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China New Higher Education Group Acquired the Only Private Higher Education Institution in Luoyang, He’nan Province

China New Higher Education Group Acquired the Only Private Higher Education Institution in Luoyang, He’nan Province

(8 January 2018, Hong Kong) China New Higher Education Group (the “New Higher Education Group”, together with its subsidiary, the “Group”, Stock Code: 2001.HK) is pleased to announce that on 8 January 2018, Beijing Daai Consulting, a wholly-owned subsidiary of Yun Ai Group, entered into the investment of a total of 55% equity interest in the sponsor company of a private institution of higher education in He’nan Province at a consideration of RMB101,500,000. The Group agreed to inject RMB294,000,000 to the He’nan School for further development of the construction of Phase II campus and the return of arrears. Upon the completion of Phase II campus with put into use, it will support school to enlarge the enrollment scale.
 
The He’nan School is the only private institution of higher education providing specialist education in Luoyang City, which has received enormous support from the local government in terms of school operation and other aspects since its establishment. At present, the college has nine secondary-level institutes and 21 higher vocational majors, with distinctive majors being electronic commerce, software technology, Internet of things application technology, etc.
 
He’nan Province has all along been the top in terms of the number of students participating in the national college entrance examinations, with the gross enrollment rate in higher education approximately 38.8%, lower than national average level (42.7%) by 3.9 percentage points. The number of students of this school for the academic year of 2017/2018 was 18,243, representing an increase of 37% compared to 13,289 for the academic year of 2016/2017. It is expected that the number of students enrolled will continue to increase with Phase II campus putting into use. In the future, as the quality of school operations continues to improve, there will be an increase in the number of general junior college students recruited, which in turn will increase the income from tuition fees.
 
Mr. Li Xiaoxuan, the Chairman of the board of directors of China New Higher Education Group, stated that: “Through the acquisition of the He’nan School, the geographic coverage of schools of the Group has expanded to seven provinces and regions, especially in Hubei, He’nan and other central regions to accelerate the pace of expansion, consolidating the Group’s market position of the most widely distributed network layout in the domestic private higher education industry, and contributing to greater market share and higher market penetration. The increase in the number of students and tuition fees can also improve the future operating income of the Group. In the future, the Group will continue to focus on strengthening the capacity of extension and expansion by acquisitions, expanding school network and increasing market penetration, and leveraging advantages of integration of school operations to strive for greater room for development.