EQS-News / 11/05/2020 / 11:39 UTC+8
(Stock code: 2001.HK)
China New Higher Education Acquires All Interest in School Sponsor of Henan
School
Being Optimistic about the School's Growth Potential
Constantly Giving Full Play to the Strength in Collectivised Management
(Hong Kong, May 8, 2020) China New Higher Education Group Limited ("China
New Higher Education", together with its subsidiaries, the "Company"; stock
code: 2001.HK) is pleased to announce the further acquisition of 45% equity
interest in Henan Rongyu, the school sponsor of Henan School, with the
consideration of RMB384,800,000. So far, the Company has successfully
acquired 100% equity interest in Henan School.
After the completion of acquisition of 55% equity interest of Henan Rongyu
and Henan School on 8 October 2018, the further acquisition of the remaining
45% equity interest is in the interests of the Company and its shareholders:
(i) The further acquisition reflects the Company's strategy to improve its
penetration in regional markets with rapid growth.
Henan Province is one of the most populous provinces in China and the
largest source of students participating in the national higher education
entrance examination. The gross higher education enrolment rate of Henan
Province is slightly lower than that of the average level of China, bringing
higher potential for improvement. Also, the GDP growth rates of Henan
Province were above the national average level in recent years, bringing
better opportunity for future growth in tuition fee;
(ii) The further acquisition is helpful to give full play to the Company's
strength in collectivised school operation and to achieve the Company's
high-quality development goals.
Upon the acquisition of 55% equity interest in the school sponsor of Henan
School, the Company improved its operational efficiency through its strength
in collectivised school operations. The student enrolment of Henan School
for the academic year of 2019/2020 increased by approximately 9,000 to over
27,000 as compared to the academic year of 2017/2018 prior to the first
acquisition. The profitability of Henan School has also been significantly
improved: the net profit of Henan School in 2019 increased significantly by
361% as compared to that in 2017. Upon the completion of the further
acquisition, it will fully avail itself of the strength in collectivised
school operations and the operational capability and profitability will be
further improved;
(iii) The valuation for the further acquisition is reasonable. The costs per
student of the acquisition is also lower than that of the first acquisition.
Additionally, being the only private institution of formal higher education
in Luoyang City, Henan Province, Henan School has distinguished competitive
advantages locally. Currently, Henan School has 36 higher-level vocational
majors, focusing on e-commerce, software technology, internet of things
application technology, etc. It successively won honours including the
"National Applied Talents Cultivation Project", "Advanced Unit of Henan
Province", and "The First Batch of Pilot Colleges to Hold the National
e-Commerce Skills Examination". Its social reputation has been widely
recognised. Henan School has ensured effective school-enterprise cooperation
with many renowned enterprises. With the support of excellent teaching
ability and high-quality employability, it can strongly attract students to
enrol and drive the growth of student numbers and tuition fees. Therefore,
there will be greater opportunity for the growth of student numbers and
tuition fees in the coming years. After the further acquisition, the Company
can more fully introduce advanced management models and constantly improve
its operational capability and profitability.
Chairman Li Xiaoxuan of China New Higher Education said, "The Company's
acquisition of all interest in Henan School demonstrates its determination
to constantly improve its penetration in key regions with huge growth
potential in higher education. The Company is very optimistic about the
future development of Henan School. It has full confidence in bringing in
collectivised management, improving operational capability, and achieving
better performance after Henan School becomes a wholly owned school. Looking
into the future, the Company will remain true to its original aspiration for
school operations, provide high-quality and higher-level vocational
education services, constantly give full play to its strength in
collectivised school operation, and seek for more development opportunities,
in order to bring ideal returns to investors who have long been supporting
the Company."
-End-
About China New Higher Education Group Limited:
China New Higher Education Group Limited is a leading private formal higher
education group in China with 20 years of education industry experience,
specializing in providing higher education which focuses on applied
sciences. The Group endeavors to help each student maximize their potential
and live their life to the fullest. Since 2009, the Group has been operating
schools in different provinces and regions, and its current school network
covers 7 provinces in China, including Yunnan, Guizhou, Hubei, Heilongjiang,
Henan, Guangxi, and Gansu.
The Group provides high quality higher education in a wide selection of
fields in applied sciences. Its courses are designed to equip students with
practical and readily applicable skills, helping to prepare them for the job
market. As a leader in high-quality employment, the Group won the title of
the Top 50 National Employment of the MOE, with an average employment rate
of above 97%. The Group became a constituent stock of the Hang Seng
Composite Small Cap Index and the Hang Seng Consumer Goods & Services Index
in the Hang Seng Composite Index Series in August 2017, and was included as
a constituent stock of the MSCI China Small Cap Index in November 2017 and
included as a constituent stock of Shenzhen and Hong Kong Stock Connect in
March 2018.
This press release is distributed by Wonderful Sky Financial Group Limited
on behalf of China New Higher Education Group Limited.
For further information, please contact:
Wonderful Sky Financial Group Limited
Aileen Wang / Georgina Zhao
Tel: (852) 3970 2226/ (852) 3970 2236
Email: newhigheredu@wsfg.hk
Document: https://eqs-cockpit.com/c/fncls.ssp?u=FCXGGWCGPE [1]
Document title: China New Higher Education Acquires All Interest in School
Sponsor of Henan School Being Optimistic about the School's Growth Potential
Constantly Giving Full Play to the Strength in Collectivised Management
11/05/2020 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
May 10, 2020 23:39 ET (03:39 GMT)
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