You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. The Justice Department is working to compensate victims of a $214 million investment fraud in which schemers impersonated U.S.-based financial advisors to deceive investors. In what Assistant Attorney General A. Tyson Duva called “a coordinated act of both social and market manipulation,” seven individuals started a “pump-and-dump” scheme, promising significant returns for investors in Chinese Lib ...

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased China Liberal Education Holdings Limited ("CLEU†or the "Company†) (OTC: CLEUF) securities between January 22, 2025 and January 30, 2025, inclusive (the "Class Period†). CLEU investors have until March 31, 2026 to file a lead plaintiff motion. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN CHINA LIBERAL EDUCATION HOLDINGS LIMITED (CLEUF), CONTAC. ...

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of China Liberal Education Holdings Limited ("CLEU†or the "Company†) (OTC: CLEUF) on behalf of investors concerning the Company's possible violations of federal securities laws. IF YOU ARE AN INVESTOR WHO LOST MONEY ON CHINA LIBERAL EDUCATION HOLDINGS LIMITED (CLEUF), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS. What Is The Investigation About? On January 29, 2025, CLEU f. ...

Core Points - China Liberal Education Holdings Limited has announced that its securities will be suspended from trading on Nasdaq effective June 3, 2025, due to the failure to submit a request for an extended stay or address the delinquency in filing its annual report on Form 20-F for the fiscal year ended December 31, 2024 [1][3] - The company is awaiting a decision from the Nasdaq Hearings Panel regarding its appeal against an earlier determination to delist its securities, which was based on public interest concerns related to a substantial issuance of ordinary shares in December 2024 [2][3] - The company has not requested a stay of suspension or addressed the additional basis for delisting stemming from the untimely filing of its annual report [3] Company Overview - China Liberal is an educational services provider headquartered in Beijing, China, offering technological consulting services for smart campus solutions and other educational services [5] - The company provides a range of services aimed at improving campus information and data management systems for Chinese universities, enhancing the teaching, operating, and management environment [5]

Core Viewpoint - China Liberal Education Holdings Limited has received a notice from Nasdaq regarding its delinquency in filing the Annual Report on Form 20-F for the fiscal year ended December 31, 2024, which may lead to delisting from Nasdaq [1] Group 1: Company Status and Actions - The Company has scheduled a hearing before Nasdaq's Hearings Panel on June 10, 2025, and has until May 28, 2025, to request a stay of the suspension [2] - The Company is actively working to finalize and file its delayed Form 20-F, which has been substantially drafted prior to the original deadline [3] - The operations of the Company remain unaffected by the receipt of the Staff Determination Notices [3] Group 2: Compliance and Background - The announcement is made in compliance with Nasdaq Listing Rule 5810(b), which mandates prompt disclosure of deficiency notifications [4] - China Liberal provides technological consulting services for smart campus solutions and other educational services, aimed at enhancing the management and operational environment of universities [5]

