Chinacast Education 8-K 2007 4th Quarter and Full Year Results Presentation

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ChinaCast Education
Corporation

2007 4th Quarter and Full Year
Results Presentation

March 31, 2008

www.chinacasteducation.com

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This presentation contains forward-looking statements.These statements are made
under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act
of 1995.These forward looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and
similar statements.

ChinaCast may also make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission, in its annual report to
shareholders, in press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.Statements that are not
historical facts, including statements about ChinaCast’s beliefs and expectations, are
forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties.Further
information regarding these risks and uncertainties is included in our registration
statement and other documents filed with the Securities and Exchange Commission.

ChinaCast does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.

Safe Harbor Statement

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Agenda

•2007 Business Highlights

•Our Goals & Strategy

•2007 Financial Highlights

•2008 Outlook

•Q&A Session

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2007 Business Highlights: Achieving our Goals

•8 Daily English Centers Opened since 7/07

•Listing of CAST on NASDAQ (29 Oct 07)

•Agreement to buy 80% of the Foreign Trade
& Business College of Chongqing Normal
University (12/07)

•Achieved aim of transforming ChinaCast into
a full-service for-profit education company

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Agenda

•2007 Business Highlights

•Our Goals & Strategy

•2007 Financial Highlights

•2008 Outlook

•Q&A Session

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Our Goal:Become a Leading Player in our Sector

Next Steps:

->Acquire career oriented schools & Universities

->Maintain focus on acquiring best-in-class, accredited
 institutions matching our profitability criteria

->Develop synergies between our E-Learning platform
 of services and traditional learning institutions

Future Profile:~75,000 students

~US$100 Mn Revenues

Time Frame: 2 to 3 years

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Agenda

•2007 Business Highlights

•Our Goals & Strategy

•2007 Financial Highlights

•2008 Outlook

•Q&A Session

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2007 Income Statement Highlights

	2006 (RMB m)	2007 (RMB m)	2007 (US$ m)	YoY Change
Revenue	174.1	187.7	$25.7	+8%
Service	125.6	148.9	$20.4	+19%
Equipment	48.5	38.8	$5.3	-20%
Gross Profit	84.7	102.2	$14	+21%
Gross Margin	49%	54%	-	+5 pts
Pre-Tax Income	43.3	84.7	$11.6	+95%
Pre-TaxMargin	25%	45%	-	+20pts
Net Income	19.7	58.7	$8.0	+198%
Net Income (Omitting one-offs) 2006 net income exclusive of an impairment loss of RMB13.3Mn; 2007 net income excluding gains from a disposal for RMB10.3 Mn.	33	48.4	$6.6	+47%
Net Margin	11%	31%	-	+20 pts
Income Per Share (Basic) *	1.17	2.21	$0.30	--
Income Per Share (Diluted) *	1.00	2.10	$0.29	--

* Weighted Average Shares Used in Computation:

1.Basic:2006 - 16,872,309; 2007 - 26,567,240

2.Diluted:2006 - 19,731,999; 2007 - 27,975,731

Revenue

RMB Mn

Exchange rate used for 2007 RMB 7.3 =US$1

=US$25.7 mn

+8%

Annual Revenues

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Revenue from Services up 19% in 2007

2006

Total Revenue
RMB174.1

2007

Total Revenue

RMB 187.7 Mn

(US$25.7Mn)

•Services Revenues up by 19% to RMB148.9 Mn (US$20.4 Mn) in 2007

•Equipment Revenues down by 20% to RMB38.8 Mn (US$5.3 Mn)

28%

RMB48.6Mn

72%

RMB125.6Mn

79%

RMB148.9Mn

21%

RMB38.8Mn

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Revenue By Segment - - 2007 compared to 2006

2006

2007

RMB174.1 Mn

RMB187.7 Mn

(US$25.7 Mn)

37%

36%

27%

32%

45%

23%

•Post Secondary and Vocational/career segments growing more rapidly
- and will continue to since our strategy is to focus on those higher
margin segments.

RMB Mn

% Margin

=US$14 Mn

Gross Profit and % Margin

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Net Income

RMB Mn

*2006 Net Income would have totaled RMB33 Mn were it not for a

one-offinvestment impairment charge of RMB13.3Mn.

