| o | REGISTRATION      STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|---|------------------------------------------------------------------------------------------------------------|

| x | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|----------------------------------------------------------------------------------------------------|

| o | SHELL      COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE      ACT OF 1934 |
|---|-------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

| Title of Each Class                                                                        |   | Name of Each Exchange On Which Registered |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|
| American Depositary Shares, each      representingthree      Ordinary Shares, par value US$0.01 per share |   | The      NASDAQ Stock Market LLC (NASDAQ Global Market)                 |
| Ordinary      Shares, par value US$0.01 par value per share                                               |   | The      NASDAQ Stock Market LLC (NASDAQ GlobalMarket)*                 |

| * | Application made for listing, not      for trading, but only in connection with the registration of the American      Depositary Shares pursuant to requirements of the Securities and Exchange      Commission. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| U.S.      GAAP þ | International      Financial Reporting Standards                 | Other      o |
|-----------------------|------------------------------------------------------------------|--------------|
|                  | as      issued by the International Accounting Standards Board o |         |

----

| INTRODUCTION                    |                                                                                   | 1      |
|---------------------------------|----------------------------------------------------------------------------------------|--------|
| FORWARD-LOOKING      STATEMENTS |                                                                                   | 2      |
|                            |                                                                                   |   |   |
| PART      I                     |                                                                                   | 4      |
| Item      1.                    | Identity      of Directors, Senior Management and Advisers                             |   | 4 |
| Item      2.                    | Offer      Statistics and Expected Timetable                                           |   | 4 |
| Item      3.                    | Key      Information                                                                   |   | 4 |
| Item      4.                    | Information      on the Company                                                        |   | 32 |
| Item      4A.              | Unresolved      Staff Comments                                                         |   | 56 |
| Item      5.                    | Operating      and Financial Review and Prospects                                      |   | 57 |
| Item      6.                    | Directors,      Senior Management and Employees                                        |   | 82 |
| Item      7.                    | Major      Shareholders and Related Party Transactions                                 |   | 90 |
| Item      8.                    | Financial      Information                                                             |   | 93 |
| Item      9.                    | The      Offering and Listing                                                          |   | 94 |
| Item      10.                   | Additional      Information                                                            |   | 95 |
| Item      11.                   | Quantitative      and Qualitative Disclosures about Market Risk                        |   | 101 |
| Item      12.                   | Description      of Securities Other than Equity Securities                            |   | 101 |
|                            |                                                                                   |   |   |
| PART      II                    |                                                                                   | 104    |
| Item      13.                   | Defaults,      Dividend Arrearages and Delinquencies                                   |   | 104 |
| Item      14.                   | Material      Modifications to the Rights of Security Holders and Use of      Proceeds |   | 104 |
| Item      15.                   | Controls      and Procedures                                                           |   | 105 |
| Item      16A.                  | Audit      Committee Financial Expert                                                  |   | 106 |
| Item      16B.                  | Code      of Ethics                                                                    |   | 107 |
| Item      16C.                  | Principal      Accountant Fees and Services                                            |   | 107 |
| Item      16D.                  | Exemptions      from the Listing Standards for Audit Committees                        |   | 107 |
| Item      16E.                  | Purchases      of Equity Securities by the Issuer and Affiliated    Purchasers         |   | 107 |
| Item      16F.                  | Change      in Registrant’s Certifying Accountant                                |   | 108 |
| Item      16G.        | Corporate      Governance                                                              |   | 109 |
|                            |                                                                                   |   |   |
| PART      III                   |                                                                                   | 109    |
| Item      17.                   | Financial      Statements                                                              |   | 109 |
| Item      18.                   | Financial      Statements                                                              |   | 109 |
| Item      19.                   | Exhibits                                                                               |   | 109 |

----

INTRODUCTION

|   | · | “we,” “us,” “our company” or      “our” refers to ChinaEdu Corporation, its predecessor entities and      subsidiaries; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “China” or “PRC” refers to the      People’s Republic of China, excluding Taiwan, Hong Kong and      Macau; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “shares,” “ordinary shares,” or      “common shares” refers to our common  shares; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | “ADSs” refers to our American      Depositary Shares, each of which represents three common shares, and      “ADRs” refers to the American Depositary Receipts that evidence our      ADSs; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “RMB” or “Renminbi” refers to the      legal currency of China; and |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | “$,” “dollars,” “US$” or “U.S.      dollars” refers to the legal currency of the United      States. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | our anticipated growth      strategies; |
|--------|--------|-----------------------------------------|

|   | · | our future business development,      results of operations and financial  condition; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | expected changes in our revenues      and certain cost and expenseitems; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | our ability to increase student      enrollments and course fees and expand program, service and product      offerings; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | competition in the language      training, test preparation, primary and secondary education, educational      content, software and other technology development and online education      markets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks associated with our      offering of new educational programs, services and products and the      expansion of our geographicreach; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks associated with our      existing development projects, including construction delays or cost      overruns with respect to our pending campus construction projects and the build out of      our learning centers network, which may increase      project costs, and the failure of the newly developed schools or learning      centers to perform as expected; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the expected increase in      expenditures on education inChina; |
|--------|--------|------------------------------------------------------------------|

|   | · | PRC laws, regulations and      policies relating to private education and providers of private      educational services, including recent changes in the government      regulatory environment related to our international curriculum programs;      and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | general economic, business and      other market conditions in the PRC and worldwide, including the ability of      the general global economy to recover timely from the current economic      downturn. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

Selected Condensed Consolidated Financial Data

----

|                                                                                                |   | Years ended December 31,    |       |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|
|                                                                                                |   | 2005                                       |       |   | 2006(1) |   |   | 2007(1) |   |   | 2008(1) |   |   | 2009(1) |   |   | 2009(1) |   |
|                                                                                                |   | RMB                                        |       |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                                                |   | (As adjusted)                         |       |   | (As adjusted) |   |   | (As adjusted) |   |   | (As adjusted) |   |   |   |   |   |   |   |
|                                                                                                |   | (In      thousands, except per share data) |       |
| Condensed      Consolidated Statement of Operations Data:                                           |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      revenue                                                                                    |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                                         |   |                                       | 98,527     |   |   |   | 156,845 |   |   |   | 202,185 |   |   |   | 255,388 |   |   |   | 285,178 |   |   |   | 41,779 |   |
| Online      tutoring programs                                                                       |   |                                       | 14,390     |   |   |   | 17,384 |   |   |   | 18,013 |   |   |   | 15,436 |   |   |   | 19,584 |   |   |   | 2,869 |   |
| Private      primary and secondary schools                                                          |   |                                       | 8,591      |   |   |   | 10,874 |   |   |   | 13,356 |   |   |   | 19,289 |   |   |   | 30,627 |   |   |   | 4,487 |   |
| International      curriculum programs                                                              |   |                                       | 4,854      |   |   |   | 28,428 |   |   |   | 31,434 |   |   |   | 27,607 |   |   |   | 19,317 |   |   |   | 2,830 |   |
| Net      revenue                                                                                    |   |                                       | 126,362    |   |   |   | 213,531 |   |   |   | 264,988 |   |   |   | 317,720 |   |   |   | 354,706 |   |   |   | 51,965 |   |
| Cost      of revenue                                                                                |   |                                       | (53,138    | ) |   |   | (80,308 | ) |   |   | (96,349 | ) |   |   | (117,733 | ) |   |   | (138,362 | ) |   |   | (20,270 | ) |
| Gross      profit                                                                                   |   |                                       | 73,224     |   |   |   | 133,223 |   |   |   | 168,639 |   |   |   | 199,987 |   |   |   | 216,344 |   |   |   | 31,695 |   |
| Operating      expenses                                                                             |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative                                                                     |   |                                       | (44,089    | ) |   |   | (48,846 | ) |   |   | (76,893 | ) |   |   | (86,908 | ) |   |   | (82,858 | ) |   |   | (12,139 | ) |
| Selling      and marketing                                                                          |   |                                       | (6,116     | ) |   |   | (12,893 | ) |   |   | (14,277 | ) |   |   | (29,851 | ) |   |   | (23,688 | ) |   |   | (3,470 | ) |
| Research      and development                                                                       |   |                                       | (11,842    | ) |   |   | (14,263 | ) |   |   | (21,021 | ) |   |   | (26,185 | ) |   |   | (30,385 | ) |   |   | (4,451 | ) |
| Goodwill      impairment                                                                            |   |                                       | —    |   |   |   | — |   |   |   | (16,192 | ) |   |   | (41,036 | ) |   |   | — |   |   |   | — |   |
| Intangible      assets impairment                                                                   |   |                                       | —    |   |   |   | — |   |   |   | — |   |   |   | (29,057 | ) |   |   | — |   |   |   | — |   |
| Total      operating expenses                                                                       |   |                                       | (62,047    | ) |   |   | (76,002 | ) |   |   | (128,383 | ) |   |   | (213,037 | ) |   |   | (136,931 | ) |   |   | (20,060 | ) |
| Income      (loss) from operations                                                                  |   |                                       | 11,177     |   |   |   | 57,221 |   |   |   | 40,256 |   |   |   | (13,050 | ) |   |   | 79,413 |   |   |   | 11,635 |   |
| Other      income                                                                                   |   |                                       | —    |   |   |   | — |   |   |   | 394 |   |   |   | 562 |   |   |   | 1,748 |   |   |   | 256 |   |
| Interest      income                                                                                |   |                                       | 1,078      |   |   |   | 1,172 |   |   |   | 4,118 |   |   |   | 10,652 |   |   |   | 4,980 |   |   |   | 730 |   |
| Interest      expense                                                                               |   |                                       | (1,242     | ) |   |   | (2,279 | ) |   |   | (2,130 | ) |   |   | (1,298 | ) |   |   | (2 | ) |   |   | — |   |
| Income      (loss) before income tax  provisions and noncontrolling      interest         |   |                                       | 11,013     |   |   |   | 56,114 |   |   |   | 42,638 |   |   |   | (3,134 | ) |   |   | 86,139 |   |   |   | 12,621 |   |
| Income      tax provisions                                                                          |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                                                             |   |                                       | 4,849      |   |   |   | 9,475 |   |   |   | 16,286 |   |   |   | 11,860 |   |   |   | 18,981 |   |   |   | 2,781 |   |
| Deferred                                                                                            |   |                                       | (855       | ) |   |   | (2,481 | ) |   |   | (1,283 | ) |   |   | (8,387 | ) |   |   | 306 |   |   |   | 45 |   |
| Total      income tax provisions                                                                    |   |                                       | 3,994      |   |   |   | 6,994 |   |   |   | 15,003 |   |   |   | 3,473 |   |   |   | 19,287 |   |   |   | 2,826 |   |
| Net      income (loss)                                                                              |   |                                       | 7,019      |   |   |   | 49,120 |   |   |   | 27,635 |   |   |   | (6,607 | ) |   |   | 66,852 |   |   |   | 9,795 |   |
| Less: net income      contributable to the noncontrolling interests(2)                              |   |                                       | 9,869      |   |   |   | 23,581 |   |   |   | 25,148 |   |   |   | 36,412 |   |   |   | 32,073 |   |   |   | 4,699 |   |
| Net      income (loss) attributable to ChinaEdu Corporation      shareholders                       |   |                                       | (2,850     | ) |   |   | 25,539 |   |   |   | 2,487 |   |   |   | (43,019 | ) |   |   | 34,779 |   |   |   | 5,096 |   |
| Net      income (loss) per share attributable to ChinaEdu Corporation      shareholders—basic |   |                                       | (0.18      | ) |   |   | 0.65 |   |   |   | 0.06 |   |   |   | (0.75 | ) |   |   | 0.71 |   |   |   | 0.104 |   |
| Net      income per preferred A share—basic                                                   |   |                                       | —    |   |   |   | 0.65 |   |   |   | 0.06 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      income per preferred B share—basic                                                   |   |                                       | —    |   |   |   | 0.65 |   |   |   | 0.06 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      income per preferred C share—basic                                                   |   |                                       | —    |   |   |   | 0.65 |   |   |   | 0.06 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      income per preferred D share—basic                                                   |   |                                       | —    |   |   |   | — |   |   |   | 0.06 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Net      income per share attributable to ChinaEdu Corporation      shareholders—diluted      |   |                                       | (0.18      | ) |   |   | 0.60 |   |   |   | 0.05 |   |   |   | (0.75 | ) |   |   | 0.66 |   |   |   | 0.097 |   |
| Net      income (loss) per ADS attributable to ChinaEdu Corporation      shareholders               |   |                                       |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic—ordinary                                                                                |   |                                       | (0.54      | ) |   |   | 1.95 |   |   |   | 0.18 |   |   |   | (2.25 | ) |   |   | 2.14 |   |   |   | 0.313 |   |
| Diluted—ordinary                                                                              |   |                                       | (0.54      | ) |   |   | 1.80 |   |   |   | 0.15 |   |   |   | (2.25 | ) |   |   | 1.99 |   |   |   | 0.291 |   |
| Weighted      average shares used in calculating ordinary basic net income (loss) per      share    |   |                                       | 16,243,736 |   |   |   | 39,209,606 |   |   |   | 42,147,170 |   |   |   | 57,679,504 |   |   |   | 48,844,606 |   |   |   | 48,844,606 |   |
| Weighted      average shares used in calculating ordinary diluted net income (loss) per      share  |   |                                       | 16,243,736 |   |   |   | 42,708,213 |   |   |   | 47,322,184 |   |   |   | 57,679,504 |   |   |   | 52,519,683 |   |   |   | 52,519,683 |   |
| Adjusted EBITDA(3)                                                                                  |   |                                       | 21,966     |   |   |   | 76,901 |   |   |   | 81,409 |   |   |   | 85,271 |   |   |   | 109,288 |   |   |   | 16,011 |   |

----

|                                                                                           |   | Years ended December 31, |    |
|------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                           |   | 2005                                    |    |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                           |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                                           |   | (In thousands)                     |    |
| Share-based      compensation expense included in:                                             |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue                                                                           |   |                                    | 369     |   |   |   | 468 |   |   |   | 346 |   |   |   | 474 |   |   |   | 489 |   |   |   | 72 |   |
| General      and administrative                                                                |   |                                    | 1,965   |   |   |   | 1,942 |   |   |   | 2,960 |   |   |   | 4,073 |   |   |   | 5,982 |   |   |   | 876 |   |
| Selling      and marketing                                                                     |   |                                    | — |   |   |   | 205 |   |   |   | 222 |   |   |   | 506 |   |   |   | 676 |   |   |   | 99 |   |
| Research      and development                                                                  |   |                                    | 44      |   |   |   | 96 |   |   |   | 115 |   |   |   | 178 |   |   |   | 269 |   |   |   | 39 |   |
| Total                                                                                          |   |                                    | 2,378   |   |   |   | 2,711 |   |   |   | 3,643 |   |   |   | 5,231 |   |   |   | 7,416 |   |   |   | 1,086 |   |
|                                                                                           |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of intangible assets acquired through business combination included      in: |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue                                                                           |   |                                    | 2,097   |   |   |   | 4,182 |   |   |   | 3,954 |   |   |   | 3,956 |   |   |   | 2,977 |   |   |   | 436 |   |
| Selling      and marketing                                                                     |   |                                    | 1,125   |   |   |   | 3,279 |   |   |   | 3,279 |   |   |   | 3,250 |   |   |   | 774 |   |   |   | 113 |   |
| Total                                                                                          |   |                                    | 3,222   |   |   |   | 7,461 |   |   |   | 7,233 |   |   |   | 7,206 |   |   |   | 3,751 |   |   |   | 549 |   |

|                                                  |   | Years ended December 31, |    |
|-------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                  |   | 2005                                    |    |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                  |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                  |   | (As adjusted)                      |    |   | (As adjusted) |   |   | (As adjusted) |   |   | (As adjusted) |   |   |   |   |   |   |   |
|                                                  |   | (In thousands)                     |    |
| Net      income (loss)                                |   |                                    | 7,019   |   |   |   | 49,120 |   |   |   | 27,635 |   |   |   | (6,607 | ) |   |   | 66,852 |   |   |   | 9,795 |   |
| Income      tax provision                             |   |                                    | 3,994   |   |   |   | 6,994 |   |   |   | 15,003 |   |   |   | 3,473 |   |   |   | 19,287 |   |   |   | 2,826 |   |
| Share-based      compensation                         |   |                                    | 2,378   |   |   |   | 2,711 |   |   |   | 3,643 |   |   |   | 5,231 |   |   |   | 7,416 |   |   |   | 1,086 |   |
| Exchange      loss                                    |   |                                    | — |   |   |   | — |   |   |   | — |   |   |   | 1,433 |   |   |   | — |   |   |   | — |   |
| Amortization                                          |   |                                    | 3,388   |   |   |   | 8,812 |   |   |   | 9,081 |   |   |   | 9,352 |   |   |   | 5,856 |   |   |   | 858 |   |
| Depreciation                                          |   |                                    | 5,023   |   |   |   | 8,157 |   |   |   | 8,206 |   |   |   | 12,212 |   |   |   | 16,603 |   |   |   | 2,432 |   |
| Interest      income and other, net                   |   |                                    | 164     |   |   |   | 1,107 |   |   |   | (2,382 | ) |   |   | (9,916 | ) |   |   | (6,726 | ) |   |   | (986 | ) |
| Goodwill      impairment                              |   |                                    | — |   |   |   | — |   |   |   | 16,192 |   |   |   | 41,036 |   |   |   | — |   |   |   | — |   |
| Intangible      assets impairment                     |   |                                    | — |   |   |   | — |   |   |   | — |   |   |   | 29,057 |   |   |   | — |   |   |   | — |   |
| Write-off      for receivables from prior shareholder |   |                                    | — |   |   |   | — |   |   |   | 4,031 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Adjusted      EBITDA(3)                               |   |                                    | 21,966  |   |   |   | 76,901 |   |   |   | 81,409 |   |   |   | 85,271 |   |   |   | 109,288 |   |   |   | 16,011 |   |

----

|                                                       |   | Years ended December 31, |    |
|------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                       |   | 2005                                    |    |   | 2006 |   |   | 2007 |   |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                       |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                       |   | (As adjusted)                      |    |   | (As adjusted) |   |   | (As adjusted) |   |   | (As adjusted) |   |   |   |   |   |   |   |
|                                                       |   | (In thousands)                     |    |
| Condensed      Consolidated Balance Sheet Data:            |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                             |   |                                    | 155,912 |   |   |   | 148,315 |   |   |   | 497,114 |   |   |   | 353,933 |   |   |   | 203,145 |   |   |   | 29,761 |   |
| Term      deposits                                         |   |                                    | — |   |   |   | 10,000 |   |   |   | 6,042 |   |   |   | 63,500 |   |   |   | 122,304 |   |   |   | 17,918 |   |
| Accounts      receivable, net                              |   |                                    | 4,813   |   |   |   | 12,578 |   |   |   | 1,238 |   |   |   | 14,854 |   |   |   | 28,334 |   |   |   | 4,151 |   |
| Amounts      due from related parties                      |   |                                    | 57,370  |   |   |   | 59,979 |   |   |   | 105,522 |   |   |   | 150,472 |   |   |   | 176,802 |   |   |   | 25,902 |   |
| Other      current assets                                  |   |                                    | 19,168  |   |   |   | 14,346 |   |   |   | 27,013 |   |   |   | 24,237 |   |   |   | 48,545 |   |   |   | 7,112 |   |
| Total      current assets                                  |   |                                    | 237,263 |   |   |   | 245,218 |   |   |   | 636,929 |   |   |   | 606,996 |   |   |   | 579,130 |   |   |   | 84,844 |   |
| Property      and equipment, net                           |   |                                    | 32,492  |   |   |   | 43,657 |   |   |   | 132,770 |   |   |   | 170,544 |   |   |   | 217,893 |   |   |   | 31,921 |   |
| Acquired      intangible assets, net                       |   |                                    | 87,889  |   |   |   | 102,836 |   |   |   | 105,852 |   |   |   | 70,377 |   |   |   | 66,621 |   |   |   | 9,760 |   |
| Goodwill                                                   |   |                                    | 61,207  |   |   |   | 76,509 |   |   |   | 73,319 |   |   |   | 38,155 |   |   |   | 38,155 |   |   |   | 5,590 |   |
| Other      long term assets                                |   |                                    | 9,557   |   |   |   | 28,990 |   |   |   | 31,198 |   |   |   | 32,608 |   |   |   | 34,493 |   |   |   | 5,054 |   |
| Total      assets                                          |   |                                    | 428,408 |   |   |   | 497,210 |   |   |   | 980,068 |   |   |   | 918,680 |   |   |   | 936,292 |   |   |   | 137,169 |   |
| Deferred      revenues                                     |   |                                    | 67,913  |   |   |   | 78,746 |   |   |   | 83,816 |   |   |   | 96,068 |   |   |   | 97,853 |   |   |   | 14,336 |   |
| Accounts      payable                                      |   |                                    | 4,393   |   |   |   | 8,413 |   |   |   | 2,773 |   |   |   | 8,530 |   |   |   | 6,467 |   |   |   | 947 |   |
| Accrued      expense and other current liabilities         |   |                                    | 20,276  |   |   |   | 21,754 |   |   |   | 42,096 |   |   |   | 51,629 |   |   |   | 68,917 |   |   |   | 10,096 |   |
| Amounts      due to related parties                        |   |                                    | 6,358   |   |   |   | 7,121 |   |   |   | 28,316 |   |   |   | 25,769 |   |   |   | 25,668 |   |   |   | 3,760 |   |
| Income      taxes payable and other taxes payable          |   |                                    | 10,641  |   |   |   | 16,712 |   |   |   | 29,121 |   |   |   | 39,925 |   |   |   | 49,289 |   |   |   | 7,221 |   |
| Acquisition      payable                                   |   |                                    | 32,125  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      current liabilities                             |   |                                    | 141,706 |   |   |   | 132,746 |   |   |   | 186,122 |   |   |   | 221,921 |   |   |   | 248,194 |   |   |   | 36,360 |   |
| Long      term debt                                        |   |                                    | — |   |   |   | — |   |   |   | 25,724 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Deferred      revenues                                     |   |                                    | 233     |   |   |   | 289 |   |   |   | 3,124 |   |   |   | 6,073 |   |   |   | 8,075 |   |   |   | 1,183 |   |
| Deferred      tax liabilities                              |   |                                    | 16,773  |   |   |   | 19,879 |   |   |   | 24,036 |   |   |   | 11,069 |   |   |   | 10,143 |   |   |   | 1,486 |   |
| Unrecognized      tax benefit                              |   |                                    | — |   |   |   | — |   |   |   | 4,332 |   |   |   | 5,473 |   |   |   | 7,727 |   |   |   | 1,132 |   |
| Convertible      notes                                     |   |                                    | 29,324  |   |   |   | 30,654 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      liabilities                                     |   |                                    | 188,036 |   |   |   | 183,568 |   |   |   | 243,338 |   |   |   | 244,536 |   |   |   | 274,139 |   |   |   | 40,161 |   |
| Total      ChinaEdu Corporation shareholders’ equity |   |                                    | 204,235 |   |   |   | 264,319 |   |   |   | 678,734 |   |   |   | 589,829 |   |   |   | 559,973 |   |   |   | 82,039 |   |
| Noncontrolling      interests (2)                          |   |                                    | 36,137  |   |   |   | 49,323 |   |   |   | 57,996 |   |   |   | 84,315 |   |   |   | 102,180 |   |   |   | 14,969 |   |
| Total      equity                                          |   |                                    | 240,372 |   |   |   | 313,642 |   |   |   | 736,730 |   |   |   | 674,144 |   |   |   | 662,153 |   |   |   | 97,008 |   |
| Total liabilities and      equity                          |   |                                    | 428,408 |   |   |   | 497,210 |   |   |   | 980,068 |   |   |   | 918,680 |   |   |   | 936,292 |   |   |   | 137,169 |   |

----

|   |   | Renminbi per U.S. Dollar Noon Buying Rate |   |
|--------|--------|-------------------------------------------------------------------------|--------|
| Period |   | Average1                                                                |   |   | High |   |   | Low |   |   | Period-End |   |
| 2005   |   | 8.1826                                                                  |   |   | 8.0702 |   |   | 8.2765 |   |   | 8.0702 |   |
| 2006   |   | 7.9579                                                                  |   |   | 7.8041 |   |   | 8.0702 |   |   | 7.8041 |   |
| 2007   |   | 7.5806                                                                  |   |   | 7.2946 |   |   | 7.8127 |   |   | 7.2946 |   |
| 2008   |   | 6.9193                                                                  |   |   | 6.7800 |   |   | 7.2946 |   |   | 6.8225 |   |
| 2009   |   | 6.8295                                                                  |   |   | 6.8176 |   |   | 6.8470 |   |   | 6.8259 |   |

----

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| Previous      Six Months          |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| December      2009                |   | 6.8275 |   |   | 6.8244 |   |   | 6.8299 |   |   | 6.8259 |   |
| January,      2010                |   | 6.8269 |   |   | 6.8258 |   |   | 6.8295 |   |   | 6.8268 |   |
| February,      2010               |   | 6.8285 |   |   | 6.8258 |   |   | 6.8330 |   |   | 6.8258 |   |
| March,      2010                  |   | 6.8262 |   |   | 6.8254 |   |   | 6.8270 |   |   | 6.8258 |   |
| April,      2010                  |   | 6.8256 |   |   | 6.8229 |   |   | 6.8275 |   |   | 6.8247 |   |
| May,      2010                    |   | 6.8275 |   |   | 6.8245 |   |   | 6.8310 |   |   | 6.8305 |   |
| June,      2010 (through June 22) |   | 6.8298 |   |   | 6.8267 |   |   | 6.8323 |   |   | 6.8267 |   |

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| B. | Capitalization and      Indebtedness |
|----|--------------------------------------|

| C. | Reasons for the Offer      and Use of Proceeds |
|----|------------------------------------------------|

| D. | Risk      Factors |
|----|-------------------|

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|   | · | levying      fines and confiscating illegalincome; |
|--------|--------|----------------------------------------------------|

|   | · | restricting      or prohibiting our use of the proceeds from our initial public offering to      finance our business and operations inChina; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | requiring      us to restructure the ownership structure or operations of our Chinese      subsidiaries or Chinese affiliatedentity; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | requiring      us to discontinue all or a portion of our business;  and/or |
|--------|--------|----------------------------------------------------------------------------|

|   | · | revoking      our business licenses. |
|--------|--------|--------------------------------------|

|   | · | our      structure for this line of business, in which services are provided to our      university customers’ online degree programs by one of our Chinese      subsidiaries and affiliated entity, may be found by Chinese regulatory      authorities to violate restrictions on entities other than universities      being responsible for online degreeprograms; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      demand for online degree programs depends on the social acceptance and      perceived attractiveness of degrees offered by these programs, which may      decline due to actual or perceived quality problems at online degree      programs and the increased availability of alternatives such as      traditional degree programs, on-the-job training and overseas      programs; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | the      universities with online degree programs have primary responsibility for      these programs and their priorities and objectives may conflict with our      own objectives of growing our revenue and profits from servicing these      programs; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | each      of the universities with online degree programs has been approved by      China’s Ministry of Education, or the MOE, to operate these programs as      part of the MOE’s pilot program for online education and there is no      assurance that the MOE will not restrict, suspend or revoke this program      in the future or that any of the currently approved universities,      including our university partners, will continue to qualify for this      program. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | · | the      online degree programs that we serve rely to a significant degree on      professors to prepare the onlinecourseware; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      international post-secondary programs rely on capable instructors within      participating colleges to take part in the training by the overseas      post-secondary institutions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      online tutoring program needs to attract tutors who are perceived to be      successful in preparing students for  examinations; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      private primary and secondary schools need to attract qualified and      experienced teachers and administrators;and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | we      need to find well-qualified native English speakers to teach in the      English language programs and the international post-secondary programs      that we support and the private primary and secondary schools operated by      our Chinese affiliated entity. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | our      ability to identify and acquire businesses on a cost-effective      basis; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | our      ability to integrate acquired personnel, operations, products and      technologies into our organizationeffectively; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to retain and motivate key personnel and to retain the customers      of the acquired businesses; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | unanticipated      problems or legal liabilities of the acquired businesses;    and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | tax      or accounting issues relating to the acquired  businesses. |
|--------|--------|---------------------------------------------------------------------|

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----

----

----

----

----

----

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|   | · | loans      by us to any of our Chinese subsidiaries, each of which is a FIE, to      finance their activities cannot exceed the difference between the total      investment amount and the registered capital of the Chinese subsidiary,      each as set forth in its articles of association, and must be registered      with the SAFE; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | loans      by us to our Chinese affiliated entity or its subsidiaries must be      approved by the relevant government authorities including, the SAFE and      the NDRC, and must also be registered with the  SAFE. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

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|   | · | actual      or anticipated fluctuations in our quarterly operating      results; |
|--------|--------|----------------------------------------------------------------------------------|

|   | · | announcements      of new services by us or ourcompetitors; |
|--------|--------|-------------------------------------------------------------|

|   | · | changes      in financial estimates by securitiesanalysts; |
|--------|--------|------------------------------------------------------------|

|   | · | changes      in the business, regulatory and other conditions in the education services      market in China; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | significant      acquisitions, strategic partnerships, collaborative alliances or capital      commitments by us or ourcompetitors; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | additions      or departures of key personnel; |
|--------|--------|------------------------------------------------|

|   | · | termination      or release of lock-up or other transfer restrictions on our outstanding      ADSs or ordinary shares or sales of additional ordinary shares or      ADSs; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | potential      litigation or regulatoryinvestigations; |
|--------|--------|--------------------------------------------------------|

|   | · | general      economic or political conditions inChina; |
|--------|--------|--------------------------------------------------------|

|   | · | price      fluctuations of publicly traded securities of other China-based companies      engaging in similar businesses; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | general      economic, business and other market conditions in the global      economy. |
|--------|--------|-----------------------------------------------------------------------------------------|

