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

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

|   | Delaware                                                      |    | 26-1806348                          |   |
|--------|---------------------------------------------------------------|--------------|-------------------------------------|--------|
|   | (State or other jurisdiction ofincorporation or organization) |         | (I.R.S. EmployerIdentification No.) |   |

| Large accelerated filer |  ̈ | Accelerated filer         |  ̈ |
|-------------------------|--------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | Smaller reporting company | x      |

----

|                                | PageNumber                                                                                                                         |
|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|
|                                |                                                                                                                               |
| PART I.  FINANCIAL INFORMATION | 3                                                                                                                                  |
|                                |                                                                                                                               |   |
| Item 1.                             | Financial Statements (Unaudited)                                                                                                   | 3 |
|                                |                                                                                                                               |   |
|                                | Condensed Consolidated Balance Sheets as of February 28, 2011 and August 31, 2010                                                  | 3 |
|                                |                                                                                                                               |   |
|                                | Condensed Consolidated Statements of Income and Comprehensive Income for the three and six months ended February 28, 2011 and 2010 | 4 |
|                                |                                                                                                                               |   |
|                                | Condensed Consolidated Statements of Cash Flows for the six months ended February 28, 2011 and 2010                                | 5 |
|                                |                                                                                                                               |   |
|                                | Notes to Condensed Consolidated Financial Statements                                                                               | 6 |
|                                |                                                                                                                               |   |
| Item 2.                             | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                        | 11 |
|                                |                                                                                                                               |   |
| Item 3.                             | Quantitative and Qualitative Disclosures About Market Risk                                                                         | 21 |
|                                |                                                                                                                               |   |
| Item 4.                             | Controls and Procedures                                                                                                            | 21 |
|                                |                                                                                                                               |   |
| PART II.  OTHER INFORMATION    | 22                                                                                                                                 |
|                                |                                                                                                                               |   |
| Item 1.                             | Legal Proceedings                                                                                                                  | 22 |
|                                |                                                                                                                               |   |
| Item 1A.                            | Risk Factors                                                                                                                       | 22 |
|                                |                                                                                                                               |   |
| Item 2.                             | Unregistered Sales of Equity Securities and Use of Proceeds                                                                        | 22 |
|                                |                                                                                                                               |   |
| Item 3.                             | Defaults Upon Senior Securities                                                                                                    | 22 |
|                                |                                                                                                                               |   |
| Item 4.                             | (Removed and Reserved)                                                                                                             | 22 |
|                                |                                                                                                                               |   |
| Item 5.                             | Other Information                                                                                                                  | 22 |
|                                |                                                                                                                               |   |
| Item 6.                             | Exhibits                                                                                                                           | 22 |
|                                |                                                                                                                               |   |
| SIGNATURES                          | 23                                                                                                                                 |

----

|                                                                                                    |   | February 28, |       |   | August 31, |   |
|---------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|-----------------|--------|
|                                                                                                    |   | 2011              |       |   | 2010            |   |
| ASSETS                                                                                                  |   |
|                                                                                                    |   |              |       |   |            |   |
| CURRENT ASSETS                                                                                          |   |              |       |   |            |   |
| Cash                                                                                                    |   | $                 | 10,689,312 |   |            | $      | 5,225,764 |   |
| Accounts receivable                                                                                     |   |              | 10,925,634 |   |            |   | 9,023,824 |   |
| Other receivables                                                                                       |   |              | 273,254    |   |            |   | 40,972 |   |
| Inventory                                                                                               |   |              | 700,470    |   |            |   | 674,200 |   |
| Advances to vendors                                                                                     |   |              | 6,264,832  |   |            |   | 552,344 |   |
| Total current assets                                                                                    |   |              | 28,853,502 |   |            |   | 15,517,104 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| PROPERTY AND EQUIPMENT, NET                                                                             |   |              | 31,974,709 |   |            |   | 29,009,794 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| INTANGIBLE ASSETS, NET                                                                                  |   |              | 2,076,645  |   |            |   | 2,029,519 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| TOTAL ASSETS                                                                                            |   | $                 | 62,904,856 |   |            | $      | 46,556,417 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                    |   |
|                                                                                                    |   |
| CURRENT LIABILITIES                                                                                     |   |              |       |   |            |   |   |   |
| Short-term loans                                                                                        |   | $                 | 1,301,045  |   |            | $      | 1,314,744 |   |
| Long-term loans - current portion                                                                       |   |              | 661,936    |   |            |   | 235,038 |   |
| Accounts payable                                                                                        |   |              | 1,172,687  |   |            |   | 2,278,346 |   |
| Payroll tax payable                                                                                     |   |              | 3,912      |   |            |   | 3,232 |   |
| Payroll payable                                                                                         |   |              | 360,921    |   |            |   | 341,098 |   |
| Unearned revenues                                                                                       |   |              | 5,737,946  |   |            |   | - |   |
| Due to shareholder                                                                                      |   |              | 340,000    |   |            |   | - |   |
| Other payables and accrued liabilities                                                                  |   |              | 848,567    |   |            |   | 850,905 |   |
| Total current liabilities                                                                               |   |              | 10,427,014 |   |            |   | 5,023,363 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| Long-term loans, less current portion                                                                   |   |              | -          |   |            |   | 477,421 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| Due to shareholder, net of current portion                                                              |   |              | -          |   |            |   | 310,000 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| Other long-term payables                                                                                |   |              | 99,247     |   |            |   | 96,757 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| TOTAL LIABILITIES                                                                                       |   |              | 10,526,261 |   |            |   | 5,907,541 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| COMMITMENTS AND  CONTINGENCIES                                                                     |   |              |       |   |            |   |   |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| SHAREHOLDERS' EQUITY                                                                                    |   |              |       |   |            |   |   |   |
| Preferred stock, $0.001 par value, 40,000,000 shares authorized, none issued and outstanding            |   |              | -          |   |            |   | - |   |
| Common Stock, $0.0001 par value 100,000,000 shares authorized, 33,000,000 shares issued and outstanding |   |              | 3,300      |   |            |   | 3,300 |   |
| Additional paid-in capital                                                                              |   |              | 1,226,674  |   |            |   | 1,226,674 |   |
| Accumulated other comprehensive income                                                                  |   |              | 3,392,010  |   |            |   | 1,785,928 |   |
| Statutory reserve                                                                                       |   |              | 12,880,440 |   |            |   | 10,339,551 |   |
| Retained earnings                                                                                       |   |              | 34,876,171 |   |            |   | 27,293,423 |   |
| Total shareholders' equity                                                                              |   |              | 52,378,595 |   |            |   | 40,648,876 |   |
|                                                                                                    |   |              |       |   |            |   |   |   |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                              |   | $                 | 62,904,856 |   |            | $      | 46,556,417 |   |