**2007 Net income benefited by RMB10.3 million due to one-off gains on a disposal.

Exchange rate for 2007 RMB 7.3=US$1

+198% reported,

+47% (omitting one-offs)

RMB58.7 Mn (US$8Mn)

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Net Income up 198%; (omitting one-offs up 47%)

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2007 Q4 Income Statement Highlights
(Un-audited)

2006 and 2007 Fourth Quarter Figures are Un-Audited US GAAP	4Q 2006 (RMB m)	4Q 2007 (RMB m)	4Q 2007 (US$ m)	YoY Change
Revenue	55.2	59.6	$8.2	+8%
Service	34.1	42.9	$5.9	+26%
Equipment	21.1	16.7	$2.3	-21%
Gross Profit	23.2	29.7	$4.1	28%
Gross Margin	42%	50%	-	+8 pts
Pre-Tax Income	(3.2)	24.5	3.7	-
Pre-Tax Margin	--	41%	-	+45 pts
Net Income (Loss)	(7.2)	14.8	$2.	-
Net Income (Omitting one-offs) 2006-Q4 net income exclusive of an impairment loss of RMB13.3Mn; 2007-Q4 net income excluding gains from a disposal for RMB10.3 Mn.	6.1	4.5	0.6	-26%
Net Margin	18%	8%	-	-10 pts
Income Per Share (Basic) *	(0.42)	0.56	$0.08	-
Income Per Share (Diluted) *	(0.36)	0.51	$0.07	-

* Weighted Average Shares Used in Computation:

1.Basic:2006 - 16,872,309; 2007 - 26,567,240

2.Diluted:2006 - 27,975,731; 2007 - 27,975,731

RMB Mn

Exchange rate for 2007: RMB7.3=US$1

=US$8 Mn

+8% Y/Y

Quarterly Revenues: 8% increase year over year

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(Un-audited)

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Quarterly Revenue: Services & Equipment Segments
(Un-audited)

Q4-2006

Total Revenue
RMB55.2 Mn

Q4-2007

Total Revenue

RMB59.6 Mn

(US$8.2Mn)

•Services Revenues up by 26% to RMB42.9 Mn (US$5.9 Mn)

•Equipment Revenues down by 20% to RMB16.7 Mn (US$2.3 Mn)

72%

RMB42.9Mn

28%

RMB16.7Mn

38%

RMB21.1Mn

62%RMB34.1Mn

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Revenue By Segment - - Quarterly comparison
(Un-audited)

Q4 2006

Q4 2007

RMB59.6 Mn

(US$8.2 Mn)

RMB55.2 Mn

37%

RMB21.8 Mn

32%

RMB19.2 Mn

31%

RMB18.5 Mn

29%

RMB15.9 Mn

38%

RMB21 Mn

33%

RMB18.3 Mn

RMB Mn

Exchange rate for 2007: RMB7.3=US$1

*2006 Net Income would have totaled RMB6.1 Mn were it not for a
one-off investment impairment charge of RMB13.3Mn.

**Similarly, 2007 fourth quarter net income would be RMB4.5million omitting the effects of
a one-off gain on a disposal of RMB10.3 in 2007.

RMB14.8 (US$2.0 Mn)

Quarterly Net Income

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(Un-audited)

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Agenda

•2007 Business Highlights

•Our Goals & Strategy

•2007 Financial Highlights

•2008 Outlook

•Q&A Session

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2008 Outlook

•E-learning growing at similar rates in 2008

•FTBC contributes to results starting Q2-08;
Fall 08 enrollments likely to be up 15%;

-Addition of Foreign degree/non-degree programs

-Introduction of a Daily English Center on campus

•12 new Daily English centers in 2008

-Franchise Daily English in coming years to reach
2nd and 3rd tier cities

Revenue

RMB Mn

Exchange rate used for 2007 and 2008 forecast: RMB
7.3 =US$1

=US$32-35 mn

2008 Estimate+24% to 36%

(RMB234 Mn to RMB 256Mn)

2008 Revenue Outlook: RMB233 to RMB256 Mn

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Net Income

RMB Mn

*2006 Net Income would have totaled RMB33Mn were it not for a one-off investment impairment charge
of RMB13.3Mn and other costs incurred as a direct result of ChinaCast’s takeover of CCH.

**2007 Net income benefited from a one-time gain on disposal of RMB10.3Mn.

Exchange rate for 2007 RMB 7.3=US$1

=US$11Mn to $13Mn

(US$1=RMB7.3)

2008 Estimated Net Income: RMB 80 to RMB 95Mn

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48.4

58.7

10.3

2008 Net Income Outlook: RMB 80Mn to RMB 95 Mn

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Agenda

•2007 Business Highlights

•Our Goals & Strategy

•2007 Financial Highlights

•2008 Outlook

•Q&A Session