----

|   | · | to      recognize or enforce against us judgments of courts of the United States      based on the civil liability provisions of U.S. securities laws;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | to      impose liabilities against us, in original actions brought in the Cayman      Islands, based on certain civil liability provisions of      U.S. securities laws that are penal in  nature. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| A. | History and      Development of the Company |
|----|---------------------------------------------|

| B. | Business      Overview |
|----|------------------------|

----

|   | · | Market      leadership and proven track record.    We are      one of the market leaders in the education services market due to our      early mover advantage, proven track record and delivery of innovative      services that are in high demand. We believe we are the leading company in      China providing comprehensive services, technology and operating support      to universities offering online degree programs, in terms of both number      of institutions served and the number of enrollments that we support. Our      experienced management team, established technology platform and      capabilities, operational expertise and content portfolio allow us to      effectively attract and retain customers as well as identify new      opportunities in the private education  market. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Substantial      knowledge of our customers and the Chinese education market.    Through      our ten-year operating history, early efforts to develop an online      technology platform and comprehensive service offering for Chinese      universities, we have acquired substantial knowledge of the Chinese      education market and the needs of its consumers. As we have expanded our      service offerings, we have been able to take advantage of our market      knowledge to address additional areas in which we believe we can leverage      our experience, processes and technology to meet the needs of the market.      As a result, we have expanded our business to include the distribution and      support of international curriculum, private primary and secondary schools      and an online tutoringplatform. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provider      of premier services for online degree programs.    We      believe our products position us as an attractive choice for both academic      institutions and students for online degree programs. We have provided      comprehensive services and support to universities for their online degree      programs since 1999. Our service model and technology platform have proven      to be successful, as shown by our leading position in terms of number of      institutions served. In addition, we have developed a wide array of      proprietary courseware, from which we currently tailor over 1,550 courses      for our university partners based on their different requirements. Many of      these courses can be used as a basis to develop similar courses when we      add new university customers, thus enabling us to benefit from economies      of scale. We use this service model with our reliable technology      platforms, comprehensive library of courseware and operational and      marketing expertise to help universities achieve their academic and      financial goals. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Experienced      management team with proven track record.    We have      an experienced management team with an average of over 11 years of      experience in either the education services industry or the online      services industry. We have recruited strong leaders with proven skills to      serve in key positions within our management team, and our team includes      members with substantial experience in education, technology, marketing      and finance. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Expand the      penetration of our online degree program      services.    We plan to take advantage of our      established leadership position and track record to expand the penetration      of our services to online degree programs by increasing the number of      universities that use our online degree program services and by helping      our existing university customers to increase enrollment in their      programs. We are actively targeting new universities to become our      partners for their online education programs. In addition, we plan to help      our existing university customers to increase enrollment in their online      programs by helping them to expand their course offerings, to assist them      in improving their marketing and recruitment initiatives and to assist      them in reducing student attrition. We are also continually working to      enhance our technology platform to improve the students’ online learning      experience. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Expand our      network of learning centers.    To strengthen      our ability to assist our customers’ online degree programs in recruiting      students and improving student service quality, we established our      learning centers network in 2008. Currently we have 65 learning centers.      We believe that the opening of these learning centers will allow us to      significantly enhance our brand recognition, increase access to potential      students for online degree programs and enhance profitability. We also are      actively seeking to establish strategic relationships with universities      that currently are not our online degree program customers to provide our      learning center services to their online degree  programs. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Improve our      online tutoring business.    We continue to      focus our growth in the development and improvement of our online tutoring      business.  Leveraging on our strength in sales channels,      development of products and offerings and improvements in customer      service, we believe we will be able to expand our customer base and gain      additional traction and market share in the fragmented online tutoring      business. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Develop our      interactive learning community.    In an effort      to provide an integrated platform for all of our services and offerings we      started to develop our interactive learning community in      2009.  Our learning community will combine both educational      content management system and social networking services in creating an      interactive vertical learning platform for students, teachers and      educational institutions. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Continue      to strengthen our brand name and our reputation.    We are      focused on continuing to build our brand name and our reputation among our      existing customers, as well as among other Chinese and foreign education      institutions. We believe that building our brand and reputation will allow      us to attract new schools and students to our current business lines. We      are also increasing awareness of our online tutoring programs and learning      centers by increasing advertising to continue to build brand recognition.      We are taking part in a wide range of activities to promote our brand and      reputation, such as participating in conferences, sponsoring industry      events and publishing articles in education trade      journals. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Develop      new products and services to further enhance the learning experience of      existing students and attract new students.    We plan      to increase our research and development efforts to develop new products      and services with respect to our online tutoring and online degree      programs to introduce more robust online learning programs, to enhance the      students’ learning experience and to improve their sense of community. We      further plan to enhance our online tutoring programs by recruiting      additional high quality teachers, expanding the type of programs offered      and incorporating more interactive technology to increase student      retention and student usage rates for our  programs. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Pursue      strategic acquisitions.    During      the past several years, we have made strategic acquisitions to broaden our      service offerings and to expand into additional segments of the Chinese      educational market. We will continue to consider and seek acquisition      opportunities that are complementary to our existing lines of business or      that can further expand the services that we can provide to our      customers. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Type      of Structure                                            |         | Number      of University Partners |
|-------------------------------------------------------------------|--------------|------------------------------------|
| Collaborative      Alliances                                      |         | 8                                  |   | (including      3 waiting for approval) |
| Radio      and TV Collaborative Alliances                         |         | 2                                  |   |   |
| Long-Term      Contractual Service Agreements                     |         | 4                                  |   |   |
| Licensing      of Online Education Technology Platform Agreements |         | 3                                  |   | (including      2 waiting for approval) |
| Recruiting      and Technology Agreements                         |         | 18                                 |   | (including      6 which we have established collaborative alliances or entered into      long-term contractual service agreements) |
| Total                                                             |    | 29                                 |    |   |

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----

----

----

Regulation

----

----

----

----

----

----

|   | · | requiring that the foreign party      in any Chinese-foreign cooperation in operating schools be a qualified      foreign educationalinstitution; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | requiring regulatory approval for      any Chinese-foreign cooperation in operating    schools; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | prohibiting foreign investment in      schools providing compulsory education (that is, the first grade through      the ninth grade, or primary school and junior high school education);      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | restricting foreign investment in      educational websites. |
|--------|--------|--------------------------------------------------------------|

----

----

----

|   | · | Beijing      Hongcheng Liye Technology Co., Ltd., or Hongcheng Liye, our wholly owned      subsidiary, which has established collaborative alliances with five      Chinese universities to provide services to the universities for the      establishment, operation, and expansion of their online degree programs.      These collaborative alliances are majority owned subsidiaries of Hongcheng      Liye. Hongcheng Liye’s collaborative alliance partners for online degree      programs are Beijing Language and Culture University, China Agricultural      University, Dongbei University of Finance and Economics, Central      University of Finance and Economics and Beijing Forestry University.      Hongcheng Liye also provides our learning-based products and services,      which include our English language training, online tutoring services and      post-secondary vocational educational programs. Our service revenue from      Hongcheng Liye in aggregate accounted for 43.3% of our net revenue in      2009; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Hongcheng      Technology Development Co., Ltd., or Hongcheng Technology, our wholly      owned subsidiary, which has established four collaborative alliances with      Chongqing University, Shanghai University of Finance &      Economics,  GRTU and FRTU to provide services for the      establishment, operation, and expansion of these universities’ online      degree programs. Hongcheng Technology also provides services to four other      universities, Jiangnan University,  Nanjing University, Jiangxi      Normal University and Huazhong Normal University for their online degree      programs; and Hongcheng Technology also operates 23 learning centers      providing recruiting service to 16 universities. Our service revenue from      Hongcheng Technology in aggregate accounted for 18.7% of our net revenue      in 2009. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | CMR      Web Learning Co., Ltd., or CMR Web, our 70% owned subsidiary, which      established a collaborative alliance with Renmin University of China to      provide services to Renmin University of China for the operation of its      online degree program. The remaining 30% of CMR Web is owned by Rendashiji      Technology Development Co., Ltd., a wholly owned subsidiary of Renmin      University of China. Our service revenue from Renmin University of China      accounted for 20.5% of our net revenue in2009. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | we      effectively control our Chinese affiliated entity and its respective      subsidiaries; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | substantially      all of the economic benefits of our Chinese affiliated entity are      transferred to us; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | our      Chinese subsidiaries or their respective designees have an exclusive      option to purchase all or substantially all of the equity interests in our      Chinese affiliated entity, to the extent permitted by Chinese      law. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                                                |   | Date of incorporationor acquisition |   | Percentage oflegal ownership |   | Placeof incorporation |
|-------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|----------------------------------------|--------|----------------------------|
| Subsidiaries      of the Company                                                    |   |                                               |   |                                   |   |                       |
| CMR      Web-learning Co., Ltd. ("CMR Web")                                         |   | July      29, 1999                                 |   | 70%                                    |   | PRC                        |
| Hongcheng      Technology Development Co., Ltd. ("Hongcheng Technology")            |   | July      31, 2000                                 |   | 100%                                   |   | PRC                        |
| Beijing      Xuezhi Times Education Science Co., Ltd. ("BeijingXuezhi")             |   | October      18, 2001                              |   | 100%                                   |   | PRC                        |
| Zhong      Nongda Networks Development Co., Ltd. ("Zhongnongda    Networks")        |   | October      30, 2001                              |   | 55%                                    |   | PRC                        |
| Beijing      Hongcheng Liye Technology Co., Ltd. ("Hongcheng Liye")                 |   | April      15, 2003                                |   | 100%                                   |   | PRC                        |
| Dalian      Dongcai Technology Co., Ltd. ("Dongcai")                                |   | June      4, 2003                                  |   | 70%                                    |   | PRC                        |
| Beijing      WITT Education Consultant Management Co., Ltd. ("WITT      Education") |   | July      4, 2003                                  |   | 100%                                   |   | PRC                        |
| BJ-WITT      EDU MAN. LTD. ("BJ-WITT")                                              |   | July      4, 2003                                  |   | 100%                                   |   | BVI                        |

----

| Name                                                                                           |   | Date of incorporationor acquisition |   | Percentage oflegal ownership |   | Placeof incorporation |
|------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|--------|----------------------------------------|--------|----------------------------|
| Chongqing      Chongda Yuanxing Co., Ltd. ("Chongda")                                          |   | December      24, 2003                             |   | 51%                                    |   | PRC                        |
| Beijing      BCIT Science and Education Management Consulting Limited ("Beijing      BCIT")    |   | January      13, 2005                              |   | 100%                                   |   | PRC                        |
| Beijing      WITT Science Co., Ltd. ("WITT Science")                                           |   | December      26, 2005                             |   | 100%                                   |   | PRC                        |
| Beijing      Gotop Education Co., Ltd. ("Gotop Hongcheng")                                     |   | December      26, 2005                             |   | 100%                                   |   | PRC                        |
| Beijing      BCIT Science and Education Management Consulting Limited      ("BJ-BCIT")         |   | February      10, 2006                             |   | 100%                                   |   | BVI                        |
| Beijing      Distance Education Technology Co., Ltd. ("Yuancheng      Education")              |   | March      31, 2006                                |   | 65%                                    |   | PRC                        |
| Tianjin      Gaotuo Hongcheng Education Technology Co., Ltd. ("Tianjin Gaotuo      Hongcheng") |   | June      26, 2006                                 |   | 100%                                   |   | PRC                        |
| Beijing      Beiyuda Education Technology Co., Ltd. ("Beiyuda")                                |   | September      26, 2006                            |   | 51%                                    |   | PRC                        |
| Beijing      Mingdaoyuan Technology Co., Ltd. ("Beijing Mingdao")                              |   | March      27, 2007                                |   | 51%                                    |   | PRC                        |
| Shanghai      Shangcai Education Technology Co., Ltd. ("Shanghai    Shangcai")                 |   | April      18, 2008                                |   | 51%                                    |   | PRC                        |
| Dongcai      Online Training Center ("Dongcai Online")                                         |   | July      10, 2008                                 |   | 70%                                    |   | PRC                        |
| Beijing      Zhonglin Technology Co., Ltd. ("Zhonglin")                                        |   | November      3, 2008                              |   | 51%                                    |   | PRC                        |
| Guangxi      Hongcheng Times Technology Development Co., Ltd. ("Guangxi      Hongcheng")       |   | February      10, 2009                             |   | 51%                                    |   | PRC                        |
| Fuzhou      Haojiaoshi Distance Education Service Co., Ltd. ("Fuzhou Good      Teacher")       |   | December      7, 2009                              |   | 51%                                    |   | PRC                        |
|                                                                                           |   |                                               |   |                                   |   |                       |
| Variable      Interest Entity of the Company                                                   |   |                                               |   |                                   |   |                       |
| Beijing      Hongcheng Education Technology Co., Ltd. ("Hongcheng      Education")             |   | March      7, 2005                                 |   | N/A*                                   |   | PRC                        |
|                                                                                           |   |                                               |   |                                   |   |                       |
| Subsidiaries      of Variable Interest Entity                                                  |   |                                               |   |                                   |   |                       |
| Beijing      Gotop Electronic Science Co., Ltd. ("Gotop      Electronic") (1)                  |   | November      29, 1995                             |   | N/A                                    |   | PRC                        |
| Xiandai      Xingye Network Technology Co., Ltd.  ("Xiandai Technology")      (1)    |   | November      7, 2000                              |   | N/A                                    |   | PRC                        |
| Pingdingshan      Wellent Bilingual School ("Pingdingshan") (1)                                |   | September      3, 2002                             |   | N/A                                    |   | PRC                        |
| Anqing      Foreign Language Middle School ("Anqing Foreign Language") (1)                     |   | August      2, 2004                                |   | N/A                                    |   | PRC                        |
| Jingzhou      Tianchang Investment Co., Ltd. ("Tianchang") (2)                                 |   | September      6, 2005                             |   | N/A                                    |   | PRC                        |
| Jingzhou      Middle School South Campus ("South Campus") (3)                                  |   | December      28, 2005                             |   | N/A                                    |   | PRC                        |
| Beijing      Hongcheng YoYo Technology Co., Ltd. ("Hongcheng YoYo") (1)                        |   | November      3, 2009                              |   | N/A                                    |   | PRC                        |

----

----

| Property Address                                                                                                                                                        |   | Use ofProperty |   | Owned/Leased |   | ApproximateSize (m2) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------------|--------|---------------------------|
| Suites      501 and 503, Tower A, Jin Feng He Office Building, No.      8 Xinjiekouwai Road, Beijing                                                                         |   | Office              |   | Leased       |   | 99                        |
| Suite      416-2, F4, Tower C, Hui Long Sem, International      Enterprise Technology Park, Beijing Economic      and Technology Zone, 18 South West Ring      Road, Beijing |   | Office              |   | Leased       |   | 50                        |
| Suite      205, F2, Tower B, Hui Long Sem, International      Enterprise Hatch Park, Beijing Economic      and Technology Zone, No. 14 Zhong He      Jie, Beijing            |   | Office              |   | Leased       |   | 68                        |
| 17      F, 19F Renda Technology and Education Centre,      No. 59, Zhongguancun Road, Haidian District,      Beijing                                                         |   | Office              |   | Leased       |   | 225                       |
| Qingshanwan      Rest House, Wuxi, Jiangsu                                                                                                                                   |   | Office              |   | Leased       |   | 45                        |
| F2,      Gao’an Building, No. 107 Gao’an Road, Shanghai                                                                                                          |   | Office              |   | Leased       |   | 30                        |
| R303,      No. 1 Suite, No. 2 Building, Shangdijiayuan, Beijing                                                                                                              |   | Office              |   | Leased       |   | 126                       |
| R0107,      Tower 2, Songzhuang Town, Songjiazhuang, Fengtai  District,      Beijing                                                                               |   | Office              |   | Owned        |   | 136                       |
| R      809, Tower C, No. 9, Shangdi Sanjie, Haidian      District, Beijing                                                                                                   |   | Office              |   | Leased       |   | 90                        |
| R201,      No. 10, Xinghuo Road, Science Town, Fengtai      District, Beijing                                                                                                |   | Office              |   | Leased       |   | 11                        |
| No.5,      Jinnan Road, Jinzhou District, Jingzhou, Hubei                                                                                                                    |   | Office              |   | Leased       |   | 400                       |
| F2,      F4, No. 83, Shabei Street, Technology Square, Chongqing                                                                                                             |   | Office              |   | Leased       |   | 630                       |
| Northeast      corner, Cross of Qingyuan Road and Qianjiang Road, Anqing,      Anhui                                                                                         |   | School              |   | Owned        |   | 159,119                   |
| No.      22, Guanyuemiao Street, Anqing, Anhui(1)                                                                                                                            |   | School              |   | Leased       |   | 2,500                     |
| Northwest      corner, Cross of Nanhuan Road and Yingdu Road, Jingzhou,    Hubei                                                                                             |   | School              |   | Owned        |   | 191,865                   |
| C809,      C810, C811, C812, Tower C, No. 9, Shangdi Sanjie, Haidian District,      Beijing                                                                                  |   | Office              |   | Owned        |   | 1,349                     |
| R3,      F2, No.2-3, Qixianling Xuezijie, Gaoxinyuan District, Dalian,      Liaoning                                                                                         |   | Office              |   | Owned        |   | 413                       |
| Headquarters—4th      Floor-A, GeHua Building, No. 1 QinglongHutong, Dongcheng District,      Beijing                                                                  |   | Office              |   | Owned        |   | 3,450                     |

----

| Property Address |   | Use ofProperty |   | Owned/Leased |   | ApproximateSize (m2) |
|-----------------------|--------|---------------------|--------|--------------|--------|---------------------------|

| R630,      Tower 1, No.1, Furong South Road, Tianxin District, Changsha,      Hunan                    |   | Office    |   | Owned  |   | 167   |
|--------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|--------|-------|
| R307,      F3, Tower A, No.1, Zhuzhai North Road, Jinshui District, Zhengzhou,      Henan              |   | Office    |   | Owned  |   | 73    |
| R402,      Tower 10, Guanting Square, Huilongguan Town, Changping District,      Beijing               |   | Office    |   | Owned  |   | 122   |
| No.2000,      Huashan Road, Xuhui District, Shanghai                                                   |   | Office    |   | Leased |   | 328   |
| F1,      F7, Ximatai Building, No.193, Jiefang Road, Xuzhou,Jiangsu                                    |   | Office    |   | Leased |   | 430   |
| F6,      Jinluan Building, No.101, Zhongshan South Road, Nanjing,      Jiangsu                         |   | Office    |   | Leased |   | 470   |
| R601,      602, 603, No.66, Gongyuan Road, Changzhou, Jiangsu                                          |   | Office    |   | Leased |   | 300   |
| F11,      Longshi Center, No.2, Guangzhou Road, Nanjing, Jiangsu                                       |   | Office    |   | Leased |   | 433   |
| R609,      R610, No.151, Yangyu Alley, Suzhou, Jiangsu                                                 |   | Office    |   | Leased |   | 170   |
| R1303,      No.6, Dasha East Road, Huangpu District, Guangzhou,    Guangdong                           |   | Office    |   | Leased |   | 45    |
| R2,      F1, Greatwall Building, No.62, Zhongguancun East Road, Haidian District,      Beijing         |   | Office    |   | Leased |   | 333   |
| No.7,      South Business Room, Cangwu Community, Jinpu District, Lianyungang,      Jiangsu            |   | Office    |   | Leased |   | 85    |
| F4,      No.285, Qiannan Middle Road, Nantong, Jiangsu                                                 |   | Office    |   | Leased |   | 600   |
| No.150,      Renmin Road, Jiangbei District, Ningbo, Zhejiang                                          |   | Office    |   | Leased |   | 110   |
| G8,      G9, F1, Xinfuxiong Building, Yuexiu District, Guangzhou,      Guangdong                       |   | Office    |   | Leased |   | 51    |
| No.1596,      Ziyou Road, Changchun, Jilin                                                             |   | Office    |   | Leased |   | 40    |
| No.653,      Suofeiya Warehouse, Wanziying, Heizhuanghu Village, Chaoyang District,      Beijing       |   | Warehouse |   | Leased |   | 104   |
| R1608,      No.11, Maliandao Road, Xuanwu District, Beijing                                            |   | Office    |   | Leased |   | 35    |
| R6088,      Tower 1, No.2, Hengfu Middle Road, Science City, Fengtai District,      Beijing            |   | Office    |   | Leased |   | 34    |
| Zhanhe      South Road, Pingdingshan, Henan                                                            |   | School    |   | Owned  |   | 7,848 |
| 7F,      Lawyer Building, No.392, Nanmenwai Road, Nankai District,      Tianjin                        |   | Office    |   | Leased |   | 528   |
| R715,      716, 717 Jiyumingdu, No.299, Hongdu North Road, Qingshanhu District,      Nanchang, Jiangxi |   | Office    |   | Owned  |   | 120   |
| R106,      F1, Wanda square, Luguyinhe Business Zone, Shijingshan District,      Beijing               |   | Office    |   | Owned  |   | 190   |
| Printing      Factory Yard, Coal industry Press, Shaoyaoju, Chaoyang District,      Beijing            |   | Office    |   | Owned  |   | 1,100 |
| N411,      Gongyuanguoji Plaza, Wenchang West Road, Yangzhou, Jiangsu                                  |   | Office    |   | Leased |   | 171   |
| No.160,      Beijing North Road, Huaian, Jiangsu                                                       |   | Office    |   | Leased |   | 160   |
| N176-8,      Xingfu South Road, Suqian, Jiangsu                                                        |   | Office    |   | Leased |   | 210   |
| Room      508, F5, Shengshitianxi Plaza, No.81, Qingyang Road Nanchang District,      Wuxi             |   | Office    |   | Leased |   | 242   |
| Tower      C, F11, Huaxing Building, No.45, Zhongshan East Road, Zhenjiang,      Jiangsu               |   | Office    |   | Leased |   | 190   |
| F14,      No.80, Road Wenyi, Xihu District, Hangzhou, Zhejiang                                         |   | Office    |   | Leased |   | 90    |
| No.149,      Zhongshan East Road Jiaojiang District, Taizhou, Zhejiang                                 |   | Office    |   | Leased |   | 201   |
| F1,      City Library, No.26, Yulong East Road, Yancheng, Jiangsu                                      |   | Office    |   | Leased |   | 70    |
| F2,      8th Building Company, No.321, Hailing South Road, Taizhou,      Jiangsu                       |   | Office    |   | Leased |   | 60    |

----

----

| A. | Operating      Results |
|----|------------------------|

----

----

|                                       |   | Years ended December 31,           |    |
|--------------------------------------------|--------|---------------------------------------------------|---------|
|                                       |   | 2007                                              |    |   | 2008 |   |   | 2009 |   |
|                                       |   | RMB                                               |    |   | % of netrevenue |   |   | RMB |   |   | % of netrevenue |   |   | RMB |   |   | US$ |   |   | % of netrevenue |   |
|                                       |   | (In thousands, except percentages) |    |
| Net      revenue:                          |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                |   |                                              | 202,185 |   |   |   | 76.3 | % |   |   | 255,388 |   |   |   | 80.4 | % |   |   | 285,178 |   |   |   | 41,779 |   |   |   | 80.4 | % |
| Online      tutoring programs              |   |                                              | 18,013  |   |   |   | 6.8 | % |   |   | 15,436 |   |   |   | 4.8 | % |   |   | 19,584 |   |   |   | 2,869 |   |   |   | 5.5 | % |
| Private      primary and secondary schools |   |                                              | 13,356  |   |   |   | 5.0 | % |   |   | 19,289 |   |   |   | 6.1 | % |   |   | 30,627 |   |   |   | 4,487 |   |   |   | 8.6 | % |
| International      curriculum programs     |   |                                              | 31,434  |   |   |   | 11.9 | % |   |   | 27,607 |   |   |   | 8.7 | % |   |   | 19,317 |   |   |   | 2,830 |   |   |   | 5.5 | % |
| Total                                      |   |                                              | 264,988 |   |   |   | 100.0 | % |   |   | 317,720 |   |   |   | 100.0 | % |   |   | 354,706 |   |   |   | 51,965 |   |   |   | 100.0 | % |

----

----

|                                       |   | Years ended December 31,           |   |
|--------------------------------------------|--------|---------------------------------------------------|--------|
|                                       |   | 2007                                              |   |   | 2008 |   |   | 2009 |   |
|                                       |   | RMB                                               |   |   | % of netrevenue |   |   | RMB |   |   | % of netrevenue |   |   | RMB |   |   | US$ |   |   | % of netrevenue |   |
|                                       |   | (In thousands, except percentages) |   |
| Cost      of revenue:                      |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                |   |                                              | 58,027 |   |   |   | 21.9 | % |   |   | 76,224 |   |   |   | 24.0 | % |   |   | 95,428 |   |   |   | 13,980 |   |   |   | 26.9 | % |
| Online      tutoring programs              |   |                                              | 3,875  |   |   |   | 1.5 | % |   |   | 4,017 |   |   |   | 1.3 | % |   |   | 5,713 |   |   |   | 837 |   |   |   | 1.6 | % |
| Private      primary and secondary schools |   |                                              | 10,944 |   |   |   | 4.1 | % |   |   | 17,572 |   |   |   | 5.5 | % |   |   | 26,109 |   |   |   | 3,825 |   |   |   | 7.4 | % |
| International      curriculum programs     |   |                                              | 23,503 |   |   |   | 8.9 | % |   |   | 19,920 |   |   |   | 6.3 | % |   |   | 11,112 |   |   |   | 1,628 |   |   |   | 3.1 | % |
| Total                                      |   |                                              | 96,349 |   |   |   | 36.4 | % |   |   | 117,733 |   |   |   | 37.1 | % |   |   | 138,362 |   |   |   | 20,270 |   |   |   | 39.0 | % |

----

|                              |   | Years ended December 31,           |    |
|-----------------------------------|--------|---------------------------------------------------|---------|
|                              |   | 2007                                              |    |   | 2008 |   |   | 2009 |   |
|                              |   | RMB                                               |    |   | % of netrevenue |   |   | RMB |   |   | % of netrevenue |   |   | RMB |   |   | US$ |   |   | % of netrevenue |   |
|                              |   | (In thousands, except percentages) |    |
| Operating      expenses           |   |                                              |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative   |   |                                              | 76,893  |   |   |   | 29.0 | % |   |   | 86,908 |   |   |   | 27.4 | % |   |   | 82,858 |   |   |   | 12,139 |   |   |   | 23.4 | % |
| Selling      and marketing        |   |                                              | 14,277  |   |   |   | 5.4 | % |   |   | 29,851 |   |   |   | 9.4 | % |   |   | 23,688 |   |   |   | 3,470 |   |   |   | 6.7 | % |
| Research      and development     |   |                                              | 21,021  |   |   |   | 7.9 | % |   |   | 26,185 |   |   |   | 8.2 | % |   |   | 30,385 |   |   |   | 4,451 |   |   |   | 8.5 | % |
| Goodwill      impairment          |   |                                              | 16,192  |   |   |   | 6.1 | % |   |   | 41,036 |   |   |   | 12.9 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Intangible      assets impairment |   |                                              | — |   |   |   | — |   |   |   | 29,057 |   |   |   | 9.2 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                             |   |                                              | 128,383 |   |   |   | 48.4 | % |   |   | 213,037 |   |   |   | 67.1 | % |   |   | 136,931 |   |   |   | 20,060 |   |   |   | 38.6 | % |

----

|                                    |   | Years ended December 31, |   |
|-----------------------------------------|--------|-----------------------------------------|--------|
|                                    |   | 2007                                    |   |   | 2008 |   |   | 2009 |   |
|                                    |   | RMB                                     |   |   | % of netrevenue |   |   | RMB |   |   | % of netrevenue |   |   | RMB |   |   | US$ |   |   | % of netrevenue |   |
|                                    |   | (In      thousands, except percentages) |   |
| Share-based      compensation expenses: |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue                    |   |                                    | 346    |   |   |   | 0.1 | % |   |   | 474 |   |   |   | 0.15 | % |   |   | 489 |   |   |   | 72 |   |   |   | 0.14 | % |
| General      and administrative         |   |                                    | 2,960  |   |   |   | 1.1 | % |   |   | 4,073 |   |   |   | 1.28 | % |   |   | 5,982 |   |   |   | 876 |   |   |   | 1.69 | % |
| Selling      and marketing              |   |                                    | 222    |   |   |   | 0.08 | % |   |   | 506 |   |   |   | 0.16 | % |   |   | 676 |   |   |   | 99 |   |   |   | 0.19 | % |
| Research      and development           |   |                                    | 115    |   |   |   | 0.04 | % |   |   | 178 |   |   |   | 0.06 | % |   |   | 269 |   |   |   | 39 |   |   |   | 0.07 | % |
| Total                                   |   |                                    | 3,643  |   |   |   | 1.3 | % |   |   | 5,231 |   |   |   | 1.65 | % |   |   | 7,416 |   |   |   | 1,086 |   |   |   | 2.09 | % |

----

| PRC entities                      |   | 2007   |   |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | 2011   |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMR      Web(1)                   |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Technology(1)      |   |   | 15.0   | %      |   |   | 25.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Liye(1)            |   |   | 7.5    | %      |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Education(1)       |   |   | 0.0    | %      |   |   | 7.5    | %      |   |   | 7.5    | %      |   |   | 7.5    | % |   |   | 15.0 | % |
| Beijing      Xuezhi               |   |   | 7.5    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| WITT      Education               |   |   | 7.5    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| Zhongnongda      Network (1) |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Beijing      Mingdao              |   |   | 0.0    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| Beiyuda(1)                        |   |   | 0.0    | %      |   |   | 0.0    | %      |   |   | 0.0    | %      |   |   | 7.5    | % |   |   | 15.0 | % |
| Dongcai(1)                        |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Chongda                           |   |   | 0.0    | %      |   |   | 12.5   | %      |   |   | 12.5   | %      |   |   | 12.5   | % |   |   | 25.0 | % |
| Gotop      Hongcheng (1)     |   |   | 33.0   | %      |   |   | 0.0    | %      |   |   | 7.5    | %      |   |   | 7.5    | % |   |   | 7.5 | % |