----

|                                                         |   | For the three months ended |       |   | For the six months ended |   |
|--------------------------------------------------------------|--------|------------------------------------------------|------------|--------|----------------------------------------------|--------|
|                                                         |   | February 28,                              |       |   | February 28,                            |   |
|                                                         |   | 2011                                           |       |   | 2010                                         |   |   | 2011 |   |   | 2010 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |
| Revenues                                                     |   |                                           |       |   |                                         |   |   |   |   |   |   |   |
| -Fee based                                                   |   | $                                              | 10,230,667 |   |                                         | $      | 5,333,367 |   |   | $ | 22,429,375 |   |   | $ | 14,131,443 |   |
| -Service based                                               |   |                                           | 2,263,853  |   |                                         |   | 1,531,729 |   |   |   | 6,706,903 |   |   |   | 5,742,731 |   |
|                                                         |   |                                           | 12,494,520 |   |                                         |   | 6,865,096 |   |   |   | 29,136,278 |   |   |   | 19,874,174 |   |
| Cost of revenue                                              |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| -Fee based                                                   |   |                                           | (5,047,583 | )      |                                         |   | (2,481,332 | ) |   |   | (11,225,311 | ) |   |   | (6,774,451 | ) |
| -Service based                                               |   |                                           | (1,852,153 | )      |                                         |   | (1,175,194 | ) |   |   | (5,822,167 | ) |   |   | (4,740,567 | ) |
|                                                         |   |                                           | (6,899,736 | )      |                                         |   | (3,656,526 | ) |   |   | (17,047,478 | ) |   |   | (11,515,018 | ) |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                 |   |                                           | 5,594,784  |   |                                         |   | 3,208,570 |   |   |   | 12,088,800 |   |   |   | 8,359,156 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses                                             |   |                                           | (170,485   | )      |                                         |   | (107,664 | ) |   |   | (339,710 | ) |   |   | (243,758 | ) |
| General and administrative expenses                          |   |                                           | (754,040   | )      |                                         |   | (476,672 | ) |   |   | (1,534,442 | ) |   |   | (928,236 | ) |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                       |   |                                           | 4,670,259  |   |                                         |   | 2,624,234 |   |   |   | 10,214,648 |   |   |   | 7,187,162 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Other expenses                                               |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Interest expenses, net                                       |   |                                           | (31,071    | )      |                                         |   | (25,766 | ) |   |   | (61,645 | ) |   |   | (45,127 | ) |
| Other expenses                                               |   |                                           | (331       | )      |                                         |   | (553 | ) |   |   | (29,366 | ) |   |   | (969,950 | ) |
| Total other expenses                                         |   |                                           | (31,402    | )      |                                         |   | (26,319 | ) |   |   | (91,011 | ) |   |   | (1,015,077 | ) |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                   |   |                                           | 4,638,857  |   |                                         |   | 2,597,915 |   |   |   | 10,123,637 |   |   |   | 6,172,085 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                                   |   |                                           | -          |   |                                         |   | - |   |   |   | - |   |   |   | - |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                   |   |                                           | 4,638,857  |   |                                         |   | 2,597,915 |   |   |   | 10,123,637 |   |   |   | 6,172,085 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                   |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation income                          |   |                                           | 730,859    |   |                                         |   | 5,762 |   |   |   | 1,606,082 |   |   |   | 19,627 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income                                         |   | $                                              | 5,369,716  |   |                                         | $      | 2,603,677 |   |   | $ | 11,729,719 |   |   | $ | 6,191,712 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted income per common share                    |   | $                                              | 0.14       |   |                                         | $      | 0.11 |   |   | $ | 0.31 |   |   | $ | 0.28 |   |
|                                                         |   |                                           |       |   |                                         |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted weighted average common shares outstanding |   |                                           | 33,000,000 |   |                                         |   | 23,416,667 |   |   |   | 33,000,000 |   |   |   | 21,950,276 |   |