Financial Position - As of June 30, 2024, cash at bank in Hong Kong amounted to $83.9 million, up from $20.0 million as of December 31, 2023[22] - The company maintains most of its bank accounts in the PRC and Hong Kong, with cash in PRC banks covered by deposit insurance regulations for amounts less than RMB0.5 million[22] - As of June 30, 2024, net accounts receivable increased to $1,462,571 from $1,453,230 as of December 31, 2023, reflecting a slight growth in tailored job readiness training services[18] - The allowance for doubtful accounts remained stable at $169,910 as of June 30, 2024, compared to $169,330 as of December 31, 2023, indicating consistent management of credit risk[75] - Net inventories decreased to $144,862 as of June 30, 2024, down from $167,493 as of December 31, 2023, primarily due to a reduction in the allowance for inventories[76] - The total taxes payable decreased to $1,185,754 as of June 30, 2024, from $1,438,658 as of December 31, 2023, showing improved tax management[89] - Goodwill on acquisitions was recorded at $6,747,543 as of June 30, 2024, after a non-cash impairment charge of $2,734,004 was recognized in 2023[83] - Short-term bank loans increased significantly to $437,154 as of June 30, 2024, compared to $32,191 as of December 31, 2023, indicating a shift in financing strategy[87] - The net intangible assets decreased to $312,836 as of June 30, 2024, from $351,680 as of December 31, 2023, due to amortization expenses[85] - The company has unsecured loans from third parties with a weighted average annual effective interest rate of 23.1% as of June 30, 2024, indicating high borrowing costs[90] - Related party transactions included a balance due to a related party of $0.7 million as of June 30, 2024, consistent with the previous period, reflecting stable financing from related parties[91] Revenue and Performance - As of June 30, 2024, China Liberal had total revenue of $885,804, a decrease of approximately 34.8% compared to $1,358,617 for the six months ended June 30, 2023[104] - Revenue from tailored job readiness training services was $861,647 for the six months ended June 30, 2024, down from $944,944 in the same period of 2023, representing a decline of about 8.8%[104] - Revenue from Technological Consulting Services for Smart Campus Solutions decreased significantly to $10,681 from $413,673, a decline of approximately 97.4%[104] - Five customers accounted for over 10% of total revenue, representing approximately 20.6%, 18.1%, 15.6%, 15.6%, and 11.6% of total revenue for the six months ended June 30, 2024, compared to no customers exceeding this threshold in the same period of 2023[94] - As of June 30, 2024, two customers accounted for 55.3% of the total outstanding accounts receivable balance, with 31.3% and 24.0% respectively[95] Revenue Recognition - The company recognizes revenue from sales of textbooks upon delivery, when risks and titles are transferred[47] - The Company recognizes revenue from technological consulting services based on the timing of control transfer and cash collection, which may involve significant financing components[49] - For "smart campus" solution contracts, the Company identifies multiple performance obligations and allocates revenue based on relative standalone selling prices[50][51] - Revenue from post-contract maintenance support is recognized over time, while revenue from solution and application customization is recognized upon completion[51] - As of June 30, 2024, the Company reported deferred revenue of $0.2 million, reflecting unsatisfied performance obligations[54] - The Company provides tailored job readiness training services to students, with fixed-price contracts that result in deferred revenue recognized over the training period[53] Expenses and Costs - The company reported a depreciation expense of $1,776 for the six months ended June 30, 2024, compared to $6,491 for the same period in 2023, reflecting a decrease in asset utilization[84] - The company recognized share-based compensation expense of $1,256,504 for the six months ended June 30, 2024, related to the grant of 465,372 ordinary shares to employees[98] - The Company applies ASC 718 for share-based compensation, recognizing costs based on the probable achievement of performance conditions[60][61] Regulatory and Compliance - The company’s financial statements are prepared in accordance with US GAAP, and operating results for the six months ended June 30, 2024, may not be indicative of full-year results[19] - No significant income was generated outside the PRC for the six months ended June 30, 2024, and all tax returns remain open for examination by PRC tax authorities[58] - The Company has not incurred significant penalties or interest related to income taxes during the six months ended June 30, 2024[57] - The FASB issued ASU 2023-09 to enhance income tax disclosures, effective for annual periods beginning after December 15, 2024, with no material impact on the Company's financial position[70][73] Share Issuance - China Liberal issued 25,000,000 ordinary shares at a price of $1.00 per share in June 2024, generating net proceeds of $24.9 million[97] - On September 19, 2024, China Liberal entered into agreements to issue 250,000,000 ordinary shares at a price of $0.28 per share, totaling an aggregate purchase price of $70.0 million[111] Assets and Liabilities - The company has developed and edited more than 16 English textbooks and course materials, which are sold to students enrolled in Fuzhou Melbourne Polytechnic and Strait College[46] - The company assesses goodwill for impairment annually as of December 31, with no impairments reported as of June 30, 2024[30] - The company evaluates inventories annually for net realizable value adjustments, reducing carrying value for obsolete items[27] - The company utilizes advanced information technology to provide total solutions to targeted Chinese universities and colleges, enhancing operational efficiency[48] - The company has not recorded any allowance for advances to suppliers, considering all advances to be fully realizable as of June 30, 2024[25] - The company’s statutory reserves and restricted net assets totaled $5.8 million as of June 30, 2024, down from $8.8 million as of December 31, 2023[101]