----

----

----

----

|                                               |   | 2007   |   |   | 2008   |   |   | 2009   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |   |   |   |
| Option      granted or modified to employees:      |   |   |   |   |   |   |   |   |   |
| Weighted      average risk-free interest rate      |   |   | 4.45   | %      |   |   | 2.62   | %      |   |   | 2.19 | % |
| Weighted      average expected option life (years) |   |   | 5.0    |   |   |   | 6.0    |   |   |   | 5.3 |   |
| Weighted      average volatility rate              |   |   | 44.1   | %      |   |   | 46.6   | %      |   |   | 49.4 | % |
| Weighted      average dividend yield               |   |   | -      |   |   |   | -      |   |   |   | - |   |

----

----

|   | · | The      revenue growth for each reporting units is projected based on discrete      five year revenue forecasts. For the year 2010-2014, the CAGR of the three      reporting units are approximately 10%, 13% and 5% for the online degree      programs, online tutoring programs and the international curriculum      programs, respectively. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      the projection periods, the cost of revenues as a percentage of revenues      is expected to remain stable, except for the international curriculum      programs with a lower margin in the year2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Operating      expenses, including selling expenses, R&D expenses and general and      administrative expenses, as a percentage of sales is expected to remain      stable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | To      maintain normal operations, capital expenditures are estimated to be      around 5%, 1% and 1% of revenue for the three reporting units,      respectively. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      working capital requirement is estimated based on main accounts turnover      days. |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | A      perpetual growth rate after 2014 is assumed to be at 3% per year for the      three reporting units. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | The      weighted average cost of capital, or WACC, used in the calculation is 20%,      26.5% and 24% for the three reporting units,  respectively. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                           |   | Years      ended December 31,               |    |
|--------------------------------------------------------------------------------|--------|---------------------------------------------|---------|
|                                                                           |   | 2007(As      adjusted)                      |    |   | 2008(As      adjusted) |   |   | 2009 |   |
|                                                                           |   | RMB                                         |    |   | %      of netrevenue |   |   | RMB |   |   | %      of netrevenue |   |   | RMB |   |   | US$ |   |   | %      of netrevenue |   |
|                                                                           |   | (In      thousands, except for percentages) |    |
| Net      revenue:                                                              |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                    |   |                                        | 202,185 |   |   |   | 76.3 | % |   |   | 255,388 |   |   |   | 80.4 | % |   |   | 285,178 |   |   |   | 41,779 |   |   |   | 80.4 | % |
| Online      tutoring programs                                                  |   |                                        | 18,013  |   |   |   | 6.8 | % |   |   | 15,436 |   |   |   | 4.8 | % |   |   | 19,584 |   |   |   | 2,869 |   |   |   | 5.5 | % |
| Private      primary and secondary schools                                     |   |                                        | 13,356  |   |   |   | 5.0 | % |   |   | 19,289 |   |   |   | 6.1 | % |   |   | 30,627 |   |   |   | 4,487 |   |   |   | 8.6 | % |
| International      curriculum programs                                         |   |                                        | 31,434  |   |   |   | 11.9 | % |   |   | 27,607 |   |   |   | 8.7 | % |   |   | 19,317 |   |   |   | 2,830 |   |   |   | 5.5 | % |
| Total      net revenue                                                         |   |                                        | 264,988 |   |   |   | 100.0 | % |   |   | 317,720 |   |   |   | 100 | % |   |   | 354,706 |   |   |   | 51,965 |   |   |   | 100 | % |
| Cost      of revenue:                                                          |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                    |   |                                        | 58,027  |   |   |   | 21.9 | % |   |   | 76,224 |   |   |   | 24.0 | % |   |   | 95,428 |   |   |   | 13,980 |   |   |   | 26.9 | % |
| Online      tutoring programs                                                  |   |                                        | 3,875   |   |   |   | 1.5 | % |   |   | 4,017 |   |   |   | 1.3 | % |   |   | 5,713 |   |   |   | 837 |   |   |   | 1.6 | % |
| Private      primary and secondary schools                                     |   |                                        | 10,944  |   |   |   | 4.1 | % |   |   | 17,572 |   |   |   | 5.5 | % |   |   | 26,109 |   |   |   | 3,825 |   |   |   | 7.4 | % |
| International      curriculum programs                                         |   |                                        | 23,503  |   |   |   | 8.9 | % |   |   | 19,920 |   |   |   | 6.3 | % |   |   | 11,112 |   |   |   | 1,628 |   |   |   | 3.1 | % |
| Total      cost of revenue                                                     |   |                                        | 96,349  |   |   |   | 36.4 | % |   |   | 117,733 |   |   |   | 37.1 | % |   |   | 138,362 |   |   |   | 20,270 |   |   |   | 39.0 | % |
| Gross      profit:                                                             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                    |   |                                        | 144,158 |   |   |   | 54.4 | % |   |   | 179,164 |   |   |   | 56.4 | % |   |   | 189,750 |   |   |   | 27,799 |   |   |   | 53.5 | % |
| Online      tutoring programs                                                  |   |                                        | 14,138  |   |   |   | 5.3 | % |   |   | 11,419 |   |   |   | 3.6 | % |   |   | 13,871 |   |   |   | 2,032 |   |   |   | 3.9 | % |
| Private      primary and secondary schools                                     |   |                                        | 2,412   |   |   |   | 0.9 | % |   |   | 1,717 |   |   |   | 0.5 | % |   |   | 4,518 |   |   |   | 662 |   |   |   | 1.2 | % |
| International      curriculum programs                                         |   |                                        | 7,931   |   |   |   | 3.0 | % |   |   | 7,687 |   |   |   | 2.4 | % |   |   | 8,205 |   |   |   | 1,202 |   |   |   | 2.4 | % |
| Total      gross profit                                                        |   |                                        | 168,639 |   |   |   | 63.6 | % |   |   | 199,987 |   |   |   | 62.9 | % |   |   | 216,344 |   |   |   | 31,695 |   |   |   | 61.0 | % |
| Gross      profit margin:                                                      |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                    |   |                                        | 71.3    | % |   |   | — |   |   |   | 70.2 | % |   |   | — |   |   |   | 66.5 | % |   |   | 66.5 | % |   |   | — |   |
| Online      tutoring programs                                                  |   |                                        | 78.5    | % |   |   | — |   |   |   | 74 | % |   |   | — |   |   |   | 70.8 | % |   |   | 70.8 | % |   |   | — |   |
| Private      primary and secondary schools                                     |   |                                        | 18.1    | % |   |   | — |   |   |   | 8.9 | % |   |   | — |   |   |   | 14.8 | % |   |   | 14.8 | % |   |   | — |   |
| International      curriculum programs                                         |   |                                        | 25.2    | % |   |   | — |   |   |   | 27.8 | % |   |   | — |   |   |   | 42.5 | % |   |   | 42.5 | % |   |   | — |   |
| Total      gross profit margin                                                 |   |                                        | 63.6    | % |   |   | — |   |   |   | 62.9 | % |   |   | — |   |   |   | 61.0 | % |   |   | 61.0 | % |   |   | — |   |
| Operating      expenses:                                                       |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative                                                |   |                                        | 76,893  |   |   |   | 29.0 | % |   |   | 86,908 |   |   |   | 27.4 | % |   |   | 82,858 |   |   |   | 12,139 |   |   |   | 23.4 | % |
| Selling      and marketing                                                     |   |                                        | 14,277  |   |   |   | 5.4 | % |   |   | 29,851 |   |   |   | 9.4 | % |   |   | 23,688 |   |   |   | 3,470 |   |   |   | 6.7 | % |
| Research      and development                                                  |   |                                        | 21,021  |   |   |   | 7.9 | % |   |   | 26,185 |   |   |   | 8.2 | % |   |   | 30,385 |   |   |   | 4,451 |   |   |   | 8.5 | % |
| Goodwill      impairment                                                       |   |                                        | 16,192  |   |   |   | 6.1 | % |   |   | 41,036 |   |   |   | 12.9 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Intangible      assets impairment                                              |   |                                        | — |   |   |   | — |   |   |   | 29,057 |   |   |   | 9.2 | % |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      operating expenses                                                  |   |                                        | 128,383 |   |   |   | 48.4 | % |   |   | 213,037 |   |   |   | 67.1 | % |   |   | 136,931 |   |   |   | 20,060 |   |   |   | 38.6 | % |
| Income      (loss) from operations                                             |   |                                        | 40,256  |   |   |   | 15.2 | % |   |   | (13,050 | ) |   |   | (4.2 | )% |   |   | 79,413 |   |   |   | 11,635 |   |   |   | 22.4 | % |
| Operating      margin                                                          |   |                                        | 15.2    | % |   |   |   |   |   |   | (4.2 | )% |   |   | — |   |   |   | 22.4 | % |   |   | 22.4 | % |   |   |   |   |
| Other      income                                                              |   |                                        | 394     |   |   |   | 0.1 | % |   |   | 562 |   |   |   | 0.2 | % |   |   | 1,748 |   |   |   | 256 |   |   |   | 0.5 | % |
| Interest      income                                                           |   |                                        | 4,118   |   |   |   | 1.6 | % |   |   | 10,652 |   |   |   | 3.4 | % |   |   | 4,980 |   |   |   | 730 |   |   |   | 1.4 | % |
| Interest      expense                                                          |   |                                        | (2,130  | ) |   |   | (0.8 | )% |   |   | (1,298 | ) |   |   | (0.4 | )% |   |   | (2 | ) |   |   | — |   |   |   | — |   |
| Income (loss) before      income tax provisions and noncontrolling interest(1) |   |                                        | 42,638  |   |   |   | 16.1 | % |   |   | (3,134 | ) |   |   | (1.0 | )% |   |   | 86,139 |   |   |   | 12,621 |   |   |   | 24.3 | % |
| Income      tax provisions                                                     |   |                                        | 15,003  |   |   |   | 5.7 | % |   |   | 3,473 |   |   |   | 1.1 | % |   |   | 19,287 |   |   |   | 2,826 |   |   |   | 5.5 | % |
| Net      income (loss)                                                         |   |                                        | 27,635  |   |   |   | 10.4 | % |   |   | (6,607 | ) |   |   | (2.1 | )% |   |   | 66,852 |   |   |   | 9,795 |   |   |   | 18.8 | % |
|  Less:      net income contributable to the noncontrolling interests      |   |                                        | 25,148  |   |   |   | 9.5 | % |   |   | 36,412 |   |   |   | 11.4 | % |   |   | 32,073 |   |   |   | 4,699 |   |   |   | 9.0 | % |
| Net      income (loss) attributable to ChinaEdu Corporation      shareholders  |   |                                        | 2,487   |   |   |   | 0.9 | % |   |   | (43,019 | ) |   |   | (13.5 | )% |   |   | 34,779 |   |   |   | 5,096 |   |   |   | 9.8 | % |

----

----

----

----

----

| B. | Liquidity and Capital      Resources |
|----|--------------------------------------|

----

|                                                     |   | Years ended December 31, |
|----------------------------------------------------------|--------|-----------------------------------------|
|                                                     |   | 2007                                    |   |   | 2008 |   |   | 2009 |
|                                                     |   | RMB                                     |   |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                     |   | (In      thousands)                     |
| Net      cash (used in) provided by operating activities |   |                                    | 80,932 |   |   |   | 54,547 |   |   |   | 83,420 |   |   |   | 12,224 |   |
| Net      cash (used in) investing activities             |   |                                    | (93,704 | ) |   |   | (110,325 | ) |   |   | (149,068 | ) |   |   | (21,839 | ) |
| Net      cash (used in) provided by financing activities |   |                                    | 366,501 |   |   |   | (68,221 | ) |   |   | (85,454 | ) |   |   | (12,518 | ) |
| Effect      of exchange rate changes                     |   |                                    | (4,930 | ) |   |   | (19,182 | ) |   |   | 312 |   |   |   | 43 |   |
| Net      changes in cash and cash equivalents            |   |                                    | 348,799 |   |   |   | (143,181 | ) |   |   | (150,790 | ) |   |   | (22,090 | ) |
| Cash      and cash equivalents at beginning of period    |   |                                    | 148,315 |   |   |   | 497,114 |   |   |   | 353,933 |   |   |   | 51,851 |   |
| Cash      and cash equivalents at end of period          |   |                                    | 497,114 |   |   |   | 353,933 |   |   |   | 203,143 |   |   |   | 29,761 |   |

----

| C. | Research and      Development, Patents and Licenses,etc. |
|----|----------------------------------------------------------|

----

| D. | Trend      Information |
|----|------------------------|

----

| E. | Off-Balance Sheet      Arrangements |
|----|-------------------------------------|

| F. | Tabular Disclosure of      Contractual Obligations |
|----|----------------------------------------------------|

|                                                                  |   | Payment Due by December 31 |   |
|-----------------------------------------------------------------------|--------|------------------------------------------------|--------|
|                                                                  |   | Total                                          |   |   | 2010 |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014 |   |   | Thereafter |   |
|                                                                  |   | (In      RMB thousands)                        |   |
| Operating      lease obligations                                      |   |                                           | 15,571 |   |   |   | 7,041 |   |   |   | 4,017 |   |   |   | 2,684 |   |   |   | 1,124 |   |   |   | 705 |   |   |   | — |   |
| Funding      obligations to university partners                       |   |                                           | 1,000  |   |   |   | 1,000 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Facility fees to a      middle school(1)                              |   |                                           | 17,800 |   |   |   | 1,000 |   |   |   | 1,200 |   |   |   | 1,200 |   |   |   | 1,200 |   |   |   | 1,200 |   |   |   | 12,000 |   |
| Capital obligations      for private primary and secondary schools(2) |   |                                           | 75,834 |   |   |   | 11,082 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Unrecognized tax      benefit(3)                                      |   |                                           | 7,727  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |

----

| G. | Safe      Harbor |
|----|------------------|

|   | · | our      anticipated growth strategies; |
|--------|--------|-----------------------------------------|

----

|   | · | our      future business development, results of operations and financial      condition; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | expected      changes in our revenues and certain cost and expense  items; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | our      ability to increase student enrollments and course fees and expand      program, service and productofferings; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | competition      in the language training, test preparation, primary and secondary      education, educational content, software and other technology development      and online education markets; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | risks      associated with our offering of new educational programs, services and      products and the expansion of our geographic  reach; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      expected increase in expenditures on education in China;    and |
|--------|--------|--------------------------------------------------------------------------|

|   | · | PRC      laws, regulations and policies relating to private education and providers      of private educational services, including recent changes in the      government regulatory environment related to our international curriculum      programs; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | general      economic, business and other market conditions in the PRC and worldwide,      including the ability of the general global economy to recover timely from      the current economic downturn. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name               |         | Age |         | Positions                                            |
|--------------------|--------------|-----|--------------|------------------------------------------------------|
| Julia      Huang   |         | 41  |         | Chairman,      Chief Executive Officer               |
| Shawn      Ding    |         | 45  |         | Director,      President and Chief Operating Officer |
| Zonglian      Gu   |         | 54  |         | Director                                             |
| Samuel      Yen    |         | 38  |         | Director                                             |
| Min      Fan       |         | 44  |         | Director                                             |
| Amol      Shah     |         | 35  |         | Director                                             |
| Tianwen      Liu   |         | 47  |         | Director                                             |
| Lily      Liu      |         | 34  |         | Chief      Financial Officer                         |
| Changqing      Xie |         | 46  |         | Vice      President                                  |
| Wen      Liu       |         | 40  |         | Vice      President                                  |
| Lingling      Chen |    | 36  |    | Vice      President                                  |

----

Tianwen Liuwas elected as a director of our company in September 2008. Mr. Liu isthe Chairman and Chief Executive Officer of iSoftStone Information ServiceCorporation. Mr. Liu founded iSoftStone, one of the fastest growing IToutsourcing companies in China. He has over 20 years of experience in the ITsector. Prior to iSoftStone, Mr. Liu co-founded AsiaEC.com in 1999, and led theeffort to build the company from the ground up and grow it to become China'slargest on-line office supply and services provider. Prior to AsiaEC.com, Mr.Liu served as the General Manager of Siemens Business Services and SiemensNixdorf Information Technologies from 1996-1999, where he was responsible for ITconsulting, system integration, and outsourcing businesses in China. Beforethat, Mr. Liu worked for several consulting and IT companies in the U.S.,including Bechtel and DEC. Mr. Liu holds a MBA from Massachusetts Institute ofTechnology, as well as a Masters degree in Electrical Engineering from theUniversity of Massachusetts.

----

----

| Name                |         | Ordinary SharesUnderlying Option Grant |         | Exercise Price($/share) |         | Expiration Date                         |
|---------------------|--------------|-------------------------------------------------------|--------------|------------------------------|--------------|----------------------------------------------|
| Julia      Huang(1) |         | 2,108,280                                             |         | Vary      from 1.09 to 1.85  |         | Vary      from March, 2014 to May, 2019      |
| Shawn      Ding(2)  |         | 2,208,280                                             |         | Vary      from 0.86 to 1.85  |         | Vary      from March, 2014 to May, 2019      |
| Zhonglian      Gu   |         | *                                                     |         | Vary      from 0.50 to 1.26  |         | Vary      from August, 2013 to April, 2017   |
| Tianwen      Liu    |         | *                                                     |         | 1.56                         |         | September,      2018                         |
| Samuel      Yen     |         | *                                                     |         | 1.80                         |         | December,      2017                          |
| Min      Fan        |         | *                                                     |         | 1.80                         |         | December,      2017                          |
| Lily      Liu(3)    |         | *                                                     |         | Vary      from 1.27 to 1.80  |         | Vary      from October, 2018 to May, 2019    |
| Changqing      Xie  |         | *                                                     |         | Vary      from 0.86 to 1.80  |         | Vary      from December, 2014 to March, 2018 |
| Wen      Liu        |         | *                                                     |         | 1.85                         |         | March,      2016                             |
| Lingling      Chen  |    | *                                                     |    | Vary      from 1.26 to 1.80  |    | Vary      from August, 2015 to May,2019      |

----

----

|   | · | the appointment, evaluation,      compensation, oversight and termination of the work of our independent      registered public accounting firm (including the resolution of      disagreements between our management and the independent registered public      accounting firm regarding financial  reporting); |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ensuring that it receives from      our independent registered public accounting firm a formal written      statement attesting to the registered public accounting firm’s      independence and describing all relationships between our independent      registered public accounting firm andus; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | pre-approving both audit and      non-audit services, including tax services, to be provided by our      independent registered public accounting firm in accordance with NASDAQ      rules; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing our annual audited      financial statements and, if deemed appropriate by the audit committee,      other publicly disclosed financial  information; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing with our independent      registered public accounting firm all critical accounting policies and      practices to be used by us in preparing our financial statements, all      alternative treatments of financial information within U.S. GAAP, and      other material communications between our independent registered public      accounting firm andmanagement; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing our policies with      respect to risk assessment and risk  management; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | reviewing, with management and      counsel, any legal matters that may have a material impact on us and any      material reports or inquiries from regulatory or governmental agencies;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | ensuring that we have established      procedures for the receipt, retention and treatment of complaints      regarding accounting, internal accounting controls, auditing matters or      potential violations of law, and the confidential, anonymous submission by      our employees of concerns regarding questionable accounting or auditing      matters or potential violations oflaw. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approving and overseeing the      total compensation package for our  executives; |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | reviewing and making      recommendations to the board with respect to the compensation of our      directors; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | reviewing and approving corporate      goals and objectives relevant to the compensation of our chief executive      officer, evaluating the performance of our chief executive officer in      light of those goals and objectives, and setting the compensation level of      our chief executive officer based on this    evaluation; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing the results of, and      procedures for, the evaluation of the performance of other executive      officers; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing periodically and making      recommendations to the board regarding any long-term incentive      compensation or equity plans, programs or similar arrangements, and      administering these plans; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing and making      recommendations to the board regarding all new employment, consulting,      retirement and severance agreements and arrangements proposed for our      executives; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | selecting peer groups of      companies to be used for purposes of determining competitive compensation      packages. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

----

|   | · | selecting and recommending to the      board nominees for election or re-election to the board;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | reviewing annually with the board      the current composition of the board with regards to characteristics such      as independence, skills, experience, age and availability of service to      us. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | supervising and directing the      business and affairs of our company in the interest, and for the benefit,      of our shareholders in order to enhance shareholder value over the long      term; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | exercising its business judgment      to act in a manner which it reasonably believes to be in the best      interests of our company and shareholders consistent with its fiduciary      duties; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | reviewing and, where appropriate,      approving our major strategic, financial and business objectives, plans      and actions; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | establishing policies and      principles for the selection, and possible succession planning, of      directors, the chief executive officer and other senior management      officers; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | convening shareholders’ annual      general meetings and reporting its work to shareholders at such      meetings; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | declaring dividends and      distributions; |
|--------|--------|---------------------------------------------|

|   | · | appointing officers and      determining the term of office of the  officers; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | exercising the borrowing powers      of our company and mortgaging the property of our company;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | approving the transfer of shares      in our company, including the registering of such shares in our share      register. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

----

|                                |   | Employees |   |   | Percentage |   |
|-------------------------------------|--------|-----------|--------|--------|------------|--------|
| Operations      and program support |   |      | 968    |   |       |   | 60.38 | % |
| Management      and administration  |   |      | 356    |   |       |   | 22.21 | % |
| Research      and development       |   |      | 188    |   |       |   | 11.73 | % |
| Selling      and marketing          |   |      | 91     |   |       |   | 5.68 | % |
| Total      number of employees      |   |      | 1,603  |   |       |   | 100.0 | % |

|   | · | each      person known to us to own beneficially more than 5% of our ordinary      shares; and |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | each      of our directors and executiveofficers. |
|--------|--------|---------------------------------------------------|

----

|                                                              |   | Ordinary Shares Beneficially Owned |       |
|-------------------------------------------------------------------|--------|---------------------------------------------------|------------|
|                                                              |   | Number(1)                                         |       |   |   | %(2) |          |
| Directors      and Executive Officers                             |   |                                              |       |   |   |   |   |
| Julia      Huang(3)                                               |   |                                              | 2,108,280  |   |   |   | 4.2 |   |
| Shawn      Ding(4)                                                |   |                                              | 2,208,280  |   |   |   | 4.4 |   |
| Zonglian      Gu(5)                                               |   |                                              | 1,965,000  |   |   |   | 4.1 |   |
| Amol      Shah(6)                                                 |   |                                              | 3,377,336  |   |   |   | 7.0 |   |
| Tianwen      Liu                                                  |   |                                              | *          |   |   |   | * |   |
| Samuel      Yen                                                   |   |                                              | *          |   |   |   | * |   |
| Min      Fan                                                      |   |                                              | *          |   |   |   | * |   |
| Lily      Liu(7)                                                  |   |                                              | *          |   |   |   | * |   |
| Changqing      Xie                                                |   |                                              | *          |   |   |   | * |   |
| Wen      Liu                                                      |   |                                              | *          |   |   |   | * |   |
| Lingling      Chen                                                |   |                                              | *          |   |   |   | * |   |
| All      directors and executive officers as a group (11 persons) |   |                                              | 10,379,863 |   |   |   | 19.5 |   |
|                                                              |   |                                              |       |   |   |   |   |   |
| Major      Shareholders                                           |   |                                              |       |   |   |   |   |   |
| The      McGraw-Hill Companies Inc.                               |   |                                              | 3,377,336  |   |   |   | 7.0 |   |

----

----

B.  Related PartyTransactions

----

----

Dividend Policy

----

|                                |   | Trading Price |   |
|-------------------------------------|--------|--------------------|--------|
|                                |   | High               |   |   | Low |   |
|                                |   | US$                |   |   | US$ |   |
| Annual      Highs and Lows          |   |               |   |   |   |   |
| 2007      (from December 14, 2007)  |   |               | 9.20   |   |   |   | 7.75 |   |
| 2008                                |   |               | 8.58   |   |   |   | 2.97 |   |
| 2009                                |   |               | 8.40   |   |   |   | 4.15 |   |
|                                |   |               |   |   |   |   |   |   |
| Quarterly      Highs and Lows       |   |               |   |   |   |   |   |   |
| January      1–March 31, 2008 |   |               | 8.58   |   |   |   | 6.04 |   |
| April      1-June 30, 2008          |   |               | 8.05   |   |   |   | 4.51 |   |
| July      1-September 30, 2008      |   |               | 5.00   |   |   |   | 3.50 |   |
| October      1-December 31, 2008    |   |               | 5.00   |   |   |   | 2.97 |   |
| January      1–March 31, 2009 |   |               | 6.90   |   |   |   | 4.15 |   |
| April      1-June 30, 2009          |   |               | 7.84   |   |   |   | 4.49 |   |
| July      1-September 30, 2009      |   |               | 7.85   |   |   |   | 6.40 |   |
| October      1-December 31, 2009    |   |               | 8.40   |   |   |   | 6.20 |   |
|                                |   |               |   |   |   |   |   |   |
| Monthly      Highs and Lows         |   |               |   |   |   |   |   |   |
| 2009                                |   |               |   |   |   |   |   |   |
| November                            |   |               | 8.40   |   |   |   | 7.00 |   |
| December                            |   |               | 7.55   |   |   |   | 6.20 |   |
| 2010                                |   |               |   |   |   |   |   |   |
| January                             |   |               | 8.20   |   |   |   | 7.20 |   |
| February                            |   |               | 7.65   |   |   |   | 7.09 |   |
| March                               |   |               | 8.35   |   |   |   | 6.96 |   |
| April                               |   |               | 8.15   |   |   |   | 7.50 |   |
| May                                 |   |               | 7.83   |   |   |   | 6.57 |   |
| June      (through June 22)         |   |               | 7.15   |   |   |   | 6.61 |   |

----

Cayman Islands Taxation

----

|   | · | a dealer in securities or      currencies; |
|--------|--------|--------------------------------------------|

|   | · | a trader in securities that      elects to use a mark-to-market method of accounting for your securities      holdings; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | a bank, insurance company or      other financial institution; |
|--------|--------|----------------------------------------------------------------|

|   | · | a regulated investment company or      real estate investmenttrust; |
|--------|--------|---------------------------------------------------------------------|

|   | · | a tax-exempt      organization; |
|--------|--------|---------------------------------|

|   | · | a holder liable for alternative      minimum tax; |
|--------|--------|---------------------------------------------------|

|   | · | a holder that actually or      constructively owns 10% or more by voting power or value of our shares or      ADSs; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | a holder that holds equity shares      or ADSs as part of a straddle, hedging or conversion      transaction; |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | a U.S. holder whose functional      currency is not the U.S.Dollar; |
|--------|--------|---------------------------------------------------------------------|

|   | · | a U.S.      expatriate; |
|--------|--------|-------------------------|

|   | · | a holder that purchases or      otherwise acquires shares or ADSs other than through this offering;      or |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | a holder that acquired shares or      ADSs pursuant to the exercise of any employee share option or otherwise as      compensation. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a citizen or resident individual      of the United States; |
|--------|--------|-------------------------------------------------------------|

|   | · | a U.S. domestic corporation, or      other entity treated as a domestic corporation for U.S. federal income tax      purposes; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | an      estate whose income is subject to U.S. federal income tax regardless of      its source; or |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | a trust if a U.S. court can      exercise primary supervision over the trust’s administration and one or      more U.S. persons are authorized to control all substantial decisions of      the trust or if the trust has a valid election in effect under applicable      U.S. Treasury regulations to be treated as a United States      person. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | the gain is “effectively      connected” with your conduct of a trade or business in the United States,      and the gain is attributable to a permanent establishment (or in the case      of an individual, a fixed place of business) that you maintain in the      United States if that is required by an applicable income tax treaty as a      condition for subjecting you to U.S. taxation on a net income      basis; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | you are an individual, you are      present in the United States for 183 or more days in the taxable year of      the sale and certain other conditions are met;  or |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | we are or have been a “United      States real property holding corporation” for U.S. federal income tax      purposes. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | at      least 75% of our gross income for the taxable year is passive income;      or |
|--------|--------|---------------------------------------------------------------------------------------|

----

|   | · | at least 50% of the value,      determined on the basis of a quarterly average, of our assets, is      attributable to assets that produce or are held for the production of      passive income. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | any gain you realize on the sale      or other disposition of your shares or ADSs;  and |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | any excess distribution that we      make to you (generally, any distributions to you during a single taxable      year that are greater than 125% of the average annual distributions      received by you in respect of the shares or ADSs during the three      preceding taxable years or, if shorter, your holding period for the shares      or ADSs). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the gain or excess distribution      will be allocated ratably over your holding period for the shares and      ADSs; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | the amount allocated to the      taxable year in which you realized the gain or excess distribution will be      taxed as ordinary income; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the amount allocated to each      prior year in respect of which we were, or were treated as, a PFIC      generally will be taxed at the highest tax rate in effect for that year;      and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the interest charge generally      applicable to underpayments of tax will be imposed in respect of the tax      attributable to each suchyear. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | 3. | Fees      paid by our ADS holders |
|--------|----|-----------------------------------|

| Persons depositing or withdrawing shares must      pay:                                                                                                                  |   | For:   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| $5.00      (or less) per 100 ADSs (or portion of 100 ADSs)                                                                                                               |   | · | Issuance      of ADSs, including issuances resulting from a distribution of shares or      rights or other property |
|                                                                                                                                                                     |   | · | Cancellation      of ADSs for the purpose of withdrawal, including if the deposit agreement      terminates |
|                                                                                                                                                                     |   |   |   |
| $.02      (or less) per ADS                                                                                                                                              |   | · | Any      cash distribution to you |
|                                                                                                                                                                     |   |   |   |
| A      fee equivalent to the fee that would be payable if securities distributed      to you had been shares and the shares had been deposited for issuance of      ADSs |   | · | Distribution      of securities distributed to holders of deposited securities which are      distributed by the depositary to ADS holders |
|                                                                                                                                                                     |   |   |   |
| $.03      (or less) per ADSs per calendar year                                                                                                                           |   | · | Depositary      services |
|                                                                                                                                                                     |   |   |   |
| Registration      or transfer fees                                                                                                                                       |   | · | Transfer      and registration of shares on our share register to or from the name of      the depositary or its agent when you deposit or withdraw      shares |
|                                                                                                                                                                     |   |   |   |
| Expenses      of the depositary                                                                                                                                          |   | · | Cable,      telex and facsimile transmissions (when expressly provided in the deposit      agreement) |
|                                                                                                                                                                     |   | · | Converting      foreign currency to U.S.dollars |