----

|                                                                              |   | For the six months ended |       |
|-----------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
|                                                                              |   | February 28,                            |       |
|                                                                              |   | 2011                                         |       |   | 2010 |   |
|                                                                              |   |                                         |       |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                                         |       |   |   |   |
| Net income                                                                        |   | $                                            | 10,123,637 |   |   | $ | 6,172,085 |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                                         |       |   |   |   |   |   |
| Depreciation and amortization                                                     |   |                                         | 1,219,282  |   |   |   | 900,645 |   |
| Loss on disposal of property & equipment                                      |   |                                         | -          |   |   |   | 969,369 |   |
| Changes in assets and liabilities                                                 |   |                                         |       |   |   |   |   |   |
| (Increase) decrease in -                                                          |   |                                         |       |   |   |   |   |   |
| Accounts receivable                                                               |   |                                         | (1,559,644 | ) |   |   | (4,692,513 | ) |
| Other receivables                                                                 |   |                                         | (210,609   | ) |   |   | (47,810 | ) |
| Inventory                                                                         |   |                                         | (2,057     | ) |   |   | 848,808 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| Increase (decrease) in -                                                          |   |                                         |       |   |   |   |   |   |
| Accounts payable                                                                  |   |                                         | (1,173,539 | ) |   |   | 626,130 |   |
| Payroll Payable                                                                   |   |                                         | 7,496      |   |   |   | 36,575 |   |
| Payroll Taxes payable                                                             |   |                                         | 557        |   |   |   | 21,852 |   |
| Unearned revenues                                                                 |   |                                         | 5,670,973  |   |   |   | 1,527,334 |   |
| Other payables and accrued liabilities                                            |   |                                         | (3,347     | ) |   |   | 531,454 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| Net cash provided by operating activities                                         |   |                                         | 14,072,749 |   |   |   | 6,893,929 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |                                         |       |   |   |   |   |   |
| Advance payment for acquisition of intangible assets                              |   |                                         | (3,273,452 | ) |   |   | - |   |
| Acquisition of intangible assets                                                  |   |                                         | -          |   |   |   | (30,757 | ) |
| Advance payment for acquisition of property & equipment                       |   |                                         | (2,352,775 | ) |   |   | (999,635 | )  |
| Acquisition of property & equipment                                           |   |                                         | (3,095,572 | )  |   |   | (6,032,061 | ) |
|                                                                              |   |                                         |       |   |   |   |   |   |
| Net cash used in investing activities                                             |   |                                         | (8,721,799 | ) |   |   | (7,062,453 | ) |
|                                                                              |   |                                         |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |                                         |       |   |   |   |   |   |
| Proceeds from short-term loan                                                     |   |                                         | 233,109    |   |   |   | - |   |
| Repayments on short-term loan                                                     |   |                                         | (293,266   | ) |   |   | - |   |
| Repayments on long-term loan                                                      |   |                                         | (75,197    | ) |   |   | (36,615 | ) |
| Proceeds from loans to related party                                              |   |                                         | -          |   |   |   | 1,924,491 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities                               |   |                                         | (135,354   | ) |   |   | 1,887,876 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| EFFECT OF EXCHANGE RATE CHANGE ON CASH                                            |   |                                         | 247,952    |   |   |   | 2,993 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| NET INCREASE IN CASH                                                              |   |                                         | 5,463,548  |   |   |   | 1,722,345 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                                         |   |                                         | 5,225,764  |   |   |   | 3,848,040 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| CASH, END OF PERIOD                                                               |   | $                                            | 10,689,312 |   |   | $ | 5,570,385 |   |
|                                                                              |   |                                         |       |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                |   |                                         |       |   |   |   |   |   |
|  Interest paid                                                               |   | $                                            | 57,561     |   |   | $ | 52,128 |   |

----

----

| (a) | Tuition revenue received for educational programs and services is recognized proportionately according to the progress the students completing the educational programs in the school. Tuition paid in advance is recorded as unearned revenues. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | The Company provides off-campus internship programs for students. The Company has arrangements with certain regional corporations in which these entities are the sponsors for off-campus internship programs which last two to three months. The Company collects a fixed amount of fees from both the internship sponsor and the student after the student is admitted into the programs. Revenue is recognized upon completion of the internship program. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | The Company provides other services mainly cafeteria and laundry services for students and the revenue from such services is recognized upon completion of the service. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   | February 28, 2011 |   |   | August 31, 2010 |   |   | February 28, 2010 |   |
|-------------------------------------------------|--------|-----------------------------|--------|--------|---------------------------|--------|--------|-----------------------------|--------|
| Period end exchange rate (RMB: US$)             |   |                        | 6.5716 |   |                      |   | 6.8074 |                        |   |   | 6.8260 |   |
| Average exchange rate for the period (RMB: US$) |   |                        | 6.6493 |   |                      |   | 6.8178 |                        |   |   | 6.8278 |   |

