EQS-News / 30/07/2020 / 09:00 UTC+8
(Hong Kong, July 29, 2020) China New Higher Education Group Limited ("China
New Higher Education Group", together with its subsidiaries, collectively
the "Group"; stock code: 2001.HK) announces the further acquisition of 39%
stakes in Songming Xinju (the sole shareholder of the Guangxi School Sponsor
) for a consideration of RMB152 million. After the completion of further
acquisition, Daai Education and Mr. Li Jianchun will hold 90% and 10% shares
in Songming Xinju respectively.
With the initial acquisition of 51% equity interest completed in January
2019, the Group will benefit from the further acquisition of Guangxi Schools
in several regards:
(1) This acquisition is consistent with the Group's strategy to persistently
enhance its penetration in regional markets with high growth rate. Guangxi
Zhuang Autonomous Region currently has relatively lower gross student
enrollment rate compared with that of other provinces in the PRC. The Beibu
Gulf Economic Zone, in which the Guangxi Schools are located, is a strategic
development zone in Guangxi Zhuang Autonomous Region under the "One Belt and
One Road" ("????") initiative which possesses the regional advantage of
covering the countries within the Association of Southeast Asian Nations and
is the fastest growing region in Guangxi Zhuang Autonomous Region.
Meanwhile, only a few universities are located in this region where the
higher education services supply falls short of demand, bringing growth
potential for the Guangxi Schools. Also, the GDP growth rates of Guangxi
Province were above the national average levels in recent years, bringing
higher potential for future increase in tuition fee.
(2) There are only two universities in Qinzhou whereas the Guangxi Schools
are the only private university in this region. The Guangxi Schools provide
higher vocational education in 37 disciplines and cooperate with various
renowned and quality corporations across the nation in respect of internship
and employment for students.
(3) The Further Acquisition of Guangxi Schools will enable the Group to give
full play to its strength in collectivized school operation and to achieve
the Group's high-quality development goals. After the First Acquisition, the
operational capability and profitability of such schools have been
significantly improved. Upon the completion of the Further Acquisition of
Guangxi Schools, it will give full play to the strength in collectivized
school operation and the operational efficiency will be further improved.
(4) The valuation of the Further Acquisition of Guangxi Schools is
reasonable, in which the costs per student of the Further Acquisition of
Guangxi Schools is basically in line with that of the First Acquisition, and
the PE ratio of the Further Acquisition of Guangxi Schools is lower than
that of the First Acquisition.
Additionally, Guangxi Schools feature high quality internationalized
education. Since its incorporation, a lot of students are rewarded with
special grants and first prizes in many contests, covering English, Thai,
foreign trade, and art design of Nixing pottery; and its graduate employment
rate has been accounted for above 95%.
Chairman Mr. Li Xiaoxuan of China New Higher Education said, "The further
acquisition of Guangxi Schools demonstrates the Group's commitment to deepen
market penetration into the promising higher education markets. With the
further acquisition, we will fully leverage the advantage of our group's
collectivized school operation to enhance the operational management ability
of Guangxi Schools and step forward the Group's long-term business goal.
Inheriting our original aspiration, the Group will strive to offer the
excellent higher vocational education, maintain our strength of
collectivized school operation, and gain broader development potential."
- 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
File: China New Higher Education Group Further Acquires 39% Equity Interest
of Guangxi School Sponsor With Advantages of ASEAN Exposure Positive outlook
on Higher Education Market [1]
30/07/2020 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
July 29, 2020 21:00 ET (01:00 GMT)