BEIJING, Oct. 11, 2024 /PRNewswire/ -- China Liberal Education Holdings Limited (Nasdaq: CLEU) ("China Liberal," the "Company," "we," "our," or "us"), a China-based company that provides technological consulting services for smart campus solutions and other educational services, today announced its unaudited financial results for the first six months of fiscal year 2024 ended June 30, 2024.Ms. Ngai Ngai Lam, Chairwoman and CEO of China Liberal, commented, "Amidst the challenging economic and market conditio ...

China Liberal Education (NASDAQ:CLEU) stock is falling hard on Monday as the company’s shares continue their recent downward movement.Shares of CLEU stock have been on a downward trend over the last week. The stock’s movement throughout 2024 has also been volatile. That includes many sharp declines and strong rallies.Investors will note that today’s drop comes without any clear news from China Liberal Education. There are no press releases or filings with the Securities and Exchange Commission (SEC) that ex ...

China Liberal Education (NASDAQ:CLEU) stock is retreating on Monday after the Chinese educational services company’s shares underwent an unexpected rally on Friday.That rally resulted in shares of CLEU stock soaring 58.4% higher during normal trading hours. It also brought with it heavy trading as some 18 million shares of the stock changed hands that day. For the record, the company’s daily average trading volume is well below that at roughly 560,000 shares.It’s worth noting that this surge in trading came ...