----

|                                 |   | As of February 28, |    |   | As of August 31, |   |
|--------------------------------------|--------|-----------------------------------|---------|--------|---------------------------------|--------|
|                                 |   | 2011                              |    |   | 2010                            |   |
| Loan from Mr. Guangwen He (1)        |   | $                                 | 310,000 |   |                            | $      | 310,000 |   |
| Rental and other expenses payable to |   |                              |    |   |                            |   |   |   |
| Mr. Guangwen He (2)                  |   |                              | 30,000  |   |                            |   | - |   |
| Total                                |   |                              | 340,000 |   |                            |   | 310,000 |   |

| (1). | The loan from Mr. Guangwen He, a major shareholder of the Company, is unsecured, bears no interest, with term of two years and is payable on February 28, 2012. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2). | The Company rents office facilities from Mr. Guangwen He under a fifteen-year agreement for annual rental of US$ 76,085. |
|------|--------------------------------------------------------------------------------------------------------------------------|

| (3). | On January 5, 2011, the Company entered into a loan agreement with the Chief Executive Officer of the Company, whereby the Company will obtain an interest free loan with a 3 year term for the purpose of business expansion. The total amount will be determined based on the Company’s expansion plan. As of the date of this report, the company has not obtained the loan proceeds from the Chief Executive Officer. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Lender                                   |   | Term         |   |   | Interestrate |   |   | Principal |   |
|------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|-----------|--------|
|                                     |   | From         |   |   | To           |   |   |      |   |   | RMB |   |   | US$ |   |
| Long-term loan - Current Portion         |   |         |   |   |         |   |   |      |   |   |   |   |   |   |   |
| Ningxiang Rural Credit Cooperative Union |   | Sep 1, 2009  |   |   | Aug 21, 2011 |   |   |      | 8.64   | % |   |   | 1,600,000 |   |   |   | 243,470 |   |
| Ningxiang Rural Credit Cooperative Union |   | Nov 25, 2008 |   |   | Nov 13, 2011 |   |   |      | 10.80  | % |   |   | 1,350,000 |   |   |   | 205,428 |   |
| Ningxiang Rural Credit Cooperative Union |   | Nov 25, 2008 |   |   | Nov 13, 2011 |   |   |      | 10.80  | % |   |   | 1,400,000 |   |   |   | 213,038 |   |
|                                     |   |         |   |   |         |   |   |      |   |   |   |   |   |   | 4,350,000 |   |   |   | 661,936 |   |

| Lender                                   |   | Term         |   |   | Interestrate |   |   | Principal |   |
|------------------------------------------|--------|--------------|--------|--------|--------------|--------|--------|-----------|--------|
|                                     |   | From         |   |   | To           |   |   |      |   |   | RMB |   |   | US$ |   |
| Long-term loan - Current Portion         |   |         |   |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Ningxiang Rural Credit Cooperative Union |   | Sep 1, 2009  |   |   | Aug 21, 2011 |   |   |      | 8.64   | % |   |   | 1,600,000 |   |   |   | 235,038 |   |
|                                     |   |         |   |   |         |   |   |      |   |   |   |   |   |   | 1,600,000 |   |   |   | 235,038 |   |
| Long-term loan - Non-Current Portion     |   |         |   |   |         |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Changsha Foundation for Education        |   | Jul 26, 2010 |   |   | Oct 25, 2011 |   |   |      | 8.40   | % |   |   | 500,000 |   |   |   | 73,450 |   |
| Ningxiang Rural Credit Cooperative Union |   | Nov 25, 2008 |   |   | Nov 13, 2011 |   |   |      | 10.80  | % |   |   | 1,350,000 |   |   |   | 198,313 |   |
| Ningxiang Rural Credit Cooperative Union |   | Nov 25, 2008 |   |   | Nov 13, 2011 |   |   |      | 10.80  | % |   |   | 1,400,000 |   |   |   | 205,658 |   |
|                                     |   |         |   |   |         |   |   |      |   |   |   |   |   |   | 3,250,000 |   |   |   | 477,421 |   |

----

|                          |   | Vocational Education |      |   | Order-oriented Service |   |      | Campus Services |   |   | Unallocated Amounts |   |   | Consolidated |      |
|-------------------------------|--------|---------------------------|-----------|--------|-----------------------------|--------|-----------|----------------------|--------|--------|--------------------------|--------|--------|--------------|-----------|
|                          |   |                      |      |   |                        |   |      |                 |   |   |                     |   |   |         |      |
| Net revenues                  |   |                      | 8,811,986 |   |                        |   | 1,418,681 |                 |   |   | 2,263,853                |   |   |         | -         |   |   |   | 12,494,520 |   |
| Cost of revenues              |   |                      | 4,839,485 |   |                        |   | 208,098   |                 |   |   | 1,852,153                |   |   |         | -         |   |   |   | 6,899,736 |   |
|                          |   |                      |      |   |                        |   |      |                 |   |   |                     |   |   |         |      |   |   |   |   |   |
| Gross profit                  |   |                      | 3,972,501 |   |                        |   | 1,210,583 |                 |   |   | 411,700                  |   |   |         |  -   |   |   |   | 5,594,784 |   |
|                          |   |                      |      |   |                        |   |      |                 |   |   |                     |   |   |         |      |   |   |   |   |   |
| Depreciation and amortization |   |                      | 339,199   |   |                        |   | 11        |                 |   |   | 255,212                  |   |   |         | 48,304    |   |   |   | 642,726 |   |
| Total capital expenditures    |   |                      | 1,160,468 |   |                        |   | -         |                 |   |   | 1,350,295                |   |   |         | 2,349,754 |   |   |   | 4,860,517 |   |