----

| Taxes      and other governmental charges the depositary or the custodian have to pay      on any ADS or share underlying an ADS, for example, stock transfer taxes,      stamp duty or withholding taxes |   | · | As      necessary |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|
|                                                                                                                                                                                                      |   |   |              |
| Any      charges incurred by the depositary or its agents for servicing the      deposited securities                                                                                                     |   | · | As      necessary |

|   | 4. | Fees      and Payments from the Depositary toUs |
|--------|----|-------------------------------------------------|

----

|   | · | approximately      $7.4 million to develop our learning centers network, of which      approximately $2.2 million has been used as of June 22, 2010 in connection      with the opening of 65  learning  centers; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately      $5 million to expand our existing lines of business, including the funding      of new collaborative alliances with university partners, of which      approximately $1.2 million of which had been used as of June 22,      2010; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately      $1.0 million to fund our acquisition of the remaining 20% equity interest      in 101 online school, all of which was used in May  2008; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately      $11.7 million to complete the construction of the new campuses at our      Jingzhou School (Southern Campus) and Anqing School, of which approximately      $10.7 million has been used as      of June 22, 2010; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately      $3.7 million to repay the loan incurred in connection with the acquisition      of the new office building for our headquarters, which amounts were paid      in July 2008; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | approximately      $11.0 million to repurchase ordinary shares from Tiger Global, a former      majority shareholder, approximately $5.0 million to repurchase ordinary      shares according to our share repurchase plan from July 2008 to December      2009, and approximately $3.0 million to repurchase ordinary shares from      time to time through May 1,  2012 according to our share      repurchase plan. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                       |   | Years ended December 31, |    |
|----------------------------|--------|-----------------------------------------|---------|
|                       |   | 2008                                    |    |   | 2009 |   |
|                       |   | (In thousands, in RMB)   |    |
| Audit      fees(1)         |   |                                    | 5,302   |   |   |   | 6,591 |   |
| Audit-related      fees(2) |   |                                    | — |   |   |   | — |   |
| Tax      fees(3)           |   |                                    | — |   |   |   | — |   |
| All      other fees(4)     |   |                                    | — |   |   |   | — |   |

----

| (1)  |  “Audit      fees” means the aggregate fees billed for professional services rendered      by Deloitte Touche Tohmatsu CPA Ltd. for the audit of our annual financial      statements and the review of our comparative interim financial      statements. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  |  “Audit-related      fees” represents aggregate fees billed for professional services rendered      by Deloitte      Touche Tohmatsu CPA Ltd. for the assurance and related services      that are reasonably related to the performance of the audit or review of      our financial statements and are not reported under “Audit      fees.” |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  |  “Tax      fees” represents the aggregated fees billed for professional services      rendered by Deloitte      Touche Tohmatsu CPA Ltd. for tax compliance, tax advice, and tax      planning. |
|-----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | “All      other fees” comprise fees for all other services provided by Deloitte      Touche Tohmatsu CPA Ltd., other than those services covered in footnotes      (1) to (3) above. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Period                                                       |   | TotalNumber ofSharesPurchased |      |   | AveragePrice Paidper Share(US$) |   |   | TotalNumber ofSharesPurchased asPart ofPubliclyAnnouncedPlans orPrograms(2) |   |   | ApproximateDollar Value ofShares thatMay Yet BePurchasedUnderthe Plans orPrograms(2)(US$) |   |
|--------------------------------------------------------------|--------|------------------------------------|-----------|--------|-------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
| January 1,      2008 – January 31, 2008      |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| February 1,      2008 – February 28, 2008    |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| March 1,      2008 – March 31, 2008          |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| April      1, 2008 – April 30, 2008                    |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| May      1, 2008 – May 31, 2008                        |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| June 1,      2008 – June 30, 2008            |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | - |   |
| July 1,      2008 – July 31, 2008            |   |                               | 210,834   |   |                                      |   | 1.31   |                                                                                            |   |   | 210,834                                                                                                                      |   |   |   | 4,723,453 |   |
| August 1,      2008 – August 31, 2008        |   |                               | 575,010   |   |                                      |   | 1.30   |                                                                                            |   |   | 575,010                                                                                                                      |   |   |   | 3,977,001 |   |
| September 1,      2008 – September 30, 2008  |   |                               | 733,401   |   |                                      |   | 1.54   |                                                                                            |   |   | 733,401                                                                                                                      |   |   |   | 2,846,059 |   |
| October 1,      2008 – October 31, 2008      |   |                               | 518,793   |   |                                      |   | 1.27   |                                                                                            |   |   | 518,793                                                                                                                      |   |   |   | 2,185,501 |   |
| November 1,      2008 – November 30, 2008(1) |   |                               | 1,626,058 |   |                                      |   | 1.34   |                                                                                            |   |   | 107,109                                                                                                                      |   |   |   | 2,053,038 |   |
| December      1, 2008 – December 31, 2008              |   |                               | 38,487    |   |                                      |   | 1.43   |                                                                                            |   |   | 38,487                                                                                                                       |   |   |   | 1,998,025 |   |
| 2008      Total                                              |   |                               | 3,702,583 |   |                                      |   | 1.35   |                                                                                            |   |   | 2,183,634                                                                                                                    |   |   |   | 1,998,025 |   |
| January 1,      2009 –January 31, 2009(1)    |   |                               | 6,845,685 |   |                                      |   | 1.32   |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| February 1,      2009 – February 28, 2009    |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| March 1,      2009 – March 31, 2009          |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| April      1, 2009 – April 30, 2009                    |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| May      1, 2009 – May 31, 2009                        |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| June 1,      2009 – June 30, 2009            |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| July 1,      2009– July 31, 2009             |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| August 1,      2009 – August 31, 2009        |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| September 1,      2009 – September 30, 2009  |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,998,025 |   |
| October 1,      2009 – October 31, 2009      |   |                               | 150,996   |   |                                      |   | 2.32   |                                                                                            |   |   | 150,996                                                                                                                      |   |   |   | 1,647,950 |   |
| November 1,      2009 – November 30, 2009    |   |                               | -         |   |                                      |   | -      |                                                                                            |   |   | -                                                                                                                            |   |   |   | 1,647,950 |   |
| December      1, 2009 – December 31, 2009              |   |                               | 832,119   |   |                                      |   | 2.17   |                                                                                            |   |   | 832,119                                                                                                                      |   |   |   | - |   |
| 2009      Total                                              |   |                               | 7,828,800 |   |                                      |   | 1.43   |                                                                                            |   |   | 983,115                                                                                                                      |   |   |   | - |   |

| (1)  | Pursuant      to a share repurchase agreement entered into with Tiger Global in November      2008, we agreed to purchase from Tiger Global an aggregate of 8,364,634      ordinary shares (2,788,211 ADSs) at US$1.3167 per ordinary share (US$3.95      per ADS), for an aggregate purchase price of RMB75.3      million  ($11.0 million).  The agreement also      stipulated that all warrants held by Tiger Global, which represented the      right to purchase an aggregate of 1,768,300 ordinary shares, would be      cancelled.  As of December 31, 2008, we had repurchased and      cancelled 1,518,949 ordinary shares and 321,109 warrants for an aggregate      consideration of RMB13.7 million ($2.0 million).  Subsequent to      December 31, 2008, we repurchased and cancelled 6,845,685 ordinary shares      and 1,447,191warrants for an aggregate consideration of RMB61.6 million      ($9.0 million) in January2009. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | In      June 2008, our board of directors approved a share repurchase program      over a period of 12 months for the repurchase up to $5 million of our      outstanding ADSs. The share repurchase program has expired in June      2009. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ExhibitNumber |   | Description of Document                                                                                                                                                                                                                                                                            |
|---------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                         |
| 1.1           |   | Form      of Fifth Amended and Restated Memorandum of Association (incorporated by      reference to Exhibit 3.1 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                            |
|          |   |                                                                                                                                                                                                                                                                                                         |
| 1.2           |   | Form      of Fifth Amended and Restated Articles of Association (incorporated by      reference to Exhibit 3.2 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                              |
|          |   |                                                                                                                                                                                                                                                                                                         |
| 2.1           |   | Form      of Deposit Agreement among Registrant, depositary and holders of the      American Depositary Receipts (incorporated by reference to Exhibit 4.1      from our registration statement on Form F-1 (File No. 333-147620), as      amended, initially filed with the SEC on November 26,  2007) |

----

| ExhibitNumber |         | Description of Document                                                                                                                                                                                                                                                                                                                                                              |
|---------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.2           |         | Registrant’s      Specimen Certificate for Ordinary Shares (incorporated by reference to      Exhibit 4.2 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                                                                                                               |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.3           |         | Registrant’s      Specimen American Depositary Receipt (incorporated by reference to Exhibit      4.3 from our registration statement on Form F-1  (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                                                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.1           |    | English      Translation of Shareholder’s Voting Rights Entrustment Agreement among      Hongcheng Technology, Yang Xueshan, Xie Changqing and Hongcheng Education      dated July 12, 2005 (incorporated by reference to Exhibit 10.22 from our      registration statement on Form F-1 (File No. 333-147620), as amended,      initially filed with the SEC on November 26, 2007) |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 3.2           |    | English      Translation of Shareholder’s Voting Rights Entrustment Agreement among      Hongcheng Technology, Xie Changqing and Hongcheng Education dated December      20, 2005 (incorporated by reference to Exhibit 10.23 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.1           |         | Form      of Amended Equity Incentive Plan, dated March 2009, approved by      shareholders at the Extraordinary General Meeting on March 6, 2009      (incorporated by reference to Exhibit 4.1 from our annual report on Form      20-F (File No. 001-33858), filed with the SEC on June 30,      2009)                                                                                      |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2           |         | Form      of Indemnification Agreement between the Registrant and its officers and      directors (incorporated by reference to Exhibit 10.2 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                                                  |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.3           |         | Form      of Employment Agreement between the Registrant and a Senior Executive      Officer of the Registrant (incorporated by reference to Exhibit 10.3 from      our registration statement on Form F-1 (File No. 333-147620), as      amended, initially filed with the SEC on November 26,  2007)                                                                                    |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.4           |         | Fourth      Amended and Restated Registration Rights Agreement (incorporated by      reference to Exhibit 10.4 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)                                                                                                                                |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.5           |         | English      Translation of Loan Agreement between Registrant and Xie Changqing dated      July 15, 2005 (incorporated by reference to Exhibit 10.5 from our      registration statement on Form F-1 (File No. 333-147620), as amended,      initially filed with the SEC on November 26, 2007)                                                                                           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.6           |         | English      Translation of Supplementary Agreement to Loan Agreement between      Registrant and Xie Changqing dated July 18, 2007 (incorporated by      reference to Exhibit 10.6 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)                                                           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.7           |         | English      Translation of Amended and Renewed Loan Agreement between Registrant and      Xie Changqing dated July 12, 2005 (incorporated by reference to Exhibit      10.7 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                                                  |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.8           |         | English      Translation of Supplementary Agreement to Amended and Renewed Loan      Agreement between Registrant and Xie Changqing dated July 18, 2007      (incorporated by reference to Exhibit 10.8 from our registration statement      on Form F-1 (File No. 333-147620), as amended, initially filed with      the SEC on November 26, 2007)                                       |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.9           |         | English      Translation of Amended and Renewed Loan Agreement between Registrant and      Yang Xueshan dated June 2005 (incorporated by reference to Exhibit 10.9      from our registration statement on Form F-1 (File No. 333-147620), as      amended, initially filed with the SEC on November 26,  2007)                                                                           |

----

| ExhibitNumber |         | Description of Document                                                                                                                                                                                                                                                                                                                                    |
|---------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.10          |         | English      Translation of Supplementary Agreement to Amended and Renewed Loan      Agreement between Registrant and Yang Xueshan dated July 18, 2007      (incorporated by reference to Exhibit 10.10 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)             |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.11          |         | English      Translation of Equity Pledge Agreement among Hongcheng Technology, Xie      Changqing and Yang Xueshan dated July 12, 2005 (incorporated by reference      to Exhibit 10.15 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                            |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.12          |    | English      Translation of Supplementary Agreement to Equity Pledge Agreement among      Hongcheng Technology, Xie Changqing and Yang Xueshan dated July 18, 2007      (incorporated by reference to Exhibit 10.16 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007) |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.13          |    | English      Translation of Equity Pledge Agreement between Hongcheng Technology and      Xie Changqing dated December 20, 2005 (incorporated by reference to      Exhibit 10.19 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                    |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.14          |    | English      Translation of Supplementary Agreement to Equity Pledge Agreement between      Hongcheng Technology and Xie Changqing dated July 18, 2007 (incorporated      by reference to Exhibit 10.20 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)             |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.15          |    | English      Translation of Call Option Agreement among Hongcheng Technology, Yang      Xueshan and Xie Changqing dated July 12, 2005 (incorporated by reference      to Exhibit 10.24 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                              |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.16          |    | English      Translation of Call Option Agreement between Hongcheng Technology and Xie      Changqing dated December 20, 2005 (incorporated by reference to Exhibit      10.26 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                      |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.17          |    | English      Translation of Power of Attorney executed by Yang Xueshan dated July 12,      2005 (incorporated by reference to Exhibit 10.27 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                         |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.18          |    | English      Translation of Power of Attorney executed by Wang Gongquan dated July 12,      2005 (incorporated by reference to Exhibit 10.28 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.19          |    | English      Translation of Power of Attorney executed by Xie Changqing dated July 12,      2005 (incorporated by reference to Exhibit 10.30 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.20          |    | English      Translation of Power of Attorney executed by Xie Changqing dated December      20, 2005 (incorporated by reference to Exhibit 10.31 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                    |
|          |         |                                                                                                                                                                                                                                                                                                                                                                 |
| 4.21          |    | English      Translation of Technical Consulting and Services Agreement between      Hongcheng Technology and Xiandai Technology dated July 18, 2007      (incorporated by reference to Exhibit 10.32 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26,2007)                |

----

| ExhibitNumber |         | Description of Document                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.22          |    | English      Translation of Technical Consulting and Services Agreement between      Hongcheng Technology and Hongcheng Education dated July 18, 2007      (incorporated by reference to Exhibit 10.33 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                                            |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.23          |    | English      Translation of Collaborative Alliance Contract between the Company and      Renda Century dated October 22, 2002 (incorporated by reference to Exhibit      10.34 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                                                                                                    |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.24          |    | English      Translation of Technology Development Agreement between Renda Online      School and CMR dated July 15, 2003 (incorporated by reference to Exhibit      10.35 from our registration statement on Form F-1 (File      No. 333-147620), as amended, initially filed with the SEC on November      26, 2007)                                                                                                                        |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.25          |    | English      Translation of Service Agreement between Renda Online School and CMR dated      March 31, 2003 (incorporated by reference to Exhibit 10.36 from our      registration statement on Form F-1 (File No. 333-147620), as amended,      initially filed with the SEC on November 26, 2007)                                                                                                                                           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.26          |    | English      Translation of Memorandum of Understanding (Regarding Service Fee Payment)      between Renda Online School and CMR dated May 16, 2003 (incorporated by      reference to Exhibit 10.37 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)                                                                                              |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.27          |    | English      Translation of Memorandum of Understanding between Renda Online School,      CMR, Renda Century and the Company dated March 31, 2003 (incorporated by      reference to Exhibit 10.38 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)                                                                                                |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.28          |    | English      Translation of Memorandum of Understanding (Regarding Service Fee      Alteration) between Renda Online School and CMR dated May 16, 2003      (incorporated by reference to Exhibit 10.39 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                                           |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.29          |         | English      Translation of Collaborative Alliance Contract among China Agriculture      University, Hongcheng Liye, Shanghai SVA Communication Co., Ltd. and      Beijing CAU Technological Enterprise Incubator Co., Ltd. dated April 28,      2005 (incorporated by reference to Exhibit 10.40 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007) |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.30          |         | English      Translation of Cooperation Agreement between Zhong Nongda Networks      Development Co., Ltd. and China Agriculture University dated December 12,      2005 (incorporated by reference to Exhibit 10.41 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                              |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.31          |         | English      Translation of Service Agreement between China Agriculture University and      Zhong Nongda Networks Development Co., Ltd dated April 28, 2005      (incorporated by reference to Exhibit 10.42 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                                      |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.32          |         | English      Translation of Memorandum of Service Agreement between China Agriculture      University and Zhong Nongda Networks Development Co., Ltd. dated April 28,      2005 (incorporated by reference to Exhibit 10.43 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)                                                                       |
|          |         |                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| 4.33          |         | English      Translation of Collaborative Alliance Contract between Hongcheng Liye and      Dongbei University of Finance and Economics dated May, 2003 (incorporated      by reference to Exhibit 10.44 from our registration statement on Form F-1      (File No. 333-147620), as amended, initially filed with the SEC on      November 26, 2007)                                                                                          |

----

| ExhibitNumber |   | Description of Document                                                                                                                                                                                                                                                                                                                                                      |
|---------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.34          |   | English      Translation of Supplementary Agreement to Collaborative Alliance Contract      between Hongcheng Liye and Dongbei University of Finance and Economics      dated May, 2003 (incorporated by reference to Exhibit 10.45 from our      registration statement on Form F-1 (File No. 333-147620), as amended,      initially filed with the SEC on November 26, 2007)   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.35          |   | English      Translation of Service Agreement between Dongbei University of Finance and      Economics and Dalian Dongcai Technology Development Co., Ltd. dated June      26, 2003 (incorporated by reference to Exhibit 10.46 from our registration      statement on Form F-1 (File No. 333-147620), as amended, initially      filed with the SEC on November 26, 2007)       |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 4.36          |   | English      Translation of Licensing Agreement between Dalian Dongcai Technology      Development Co., Ltd, and Hongcheng Technology Development Co., Ltd. dated      September 18, 2003 (incorporated by reference to Exhibit 10.47 from our      registration statement on Form F-1 (File No. 333-147620), as amended,      initially filed with the SEC on November 26, 2007) |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 8.1*          |   | List      of subsidiaries of ChinaEdu Corporation                                                                                                                                                                                                                                                                                                                                      |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 12.1*         |   | Certification      of Chief Executive Officer required by      Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted      pursuant to Section 302 of the Sarbanes-Oxley Act of    2002                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 12.2*         |   | Certification      of Chief Financial Officer required by      Rule 13a-14(a)/15d-14(a) under the Exchange Act, as adopted      pursuant to Section 302 of the Sarbanes-Oxley Act of    2002                                                                                                                                                                            |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 13.1*         |   | Certification      of Chief Executive Officer required by      Rule 13a-14(b)/15d-14(b) under the Exchange Act, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 13.2*         |   | Certification      of Chief Financial Officer required by      Rule 13a-14(b)/15d-14(b) under the Exchange Act, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002                                                                                                                                                                                   |
|          |   |                                                                                                                                                                                                                                                                                                                                                                                   |
| 15.1*         |   | Consent      of Deloitte Touche Tohmatsu CPALtd.                                                                                                                                                                                                                                                                                                                                       |

----

----

| CHINAEDU      CORPORATION |
|---------------------------|
|                      |   |
| By                        | /s/      Julia Huang |
| Name:                     | Julia      Huang |
| Title:                    | Chairman      and Chief Executive Officer |

----

|   | CHINAEDU CORPORATION                                     |
|--------|----------------------------------------------------------|
|   |                                                     |
|   | Report      of Independent Registered                    |
|   | Public      Accounting Firm and                          |
|   | Consolidated      Financial Statements                   |
|   | For      the years ended December 31, 2007, 2008 and2009 |

----

| CONTENTS                                                                                                                         |   | PAGE   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                             |   |   |
| REPORT      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                                                     |   | F-1    |
|                                                                                                                             |   |   |
| CONSOLIDATED      BALANCE SHEETS AS OF DECEMBER 31, 2008 AND 2009                                                                |   | F-3    |
|                                                                                                                             |   |   |
| CONSOLIDATED      STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31, 2007, 2008 AND      2009                             |   | F-5    |
|                                                                                                                             |   |   |
| CONSOLIDATED      STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED      DECEMBER 31, 2007, 2008 AND 2009 |   | F-7    |
|                                                                                                                             |   |   |
| CONSOLIDATED      STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2007, 2008 AND      2009                             |   | F-8    |
|                                                                                                                             |   |   |
| NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS                                                                                  |   | F-10   |
|                                                                                                                             |   |   |
| SCHEDULE      I                                                                                                                  |   | F-67   |

----

----

----

|                                                                                                                                    |   | December 31,      |    |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                                    |   | 2008                   |    |   | 2009 |   |   | 2009 |   |
|                                                                                                                                    |   | RMB                    |    |   | RMB |   |   | US$ |   |
|                                                                                                                                    |   | (As adjusted,     |    |   |   |   |   |   |   |
|                                                                                                                                    |   | see Note 26) |    |   |   |   |   |   |   |
| Assets                                                                                                                                  |   |                   |    |   |   |   |   |   |   |
|                                                                                                                                    |   |                   |    |   |   |   |   |   |   |
| Current      assets:                                                                                                                    |   |                   |    |   |   |   |   |   |   |
| Cash      and cash equivalents                                                                                                          |   |                   | 353,933 |   |   |   | 203,143 |   |   |   | 29,761 |   |
| Term      deposits                                                                                                                      |   |                   | 63,500  |   |   |   | 122,304 |   |   |   | 17,918 |   |
| Restricted      cash                                                                                                                    |   |                   | -       |   |   |   | 365 |   |   |   | 53 |   |
| Short-term      investments                                                                                                             |   |                   | -       |   |   |   | 17,706 |   |   |   | 2,594 |   |
| Accounts      receivable, net                                                                                                           |   |                   | 14,854  |   |   |   | 28,334 |   |   |   | 4,151 |   |
| Inventory                                                                                                                               |   |                   | -       |   |   |   | 1,852 |   |   |   | 271 |   |
| Prepaid      expenses and other current assets                                                                                          |   |                   | 20,251  |   |   |   | 25,315 |   |   |   | 3,709 |   |
| Amounts      due from related parties                                                                                                   |   |                   | 150,472 |   |   |   | 176,802 |   |   |   | 25,902 |   |
| Deferred      tax assets                                                                                                                |   |                   | 3,986   |   |   |   | 3,309 |   |   |   | 485 |   |
| Total      current assets                                                                                                               |   |                   | 606,996 |   |   |   | 579,130 |   |   |   | 84,844 |   |
| Long-term      investments                                                                                                              |   |                   | 1,210   |   |   |   | 4,210 |   |   |   | 617 |   |
| Deferred      tax assets                                                                                                                |   |                   | 2,096   |   |   |   | 1,541 |   |   |   | 226 |   |
| Rental      deposits                                                                                                                    |   |                   | 958     |   |   |   | 868 |   |   |   | 127 |   |
| Land      use rights, net                                                                                                               |   |                   | 28,344  |   |   |   | 27,874 |   |   |   | 4,084 |   |
| Property      and equipment, net                                                                                                        |   |                   | 161,925 |   |   |   | 203,995 |   |   |   | 29,885 |   |
| Deposits      paid for acquisition of property and equipment                                                                            |   |                   | 8,619   |   |   |   | 13,898 |   |   |   | 2,036 |   |
| Acquired      intangible assets, net                                                                                                    |   |                   | 70,377  |   |   |   | 66,621 |   |   |   | 9,760 |   |
| Goodwill                                                                                                                                |   |                   | 38,155  |   |   |   | 38,155 |   |   |   | 5,590 |   |
| Total      assets                                                                                                                       |   |                   | 918,680 |   |   |   | 936,292 |   |   |   | 137,169 |   |
|                                                                                                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Liabilities      and equity                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                                                                   |   |                   | 8,530   |   |   |   | 6,467 |   |   |   | 947 |   |
| Deferred      revenues (including deferred revenue from related parties of RMB55,615 and      RMB53,161 in 2008 and 2009, respectively) |   |                   | 96,068  |   |   |   | 97,853 |   |   |   | 14,336 |   |
| Accrued      expenses and other current liabilities                                                                                     |   |                   | 51,629  |   |   |   | 68,917 |   |   |   | 10,096 |   |
| Amounts      due to related parties                                                                                                     |   |                   | 25,769  |   |   |   | 25,668 |   |   |   | 3,760 |   |
| Income      taxes payable                                                                                                               |   |                   | 27,917  |   |   |   | 33,389 |   |   |   | 4,892 |   |
| Other      taxes payable                                                                                                                |   |                   | 12,008  |   |   |   | 15,900 |   |   |   | 2,329 |   |
| Total      current liabilities                                                                                                          |   |                   | 221,921 |   |   |   | 248,194 |   |   |   | 36,360 |   |
| Deferred      revenues                                                                                                                  |   |                   | 6,073   |   |   |   | 8,075 |   |   |   | 1,183 |   |
| Deferred      tax liabilities                                                                                                           |   |                   | 11,069  |   |   |   | 10,143 |   |   |   | 1,486 |   |
| Unrecognized      tax benefit                                                                                                           |   |                   | 5,473   |   |   |   | 7,727 |   |   |   | 1,132 |   |
| Total      liabilities                                                                                                                  |   |                   | 244,536 |   |   |   | 274,139 |   |   |   | 40,161 |   |

----

|                                                                                                                                                                                            |   | December 31,      |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|
|                                                                                                                                                                                            |   | 2008                   |     |   | 2009 |   |   | 2009 |   |
|                                                                                                                                                                                            |   | RMB                    |     |   | RMB |   |   | US$ |   |
|                                                                                                                                                                                            |   | (As adjusted      |     |   |   |   |   |   |   |
|                                                                                                                                                                                            |   | see Note 26) |     |   |   |   |   |   |   |
| Commitments      (Note 20)                                                                                                                                                                      |   |                   |     |   |   |   |   |   |   |
|                                                                                                                                                                                            |   |                   |     |   |   |   |   |   |   |
| Equity:                                                                                                                                                                                         |   |                   |     |   |   |   |   |   |   |
| ChinaEdu      Corporation's equity:                                                                                                                                                             |   |                   |     |   |   |   |   |   |   |
| Ordinary      shares (RMB0.08 (US$0.01) par value; 100,000,000 shares authorized;      63,076,129 shares issued and outstanding in 2008; 55,247,329 shares issued      and outstanding in 2009) |   |                   | 4,573    |   |   |   | 4,076 |   |   |   | 597 |   |
| Additional      paid-in capital                                                                                                                                                                 |   |                   | 734,733  |   |   |   | 673,847 |   |   |   | 98,719 |   |
| Warrants                                                                                                                                                                                        |   |                   | 5,555    |   |   |   | 1,883 |   |   |   | 276 |   |
| Statutory      reserves                                                                                                                                                                         |   |                   | 9,597    |   |   |   | 13,661 |   |   |   | 2,001 |   |
| Accumulated      deficits                                                                                                                                                                       |   |                   | (143,709 | ) |   |   | (112,994 | ) |   |   | (16,551 | ) |
| Accumulated      other comprehensive loss                                                                                                                                                       |   |                   | (20,920  | ) |   |   | (20,500 | ) |   |   | (3,003 | ) |
| Total      ChinaEdu Corporation's equity                                                                                                                                                        |   |                   | 589,829  |   |   |   | 559,973 |   |   |   | 82,039 |   |
| Noncontrolling      interests                                                                                                                                                                   |   |                   | 84,315   |   |   |   | 102,180 |   |   |   | 14,969 |   |
| Total      equity                                                                                                                                                                               |   |                   | 674,144  |   |   |   | 662,153 |   |   |   | 97,008 |   |
| Total      liabilities and equity                                                                                                                                                               |   |                   | 918,680  |   |   |   | 936,292 |   |   |   | 137,169 |   |

