Key dates:

Public sale deadline: May 18, 2018 at 12:00 p.m.

Public Notice Application Results: 2018/5/28

Listing date: May 29, 2018

Exclusive Sponsor:

CITIC Construction Investment (International) Financing Co., Ltd.

Statistical data summary:

Total number of shares offered globally: 360,000,000 shares

Percentage of shares offered in Hong Kong: 10.0%

Sale Price: HK$0.79 to HK$1.13

Estimated amount raised: HK$284 million to HK$407 million

Admission fee per hand: HK$3,424.16

Group Overview

The Group is a private education service provider in Hebei Province, China. As of May 6 this year, the group has opened 15 schools in Shijiazhuang City, Hebei Province, including 1 private university (Shijiazhuang Polytechnic Vocational College), 6 Xintianji training schools (composed of 11 Xintianji Guidance Centers), and 8 Xintianji nurseries. Shijiazhuang Polytechnic Vocational College offers a variety of higher education courses, including full-time college and secondary vocational school-level diploma programs and part-time continuing education courses. The New Sky Guidance Center provides individual or small group tutoring for elementary, middle and high school students.

In the 2017-2018 school year, Shijiazhuang Polytechnic Vocational College had 17,356 students. In terms of the total number of students enrolled, the Shijiazhuang Polytechnic Vocational College ranked second among private general colleges in Shijiazhuang, Hebei Province and beyond.

Industry Overview

According to Frost & Sullivan's report, the total revenue of China's private higher education industry increased from RMB 64.6 billion in 2011 to RMB 103.7 billion in 2017, with a compound annual growth rate of 8.2%. The report predicts that by 2021, the total revenue of China's private higher education industry will increase to 139 billion yuan. From 2017 to 2021, the compound annual growth rate will be 7.6%.

Risks

According to the 10-year contract agreement between the Group and 21st Century Education established in June 2010, the group provided various services on behalf of the relevant parties 21st Century Education to assist the operation of schools and student management in the West Campus of Sifang Academy.

If the partnership arrangement expires and is not renewed, the Group's operating results may be significantly adversely affected.

valuations

According to the prospectus, assuming that the global offering was completed on December 31, 2017, according to the anticipated issuance of 1.2 billion shares after completion of the stock offering, shareholders should account for the net worth range of merged tangible assets of RMB 365 million to RMB 459 million, equivalent to HK$0.37 to HK$0.47 per share (based on the exchange rate of HK$0.8092 to HK$0.8092).