----

|                          |   | VocationalEducation |      |   | Order-orientedService |   |      | CampusServices |   |   | UnallocatedAmounts |   |   | Consolidated |    |
|-------------------------------|--------|---------------------|-----------|--------|-----------------------|--------|-----------|----------------|--------|--------|--------------------|--------|--------|--------------|---------|
|                          |   |                |      |   |                  |   |      |           |   |   |               |   |   |         |    |
| Net revenues                  |   |                | 4,024,166 |   |                  |   | 1,309,201 |           |   |   | 1,531,729          |   |   |         | -       |   |   |   | 6,865,096 |   |
| Cost of revenues              |   |                | 2,350,575 |   |                  |   | 130,757   |           |   |   | 1,175,194          |   |   |         | -       |   |   |   | 3,656,526 |   |
|                          |   |                |      |   |                  |   |      |           |   |   |               |   |   |         |    |   |   |   |   |   |
| Gross profit                  |   |                | 1,673,591 |   |                  |   | 1,178,444 |           |   |   | 356,535            |   |   |         | -       |   |   |   | 3,208,570 |   |
|                          |   |                |      |   |                  |   |      |           |   |   |               |   |   |         |    |   |   |   |   |   |
| Depreciation and amortization |   |                | 320,705   |   |                  |   | 10        |           |   |   | 150,312            |   |   |         | 38,520  |   |   |   | 509,547 |   |
| Total capital expenditures    |   |                | 106       |   |                  |   | -         |           |   |   | 16,259             |   |   |         | 620,298 |   |   |   | 636,663 |   |

|                          |   | VocationalEducation |       |   | Order-orientedService |   |      | CampusServices |   |   | UnallocatedAmounts |   |   | Consolidated |      |
|-------------------------------|--------|---------------------|------------|--------|-----------------------|--------|-----------|----------------|--------|--------|--------------------|--------|--------|--------------|-----------|
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |
| Net revenues                  |   |                | 19,003,673 |   |                  |   | 3,425,702 |           |   |   | 6,706,903          |   |   |         | -         |   |   |   | 29,136,278 |   |
| Cost of revenues              |   |                | 10,899,033 |   |                  |   | 326,278   |           |   |   | 5,822,167          |   |   |         | -         |   |   |   | 17,047,478 |   |
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |   |   |   |   |   |
| Gross profit                  |   |                | 8,104,640  |   |                  |   | 3,099,424 |           |   |   | 884,736            |   |   |         | -         |   |   |   | 12,088,800 |   |
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |   |   |   |   |   |
| Depreciation and amortization |   |                | 693,331    |   |                  |   | 22        |           |   |   | 430,343            |   |   |         | 95,586    |   |   |   | 1,219,282 |   |
| Total capital expenditures    |   |                | 1,278,554  |   |                  |   | -         |           |   |   | 2,905,073          |   |   |         | 4,538,172 |   |   |   | 8,721,799 |   |

|                          |   | VocationalEducation |       |   | Order-orientedService |   |      | CampusServices |   |   | UnallocatedAmounts |   |   | Consolidated |      |
|-------------------------------|--------|---------------------|------------|--------|-----------------------|--------|-----------|----------------|--------|--------|--------------------|--------|--------|--------------|-----------|
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |
| Net revenues                  |   |                | 11,906,606 |   |                  |   | 2,224,837 |           |   |   | 5,742,731          |   |   |         | -         |   |   |   | 19,874,174 |   |
| Cost of revenues              |   |                | 6,607,472  |   |                  |   | 166,979   |           |   |   | 4,740,567          |   |   |         | -         |   |   |   | 11,515,018 |   |
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |   |   |   |   |   |
| Gross profit                  |   |                | 5,299,134  |   |                  |   | 2,057,858 |           |   |   | 1,002,164          |   |   |         | -         |   |   |   | 8,359,156 |   |
|                          |   |                |       |   |                  |   |      |           |   |   |               |   |   |         |      |   |   |   |   |   |
| Depreciation and amortization |   |                | 638,989    |   |                  |   | 26        |           |   |   | 202,372            |   |   |         | 59,258    |   |   |   | 900,645 |   |
| Total capital expenditures    |   |                | 1,487,044  |   |                  |   | -         |           |   |   | 2,624,632          |   |   |         | 2,950,777 |   |   |   | 7,062,453 |   |

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

| · | Vocational Education services are our main business currently and we provide a wide range of programs through our vocational secondary schools. Fee based revenues from vocational education services primarily consist of student tuition and fees derived from the programs we offer and collected from students based on the fee standards that are filed and approved by the related local authorities; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Revenues generated from Order-oriented Services mainly consist of fees we collected from students and enterprises sponsors related to campus internship arrangement and job placement services; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Revenues generated from Campus Services primarily consist of canteen services and grocery sales provided to our students. |
|--------|---------------------------------------------------------------------------------------------------------------------------|