----

|                                                                          |   | Years ended December 31, |    |
|-------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                          |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                          |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                          |   | (As adjusted                       |    |   | (As adjusted |   |   |   |   |   |   |   |
|                                                                          |   | see Note 26)                  |    |   | see Note 26) |   |   |   |   |   |   |   |
| Net      revenue                                                              |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                   |   |                                    | 202,185 |   |   |   | 255,388 |   |   |   | 285,178 |   |   |   | 41,779 |   |
| -      Related parties                                                        |   |                                    | 161,384 |   |   |   | 209,770 |   |   |   | 220,661 |   |   |   | 32,327 |   |
| -      Third parties                                                          |   |                                    | 40,801  |   |   |   | 45,618 |   |   |   | 64,517 |   |   |   | 9,452 |   |
| Online      tutoring programs                                                 |   |                                    | 18,013  |   |   |   | 15,436 |   |   |   | 19,584 |   |   |   | 2,869 |   |
| Private      primary and secondary schools                                    |   |                                    | 13,356  |   |   |   | 19,289 |   |   |   | 30,627 |   |   |   | 4,487 |   |
| International      curriculum programs                                        |   |                                    | 31,434  |   |   |   | 27,607 |   |   |   | 19,317 |   |   |   | 2,830 |   |
| Net      revenue                                                              |   |                                    | 264,988 |   |   |   | 317,720 |   |   |   | 354,706 |   |   |   | 51,965 |   |
| Cost      of revenue                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                   |   |                                    | 58,027  |   |   |   | 76,224 |   |   |   | 95,428 |   |   |   | 13,980 |   |
| -      Related parties                                                        |   |                                    | 30,590  |   |   |   | 47,105 |   |   |   | 58,414 |   |   |   | 8,558 |   |
| -      Third parties                                                          |   |                                    | 27,437  |   |   |   | 29,119 |   |   |   | 37,014 |   |   |   | 5,422 |   |
| Online      tutoring programs                                                 |   |                                    | 3,875   |   |   |   | 4,017 |   |   |   | 5,713 |   |   |   | 837 |   |
| Private      primary and secondary schools                                    |   |                                    | 10,944  |   |   |   | 17,572 |   |   |   | 26,109 |   |   |   | 3,825 |   |
| International      curriculum programs                                        |   |                                    | 23,503  |   |   |   | 19,920 |   |   |   | 11,112 |   |   |   | 1,628 |   |
| Total      cost of revenue                                                    |   |                                    | 96,349  |   |   |   | 117,733 |   |   |   | 138,362 |   |   |   | 20,270 |   |
| Gross      profit                                                             |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Online      degree programs                                                   |   |                                    | 144,158 |   |   |   | 179,164 |   |   |   | 189,750 |   |   |   | 27,799 |   |
| -      Related parties                                                        |   |                                    | 130,794 |   |   |   | 162,665 |   |   |   | 162,247 |   |   |   | 23,769 |   |
| -      Third parties                                                          |   |                                    | 13,364  |   |   |   | 16,499 |   |   |   | 27,503 |   |   |   | 4,030 |   |
| Online      tutoring programs                                                 |   |                                    | 14,138  |   |   |   | 11,419 |   |   |   | 13,871 |   |   |   | 2,032 |   |
| Private      primary and secondary schools                                    |   |                                    | 2,412   |   |   |   | 1,717 |   |   |   | 4,518 |   |   |   | 662 |   |
| International      curriculum programs                                        |   |                                    | 7,931   |   |   |   | 7,687 |   |   |   | 8,205 |   |   |   | 1,202 |   |
| Total      gross profit                                                       |   |                                    | 168,639 |   |   |   | 199,987 |   |   |   | 216,344 |   |   |   | 31,695 |   |
| Operating      expenses:                                                      |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative                                               |   |                                    | 76,893  |   |   |   | 86,908 |   |   |   | 82,858 |   |   |   | 12,139 |   |
| Selling      and marketing                                                    |   |                                    | 14,277  |   |   |   | 29,851 |   |   |   | 23,688 |   |   |   | 3,470 |   |
| Research      and development                                                 |   |                                    | 21,021  |   |   |   | 26,185 |   |   |   | 30,385 |   |   |   | 4,451 |   |
| Goodwill      impairment                                                      |   |                                    | 16,192  |   |   |   | 41,036 |   |   |   | - |   |   |   | - |   |
| Intangible      assets impairment                                             |   |                                    | -       |   |   |   | 29,057 |   |   |   | - |   |   |   | - |   |
| Total      operating expenses                                                 |   |                                    | 128,383 |   |   |   | 213,037 |   |   |   | 136,931 |   |   |   | 20,060 |   |
| Income      (loss) from operations                                            |   |                                    | 40,256  |   |   |   | (13,050 | ) |   |   | 79,413 |   |   |   | 11,635 |   |
| Other      income                                                             |   |                                    | 394     |   |   |   | 562 |   |   |   | 1,748 |   |   |   | 256 |   |
| Interest      income                                                          |   |                                    | 4,118   |   |   |   | 10,652 |   |   |   | 4,980 |   |   |   | 730 |   |
| Interest      expense                                                         |   |                                    | (2,130  | ) |   |   | (1,298 | ) |   |   | (2 | ) |   |   | - |   |
| Income      (loss) before income tax provisions                               |   |                                    | 42,638  |   |   |   | (3,134 | ) |   |   | 86,139 |   |   |   | 12,621 |   |
| Income      tax provisions:                                                   |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| -      Current                                                                |   |                                    | 16,286  |   |   |   | 11,860 |   |   |   | 18,981 |   |   |   | 2,781 |   |
| -      Deferred                                                               |   |                                    | (1,283  | ) |   |   | (8,387 | ) |   |   | 306 |   |   |   | 45 |   |
| Total      income tax provisions                                              |   |                                    | 15,003  |   |   |   | 3,473 |   |   |   | 19,287 |   |   |   | 2,826 |   |
| Net      income (loss)                                                        |   |                                    | 27,635  |   |   |   | (6,607 | ) |   |   | 66,852 |   |   |   | 9,795 |   |
| Less:      net income attributable to the noncontrolling interests            |   |                                    | 25,148  |   |   |   | 36,412 |   |   |   | 32,073 |   |   |   | 4,699 |   |
| Net      income (loss) attributable to ChinaEdu Corporation      shareholders |   |                                    | 2,487   |   |   |   | (43,019 | ) |   |   | 34,779 |   |   |   | 5,096 |   |

----

|                                                                                                                                 |   | Years ended December 31, |       |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                                                                                 |   | 2007                                    |       |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                                                                 |   | RMB                                     |       |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                                                                                 |   | (As adjusted                       |       |   | (As adjusted |   |   |   |   |   |   |   |
|                                                                                                                                 |   | see Note 26)                  |       |   | see Note 26) |   |   |   |   |   |   |   |
|                                                                                                                                 |   |                                    |       |   |   |   |   |   |   |   |   |   |
| Net      income (loss) per share attributable to ChinaEdu Corporation shareholders      - basic                                      |   |                                    | 0.06       |   |   |   | (0.75 | ) |   |   | 0.71 |   |   |   | 0.10 |   |
| Net      income per preferred A share-basic                                                                                          |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net      income per preferred B share-basic                                                                                          |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net      income per preferred C share-basic                                                                                          |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net      income per preferred D share-basic                                                                                          |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Net      income (loss) per share attributable to ChinaEdu Corporation shareholders      - diluted                                    |   |                                    | 0.05       |   |   |   | (0.75 | ) |   |   | 0.66 |   |   |   | 0.10 |   |
| Weighted      average shares used in calculating basic net income per share attributable      to ChinaEdu Corporation shareholders   |   |                                    | 20,585,074 |   |   |   | 57,679,504 |   |   |   | 48,844,606 |   |   |   | 48,844,606 |   |
| Weighted      average shares used in calculating preferred A basic net income per      share                                         |   |                                    | 4,991,507  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Weighted      average shares used in calculating preferred B basic net income per      share                                         |   |                                    | 11,561,814 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Weighted      average shares used in calculating preferred C basic net income per      share                                         |   |                                    | 3,221,030  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Weighted      average shares used in calculating preferred D basic net income per      share                                         |   |                                    | 1,787,745  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Weighted      average shares used in calculating diluted net income per share      attributable to ChinaEdu Corporation shareholders |   |                                    | 47,322,184 |   |   |   | 57,679,504 |   |   |   | 52,519,683 |   |   |   | 52,519,683 |   |
|                                                                                                                                 |   |                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based      compensation expenses                                                                                               |   |                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of revenue                                                                                                                 |   |                                    | 346        |   |   |   | 474 |   |   |   | 489 |   |   |   | 72 |   |
| General      and administrative                                                                                                      |   |                                    | 2,960      |   |   |   | 4,073 |   |   |   | 5,982 |   |   |   | 876 |   |
| Selling      and marketing                                                                                                           |   |                                    | 222        |   |   |   | 506 |   |   |   | 676 |   |   |   | 99 |   |
| Research      and development                                                                                                        |   |                                    | 115        |   |   |   | 178 |   |   |   | 269 |   |   |   | 39 |   |

----

|                                                                                             |   | ChinaEdu Corporation Shareholders' Equity |       |   |                           |   |   |                           |   |   |                           |   |
|--------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|------------|--------|--------------------------------|--------|--------|--------------------------------|--------|--------|--------------------------------|--------|
|                                                                                             |   |                                                     |       |   |                           |   |   |                           |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   | Total |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   | Series A convertible                           |       |   | Series B convertible |   |   | Series C convertible |   |   | Series D convertible |   |   |   |   |   |   |   |   | Additional |   |   |   |   |   |   |   |   |   |   |   |   |   |   | other |   |   | ChinaEdu |   |   |   |   |   |   |   |   |   |   |
|                                                                                             |   | preferred shares                                    |       |   | preferred shares          |   |   | preferred shares          |   |   | preferred shares          |   |   | Ordinary shares |   |   | paid-in |   |   | Subscription |   |   |   |   |   | Statutory |   |   | Accumulated |   |   | comprehensive |   |   | Corporation |   |   | Noncontrolling |   |   | Total |   |   | Comprehensive |   |
|                                                                                             |   | Shares                                                   |       |   | Amount                         |   |   | Shares                         |   |   | Amount                         |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | Shares |   |   | Amount |   |   | capital |   |   | receivable |   |   | Warrants |   |   | reserve |   |   | deficits |   |   | income (loss) |   |   | shareholders' equity |   |   | interests |   |   | equity |   |   | income (loss) |   |
|                                                                                             |   |                                                     |       |   | RMB                            |   |   |                           |   |   | RMB                            |   |   |   |   |   | RMB |   |   |   |   |   | RMB |   |   |   |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
| Balance      at January 1, 2007 (As adjusted see note 26)                                        |   |                                                     | 5,150,000  |   |                           |   | 426    |                           |   |   | 12,140,495                     |   |   |   | 1,005 |   |   |   | 3,378,379 |   |   |   | 272 |   |   |   | - |   |   |   | - |   |   |   | 19,007,408 |   |   |   | 1,710 |   |   |   | 343,167 |   |   |   | (1,117 | ) |   |   | 8,076 |   |   |   | 4,621 |   |   |   | (94,457 | ) |   |   | 616 |   |   |   | 264,319 |   |   |   | 49,323 |   |   |   | 313,642 |   |   |   |   |   |
| Issuance      of Series D convertible preferred shares                                           |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,598,503 |   |   |   | 200 |   |   |   | - |   |   |   | - |   |   |   | 74,322 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 74,522 |   |   |   | - |   |   |   | 74,522 |   |   |   |   |   |
| Repurchase      of ordinary share as treasury stock                                              |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,300,000 | ) |   |   | (178 | ) |   |   | (49,869 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (50,047 | ) |   |   | - |   |   |   | (50,047 | ) |   |   |   |   |
| Issuance      of treasury share to new shareholders                                              |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,300,000 |   |   |   | 178 |   |   |   | 49,869 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 50,047 |   |   |   | - |   |   |   | 50,047 |   |   |   |   |   |
| Collection      of subscription receivable                                                       |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,117 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,117 |   |   |   | - |   |   |   | 1,117 |   |   |   |   |   |
| Amortization      of share-based compensation                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,643 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,643 |   |   |   | - |   |   |   | 3,643 |   |   |   |   |   |
| Accumulated      adjustment of unrecognized tax benefit                                          |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,744 | ) |   |   | - |   |   |   | (3,744 | ) |   |   | - |   |   |   | (3,744 | ) |   |   |   |   |
| Repurchase      and cancellation of ordinary share                                               |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (600,000 | ) |   |   | (46 | ) |   |   | (12,767 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (12,813 | ) |   |   | - |   |   |   | (12,813 | ) |   |   |   |   |
| Repurchase      and cancellation of Series B convertible preferred share                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | (30,000                        | )      |   |   | (2 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (638 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (640 | ) |   |   | - |   |   |   | (640 | ) |   |   |   |   |
| Exercise      of warrants for Series A convertible preferred shares                              |   |                                                     | 300,000    |   |                           |   | 23     |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,386 |   |   |   | - |   |   |   | (1,235 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,174 |   |   |   | - |   |   |   | 2,174 |   |   |   |   |   |
| Exercise      warrants for ordinary shares                                                       |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 121,622 |   |   |   | 9 |   |   |   | 2,126 |   |   |   | - |   |   |   | (471 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,664 |   |   |   | - |   |   |   | 1,664 |   |   |   |   |   |
| Conversion      of series A, B, C, D preferred shares                                            |   |                                                     | (5,450,000 | )      |                           |   | (449   | )                              |   |   | (12,110,495                    | )      |   |   | (1,003 | ) |   |   | (3,378,379 | ) |   |   | (272 | ) |   |   | (2,598,503 | ) |   |   | (200 | ) |   |   | 23,537,377 |   |   |   | 1,924 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Issuance      of ordinary shares on IPO (net of issuance cost of    RMB25,665)                   |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,368,000 |   |   |   | 1,208 |   |   |   | 347,619 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 348,827 |   |   |   | - |   |   |   | 348,827 |   |   |   |   |   |
| Provision      for statutory reserves                                                            |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,540 |   |   |   | (7,540 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Foreign      currency translation adjustments                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,822 | ) |   |   | (2,822 | ) |   |   | - |   |   |   | (2,822 | ) |   |   | (2,822 | ) |
| Net      income                                                                                  |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,487 |   |   |   | - |   |   |   | 2,487 |   |   |   | 25,148 |   |   |   | 27,635 |   |   |   | 27,635 |   |
| Capital      contribution by a noncontrolling shareholder                                        |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,430 |   |   |   | 3,430 |   |   |   |   |   |
| Dividend      distributed to noncontrolling shareholders                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (15,178 | ) |   |   | (15,178 | ) |   |   |   |   |
| Acquisition      of equity interests from noncontrolling shareholders                            |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,327 | ) |   |   | (3,327 | ) |   |   |   |   |
| Withdraw      of capital by a noncontrolling shareholder                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,400 | ) |   |   | (1,400 | ) |   |   |   |   |
| Balance      at December 31, 2007 (As adjusted see note 26)                                      |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 58,434,407 |   |   |   | 4,805 |   |   |   | 760,858 |   |   |   | - |   |   |   | 6,370 |   |   |   | 12,161 |   |   |   | (103,254 | ) |   |   | (2,206 | ) |   |   | 678,734 |   |   |   | 57,996 |   |   |   | 736,730 |   |   |   | 24,813 |   |
| Ordinary      shares converted to ADS shares for future exercise of share options (note      14) |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 8,344,305 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Repurchase      of ordinary shares (note 18)                                                     |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (3,702,583 | ) |   |   | (253 | ) |   |   | (33,937 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (34,190 | ) |   |   | - |   |   |   | (34,190 | ) |   |   |   |   |
| Forfeiture      of warrants (note 18)                                                            |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 815 |   |   |   | - |   |   |   | (815 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Exercise      of share options (note 14)                                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 21 |   |   |   | 1,766 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,787 |   |   |   | - |   |   |   | 1,787 |   |   |   |   |   |
| Amortization      of share-based compensation                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,231 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,231 |   |   |   | - |   |   |   | 5,231 |   |   |   |   |   |
| Transfer      statutory reserve                                                                  |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,264 | ) |   |   | 5,264 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Provision      for statutory reserves                                                            |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 2,700 |   |   |   | (2,700 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Foreign      currency translation adjustments                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (18,714 | ) |   |   | (18,714 | ) |   |   | - |   |   |   | (18,714 | ) |   |   | (18,714 | ) |
| Net      loss                                                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (43,019 | ) |   |   | - |   |   |   | (43,019 | ) |   |   | 36,412 |   |   |   | (6,607 | ) |   |   | (6,607 | ) |
| Capital      contribution by a noncontrolling shareholder                                        |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,225 |   |   |   | 1,225 |   |   |   |   |   |
| Dividend      distributed to noncontrolling shareholders                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (11,318 | ) |   |   | (11,318 | ) |   |   |   |   |
| Balance      at December 31, 2008 (As adjusted see note 26)                                      |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 63,076,129 |   |   |   | 4,573 |   |   |   | 734,733 |   |   |   | - |   |   |   | 5,555 |   |   |   | 9,597 |   |   |   | (143,709 | ) |   |   | (20,920 | ) |   |   | 589,829 |   |   |   | 84,315 |   |   |   | 674,144 |   |   |   | (25,321 | ) |
| Repurchase      of ordinary shares (note 18)                                                     |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (7,828,800 | ) |   |   | (536 | ) |   |   | (76,098 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (76,634 | ) |   |   | - |   |   |   | (76,634 | ) |   |   |   |   |
| Forfeiture      of warrants (note 18)                                                            |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,672 |   |   |   | - |   |   |   | (3,672 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Exercise      of share options (note 14)                                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 39 |   |   |   | 4,124 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,163 |   |   |   | - |   |   |   | 4,163 |   |   |   |   |   |
| Amortization      of share-based compensation                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,416 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,416 |   |   |   | - |   |   |   | 7,416 |   |   |   |   |   |
| Provision      for statutory reserve                                                             |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 4,064 |   |   |   | (4,064 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Foreign      currency translation adjustments                                                    |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 276 |   |   |   | 276 |   |   |   | - |   |   |   | 276 |   |   |   | 276 |   |
| Unrealized      gains (note 6)                                                                   |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 144 |   |   |   | 144 |   |   |   | - |   |   |   | 144 |   |   |   | 144 |   |
| Net      income                                                                                  |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 34,779 |   |   |   | - |   |   |   | 34,779 |   |   |   | 32,073 |   |   |   | 66,852 |   |   |   | 66,852 |   |
| Capital      contribution by a noncontrolling shareholder                                        |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,960 |   |   |   | 1,960 |   |   |   |   |   |
| Dividend      distributed to noncontrolling shareholders                                         |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (16,168 | ) |   |   | (16,168 | ) |   |   |   |   |
| Balance      at December 31, 2009                                                                |   |                                                     | -          |   |                           |   | -      |                           |   |   | -                              |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 55,247,329 |   |   |   | 4,076 |   |   |   | 673,847 |   |   |   | - |   |   |   | 1,883 |   |   |   | 13,661 |   |   |   | (112,994 | ) |   |   | (20,500 | ) |   |   | 559,973 |   |   |   | 102,180 |   |   |   | 662,153 |   |   |   | 67,272 |   |
|                                                                                             |   |                                                     |       |   |                           |   |   |                           |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | US$ | 597 |   |   | US$ | 98,719 |   |   |   |   |   |   | US$ | 276 |   |   | US$ | 2,001 |   |   | US$ | (16,551 | ) |   | US$ | (3,003 | ) |   | US$ | 82,039 |   |   | US$ | 14,969 |   |   | US$ | 97,008 |   |   |   |   |   |

----

|                                                                                                                       |   | Years ended December 31, |    |
|----------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                                       |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                                                       |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                                                                       |   | (As adjusted                       |    |   | (As adjusted |   |   |   |   |   |   |   |
|                                                                                                                       |   | see Note 26)                  |    |   | see Note 26) |   |   |   |   |   |   |   |
| Cash      flows from operating activities:                                                                                 |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                     |   |                                    | 27,635  |   |   |   | (6,607 | ) |   |   | 66,852 |   |   |   | 9,795 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                         |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share-based      compensation                                                                                              |   |                                    | 3,643   |   |   |   | 5,231 |   |   |   | 7,416 |   |   |   | 1,086 |   |
| Depreciation      and amortization of property and equipment                                                               |   |                                    | 8,206   |   |   |   | 12,212 |   |   |   | 16,603 |   |   |   | 2,432 |   |
| Amortization      of land use rights                                                                                       |   |                                    | 533     |   |   |   | 606 |   |   |   | 619 |   |   |   | 91 |   |
| Amortization      of acquired intangible assets                                                                            |   |                                    | 8,548   |   |   |   | 8,746 |   |   |   | 5,237 |   |   |   | 767 |   |
| Goodwill      and acquired intangible assets impairment                                                                    |   |                                    | 16,192  |   |   |   | 70,093 |   |   |   | - |   |   |   | - |   |
| Provision      for amounts due from related parties and account    receivables                                             |   |                                    | 7,049   |   |   |   | 1,215 |   |   |   | 364 |   |   |   | 53 |   |
| Property      and equipment write down                                                                                     |   |                                    | 688     |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Gain      on conversion of warrants of series D convertible preferred      shares                                          |   |                                    | (394    | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      expenses                                                                                                     |   |                                    | 2,130   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss      from disposal of property and equipment                                                                          |   |                                    | 89      |   |   |   | 1,663 |   |   |   | 513 |   |   |   | 75 |   |
| Deferred      income taxes                                                                                                 |   |                                    | (1,283  | ) |   |   | (8,387 | ) |   |   | 306 |   |   |   | 45 |   |
| Changes      in assets and liabilities:                                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Restricted      cash                                                                                                       |   |                                    | -       |   |   |   | - |   |   |   | (365 | ) |   |   | (53 | ) |
| Accounts      receivable                                                                                                   |   |                                    | 11,340  |   |   |   | (14,658 | ) |   |   | (13,844 | ) |   |   | (2,028 | ) |
| Inventory                                                                                                                  |   |                                    | -       |   |   |   | - |   |   |   | (1,852 | ) |   |   | (271 | ) |
| Prepaid      expenses and other current assets                                                                             |   |                                    | (8,737  | ) |   |   | (2,970 | ) |   |   | (5,075 | ) |   |   | (743 | ) |
| Amounts      due from related parties                                                                                      |   |                                    | (52,492 | ) |   |   | (44,950 | ) |   |   | (26,330 | ) |   |   | (3,857 | ) |
| Rental      deposits                                                                                                       |   |                                    | (1,187  | ) |   |   | 665 |   |   |   | 90 |   |   |   | 13 |   |
| Land      use rights                                                                                                       |   |                                    | (2,195  | ) |   |   | (160 | ) |   |   | (1,989 | ) |   |   | (291 | ) |
| Accounts      payable                                                                                                      |   |                                    | (5,640  | ) |   |   | (950 | ) |   |   | 115 |   |   |   | 17 |   |
| Deferred      revenues                                                                                                     |   |                                    | 7,905   |   |   |   | 15,210 |   |   |   | 3,792 |   |   |   | 556 |   |
| Accrued      expenses and other current liabilities                                                                        |   |                                    | 20,860  |   |   |   | 10,011 |   |   |   | 19,082 |   |   |   | 2,796 |   |
| Amounts      due to related parties                                                                                        |   |                                    | 25,045  |   |   |   | (4,368 | ) |   |   | 268 |   |   |   | 39 |   |
| Income      taxes payable                                                                                                  |   |                                    | 9,495   |   |   |   | 5,462 |   |   |   | 5,472 |   |   |   | 802 |   |
| Other      taxes payable                                                                                                   |   |                                    | 2,914   |   |   |   | 5,342 |   |   |   | 3,892 |   |   |   | 570 |   |
| Unrecognized      tax benefit                                                                                              |   |                                    | 588     |   |   |   | 1,141 |   |   |   | 2,254 |   |   |   | 330 |   |
| Net      cash provided by operating activities                                                                             |   |                                    | 80,932  |   |   |   | 54,547 |   |   |   | 83,420 |   |   |   | 12,224 |   |
|                                                                                                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                 |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchase      of businesses, net of cash acquired of RMB625, RMB nil and RMB nil in      2007, 2008 and 2009, respectively |   |                                    | (16,520 | ) |   |   | (6,700 | ) |   |   | - |   |   |   | - |   |
| Payment      of contingent consideration                                                                                   |   |                                    | (6,000  | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase      of property and equipment                                                                                    |   |                                    | (69,687 | ) |   |   | (36,323 | ) |   |   | (57,071 | ) |   |   | (8,361 | ) |
| Deposits      paid for acquisition of property and equipment                                                               |   |                                    | (2,025  | ) |   |   | (8,650 | ) |   |   | (11,371 | ) |   |   | (1,666 | ) |
| Purchase      of term deposits                                                                                             |   |                                    | 3,958   |   |   |   | (57,458 | ) |   |   | (58,813 | ) |   |   | (8,616 | ) |
| Purchase      of contractual rights                                                                                        |   |                                    | (3,430  | ) |   |   | (1,225 | ) |   |   | (1,235 | ) |   |   | (181 | ) |
| Purchase      of investments                                                                                               |   |                                    | -       |   |   |   | - |   |   |   | (20,578 | ) |   |   | (3,015 | ) |
| Proceeds      from disposal of property and equipment                                                                      |   |                                    | -       |   |   |   | 31 |   |   |   | - |   |   |   | - |   |
| Net      cash used in investing activities                                                                                 |   |                                    | (93,704 | ) |   |   | (110,325 | ) |   |   | (149,068 | ) |   |   | (21,839 | ) |

----

|                                                                                                          |   | Years ended December 31, |    |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                          |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                                          |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | US$ |   |
|                                                                                                          |   | (As adjusted                       |    |   | (As adjusted |   |   |   |   |   |   |   |
|                                                                                                          |   | see Note 26)                  |    |   | see Note 26) |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Proceeds      from Initial Public Offering ("IPO") (net of issuance cost of      RMB25,665)                   |   |                                    | 348,827 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Cash      dividends paid to noncontrolling shareholders                                                       |   |                                    | (19,028 | ) |   |   | (11,319 | ) |   |   | (14,698 | ) |   |   | (2,153 | ) |
| Capital      contribution by noncontrolling shareholders                                                      |   |                                    | 2,030   |   |   |   | 1,225 |   |   |   | 1,715 |   |   |   | 251 |   |
| Proceeds      from issuance of Series D convertible preferred shares (net of issuance      costs of RMB2,598) |   |                                    | 72,033  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds      from exercise of warrants                                                                       |   |                                    | 3,838   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Repurchase      and cancellation of Series B convertible preferred shares                                     |   |                                    | (640    | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Repurchase      and cancellation of ordinary shares                                                           |   |                                    | (12,813 | ) |   |   | (34,190 | ) |   |   | (76,634 | ) |   |   | (11,226 | ) |
| Repayment      of convertible notes                                                                           |   |                                    | (27,783 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Repayment      of long-term debts                                                                             |   |                                    | (1,080  | ) |   |   | (25,724 | ) |   |   | - |   |   |   | - |   |
| Collection      of subscription receivable                                                                    |   |                                    | 1,117   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds      from exercise of share options                                                                  |   |                                    | -       |   |   |   | 1,787 |   |   |   | 4,163 |   |   |   | 610 |   |
| Net      cash provided by (used in) financing activities                                                      |   |                                    | 366,501 |   |   |   | (68,221 | ) |   |   | (85,454 | ) |   |   | (12,518 | ) |
| Effect      of exchange rate changes                                                                          |   |                                    | (4,930  | ) |   |   | (19,182 | ) |   |   | 312 |   |   |   | 43 |   |
| Net      increase (decrease) in cash and cash equivalents                                                     |   |                                    | 348,799 |   |   |   | (143,181 | ) |   |   | (150,790 | ) |   |   | (22,090 | ) |
| Cash      and cash equivalents, beginning of year                                                             |   |                                    | 148,315 |   |   |   | 497,114 |   |   |   | 353,933 |   |   |   | 51,851 |   |
| Cash      and cash equivalents, end of year                                                                   |   |                                    | 497,114 |   |   |   | 353,933 |   |   |   | 203,143 |   |   |   | 29,761 |   |
|                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow information                                                         |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      taxes paid                                                                                        |   |                                    | 6,791   |   |   |   | 4,987 |   |   |   | 11,255 |   |   |   | 1,649 |   |
| Interest      paid                                                                                            |   |                                    | 4,743   |   |   |   | 1,294 |   |   |   | 2 |   |   |   | - |   |
| Supplemental      disclosure of non-cash financing activities:                                                |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion      of convertible note into Series D preferred shares                                            |   |                                    | 2,489   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Purchase      of building financed by mortgage loan                                                           |   |                                    | 26,430  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Conversion      of Series A, B, C, D preferred shares into ordinary shares                                    |   |                                    | 1,924   |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| 1. | ORGANIZATION      AND PRINCIPAL ACTIVITIES |
|----|--------------------------------------------|

|                                                                                           |   | Date of incorporation |   | Percentage of   |   |                             |
|------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|----------------------|--------|----------------------------------|
| Name                                                                                           |   | or acquisition             |   | legal ownership |   | Place of incorporation |
|                                                                                           |   |                            |   |                 |   |                             |
| Subsidiaries      of the Company:                                                              |   |                            |   |                 |   |                             |
|                                                                                           |   |                            |   |                 |   |                             |
| CMR      Web-learning Co., Ltd. ("CMR Web")                                                    |   | July 29, 1999         |   | 70%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Hongcheng      Technology Development Co., Ltd. ("Hongcheng Technology")                       |   | July 31, 2000         |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Xuezhi Times Education Science Co., Ltd. ("BeijingXuezhi")                        |   | October 18, 2001      |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Zhong      Nongda Networks Development Co., Ltd. ("Zhongnongda    Networks")                   |   | October 30, 2001      |   | 55%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Hongcheng Liye Technology Co., Ltd. ("Hongcheng Liye")                            |   | April 15, 2003        |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Dalian      Dongcai Technology Co., Ltd. ("Dongcai")                                           |   | June 4, 2003          |   | 70%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      WITT Education Consultant Management Co., Ltd. ("WITT      Education")            |   | July 4, 2003          |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| BJ-WITT      EDU MAN. LTD. ("BJ-WITT")                                                         |   | July 4, 2003          |   | 100%                 |   | BVI                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Chongqing      Chongda Yuanxing Co., Ltd. ("Chongda")                                          |   | December 24, 2003     |   | 51%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      BCIT Science and Education Management Consulting Limited ("Beijing      BCIT")    |   | January 13, 2005      |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      WITT Science Co., Ltd. ("WITT Science")                                           |   | December 26, 2005     |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Gotop Education Co., Ltd. ("Gotop Hongcheng")                                     |   | December 26, 2005     |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      BCIT Science and Education Management Consulting Limited      ("BJ-BCIT")         |   | February 10, 2006     |   | 100%                 |   | BVI                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Distance Education Technology Co., Ltd. ("Yuancheng      Education")              |   | March 31, 2006        |   | 65%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Tianjin      Gaotuo Hongcheng Education Technology Co., Ltd. ("Tianjin Gaotuo      Hongcheng") |   | June 26, 2006         |   | 100%                 |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Beiyuda Education Technology Co., Ltd. ("Beiyuda")                                |   | September 26, 2006    |   | 51%                  |   | PRC                              |
|                                                                                           |   |                            |   |                 |   |                             |
| Beijing      Mingdaoyuan Technology Co., Ltd. ("Beijing Mingdao")                              |   | March 27, 2007        |   | 51%                  |   | PRC                              |

