Wall Street Transcript Interview with ATA Inc. (ATAI) Chief Financial Officer and Chief Accounting Officer Benson Tsang

Wall Street Transcript

67 WALL STREET, New York - August 30, 2012 - The Wall Street Transcript has just published its Education Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Enrollment and Retention Trends - Regulatory Risks - Chinese Education Growth Catalysts - For-Profit Institutions - Online Content Distribution

Companies include: ATA, Inc. (ATAI) and many others.

In the following excerpt from the Education Report, the Chief Financial Officer of ATA discusses the outlook for his company for investors.

TWST: Would you talk a little more about the market and the competitive landscape? Who are ATA's clients? Are there many other companies competing to win those clients?

Mr. Tsang Let me take a couple of steps backward. ATA is in the education sector in China. Based on our understanding, if we talk about the education sector in the West, meaning in North America or in Europe, people start to think about maybe some professional training, maybe something like the University of Phoenix. People want to get a certificate, bachelor's or maybe a master's degree, through an online education platform. This is mostly what people think of in the West.

But in China, we have a slightly different model. It could be because of the culture in Asia. Parents are very concerned about the individual development of the kids, in particular in China, because the one-child policy had been in place for a couple of decades. Most families only have one child, so what they want to do is provide the best possible education support to their kids.

As a result of that, in China, when we talk about the education sector in general, in my opinion there are two types of companies. The first type of company is a company similar to the West, a company like University of Phoenix. They provide an online education platform, so people can go online, take the courses, and then maybe some other arrangement to attend courses in person at some other universities; and then, after three, four years, they will get the bachelor's degree or master's degree.

Another type, which is under the same category of education, is providing professional training, tutorial services for academic purposes. When I say professional training, like chartered accountant, like CPA in the States, there are companies in China that will provide very specific training or preparation courses for this type of professional if they want to get the certification.

Then, there are special tutorial services companies that target mainly students. They go all the way down to kindergarten and grade one to grade 12. What they do is they provide some after-school programs. They want to give the kids more support to ensure that they have enough exercise so they can fully understand what they learn in their classes. So this, in general, is what I call the first batch of education companies in China. They are focusing on preparation courses to provide some specific courses to train up your skills or for academic purposes.

Then, the second type of company, there is only one company in China right now, which is ATA. As I mentioned earlier, we are kind of unique. We are providing testing services. I'll give you one example. I mentioned earlier, people may go for some preparation courses for the Certified Public Accountant exam, and in China, we have that association as well. The Chinese CPA association will also have a public exam for people to take, and then, if they pass it, they can get the qualification and they can get the certification. ATA is the service provider. We help the CPA association coordinate and deliver the examination through computers. So this is one example where ATA is one of a kind.

For more from this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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