----

|                   |   | For the three months ended February 28, |       |   | Comparison |   |       | For the six months ended February 28, |   |   | Comparison |   |
|------------------------|--------|-----------------------------------------------------------------------|------------|--------|------------|--------|------------|---------------------------------------------------------------------|--------|--------|------------|--------|
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                   |   | 2011                                                                  |       |   | 2010       |   |       | Amount                                                              |   |   | Percent    |   |   | 2011 |   |   | 2010 |   |   | Amount |   |   | Percent |   |
|                   |   | US$                                                                   |       |   | US$        |   |       | US$                                                                 |   |   | %          |   |   | US$ |   |   | US$ |   |   | US$ |   |   | % |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues               |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| -Fee based             |   |                                                                  | 10,230,667 |   |       | $      | 5,333,367  |                                                                |   |   | 4,897,300  |   |   |   | 92 |   |   |   | 22,429,375 |   |   | $ | 14,131,443 |   |   |   | 8,297,932 |   |   |   | 59 |   |
| -Service based         |   |                                                                  | 2,263,853  |   |       |   | 1,531,729  |                                                                |   |   | 732,124    |   |   |   | 48 |   |   |   | 6,706,903 |   |   |   | 5,742,731 |   |   |   | 964,172 |   |   |   | 17 |   |
|                   |   |                                                                  | 12,494,520 |   |       |   | 6,865,096  |                                                                |   |   | 5,629,424  |   |   |   | 82 |   |   |   | 29,136,278 |   |   |   | 19,874,174 |   |   |   | 9,262,104 |   |   |   | 47 |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of revenues       |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| -Fee based             |   |                                                                  | (5,047,583 | )      |       |   | (2,481,332 | )                                                                   |   |   | (2,566,251 | )      |   |   | 103 |   |   |   | (11,225,311 | ) |   |   | (6,774,451 | ) |   |   | (4,450,860 | ) |   |   | 66 |   |
| -Service based         |   |                                                                  | (1,852,153 | )      |       |   | (1,175,194 | )                                                                   |   |   | (676,959   | )      |   |   | 58 |   |   |   | (5,822,167 | ) |   |   | (4,740,567 | ) |   |   | (1,081,600 | ) |   |   | 23 |   |
|                   |   |                                                                  | (6,899,736 | )      |       |   | (3,656,526 | )                                                                   |   |   | (3,243,210 | )      |   |   | 89 |   |   |   | (17,047,478 | ) |   |   | (11,515,018 | ) |   |   | (5,532,460 | ) |   |   | 48 |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit           |   |                                                                  | 5,594,784  |   |       |   | 3,208,570  |                                                                |   |   | 2,386,214  |   |   |   | 74 |   |   |   | 12,088,800 |   |   |   | 8,359,156 |   |   |   | 3,729,644 |   |   |   | 45 |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling expenses       |   |                                                                  | (170,485   | )      |       |   | (107,664   | )                                                                   |   |   | (62,821    | )      |   |   | 58 |   |   |   | (339,710 | ) |   |   | (243,758 | ) |   |   | (95,952 | ) |   |   | 39 |   |
| G&A expenses       |   |                                                                  | (754,040   | )      |       |   | (476,672   | )                                                                   |   |   | (277,368   | )      |   |   | 58 |   |   |   | (1,534,442 | ) |   |   | (928,236 | ) |   |   | (606,206 | ) |   |   | 65 |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations |   |                                                                  | 4,670,259  |   |       |   | 2,624,234  |                                                                |   |   | 2,046,025  |   |   |   | 78 |   |   |   | 10,214,648 |   |   |   | 7,187,162 |   |   |   | 3,027,486 |   |   |   | 42 |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other expenses         |   |                                                                  | (31,402    | )      |       |   | (26,319    | )                                                                   |   |   | (5,083     | )      |   |   | 19 |   |   |   | (91,011 | ) |   |   | (1,015,077 | ) |   |   | 924,066 |   |   |   | (91 | ) |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes           |   |                                                                  | -          |   |       |   | -          |                                                                |   |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                   |   |                                                                  |       |   |       |   |       |                                                                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income             |   |                                                                  | 4,638,857  |   |       |   | 2,597,915  |                                                                |   |   | 2,040,942  |   |   |   | 79 |   |   |   | 10,123,637 |   |   |   | 6,172,085 |   |   |   | 3,951,552 |   |   |   | 64 |   |

----

|                          |   | For the three months ended February 28, |       |
|------------------------------------|--------|-----------------------------------------|------------|
|                               |   | 2011                                    |       |   | 2010 |   |   | Amount |   |   | Percentage |   |
| Revenues                           |   |                                    |       |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   | $                                       | 8,811,986  |   |   | $ | 4,024,166 |   |   | $ | 4,787,820 |   |   |   | 119 | % |
| Order-oriented service - fee based |   |                                    | 1,418,681  |   |   |   | 1,309,201 |   |   |   | 109,480 |   |   |   | 8 | % |
| Campus Services - service based    |   |                                    | 2,263,853  |   |   |   | 1,531,729 |   |   |   | 732,124 |   |   |   | 48 | % |
|                               |   |                                    | 12,494,520 |   |   |   | 6,865,096 |   |   |   | 5,629,424 |   |   |   | 82 | % |
| Cost of Revenues                   |   |                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   |                                    | 4,839,485  |   |   |   | 2,350,575 |   |   |   | 2,488,910 |   |   |   | 106 | % |
| Order-oriented service - fee based |   |                                    | 208,098    |   |   |   | 130,757 |   |   |   | 77,341 |   |   |   | 59 | % |
| Campus Services - service based    |   |                                    | 1,852,153  |   |   |   | 1,175,194 |   |   |   | 676,959 |   |   |   | 58 | % |
|                               |   |                                    | 6,899,736  |   |   |   | 3,656,526 |   |   |   | 3,243,210 |   |   |   | 89 | % |
| Gross Profit                       |   |                                    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   |                                    | 3,972,501  |   |   |   | 1,673,591 |   |   | $ | 2,298,910 |   |   |   | 137 | % |
| Order-oriented service - fee based |   |                                    | 1,210,583  |   |   |   | 1,178,444 |   |   |   | 32,139 |   |   |   | 3 | % |
| Campus Services - service based    |   |                                    | 411,700    |   |   |   | 356,535 |   |   |   | 55,165 |   |   |   | 15 | % |
|                          |   | $                                       | 5,594,784  |   |   | $ | 3,208,570 |   |   | $ | 2,386,214 |   |   |   | 74 | % |