----

| 1. | ORGANIZATION      AND PRINCIPAL ACTIVITIES -continued |
|----|-------------------------------------------------------|

|                                                                                     | Date of incorporation |   | Percentage of   |   |                             |
|------------------------------------------------------------------------------------------|---------------------------------|--------|----------------------|--------|----------------------------------|
| Name                                                                                     | or acquisition             |   | legal ownership |   | Place of incorporation |
|                                                                                     |                            |   |                 |   |                             |
| Shanghai      Shangcai Education Technology Co., Ltd. ("Shanghai    Shangcai")           | April 18, 2008        |   |                 | 51%    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Dongcai      Online Training Center ("Dongcai Online")                                   | July 10, 2008         |   |                 | 70%    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Beijing      Zhonglin Technology Co., Ltd. ("Zhonglin")                                  | November 3, 2008      |   |                 | 51%    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Guangxi      Hongcheng Times Technology Development Co.,Ltd. ("Guangxi      Hongcheng")  | February 10, 2009     |   |                 | 51%    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Fuzhou      Haojiaoshi Distance Education Service Co., Ltd. ("Fuzhou Good      Teacher") | December 7, 2009      |   |                 | 51%    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Variable      interest entity of the Company:                                            |                            |   |                 |   |                             |   |
|                                                                                     |                            |   |                 |   |                             |   |
| Beijing      Hongcheng Education Technology Co., Ltd. ("Hongcheng      Education")       | March 7, 2005         |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Subsidiaries      of variable interest entity:                                           |                            |   |                 |   |                             |   |
|                                                                                     |                            |   |                 |   |                             |   |
| Beijing      Gotop Electronic Science Co., Ltd. ("Gotop Electronic") (1)                 | November 29, 1995     |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Xiandai      Xingye Network Technology Co., Ltd. ("Xiandai Technology") (1)              | November 7, 2000      |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Pingdingshan      Wellent Bilingual School ("Pingdingshan") (1)                          | September 3, 2002     |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Anqing      Foreign Language Middle School ("Anqing Foreign Language") (1)               | August 2, 2004        |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Jingzhou      Tianchang Investment Co., Ltd. ("Tianchang") (2)                           | September 6, 2005     |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Jingzhou      Middle School South Campus ("South Campus") (3)                            | December 28, 2005     |   |                 | N/A    |                             | PRC |
|                                                                                     |                            |   |                 |   |                             |   |
| Beijing      Hongcheng YoYo Technology Co., Ltd. ("Hongcheng YoYo") (1)                  | November 3, 2009      |   |                 | N/A    |                             | PRC |

|   | (1) | Wholly      owned subsidiary of Hongcheng Education (VIE of the    Company) |
|--------|-----|-----------------------------------------------------------------------------|

|   | (2) | 72.5%      of its equity is held by Hongcheng Education (VIE of the      Company) |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (3) | 54%      of its equity is held by Hongcheng Education (VIE of the      Company) |
|--------|-----|---------------------------------------------------------------------------------|

----

| 1. | ORGANIZATION      AND PRINCIPAL ACTIVITIES -continued |
|----|-------------------------------------------------------|

|   | (i) | Proceeds      from the loans are to be used solely for the investments in Xiandai      Technology  and HongchengEducation; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The      loans can only be repaid by a transfer of the equity ownership interest in      Xiandai Technology and Hongcheng Education to the  Group; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Ownership      interests in Xiandai Technology and Hongcheng Education cannot be      transferred to other parties without the approval of the      Group; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | The      Group has the right to appoint all directors and senior management      personnel of  Xiandai Technology and Hongcheng      Education; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | All      ownership rights, including voting rights and rights to declare and rights      to pay dividends, are assigned to the Group for an indefinite term;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | The      Group has the right to acquire all of the ownership interests in Xiandai      Technology and Hongcheng Education at the lowest price permitted by the      PRC law at any time, when permitted by the PRC  law. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                   |   | December 31, |    |
|------------------------|--------|-------------------|---------|
|                   |   | 2008              |    |   | 2009 |   |
|                   |   | RMB               |    |   | RMB |   |
|                   |   |              |    |   |   |   |   |   |
| Total      assets      |   |              | 191,898 |   |   |   | 236,218 |   |
| Total      liabilities |   |              | 140,652 |   |   |   | 186,959 |   |

----

| 1. | ORGANIZATION      AND PRINCIPAL ACTIVITIES -continued |
|----|-------------------------------------------------------|

|                   |   | Years ended December 31, |   |
|------------------------|--------|--------------------------|--------|
|                   |   | 2007                     |   |   | 2008 |   |   | 2009 |   |
|                   |   | RMB                      |   |   | RMB |   |   | RMB |   |
|                   |   |                     |   |   |   |   |   |   |   |
| Net      revenue       |   |                     | 31,608 |   |   |   | 49,517 |   |   |   | 66,410 |   |
| Net      income (loss) |   |                     | 3,592  |   |   |   | (7,566 | ) |   |   | (1,125 | ) |

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES |
|----|-------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

|   | · | Level      1 - inputs are based upon unadjusted quoted prices for identical      instruments traded in activemarkets. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------|

|   | · | Level      2 - inputs are based upon quoted prices for similar instruments in active      markets, quoted prices for identical or similar instruments in markets      that are not active, and model-based valuation techniques for which all      significant assumptions are observable in the market or can be      corroborated by observable market data for substantially the full term of      the assets or liabilities. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level      3 - inputs are generally unobservable and typically reflect management's      estimates of assumptions that market participants would use in pricing the      asset or liability.  The fair values are therefore determined      using model-based techniques that include option pricing models,      discounted cash flow models, and similar  techniques. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

| Buildings                              | 20      years                         |
|----------------------------------------|---------------------------------------|
| Furniture,      fixtures and equipment | 3-5      years                        |
| Motor      vehicles                    | 5      years                          |
| Leasehold      improvements            | Shorter      of the lease term or the |
|                                   | estimated      useful lives           |

| Service      agreements with universities and high schools | 26      years |
|------------------------------------------------------------|---------------|
| Operating      platforms                                   | 6      years  |
| Customer      base                                         | 4      years  |
| Online      coursewares                                    | 3      years  |
| Agency      agreements                                     | 5      years  |
| Contractual      rights                                    | 16      years |
| Prepaid      operating contracts                           | 22      years |

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

|   | (i) | Online      education technical, consulting and recruiting  services |
|--------|-----|----------------------------------------------------------------------|

|   | (ii) | Online      tutoring services |
|--------|------|-------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

|   | (iii) | Traditional      classroom education services |
|--------|-------|-----------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

|      |   | Years ended December 31, |   |
|-----------|--------|-----------------------------------------|--------|
| Customers |   | 2007                                    |   |   | 2008 |   |   | 2009 |   |
|      |   | RMB                                     |   |   | RMB |   |   | RMB |   |
|      |   |                                    |   |   |   |   |   |   |   |
| A         |   |                                    | 55,965 |   |   |   | 70,197 |   |   |   | 71,722 |   |
| B         |   |                                    | 37,075 |   |   |   | 42,377 |   |   |   | 42,701 |   |
| C         |   |                                    | *      |   |   |   | * |   |   |   | * |   |
| D         |   |                                    | 45,926 |   |   |   | 48,178 |   |   |   | 47,355 |   |

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

|      |   | December 31, |   |
|-----------|--------|--------------|--------|
| Customers |   | 2008         |   |   | 2009 |   |
|      |   | %            |   |   | % |   |
|      |   |         |   |   |   |   |
| A         |   |         | 40     |   |   |   | 44 |   |
| B         |   |         | 17     |   |   |   | 11 |   |
| C         |   |         | 18     |   |   |   | 23 |   |
| D         |   |         | *      |   |   |   | * |   |
| E         |   |         | 13     |   |   |   | * |   |

|   | * | Represented      less than 10% of consolidated net revenue or accounts receivable and      amounts due from related parties'balances. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 2. | SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES -continued |
|----|------------------------------------------------------------|

----

| 3. | ACQUISITIONS |
|----|--------------|

|   | (a) | On      February 13, 2007, Hongcheng Education acquired an additional 10% equity      interest in Tianchang for cash consideration of RMB3,520.  After      the acquisition, the equity interest in Tianchang increased to      72.5%. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                          |   | RMB    |   |
|-------------------------------------------------------------------------------|--------|--------|--------|
|                                                                          |   |   |   |
| Cash      and cash equivalents                                                |   |   | 625    |   |
| Accounts      receivable                                                      |   |   | 13     |   |
| Amounts      due from related parties                                         |   |   | 75     |   |
| Property      and equipment                                                   |   |   | 355    |   |
| Land      use right                                                           |   |   | 1,852  |   |
| Amounts      due to related parties                                           |   |   | (74    | ) |
| Net      assets acquired                                                      |   |   | 2,846  |   |
| Goodwill      (allocated to private primary and secondary schools    segment) |   |   | 674    |   |
| Total                                                                         |   |   | 3,520  |   |

----

| 3.  | ACQUISITIONS      - continued |
|----------|-------------------------------|

|   | (b) | In      May 2007, the Group acquired the remaining 20% equity interest in WITT      Education for cash consideration of RMB12,800 (US$1,654), and WITT      Education became a wholly-owned subsidiary of the Group.  In      addition, the Group paid an additional RMB6,000 to the original      shareholder in 2007 since WITT Education met the operating performance      target set forth in the purchase agreement, consequently increasing the      goodwill by RMB6,000. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                          |   |   |   | Weighted                 |            |
|-------------------------------------------------------------------------------|--------|--------|--------|--------------------------|-----------------|
|                                                                          |   |   |   | average remaining   |            |
|                                                                          |   | RMB    |   | amortization period |            |
| Intangible      assets:                                                       |   |   |   |                     |            |
| Service      agreement with a high school                                     |   |   | 3,154  |                     | 18.7 years |   |
| Service      agreements with other high schools                               |   |   | 4,980  |                     | 13.7 years |   |
| Total      intangible assets                                                  |   |   | 8,134  |                     | 15.6 years |   |
| Deferred      tax liabilities relating to intangible assets acquired          |   |   | (1,907 | )                        |            |   |
| Goodwill      (allocated to the international curriculum programs    segment) |   |   | 6,573  |                     |            |   |
| Total                                                                         |   |   | 12,800 |                     |            |   |

----

| 3.  | ACQUISITIONS      - continued |
|----------|-------------------------------|

|   | (c) | In      May 2008, the Group acquired the remaining 20% equity interest in Gotop      Electronic and Beijing Xuezhi from Tianjin Tianxingjian Co., Ltd.      ("Tianxingjian"), which were engaged in providing online tutoring service,      for an aggregate purchase price a cash consideration of RMB6,700 (US$982)      and Gotop Electronic and Beijing Xuezhi became wholly owned by the      Group. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                 |   |   |   | Weighted                 |                 |
|----------------------------------------------------------------------|--------|--------|--------|--------------------------|----------------------|
|                                                                 |   |   |   | average remaining   |                 |
|                                                                 |   | RMB    |   | amortization period |                 |
|                                                                 |   |   |   |                     |                 |
| Intangible      assets:                                              |   |   |   |                     |                 |
| Trade      name                                                      |   |   | 854    |                     | indefinite life |   |
| Online      courseware                                               |   |   | 119    |                     | 2 years         |   |
| Agency      agreements                                               |   |   | 61     |                     | 5 years         |   |
| Operation      platform                                              |   |   | 69     |                     | 5 years         |   |
| Total      intangible assets                                         |   |   | 1,103  |                     |                 |   |
| Deferred      tax liabilities relating to intangible assets acquired |   |   | (275   | )                        |                 |   |
| Goodwill      (allocated to the online tutoring programs segment)    |   |   | 5,872  |                     |                 |   |
| Total                                                                |   |   | 6,700  |                     |                 |   |

----

| 3.  | ACQUISITIONS      - continued |
|----------|-------------------------------|

|                                                                                                     |   | Years ended December 31, |    |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                     |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |
|                                                                                                     |   | RMB                                     |    |   | RMB |   |   | RMB |   |
|                                                                                                     |   | (Unaudited)                             |    |   | (Unaudited) |   |   | (Unaudited) |   |
|                                                                                                     |   |                                    |    |   |   |   |   |   |   |
| Pro      forma net revenues                                                                              |   |                                    | 264,988 |   |   |   | 317,720 |   |   |   | 354,706 |   |
| Pro      forma net income (loss) attributable to ChinaEdu Corporation      shareholders                  |   |                                    | 2,000   |   |   |   | (43,046 | ) |   |   | 34,779 |   |
| Pro      forma net income (loss) per shares attributable to ChinaEdu Corporation      shareholders-basic |   |                                    | 0.05    |   |   |   | (0.75 | ) |   |   | 0.71 |   |
| Pro      forma net income (loss) per preferred A share-basic                                             |   |                                    | 0.05    |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred B share-basic                                             |   |                                    | 0.05    |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred C share-basic                                             |   |                                    | 0.05    |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred D share-basic                                             |   |                                    | 0.05    |   |   |   | - |   |   |   | - |   |
| Pro      forma income (loss) per share attributable to ChinaEdu Corporation      shareholders-diluted    |   |                                    | 0.04    |   |   |   | (0.75 | ) |   |   | 0.66 |   |

| 4. | ACCOUNTS      RECEIVABLE, NET |
|----|-------------------------------|

|                                       |   | December 31, |   |
|--------------------------------------------|--------|-------------------|--------|
|                                       |   | 2008              |   |   | 2009 |   |
|                                       |   | RMB               |   |   | RMB |   |
|                                       |   |              |   |   |   |   |
| Accounts      receivable                   |   |              | 14,854 |   |   |   | 28,334 |   |
| Less:      allowance for doubtful accounts |   |              | -      |   |   |   | - |   |
| Accounts      receivable, net              |   |              | 14,854 |   |   |   | 28,334 |   |

|                            |   | December 31, |   |
|---------------------------------|--------|-------------------|--------|
|                            |   | 2008              |   |   | 2009 |   |
|                            |   | RMB               |   |   | RMB |   |
|                            |   |              |   |   |   |   |
| Balance      as of January 1    |   |              | -      |   |   |   | - |   |
| Charged      to expenses        |   |              | 1,042  |   |   |   | 364 |   |
| Written      off                |   |              | (1,042 | ) |   |   | (364 | ) |
| Balances      as of December 31 |   |              | -      |   |   |   | - |   |

----

| 5. | PREPAID      EXPENSES AND OTHER CURRENT ASSETS |
|----|------------------------------------------------|

|                                   |   | December 31, |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   | 2008              |   |   | 2009 |   |
|                                   |   | RMB               |   |   | RMB |   |
|                                   |   |              |   |   |   |   |
| Staff      advances and others         |   |              | 1,877  |   |   |   | 2,477 |   |
| Advance      to an online school       |   |              | 2,457  |   |   |   | 7,597 |   |
| Prepaid      expenses                  |   |              | 4,052  |   |   |   | 6,718 |   |
| Advances      to suppliers             |   |              | 3,782  |   |   |   | 3,026 |   |
| Interest      receivables              |   |              | 2,078  |   |   |   | 777 |   |
| Value-added      tax rebate receivable |   |              | 6,005  |   |   |   | 4,720 |   |
|                                   |   |              | 20,251 |   |   |   | 25,315 |   |

| 6. | SHORT-TERM  INVESTMENTS |
|----|-----------------------------------|

----

| 7. | LONG-TERM  INVESTMENTS |
|----|----------------------------------|

|   | a) | In      June 2004, the Group obtained a 10% equity interest in Hongcheng Xueyuan      Technology Development Co., Ltd. ("Hongcheng Xueyuan"), a company      established in the PRC that is engaged in the provision of education      services in the PRC, for consideration of RMB100.  In December      2006, the Group increased its equity interest in Hongcheng Xueyuan to 19%      by acquiring an additional 9% equity interest for cash consideration of      RMB1,110. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | In      July 2009, the Group invested RMB3,000 in a trust fund, which was      classified as a cost method investment and carried at  cost. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 8. | LAND      USE RIGHTS, NET |
|----|---------------------------|

|                                |   | December 31, |   |
|-------------------------------------|--------|-------------------|--------|
|                                |   | 2008              |   |   | 2009 |   |
|                                |   | RMB               |   |   | RMB |   |
|                                |   |              |   |   |   |   |
| Land      use rights                |   |              | 30,138 |   |   |   | 30,287 |   |
| Less:      accumulated amortization |   |              | (1,794 | ) |   |   | (2,413 | ) |
| Land      use rights, net           |   |              | 28,344 |   |   |   | 27,874 |   |

----

| 9. | PROPERTY      AND EQUIPMENT, NET |
|----|----------------------------------|

|                                                 |   | December 31, |    |
|------------------------------------------------------|--------|-------------------|---------|
|                                                 |   | 2008              |    |   | 2009 |   |
|                                                 |   | RMB               |    |   | RMB |   |
|                                                 |   |              |    |   |   |   |
| Buildings                                            |   |              | 123,428 |   |   |   | 154,795 |   |
| Furniture,      fixtures and equipment               |   |              | 47,179  |   |   |   | 53,030 |   |
| Motor      vehicles                                  |   |              | 9,630   |   |   |   | 11,016 |   |
| Leasehold      improvements                          |   |              | 13,770  |   |   |   | 13,890 |   |
|                                                 |   |              | 194,007 |   |   |   | 232,731 |   |
| Less:      accumulated depreciation and amortization |   |              | (37,917 | ) |   |   | (50,594 | ) |
|                                                 |   |              | 156,090 |   |   |   | 182,137 |   |
| Construction      in progress                        |   |              | 5,835   |   |   |   | 21,858 |   |
|                                                 |   |              | 161,925 |   |   |   | 203,995 |   |

| 10. | ACQUIRED      INTANGIBLE ASSETS, NET |
|-----|--------------------------------------|

|                                                             |   | Years Ended December 31, |    |
|------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                             |   | 2008                                    |    |   | 2009 |   |
|                                                             |   | Gross                                   |    |   |   |   |   |   |   |   | Net |   |   | Gross |   |   |   |   |   |   |   |   | Net |   |
|                                                             |   | carrying                                |    |   | Accumulated |   |   | Accumulated |   |   | carrying |   |   | carrying |   |   | Accumulated |   |   | Accumulate |   |   | carrying |   |
|                                                             |   | amount                                  |    |   | amortization |   |   | impairment |   |   | amount |   |   | amount |   |   | amortization |   |   | impairment |   |   | amount |   |
|                                                             |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |   | RMB |   |
|                                                             |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired      intangible assets with definite lives              |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service      agreements with universities and high schools       |   |                                    | 89,235  |   |   |   | (9,916 | ) |   |   | (29,057 | ) |   |   | 50,262 |   |   |   | 89,235 |   |   |   | (12,635 | ) |   |   | (29,057 | ) |   |   | 47,543 |   |
| Operating      platforms                                         |   |                                    | 759     |   |   |   | (487 | ) |   |   | - |   |   |   | 272 |   |   |   | 759 |   |   |   | (614 | ) |   |   | - |   |   |   | 145 |   |
| Customer      base                                               |   |                                    | 11,708  |   |   |   | (10,934 | ) |   |   | - |   |   |   | 774 |   |   |   | 11,708 |   |   |   | (11,708 | ) |   |   | - |   |   |   | - |   |
| Online      coursewares                                          |   |                                    | 3,623   |   |   |   | (3,543 | ) |   |   | - |   |   |   | 80 |   |   |   | 3,623 |   |   |   | (3,602 | ) |   |   | - |   |   |   | 21 |   |
| Agency      agreements                                           |   |                                    | 356     |   |   |   | (244 | ) |   |   | - |   |   |   | 112 |   |   |   | 356 |   |   |   | (316 | ) |   |   | - |   |   |   | 40 |   |
| Contract      rights                                             |   |                                    | 16,455  |   |   |   | (5,347 | ) |   |   | - |   |   |   | 11,108 |   |   |   | 17,936 |   |   |   | (6,581 | ) |   |   | - |   |   |   | 11,355 |   |
| Prepaid      operating contracts                                 |   |                                    | 4,464   |   |   |   | (1,011 | ) |   |   |   |   |   |   | 3,453 |   |   |   | 4,464 |   |   |   | (1,263 | ) |   |   | - |   |   |   | 3,201 |   |
| Total      intangible assets definite lives                      |   |                                    | 126,600 |   |   |   | (31,482 | ) |   |   | (29,057 | ) |   |   | 66,061 |   |   |   | 128,081 |   |   |   | (36,719 | ) |   |   | (29,057 | ) |   |   | 62,305 |   |
| Acquired      intangible assets with indefinite lives Trade name |   |                                    | 4,316   |   |   |   | - |   |   |   | - |   |   |   | 4,316 |   |   |   | 4,316 |   |   |   | - |   |   |   | - |   |   |   | 4,316 |   |
| Total                                                            |   |                                    | 130,916 |   |   |   | (31,482 | ) |   |   | (29,057 | ) |   |   | 70,377 |   |   |   | 132,397 |   |   |   | (36,719 | ) |   |   | (29,057 | ) |   |   | 66,621 |   |

----

| 10. | ACQUIRED      INTANGIBLE ASSETS, NET - continued |
|-----|--------------------------------------------------|

|                                       |   | December 31, |   |
|--------------------------------------------|--------|-------------------|--------|
|                                       |   | 2008              |   |   | 2009 |   |
|                                       |   | RMB               |   |   | RMB |   |
|                                       |   |              |   |   |   |   |
| Online      degree programs                |   |              | 46,313 |   |   |   | 45,001 |   |
| Online      tutoring programs              |   |              | 4,645  |   |   |   | 4,422 |   |
| Private      primary and secondary schools |   |              | 3,453  |   |   |   | 3,201 |   |
| International      curriculum programs     |   |              | 15,966 |   |   |   | 13,997 |   |
|                                       |   |              | 70,377 |   |   |   | 66,621 |   |

| Years ending December 31, |   | RMB    |   |
|------------------------------------------|--------|--------|--------|
|                                     |   |   |   |
| 2010                                     |   |   | 4,325  |   |
| 2011                                     |   |   | 3,550  |   |
| 2012                                     |   |   | 3,197  |   |
| 2013                                     |   |   | 3,048  |   |
| 2014                                     |   |   | 2,899  |   |

| 11. | IMPAIRMENT |
|-----|------------|

|   | (a) | Intangible      assets impairment |
|--------|-----|-----------------------------------|

----

| 11.  | IMPAIRMENT      - continued |
|-----------|-----------------------------|

|   | (b) | Goodwill      impairment |
|--------|-----|--------------------------|

----

| 11.  | IMPAIRMENT      - continued |
|-----------|-----------------------------|

|   | (b) | Goodwill      impairment - continued |
|--------|-----|--------------------------------------|

|                                     |   | Online   |   |   | Private primary |   |   | Online   |   |   | International |   |   |   |    |
|------------------------------------------|--------|----------|--------|--------|----------------------|--------|--------|----------|--------|--------|---------------|--------|--------|--------|---------|
|                                     |   | degree   |   |   | and secondary   |   |   | tutoring |   |   | curriculum    |   |   |   |    |
|                                     |   | programs |   |   | schools              |   |   | programs |   |   | programs      |   |   | Total  |    |
|                                     |   | RMB      |   |   | RMB                  |   |   | RMB      |   |   | RMB           |   |   | RMB    |    |
|                                     |   |     |   |   |                 |   |   |     |   |   |          |   |   |   |    |
| Balance      as of January 1, 2008       |   |     | 12,860 |   |                 |   | 1,924  |     |   |   | 14,926        |   |   |   | 43,609  |   |   |   | 73,319 |   |
| Goodwill      acquired during the year   |   |     | -      |   |                 |   | -      |     |   |   | 5,872         |   |   |   | -       |   |   |   | 5,872 |   |
| Goodwill      impairment during the year |   |     | -      |   |                 |   | (1,924 | )        |   |   | -             |   |   |   | (39,112 | ) |   |   | (41,036 | ) |
| Balance      as of December 31, 2008     |   |     | 12,860 |   |                 |   | -      |     |   |   | 20,798        |   |   |   | 4,497   |   |   |   | 38,155 |   |
| Goodwill      acquired during the year   |   |     | -      |   |                 |   | -      |     |   |   | -             |   |   |   | -       |   |   |   | - |   |
| Goodwill      impairment during the year |   |     | -      |   |                 |   | -      |     |   |   | -             |   |   |   | -       |   |   |   | - |   |
| Balance      as of December 31, 2009     |   |     | 12,860 |   |                 |   | -      |     |   |   | 20,798        |   |   |   | 4,497   |   |   |   | 38,155 |   |

| 12. | ACCRUED      EXPENSES AND OTHER CURRENTLIABILITIES |
|-----|----------------------------------------------------|

|                                               |   | December 31, |   |
|----------------------------------------------------|--------|-------------------|--------|
|                                               |   | 2008              |   |   | 2009 |   |
|                                               |   | RMB               |   |   | RMB |   |
|                                               |   |              |   |   |   |   |
| Advances      from students                        |   |              | 10,774 |   |   |   | 9,976 |   |
| Accrued      expenses                              |   |              | 1,918  |   |   |   | 7,742 |   |
| Accrued      professional fees                     |   |              | 5,571  |   |   |   | 3,771 |   |
| Accrued      employee payroll and welfare benefits |   |              | 28,294 |   |   |   | 40,186 |   |
| Other      payables                                |   |              | 5,072  |   |   |   | 7,242 |   |
|                                               |   |              | 51,629 |   |   |   | 68,917 |   |

----

| 13. | OTHER      TAXES PAYABLE |
|-----|--------------------------|

|                                 |   | December 31, |   |
|--------------------------------------|--------|-------------------|--------|
|                                 |   | 2008              |   |   | 2009 |   |
|                                 |   | RMB               |   |   | RMB |   |
|                                 |   |              |   |   |   |   |
| Value-added      taxes payable       |   |              | 5,272  |   |   |   | 4,614 |   |
| Business      taxes payable          |   |              | 6,156  |   |   |   | 10,634 |   |
| Individual      income taxes payable |   |              | 488    |   |   |   | 572 |   |
| Real      estate taxes payable       |   |              | 92     |   |   |   | 80 |   |
|                                 |   |              | 12,008 |   |   |   | 15,900 |   |

| 14. | SHARE      OPTION PLAN |
|-----|------------------------|

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

|                                               |   | 2007   |   |   | 2008   |   |   | 2009   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   |   |   |   |   |   |   |   |   |
| Weighted      average risk-free interest rate      |   |   | 4.45   | %      |   |   | 2.62   | %      |   |   | 2.19 | % |
| Weighted      average expected option life (years) |   |   | 5.0    |   |   |   | 6.0    |   |   |   | 5.3 |   |
| Weighted      average volatility rate              |   |   | 44.1   | %      |   |   | 46.6   | %      |   |   | 49.4 | % |
| Weighted      average dividend yield               |   |   | -      |   |   |   | -      |   |   |   | - |   |

|                                               |   | 2008   |   |
|----------------------------------------------------|--------|--------|--------|
|                                               |   |   |   |
| Weighted      average risk-free interest rate      |   |   | 2.64   | % |
| Weighted      average expected option life (years) |   |   | 6.0    |   |
| Weighted      average volatility rate              |   |   | 44     | % |
| Weighted      average dividend yield               |   |   | -      |   |

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

|   | (1) | Volatility |
|--------|-----|------------|

|   | (2) | Risk-free      interest rate |
|--------|-----|------------------------------|

|   | (3) | Expected      term |
|--------|-----|--------------------|

|   | (4) | Dividend      yield |
|--------|-----|---------------------|

|   | (5) | Exercise      price |
|--------|-----|---------------------|

|   | (6) | Fair      value of underlying ordinary shares |
|--------|-----|-----------------------------------------------|

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

|                                  |   | Outstanding options |       |
|---------------------------------------|--------|--------------------------|------------|
|                                  |   |                     |       |   | Weighted |   |   | Weighted average |   |
|                                  |   |                     |       |   | average |   |   | grant-date |   |
|                                  |   | Number of           |       |   | exercise |   |   | fair value of |   |
|                                  |   | options                  |       |   | price per share |   |   | ordinary shares |   |
|                                  |   |                     |       |   | US$ |   |   | US$ |   |
|                                  |   |                     |       |   |   |   |   |   |   |
| Outstanding      at January 1, 2007   |   |                     | 8,682,600  |   |   |   | 1.22 |   |   |   | 1.10 |   |
| Granted                               |   |                     | 925,000    |   |   |   | 2.85 |   |   |   | 3.05 |   |
| Exercised                             |   |                     | -          |   |   |   | - |   |   |   | - |   |
| Cancelled                             |   |                     | (172,600   | ) |   |   | 1.43 |   |   |   | 1.43 |   |
| Outstanding      at December 31, 2007 |   |                     | 9,435,000  |   |   |   | 1.38 |   |   |   | 1.29 |   |
| Granted                               |   |                     | 1,279,000  |   |   |   | 1.86 |   |   |   | 1.86 |   |
| Exercised                             |   |                     | (306,825   | ) |   |   | 0.85 |   |   |   | 0.72 |   |
| Cancelled                             |   |                     | (413,306   | ) |   |   | 2.77 |   |   |   | 3.00 |   |
| Expired                               |   |                     | (101,069   | ) |   |   | 1.60 |   |   |   | 1.60 |   |
| Outstanding      at December 31, 2008 |   |                     | 9,892,800  |   |   |   | 1.40 |   |   |   | 1.30 |   |
| Granted                               |   |                     | 1,431,000  |   |   |   | 2.12 |   |   |   | 2.12 |   |
| Exercised                             |   |                     | (565,677   | ) |   |   | 1.08 |   |   |   | 0.67 |   |
| Cancelled                             |   |                     | (53,000    | ) |   |   | 2.07 |   |   |   | 2.10 |   |
| Expired                               |   |                     | (1,320     | ) |   |   | 1.60 |   |   |   | 1.60 |   |
| Outstanding      at December 31, 2009 |   |                     | 10,703,803 |   |   |   | 1.39 | * |   |   | 1.44 |   |

|   | * | The      weighted average exercise price per option as of December 31, 2009      has reflected the impact of the exercise price modification in May      2009. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |   | 2007   |   |   | 2008   |   |   | 2009   |   |
|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|    |   | US$    |   |   | US$    |   |   | US$    |   |
|    |   |   |   |   |   |   |   |   |   |
| Options |   |   | 1.28   |   |   |   | 0.89   |   |   |   | 0.63 |   |