Corporate Structure and Operations - China Liberal Education Holdings Limited operates through its wholly owned PRC subsidiaries, China Liberal (Beijing) Education Technology Co., Ltd. and Beijing Oriental Wisdom Culture Development Co., Ltd.[26] - The company has consolidated the financial results of its former affiliated entities, Fuzhou Melbourne Polytechnic and Strait College of Minjiang University, for the period from September 2, 2022, to August 31, 2023[25] - The company has a corporate structure that limits direct equity ownership in its subsidiaries, which may affect investor interests[26] - The company directly holds 100% of the equity interests in its subsidiaries, with operations conducted in China through wholly owned PRC subsidiaries[205] Regulatory Environment - The PRC government has recently implemented regulatory actions affecting business operations, which could materially impact the company's operations and the value of its ordinary shares[31] - The company is subject to the Holding Foreign Companies Accountable Act, which could lead to delisting if its auditor is not inspected by the PCAOB for two consecutive years[32] - Future regulatory changes could impose additional restrictions on the company's ability to conduct business, offer securities, or repatriate funds[37] - The company is classified as an existing enterprise under the new Overseas Listings Rules and is not required to file with the CSRC at this time[36] - The company has not received any notices from authorities regarding its PRC subsidiaries being classified as critical information infrastructure operators[31] - The company has not received any formal inquiries or regulatory objections from the CSRC regarding its listing or subsequent offerings as of the date of the annual report[138] - Recent regulatory actions in China have increased scrutiny over overseas listings and foreign investments, potentially impacting the company's ability to raise capital[125] - The PRC Data Security Law imposes strict data security and privacy obligations, which could affect the company's operations and compliance costs[131] - The Cybersecurity Review Measures require network platform operators with over one million users to undergo cybersecurity review before listing abroad, which may impact the company's operations if applicable[134] - The interpretation and enforcement of newly promulgated laws and regulations in China are subject to substantial uncertainties, which may impact the company's business[140] Financial Performance and Projections - Revenue from Sino-foreign Jointly Managed Academic Programs represented 68.5%, 28.8%, and nil of the company's net revenues for the years ended December 31, 2021, 2022, and 2023, respectively[53] - The company experienced a net loss in fiscal years 2023, 2022, and 2021, and expects to continue investing in operations for the foreseeable future[46] - The company has not declared any dividends or made distributions to shareholders or U.S. investors as of the date of the annual report[38] - Cash transfers from PRC subsidiaries to entities outside of China are subject to PRC government controls on currency conversion, which may restrict the company's ability to pay dividends[42] - The company anticipates challenges in generating significant revenues from other lines of business following the cessation of revenue from FMP and Strait College[56] - Selling expenses were approximately $0.23 million, $0.28 million, and $0.15 million for the years 2021, 2022, and 2023, respectively, with expectations for future increases[72] - Increased labor costs in the PRC, including statutory employee benefits, are expected to adversely affect the company's financial condition and results of operations[107] - The company may incur increased costs to comply with existing and new laws, impacting overall financial performance[128] Shareholder and Investment Considerations - The company has granted a total of 4,250,000 Ordinary Shares as share incentives to employees and directors, which may increase share-based compensation expenses[105] - The company does not expect to pay any cash dividends in the foreseeable future, relying instead on price appreciation of its Ordinary Shares for returns on investment[195] - The trading price of the company's Ordinary Shares is likely to be volatile, influenced by various factors including revenue variations and announcements of new investments[188] - The company may be classified as a passive foreign investment company (PFIC), which could have adverse U.S. federal income tax consequences for U.S. taxpayers holding its Ordinary Shares[203] - The company has a unique corporate structure as an offshore holding company incorporated in the Cayman Islands, which poses specific risks to investors[205] Acquisitions and Business Developments - On July 14, 2022, the Company completed the acquisition of Oriental Wisdom, an integrated education services provider in China[208] - On September 2, 2022, the Company finalized the acquisition of Wanwang, which operates two colleges, FMP and Strait College[208] - On April 30, 2023, the Company terminated the Merger Agreement with AIWAYS, which was intended to merge AIWAYS into a wholly-owned subsidiary of the Company[210] - On September 29, 2023, the Company issued 18,000,000 ordinary shares at a price of $0.50 per share, raising a total of $9,000,000[211] - On December 28, 2023, the Company agreed to transfer all equity interests in Wanwang for a consideration of $40 million, with operational results consolidated until August 31, 2023[213] - The Company expects to close the transaction related to the transfer of Wanwang by June 30, 2024[213] Risks and Challenges - The company may face risks related to natural disasters and public health epidemics, which could disrupt operations and adversely affect financial performance[57][58] - The competitive landscape in China's education market is intense, with significant competition for student enrollments and faculty recruitment, which could impact market share and revenues[82] - The company faces challenges in recruiting and retaining qualified faculty members, which are crucial for the quality of its training services[75] - The company may not successfully identify or consummate strategic alliances or acquisitions, which could hinder growth and profitability[81] - Privacy concerns and increased regulation regarding data utilization could adversely affect the company's ability to collect and leverage user data[85] - The company may incur liability for unauthorized use of third-party materials by end users, which could lead to costly litigation and harm its brand reputation[91] - The company has faced operational risks due to significant reliance on the Chinese market, which may impact business continuity and share value[216] Compliance and Internal Controls - The company identified five material weaknesses in its internal control over financial reporting as of December 31, 2023, which could lead to material misstatements in financial statements[94] - The company plans to hire more qualified accounting personnel and implement continuous U.S. GAAP training to address identified weaknesses in internal controls[96] - The company is currently accredited as a "high and new technology enterprise" (HNTE) and enjoys a preferential tax rate of 15%, with the status subject to renewal in December 2025[101] - If the company fails to maintain its HNTE status, it will be subject to the standard PRC enterprise income tax rate of 25%[102] - The company is subject to significant legal, accounting, and other expenses as a public company, which may strain its financial resources[103] - The company may face challenges in completing business combinations efficiently due to complicated merger and acquisition regulations in China[110] - The company may face challenges in enforcing shareholder rights due to its incorporation under Cayman Islands law, limiting access to corporate records[115]