| (1) | Revenues from vocational education primarily consist of  tuition and fees derived from the programs we offer and collected from students based on the fee standards that filed and approved by the related local authorities. For the three months ended February 28, 2011, total tuition and miscellaneous fees had an increase of 119% as compared to tuition and miscellaneous fees for the three months ended February 28, 2010. The increase was the result of increase in the student enrollments and the expansion of our business. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The second semester of fiscal 2011 began from February for four of our schools in Hunan province (Changsha HQ, Shaoshan HQ, Shaoshan and Shaoyang) and the other five schools began in early March. In fiscal 2010, the whole month of February was winter vocation and no revenue was recognized in this month. This led to an increase of $3,153,633 in revenue from vocational education for the three months ended February 28, 2011, representing an increase rate of 78% over the same period of prior year. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our student enrollments increased to 37,408 for the first semester of fiscal 2011 as compared to 32,238 for the first semester of fiscal 2010, representing an increase of 5,170 or 16%. Our order-oriented education mode, excellent job placement rate and great reputation have attracted greater number of students to study in our schools. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our tuition rates for the first semester of fiscal year 2011 increased 12% compared with the first semester of prior period. The increase in tuition rates also led to the increase in revenue. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase in cost of teaching materials. The second semester of fiscal 2011 began in February in four of our schools (Changsha HQ, Shaoshan HQ, Shaoshan and Shaoyang), whereas the first semester of fiscal 2010 started from March in all of our schools. Since teaching materials such as textbooks will be distributed to students at the very beginning of each semester, the cost of teaching materials for the three months ended February 28, 2011 increased by $555,886 to $557,430 when compared with the amount of $1,544 for the same period of last year. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase in cost of school-running cooperation. The Company has put more efforts in expanding the scale of continuing education in fiscal year 2011. Under this program, students will take two-year vocational high school education and two-year junior college education. Upon graduation, they will obtain technical secondary school degree and junior college degree together. For the first semester of fiscal year 2011, the total number of students enrolled in continuing education program was 3,756, representing an increase of 113% when compared with the number of students for the same period of last year. This led to an increase of $630,573 in cost of school-running cooperation as compared with the three months ended February 28, 2010. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | Order-oriented services refer to off-campus internship arrangement and job placement service provided to our students. Revenues generated from order-oriented service  for the three months ended February 28, 2011 was $1,418,681, representing an increase of $109,480 or 8% when compared to $1,309,201 for the three months ended February 28, 2010. The increase is mainly attributable to the increase of fee rates we charged to our students and enterprises. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Campus services primarily consist of canteen services and grocery sales. Due to the increase in the student enrollment, revenues from our campus services increased by $732,124 to $2,263,853, an increase of 48%, for the three months ended February 28, 2011 as compared to revenues of $1,531,729 for the three months ended February 28, 2010. Our management believes that going forward, in addition to the student enrollment factor, revenues from campus services will also increase along with the increase in the service categories we provide to students. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | For the six months ended February 28, |       |
|------------------------------------|--------|---------------------------------------|------------|
|                               |   | 2011                                  |       |   | 2010 |   |   | Amount |   |   | Percentage |   |
| Revenues                           |   |                                  |       |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   | $                                     | 19,003,673 |   |   | $ | 11,906,606 |   |   | $ | 7,097,067 |   |   |   | 60 | % |
| Order-oriented service - fee based |   |                                  | 3,425,702  |   |   |   | 2,224,837 |   |   |   | 1,200,865 |   |   |   | 54 | % |
| Campus Services - service based    |   |                                  | 6,706,903  |   |   |   | 5,742,731 |   |   |   | 964,172 |   |   |   | 17 | % |
|                               |   |                                  | 29,136,278 |   |   |   | 19,874,174 |   |   |   | 9,262,104 |   |   |   | 47 | % |
| Cost of Revenues                   |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   |                                  | 10,899,033 |   |   |   | 6,607,472 |   |   |   | 4,291,561 |   |   |   | 65 | % |
| Order-oriented service - fee based |   |                                  | 326,278    |   |   |   | 166,979 |   |   |   | 159,299 |   |   |   | 95 | % |
| Campus Services - service based    |   |                                  | 5,822,167  |   |   |   | 4,740,567 |   |   |   | 1,081,600 |   |   |   | 23 | % |
|                               |   |                                  | 17,047,478 |   |   |   | 11,515,018 |   |   |   | 5,532,460 |   |   |   | 48 | % |
| Gross Profit                       |   |                                  |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Vocational Education - fee based   |   |                                  | 8,104,640  |   |   |   | 5,299,134 |   |   | $ | 2,805,506 |   |   |   | 53 | % |
| Order-oriented service - fee based |   |                                  | 3,099,424  |   |   |   | 2,057,858 |   |   |   | 1,041,566 |   |   |   | 51 | % |
| Campus Services - service based    |   |                                  | 884,736    |   |   |   | 1,002,164 |   |   |   | -117,428 |   |   |   | -12 | % |
|                               |   | $                                     | 12,088,800 |   |   | $ | 8,359,156 |   |   | $ | 3,729,644 |   |   |   | 45 | % |