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

|                  |   |                    |      |   |                |   |   | Fair value of |   |   | Intrinsic value    |   |
|-----------------------|--------|-------------------------|-----------|--------|---------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
| Grant date       |   | No. of shares |      |   | Exercise price |   |   | ordinary shares    |   |   | at grant date |   |
|                  |   |                    |      |   |                |   |   |                    |   |   |                    |   |
| May      18, 2009     |   |                    | 400,000   |   |                | US$    | 1.80   |                    |   | US$    | 1.80                    | **     |   |   | - |   |
| December      8, 2009 |   |                    | 1,031,000 |   |                |   | 2.25   |                    |   |   | 2.25                    | **     |   |   | - |   |

|                |   |                    |      |   |                |   |   | Fair value of |   |   | Intrinsic value    |   |
|---------------------|--------|-------------------------|-----------|--------|---------------------|--------|--------|-------------------------|--------|--------|-------------------------|--------|
| Repricing date |   | No. of shares |      |   | Exercise price |   |   | ordinary shares    |   |   | at grant date |   |
|                |   |                    |      |   |                |   |   |                    |   |   |                    |   |
| May      18, 2009   |   |                    | 1,255,500 |   |                | US$    | 1.80   |                    |   | US$    | 1.80                    | **     |   |   | - |   |

|  | ** | Determined      based on the closing market price of the ADS, as quoted on the NASDAQ      Global Market on the grant dates and repricing date, divided by      three. |
|--|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                         |   | Options outstanding |       |                  | Options      exercisable |                |
|------------------------------|--------|--------------------------|------------|-----------------------|--------------------------|---------------------|
|                         |   |                     |       | Weighted              |                     |                |   |   | Weighted |   |   |   |   | Weighted |   |   |   |   | Weighted |   |
|                         |   |                     |       | average               |                     | Weighted            |   |   | average |   |   |   |   | average |   | Weighted |   |   | average |   |
|                         |   | Number                   |       | remaining             |                     | average             |   |   | intrinsic |   |   | Number |   | remaining |   | average |   |   | intrinsic |   |
|                         |   | outstanding              |       | contractual life |                     | exercise price |   |   | value |   |   | exercisable |   | contractual life |   | exercise price |   |   | value |   |
|                         |   |                     |       |                  |                     | US$                 |   |   | US$ |   |   |   |   |   |   | US$ |   |   | US$ |   |
|                         |   |                     |       |                  |                     |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      exercise price: |   |                     |       |                  |                     |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| US$                          |   |                     |       |                  |                     |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 0.50                         |   |                     | 846,000    |                  | 2.80 years          |                |   | 0.50 |   |   |   | 1.95 |   |   |   | 846,000 |   | 2.80 years |   |   | 0.50 |   |   |   | 1.95 |   |
| 0.86                         |   |                     | 1,092,000  |                  | 4.93 years          |                |   | 0.86 |   |   |   | 1.59 |   |   |   | 1,092,000 |   | 4.93 years |   |   | 0.86 |   |   |   | 1.59 |   |
| 1.00                         |   |                     | 410,000    |                  | 1.58 years          |                |   | 1.00 |   |   |   | 1.45 |   |   |   | 410,000 |   | 1.58 years |   |   | 1.00 |   |   |   | 1.45 |   |
| 1.09-1.85                    |   |                     | 7,221,570  |                  | 6.12 years          |                |   | 1.46 |   |   |   | 0.99 |   |   |   | 5,918,970 |   | 5.58 years |   |   | 1.41 |   |   |   | 1.04 |   |
| 1.86-2.85                    |   |                     | 1,134,233  |                  | 9.77 years          |                |   | 2.23 |   |   |   | 0.22 |   |   |   | 34,411 |   | 8.06 years |   |   | 2.07 |   |   |   | 0.38 |   |
|                         |   |                     | 10,703,803 |                  | 5.95 years          |                |   | 1.39 |   |   |   | 1.06 |   |   |   | 8,301,381 |   | 5.02 years |   |   | 1.23 |   |   |   | 1.22 |   |

----

| 14. | SHARE      OPTION PLAN - continued |
|-----|------------------------------------|

|                                                                                         |   | 2007   |   |   | 2008   |   |    | 2009   |   |
|----------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|
|                                                                                         |   | RMB    |   |   | RMB    |   |    | RMB    |   |
|                                                                                         |   |   |   |   |   |   |    |   |   |
| Net      income (loss) attributable to                                                       |   |   |   |   |   |   |    |   |   |
| ChinaEdu      Corporation shareholders, as reported                                          |   |   | 2,487  |   |   |   | (43,019 | )      |   |   | 34,779 |   |
| Add:      Share-based compensation as reported                                               |   |   | 3,643  |   |   |   | 5,231   |   |   |   | 7,416 |   |
| Less:      Share-based compensation determined using the fair value      method              |   |   | (7,108 | )      |   |   | (5,686  | )      |   |   | (7,416 | ) |
| Pro      forma net income (loss) attributable to ChinaEdu Corporation      shareholders      |   |   | (978   | )      |   |   | (43,474 | )      |   |   | 34,779 |   |
| Basic      income (loss) per share attributable to ChinaEdu Corporation      shareholders:   |   |   |   |   |   |   |    |   |   |   |   |   |
| As      reported                                                                             |   |   | 0.06   |   |   |   | (0.75   | )      |   |   | 0.71 |   |
| Pro      forma                                                                               |   |   | (0.02  | )      |   |   | (0.75   | )      |   |   | 0.71 |   |
| Diluted      income (loss) per share attributable to ChinaEdu Corporation      shareholders: |   |   |   |   |   |   |    |   |   |   |   |   |
| As      reported                                                                             |   |   | 0.05   |   |   |   | (0.75   | )      |   |   | 0.66 |   |
| Pro      forma                                                                               |   |   | (0.02  | )      |   |   | (0.75   | )      |   |   | 0.66 |   |

----

| 15. | INCOME      TAXES |
|-----|-------------------|

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

| PRC entities            |   | 2007   |   |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | 2011   |   |
|------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMR      Web(1)              |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Technology(1) |   |   | 15.0   | %      |   |   | 25.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Liye(1)Web(1) |   |   | 7.5    | %      |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Hongcheng      Education(1)  |   |   | 0.0    | %      |   |   | 7.5    | %      |   |   | 7.5    | %      |   |   | 7.5    | % |   |   | 15.0 | % |
| Beijing      Xuezhi          |   |   | 7.5    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| WITT      Education          |   |   | 7.5    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| Zhongnongda      Network (1) |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Beijing      Mingdao         |   |   | 0.0    | %      |   |   | 25.0   | %      |   |   | 25.0   | %      |   |   | 25.0   | % |   |   | 25.0 | % |
| Beiyuda(1)                   |   |   | 0.0    | %      |   |   | 0.0    | %      |   |   | 0.0    | %      |   |   | 7.5    | % |   |   | 15.0 | % |
| Dongcai(1)                   |   |   | 7.5    | %      |   |   | 15.0   | %      |   |   | 15.0   | %      |   |   | 15.0   | % |   |   | 15.0 | % |
| Chongda                      |   |   | 0.0    | %      |   |   | 12.5   | %      |   |   | 12.5   | %      |   |   | 12.5   | % |   |   | 25.0 | % |
| Gotop      Hongcheng (1)     |   |   | 33.0   | %      |   |   | 0.0    | %      |   |   | 7.5    | %      |   |   | 7.5    | % |   |   | 7.5 | % |

|   | (1) | The      new HNTE status obtained by CMR Web, Hongcheng Technology, Hongcheng Liye,      Hongcheng Education, Zhongnongda Network, Beiyuda, Dongcai and Gotop      Hongcheng under the New EIT Law is valid for three years and qualifying      entities can then apply to renew for an additional three years provided      their business operations continue to qualify for the new HNTE status. The      Group believes it is highly likely that its qualifying entities will      continue to obtain the renewal in thefuture. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

|              |   | Year ended December 31, |   |
|-------------------|--------|----------------------------------------|--------|
|              |   | 2007                                   |   |   | 2008 |   |   | 2009 |   |
|              |   | RMB                                    |   |   | RMB |   |   | RMB |   |
|              |   |                                   |   |   |   |   |   |   |   |
| Current      tax  |   |                                   | 16,286 |   |   |   | 11,860 |   |   |   | 18,981 |   |
| Deferred      tax |   |                                   | (1,283 | ) |   |   | (8,387 | ) |   |   | 306 |   |
|              |   |                                   | 15,003 |   |   |   | 3,473 |   |   |   | 19,287 |   |

|                                                  |   | December 31, |   |
|-------------------------------------------------------|--------|-------------------|--------|
|                                                  |   | 2008              |   |   | 2009 |   |
|                                                  |   | RMB               |   |   | RMB |   |
|                                                  |   |              |   |   |   |   |
| Current      deferred tax assets:                     |   |              |   |   |   |   |
| Deferred      revenues                                |   |              | 3,986  |   |   |   | 3,309 |   |
| Total      current deferred tax assets                |   |              | 3,986  |   |   |   | 3,309 |   |
| Non-current      deferred tax assets                  |   |              |   |   |   |   |   |   |
| Acquired      intangible assets                       |   |              | 1,204  |   |   |   | 804 |   |
| Deferred      revenues                                |   |              | 219    |   |   |   | 179 |   |
| Net      operating loss carryforwards                 |   |              | 3,129  |   |   |   | 4,068 |   |
| Total      non-current deferred tax assets            |   |              | 4,552  |   |   |   | 5,051 |   |
| Less:      valuation allowance on deferred tax assets |   |              | (2,456 | ) |   |   | (3,510 | ) |
| Total      net non-current deferred tax assets        |   |              | 2,096  |   |   |   | 1,541 |   |
| Non-current      deferred tax liabilities             |   |              |   |   |   |   |   |   |
| Property      and equipment                           |   |              | 249    |   |   |   | 109 |   |
| Acquired      intangible assets                       |   |              | 10,820 |   |   |   | 10,034 |   |
| Total      deferred tax liabilities                   |   |              | 11,069 |   |   |   | 10,143 |   |

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

|                                                   |   | Years ended December 31, |   |
|--------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                   |   | 2007                                    |   |   | 2008 |   |   | 2009 |   |
|                                                   |   | %                                       |   |   | % |   |   | % |   |
|                                                   |   |                                    |   |   |   |   |   |   |   |
| Statutory      rate                                    |   |                                    | 33     |   |   |   | 25 |   |   |   | 25 |   |
| Tax      holiday                                       |   |                                    | (42    | ) |   |   | 406 |   |   |   | (15 | ) |
| Effect      on tax rates in different tax jurisdiction |   |                                    | 7      |   |   |   | (116 | ) |   |   | 5 |   |
| Permanent      book-tax differences                    |   |                                    | 27     |   |   |   | (356 | ) |   |   | 3 |   |
| Changes      in valuation allowance                    |   |                                    | -      |   |   |   | (34 | ) |   |   | 1 |   |
| Increased      in unrecognized tax benefit             |   |                                    | 1      |   |   |   | (36 | ) |   |   | 3 |   |
| Effect      of new tax law                             |   |                                    | 9      |   |   |   | - |   |   |   | - |   |
| Effective      tax rates                               |   |                                    | 35     |   |   |   | (111 | ) |   |   | 22 |   |

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

|                                                                                                      |   | Years ended December 31, |    |
|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                      |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |
|                                                                                                      |   | RMB                                     |    |   | RMB |   |   | RMB |   |
|                                                                                                      |   |                                    |    |   |   |   |   |   |   |
| Net      income (loss) attributable to ChinaEdu Corporation shareholders, as      reported                |   |                                    | 2,487   |   |   |   | (43,019 | ) |   |   | 34,779 |   |
| Less:      Increase in provision for income taxes                                                         |   |                                    | (18,006 | ) |   |   | (10,862 | ) |   |   | (12,530 | ) |
| Pro      forma net income (loss) attributable to ChinaEdu Corporation      shareholders                   |   |                                    | (15,519 | ) |   |   | (53,881 | ) |   |   | 22,249 |   |
| Pro      forma net income (loss) per share attributable to ChinaEdu Corporation      shareholders-basic   |   |                                    | (0.37   | ) |   |   | (0.93 | ) |   |   | 0.46 |   |
| Pro      forma net income (loss) per preferred A share-basic                                              |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred B share-basic                                              |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred C share-basic                                              |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per preferred D share-basic                                              |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Pro      forma net income (loss) per share attributable to ChinaEdu Corporation      shareholders-diluted |   |                                    | (0.37   | ) |   |   | (0.93 | ) |   |   | 0.42 |   |

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

|                                                              |   | RMB    |   |
|-------------------------------------------------------------------|--------|--------|--------|
|                                                              |   |   |   |
| Balance      at January 1, 2008                                   |   |   | 4,332  |   |
| Additions      based on tax positions related to the current year |   |   | 872    |   |
| Additions      for tax positions of prior years                   |   |   | -      |   |
| Reductions      for tax positions of current year                 |   |   | -      |   |
| Audit      settlement paid in current year                        |   |   | -      |   |
| Other      - interest and penalty                                 |   |   | 269    |   |
| Balance      at January 1, 2009                                   |   |   | 5,473  |   |
| Additions      based on tax positions related to the current year |   |   | 1,289  |   |
| Additions      for tax positions of prior years                   |   |   | -      |   |
| Reductions      for tax positions of current year                 |   |   | -      |   |
| Audit      settlement paid in current year                        |   |   | -      |   |
| Other      - interest and penalty                                 |   |   | 965    |   |
| Balance      at December 31, 2009                                 |   |   | 7,727  |   |

----

| 15. | INCOME      TAXES - continued |
|-----|-------------------------------|

----

| 16. | NET      INCOME (LOSS) PER SHARE |
|-----|----------------------------------|

|                                                                                                                                      |   | Years ended December 31, |       |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                                                                                      |   | 2007                                    |       |   | 2008 |   |   | 2009 |   |
|                                                                                                                                      |   | RMB                                     |       |   | RMB |   |   | RMB |   |
|                                                                                                                                      |   |                                    |       |   |   |   |   |   |   |
| Net      income (loss)-basic (numerator):                                                                                                 |   |                                    |       |   |   |   |   |   |   |
| Net      income (loss) attributable to ChinaEdu Corporation      shareholders                                                             |   |                                    | 1,215      |   |   |   | (43,019 | ) |   |   | 34,779 |   |
| Net      income allocated to Series A preferred shares                                                                                    |   |                                    | 295        |   |   |   | - |   |   |   | - |   |
| Net      income allocated to Series B preferred shares                                                                                    |   |                                    | 682        |   |   |   | - |   |   |   | - |   |
| Net      income allocated to Series C preferred shares                                                                                    |   |                                    | 190        |   |   |   | - |   |   |   | - |   |
| Net      income allocated to Series D preferred shares                                                                                    |   |                                    | 105        |   |   |   | - |   |   |   | - |   |
| Net      income (loss) attributable to ChinaEdu Corporation shareholders-diluted      (numerator)                                         |   |                                    | 2,487      |   |   |   | (43,019 | ) |   |   | 34,779 |   |
| Shares      (denominator):                                                                                                                |   |                                    |       |   |   |   |   |   |   |   |   |   |
| Weighted      average ordinary shares outstanding used in computing basic net income      (loss) per share                                |   |                                    | 20,585,074 |   |   |   | 57,679,504 |   |   |   | 48,844,606 |   |
| Weighted      average preferred A shares using if-converted method                                                                        |   |                                    | 4,991,507  |   |   |   | - |   |   |   | - |   |
| Weighted      average preferred B shares using if-converted method                                                                        |   |                                    | 11,561,814 |   |   |   | - |   |   |   | - |   |
| Weighted      average preferred C shares using if-converted method                                                                        |   |                                    | 3,221,030  |   |   |   | - |   |   |   | - |   |
| Weighted      average preferred D shares using if-converted method                                                                        |   |                                    | 1,787,745  |   |   |   | - |   |   |   | - |   |
| Incremental      weighted average ordinary shares from assumed conversions of share option      and warrants using treasury stock method: |   |                                    |       |   |   |   |   |   |   |   |   |   |
| Employee      options (treasury share effect)                                                                                             |   |                                    | 3,714,016  |   |   |   | - |   |   |   | 3,262,419 |   |
| Non-employee      options (treasury share effect)                                                                                         |   |                                    | 436,936    |   |   |   | - |   |   |   | 331,920 |   |
| Warrants      (treasury share effect)                                                                                                     |   |                                    | 1,024,062  |   |   |   | - |   |   |   | 80,738 |   |
| Weighted      average ordinary shares outstanding used in computing diluted net income      (loss) per share                              |   |                                    | 47,322,184 |   |   |   | 57,679,504 |   |   |   | 52,519,683 |   |
| Net      income (loss) per share attributable to ChinaEdu Corporation      shareholders-basic                                             |   |                                    | 0.06       |   |   |   | (0.75 | ) |   |   | 0.71 |   |
| Net      income (loss) per preferred A share-basic                                                                                        |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |
| Net      income (loss) per preferred B share-basic                                                                                        |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |
| Net      income (loss) per preferred C share-basic                                                                                        |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |
| Net      income (loss) per preferred D share-basic                                                                                        |   |                                    | 0.06       |   |   |   | - |   |   |   | - |   |
| Net      income (loss) per share attributable to ChinaEdu Corporation      shareholders-diluted                                           |   |                                    | 0.05       |   |   |   | (0.75 | ) |   |   | 0.66 |   |

----

| 16. | NET      INCOME (LOSS) PER SHARE - continued |
|-----|----------------------------------------------|

|                                                          |   | Years ended December 31, |   |
|---------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                          |   | 2007                                    |   |   | 2008 |   |   | 2009 |   |
|                                                          |   |                                    |   |   |   |   |   |   |   |
| Outstanding      employee options to purchase ordinary shares |   |                                    | -      |   |   |   | 9,892,800 |   |   |   | - |   |
| Outstanding      warrants to purchase ordinary shares         |   |                                    | -      |   |   |   | 1,933,677 |   |   |   | - |   |

| 17. | WARRANTS |
|-----|----------|

----

| 17. | WARRANTS      - continued |
|-----|---------------------------|

| 18. | SHARE      REPURCHASES |
|-----|------------------------|

----

| 19. | MAINLAND      CHINA CONTRIBUTION PLAN AND PROFITAPPROPRIATION |
|-----|---------------------------------------------------------------|

| 20. | COMMITMENTS |
|-----|-------------|

|   | (a) | Pursuant      to a contract signed between Hongcheng Technology and another university,      Hongcheng Technology has committed to contribute RMB35,000 for the use of      the university's education resources.  As of December 31, 2009,      the remaining commitment was approximately RMB1,000, which is expected to      be paid within 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Pursuant      to a contract signed between Hongcheng Education and a middle school for      the use of the school's education resources in 2005, Hongcheng Education      has committed to pay a royalty fee of RMB650 per annum from 2005 to 2007,      RMB1,000 per annum from 2008 to 2010, and RMB1,200 per annum from 2011 to      2024.  The aggregate fees committed through 2024 were recognized      as expenses on a straight-line basis, and the difference between the      amount paid and the amount recognized reported as deferred commitment      fees.  For the years ended December 31, 2008 and 2009, the      amounts reported as expenses were RMB1,088 during both      periods.  The amounts recorded as deferred commitment fees as of      December 31, 2008 and 2009 were RMB1,400 and RMB1,488,      respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      Group leases certain office premises under non-cancelable operating leases      through 2014.  Rent expenses under operating leases for 2007,      2008, and 2009 were RMB9,088, RMB10,814 and RMB10,355,      respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years ending December 31 |   | RMB    |   |
|-----------------------------------------|--------|--------|--------|
|                                    |   |   |   |
| 2010                                    |   |   | 7,041  |   |
| 2011                                    |   |   | 4,017  |   |
| 2012                                    |   |   | 2,684  |   |
| 2013                                    |   |   | 1,124  |   |
| 2014                                    |   |   | 705    |   |
|                                    |   |   | 15,571 |   |

----

| 20. | COMMITMENTS      - continued |
|-----|------------------------------|

|   | (d) | As      of December 31, 2009, the Group had commitments totaling RMB75,834 for the      expansion of the schools in Anqing, Pingdingshan and Jingzhou, which      included capital commitments for on-going construction in progress of      RMB16,654.  Since the construction of Jinzhou School is delayed,      the Group is unable to make reasonable estimates regarding the timing of      capital commitments for Jingzhou School. The capital commitments totaling      RMB11,082 of Anqing and Pingdingshan are expected to be paid within      2010. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 21. | SEGMENT      AND GEOGRAPHIC INFORMATION |
|-----|-----------------------------------------|

|   | (i) | Online      degree programs, which enables leading higher education institutions in      the PRC to operate and grow their online degree-granting      programs.  The Group provides online education technical and      consulting services to these institutions.  In addition, the      Group also licenses online education technology platform and courseware to      them. Moreover, the Group provides recruiting, enrollment marketing and      other student services through its learning centers network to the online      degree programs of leading Chineseuniversities. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Online      tutoring programs, which provides online tutoring services for students to      obtain review course through the onlineprogram. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Private      primary and secondary schools, which provide educational services to the      students through traditional classroom  education. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | International      curriculum programs, which includes an integrated English language      learning service for high schools in the PRC and international polytechnic      curriculum programs through traditional classroom    education. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 21. | SEGMENT      AND GEOGRAPHIC INFORMATION -continued |
|-----|----------------------------------------------------|

|                                       |   | December 31, |    |
|--------------------------------------------|--------|-------------------|---------|
|                                       |   | 2008              |    |   | 2009 |   |
|                                       |   | RMB               |    |   | RMB |   |
|                                       |   |              |    |   |   |   |
| Assets                                     |   |              |    |   |   |   |
| Online      degree programs                |   |              | 516,138 |   |   |   | 605,210 |   |
| Online      tutoring programs              |   |              | 44,118  |   |   |   | 50,662 |   |
| Private      primary and secondary schools |   |              | 94,920  |   |   |   | 141,669 |   |
| International      curriculum programs     |   |              | 40,949  |   |   |   | 31,818 |   |
| Reconciling      amounts                   |   |              | 222,555 |   |   |   | 106,933 |   |
| Total      assets                          |   |              | 918,680 |   |   |   | 936,292 |   |
| Significant      reconciling item:         |   |              |    |   |   |   |   |   |
| Corporate      assets                      |   |              | 222,555 |   |   |   | 106,933 |   |
| Liabilities                                |   |              |    |   |   |   |   |   |
| Online      degree programs                |   |              | 101,215 |   |   |   | 93,527 |   |
| Online      tutoring programs              |   |              | 30,332  |   |   |   | 36,440 |   |
| Private      primary and secondary schools |   |              | 71,596  |   |   |   | 117,664 |   |
| International      curriculum programs     |   |              | 26,992  |   |   |   | 14,914 |   |
| Reconciling      amounts                   |   |              | 14,401  |   |   |   | 11,594 |   |
| Total      liabilities                     |   |              | 244,536 |   |   |   | 274,139 |   |
| Significant      reconciling item:         |   |              |    |   |   |   |   |   |
| Corporate      liabilities                 |   |              | 14,401  |   |   |   | 11,594 |   |

----

| 21. | SEGMENT      AND GEOGRAPHIC INFORMATION -continued |
|-----|----------------------------------------------------|

|                                       |   | Years ended December 31, |    |
|--------------------------------------------|--------|-----------------------------------------|---------|
|                                       |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |
|                                       |   | RMB                                     |    |   | RMB |   |   | RMB |   |
|                                       |   |                                    |    |   |   |   |   |   |   |
| Net      revenue                           |   |                                    |    |   |   |   |   |   |   |
| Online      degree programs                |   |                                    | 202,185 |   |   |   | 255,388 |   |   |   | 285,178 |   |
| Online      tutoring programs              |   |                                    | 18,013  |   |   |   | 15,436 |   |   |   | 19,584 |   |
| Private      primary and secondary schools |   |                                    | 13,356  |   |   |   | 19,289 |   |   |   | 30,627 |   |
| International      curriculum programs     |   |                                    | 31,434  |   |   |   | 27,607 |   |   |   | 19,317 |   |
| Total      net revenue                     |   |                                    | 264,988 |   |   |   | 317,720 |   |   |   | 354,706 |   |
| Cost      of revenue                       |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Online      degree programs                |   |                                    | 58,027  |   |   |   | 76,224 |   |   |   | 95,428 |   |
| Online      tutoring programs              |   |                                    | 3,875   |   |   |   | 4,017 |   |   |   | 5,713 |   |
| Private      primary and secondary schools |   |                                    | 10,944  |   |   |   | 17,572 |   |   |   | 26,109 |   |
| International      curriculum programs     |   |                                    | 23,503  |   |   |   | 19,920 |   |   |   | 11,112 |   |
| Total      cost of revenue                 |   |                                    | 96,349  |   |   |   | 117,733 |   |   |   | 138,362 |   |
| Gross      profit                          |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Online      degree programs                |   |                                    | 144,158 |   |   |   | 179,164 |   |   |   | 189,750 |   |
| Online      tutoring programs              |   |                                    | 14,138  |   |   |   | 11,419 |   |   |   | 13,871 |   |
| Private      primary and secondary schools |   |                                    | 2,412   |   |   |   | 1,717 |   |   |   | 4,518 |   |
| International      curriculum programs     |   |                                    | 7,931   |   |   |   | 7,687 |   |   |   | 8,205 |   |
| Total      gross profit                    |   |                                    | 168,639 |   |   |   | 199,987 |   |   |   | 216,344 |   |

----

| 21. | SEGMENT      AND GEOGRAPHIC INFORMATION -continued |
|-----|----------------------------------------------------|

|                                                                |   | Years ended December 31, |    |
|---------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |
|                                                                |   | RMB                                     |    |   | RMB |   |   | RMB |   |
| Third      parties:                                                 |   |                                    |    |   |   |   |   |   |   |
| Online      education technical, consulting and recruiting services |   |                                    | 40,801  |   |   |   | 45,618 |   |   |   | 64,517 |   |
| Traditional      classroom education services                       |   |                                    | 44,790  |   |   |   | 46,896 |   |   |   | 49,944 |   |
| Online      tutoring services                                       |   |                                    | 18,013  |   |   |   | 15,436 |   |   |   | 19,584 |   |
|                                                                |   |                                    | 103,604 |   |   |   | 107,950 |   |   |   | 134,045 |   |
| Related      parties:                                               |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Online      education technical, consulting and recruiting services |   |                                    | 161,384 |   |   |   | 209,770 |   |   |   | 220,661 |   |
| Traditional      classroom education services                       |   |                                    | -       |   |   |   | - |   |   |   | - |   |
| Online      tutoring services                                       |   |                                    | -       |   |   |   | - |   |   |   | - |   |
|                                                                |   |                                    | 161,384 |   |   |   | 209,770 |   |   |   | 220,661 |   |
|                                                                |   |                                    | 264,988 |   |   |   | 317,720 |   |   |   | 354,706 |   |

|                                       |   | December      31, |   |
|--------------------------------------------|--------|-------------------|--------|
|                                       |   | 2008              |   |   | 2009 |   |
|                                       |   | RMB               |   |   | RMB |   |
| Acquired      intangible assets, net:      |   |              |   |   |   |   |
| Online      degree programs                |   |              | 46,313 |   |   |   | 45,001 |   |
| Online      tutoring programs              |   |              | 4,645  |   |   |   | 4,422 |   |
| Private      primary and secondary schools |   |              | 3,453  |   |   |   | 3,201 |   |
| International      curriculum programs     |   |              | 15,966 |   |   |   | 13,997 |   |
|                                       |   |              | 70,377 |   |   |   | 66,621 |   |
| Goodwill:                                  |   |              |   |   |   |   |   |   |
| Online      degree programs                |   |              | 12,860 |   |   |   | 12,860 |   |
| Online      tutoring programs              |   |              | 20,798 |   |   |   | 20,798 |   |
| Private      primary and secondary schools |   |              | -      |   |   |   | - |   |
| International      curriculum programs     |   |              | 4,497  |   |   |   | 4,497 |   |
|                                       |   |              | 38,155 |   |   |   | 38,155 |   |

