3,509,241 as of December 31, 2005. This dividend was approved by the Shareholders before the acquisition of Blue Tassel and its parent company by the public entity. There was no dividends declared or distributed to shareholders of the year ended December 31, 2006.  Note K - INCOME TAXES  The Company is governed by the Income Tax Laws of the PRC. Pursuant to the PRC relevant laws and regulations and tax law, schools are exempt from paying of income tax. Hence the Company enjoys the preferential policies for exemption from enterprise income tax.  Note L  COMMITMENTS  Operating Lease  The Company leases building space from Suzhou Ming Long Industry Ltd, one of the shareholders of the Company. The term of the lease agreement is 10 year started from September 1, 2004 to August 31, 2014. The Company  pays the rent based on the Suzhou house rental market status. The school has recorded rent expenses of $30,185 and $29,760 for the years ended December 31, 2006 and 2005, respectively, and shown as contributed capital in the accompanying financial statements..  Note M  STATUTORY COMMON WELFARE FUND  As stipulated by the Company Law of the Peoples Republic of China (PRC), net income after taxation can only be distributed as dividends after appropriation has been made for the following:  i. Making up cumulative prior years losses, if any;  ii. Allocations to the Statutory surplus reserve of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Companys registered capital;  iii. Allocations of 5-10% of income after tax, as determined under PRC accounting rules and regulations, to the Companys Statutory common welfare fund, which is established for the purpose of providing employee facilities and other collective benefits to the Companys employees; and  iv. Allocations to the discretionary surplus reserve, if approved in the stockholders general meeting.  The Company established a reserve for the annual contribution of 5% of net income to the welfare fund in 2006. The amount included in the statutory reserve for the year ended December 31, 2006 amounted to $136,537.   F-16   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Note N  STATUTORY RESERVE  In accordance with the Chinese Company Law, the company has allocated 10% of its annual net income, amounting $273,075 as statutory reserve for the year ended December 31, 2006.  Note O  STOCKHOLDERS EQUITY  On September 5, 2006, the Companys Board of Directors and the then holder of a majority of the Companys then outstanding Common Stock approved the implementation of a one-for-one-hundred (1-for-100) reverse stock split (the Reverse Stock Split) of the outstanding shares of the Companys Common Stock.  The Reverse Stock Spit became effective on October 11, 2006, whereby each 100 shares of the Company's issued and outstanding Common Stock was automatically combined into and became one share of Common Stock, thereby reducing the 125,000,000 of shares of Common Stock which were outstanding on a fully diluted basis immediately prior to the effectiveness of the Reverse Stock Split (which consisted of (i) 100,000,000 shares of Common Stock and (ii) 25,000,000 shares of Common Stock automatically issuable upon effectiveness of the Reverse Stock Split in respect of the 25,000,000 shares of Preferred Stock then outstanding) to approximately 1,250,000 shares of Common Stock.  Upon the effectiveness of the Reverse Stock Split, all issued and outstanding shares of Preferred Stock of the Company automatically converted on a one-for-one basis into shares of Common Stock of the Company.  Pursuant to the Companys Certificate of Designation, if the Company effected a reverse stock split, the number of shares of Common Stock issuable upon conversion of the Preferred Stock immediately prior to such reverse stock split are to be proportionately decreased.  Therefore, the issued and outstanding shares of Preferred Stock converted into 250,000 shares of Common Stock.  The effect of the reverse split has been reflected retroactively in the financial statements.  On October 12, 2006 the Company and the shareholders of Brighter International Limited , a Nevada Corporation,  entered into a Share Exchange Agreement in which the Company  acquired 100% of BILs outstanding common stock.  Under the Share Exchange Agreement the shareholders of BIL received 55,250,000 newly issued common shares of the company.   As a result of the Exchange Agreement, Brighter International Limites became a wholly-owned subsidiary of China Ivy School, Inc.  As a result of the exchange agreement, the reorganization was treated as an acquisition by the accounting acquiree that is being accounted for as a recapitalization and as a reverse merger by the legal acquirer for accounting purposes. Pursuant to the recapitalization, all capital stock shares and amounts and per share data have been retroactively restated. Accordingly, the financial statements include the following:  (1) The balance sheet consists of the net assets of the accounting acquirer at historical cost and the net assets of the legal acquirer at historical cost.  (2) The statements of operations include the operations of the accounting acquirer for the period presented and the operations of the legal acquirer from the date of the merger.   F-17   CHINA IVY SCHOOL, INC. AND SUBSIDIARIES (Formerly Claremont Technologies Corp.) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2006   Note P   OTHER COMPREHENSIVE INCOME  Balances of related after-tax components comprising accumulated other comprehensive income (loss), included in stockholders equity, at December 31, 2005 and December 31, 2006 are as follows:  ForeignCurrencyTranslationAdjustmentBalance at December 31, 2005$109,728Change in 200644,571Balance at December 31, 2006$154,299  Note Q  CURRENT VULNERABILITY DUE TO RISK FACTORS  The Companys operations are carried out in the PRC. Accordingly, the Companys business, financial condition and results of operations may be influenced by the political, economic and legal environments in the PRC, by the general state of the PRCs economy. The Companys business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods of taxation, among other things.  Note R  SUBSEQUENT EVENTS  On January 8, 2007, the Company changed its name from Claremont Technologies Corp. to China Ivy School, Inc., by filing a Certificate of Amendment to Articles of Incorporation with the Secretary of State of Nevada.  On January 22, 2007, the Company awarded eight individual consultants 5,000,000 shares of common stocks valued at $0.65 per share or $3,250,000 for consultant services that were provided under the China Ivy School, Inc. 2007 Equity Incentive Plan.  The consultants were engaged to provide various services to the Company during the period from October 13, 2006 to December 31, 2006 for market research, strategic planning and to identify investment bankers.  The consulting fees of $3,250,000 were accrued as of December 31, 2006.   F-18