| (1) | Revenues from vocational education  primarily consist of  tuition and fees derived from the programs we offer and collected from students based on the fee standards that filed and approved by the related local authorities. For the six months ended February 28, 2011, total tuition and miscellaneous fees had an increase of 60% as compared to tuition and miscellaneous fees for the six months ended February 28, 2011. The increase was the result of increase in the student enrollments and the expansion of our business. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The second semester of fiscal 2011 began from February for four of our schools in Hunan province and the other five schools began in early March. In fiscal 2010, the whole month of February was winter vocation and no revenue was recognized in this month. This led to an increase of $3,153,633 in revenue from vocational education in fiscal 2011, representing an increase rate of 26% over fiscal 2010. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our student enrollments increased to 37,408 for the first semester of fiscal 2011 as compared to 32,238 for the first semester of fiscal 2010, representing an increase of 5,170 or 16%. Our order-oriented education mode, excellent job placement rate and great reputation have attracted greater number of students to study in our schools. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our tuition rates for the first semester of fiscal year 2011 increased 12% compared with the first semester of prior period. The increase in tuition rates also led to the increase in revenue. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase in faculty and staff members in schools. The commencement of operation of the new school and the increase in student enrollment led to an increase in faculty and staff members. Besides, the Company increased the pay rates for teachers to improve their income levels. Therefore, salary and welfare for the six months ended February 28, 2011 increased $601,929 or 21% as compared with the amount for the same period of prior year. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Increase in cost of school-running cooperation. The Company has put more efforts in expanding the scale of continuing education in fiscal year 2011. For the first semester of fiscal 2011 the total number of students enrolled in continuing education program was 3,756, representing an increase of 113% when compared with the number of students for the same period of last year. This led to an increase of $1,106,545 or 182.61% in cost of school-running cooperation as compared with the six months ended February 28, 2011. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Increase in depreciation expenses. With the expansion of business and acquisition of assets including construction of buildings and acquisition of teaching facilities, related depreciation expenses increased accordingly. Depreciation expenses for the six months ended February 28, 2011 increased $286,743 or 34% when compared with depreciation expenses for the same period of prior year. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Order-oriented services refer to off-campus internship arrangement and job placement service provided to our students. Revenues generated from order-oriented services for the six months ended February 28, 2011 was $3,425,702, representing an increase of $1,200,865 or 54% when compared to $2,224,837 for the six months ended February 28, 2010. The significant increase in our order-oriented education revenue is mainly attributable to the increase of fee rates we charged to our students and enterprises. The fixed management fees we charged to our student per month increased approximately 50%, and our commission fees charged to enterprise sponsors increased about 260% for the first semester of fiscal 2011 compared with the same period of prior year. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Campus services primarily consist of canteen services and grocery sales. Due to the increase in the student enrollment, revenues from our campus services increased by $964,172 to $6,706,903, an increase of 17%, for the six months ended February 28, 2011 as compared to revenues of $5,742,731 for the six months ended February 28, 2011. Our management believes that going forward, in addition to the student enrollment factor, revenues from campus services will also increase along with the increase in the service categories we provide to students. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Operation of new schools and increase in the student enrollment. Tianzhen HQ Vocational School commenced operations in September 2010 and we employed more management personnel for this new school. Meanwhile the increased student enrollment in other schools demanded additional management personnel. This led to an increase of $106,892 in salaries and welfare, representing an increase rate of 27%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (2) | The professional service fees mainly including legal fees, audit fees, secretary service fees and consulting fee for financing service incurred in the six months ended February 28, 2011 were $160,323 while there was only $6,346 consulting fee incurred in the same period of prior year, which led to an increase of $153,977 of general and administrative expenses. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (a) | Tuition revenue received from educational programs and services is recognized proportionately according to the progress the student completes regarding educational programs in the school. Tuition paid in advance is recorded as unearned revenues. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | We provide off-campus internship arrangements for students and collect service charges at fixed amount from both recruiters and students. Revenue is recognized upon completion of the internship program. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | We provide other services, mainly logistic services, for our students and the revenue from such services is recognized upon completion of the service. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Exhibit No.  |   | Description                                                                                                                                                                           |
|------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |   |                                                                                                                                                                                  |
| 31.1                   |   | Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * |
|                   |   |                                                                                                                                                                                  |
| 31.2                   |   | Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * |
|                   |   |                                                                                                                                                                                  |
| 32.1                   |   | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *                                                            |
|                   |   |                                                                                                                                                                                  |
| 32.2                   |   | Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *                                                            |

| * | Filed herewith. |
|---|-----------------|

----

| April 14, 2011 | HQ Global Education Inc. |
|----------------|--------------------------|
|           |                     |
|           | By:                      | /s/ Guanwen He |
|           |                     | Guanwen He |
|           |                     | Chief Executive Officer |
|           |                     | (Principal Executive Officer) |
|           |                     |   |
|           | By:                      | /s/ Yunjie Fang |
|           |                     | Yunjie Fang |
|           |                     | Chief Financial Officer |
|           |                     | (Principal Financial and Accounting Officer) |

----