----

| 22. | RELATED      PARTY TRANSACTIONS |
|-----|---------------------------------|

|                                                                             |   | Years ended December 31, |    |
|----------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                             |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |
|                                                                             |   | RMB                                     |    |   | RMB |   |   | RMB |   |
|                                                                             |   |                                    |    |   |   |   |   |   |   |
| Online      education technical, consulting and recruiting services:             |   |                                    |    |   |   |   |   |   |   |
| Online      Education School of Dongbei University of Finance and      Economics |   |                                    | 34,132  |   |   |   | 42,403 |   |   |   | 42,701 |   |
| Online      Education School of Renmin University of China                       |   |                                    | 54,743  |   |   |   | 70,197 |   |   |   | 71,722 |   |
| Online      Education School of Chongqing University                             |   |                                    | 19,391  |   |   |   | 28,719 |   |   |   | 34,474 |   |
| Online      Education School of China Agricultural University                    |   |                                    | 43,995  |   |   |   | 48,315 |   |   |   | 47,335 |   |
| Online      Education School of Beijing Language and CultureUniversity           |   |                                    | 9,123   |   |   |   | 19,153 |   |   |   | 23,907 |   |
| Online      Education School of Central University of Finance and      Economics |   |                                    | -       |   |   |   | 983 |   |   |   | 104 |   |
| Online      Education School of Guangxi Radio and TV University                  |   |                                    | -       |   |   |   | - |   |   |   | 152 |   |
| Asset      Management Company of Beijing Forestry University                     |   |                                    | -       |   |   |   | - |   |   |   | 266 |   |
| Total                                                                            |   |                                    | 161,384 |   |   |   | 209,770 |   |   |   | 220,661 |   |

|                                                                             |   | December 31, |   |
|----------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                             |   | 2008              |   |   | 2009 |   |
|                                                                             |   | RMB               |   |   | RMB |   |
|                                                                             |   |              |   |   |   |   |
| Online      Education School of Dongbei University of Finance and      Economics |   |              | 7,657  |   |   |   | 8,998 |   |
| Online      Education School of Renmin University of China                       |   |              | 17,395 |   |   |   | 17,594 |   |
| Online      Education School of Chongqing University                             |   |              | 8,668  |   |   |   | 7,741 |   |
| Online      Education School of China Agricultural University                    |   |              | 11,815 |   |   |   | 9,896 |   |
| Online      Education School of Beijing Language and CultureUniversity           |   |              | 10,080 |   |   |   | 8,932 |   |
|                                                                             |   |              | 55,615 |   |   |   | 53,161 |   |

----

| 22. | RELATED      PARTY TRANSACTIONS - continued |
|-----|---------------------------------------------|

|                                                                                      |   | December 31, |    |
|-------------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                      |   | 2008              |    |   | 2009 |   |
|                                                                                      |   | RMB               |    |   | RMB |   |
|                                                                                      |   |              |    |   |   |   |
| Schools      owned by the noncontrolling shareholders of the Company's      subsidiaries: |   |              |    |   |   |   |
| Online      Education School of Dongbei University of Finance and Economics      (i)      |   |              | 28,275  |   |   |   | 22,176 |   |
| Online      Education School of Renmin University of China (i)                            |   |              | 65,792  |   |   |   | 90,746 |   |
| Online      Education School of Chongqing University (i)                                  |   |              | 30,312  |   |   |   | 46,727 |   |
| Online      Education School of China Agricultural University of China    (i)             |   |              | 3,617   |   |   |   | 3 |   |
| Online      Education School of Beijing Language and Culture University      (i)          |   |              | 20,397  |   |   |   | 17,120 |   |
| Online      Education School of Central University of Finance and Economics      (i)      |   |              | 49      |   |   |   | - |   |
| Former      noncontrolling shareholders of the Company's subsidiaries:                    |   |              |    |   |   |   |   |   |
| Shanghai      Guangdian Communication Network Co., Ltd.                                   |   |              | 1,000   |   |   |   | - |   |
| Company      owned by shareholder or management:                                          |   |              |    |   |   |   |   |   |
| Wellent      Institute of Education International (Asia) Limited                          |   |              | 1,000   |   |   |   | - |   |
| Equity      owners of the Company's subsidiaries:                                         |   |              |    |   |   |   |   |   |
| Wu      Jiayong                                                                           |   |              | 30      |   |   |   | 30 |   |
|                                                                                      |   |              | 150,472 |   |   |   | 176,802 |   |

|   | (i) | The      fees for services provided to the online schools are collected on a      periodic basis.  The excess amount of revenue recognized over      the cash collection is recorded as amounts due from related      parties. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                          |   | December 31, |   |
|-----------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                          |   | 2008              |   |   | 2009 |   |
|                                                                                          |   | RMB               |   |   | RMB |   |
|                                                                                          |   |              |   |   |   |   |
| Former      owner of an entity consolidated by the Company:                                   |   |              |   |   |   |   |
| Fourth      Middle School of Anqing (ii)                                                      |   |              | 3,632  |   |   |   | 2,065 |   |
| Schools      owned by the noncontrolling shareholders of the Company's      subsidiaries:     |   |              |   |   |   |   |   |   |
| Online      Education School of Dongbei University of Finance and Economics      (i)          |   |              | 22,018 |   |   |   | 20,709 |   |
| Online      Education School of Chongqing University (i)                                      |   |              | 79     |   |   |   | 204 |   |
| Online      Education School of Central University of Finance and Economics      (i)          |   |              | 40     |   |   |   | 1,003 |   |
| Online      Education School of Guangxi Radio and TV University (i)                           |   |              | -      |   |   |   | 19 |   |
| Online      Education School  of Beijing Language and Culture University      (iii) |   |              | -      |   |   |   | 1,668 |   |
|                                                                                          |   |              | 25,769 |   |   |   | 25,668 |   |

|   | (i) | The      amounts represented cash collected on behalf of the related      parties. |
|--------|-----|------------------------------------------------------------------------------------|

|   | (ii) | The      amount primarily represents royalty fees to be  paid. |
|--------|------|----------------------------------------------------------------|

|   | (iii) | The      amount primarily represents declared dividend which will be paid to      related party. |
|--------|-------|--------------------------------------------------------------------------------------------------|

| 23. | STATUTORY      RESERVES |
|-----|-------------------------|

----

| 23. | STATUTORY      RESERVES - continued |
|-----|-------------------------------------|

| 24. | RESTRICTED      NET ASSETS |
|-----|----------------------------|

----

| 25. | NONCONTROLLING      INTERESTS |
|-----|-------------------------------|

|                                                                                |         | Date of incorporation |         | Percentage of   |         | Percentage of            |         |                                       |   |
|------------------------------------------------------------------------------------------|--------------|---------------------------------|--------------|----------------------|--------------|-------------------------------|--------------|--------------------------------------------|--------|
| Name                                                                                     |         | or acquisition             |         | legal ownership |         | noncontrolling interests |         | Principal activities                  |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| CMR      Web-learning Co., Ltd. ("CMR Web")                                              |         | July      29, 1999              |         | 70%                  |         | 30%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Dalian      Dongcai Technology Co., Ltd. ("Dongcai")                                     |         | June      4, 2003               |         | 70%                  |         | 30%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Chongqing      Chongda Yuanxing Co., Ltd. ("Chongda")                                    |         | December      24, 2003          |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Beijing      Beiyuda Education Technology Co., Ltd. ("Beiyuda")                          |         | September      26, 2006         |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Beijing      Mingdaoyuan Technology Co., Ltd. ("Beijing Mingdao")                        |         | March      27, 2007             |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Shanghai      Shangcai Education Technology Co., Ltd. ("Shanghai    Shangcai")           |         | April      18, 2008             |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Dongcai      Online Training Center ("Dongcai Online")                                   |         | July      10, 2008              |         | 70%                  |         | 30%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Beijing      Zhonglin Technology Co., Ltd. ("Zhonglin")                                  |         | November      3, 2008           |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Guangxi      Hongcheng Times Technology Development Co., Ltd. ("Guangxi      Hongcheng") |         | February      10, 2009          |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Fuzhou      Haojiaoshi Distance Education Service Co., Ltd. ("Fuzhou Good      Teacher") |         | December      7, 2009           |         | 51%                  |         | 49%                           |         | Online      degree program                 |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Jingzhou      Tianchang Investment Co., Ltd. ("Tianchang")                               |         | September      6, 2005          |         | 72.5%                |         | 27.5%                         |         | Private      primary and secondary schools |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Jingzhou      Middle School South Campus ("South Campus")                                |         | December      28, 2005          |         | 54%                  |         | 46%                           |         | Private      primary and secondary schools |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Beijing      Distance Education Technology Co., Ltd. ("Yuancheng      Education")        |    | March      31, 2006             |    | 65%                  |    | 35%                           |    | Online      tutoring program               |   |
|                                                                                     |         |                            |         |                 |         |                          |         |                                       |   |
| Zhong      Nongda Networks Development Co., Ltd. ("Zhongnongda    Networks")             |         | October      30, 2001           |         | 55%                  |         | 45%                           |         | Online      degree program                 |   |

| 26. | ADOPTION      OF AUTHORITATIVE GUIDANCE REGARDING NONCONTROLLING  INTEREST |
|-----|----------------------------------------------------------------------------|

----

| 26. | ADOPTION      OF AUTHORITATIVE GUIDANCE REGARDING NONCONTROLLING INTEREST -      continued |
|-----|--------------------------------------------------------------------------------------------|

|   | (a) | the      noncontrolling interests (previously described as minority interest) has      now been included as a component of total equity whereas previously it was      shown outside of equity; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the      net income or loss attributable to the noncontrolling interests is now      shown as an allocation of net income for the year rather than being      deducted in arriving at net income;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | consolidated      comprehensive income or loss now includes the comprehensive income or loss      attributable to the noncontrollinginterests. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| 27.  | SUBSEQUENT      EVENTS |
|-----------|------------------------|

----

|                                                            |   | December 31, |     |
|-----------------------------------------------------------------|--------|-------------------|----------|
|                                                            |   | 2008              |     |   | 2009 |   |   | 2009 |   |
|                                                            |   | RMB               |     |   | RMB |   |   | US$ |   |
| Assets                                                          |   |              |     |   |   |   |   |   |   |
|                                                            |   |              |     |   |   |   |   |   |   |
| Current      assets:                                            |   |              |     |   |   |   |   |   |   |
| Cash      and cash equivalents                                  |   |              | 150,578  |   |   |   | 12,379 |   |   |   | 1,814 |   |
| Term      deposit                                               |   |              | -        |   |   |   | 27,304 |   |   |   | 4,000 |   |
| Short-term      investments                                     |   |              | -        |   |   |   | 4,706 |   |   |   | 689 |   |
| Prepaid      expenses and other current assets                  |   |              | 1,258    |   |   |   | 1,464 |   |   |   | 214 |   |
| Amounts      due from related parties                           |   |              | 70,720   |   |   |   | 61,079 |   |   |   | 8,948 |   |
| Total      current assets                                       |   |              | 222,556  |   |   |   | 106,932 |   |   |   | 15,665 |   |
| Investments      in subsidiaries and variable interest entities |   |              | 381,674  |   |   |   | 464,630 |   |   |   | 68,070 |   |
| Total      assets                                               |   |              | 604,230  |   |   |   | 571,562 |   |   |   | 83,735 |   |
|                                                            |   |              |     |   |   |   |   |   |   |   |   |   |
| Liabilities      and Equity                                     |   |              |     |   |   |   |   |   |   |   |   |   |
|                                                            |   |              |     |   |   |   |   |   |   |   |   |   |
| Current      liabilities:                                       |   |              |     |   |   |   |   |   |   |   |   |   |
| Accrued      expenses and other current liabilities             |   |              | 5,654    |   |   |   | 5,713 |   |   |   | 836 |   |
| Amount      due to related parties                              |   |              | 5,321    |   |   |   | 1,799 |   |   |   | 263 |   |
| Total      current liabilities                                  |   |              | 10,975   |   |   |   | 7,512 |   |   |   | 1,099 |   |
| Deferred      other income                                      |   |              | 3,426    |   |   |   | 4,077 |   |   |   | 597 |   |
| Total      liabilities                                          |   |              | 14,401   |   |   |   | 11,589 |   |   |   | 1,696 |   |
|                                                            |   |              |     |   |   |   |   |   |   |   |   |   |
| Equity:                                                         |   |              |     |   |   |   |   |   |   |   |   |   |
| Ordinary      shares (RMB0.08 (US$0.01) par value;              |   |              |     |   |   |   |   |   |   |   |   |   |
| 100,000,000      shares authorized; 63,076,129 shares           |   |              |     |   |   |   |   |   |   |   |   |   |
| issued      and outstanding in 2008; 55,247,329 shares          |   |              |     |   |   |   |   |   |   |   |   |   |
| issued      and outstanding in 2009)                            |   |              | 4,573    |   |   |   | 4,076 |   |   |   | 597 |   |
| Additional      paid-in capital                                 |   |              | 734,733  |   |   |   | 673,847 |   |   |   | 98,719 |   |
| Warrants                                                        |   |              | 5,555    |   |   |   | 1,883 |   |   |   | 276 |   |
| Accumulated      deficits                                       |   |              | (134,112 | ) |   |   | (99,333 | ) |   |   | (14,550 | ) |
| Accumulated      other comprehensive loss                       |   |              | (20,920  | ) |   |   | (20,500 | ) |   |   | (3,003 | ) |
| Total      equity                                               |   |              | 589,829  |   |   |   | 559,973 |   |   |   | 82,039 |   |
| Total      liabilities and equity                               |   |              | 604,230  |   |   |   | 571,562 |   |   |   | 83,735 |   |

----

|                                                                                                                                                                                           |   | Years ended December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                           |   | 2007                                    |   |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                                                                                                                           |   | RMB                                     |   |   | RMB |   |   | RMB |   |   | US$ |   |
| Operating      expenses:                                                                                                                                                                       |   |                                    |   |   |   |   |   |   |   |   |   |   |
| General      and administrative (including share-based compensation of RMB1,225,      RMB2,603 and RMB3,707 for 2007, 2008 and 2009,    respectively)                                          |   |                                    | 8,176  |   |   |   | 15,016 |   |   |   | 12,887 |   |   |   | 1,888 |   |
| Loss      from operations                                                                                                                                                                      |   |                                    | (8,176 | ) |   |   | (15,016 | ) |   |   | (12,887 | ) |   |   | (1,888 | ) |
| Other      income                                                                                                                                                                              |   |                                    | 394    |   |   |   | 562 |   |   |   | 1,748 |   |   |   | 256 |   |
| Interest      income                                                                                                                                                                           |   |                                    | 1,179  |   |   |   | 6,879 |   |   |   | 830 |   |   |   | 122 |   |
| Interest      expense                                                                                                                                                                          |   |                                    | (1,715 | ) |   |   | - |   |   |   | (2 | ) |   |   | - |   |
| Equity      in earnings of subsidiaries and variable interest entities (including      share-based compensation of RMB2,418, RMB2,628 and RMB3,709 for 2007, 2008      and 2009, respectively) |   |                                    | 10,805 |   |   |   | (35,444 | ) |   |   | 45,090 |   |   |   | 6,606 |   |
| Net      income (loss)                                                                                                                                                                         |   |                                    | 2,487  |   |   |   | (43,019 | ) |   |   | 34,779 |   |   |   | 5,096 |   |

----

|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                 |   |    |  Accumulated  |   |   |   |   |   |               |   |
|----------------------------------------------------------------------------------------|--------|---------------------------|------------|--------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|--------|----------------------|--------|--------|------------|--------|------------|--------------|--------|--------|--------|--------|--------|--------------------------------------------------------------------------------|------------|--------|---------------|--------|--------|---------|--------|--------|---------------|--------|--------|----------|--------|--------|--------------------------------------------------------------|--------|---------|--------------------|--------|--------|--------|--------|--------|--------------------|--------|
|                                                                                   |   | Series      A convertible |       |   | Series      B convertible |   |   | Series      C convertible |   |   | Series      D convertible |   |   |                 |   |   | Additional |   |       |         |   |   |   |   |   |                    |       |   |  other   |   |   |    |   |   |          |   |
|                                                                                   |   | preferred      shares     |       |   | preferred      shares     |   |   | preferred      shares     |   |   | preferred      shares     |   |   | Ordinary      shares |   |   | paid-in    |   |       | Subscription |   |   |   |   |   | Accumulated                                                                    |       |   | comprehensive |   |   |    |   |   | Comprehensive |   |
|                                                                                   |   | Shares                    |       |   | Amount                    |   |   | Shares                    |   |   | Amount                    |   |   | Shares               |   |   | Amount     |   |       | Shares       |   |   | Amount |   |   | Shares                                                                         |       |   | Amount        |   |   | capital |   |   | receivable    |   |   | Warrants |   |   | deficits                                                     |   |    | income      (loss) |   |   | Total  |   |   | income      (loss) |   |
|                                                                                   |   |                      |       |   | RMB                       |   |   |                      |   |   | RMB                       |   |   |                 |   |   | RMB        |   |       |         |   |   | RMB    |   |   |                                                                           |       |   | RMB           |   |   | RMB     |   |   | RMB           |   |   | RMB      |   |   | RMB                                                          |   |    | RMB                |   |   | RMB    |   |   | RMB                |   |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |
| Balance      at January 1, 2007                                                        |   |                      | 5,150,000  |   |                      |   | 426    |                      |   |   | 12,140,495                |   |   |                 | 1,005  |   |       |   | 3,378,379  |         |   |   | 272    |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 19,007,408    |   |   |     | 1,710  |   |                                                         |   | 343,167 |               |   |   | (1,117 | )      |   |               | 8,076  |   |   |   | (89,836 | ) |   |   | 616 |   |   |   | 264,319 |   |   |   |   |   |
| Issuance      of Series D convertible preferred shares                                 |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | 2,598,503  |   |          |   | 200    |    |   |   | -             |   |   |     | -      |   |                                                         |   | 74,322  |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 74,522 |   |   |   |   |   |
| Repurchase      of ordinary share as treasury stock                                    |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | (2,300,000    | )      |   |     | (178   | )      |                                                         |   | (49,869 | )                  |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | (50,047 | ) |   |   |   |   |
| Issuance      of treasury shares to new shareholders                                   |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 2,300,000     |   |   |     | 178    |   |                                                         |   | 49,869  |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 50,047 |   |   |   |   |   |
| Collection      of subscription receivable                                             |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | 1,117  |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 1,117 |   |   |   |   |   |
| Amortization      of share-based compensation                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | 3,643   |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 3,643 |   |   |   |   |   |
| Accumulated      adjustment of unrecognized tax benefit                                |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | (3,744 | ) |   |   | - |   |   |   | (3,744 | ) |   |   |   |   |
| Repurchase      and cancellation of ordinary shares                                    |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | (600,000      | )      |   |     | (46    | )      |                                                         |   | (12,767 | )                  |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | (12,813 | ) |   |   |   |   |
| Repurchase      and cancellation of Series B convertible preferred shares              |   |                      | -          |   |                      |   | -      |                      |   |   | (30,000                   | )      |   |                 | (2     | )      |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | (638    | )                  |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | (640 | ) |   |   |   |   |
| Exercise      of warrants for Series A convertible preferred shares                    |   |                      | 300,000    |   |                      |   | 23     |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | 3,386   |               |   |   | -      |   |   |               | (1,235 | ) |   |   | - |   |   |   | - |   |   |   | 2,174 |   |   |   |   |   |
| Exercise      warrants for ordinary shares                                             |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 121,622       |   |   |     | 9      |   |                                                         |   | 2,126   |               |   |   | -      |   |   |               | (471   | ) |   |   | - |   |   |   | - |   |   |   | 1,664 |   |   |   |   |   |
| Conversion      of series A, B, C, D preferred shares                                  |   |                      | (5,450,000 | )      |                      |   | (449   | )                         |   |   | (12,110,495               | )      |   |                 | (1,003 | )      |       |   | (3,378,379 | )            |   |   | (272   | )      |   |                                                                           | (2,598,503 | )      |          |   | (200   | )       |   |   | 23,537,377    |   |   |     | 1,924  |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Issuance      of ordinary shares on IPO (net of insurance cost of    RMB25,665)        |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 16,368,000    |   |   |     | 1,208  |   |                                                         |   | 347,619 |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 348,827 |   |   |   |   |   |
| Foreign      currency translation adjustments                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | (2,822 | ) |   |   | (2,822 | ) |   |   | (2,822 | ) |
| Net      income                                                                        |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | 2,487 |   |   |   | - |   |   |   | 2,487 |   |   |   | 2,487 |   |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                                                      |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 58,434,407    |   |   |     | 4,805  |   |                                                         |   | 760,858 |               |   |   | -      |   |   |               | 6,370  |   |   |   | (91,093 | ) |   |   | (2,206 | ) |   |   | 678,734 |   |   |   | (335 | ) |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ordinary      shares converted to ADS shares for future exercise of share      options |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 8,344,305     |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Amortization      of share-based compensation                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | 5,231   |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 5,231 |   |   |   |   |   |
| Repurchase      of ordinary shares and forfeiture of warrants                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | (3,702,583    | )      |   |     | (253   | )      |                                                         |   | (33,122 | )                  |   |   | -      |   |   |               | (815   | ) |   |   | - |   |   |   | - |   |   |   | (34,190 | ) |   |   |   |   |
| Exercise      of share options                                                         |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | 21     |   |                                                         |   | 1,766   |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 1,787 |   |   |   |   |   |
| Foreign      currency translation adjustments                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | (18,714 | ) |   |   | (18,714 | ) |   |   | (18,714 | ) |
| Net      loss                                                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | (43,019 | ) |   |   | - |   |   |   | (43,019 | ) |   |   | (43,019 | ) |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2008                                                      |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 63,076,129    |   |   |     | 4,573  |   |                                                         |   | 734,733 |               |   |   | -      |   |   |               | 5,555  |   |   |   | (134,112 | ) |   |   | (20,920 | ) |   |   | 589,829 |   |   |   | (61,733 | ) |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Amortization      of share-based compensation                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | 7,416   |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 7,416 |   |   |   |   |   |
| Repurchase      of ordinary shares                                                     |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | (7,828,800    | )      |   |     | (536   | )      |                                                         |   | (76,098 | )                  |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | (76,634 | ) |   |   |   |   |
| Forfeiture      of warrants                                                            |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | 3,672   |               |   |   | -      |   |   |               | (3,672 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |
| Exercise      of share options                                                         |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | 39     |   |                                                         |   | 4,124   |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | - |   |   |   | 4,163 |   |   |   |   |   |
| Foreign      currency translation adjustments                                          |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | 276 |   |   |   | 276 |   |   |   | 276 |   |
| Unrealized      gains                                                                  |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | - |   |   |   | 144 |   |   |   | 144 |   |   |   | 144 |   |
| Net      income                                                                        |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | -             |   |   |     | -      |   |                                                         |   | -       |               |   |   | -      |   |   |               | -      |   |   |   | 34,779 |   |   |   | - |   |   |   | 34,779 |   |   |   | 34,779 |   |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   |     |   |   |                                                         |   |    |               |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2009                                                      |   |                      | -          |   |                      |   | -      |                      |   |   | -                         |   |   |                 | -      |   |       |   | -          |         |   |   | -      |   |   |                                                                           | -          |   |          |   | -      |    |   |   | 55,247,329    |   |   |     | 4,076  |   |                                                         |   | 673,847 |               |   |   | -      |   |   |               | 1,883  |   |   |   | (99,333 | ) |   |   | (20,500 | ) |   |   | 559,973 |   |   |   | 35,199 |   |
|                                                                                   |   |                      |       |   |                      |   |   |                      |   |   |                      |   |   |                 |   |   |       |   |       |         |   |   |   |   |   |                                                                           |       |   |          |   |   |    |   |   |          |   |   | US$      | 597    |   |                                                         | US$    | 98,719  |               |   |   |   |   |   | US$                | 276    |   |   | US$ | (14,550 | ) |   | US$ | (3,003 | ) |   | US$ | 82,039 |   |   |   |   |   |

----

|                                                                                                          |   | Years ended December 31, |    |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                                                                          |   | 2007                                    |    |   | 2008 |   |   | 2009 |   |   | 2009 |   |
|                                                                                                          |   | RMB                                     |    |   | RMB |   |   | RMB |   |   | US$ |   |
| Cash      flows from operating activities:                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                        |   |                                    | 2,487   |   |   |   | (43,019 | ) |   |   | 34,779 |   |   |   | 5,096 |   |
| Adjustments      to reconcile net income (loss) to net cash used in operating      activities:                |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Share      based compensation                                                                                 |   |                                    | 1,225   |   |   |   | 2,603 |   |   |   | 3,707 |   |   |   | 543 |   |
| Gain      on conversion of warrants of series D convertible preferred      shares                             |   |                                    | (394    | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      expense                                                                                         |   |                                    | 1,715   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Equity      in earnings of subsidiaries and variable interest entities                                        |   |                                    | (10,805 | ) |   |   | 35,444 |   |   |   | (45,090 | ) |   |   | (6,606 | ) |
| Changes      in assets and liabilities:                                                                       |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Prepaid      expenses and other current assets                                                                |   |                                    | 717     |   |   |   | (861 | ) |   |   | (205 | ) |   |   | (30 | ) |
| Amounts      due from related parties                                                                         |   |                                    | (1,302  | ) |   |   | (3,929 | ) |   |   | 9,608 |   |   |   | 1,408 |   |
| Accrued      expense and other liabilities                                                                    |   |                                    | 7,767   |   |   |   | (6,985 | ) |   |   | 57 |   |   |   | 8 |   |
| Amount      due to a related party                                                                            |   |                                    | 1,479   |   |   |   | 821 |   |   |   | (3,522 | ) |   |   | (516 | ) |
| Deferred      revenue                                                                                         |   |                                    | -       |   |   |   | 3,435 |   |   |   | 648 |   |   |   | 95 |   |
| Net      cash provided by (used in) operating activities                                                      |   |                                    | 2,889   |   |   |   | (12,491 | ) |   |   | (18 | ) |   |   | (2 | ) |
|                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments      in subsidiaries and variable interest entities                                               |   |                                    | (62,505 | ) |   |   | (116,671 | ) |   |   | (34,156 | ) |   |   | (5,002 | ) |
| Purchase      of term deposits                                                                                |   |                                    | -       |   |   |   | - |   |   |   | (27,298 | ) |   |   | (4,000 | ) |
| Purchase      of investments                                                                                  |   |                                    | -       |   |   |   | - |   |   |   | (4,568 | ) |   |   | (669 | ) |
| Net      cash used in investing activities                                                                    |   |                                    | (62,505 | ) |   |   | (116,671 | ) |   |   | (66,022 | ) |   |   | (9,671 | ) |
|                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                                    |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds      from IPO (net of issuance cost of RMB25,665)                                                    |   |                                    | 348,827 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds      from issuance of Series D convertible preferred shares (net of issuance      costs of RMB2,598) |   |                                    | 72,033  |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds      from exercise of warrants                                                                       |   |                                    | 3,838   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Repurchase      and cancellation of Series B convertible preferred shares                                     |   |                                    | (640    | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Repurchase      and cancellation of ordinary shares                                                           |   |                                    | (12,813 | ) |   |   | (34,190 | ) |   |   | (76,634 | ) |   |   | (11,226 | ) |
| Repayment      of convertible notes                                                                           |   |                                    | (27,783 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Collection      of subscription receivable                                                                    |   |                                    | 1,117   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Proceeds      from exercise of share options                                                                  |   |                                    | -       |   |   |   | 1,787 |   |   |   | 4,163 |   |   |   | 610 |   |
| Net      cash provided by (used in) financing activities                                                      |   |                                    | 384,579 |   |   |   | (32,403 | ) |   |   | (72,471 | ) |   |   | (10,616 | ) |
| Effect      of exchange rate changes                                                                          |   |                                    | (4,930  | ) |   |   | (19,182 | ) |   |   | 312 |   |   |   | 43 |   |
| Net      increase (decrease) in cash and cash equivalents                                                     |   |                                    | 320,033 |   |   |   | (180,747 | ) |   |   | (138,199 | ) |   |   | (20,246 | ) |
| Cash      and cash equivalents, beginning of year                                                             |   |                                    | 11,292  |   |   |   | 331,325 |   |   |   | 150,578 |   |   |   | 22,060 |   |
| Cash      and cash equivalents, end of year                                                                   |   |                                    | 331,325 |   |   |   | 150,578 |   |   |   | 12,379 |   |   |   | 1,814 |   |
|                                                                                                          |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash financing activities:                                                |   |                                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion      of convertible notes into Series D preferred shares                                           |   |                                    | 2,489   |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Conversion      of Series A,B,C,D preferred shares into ordinary shares                                       |   |                                    | 1,924   |   |   |   | - |   |   |   | - |   |   |   | - |   |

----

| 1. | BASIS      FOR PREPARATION |
|----|----------------------------|

| 2. | INVESTMENTS      IN SUBSIDIARIES AND VARIABLE INTERESTENTITIES |
|----|----------------------------------------------------------------|

| 3. | INCOME      TAXES |
|----|-------------------|

| 4. | RELATED      PARTY TRANSACTIONS |
|----|---------------------------------|

|                                   |   | December 31, |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   | 2008              |   |   | 2009 |   |
|                                   |   | RMB               |   |   | RMB |   |
| Amounts      due from related parties: |   |              |   |   |   |   |
| Former      director-Yang Xueshan (i)  |   |              | 14,840 |   |   |   | 14,840 |   |
| Vice      President-Xie Changqing (i)  |   |              | 39,360 |   |   |   | 39,360 |   |
| CMR      Web (ii)                      |   |              | 12,026 |   |   |   | 4,249 |   |
| Hongcheng      Liye                    |   |              | 2,754  |   |   |   | 2,499 |   |
| Others                                 |   |              | 1,740  |   |   |   | 131 |   |
|                                   |   |              | 70,720 |   |   |   | 61,079 |   |
|                                   |   |              |   |   |   |   |   |   |
| Amount      due to related parties:    |   |              |   |   |   |   |   |   |
| Hongcheng      Technology              |   |              | 5,121  |   |   |   | 1,380 |   |
| Others                                 |   |              | 200    |   |   |   | 419 |   |
|                                   |   |              | 5,321  |   |   |   | 1,799 |   |

|   | (i) | The      amounts represent loans to the two equity owners of Hongcheng      Education. |
|--------|-----|----------------------------------------------------------------------------------------|

|   | (ii) | The      amount represents the receivable of profit distribution from a subsidiary      company. |
|--------|------|--------------------------------------------------------------------------------------------------|

----