China New Higher Education Group Acquired Xinjiang Undergraduate Independent College Laid Out the Silk Road Economic Belt Core Area

(27 December 2017, Hong Kong) China New Higher Education Group Limited (“China New Higher Education Group", together with its subsidiaries, collectively the "Group", stock code: 2001.HK) is pleased to announce that Beijing Daai Consulting, wholly-owned subsidiary of Yun Ai Group concluded a contract to acquire a total of 56% equity interest in an independent college in Xinjiang, which offers undergraduate education, from a sponsor company of the college, at a consideration of RMB183,275,680 and agreed to grant the loan of RMB 40,724,320 to the school to settle its shareholder’s loan.
 
The college renders undergraduate programs. Currently, it is the only existing finance and economic independent institute in the Xinjiang Uygur Autonomous Region. It was permitted to grant bachelor’s degrees and recruit 4-Year undergraduate students. Currently, its current student enrollment only covers two academic years. The number of students registered in the academic year of 2017/2018 is 3,746, compared with 1,702 in the academic year of 2016/2017, representing an increase of 120%. In 2017, the number of student admission quota and actual number enrolled also increased by approximately 20%, compared with 2016. The school currently has 1,600 mu of land reserved for education purpose, which can accommodate 25,000 students, while since the current utilization rate is only 15%, great potential remained for further expansion to cater for significant student increase in the future. Additionally, there are also 400 mu of residential land, which not only accommodates dormitories for teaching staff, but also provide for subsequent value-added services and facilities for current students, thereby, plenty of space is preserved for further development of ancillary industries within the university.
 
Xinjiang, in terms of land area, is the largest administrative area at provincial-level in China. Being located in the hinterland of the Eurasian continent and neighbored with Russia and other eight peripheral countries, Xinjiang is historically an important corridor to the ancient Silk Road. As contained in the "One Belt, One Road" construction, Xinjiang was held as the core of Silk Road economic zone, and was considered as strategically important. In Xinjiang, the number of higher learning colleges and universities is relatively small , there remains considerable potential for future development in higher education, while it is also believed private undergraduate education shall also foresee plenty of rooms for future expansion.
 
Mr. Li Xiaoxuan, Chairman of the Board of Directors for the China New Higher Education Group, expressed: "The Group, by riding on the fundamentals of strong endogenous growth, endeavors with persistent efforts to strengthen its capacity for outward expansion through merger and acquisition, and hence rapidly expanding its school network and increasing market penetration. After the acquisition of Xinjiang institute, all the Group’s existing running schools have covered 6 provinces, which in turn consolidates the Group's broadest network layout within the domestic private tertiary education industry, and contributes to greater market share and higher market penetration. As the number of students increases, this factor also create greater future revenue from running schools for the Group. Looking forward, the Group will investigate means to provide a diversified range of value-added services and facilities to its current students. The Group, through constructing a campus ecosystem and developing subsidiary industries within the University community, will explore new channels for growth in profit-making, along with enhancing students' satisfaction.